COMPREHENSIVE ANNUAL FINANCIAL REPORTgfoa.net/cafr/COA2012/KitsapCountyWA.pdf · 2014-05-14 ·...

Kitsap County, Washington

COMPREHENSIVE ANNUAL

FINANCIAL REPORT

For The Fiscal Year Ended December 31, 2012

THIS PAGE LEFT BLANK INTENTIONALLY

For The Fiscal Year Ended December 31, 2012

Prepared by the Auditor’s Office

KITSAP COUNTYCOMPREHENSIVE

ANNUALFINANCIAL

REPORT

County AuditorHonorable Walter E. Washington

Financial Services ManagerDavid Schureman, CPA

PageINTRODUCTORY SECTION

Transmittal Letter ………………………………………………………………………………………………… llGFOA Certificate of Achievement for Excellence in Financial Reporting ………………….... lllList of Elected and Appointed Officials ………………………………………………………..... IVOrganization Chart ……………………………………………………………….. ……………… V

FINANCIAL SECTIONIndependent Auditor’s Report…………………………………………………………………………… 1Management’s Discussion and Analysis……………………………………………. ……………… 4Basic Financial Statements

Government-wide Financial Statements: Statements of Net Position………………..………………………………….……………… 17 Statement of Activities……………………………………………………………………………… 18

Fund Financial Statements: Balance Sheet - Government Funds……………………………………………………...…….. 19

Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position……………………………………………………………………………………… 21

Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds ……………………………………………………… 22Reconciliation of Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities…………………… 24Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - General Fund………………………………………… 25Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - Major Funds………………………………………… 26Statement of Net Assets – Proprietary Funds ……………………………………… ……………… 29Statement of Revenues, Expenses, and Changes in Fund Net Assets-Proprietary Funds ……………………………………………………………………… 30Statement of Cash Flows – Proprietary Funds…………………………………………………… 31Statement of Fiduciary Net Assets ……………………………………… ……………… 32

Notes to the Financial Statements…………………………………………………………………… 33Required Supplementary Information

Schedule of Funding Progress - LEOFF1 93Combining and Individual Fund Statements and Schedules

Description…………………………………………………………………………………………………… 94Combining Balance Sheet - Nonmajor Funds …………………………………….. ……………… 100Combining Statement of Revenues, Expenditures and

Changes in Fund Balances - Nonmajor Funds…………………………………………………… 118Schedule of Revenues, Expenditures, and Changes in Fund Balances -

Budget And Actual - Nonmajor Funds …………………………………………………….. 134Component Unit Balance Sheet ………………………………………………………………….. 211Component Unit Statement of Revenues, Expenditures and Chnages in Fund Balances 212Description - Internal Service Funds ………………………………………………………………….. 213

KITSAP COUNTY, WASHINGTONComprehensive Annual Financial Report

For the Fiscal Year Ended December 31, 2012

TABLE OF CONTENTS

l - 1

Combining Statement of Net Assets - Internal Service Funds…………………………………… 214Combining Statement of Revenues, Expenses and

Changes in Fund Net Assets - Internal Service Funds………………………… ……………… 216Combining Statement of Cash Flows – Internal Service Funds………………………………… 218Description - Agency Funds…………………………………………………………………… 220Combining Statement of Fiduciary Net Assets………………………………………………. 221Combining Statement of Changes in Assets and Liabilities for Agency Funds 224

STATISTICAL SECTION Table #Net Assets by components 1 S - 1Changes In Net Assets 2 S - 2Fund Balances of Governmental Funds 3 S - 4Changes in Fund Balances of Governmental Funds 4 S - 5Assessed Value and Estimated Actual Value of Property 5 S - 7Property Tax Rate - All Overlapping Governments 6 S - 8Principal Property Taxpayers 7 S - 9Property Tax Levies and Collections 8 S -10Ratios of Outstanding Debt by Type 9 S - 11Ratios of General Bonded Debt 10 S - 12Computation of Overlapping Debt to Assessed Value and Net 11 S - 13 Legal Debt Margin Information 12 S - 14Pledged Revenue Coverage - Sewer Bonds 13 S - 15Demographic and Economic Indicators 14 S - 16Principle Employers 15 S - 17Full-time Equivalent County Employees by Function 16 S - 18Operating Indicators by Function/Program 17 S - 19Capital Asset Statistics by Function 18 S - 20

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II - III

Although Kitsap County appears to be rural due to the vistas of water, mountains and trees, it actually has the third highest population density in the state of Washington, only surpassed by Clark and King Counties. Of the four incorporated cities in Kitsap County, the largest city is Bremerton with a 2012 population of 39,051 (+3.50% from the 2010 estimate). The 2012 population for Port Orchard is 11,333(+1% from 2010); Poulsbo 9,336 (+1% from 2010) and Bainbridge Island 23,262(+1% from 2010). Population is expected to remain fairly constant through the current economic climate although annexations by Port Orchard and Poulsbo will also affect population counts going forward. Employment. Total employment increased to 124,310 in 2012 (2,920 from 2011) while unemployment was at 7.8%. The service-providing sector gained 1,900 jobs in 2012. Kitsap County’s strongest economic asset continues to be its availability of a well-trained, highly motivated workforce. The unemployment rate decreased by 1% from 2011. The strong work ethic of a labor pool associated with military employment continues to attract attention from national employers. With the addition of well-qualified students from Olympic College and private training institutes, the County remains a desirable location for prospective employers. Construction. New construction activity is an important economic indicator that greatly affects County operations and workload in areas such as planning, permits, land services, public records, public works and public construction. In 2012, new construction property values dropped to $174 million (-0.7% from 2011), and the assessed value of all properties totaled $26.12 billion (-3.72% from 2011). The number and value of permits issued is an indicator of future growth in the county property tax base. In 2012, the County issued 1,928 building permits. This represented a 9% increase from 2011. Kitsap County’s lower valued real estate has attracted buyers from more affluent markets in previous years. Once the current economic downturn is over, it is projected the County will again experience moderate growth due to the lower median cost of homes compared to the Seattle and Tacoma housing markets. Sales Tax Revenue. Sales tax revenue increased by less than one tenth of a percent in 2012 to a total of $27,008,483 (+$13,108 from 2011). The overall condition of the economy was stable if not stagnant which led to the very slight increase in retail sales and sales tax for 2012. Based on current economic forecasts, total sales tax revenues are expected to continue increasing gradually in 2013. Growth in Expenses. Even as the economy shows signs of rebounding, the County continues to be faced with the problem; growth in revenues are not, nor

IV

KITSAP COUNTY List of Elected and Appointed Officials

December 31, 2012

Elected Officials

TITLE INCUMBENT END OF TERM Assessor Jim Avery 12/31/14 Auditor Walter Washington 12/31/14 Clerk Dave Peterson 12/31/14 Commissioner, District #1 Robert Gelder 12/31/15 Commissioner, District #2 Charlotte Garrido 12/31/15 Commissioner, District #3 Josh Brown 12/31/14 Coroner Greg Sandstrom 12/31/14 District Court Judge, #1 James Riehl 12/31/14 District Court Judge, #2 Jeffrey J. Jahns 12/31/14 District Court Judge, #3 Marilyn Paja 12/31/14 District Court Judge, #4 Stephen J. Holman 12/31/14 Prosecuting Attorney Russ Hauge 12/31/14 Sheriff Steve Boyer 12/31/14 Superior Court Judge, #1 Jeanette Dalton 12/31/12 Superior Court Judge, #2 Leila Mills 12/31/12 Superior Court Judge, #3 Anna Laurie 12/31/12 Superior Court Judge, #4 Steve Dixon 12/31/16 Superior Court Judge, #5 Jay B. Roof 12/31/12 Superior Court Judge, #6 Kevin Hull 12/31/16 Superior Court Judge, #7 M. Karlynn Haberly 12/31/12 Superior Court Judge, #8 Sally F. Olsen 12/31/12 Treasurer Meredith Green 12/31/14

Appointed Officials TITLE INCUMBENT County Administrator Vacant Director of Public Works Randy Casteel Director of Administrative Services Amber D’Amato Director of Personnel & Human Resources Bert Furuta Director of Community Development Larry Keeton Director of Parks and Recreation Jim Dunwiddie Director of Information Services & Facilities Bud Harris

Kitsap County Organization 2012

Legal Jury Juvenile Probation Law ElectionsServices Enforcement

Child Public Corrections RegistrationSupport Defense

Boundary FiscalReview

Special Emergency LicensingAssault Management

Civil Recording

Building Engineering Parks Budget & Personnel Computer & Finance Network Services

Community Roads Ballfields Volunteer Civil Application ServicesPlanning Services Service

Land Use/ Waste Recreation Risk Recovery GIS Environmental Water Programs Management Center

Fire Solid Fair and Purchasing Job DatabaseMarshall Waste Events Training Administration

Grant Equipment Block Grant MentalManagement Rental Program Health

Natural Surface & Project AgingResources Stormwater Management Programs

Development Facilities DevelopmentalEngineering Maintenance Disabilities

SubstanceAbuse

Training Services

Sheriff AuditorTreasurer

Citizens

Board of County

CommissionersCoroner Assessor

County Administrator

Cooperative Extension

Central Com-munications

Prosecutor Clerk Superior Courts

Board of Equalization

District Courts

Community Development

Parks and Recreation

Information Services

Administrative Services

Personnel & Human

ServicesPublic Works

V

_________________________________FINANCIAL SECTION

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INDEPENDENT AUDITOR’S REPORT June 24, 2013 Board of Commissioners Kitsap County Port Orchard, Washington REPORT ON FINANCIAL STATEMENTS We have audited the accompanying financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund and the aggregate remaining fund information of Kitsap County, Washington, as of and for the year ended December 31, 2012, and the related notes to the financial statements, which collectively comprise the County’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 in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the County’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the County’s internal control. Accordingly, we express no such opinion. An audit also includes

Washington State Auditor Troy Kelley

Insurance Building, P.O. Box 40021 Olympia, Washington 98504-0021 (360) 902-0370 TDD Relay (800) 833-6388

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evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund and the aggregate remaining fund information of Kitsap County, Washington, as of December 31, 2012, and the respective changes in financial position and, where applicable, cash flows thereof, and the respective budgetary comparison for the General , County Roads, Real Estate Excise Tax and Mental Health Medicaid funds for the year then ended in accordance with accounting principles generally accepted in the United States of America. Matters of Emphasis

As described in Note 1, during the year ended December 31, 2012, the County has implemented the Governmental Accounting Standards Board Statement No. 60, Accounting and Financial Reporting for Service Concession Arrangements and Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources and Net Position. Our opinion is not modified with respect to this matter. Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis on pages 4 through 16 and information on postemployment benefits other than pensions on page 93 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary and Other Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the County’s basic financial statements as a whole. The accompanying information listed as combining financial statements and supplementary information on pages 94 through 224 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. This information has been subjected to auditing procedures applied in

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the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. The information identified in the table of contents as the Introductory Section and Statistical Section is presented for purposes of additional analysis and is not a required part of the basic financial statements of the County. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on it. OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING STANDARDS In accordance with Government Auditing Standards, we will also issue our report dated June 24, 2013, on our consideration of the County’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. That report will be issued under separate cover in the County’s Single Audit Report. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the County’s internal control over financial reporting and compliance. Sincerely,

TROY KELLEY STATE AUDITOR


Management’s Discussion and Analysis For the Year Ended December 31, 2012

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As management of Kitsap County, we offer readers of Kitsap County’s financial statements this narrative 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 we have furnished in our letter of transmittal, which can be found section II of this report. All amounts, unless otherwise indicated, are expressed in millions of dollars.

Financial Highlights

The assets of Kitsap County exceeded its liabilities and deferred inflows at the close of the most recent fiscal year by $512.35 (net position). Of this amount, $116.11 (unrestricted net position) may be used to meet the government’s ongoing obligations to citizens and creditors.

The government’s total net position decreased by $ 3.79 with a $4.96 decrease on the Governmental side and a $1.17 increase on the Business-Type side. The Governmental side saw an increase of $1.20 apart from two Special Items and one Extraordinary item. These Special items included a $1.98 loss on transfer of assets to the Village Greens Metro Parks District as well as an addition $2.58 loss associated with debt assumed by the county in 2009. In addition, an Extraordinary loss of $1.08 was reported due to transfer of assets to the City of Port Orchard as a result of annexations. Further details of these items can be found in the notes to the financial statements, see Note 20.

As of the close of the current fiscal year, Kitsap County’s governmental funds reported combined ending fund balances of $86.78, an increase of $6.37 from the prior year. Approximately $18.02 of this amount is available for spending at the government’s discretion (unassigned fund balance).

At the end of the current fiscal year, unassigned fund balance for the general fund was $18.02, or 24.08 percent of the total general fund expenditures. $3.23 of this balance was from funds formerly reported as special revenue funds that no longer qualified under GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions.

Kitsap County’s total general obligation debt decreased by $7.32 (8 percent) during the current fiscal year. This represented 2012 principle payments.

Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to Kitsap County’s basic financial statements. Kitsap County’s basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves.



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Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of Kitsap County’s finances, in a manner similar to a private-sector business. The statement of net position presents information on all of Kitsap County’s assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of Kitsap County is improving or deteriorating. The statement of activities presents information showing how the government’s net assets changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of the related cash flows. Thus, revenues and expenses are reported in this statement for some items that will result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government-wide financial statements distinguish functions of Kitsap County that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of Kitsap County include general government, public safety, highways and streets, economic development, and culture and recreation. The business-type activities of Kitsap County include solid waste, sewer and surface water operations. The government-wide financial statements can be found on pages 17 -18 of this report. Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. Kitsap County, like other local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of Kitsap County can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financial decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and



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changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. Kitsap County maintains ninety-three six individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund, county roads fund, real estate excise tax fund and mental health Medicaid fund, all of which are considered major funds. Kitsap County implemented GASB Statement No. 63 in 2012. As a result, the statements formerly titled the State of Net assets are now referred to as Statements of Net Position. In addition to reporting on assets and liabilities, there are two additional sections titled Deferred Outflows and Deferred Inflows. The section formerly title Net Assets is now Net Position. Data from the other eighty-nine governmental funds is combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report. Kitsap County adopts an annual appropriated budget for all its funds, with the exception of those listed in the notes to the financial statements, see Note D1. A budgetary comparison statement has been provided for each of the major funds to demonstrate compliance with this budget. The basic governmental fund financial statements can be found on pages 19 – 28 of this report. Proprietary funds. Kitsap County maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. Kitsap County uses enterprise funds to account for its Sanitary Sewer operations, Solid Waste activities and Surface Water Utility activities. Internal service funds are an accounting device used to accumulate and allocate costs internally among the County’s various functions. Kitsap County uses internal service funds to account for its management information systems, self-insurance activities, elections activities, and fleet of equipment. Because all these services predominantly benefit governmental rather than business-type functions, they have been included within the governmental activities in the government-wide financial statements. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Solid Waste, and Sewer funds and Surface Water Utility, which are considered major funds of Kitsap County. Conversely, all the internal service funds are combined into single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report. The basic proprietary fund financial statements can be found on pages 29 – 31 of this report.



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Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of these funds are not available to support Kitsap County’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The basic fiduciary fund financial statements can be found on page 32 of this report. Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 33 – 92 of this report. The combining statements referred to earlier in connection with nonmajor governmental funds and internal service funds are presented immediately following the required supplementary information on pensions. Combining and individual fund statements and schedules can be found on pages 94 – 219 of this report. Government-wide Financial Analysis As noted earlier, net assets may serve over time as a useful indicator of a government’s financial position. In the case of Kitsap County, assets exceeded liabilities by $512.35 at the close of the most recent fiscal year. The County’s fiscal condition remains stable. The largest portion of Kitsap County’s net position (73.9 percent) reflects its investment in capital assets (e.g., land, buildings, machinery, and equipment), less any related debt used to acquire those assets to provide services to citizens; consequently, these assets are not available for future spending. Although Kitsap County’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.



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Assets: 2011 2012 2011 2012 2011 2012 Current & other assets 142.26$ 139.26$ 95.31$ 91.68$ 237.57$ 230.94$ Capital assets 409.18 399.68 87.75 91.63 496.93 491.31Total assets 551.44 538.94 183.06 183.31 734.50 722.25Deferred outlowsLiabilities Other liabilities 35.11 50.18 6.97 5.97 42.08 56.15 Long-term liabilities 117.89 93.15 58.65 58.46 176.54 151.62Total liabilities $153.00 143.33 65.62 64.43 218.62 207.78Deferred inflows 2.14 2.15Net position Invested in capital 330.25 325.89 53.85 53.33 384.10 379.22 Restricted 15.98 13.68 3.34 3.34 19.32 17.02 Unrestricted 52.20 53.90 60.24 62.21 112.44 116.11Total net position 398.43$ 393.47$ 117.43$ 118.88$ 515.86$ 512.35$

Kitsap County's Net Position

TotalPrimary Government

Business-typeActivities

GovernmentalActivities

An additional portion of Kitsap County’s net position (3.3 percent) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position ($116.11) may be used to meet the government’s ongoing obligations to citizens and creditors. At the end of the current fiscal year, Kitsap County is able to report positive balances in all three categories of net assets, both for the government as a whole, as well as for its separate governmental and business-type activities. The same situation held true last fiscal year. The government’s net position decreased by $3.79 during the current fiscal year. However, when excluding the special and extraordinary items detailed on page 3 and in Note 20 of the notes to the financial statements, the County actually had increases of $2.37. The major reason was profitability of the utility operations. Refer to the Notes to the Financial Statements (Note 6) for a more in depth discussion of capital assets. The government’s restricted net position decreased by 11.95% (from $19.33 to $17.02). This was caused by an overall reduction in outstanding debt. Unrestricted net position increased by 3.3% (from $112.44 to $116.11). Governmental activities. Governmental activities decreased the County’s net position by $4.96. The key elements of this net change are as follows:



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2011 2012 2011 2012 2011 2012Revenues:

Program revenuesCharges for services 22.96$ 23.66$ 35.50$ 35.59$ 58.46$ 59.25$ Operating grants 67.95 66.45 1.03 0.99 68.98 67.44 Capital grants 3.27 2.56 0.78 1.92 4.05 4.48

General revenuesProperty taxes 55.25 56.25 - 55.25 56.25 Sales taxes 26.99 27.01 - 26.99 27.01 Other taxes 9.99 11.06 - 9.99 11.06 Investment earnings 1.70 1.68 0.86 0.65 2.56 2.33 Other income 3.77 3.43 - - 3.77 3.43

Total revenues 191.88 192.10 38.17 39.15 230.05 231.25

ExpensesGeneral government 25.55 24.93 - - 25.55 24.93 Judicial services 13.87 13.33 - - 13.87 13.33 Public safety 49.38 49.14 - - 49.38 49.14 Physical environment 3.04 3.29 - - 3.04 3.29 Transportation 37.02 38.06 - - 37.02 38.06 Health & human services 43.62 43.97 - - 43.62 43.97 Economic environment 6.52 6.75 - - 6.52 6.75 Culture & recreation 6.77 6.91 - - 6.77 6.91 Interest on LT debt 5.60 5.40 - - 5.60 5.40 Utilities - - 37.19 37.63 37.19 37.63

Total expenses 191.37 191.78 37.19 37.63 228.56 229.41 Incr (decr) in net position before 0.51 0.32 0.98 1.52 1.49 1.84 Special Items, Transfers & Extraordinary items

Special items (1.19) (4.56) (1.19) (4.56) Transfers 0.34 0.35 (0.34) (0.35) - - Extraordinary item - (1.08) (1.08)

Incr (decr) in net position (0.34) (4.97) 0.64 1.17 0.30 (3.80) Beginning Net position 398.78 398.44 116.78 117.42 515.56 515.86 Prior period adjustments (0.01) 0.29 0.29 Ending Net position 398.44$ 393.47$ 117.42$ 118.88$ 515.87$ 512.35$

Primary GovernmentGovernmental Business-type Total

Activities Activities

o Transferred assets with net value of $1.98 to the Village Greens Metro Parks District, thus recorded as a loss.

o Recognized and additional loss of $2.58 on debt of Housing Kitsap, assumed by the county in 2009.

o Recognized a loss of $1.08 for assets being transferred to the City of Port Orchard as the result of annexation.



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Expenses and Program Revenues - Governmental

Activities

-

10.00

20.00

30.00

40.00

50.00

60.00

Expenses Revenues



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Revenues by Source – Governmental Activities

Charges for services

12%

Operating grants35%

Capital grants1%

Property taxes29%

Sales taxes14%

Other taxes6%

Others3%

Business-type activities. Business-type activities increased the County’s net assets by $1.17. The primary element of this increase was: Profitability of the Sanitary Sewer operation



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Expenses and Program Revenues – Business-type Activities

0

2

4

6

8

10

12

14

16

18

Sewer Solid Waste Surface Water

Operating Revenues

Operating Expenses

Charges forServicesOperating grants

CapitalContributionsMisc. income

Transfers

Financial Analysis of the Government’s Funds As noted earlier, Kitsap County uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.



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Governmental funds. The focus of Kitsap 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 financial requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, Kitsap County’s governmental funds reported combining ending fund balances of $86.78, an increase of $6.37 in comparison with the prior year. The general fund is the chief operating fund of Kitsap County. At the end of the current fiscal year, unassigned fund balance of the general fund was $18.02, while the total fund balance increased to $18.46. As a measure of the general fund’s liquidity, it may be useful to compare unassigned fund balance to total fund expenditures. Unassigned fund balance represents 24.07 percent of the total general fund expenditures. Apart from the change noted in the previous paragraph, the fund balance of Kitsap County’s general fund increased by $4.79 during the current fiscal year. The key factor was the cost cutting measures taken by the County to reverse declining fund balances. A portion of the increase is due to the inclusion of fund balances of a number of funds formerly reported as special revenue funds now reported in the general fund, as a result of implementation of GASB 54. These funds accounted for an increase of $1.50 added to the general fund’s balance. County Roads fund balance increased by $5.23 primarily due to fewer capital projects in 2012. Real Estate Excise Tax fund balance decreased from $3.70 in 2011 to $2.49 in 2012. This was due to continued drops in the Real Estate Excise Tax collected. Mental Health Medicaid fund had a balance of $1.69 in 2012 down from $1.79 in 2011. This was due to a decrease of state funding for the program. Debt service funds have a total fund balance of $10.51, all of which is reserved for the payment of debt service. This is a decrease of $.55 from 2011. Proprietary funds. Kitsap County’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. The Sewer fund’s total net position was $72.15 in 2012, up $1.87 from 2011. This increase was caused by operating income as operating revenues exceeded operating expenses. Solid Waste fund’s total net position was $24.93 for 2012, down $.76 from 2011, as operating expenses exceeded operating revenues.



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Surface Water fund’s total net position was $21.80 for 2012 up $.34 from 2011. This was all due to operating income exceeding operating expenses. General Fund Budgetary Highlights Actual general fund revenues exceeded final budgeted revenues by $3 during fiscal year 2012. The biggest reasons for this were property taxes exceeding budget by $.69, sales taxes exceeding budget by $.72 and other taxes exceeded budget by $.98. Budget amendments and supplemental appropriations are typically made during the year to prevent budget overruns and to increase appropriations for unanticipated expenditures after adoption of the original budget. During the year there was a $.87 increase in appropriations between the original and final amended budget, however, the actual expenditures of the general fund came in well under the final budget total of $76.04, with a total of $74.82. Capital Assets At the end of fiscal year 2012, Kitsap County’s investment in capital assets for its governmental activities was $771.59 as reflected in the following schedule, which represents a net increase of $7.63 or 1.0 percent from last year. See Note 6 to the financial statements for further details on Capital Assets. Change in Capital Assets (millions)

2011 2012 2011 2012 2011 2012Land 58.44$ 58.42$ 2.47$ 2.89$ 60.91$ 61.31$ Infrastructure 472.90 482.61 - - 472.90 482.61Building 125.75 129.19 46.31 56.30 172.06 185.49Building Improv 28.77 33.47 76.90 83.41 105.67 116.88Machinery & Equipment 54.35 57.05 7.46 9.61 61.81 66.66Construction in progress 23.75 10.85 25.36 14.84 49.11 25.69 Total 763.96 771.59 158.50 167.05 922.46 938.64

Less: accumulated depreciation 354.78 371.92 70.75 75.42 425.53 447.34Net capital assets 409.18$ 399.67$ 87.75$ 91.63$ 496.93$ 491.30$

GovernmentalActivities

Buiness-typeActivities Total



15

Governmental activities Following are the major additions to Capital Assets for Governmental Activities:

Various infrastructure projects were completed during the year at a cost of $9.63

Various infrastructure land purchase totaled $2.95 Addition of Poplars property $5.40 Courthouse renovation project completed $3.21 Artificial turf installed at Gordon Field $1.50

Business-type activities. Following are the major activities in this area in 2012:

Completed Headworks project $15.29 Completed Ridgetop Regional pond expansion $1.79

Long-term Liabilities At year-end, the County had $177.68 in long-term liabilities versus $186.58 last year, a net decrease of $8.9 and 4.8 percent. Long-term liabilities, at Year-End

2011 Additions Reductions 2012Government activities:

Bonds Payable 91.96$ -$ 7.32$ 84.64$ Compensated absences 4.97 2.65 2.95 4.67 Internal Services debt 0.29 0.22 0.17 0.34 Notes Payable 24.01 0.49 2.44 22.06 Net OPEB Obligation 3.14 0.61 - 3.75 Other items 0.47 - 0.05 0.42

Total 124.84$ 3.97$ 12.93$ 115.88$ Enterprise activities:

Bonds Payable 50.62$ -$ 1.97$ 48.65$ Compensated absences 0.57 0.39 0.36 0.60 Other items 10.55 2.92 1.09 12.38

Total 61.74$ 3.31$ 3.42$ 61.63$ Total Debt 186.58$ 7.28$ 16.35$ 177.51$



16

See Notes 10 and 12 for more information on Long-term debt. There were no major long-term debt additions for 2012. Refer to the Notes to the Financial Statements to obtain more details on these issues (Notes 10 and 12). The Standard and Poor’s Corporation and Moody’s Investors Service provided a bond rating of AA- and Aa3 respectively for Kitsap County’s debt as of April 2013. The State limits the amount of general obligation debts the County can issue without the vote of the people to 1.5% of the total assessed value. As of the end of the fiscal year, the County has $360.73 remaining in debt capacity (non-voted). More detail information on capital assets and long-term debt are provided in the Notes to the Financial Statements (Notes 5, 10 and 12). ECONOMIC FACTORS The economy of the County is based mostly on government services. The largest employer by far is Kitsap Naval Base with over 30,500 employees including military personnel. Kitsap County has the only shipyard on the West Coast capable of overhauling nuclear aircraft carriers. Harrison Medical Center is next, employing over 2,379, Kitsap County is third employing over 1,160. Contacting the County’s Financial Management This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview of the County’s finances and to demonstrate the County’s accountability for the money it receives. If you have questions about this report or need additional financial information, contact Dave Schureman, Financial Services Manager Kitsap County Auditor’s Office 619 Division Street, MS-31 Port Orchard, Washington, 98366. Telephone (360) 337-7132 or visit the County’s web site at www.kitsapgov.com

KITSAP COUNTY, WASHINGTONStatement of Net PositionDecember 31, 2012 Component

Governmental Business-type UnitActivities Activities Total PFD

ASSETSCash and Cash equivalents 84,338,999$ 8,156,479$ 92,495,478$ 103,494 Deposits with fiscal agents 58,889 - 58,889 - Investments 15,449,044 76,986,299 92,435,343 783,243 Receivables(net) Property taxes 3,476,047 - 3,476,047 - Special assessments 13,914 25,608 39,522 - Accounts 125,828 2,551,682 2,677,510 - Others - - - - Due from agency agency fund 39,412 - 39,412 Internal balances 661,298 (661,298) - - Due from other governments 5,941,240 578,586 6,519,826 - Prepayments 357,925 - 357,925 - Inventories 1,618,677 215,872 1,834,549 - Restricted assets: - Cash and cash equivalents 1,304,493 3,342,181 4,646,674 - Deposits with fiscal agents 15,000 - 15,000 - Investments 4,162,820 67 4,162,887 - Notes/Contracts 11,258,518 - 11,258,518 - Special Assessment Receivable-Deferred 483,696 483,696 Long-term Receivable from Comp. Unit 9,260,000 - 9,260,000 - Long-term Receivable from KCCHA 1,181,099 1,181,099 Capital assets, net (Note1) Land 58,419,033 2,889,181 61,308,214 - Infrastructure 198,490,538 - 198,490,538 - Buildings 92,506,755 25,039,996 117,546,751 - Improvements & Other Buildings 20,419,407 45,592,480 66,011,887 - Machinery & Equipment 18,988,866 3,271,231 22,260,097 - Construction In Progress 10,852,540 14,841,666 25,694,206 -

Total assets 538,940,343 183,313,726 722,254,069 886,737

DEFERRED OUTFLOWS - - - -

LIABILITIESAccounts payable and accrued expenses 3,918,232 1,991,501 5,909,733 - Due to agency fund 4,659 4,659 Due to other governments 896,056 77,632 973,688 - Other liabilities 14,176,637 414,535 14,591,172 - Debt interest payable 321,022 321,022 Unearned revenue 8,451,998 - 8,451,998 - Non current Liabilities (Note 2): Due within one year 22,735,301 3,323,872 26,059,173 550,000 Due in more than one year 93,147,235 58,301,465 151,448,700 8,710,000

Total liabilities 143,330,117 64,430,027 207,760,144 9,260,000 DEFERRED INFLOWSGolf course service consession arrangement 2,143,466 - 2,143,466 -

NET POSITIONNet investment in capital assets 325,882,139 53,332,424 379,214,563 - Restricted: Capital Projects 3,167,731 - 3,167,731 - Debt service 10,514,252 3,342,247 13,856,499 -

Unrestricted 53,902,638 62,209,027 116,111,665 (8,373,263) Total net position 393,466,760$ 118,883,698$ 512,350,458$ (8,373,263)$

The notes to the financial statements are an integral part of this statement.

17

KITSAP COUNTY, WASHINGTON Statement of ActivitiesFor the Year Ended December 31, 2012

Component Operating Capital Unit

Charges for Grants and Grants and Governmental Business-Type Public FacilityFunctions/Programs Expenses Services Contributions Contributions Activities Activities Total DistrictPrimary Government:Governmental Activities

General Government 24,933,897$ 8,639,429$ 4,620,926$ -$ (11,673,543)$ -$ (11,673,543)$ -$ Judicial Services 13,330,564 5,007,465 1,898,661 - (6,424,438) - (6,424,438) - Public Safety 49,145,096 1,052,741 6,740,259 - (41,352,096) - (41,352,096) - Physical Environment 3,288,644 4,224,010 1,415,466 - 2,350,832 - 2,350,832 - Transportation 38,056,151 3,011,779 5,855,760 2,555,916 (26,632,696) - (26,632,696) - Health & Human Services 43,974,168 182,195 42,490,372 - (1,301,601) - (1,301,601) - Economic Environment 6,747,209 91,157 2,778,995 - (3,877,057) - (3,877,057) - Culture & Recreation 6,907,510 1,449,125 657,108 - (4,801,277) - (4,801,277) - Interest on Long-term Debt 5,399,145 - - - (5,399,145) - (5,399,145) - Total Governmental Activities 191,782,385 23,657,901 66,457,546 2,555,916 (99,111,021) 0 (99,111,021) -

Business-type ActivitiesSolid Waste 13,637,201 12,163,609 549,960 - - (923,632) (923,632) - Sewer Utility 16,612,738 16,028,698 - 1,924,691 - 1,340,651 1,340,651 - Surface Water 7,388,367 7,394,146 448,544 - - 454,323 454,323 - Total business-type activities 37,638,306 35,586,453 998,504 1,924,691 - 871,342 871,342 -

Total Primary Government 229,420,691$ 59,244,354$ 67,456,050$ 4,480,607$ (99,111,021) 871,342 (98,239,679) - Component Units:

Public Facility District(PFD) 603,286 - - - (603,286)

General revenues:Taxes:

Property taxes, levied for general purposes 56,248,976 - 56,248,976 - Property taxes, levied for debt service - - - - Sales & use taxes 27,008,483 - 27,008,483 1,088,478 Other taxes 11,062,277 - 11,062,277 -

Investment earnings 1,682,543 648,948 2,331,491 5,721 Miscellaneous 3,428,433 - 3,428,433 385

Special item - gain(loss) transfer of property to village greens (1,976,993) (1,976,993) Special item - gain(loss) additional assumption of debt for 2009 issue (2,578,338) (2,578,338) Transfers 349,011 (349,011) - - Extraordinary item - (loss) transfer of assets due to annexations (1,081,496) (1,081,496)

Total general revenues, special items, and transfers 94,142,896 299,937 94,442,833 1,094,585 Change in net assets (4,968,125) 1,171,279 (3,796,846) 491,299

Net position - beginning 398,440,326 117,427,001 515,867,327 (8,864,562) Prior Period Adjustments (5,440) 285,417 279,977 -

Net position - ending 393,466,760$ 118,883,698$ 512,350,457$ (8,373,263)$


Primary GovernmentProgram Revenues

Net (Expense) Revenue andChanges in Net Assets

18

KITSAP COUNTY, WASHINGTON Page 1 of 2Balance SheetGovernmental FundsDecember 31, 2012

Real EstateGeneral County Excise

Fund Roads TaxASSETS

Cash and Cash equivalents 16,935,847$ 28,201,973$ (96,940)$ Deposits with fiscal agents - - 58,889 Investments 427,297 2,661,161 2,539,219 Receivables(net) Property Taxes 2,130,071 1,261,779 - Special assessments - 1,622 - Accounts 86,310 - - Notes/Contracts - 6,696 4,597,500 Others - - - Due from other funds 2,098,918 488,403 - Due from other governments 1,000,645 1,176,565 - Interfund loan receivable 1,150,000 - - Prepayments 248,617 - - Advance to other funds 194,418 - -

Total assets 24,272,123$ 33,798,198$ 7,098,668$

LIABILITIES AND FUND BALANCESLiabilities

Accounts payable 823,423 491,046 301 Due to other funds 406,330 644,932 - Due to other governments - - Other liabilities 2,445,448 499,425 Advance from other fund - - - Revenues collected in advance 5,569 3,277 7,480 Deferred revenue 2,130,227 1,263,401 4,597,500 Interfund loan payable - - -

Total liabilities 5,810,997 2,902,081 4,605,281

Fund balancesNonspendable 443,035 - - Restricted - - 2,493,387 Committed - 30,896,117 - Assigned - - - Unassigned 18,018,091 Total fund balance 18,461,125 30,896,117 2,493,387

Total liabilities & fund balances 24,272,123$ 33,798,198$ 7,098,668$ The notes to the financial statements are an integral part of this statement

Special Revenue Funds

19

KITSAP COUNTY, WASHINGTON Page 2 of 2Balance SheetGovernmental Funds SpecialDecember 31, 2012 Revenue

FundMental Health Other Total

Medicaid Governmental GovernmentalFund Funds Funds

ASSETS

Cash and Cash equivalents 669,935$ 13,434,255$ 59,145,070$ Deposits with fiscal agents - 15,000 73,889 Investments 1,403,435 12,580,753 19,611,864 Receivables(net) Property Taxes - 84,197 3,476,047 Special assessments - 12,291 13,914 Accounts - 39,518 125,828 Notes/Contracts - 15,914,322 20,518,518 Others - - - Due from other funds 2,516 540,631 3,130,467 Due from other governments - 3,641,216 5,818,425 Interfund loan receivable - - 1,150,000 Prepayments - - 248,617 Advance to other funds - - 194,418

Total assets 2,075,885$ 46,262,184$ 113,507,058$


Accounts payable 359,879 1,976,770 3,651,420 Due to other funds 2,743 2,027,306 3,081,310 Due to other governments - 896,056 896,056 Other liabilities 27,398 692,735 3,665,006 Advance from other fund - 194,418 194,418 Revenues collected in advance - 20,489 36,815 Deferred revenues - 6,057,481 14,048,609 Interfund loan payable - 1,150,000 1,150,000

Total liabilities 390,019 13,015,256 26,723,634

Fund BalancesNonspendable - 9,260,000 9,703,035 Restricted 1,685,866 22,549,049 26,728,302 Committed - 1,437,879 32,333,996 Assigned - - Unassigned - - 18,018,091

Total fund balances 1,685,866 33,246,928 86,783,424 Total liabilities and fund balances 2,075,885$ 46,262,184$ 113,507,058$

The notes to the financial statements are an integral part of this statement

20

Fund balances of governmental funds - page 20 86,782,887$

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

Capital assets net of depreciation have not been included as financialresources in governmental fund activity.

Capital assets 771,594,380 Depreciation (371,917,241)

Capital asset net of depreciation 399,677,139

Long term debt and compensated absences that have notbeen included in the governmental fund activity.

Bond payable 84,644,091 Compensated absences 4,665,175 Bond Antitipation Note 15,323,033 Notes payable 6,740,966 OPEB Liability 3,749,917 PWTF Loans 425,279

Long-term debt (115,548,461)

Other assets not available to pay for current-period - expenditures and, therefore, are deferred in the funds.

Taxes/Assessments receivable 3,489,961 KCCHA receivable 1,181,099

Internal service funds are used by management to charge the costs of certain activities, such as equipment management and self-insurance, to individualfunds. The assets and liabilities of the internal service funds must be addedto the statement of net assets.

Assets 29,078,531 Liabilities (11,285,666) Uses Other than Operations 91,270

Asset less liabilities 17,884,135

Net assets of governmental activities - page 17 393,466,760$


December 31, 2012

KITSAP COUNTYRECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS

TO THE STATEMENT OF NET POSITION

21

KITSAP COUNTY, WASHINGTON Page 1 of 2

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

Real EstateGeneral County Excise

Fund Roads TaxREVENUES:

Property taxes 30,653,810$ 23,368,830$ -$ Retail sales & use taxes 20,162,176 - - Other taxes 5,761,810 27,181 2,831,630 Licenses and permits 167,908 191,997 - Intergovernmental 9,559,076 8,411,676 - Charges for services 8,619,518 1,155,603 - Fines & forfeits 2,426,747 - - Investment earnings 820,068 19,098 252,668 Miscellaneous 992,086 4,835 122,500

Total revenues 79,163,200 33,179,221 3,206,798

EXPENDITURES:Current: General government 23,076,401 - -

Judicial Services 12,977,349 - - Public safety 34,890,745 - - Physical Environment 32,807 - - Transportation - 25,176,203 - Health & Human Services - - - Economic Environment - - - Culture & recreation 3,848,360 - -

Debt service - Principal - 47,253 122,500 Interest and other charges - 2,363 232,876

Capital outlay 42,863 3,993,593 - Total expenditures 74,868,526 29,219,411 355,376

Excess(deficiency) of revenues over expenditures 4,294,673 3,959,810 2,851,422

OTHER FINANCING SOURCES (USES):Proceeds from BANS - - - Proceeds from GO Bonds - - - Proceeds from Refunding Bonds - - - Payment to bond refunding escrow agentSale of capital assetTransfers in 3,719,273 1,620,000 - Transfers out (3,225,707) (352,209) (4,061,506) Premiums on bonds -

Total other financing sources & uses 493,567 1,267,791 (4,061,506) SPECIAL ITEMS:Sales of pledged assets

Net change in fund balance 4,788,240 5,227,601 (1,210,084) Fund balances-beginning 13,672,885 25,668,516 3,703,471 Prior period adjustments - - Fund balances 18,461,125$ 30,896,117$ 2,493,387$



22


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

FundMental Health Other Total

Medicaid Governmental GovernmentalFund Funds Funds

REVENUES:Property taxes -$ 2,226,337$ 56,248,976$ Retail sales & use taxes - 6,846,307 27,008,483 Other taxes - 2,441,657 11,062,277 Licenses and permits - 2,421,785 2,781,690 Intergovernmental 22,747,823 27,984,075 68,702,651 Charges for services - 4,830,188 14,605,309 Fines & forfeits - 678,920 3,105,667 Investment earnings 10,064 580,644 1,682,543 Miscellaneous - 2,295,098 3,414,519

Total revenues 22,757,887 50,305,010 188,612,115

EXPENDITURES:Current: General government - 2,177,969 25,254,370

Judicial Services - 335,101 13,312,451 Public safety - 9,621,312 44,512,057 Physical Environment - 3,255,837 3,288,644 Transportation - 38,443 25,214,645 Health & Human Services 22,861,834 20,971,943 43,833,777 Economic Environment - 6,743,289 6,743,289 Culture & recreation - 1,746,282 5,594,642

Debt service Principal - 9,634,506 9,804,260 Interest and other charges - 4,839,686 5,074,924

Capital outlay - 369,205 4,405,661 Total expenditures 22,861,834 59,733,574 187,038,721

Excess(deficiency) of revenues over expenditures (103,947) (9,428,564) 1,573,394

OTHER FINANCING SOURCES (USES):Proceeds from BANS - 491,906 491,906 Proceeds from GO Bonds - - - Proceeds from Refunding Bonds - - - Payment to bond refunding escrow agent - - Sale of capital asset 566,865 566,865 Transfers in - 12,845,048 18,184,322 Transfers out - (10,493,225) (18,132,647) Premiums on bonds - -

Total other financing sources & uses - 3,410,594 1,110,446 SPECIAL ITEMS:Sales of pledged assets 3,688,193 3,688,193

Net change in fund balance (103,946) (2,329,777) 6,372,033 Fund balances-beginning 1,789,813 35,582,148 80,416,833 Prior period adjustments (5,440) (5,440) Fund balances-ending 1,685,866$ 33,246,928$ 86,783,424$


23

Net change in fund balances-total governmental funds - page 23 6,372,033$

Amounts reported for governmental activities in the statement of activities differsfrom the amounts reported in the statement of activities because:

Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by whichcapital outlays exceeded depreciation in the current period.

Capital out-lay 4,405,661 Depreciation (20,060,216)

Capital Asset TransactionsProceeds from the sale of capital assets not recognized in the Statement of Activity (566,865)

The issuance of long-term debt (e.g. bonds, leases) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neithertransaction, however, has any effect on net assets. Also, governmental funds report the effect of issuance costs, premiums, discounts, and similar items whendebt is first issued, whereas these amounts are deferred and amortized in the statement of activities. This amount is the net effect of these differences in the treatment of long-term debt and related items

Proceeds from BANS (491,906) Special Item - loss on transfer of assets to Village Green Metro Parks District (1,976,993) Receipts from sales of non-county contracted assets (3,688,193) Special Item - loss assumed debt (2,578,338) Other debt issuance costs amortized (324,211) Bond principal 9,804,260 Recording of Net OPEB Obligation (608,180) Extrordinary items- assets transferred to City of Pt Orchard due to avnnexations (1,081,496)

Revenues in statement of activities that do not provide current finanical resources 240,786 are not reported as revenues in the funds.

Property taxes receivable 3,476,047 Special Assessments 13,914

Internal services ActivitiesNet Transfers 56,539 Depreciation already included above 2,193,252 Net profit (154,219)

Change in net assets of governmental activities - page 18 (4,968,125)$

TO THE STATEMENT OF ACTIVITIESYEAR ENDED DECEMBER 31, 2012

KITSAP COUNTYRECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS

24

KITSAP COUNTY, WASHINGTONStatement of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualGeneral FundYear Ended December 31, 2012

Variance Budget to ActualOriginal Final With GAAP Basis GAAP

REVENUES: Budget Budget Actual Final Budget Differences BasisProperty taxes 29,953,816$ 29,953,816 30,653,810$ 699,994$ -$ 30,653,810$ Retail sales & use taxes 19,442,308 19,442,308 20,162,176 719,868 - 20,162,176 Other taxes 4,778,195 4,778,195 5,759,254 981,059 2,556 5,761,810 Licenses and permits 102,150 153,150 167,908 14,758 - 167,908 Intergovernmental 8,992,832 9,042,358 9,556,732 514,374 2,345 9,559,076 Charges for services 8,367,296 8,397,236 8,619,518 222,282 - 8,619,518 Fines & forfeits 2,452,543 2,452,543 2,393,573 (58,970) 33,174 2,426,747 Investment Earnings 737,850 737,850 817,004 79,154 3,064 820,068 Miscellaneous 1,159,600 1,164,600 992,086 (172,514) - 992,086

75,986,590 76,122,056 79,122,061 3,000,005 41,139 79,163,200 EXPENDITURES:Current:

Administrative Services 703,511$ 712,087$ 707,084$ 5,003$ -$ 707,084 Assessor 2,165,080 2,165,080 2,129,338 35,742 - 2,129,338 Auditor 1,588,732 1,620,923 1,584,099 36,824 - 1,584,099 Commissioners 1,245,056 1,230,270 1,129,731 100,539 - 1,129,731 General Admistration 6,046,192 5,844,829 6,198,871 (354,042) - 6,198,871 Personnel & Human resources 1,136,135 1,170,366 1,139,842 30,524 - 1,139,842 Prosecuting attorney 7,853,269 7,853,269 7,742,902 110,367 - 7,742,902 Facilities Maintenance 1,770,845 1,770,845 1,709,901 60,944 - 1,709,901

Treasurer 808,817 808,817 734,634 74,183 - 734,634 Total general government 23,317,637 23,176,486$ 23,076,401 100,085 - 23,076,401

Judicial ServicesClerk 5,540,407$ 5,850,407$ 5,839,413$ 10,994$ -$ 5,839,413 District court 2,510,956 2,510,956 2,480,969 29,987 - 2,480,969 Superior court 2,310,344 2,371,275 2,369,602 1,673 - 2,369,602 Juvenile 2,381,623 2,388,588 2,287,365 101,223 - 2,287,365

Total Judicial services 12,743,330 13,121,226 12,977,349 143,877 - 12,977,349 Public safety

Sheriff 17,299,569$ 17,535,331$ 17,525,927$ 9,404$ 597$ 17,526,524 Jail 11,826,793 12,226,793 12,064,068 162,725 - 12,064,068 Juvenile 4,559,728 4,552,763 4,375,394 177,369 - 4,375,394 Coroner 929,394 931,394 924,758 6,636 - 924,758 Personnel & Human Resources - - 1 (1) - 1

Total Public Safety 34,615,484 35,246,281 34,890,148 356,133 597 34,890,745 Physical Environment 32,807 32,807 Culture & recreation

Parks 3,301,310$ 3,305,810$ 3,213,239$ 92,571$ 11,556$ 3,224,794 Cooperative Extension 371,862 385,293 371,859 13,434 - 371,859 Personnel & Human Resources 270,455 270,455 251,707 18,748 - 251,707

Total Culture & Recreation 3,943,627 3,961,558 3,836,804 124,754 11,556 3,848,360 Interest and other charges 4,271 4,271 - 4,271 - - Capital outlay 544,783 531,783 42,863 488,920 - 42,863

Total expenditures 75,169,132 76,041,605 74,823,566 1,218,039 44,960 74,868,526 Excess(deficiency) of revenues over expenditures 817,458 80,451 4,298,495 4,218,044 (3,821) 4,294,674

OTHER FINANCING SOURCES (USES):Transfers in 2,660,257 2,660,257 2,337,441 (322,816) 1,504,225 3,719,273 Transfers out (3,424,569) (3,442,718) (3,348,100) 94,618 - (3,225,707)

Total other financing sources & uses (764,312) (782,461) (1,010,658) (228,197) 1,504,225 493,567 Net change in fund balance 53,146 (702,010) 3,287,837 3,989,847 1,500,403 4,788,240

Fund balances-beginning 11,942,823 11,942,823 11,942,823 - 1,730,062 13,672,885 Prior period adjustments - - Fund balances-ending 11,995,969 11,240,813 15,230,660 3,989,847 3,230,465 18,461,125 The notes to the financial statements are an integral part of this statement.

2012

25

KITSAP COUNTY, WASHINGTONCounty Roads Fund 101 & 102Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012

Variance withOriginal Final Actual Final Budget

REVENUES:Property taxes 24,017,110$ 24,017,110$ 23,368,830$ (648,280)$ Other taxes 30,000 30,000 27,181 (2,819) Licenses and permits 120,000 120,000 191,997 71,997 Intergovernmental 5,555,776 5,555,776 8,411,676 2,855,900 Charges for services 390,947 390,947 1,155,603 764,656 Investment earnings 10,000 10,000 19,098 9,098 Miscellaneous 5,000 5,000 4,835 (165)

Total revenues 30,128,833 30,128,833 33,179,221 3,050,388

EXPENDITURES:Current:

Transportation 26,618,166 26,618,166 25,176,203 1,441,963 Debt service

Principal 78,913 78,913 47,253 31,660 Interest and other charges 6,041 6,041 2,363 3,678

Capital outlay 6,452,000 6,452,000 3,993,593 2,458,407 Total expenditures 33,155,120 33,155,120 29,219,411 3,935,709

Excess(deficiency) of revenues over expenditures (3,026,287) (3,026,287) 3,959,810 6,986,097

OTHER FINANCING SOURCES (USES):Transfers in 1,827,000 1,827,000 1,620,000 (207,000) Transfers out (372,541) (372,541) (352,209) 20,332

Total other financing sources & uses 1,454,459 1,454,459 1,267,791 (186,668) Net change in fund balance (1,571,828) (1,571,828) 5,227,601 6,799,429

Fund balances-beginning 25,668,515 25,668,515 25,668,516 1 Prior period adjustments - - - - Fund balances-ending 24,096,687$ 24,096,687$ 30,896,117$ 6,799,430$


Budget

26

KITSAP COUNTY, WASHINGTONReal Estate Excise Tax Fund 131Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Other taxes 1,849,622$ 1,849,622$ 2,831,630$ 982,008 Investment earnings 301,723 301,723 252,668 (49,055) Miscellaneous 122,502 122,502 122,500 (2)

Total revenues 2,273,847 2,273,847 3,206,798 932,951

EXPENDITURES:Current: General government - - - - Debt service - - -

Principal 110,000 110,000 122,500 (12,500) Interest and other charges 243,735 243,735 232,876 10,859 Capital Outlay - - Total expenditures 353,735 353,735 355,376 (1,641)

Excess(deficiency) of revenues over expenditures 1,920,112 1,920,112 2,851,422 931,310

OTHER FINANCING SOURCES (USES):GO Bond proceeds - - - - Sale of capital assets - - - - Transfers in - - - - Transfers out (4,061,506) (4,061,506) (4,061,506) - Premiuns on bonds - -

Total other financing sources & uses (4,061,506) (4,061,506) (4,061,506) - Net change in fund balance (2,141,394) (2,141,394) (1,210,084) 931,310

Fund balances-beginning 3,703,471 3,703,471 3,703,471 (0) Prior period adjustments - - - - Fund balances-ending 1,562,077$ 1,562,077$ 2,493,387$ 931,310$


Budget

27

KITSAP COUNTY, WASHINGTONMental Health Medicaid 187Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Intergovernmental 24,109,000$ 24,109,000$ 22,747,823$ (1,361,177)$ Investment earnings - - 10,064 10,064 Miscellaneous - - - -

Total revenues 24,109,000 24,109,000 22,757,887 (1,351,113)


Health & Human Services 24,109,000 24,109,000 22,861,834 1,247,166 Total expenditures 24,109,000 24,109,000 22,861,834 1,247,166

Excess(deficiency) of revenues over expenditures - - (103,947) (103,947)

OTHER FINANCING SOURCES (USES):Transfers out - - - -

Total other financing sources & uses - - - - Net change in fund balance - - (103,947) (103,947)

Fund balances-beginning 1,789,814 1,789,814 1,789,813 (1) Prior period adjustments - - - - Fund balances-ending 1,789,814$ 1,789,814$ 1,685,866$ (103,948)$


Budget

28

KITSAP COUNTY, WASHINGTON

Statement of Net PositionProprietary FundsDecember 31, 2012

GovernmentalSurface Activities

Sanitary Solid Water Internal ASSETS Sewer Waste Utility Total Services FundsCurrent assets:

Cash and Cash equivalents 2,761,760$ 1,838,548$ 3,556,171$ 8,156,479$ 26,498,422$ Deposits with fiscal agents - - - - - Investments 48,222,732 22,380,425 6,383,142 76,986,299 - Receivables(net) - - Special assessments 25,608 - - 25,608 - Accounts 1,613,032 849,518 89,132 2,551,682 - Due from other funds 156,167 101,156 53,846 311,169 729,309 Due from other governments - 153,439 425,147 578,586 122,815 Prepayments - - - - 109,308 Inventories 215,872 - - 215,872 1,618,677 Restricted assets: - - Cash and cash equivalents 3,342,181 - - 3,342,181 - Deposits with fiscal agents - - - - - Investments 67 - - 67 - Total current assets 56,337,419 25,323,086 10,507,438 92,167,943 29,078,531

Noncurrent assets:Special Assessment Receivable-De 483,696 483,696 - Capital assets, net (Note1) - Land 1,040,362 472,444 1,376,375 2,889,181 - Buildings 55,493,065 802,991 5,479 56,301,535 - Improvements & Other Buildings 71,100,068 1,651,625 10,658,869 83,410,562 - Machinery & Equipments 9,308,715 101,187 199,832 9,609,734 32,011,861 Construction In Progress 10,678,304 63,519 4,099,843 14,841,666 - Less accumulated depreciation (70,202,746) (1,667,720) (3,547,658) (75,418,124) (20,436,768) Total noncurrent assets 77,901,464 1,424,046 12,792,740 92,118,250 11,575,093

Total assets 134,238,883 26,747,132 23,300,178 184,286,193 40,653,624

DEFERRED OUTFLOWS

LIABILITIESCurrent liabilities:

Accounts payable and accrued expe 698,299 838,176 455,026 1,991,501 266,812 Due to other funds 92,097 112,534 767,836 972,467 82,415 Due to other governments 8,814 27,380 41,438 77,632 - Other liabilities 232,778 78,017 103,740 414,535 10,533,598 Debt interest payable 321,022 321,022 - Current portion of long term liabilitie 3,270,683 39,326 13,863 3,323,872 - Total current liabilities 4,623,693 1,095,433 1,381,903 7,101,029 10,882,825

Non current Liabilities (Note 2):Due in more than one year 57,466,244 720,454 114,767 58,301,465 402,841 Total noncurrent liabilities 57,466,244 720,454 114,767 58,301,465 402,841

Total liabilities 62,089,937 1,815,887 1,496,670 65,402,494 11,285,666

DEFERRED INFLOWS

NET POSITIONInvested in capital assets, net of relat 39,115,638 1,424,046 12,792,740 53,332,424 11,575,093 Restricted: - - Debt service 3,342,248 - - 3,342,248 -

Unrestricted 29,691,060 23,507,199 9,010,768 62,209,027 17,792,865 Total net position 72,148,946$ 24,931,245$ 21,803,508$ 118,883,699$ 29,367,958$


29

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


Sanitary Solid Water Internal Sewer Waste Utility Total Service Funds

Operating revenues:Charges for services 16,028,407$ 12,156,221$ 7,392,545$ 35,577,173$ 17,824,854$ Miscellaneous 291 7,388 1,601 9,280 89,158 Total operating revenues 16,028,698 12,163,609 7,394,146 35,586,453 17,914,012

Operating expenses:Personal services 5,236,102 1,852,862 2,427,160 9,516,124 6,332,243 Contractual services 1,316,493 1,227,138 3,012,474 5,556,105 1,619,011 Utilities 1,247,665 9,869,354 82,415 11,199,434 43,638 Repair and maintenance 103,483 70,683 221,357 395,523 1,045,597 Other supplies and expenses 2,299,913 502,196 1,157,992 3,960,101 4,798,423 Insurance claims and expenses 24,617 8,350 75,955 108,922 2,282,803 Depreciation 4,152,317 106,618 411,014 4,669,949 2,193,252 Total operating expenses 14,380,590 13,637,201 7,388,367 35,406,158 18,314,967

Operating income 1,648,108 (1,473,592) 5,779 180,295 (400,955) Nonoperating revenue (expenses)

Interest and investment revenue 382,233 167,672 99,043 648,948 - Miscellaneous revenue - 549,960 448,544 998,504 - Interest expense (2,232,148) - - (2,232,148) - Miscellaneous expense - - - - - Total nonoperating expenses (1,849,915) 717,632 547,587 (584,696) - Income (loss) before contributions & transfers (201,807) (755,960) 553,366 (404,401) (400,955)

Capital contributions 1,924,691 - - 1,924,691 153,580 Transfers in - - - - 146,617 Transfers out (136,903) - (212,108) (349,011) (53,461)

Change in net position 1,585,981 (755,960) 341,258 1,171,279 (154,219) Total net position - beginning 70,277,548 25,687,205 21,462,250 117,427,003 29,522,177

Prior Period Adjustments 285,417 - - 285,417 - Total net position - ending 72,148,945$ 24,931,243$ 21,803,509$ 118,883,697$ 29,367,958$


30

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


Sanitary Solid Water Internal serviceCASH FLOWS FROM Sewer Waste Utility Total Funds

OPERATING ACTIVITIESReceipts from customers 16,152,775$ 12,137,089$ 9,660,770$ 37,950,634$ 19,424,652$ Payments to suppliers (6,096,381) (11,763,009) (4,766,791) (22,626,181) (10,167,324) Payments to employees (5,234,577) (1,845,662) (2,412,663) (9,492,902) (6,289,214) Net cash provided by operating activities 4,821,817 (1,471,582) 2,481,316 5,831,551 2,968,114

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIESOperating grants received - 486,672 384,546 871,218 - Transfers in - - - - 146,617 Transfers out (136,903) - (212,108) (349,011) (53,461) Net cash provided by noncapital activities (136,903) 486,672 172,438 522,207 93,156

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIESCapital contributions 1,427,847 - - 1,427,847 - Proceeds from sales of bonds 2,921,100 2,921,100 - Purchases of capital assets (4,772,803) (47,011) (2,846,286) (7,666,100) (3,390,946) Principal paid on capital debt (2,892,329) - - (2,892,329) - Interest paid on capital debt (2,401,982) - - (2,401,982) - Net cash from related financing activities (5,718,167) (47,011) (2,846,286) (8,611,464) (3,390,946)

CASH FLOWS FROM INVESTING ACTIVITIESProceeds from sales and maturities of investme 5,900,000 1,650,000 5,950,000 13,500,000 - Purchase of Investment (7,139,008) (267,672) (4,427,853) (11,834,533) - Interest and dividends 382,233 167,672 99,043 648,948 - Net cash provided by investing activities (856,775) 1,550,000 1,621,190 2,314,415 - Net (decrease) in cash and cash equivalen (1,890,028) 518,079 1,428,658 56,709 (329,676)

Balances - beginning of the year 7,993,969 1,320,469 2,127,513 11,441,951 26,828,098 Balances - end of the year 6,103,941$ 1,838,548$ 3,556,171$ 11,498,661$ 26,498,422$ Reconciliation of operating income

(loss) to net cash provided (used) by operating activities:

Operating income (loss) 1,648,108$ (1,473,592)$ 5,779 180,295$ (400,955) Adjustments to reconcile operating income to net cash provided (used) by operating activities:

Depreciation expense 4,152,317 106,618 411,014 4,669,949 2,193,252 Change in assets and liabilities: -

Receivables, net (109,659) 69,155 13,439 (27,065) - Due from other funds 233,736 (95,675) 2,253,185 2,391,246 1,354,677 Due from other governments - - - - 155,960 Inventories 27,762 - - 27,762 (7,863) Prepaid - - - - (196,858) Accounts and other payables (1,181,007) 21,620 200,748 (958,639) (166,667) Due to other funds 21,638 (30,985) (290,832) (300,179) (1,211,833) Due to other governments 5,030 - (135,943) (130,913) - Employee benefits 1,525 7,200 14,497 23,222 43,029 Accrued expenses 22,367 (75,923) 9,429 (44,127) 1,205,372

Net cash provided by operating activities 4,821,817$ (1,471,582)$ 2,481,316$ 5,831,551$ 2,968,114$

Noncash investing, capital and financing Activities Contribution of capital assets 496,844 496,844 153,581 The notes to the financial statements are an integral part of this statement.

Business-type Activities - Enterprise Funds

31

KITSAP COUNTY, WASHINGTONStatement of Fiduciary Net PositionDecember 31, 2012

AgencyFunds

ASSETSCash 24,266,777$ Deposits with Fiscal Agents 200,000 Investments 190,038,526 Taxes Receivable 10,842,379 Other Current Receivables 325,662 Due From Other Funds 4,659 Due From Other Governments 79,632

Total Assets 225,757,634$

LIABILITIESWarrants Payable 2,871,108$ Accounts Payable - Sales Tax Payable - Other Accrued Liabilities - Due to Other Funds 39,412 Due to Other Governments 500 Interfund loans - Custodial Account 222,846,613

Total Liabilities 225,757,634$

The notes to the financial statements are an intregal part of this statement.

32

Kitsap County, Washington Notes to Financial Statements

December 31, 2012

33

TABLE OF CONTENTS

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ................. 34

A. Reporting entity .................................................................................... 34 B. Government-Wide and Fund Financial Statements .............................. 35 C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation ................................................................................................. 35 D. Budgetary Information .......................................................................... 37 E. Assets, Liabilities and Equity ................................................................ 39

NOTE 2. RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS ............................................................................... 58 NOTE 3. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY .............. 58 NOTE 4. DEPOSITS AND INVESTMENTS ....................................................... 59 NOTE 5. PROPERTY TAX ................................................................................ 60 NOTE 6. CAPITAL ASSETS ............................................................................. 62 NOTE 7. PENSION PLANS ............................................................................... 64 NOTE 8. RISK MANAGEMENT ........................................................................ 77 NOTE 9. SHORT-TERM DEBT ......................................................................... 79 NOTE 10. LONG-TERM DEBT .......................................................................... 79

A. General Obligation Bonds ..................................................................... 80 B. Revenue bonds .................................................................................... 82 C. Pollution Remediation Obligation ......................................................... 83 D. Compensated absences....................................................................... 83

NOTE 11. LEASES ............................................................................................ 83 NOTE 12. CHANGES IN LONG-TERM LIABILITIES ....................................... 84 NOTE 13. CONTINGENCIES AND LITIGATIONS ............................................ 85 NOTE 14. INTER-FUND BALANCES AND TRANSFERS ................................ 85 NOTE 15. RECEIVABLES AND PAYABLES ................................................... 86 NOTE 16. DEFERRED COMPENSATION ........................................................ 87 NOTE 17. SERVICE CONCESSION ARRANGEMENTS .................................. 88 NOTE 18. OTHER POST-EMPLOYMENT BENEFITS ...................................... 88 NOTE 19. POLLUTION REMEDIATION OBLIGATION .................................... 91 NOTE 20. OTHER NOTE DISCLOSURES ........................................................ 91


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NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Kitsap County’s financial statements have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The significant accounting policies are described below:

A. Reporting entity Kitsap County is a municipal corporation of Washington State, governed under the commissioner form of government. The accompanying financial statements present the government and entities for which the government is considered to be financially accountable. The voters of Kitsap County elected the three-member board on a partisan basis to serve overlapping 4-year terms. The Board of County Commissioners is the legislative body and also has a quasi-judicial role in dealing with land use matters. The body is also responsible for all administrative duties of running the County, which are not expressly given to any other County position. As required by generally accepted accounting principles the financial statements present Kitsap County, the primary government, and its component units. The component units discussed below are included in the County reporting entity because of the significance of their operational or financial relationships with the County. Discretely presented component units. The Public Facility District (PFD) is governed by the seven member board appointed by the Board of County Commissioners. It is a legally separate entity. The PFD was responsible for the construction of the Kitsap Conference Center at Bremerton Harborside (City of Bremerton) and the County’s Event Center, using sales tax revenues. The PFD was created and the Kitsap County Board of Commissioners appointed its board members, therefore the County is financially responsible for its operations. The County financed the PFD projects through an $11.395 million bond issue and the PFD pledged its tax revenues to the County through an interlocal government agreement. The debt is reported on the County’s books. The component unit does not issue separate financial statements, therefore, we have included these statements in our basic Financial Statement section. Blended component units. The Industrial Development Corporation of Kitsap County was created and approved by the Kitsap County Board of County Commissioners on May 17, 1999 to construct and maintain industrial facilities throughout Kitsap County. All three County Commissioners are on its board of directors, therefore, the County is financially responsible for the operation of the corporation. IDC sold $2 million in non-recourse revenue bonds in 2003 which neither the County, nor IDC is responsible to repay under the loan agreement. The issuer (IDC) loaned the proceeds of the bonds to CARA Group, LLC, a Washington limited liability company (the Borrower) pursuant to a loan agreement dated March 1, 2003. The Borrower is obligated to make payments to the trustee in amounts sufficient to pay the principal and premium, if any, interest on the bonds, and certain


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other fees and expenses and to make payments sufficient to pay the purchase price of bonds tendered or deemed tendered for purchase to the extent that other moneys are not available. The corporation did not have any activity during the current year; therefore there is nothing to report.

B. Government-Wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the non-fiduciary activities of the primary government. For the most part, the effect of interfund activity has been removed from these statements. Interfund services provided and used are not eliminated in the process of consolidation. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Our policy is to allocate indirect costs to a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements or a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate fund financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.

C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current


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period or soon enough thereafter to pay liabilities of the current period. For this purpose, the County considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. The County considers property taxes as available if they are collected within 60 days after year end. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes, licenses, and interest associated within the current period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessment receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered measurable and available only when cash is received by the County. The County reports the following major governmental funds:

The general fund is the County’s operating fund. It accounts for all financial resources of the general government, except those required or elected to be accounted for in another fund. The county road fund is used to account for the maintenance and the construction of County roads and bridges. The real estate excise tax fund is used to account for the collection of real estate excise taxes to be used for capital projects. The Mental Health Medicaid fund is used to account for Medicaid grant funds received by the mental health program and the spending of those funds.

The County reports the following major proprietary funds: The solid waste fund is used to account for the costs of providing solid waste services to the residents of Kitsap County. The sanitary sewer fund is used to account for the costs of providing sewage disposal services to the residents of Kitsap County. The surface water utility is used to account for costs of providing surface water utilities to the residents of Kitsap County.

Additionally, the County reports the following fund types: Internal service funds provide Information and Computer services, Self-Insurance program, Elections Services, Employer Benefits, Building Repair and Replacement and Equipment Rental and Repair services to other departments or agencies of the County on a cost reimbursement basis.


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The fiduciary funds for Kitsap County are as follows: Agency funds are used to account for the funds held in a custodial nature for other governmental entities, the vast majority in the form of cash and investments. The entities include school districts, the public utility district, recreation districts, the public health district, the library district, cities and towns, ports, water districts, fire districts and sewer districts. As a general rule, the effect of the inter-fund activity has been eliminated for the government-wide financial statements. Amounts reported as program revenues include 1) charges to customers, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than program revenues. General revenues include all taxes. Indirect costs are allocated by either the number of staff, or the square footage of the office occupancy. Insurance costs are allocated by the number of staff covered, and information services costs that are not direct costs are allocated by the number of users. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the enterprise funds are use charges for sewer, collection fees for solid waste, use charges for surface water. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.

D. Budgetary Information

1. Scope of Budget

Annual appropriated budgets are adopted for all of the Governmental funds of the County on the modified accrual basis of accounting except those funds listed below:

GMA Transportation Impact Fees Fund-CK McCormick Village Traffic Impact Fees Model Toxic Control Act Fund KC Capital Project 2001 Fund

Budgets were not adopted for these funds in 2012 because no expenditures were anticipated in 2012.


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Budgets for debt service and capital project funds are adopted at the level of the individual debt issue or project and for one fiscal year. Budgets for these types of funds are adopted every year throughout the lives of the debt issues or projects. Other budgets are adopted at the level of the fund, except in the General (Current Expense) fund, where expenditures may not exceed appropriations at the department level and the budgets constitute the legal authority for expenditures at that level. Appropriations for general and special revenue funds lapse at year-end (except for appropriations for capital outlays, which are carried forward from year to year until fully expended or the purpose of the appropriation has been accomplished or abandoned). Encumbrances accounting is employed in governmental funds. Encumbrances (e.g., purchase orders, contracts) outstanding at year end are reported as reservation of fund balances and do not constitute expenditures or liabilities because the commitments will be re-appropriated and honored during the subsequent year.

2. Amending the Budget

Kitsap County’s budget procedures comply with chapter 36.40 of the Revised Code of Washington. Budgets may be administratively revised within all funds except the General fund, as long as total appropriations are not changed. General fund department budgets may be revised administratively as long as the department total appropriation is not changed. In accordance with the laws of the State of Washington, any unexpended appropriation balances lapse at the close of the fiscal year. The budget amounts shown in the financial statements are the final authorized amounts as revised during the year. The financial statements contain the original and final budget information. The original budget is the first complete appropriated budget. The final budget is the original budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other legally authorized changes applicable for the fiscal year.

The budgets are integrated into the accounting system. The budgetary data, as presented in the financial statements for all funds with annual budgets, compare the expenditures with the amended budgets. All budgets are presented on the modified accrual basis of accounting. Accordingly, the budgetary comparison schedule for the General fund and Special Revenue funds present actual expenditures in accordance with the accounting principles generally accepted in


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the United States on a basis consistent with the legally adopted budgets as amended. Budget revisions Revisions were made to the original budgets of the following funds during the year:

Original Budget Final

Fund Description Budget Change Budget

General Fund 78,593,701$ 890,622 79,484,323$

Non Major Funds 74,205,521$ 10,250,587 84,456,108$ 11,141,209$

3. Excess of expenditures over appropriations For the year ended December 31, 2012 expenditures did not exceed appropriations in any of the general fund departments.

4. Deficit Balance

At December 31, 2012, the following fund reported a deficit balance of fund net position, which is a violation of state statute:

Fund #104 Department of Emergency Management $47,673 The Department of Emergency Management’s year end deficit should be reversed in 2013.

E. Assets, Liabilities and Equity

1. Cash and Cash Equivalents

It is the County’s policy to invest all temporary cash surpluses. At December 31, 2012, the Treasurer was holding $ 109.35 million in short-term residual investments of surplus cash. This amount is classified on the balance sheet as cash and cash equivalents in various funds. The interest on these investments is credited to the General fund. For purposes of the statement of cash flows, the County considers all highly liquid investments (including restricted assets) with a maturity of three months or less when purchased to be cash equivalents.


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2. Investments Investments for the government are reported at fair value. The State Treasurer’s Investment Pool operates in accordance with appropriate state laws and regulations. The reported value of the pool is the same as the fair value of the pool shares (see Note 4, Deposits and Investments).

3. Receivables

Taxes receivable consists of property taxes and related interest and penalties (see Note 5, Property Tax). Accrued interest receivable consists of amounts earned on investments, notes, and contracts at the end of the year. Special assessments are recorded when levied. Special assessments receivable consist of current and delinquent assessments and related interest and penalties. Deferred assessments on the fund financial statements consist of unbilled special assessments that are liens against the property benefited. As of December 31, 2012, no special assessments receivables were delinquent. Customer accounts receivable consist of amounts owed from private individuals or organizations for goods and services including amounts owed for which billings have not been prepared. Notes and contracts receivable consist of amounts owed on open account from private individuals or organizations for goods and services rendered.

4. Amounts Due to and from Other Funds and Governments, Interfund Loans and Advances Receivable Activities between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either interfund loans receivable/payable or advances to/from other funds. All other outstanding balances between funds are reported as due to/from other funds. Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as internal balances. A separate schedule of interfund loans receivable and payable is furnished in Note 14, Interfund Balances and Transfers. Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources.


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41

5. Inventories and Prepaid Items

Inventories in governmental funds consist of expendable supplies held for consumption. The cost is recorded as an expenditure at the time individual inventory items are purchased. A comparison to market value is not considered necessary. Inventories in proprietary funds are valued at cost using the weighted average method. The County pays annual insurance premiums for various insurance policies it purchases during the year. The portion of these premiums that covers future periods are recorded as prepaid insurance. The County entered into a 25-year land lease with Washington State Military Department in 2008. The new Coroner Facility was constructed on the leased property. Upon execution of the contract, the entire cost of the lease was paid to the lessor. Prepaid rent is being expensed annually over the life of the lease.

6. Restricted Assets and Liabilities

Certain proceeds of the County’s enterprise fund revenue bonds, capital project funds, and debt service funds as well as certain resources set aside for their repayment, are classified as restricted assets on the statement of net position because they are maintained in separate funds and their use is limited by applicable bond covenants. They are mainly resources for construction and debt service.

7. Capital Assets (See Note 6, Capital Assets)

Capital assets include property, plant, equipment, and infrastructure assets (e.g. roads, bridges, sidewalks, and similar items), and are reported in applicable governmental or business-type activities columns in the government-wide financial statements. The County defines capital assets as items with an initial, individual cost of more than $5,000 for capital assets and $25,000 for infrastructure assets (amounts not rounded) and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. Costs for additions and improvements to capital assets are capitalized when they increase the effectiveness or efficiency of the asset. The costs for normal maintenance and repairs are not capitalized.


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42

Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constructed. The total interest expense incurred by the County during the current fiscal year is $2,232,148. Of this amount, $47,705 was included as part of the cost of capital assets under construction in connection sewer projects and $7,625 was capitalized as part of the cost of a project that was completed during 2012. Property, plant and equipment of Kitsap County are depreciated using the straight-line method over the following estimated useful lives:

Assets YearsBuildings 20 - 45Other Improvements 20 - 45Road System 7 - 25Bridges 40Sidewalks 30Machinery 6 - 12Pipes 50Sheriff Vehicles 6Non Sheriff Vehicles 6 - 10Office Equipment 10Computer Equipment 4 - 6Trucks and Trailers 7 - 15

8. Compensated Absences

Compensated absences are absences for which employees will be paid, such as vacation and sick leave. All vacation and sick pay is accrued when incurred in the government-wide, proprietary, and fiduciary fund financial statements. Vacation pay, which may be accumulated up to 45 days (360 hours), is payable upon resignation, retirement or death.

9. Other Accrued Liabilities These accounts consist of accrued wages and accrued employee benefits.

10. Long-Term Debt (See Note 10, Long Term Debt)

11. Unearned Revenues

This account includes amounts recognized as receivables but not revenues in governmental funds because the revenue recognition criteria have not been met.


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43

12. Fund Balance Classification

The County implemented GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, in 2011. Fund balance amounts for governmental funds have been reclassified in accordance with GASB Statement No. 54. As a result, amounts previously reported as reserved and unreserved are now reported as nonspendable, restricted, committed, assigned or unassigned. The County uses restricted resources first, then unrestricted resources as needed, when both restricted and unrestricted resources are available for use. When expenditures are incurred that can be paid from unrestricted resources, the County uses committed fund balance first, then assigned fund balance, then unassigned fund balance.

Nonspendable Fund Balance includes items that cannot be spent because the related assets are not in spendable form or must be maintained intact. This includes nonspendable resources such as advances and prepaid amounts in the general fund and the long-term portion of notes receivable in a debt service fund.

Restricted Fund Balance represents resources that have constraints placed upon their use either by external parties or imposed by law through a constitutional provision or enabling legislation.

Committed Fund Balance includes amounts that can be used only for specific

purposes pursuant to constraints imposed by a formal action of the Kitsap County Board of Commissioners, the County’s highest level of decision making authority. This formal action is the passage of law by the Board of County Commissioners, creating, modifying, or rescinding an appropriation.

Assigned Fund Balance represents amounts that are constrained by the

County’s intent to be used for specific purposes, but are neither restricted nor committed. Use of assigned fund balance may be established by the Board of County Commissioners or an official designated by the Board, for this purpose. The County had no Assigned Fund Balance in 2012.

Unassigned fund balance is the residual amount of the General Fund not

included in the four categories described above. Any deficit fund balances within governmental fund types are also reported as unassigned.

When the County implemented GASB 54 in 2011, the fund balances of all special revenue funds were analyzed, and it was determined that thirteen funds previously classified as special revenue funds did not meet the new definition. The fund balances of these funds were reported as unassigned and included in the General Fund’s fund balance.


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44

As a result of 2012 analysis of the County’s special revenue funds, thirteen funds did not meet the meet the special revenue fund definition of GASB 54 and their fund balances were reported as unassigned fund balance in the General Fund. The following shows the composition of the General Fund’s fund balance as of December 31, 2012:

Unassigned Total

Funds Fund Balance Fund BalanceGeneral Fund (prior to inclusion of other funds) 14,802,044$ 15,230,661$

Disqualified fundsHuman Resources Board 66,270 66,270 Special Purpose Path 72,754 72,754 1% for Art Program 50,953 50,953 Cumulative Reserve Fund 2,100,863 2,100,863 Drug Forfeiture Enforcement 41,711 41,711 Wetland Mitigation 39,053 39,053 Bucklin Ridge Park 1,217 1,217 Clear Creek Education 2 2 Kingston Commuter Parking 38,866 38,866 Kitsap County Grants 54 54 Indianola Forest 270,644 270,644 McCormick Village Traffic 382,534 382,534 McCormick Village Park 165,544 165,544

General Fund (after inclusion of other funds) 18,032,509$ 18,461,126$ The composition of the fund balances of the County’s governmental funds for the fiscal year ended December 31, 2012 is presented on the following pages:

Kitsap County, WashingtonNotes to Financial Statements

December 31, 2012

MentalCounty Real Estate Health

General Roads Excise Tax MedicaidNonspendable:

Advances 180,000$ Prepaid Items 248,617 Note Receivable

Total Nonspendable 428,617 Restricted:

Transportation - General Government 2,493,387 Health & Human Services 1,685,866 Public SafetyJudicial ServicesPhysical EnvironmentCulture & RecreationEconomic Environment - Debt service

Total Restricted - - 2,493,387 1,685,866 Committed:

Transportation 30,896,117 General Government Public SafetyPhysical EnvironmentCulture & RecreationEconomic Environment

Total Committed - 30,896,117 - - Unassigned: 18,032,509

Total Fund Balance 18,461,125$ 30,896,117$ 2,493,387$ 1,685,866$

45


December 31, 2012

Auditor's Emergency Law KPREP Election Document

Cencom Services Library Fund Reserve Preservation

116,628 375,039

2,554,580 38,245 168,689

2,554,580 - 168,689 38,245 116,628 375,039

- - - - - - (47,673)

2,554,580$ (47,673)$ 168,689$ 38,245$ 116,628$ 375,039$

46


December 31, 2012

Boating Noxious Housing Westnet Safety Weed

Affordability Fund Program ControlNonspendable:

AdvancesPrepaid ItemsNote Receivable

Total NonspendableRestricted:

TransportationGeneral Government 2,447,797 Health & Human ServicesPublic Safety 476,741 208,446 Judicial ServicesPhysical Environment 222,842 Culture & RecreationEconomic EnvironmentDebt service

Total Restricted 2,447,797 476,741 208,446 222,842 Committed:

TransportationGeneral GovernmentPublic Safety 359,646 Physical EnvironmentCulture & RecreationEconomic Environment

Total Committed - 359,646 - - Unassigned:

Total Fund Balance 2,447,797$ 836,387$ 208,446$ 222,842$

47


December 31, 2012

Treasurer's Electronic Veterans Expert Conservation CommunityM&O Technology Relief Witness Futures Service

892,505 180,197 230,716

35,416

1,011,709

892,505 180,197 230,716 35,416 1,011,709 -

78,133

- - - - - 78,133

892,505$ 180,197$ 230,716$ 35,416$ 1,011,709$ 78,133$

48


December 31, 2012

County County Prisoner SIUStadium Fair Commissary Revenue

Nonspendable:AdvancesPrepaid ItemsNote Receivable


TransportationGeneral GovernmentHealth & Human ServicesPublic Safety 55,176 549,873 Judicial ServicesPhysical EnvironmentCulture & Recreation 108,273 Economic EnvironmentDebt service

Total Restricted 108,273 - 55,176 549,873 Committed:

TransportationGeneral GovernmentPublic SafetyPhysical EnvironmentCulture & Recreation 46,900 Economic Environment

Total Committed - 46,900 - - Unassigned:

Total Fund Balance 108,273$ 46,900$ 55,176$ 549,873$

49


December 31, 2012

Kitsap Anti- Family Trial Public PoolingS.A.I.V.S Profiteering Court Court Defense Fees

37,351 9,832 383,250

65,502 187,944 138,076

37,351 9,832 65,502 187,944 138,076 383,250

- - - - - -

37,351$ 9,832$ 65,502$ 187,944$ 138,076$ 383,250$

50


December 31, 2012

GMA Trans.GMA Park Impact Fee County Parks Pt No Pt

Impact Fees Central Kitsap Acq & Dev LighthouseNonspendable:



Transportation 7,513 General GovernmentHealth & Human ServicesPublic SafetyJudicial ServicesPhysical EnvironmentCulture & Recreation 75,186 48,346 Economic EnvironmentDebt service

Total Restricted 75,186 7,513 - 48,346 Committed:

TransportationGeneral GovernmentPublic SafetyPhysical EnvironmentCulture & Recreation 381,484 Economic Environment

Total Committed - - 381,484 - Unassigned:


51


December 31, 2012

Crime Regional Recovery Dispute CDBG HOMEPrevention Septic Loan Center Resolution Entitlement Entitlement

1,659,214 10,958

97

7,261 18,125

- 97 1,659,214 10,958 7,261 18,125

84,112

84,112 - - - - -

84,112$ 97$ 1,659,214$ 10,958$ 7,261$ 18,125$

52


December 31, 2012

Service Area 1Kitsap Community Jail & Road

Abatement Development Juvenile ImpactNonspendable:



Transportation 107,663 General GovernmentHealth & Human ServicesPublic Safety 865,650 Judicial ServicesPhysical Environment - Culture & RecreationEconomic EnvironmentDebt service

Total Restricted - - 865,650 107,663 Committed:

TransportationGeneral GovernmentPublic SafetyPhysical Environment 145,725 Culture & RecreationEconomic Environment 18,497

Total Committed 145,725 18,497 - - Unassigned: -


53


December 31, 2012

Service Area 2 Service Area 3 Service Area 4 Regional Road Road Road Service PEG Mental

Impact Impact Impact Area Roads Fund Health

221,156 20,577 126,506 207,220

1,200,352

221,156 20,577 126,506 207,220 - 1,200,352

129,649

- - - - 129,649 -

221,156$ 20,577$ 126,506$ 207,220$ 129,649$ 1,200,352$

54


December 31, 2012

Youth Services/ MentalDevelopmental Juvenile Substance Health

Disabilities Services Abuse Non-MedicaidNonspendable:



TransportationGeneral GovernmentHealth & Human Services 1,242,569 268,314 835,416 Public Safety 9,119 Judicial ServicesPhysical EnvironmentCulture & RecreationEconomic EnvironmentDebt service

Total Restricted 1,242,569 9,119 268,314 835,416 Committed:

TransportationGeneral GovernmentPublic SafetyPhysical EnvironmentCulture & RecreationEconomic Environment

Total Committed - - - - Unassigned:

Total Fund Balance 1,242,569$ 9,119$ 268,314$ 835,416$

55


December 31, 2012

Commute Area EmploymentTrip Agency On & ARRA Debt

Reduction Aging Training KRCC EECBG Service

9,260,000 9,260,000

-

593,168 124,082

31,421

1,254,252 - 593,168 124,082 - 31,421 1,254,252

108,922

84,810 108,922 - - 84,810 - -

108,922$ 593,168$ 124,082$ 84,810$ 31,421$ 10,514,252$

56


December 31, 2012

CapitalProjects

Nonspendable:AdvancesPrepaid ItemsNote Receivable


Transportation 63,558 General Government 1,763 Health & Human ServicesPublic Safety 41,742 Judicial ServicesPhysical Environment 797,215 Culture & Recreation 2,263,453 Economic Environment - Debt service

Total Restricted 3,167,731 Committed:

TransportationGeneral GovernmentPublic SafetyPhysical EnvironmentCulture & RecreationEconomic Environment

Total Committed - Unassigned:

Total Fund Balance 3,167,731$

57


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58

13. Service Concession Arrangements The County implemented GASB Statement No. 60, Accounting and Financial Reporting for Service Concession Arrangements, in 2012. See Note 17, Service Concession Arrangements for more information. 14. Deferred Outflows, Deferred Inflows and Net Position The County implemented GASB Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position in 2012. See Note 20, Other Note Disclosures, A. Accounting and Reporting Changes for more information.

NOTE 2. RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS A. Explanation of Certain Differences Between the Governmental Funds Balance Sheet

and the Government-Wide Statement of Net Position The governmental funds’ balance sheet includes reconciliation between fund balance - total governmental funds and net position - governmental activities as reported in the government-wide statement of net position.

B. Explanation of Certain Differences Between the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances and the Government-Wide Statement of Activities The governmental funds’ statement of revenues, expenditures, and changes in fund balances includes reconciliation between net changes in fund balances - total governmental funds and changes in net position of governmental activities as reported in the government-wide statement of activities. One element of that reconciliation explains, “Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense.”

NOTE 3. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY There have been no material violations of finance-related legal or contractual provisions.


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NOTE 4. DEPOSITS AND INVESTMENTS The County’s deposits and certificates of deposit are entirely covered by federal depository insurance (FDIC) or by collateral held in a multiple financial institution collateral pool administered by the Washington Public Deposit Protection Commission (PDPC). As allowed by the state statute, all investments of the County’s funds are obligations of the U.S. Government, U.S. agency issues, the Washington State Local Government Investment Pool (LGIP), certificates of deposit, municipal obligations or money market deposits with Washington state banks and savings and loan institutions. All temporary investments are stated at fair value. Other property and investments are shown on the statement of net position at cost.

All securities purchased by the County are held by a third-party custody provider in the County’s name. In April, 2012, that custody provider became Bank of New York Mellon. At year-end, the County held the following investment balances. The credit exposure as a percentage of total investments is listed. Included are floating rate note securities that adjust weekly, monthly or quarterly to rates resembling current market. As of December 31, 2012, the County had the following investments:

Investment Type Rating

Weighted Average

Maturities %Amortized

Cost

Fair Value of County's

Investments

Fair Value of Investments

Held by County as Agent for

Other Local Governments

Total Fair Value

FHLB AAA/AA+ 2.58 13.4% 53.23$ 25.23$ 28.46$ 53.69$ FFCB AAA/AA+ 2.78 8.8% 35.02$ 16.46$ 18.57$ 35.03$ FHLMC AAA/AA+ 2.45 12.2% 48.28$ 22.76$ 25.66$ 48.42$ FNMA AAA/AA+ 2.56 17.9% 71.12$ 33.59$ 37.88$ 71.47$ Money Mkt Svgs NR 0.50 4.2% 16.48$ 7.75$ 8.73$ 16.48$ WA ST LGIP NR 0.50 35.7% 141.52$ 66.51$ 75.01$ 141.52$ Certificate of Deposit NR 0.50 1.3% 5.00$ 2.35$ 2.65$ 5.00$ Municipal Securities A1* 1.61 6.6% 26.12$ 12.31$ 13.89$ 26.20$

Years 100% 396.77$ 186.97$ 210.84$ 397.81$ Both Cost and Fair Value include accrued interest of $0.96; amortized cost and total fairvalue stated in millions.

The portfolio contains a variety of municipal issuers within the State of Washington. The rating on each issue is at least A1 by Moody’s and if rated by S&P is at least A+ or better. Interest Rate Risk. In accordance with its investment policy, the government manages it’s exposure to declines in fair values by limiting the final maturity of its investments to less than five years.


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Credit Risk. It is the government’s policy to limit its investment types to the top rated by nationally recognized statistical rating organizations, the Washington State Investment Pool and money market accounts either covered by the FDIC or by collateral held in a multiple financial institution collateral pool administered by the Washington Public Deposit Protection Commission. The County did not hold any mortgage-backed securities or commercial paper of any type. Custodial Credit Risk is the risk that in the event of a failure of the counterparty to complete an investment transaction the County would not be able to recover the value of the investment or collateral securities. County policy dictates that all investment instruments other than non-negotiable certificates of deposit, bank money market deposits, and funds placed with Washington LGIP be transacted on a delivery-versus-payment basis. The County does not have custodial risk as all investments and deposits are either insured or held by a third party custody provider in the County’s name. The Washington State LGIP is an unrated 2a-7 like pool, as defined by GASB 31, and therefore is not subject to interest rate risk, as the weighted average maturity of the portfolio will not exceed 90 days. The balance in the LGIP is not subject to custodial risk since all investments or deposits held by the LGIP are either insured or held by a third party custody provider in the LGIP’s name. The County may withdraw its participation for same or next day settlement. All cash, certificates of deposits, and money market accounts are entirely covered by federal deposit insurance or the collateralization program administered by the Washington Public Deposit Protection Commission.

NOTE 5. PROPERTY TAX The County treasurer acts as an agent to collect property tax levied in the County for all taxing authorities.

January 1 Tax is levied and becomes an enforceable lien againstproperties.

February 14 Tax bills are mailed.

April 30 First of two equal installment payments is due.

May 31 Assessed value of property is established for next year'slevy at 100 percent of market value.

October 31 Second installment is due.

Property Tax Calendar

Property tax is recorded as a receivable and revenue when levied. Property tax collected in advance of the fiscal year to which it applies is recorded as a deferred inflow and recognized as revenue of the period to which it applies. The balance of taxes receivable includes related interest and penalties. No allowance for uncollectible taxes


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61

is established because delinquent taxes are considered fully collectible. Prior year tax levies were recorded using the same principal, and delinquent taxes are evaluated annually. The County’s regular levy for the year 2012 was $1.0936 per $1,000 on an assessed valuation of $27,132,483,757 for a total regular levy of $29,698,685. The County’s road levy for the year 2012 was $1.5206 per $1,000 on an assessed valuation of $16,760,880,790 for total road levy of $25,519,857. Washington State Constitution and Washington State law, RCW 84.55.010, limit the rate. Assessments are levied against properties located within sewer utility local improvement districts and are recorded as Assessments Receivable and Contributed Capital when assessment rolls are issued. The proceeds are restricted for payment of revenue bond principal and interest. Special assessments for road improvement districts are recorded as Assessments Receivable and Deferred Revenue when assessment rolls are issued. Special assessments are recognized as revenue only to the extent those individual installments are considered current assets. The proceeds are restricted for payment of special assessment bond principal and interest.


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NOTE 6. CAPITAL ASSETS Capital assets activity for the year ended December 31, 2012 was as follows:

Beginning EndingBalance Balance

Governmental activities 1/1/2012 Increases Decreases 12/31/2012

Capital assets, not being depreciated:

Land 58,439,816$ 1,956,210$ 1,976,993$ 58,419,033$ Land - Infrastructure 67,160,034 2,950,310 659,115 69,451,228 Construction in progress 23,745,265 6,407,969 19,300,694 10,852,540

Total capital assets, notbeing depreciated 149,345,114$ 11,314,488$ 21,936,802$ 138,722,801$

Capital assets, beingdepreciated:

Buildings 125,746,385$ 3,534,169$ 86,059$ 129,194,495$ Building Improvements 28,769,414 4,708,817 10,651 33,467,580 Machinery and equipment 54,351,248 4,367,974 1,670,689 57,048,533 Infrastructure 405,742,721 9,630,908 2,212,658 413,160,971

Total capital assetsbeing depreciated 614,609,767$ 22,241,868$ 3,980,056$ 632,871,580$

Less accumulated depreciationfor:

Buildings 33,807,294$ 2,880,446$ 36,687,740$ Building Improvements 11,614,520 1,440,612 6,959 13,048,173 Machinery and equipment 34,807,825 4,373,631 1,121,789 38,059,667 Infrastructure 274,546,409 11,365,528 1,790,276 284,121,661

Total accumulateddepreciation 354,776,049$ 20,060,216$ 2,919,024$ 371,917,241$

Total capital assets,being depreciated, net 259,833,718$ 2,181,652$ 1,061,032$ 260,954,339$

Governmental activitiescapital assets, net 409,178,832$ 13,496,140$ 22,997,833$ 399,677,139$


December 31, 2012

63

Beginning EndingBalance Balance

Business-type activities 1/1/2012 Increase Decrease 12/31/2012

Capital assets, not beingdepreciated

Land 2,465,721$ 506,580$ 83,120$ 2,889,181$ Construction in progress 25,354,837 6,615,511 17,128,682 14,841,666

Total capital assets, notbeing depreciated 27,820,558$ 7,122,091$ 17,211,802$ 17,730,847$

Capital assets, beingdepreciated

Buildings 46,309,798$ 9,991,738$ -$ 56,301,536$ Building Improvements 76,899,482 6,511,081 - 83,410,563 Equipment & Machinery 7,466,180 2,143,554 - 9,609,734

Total capital assetsbeing depreciated 130,675,460$ 18,646,373$ -$ 149,321,833$

Less accumulated depreciationfor:

Buildings 29,531,255$ 1,730,284$ -$ 31,261,539$ Building Improvements 35,331,776 2,486,306 - 37,818,082 Machinery and equipment 5,885,143 453,360 - 6,338,503

Total accumulateddepreciation 70,748,174$ 4,669,950$ -$ 75,418,124$

Total business-type assets,being depreciated, net 59,927,286$ 13,976,423$ -$ 73,903,709$

Business-type activitiescapital assets, net 87,747,844$ 21,098,514$ 17,211,802$ 91,634,556$


December 31, 2012

64

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

General government 1,718,560$ Judicial Services 18,113 Public safety 4,024,858 Transportation 12,841,506 Health & Human service 140,391 Economic environment 3,920 Culture & recreation 1,312,868

Total Depreciation - Governmental Activities 20,060,216$

Utilities 4,669,950$

Total Depreciation - Business Type Activities 4,669,950$

Governmental Activities:

Business-Type Activities:

Construction commitments The County had no active construction projects as of December 31, 2012.

NOTE 7. PENSION PLANS Substantially all County full-time and qualifying part-time employees participate in one of the following statewide retirement systems administered by the Washington State Department of Retirement Systems, under cost-sharing multiple-employer public employee defined benefit retirement plans. The Department of Retirement Systems (DRS), a department within the primary government of the State of Washington, issues a publicly available comprehensive annual financial report (CAFR) that includes financial statements and required supplementary information for each plan. The DRS CAFR may be obtained by writing to: Department of Retirement Systems, Communications Unit, P.O. Box 48380, Olympia, WA 98504-8380; or it may be downloaded from the DRS website at www.drs.wa.gov. The following disclosures are made pursuant to the GASB Statement 27, Accounting for Pensions by State and Local Government Employers and the GASB Statement 50, Pension Disclosures, an Amendment of GASB Statements No. 25 and No. 27. Public Employees’ Retirement System (PERS) Plans 1, 2, and 3 Plan Description The Legislature established PERS in 1947. Membership in the system includes: elected officials; state employees; employees of the Supreme, Appeals, and Superior courts;


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employees of legislative committees; community and technical colleges, college and university employees not participating in higher education retirement programs; employees of district and municipal courts; and employees of local governments. Approximately 50 percent of PERS salaries are accounted for by state employment. PERS retirement benefit provisions are established in Chapters 41.34 and 41.40 RCW and may be amended only by the State Legislature. PERS is a cost-sharing multiple-employer retirement system comprised of three separate plans for membership purposes: Plans 1 and 2 are defined benefit plans and Plan 3 is a defined benefit plan with a defined contribution component. PERS members who joined the system by September 30, 1977 are Plan 1 members. Those who joined on or after October 1, 1977, and by either February 28, 2002 for state and higher education employees, or August 31, 2002 for local government employees, are Plan 2 members unless they exercised an option to transfer their membership to Plan 3. PERS members joining the system on or after March 1, 2002 for state and higher education employees, or September 1, 2002 for local government employees have the irrevocable option of choosing membership in either PERS Plan 2 or Plan 3. The option must be exercised within 90 days of employment. Employees who fail to choose within 90 days default to Plan 3. Notwithstanding, PERS Plan 2 and Plan 3 members may opt out of plan membership if terminally ill, with less than five years to live. PERS is comprised of and reported as three separate plans for accounting purposes: Plan 1, Plan 2/3, and Plan 3. Plan 1 accounts for the defined benefits of Plan 1 members. Plan 2/3 accounts for the defined benefits of Plan 2 members and the defined benefit portion of benefits for Plan 3 members. Plan 3 accounts for the defined contribution portion of benefits for Plan 3 members. Although members can only be a member of either Plan 2 or Plan 3, the defined benefit portions of Plan 2 and Plan 3 are accounted for in the same pension trust fund. All assets of this Plan 2/3 defined benefit plan may legally be used to pay the defined benefits of any of the Plan 2 or Plan 3 members or beneficiaries, as defined by the terms of the plan. Therefore, Plan 2/3 is considered to be a single plan for accounting purposes. PERS Plan 1 and Plan 2 retirement benefits are financed from a combination of investment earnings and employer and employee contributions. Employee contributions to the PERS Plan 1 and Plan 2 defined benefit plans accrue interest at a rate specified by the Director of DRS. During DRS’ Fiscal Year 2012, the rate was five and one-half percent compounded quarterly. Members in PERS Plan 1 and Plan 2 can elect to withdraw total employee contributions and interest thereon upon separation from PERS-covered employment. PERS Plan 1 members are vested after the completion of five years of eligible service. PERS Plan 1 members are eligible for retirement after 30 years of service, or at the age of 60 with five years of service, or at the age of 55 with 25 years of service. The monthly benefit is 2 percent of the average final compensation (AFC) per year of service, but the


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benefit may not exceed 60 percent of the AFC. The AFC is the monthly average of the 24 consecutive highest-paid service credit months. The monthly benefit is subject to a minimum for retirees who have 25 years of service and have been retired 20 years, or who have 20 years of service and have been retired 25 years. If a survivor option is chosen, the benefit is reduced. Plan 1 members retiring from inactive status prior to the age of 65 may also receive actuarially reduced benefits. Plan 1 members may elect to receive an optional COLA that provides an automatic annual adjustment based on the Consumer Price Index. The adjustment is capped at 3 percent annually. To offset the cost of this annual adjustment, the benefit is reduced. PERS Plan 1 provides duty and non-duty disability benefits. Duty disability retirement benefits for disablement prior to the age of 60 consist of a temporary life annuity. The benefit amount is $350 a month, or two-thirds of the monthly AFC, whichever is less. The benefit is reduced by any workers’ compensation benefit and is payable as long as the member remains disabled or until the member attains the age of 60, at which time the benefit is converted to the member’s service retirement amount. A member with five years of covered employment is eligible for non-duty disability retirement. Prior to the age of 55, the benefit amount is 2 percent of the AFC for each year of service reduced by 2 percent for each year that the member’s age is less than 55. The total benefit is limited to 60 percent of the AFC and is actuarially reduced to reflect the choice of a survivor option. Plan 1 members may elect to receive an optional COLA amount (based on the Consumer Price Index), capped at 3 percent annually. To offset the cost of this annual adjustment, the benefit is reduced. PERS Plan 1 members can receive credit for military service while actively serving in the military if such credit makes them eligible to retire. Members can also purchase up to 24 months of service credit lost because of an on-the-job injury. The survivor of a PERS Plan 1 member who dies after having earned ten years of service credit has the option, upon the member’s death, of either a monthly survivor benefit or the lump sum of contributions plus interest. PERS Plan 2 members are vested after the completion of five years of eligible service. Plan 2 members are eligible for normal retirement at the age of 65 with five years of service. The monthly benefit is 2 percent of the AFC per year of service. The AFC is the monthly average of the 60 consecutive highest-paid service months. There is no cap on years of service credit; and a cost-of-living allowance is granted (based on the Consumer Price Index), capped at 3 percent annually. PERS Plan 2 members who have at least 20 years of service credit and are 55 years of age or older are eligible for early retirement with a reduced benefit. The benefit is reduced by an early retirement factor (ERF) that varies according to age, for each year before age 65. PERS Plan 2 members who have 30 or more years of service credit and are at least 55 years old can retire under one of two provisions:

With a benefit that is reduced by 3 percent for each year before age 65; or.


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With a benefit that has a smaller (or no) reduction (depending on age) that imposes stricter return-to-work rules.

PERS Plan 2 retirement benefits are also actuarially reduced to reflect the choice, if made, of a survivor option. The surviving spouse or eligible child(ren) of a PERS Plan 2 member who dies after having earned ten years of service credit has the option of either a monthly benefit or a lump sum payment of the member’s contributions plus interest. PERS Plan 3 has a dual benefit structure. Employer contributions finance a defined benefit component and member contributions finance a defined contribution component. As established by Chapter 41.34 RCW, employee contribution rates to the defined contribution component range from 5 percent to 15 percent of salaries, based on member choice. There are currently no requirements for employer contributions to the defined contribution component of PERS Plan 3. PERS Plan 3 defined contribution retirement benefits are dependent upon the results of investment activities. Members may elect to self-direct the investment of their contributions. Any expenses incurred in conjunction with self-directed investments are paid by members. Absent a member’s self-direction, PERS Plan 3 investments are made in the same portfolio as that of the PERS 2/3 defined benefit plan. For DRS’ fiscal year 2012, PERS Plan 3 employee contributions were $95.2 million, and plan refunds paid out were $66.2 million. The defined benefit portion of PERS Plan 3 provides members a monthly benefit that is 1 percent of the AFC per year of service. The AFC is the monthly average of the 60 consecutive highest-paid service months. There is no cap on years of service credit, and Plan 3 provides the same cost-of-living allowance as Plan 2. Effective June 7, 2006, PERS Plan 3 members are vested in the defined benefit portion of their plan after ten years of service; or after five years of service, if twelve months of that service are earned after age 44; or after five service credit years earned in PERS Plan 2 by June 1, 2003. Plan 3 members are immediately vested in the defined contribution portion of their plan. Vested Plan 3 members are eligible for normal retirement at age 65, or they may retire early with the following conditions and benefits:

If they have at least ten service credit years and are 55 years old, the benefit is reduced by an ERF that varies with age, for each year before age 65.

If they have 30 service credit years and are at least 55 years old, they have the choice of a benefit that is reduced by 3 percent for each year before age 65; or a benefit with a smaller (or no) reduction factor (depending on age) that imposes stricter return-to-work rules.

PERS Plan 3 benefit retirement benefits are also actuarially reduced to reflect the choice, if made, of a survivor option.


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PERS Plan 2 and Plan 3 provide disability benefits. There is no minimum amount of service credit required for eligibility. The Plan 2 monthly benefit amount is 2 percent of the AFC per year of service. For Plan 3, the monthly benefit amount is 1 percent of the AFC per year of service. These disability benefit amounts are actuarially reduced for each year that the member’s age is less than 65, and to reflect the choice of a survivor option. There is no cap on years of service credit, and a cost-of-living allowance is granted (based on the Consumer Price Index) capped at 3 percent annually. PERS Plan 2 and Plan 3 members may have up to ten years of interruptive military service credit; five years at no cost and five years that may be purchased by paying the required contributions. PERS Plan 2 and Plan 3 members who become totally incapacitated for continued employment while serving the uniformed services, or a surviving spouse or eligible child(ren), may request interruptive military service credit. PERS Plan 2 and Plan 3 members can purchase up to 24 months of service credit lost because of an on-the-job injury. PERS members may also purchase up to five years of additional service credit once eligible for retirement. This credit can only be purchased at the time of retirement and can be used only to provide the member with a monthly annuity that is paid in addition to the member’s retirement benefit. Beneficiaries of a PERS Plan 2 or Plan 3 member with ten years of service who is killed in the course of employment receive retirement benefits without actuarial reduction. This provision applies to any member killed in the course of employment, on or after June 10, 2004, if found eligible by the Director of the Department of Labor and Industries. A one-time duty-related death benefit is provided to the estate (or duly designated nominee) of a PERS member who dies in the line of service as a result of injuries sustained in the course of employment, or if the death resulted from an occupational disease or infection that arose naturally and proximately out of the member’s covered employment, if found eligible by the Department of Labor and Industries. From January 1, 2007 through December 31, 2007, judicial members of PERS were given the choice to elect participation in the Judicial Benefit Multiplier (JBM) Program enacted in 2006. Justices and judges in PERS Plan 1 and Plan 2 were able to make an irrevocable election to pay increased contributions that would fund a retirement benefit with a 3.5 percent multiplier. The benefit would be capped at 75 percent of AFC. Judges in PERS Plan 3 could elect a 1.6 percent of pay per year of service benefit, capped at 37.5 percent of AFC. Members who chose to participate would: accrue service credit at the higher multiplier beginning with the date of their election; be subject to the benefit cap of 75 percent of AFC; stop contributing to the Judicial Retirement Account (JRA); pay higher contributions; and be given the option to increase the multiplier on past judicial service. Members who did not choose to participate would: continue to accrue service credit at the regular multiplier; not be subject to a benefit cap; continue to participate in JRA, if


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applicable; continue to pay contributions at the regular PERS rate; and never be a participant in the JBM Program. Newly elected or appointed justices and judges who chose to become PERS members on or after January 1, 2007, or who had not previously opted into PERS membership, were required to participate in the JBM Program. Members required into the JBM program would: return to prior PERS Plan if membership had previously been established; be mandated into Plan 2 and not have a Plan 3 transfer choice, if a new PERS member; accrue the higher multiplier for all judicial service; not contribute to JRA; and not have the option to increase the multiplier for past judicial service. There are 1,184 participating employers in PERS. Membership in PERS consisted of the following as of the latest actuarial valuation date for the plans of June 30, 2011: Retirees and Beneficiaries Receiving Benefits 79,363Terminated Plan Members Entitled to But Not Yet Receiving Benefits 29,925Active Plan Members Vested 105,578Active Plan Members Non-vested 46,839Total 261,705

Funding Policy Each biennium, the state Pension Funding Council adopts PERS Plan 1 employer contribution rates, PERS Plan 2 employer and employee contribution rates, and PERS Plan 3 employer contribution rates. Employee contribution rates for Plan 1 are established by statute at 6 percent for state agencies and local government unit employees, and at 7.5 percent for state government elected officials. The employer and employee contribution rates for Plan 2 and the employer contribution rate for Plan 3 are developed by the Office of the State Actuary to fully fund Plan 2 and the defined benefit portion of Plan 3. Under PERS Plan 3, employer contributions finance the defined benefit portion of the plan and member contributions finance the defined contribution portion. The Plan 3 employee contribution rates range from 5 percent to 15 percent, based on member choice. Two of the options are graduated rates dependent on the employee’s age. As a result of the implementation of the Judicial Benefit Multiplier Program in January 2007, a second tier of employer and employee rates was developed to fund, along with investment earnings, the increased retirement benefits of those justices and judges that participate in the program. The methods used to determine the contribution requirements are established under state statute in accordance with Chapters 41.40 and 41.45 RCW. The required contribution rates expressed as a percentage of current-year covered payroll as of December 31, 2012, are as follows:


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Members Not Participating in JBM:

PERS Plan 1 PERS Plan 2 PERS Plan 3

Employer* 7.21%** 7.21%** 7.21%***

Employee 6.00%**** 4.64%**** *****

* The employer rates include the employer administrative expense fee currently set at 0.16%.

** The employer rate for state elected officials is 10.74% for Plan 1 and 7.21% for Plan 2 and Plan 3.

*** Plan 3 defined benefit portion only.

**** The employee rate for state elected officials is 7.50% for Plan 1 and 4.64% for Plan 2.

***** Variable from 5.0% minimum to 15.0% maximum based on rate selected by the PERS 3 member.

Members Participating in JBM:


Employer-State Agency* 9.71% 9.71% 9.71%**

Employer-Local Government* 7.21% 7.21% 7.21%**

Employee-State Agency 9.76% 9.10% 7.50%***

Employee-Local Government 12.26% 11.60% 7.50%***

* The employer rates include the employer administrative expense fee currently set at 0.16%.

** Plan 3 defined benefit portion only.

***Minimum rate.

Both Kitsap County and the employees made the required contributions. The County’s required contributions for the years ended December 31 were as follows:


2012 $ 142,413 $ 3,145,886 $ 694,608

2011 $ 127,928 $ 2,597,672 $ 555,682

2010 $ 133,163 $ 2,340,792 $ 522,077


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Law Enforcement Officers’ and Fire Fighters’ Retirement System (LEOFF) Plans 1 and 2 Plan Description LEOFF was established in 1970 by the Legislature. Membership includes all full-time, fully compensated, local law enforcement commissioned officers, firefighters and, as of July 24, 2005, emergency medical technicians. LEOFF membership is comprised primarily of non-state employees, with Department of Fish and Wildlife enforcement officers, who were first included prospectively effective July 27, 2003, being an exception. LEOFF retirement benefit provisions are established in Chapter 41.26 RCW and may be amended only by the State Legislature. LEOFF is a cost-sharing multiple-employer retirement system comprised of two separate defined benefit plans. LEOFF members who joined the system by September 30, 1977 are Plan 1 members. Those who joined on or after October 1, 1977 are Plan 2 members. Effective July 1, 2003, the LEOFF Plan 2 Retirement Board was established by Initiative 790 to provide governance of LEOFF Plan 2. The Board’s duties include adopting contribution rates and recommending policy changes to the Legislature. LEOFF retirement benefits are financed from a combination of investment earnings, employer and employee contributions, and a special funding situation in which the state pays through state legislative appropriations. Employee contributions to the LEOFF Plan 1 and Plan 2 defined benefit plans accrue interest at a rate specified by the Director of DRS. During DRS’ fiscal year 2012, the rate was five and one-half percent compounded quarterly. Members in LEOFF Plan 1 and Plan 2 can elect to withdraw total employee contributions and interest earnings upon separation from LEOFF-covered employment. LEOFF Plan 1 members are vested after the completion of five years of eligible service. Plan 1 members are eligible for retirement with five years of service at the age of 50. The benefit per year of service calculated as a percent of final average salary (FAS) is as follows:

Term of Service Percent of Final Average Salary

20 or more years 2.0% 10 but less than 20 years 1.5% 5 but less than 10 years 1.0%

The FAS is the basic monthly salary received at the time of retirement, provided a member has held the same position or rank for 12 months preceding the date of retirement. Otherwise, it is the average of the highest consecutive 24 months’ salary within the last 10 years of service. A cost-of-living allowance is granted (based on the Consumer Price Index).


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LEOFF Plan 1 provides death and disability benefits. Death benefits for survivors of Plan 1 members on active duty consist of the following: (1) If eligible spouse, 50 percent of the FAS, plus 5 percent of FAS for each eligible surviving child, with a limitation on the combined benefit of 60 percent of the FAS; or (2) If no eligible spouse, eligible children receive 30 percent of FAS for the first child plus 10 percent for each additional child, subject to a 60 percent limitation of FAS, divided equally. A one-time duty-related death benefit is provided to the estate (or duly designated nominee) of a LEOFF Plan 1 member who dies as a result of injuries or illness sustained in the course of employment, or if the death resulted from an occupational disease or infection that arose naturally and proximately out of the member’s covered employment, if found eligible by the Department of Labor and Industries. The LEOFF Plan 1 disability allowance is 50 percent of the FAS plus 5 percent for each child up to a maximum of 60 percent. Upon recovery from disability before the age of 50, a member is restored to service with full credit for service while disabled. Upon recovery after the age of 50, the benefit continues as the greater of the member’s disability benefit or service retirement benefit. LEOFF Plan 1 members may purchase up to five years of additional service credit once eligible for retirement. This credit can only be purchased at the time of retirement and can be used only to provide the member with a monthly annuity that is paid in addition to the member’s benefit. LEOFF Plan 2 members are vested after the completion of five years of eligible service. Plan 2 members are eligible for retirement at the age of 53 with five years of service, or at age 50 with 20 years of service. Plan 2 members receive a benefit of 2 percent of the FAS per year of service (the FAS is based on the highest consecutive 60 months), actuarially reduced to reflect the choice of a survivor option. Members who retire prior to the age of 53 receive reduced benefits. If the member has at least 20 years of service and is age 50, the reduction is 3 percent for each year prior to age 53. Otherwise, the benefits are actuarially reduced for each year prior to age 53. A cost-of-living allowance is granted (based on the Consumer Price Index), capped at 3 percent annually. LEOFF Plan 2 provides disability benefits. There is no minimum amount of service credit required for eligibility. The Plan 2 benefit amount is 2 percent of the FAS for each year of service. Benefits are reduced to reflect the choice of survivor option and for each year that the member’s age is less than 53, unless the disability is duty-related. If the member has at least 20 years of service and is age 50, the reduction is 3 percent for each year prior to age 53. A disability benefit equal to 70 percent of their FAS, subject to offsets for workers’ compensation and Social Security disability benefits received, is also available to those LEOFF Plan 2 members who are catastrophically disabled in the line of duty and incapable of future substantial gainful employment in any capacity. Effective June 2010, benefits to LEOFF Plan 2 members who are catastrophically disabled include payment of eligible health care insurance premiums.


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Members of LEOFF Plan 2 who leave service because of a line of duty disability are allowed to withdraw 150 percent of accumulated member contributions. This withdrawal benefit is not subject to federal income tax. Alternatively, members of LEOFF Plan 2 who leave service because of a line of duty disability may be eligible to receive a retirement benefit of at least 10 percent of FAS and 2 percent per year of service beyond five years. The first 10 percent of the FAS is not subject to federal income tax. LEOFF Plan 2 retirees may return to work in an eligible position covered by another retirement system, choose membership in that system and suspend their pension benefits, or not choose membership and continue receiving pension benefits without interruption. LEOFF Plan 2 members who apply for retirement may purchase up to five years of additional service credit. The cost of this credit is the actuarial equivalent of the resulting increase in the member’s benefit. LEOFF Plan 2 members can receive service credit for military service that interrupts employment. Additionally, LEOFF Plan 2 members who become totally incapacitated for continued employment while serving in the uniformed services, or a surviving spouse or eligible child(ren), may request interruptive military service credit. LEOFF Plan 2 members may also purchase up to 24 consecutive months of service credit for each period of temporary duty disability. Beneficiaries of a LEOFF Plan 2 member who is killed in the course of employment receive retirement benefits without actuarial reduction, if found eligible by the Director of the Department of Labor and Industries. Benefits to eligible surviving spouses and dependent children of LEOFF Plan 2 members killed in the course of employment include the payment of on-going health care insurance premiums paid to the Washington state Health Care Authority. A one-time duty-related death benefit is provided to the estate (or duly designated nominee) of a LEOFF Plan 2 member who dies as a result of injuries or illness sustained in the course of employment, or if the death resulted from an occupational disease or infection that arose naturally and proximately out of the member’s covered employment, if found eligible by the Department of Labor and Industries. Legislation passed in 2009 provides to the Washington-state-registered domestic partners of LEOFF Plan 2 members the same treatment as married spouses, to the extent that the treatment is not in conflict with federal laws. There are 373 participating employers in LEOFF. Membership in LEOFF consisted of the following as of the latest actuarial valuation date for the plans of June 30, 2011: Retirees and Beneficiaries Receiving Benefits 9,947 Terminated Plan Members Entitled to But Not Yet Receiving Benefits 656 Active Plan Members Vested 13,942 Active Plan Members Nonvested 3,113 Total 27,658


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Funding Policy Employer and employee contribution rates are developed by the Office of the State Actuary to fully fund the plans. Starting on July 1, 2000, Plan 1 employers and employees contribute zero percent as long as the plan remains fully funded. Plan 2 employers and employees are required to pay at the level adopted by the LEOFF Plan 2 Retirement Board. The Legislature, by means of a special funding arrangement, appropriates money from the state General Fund to supplement the current service liability and fund the prior service costs of Plan 2 in accordance with the recommendations of the Pension Funding Council and the LEOFF Plan 2 Retirement Board. However, this special funding situation is not mandated by the state constitution and this funding requirement could be returned to the employers by a change of statute. For DRS’ fiscal year 2012, the state contributed $52.8 million to LEOFF Plan 2. The methods used to determine the contribution requirements are established under state statute in accordance with Chapters 41.26 and 41.45 RCW. The required contribution rates expressed as a percentage of current-year covered payroll, as of December 31, 2012, are as follows:

LEOFF Plan 1 LEOFF Plan 2

Employer* 0.16% 5.24%**

Employee 0.00% 8.46%

State N/A 3.38% *The employer rates include the employer administrative expense fee currently set at 0.16%.

** The employer rate for ports and universities is 8.62%.

Both Kitsap County and the employees made the required contributions. The County’s required contributions for the years ended December 31 were as follows: LEOFF Plan 1 LEOFF Plan 2

2012 $ 0 $ 474,611 2011 $ 111 $ 456,254

2010 $ 157 $ 480,094


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Public Safety Employees’ Retirement System (PSERS) Plan 2 Plan Description PSERS was created by the 2004 Legislature and became effective July 1, 2006. PSERS retirement benefit provisions have been established by Chapter 41.37 RCW and may be amended only by the State Legislature. PSERS is a cost-sharing multiple-employer retirement system comprised of a single defined benefit plan, PSERS Plan 2. PSERS membership includes:

Full-time employees hired by a covered employer before July 1, 2006, who met at least one of the PSERS eligibility criteria and elected membership during the period of July 1, 2006 to September 30, 2006; and

Full-time employees, hired on or after July 1, 2006 by a covered employer, that meet at least one of the PSERS eligibility criteria.

A covered employer is one that participates in PSERS. Covered employers include the following:

State of Washington agencies: Department of Corrections, Department of Natural Resources, Gambling Commission, Liquor Control Board, Parks and Recreation Commission, and Washington State Patrol;

Washington State counties; Washington State cities except for Seattle, Tacoma and Spokane; and Correctional entities formed by PSERS employers under the Interlocal

Cooperation Act. To be eligible for PSERS, an employee must work on a full-time basis and:

Have completed a certified criminal justice training course with authority to arrest, conduct criminal investigations, enforce the criminal laws of Washington and carry a firearm as part of the job; or

Have primary responsibility to ensure the custody and security of incarcerated or probationary individuals; or

Function as a limited authority Washington peace officer, as defined in RCW 10.93.020; or

Have primary responsibility to supervise eligible members who meet the above criteria.

PSERS retirement benefits are financed from a combination of investment earnings and employer and employee contributions. Employee contributions to the plan accrue interest at a rate specified by the Director of DRS. During DRS’ fiscal year 2012, the rate was five and one-half percent compounded quarterly. Members in PSERS Plan 2 can elect to withdraw total employee contributions and interest thereon upon separation from PSERS-covered employment. PSERS Plan 2 members are vested after completing five years of eligible service.


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PSERS members may retire with a monthly benefit of 2 percent of the average final compensation (AFC) at the age of 65 with five years of service, or at the age of 60 with at least 10 years of PSERS service credit, or at age 53 with 20 years of service. The AFC is the monthly average of the member’s 60 consecutive highest-paid service credit months. There is no cap on years of service credit; and a cost-of-living allowance is granted (based on the Consumer Price Index), capped at 3 percent annually. PSERS members who retire prior to the age of 60 receive reduced benefits. If retirement is at age 53 or older with at least 20 years of service, a 3 percent per year reduction for each year between the age at retirement and age 60 applies. PSERS Plan 2 provides disability benefits. There is no minimum amount of service credit required for eligibility. The monthly benefit is 2 percent of the AFC for each year of service. The AFC is based on the member’s 60 consecutive highest creditable months of service. Benefits are actuarially reduced for each year that the member’s age is less than 60 (with ten or more service credit years in PSERS), or less than 65 (with fewer than ten service credit years). There is no cap on years of service credit, and a cost-of-living allowance is granted (based on the Consumer Price Index), capped at 3 percent annually. PSERS Plan 2 members can receive service credit for military service that interrupts employment. Additionally, PSERS members who become totally incapacitated for continued employment while serving in the uniformed services, or a surviving spouse or eligible child(ren), may request interruptive military service credit. PSERS members may also purchase up to 24 consecutive months of service credit for each period of temporary duty disability. Beneficiaries of a PSERS Plan 2 member with ten years of service who is killed in the course of employment receive retirement benefits without actuarial reduction. This provision applies to any member killed in the course of employment, if found eligible by the Director of the Department of Labor and Industries. A one-time duty-related death benefit is provided to the estate (or duly designated nominee) of a PSERS member who dies as a result of injuries or illness sustained in the course of employment, or if the death resulted from an occupational disease or infection that arose naturally and proximately out of the member’s covered employment, if found eligible by the Department of Labor and Industries. There are 76 participating employers in PSERS. Membership in PSERS consisted of the following as of the latest actuarial valuation date for the plan of June 30, 2011: Retirees and Beneficiaries Receiving Benefits 15Terminated Plan Members Entitled to But Not Yet Receiving Benefits 1Active Plan Members Vested 167Active Plan Members Nonvested 4,020Total 4,203


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Funding Policy Each biennium, the state Pension Funding Council adopts Plan 2 employer and employee contribution rates. The employer and employee contribution rates for Plan 2 are developed by the Office of the State Actuary to fully fund Plan 2. The methods used to determine the contribution requirements are established under state statute in accordance with Chapters 41.37 and 41.45 RCW. The required contribution rates expressed as a percentage of current-year covered payroll, as of December 31, 2012, are as follows:

PSERS Plan 2

Employer* 8.87%

Employee 6.36% *The employer rate includes an employer administrative expense fee of 0.16%.

Both the County and the employees made the required contributions. The County’s required contributions for the years ended December 31 were as follows: PSERS Plan 2

2012 $ 346,727

2011 $ 332,799

2010 $ 313,450 NOTE 8. RISK MANAGEMENT The County is exposed to various risks of loss related to torts, theft, damage to, and destruction of assets, errors or omissions, injuries to employees, and natural disasters. Kitsap County uses its Risk Management Fund, an internal service fund, to finance and administer the County’s property/casualty and workers’ compensation self insurance programs. The County contracts with a Third Party Administrator to process medical and dental claims made against its workers’ compensation program. Unemployment risk is accounted for in the funds with loss experience as losses are incurred. RCW 48.62 authorizes the governing body of any governmental entity to individually or jointly self-insure risks, jointly purchase insurance or reinsurance, and to contract for risk management, claims, and administrative services. Kitsap County was a member of the Washington Counties Risk Pool until September 2010, when it made the determination to withdraw from the risk pool in order to have more control over decisions made with respect to risk management activities.


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The County purchases excess liability policies to insure its general, automobile and employment liability risks, including public officials’ errors and omissions. Kitsap County self-insures its general liability and workers’ compensation risk up to $500,000 per occurrence. General liability The County purchased an excess insurance policy with a $20,000,000 limit for liability protection and a $500,000 self-insured retention. The County is responsible for the first $500,000 of each claim and the insurer covers up to $20,000,000 per occurrence. The County has never had a claim in excess of the policy limits. This policy also covers auto liability, employment liability, and public officials’ liability. As of December 31, 2012 the County’s estimated total undiscounted outstanding liability for general liability is $6,085,972. Property insurance The County has a $50,000 per occurrence deductible and is insured for up to $50 million per occurrence through an independent insurance carrier. The earthquake coverage has a deductible of 2% of the total damage per occurrence with a $100,000 minimum and $1,000,000 maximum deductible. Crime/dishonesty insurance The employee crime/dishonesty policy has a $5,000 deductible and $1,000,000 in coverage. The County also purchases Scheduled Position Bonds, which provides certain elected officials with bond coverage as required by the State statue. Workers compensation The County assumes risk for workers’ compensation as allowed by the State statute up to $500,000 per occurrence. The County purchases an excess workers’ compensation policy that provides statutory limits coverage. Interfund premiums are based on each department’s loss experience and number and class of employees. As of December 31, 2012, the County’s estimated total undiscounted outstanding liability for the workers’ compensation program is $2,659,365. Reserve funding is targeted at 70 percent or better to ensure adequate resources are available to cover losses within the self-insured retention level. Unemployment Risk The County has elected to retain the risk for unemployment compensation payable to former County employees. The State of Washington Employment Security Department bills the County for the unemployment compensation benefits paid to former employees. Expenditures are then recognized in various county funds.


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Self Insured Claims Activity Following is a summary of the changes in the self-insurance fund liabilities for estimated claim settlements for the years ended December 31, 2012 and 2011:

Workers Compensation 12/31/2011 12/31/2012Unpaid claims, beginning of fiscal year 2,056,545$ 2,252,566$ Incurred claims (including IBNRs) 1,083,560 1,404,648 Claim payments (887,539) (997,849) Unpaid claims, end of fiscal year 2,252,566$ 2,659,365$

General Liability 12/31/2011 12/31/2012Unpaid claims, beginning of fiscal year 4,458,615$ 5,116,306$ Incurred claims (including IBNRs) 1,333,048 1,117,224 Claim payments (675,357) (147,558) Unpaid claims, end of fiscal year 5,116,306$ 6,085,972$

Year ended

Year ended

NOTE 9. SHORT-TERM DEBT During the year, the County did not obtain any short-term loans.

NOTE 10. LONG-TERM DEBT In the government-wide financial statements, and proprietary fund financial statements, long-term debt and other long-term obligations are reported as liabilities. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the effective interest method. Bonds Payable is reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and are amortized over the term of the related debt. In the fund financial statements, governmental funds recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

State law provides that debt cannot be incurred in excess of the following percentages of the value of the taxable property of the County: 1.5% - Without a vote of the people 2.5% - With a vote of the people 5.0% - With a vote of the people, provided the indebtedness in excess of 2.5% is for utilities, parks, or open space development.


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As of December 31, 2012 the debt limits for the County were as follows:

Withouta Vote 2.50% 5.00%

Legal Limit 406,987,256$ 678,312,094$ 1,356,624,188$ Applicable Outstanding Debt 107,133,369 107,133,369 107,133,369 Margin Available 299,853,887$ 571,178,725$ 1,249,490,819$

With a Vote

A. General Obligation Bonds The government issues general obligation and revenue bonds to provide funds for the purchase of assets and the acquisition and construction of major capital facilities. Bonded indebtedness has also been entered into to advance refund several general obligation and revenue bonds. General obligation bonds have been issued for both governmental and business-type activities and are being repaid from the applicable resources. The revenue bonds are being repaid by proprietary fund revenues.

General obligation bonds currently outstanding are as follows: Issued Name Maturity Interest Original Amount ofand Purpose Range Rate % Amount Installment2003B - Administrative Building 12/1/13 - 12/1/28 3.875 - 4.75 17,805,000$ 585,000 - 1,465,0002004 - Gen. Govt. - Refunding 7/1/13 - 7/1/29 4.00 - 5.0 20,664,719 540,000 - 1,075,0002005 - Refunding 7/1/13 - 7/1/25 5.0 18,995,000 1,075,000 - 1,500,0002006 - Improve Bldgs & Parks 7/1/13 - 7/1/31 4.4 - 5.0 18,085,000 505,000 - 985,000

2009B - KCCHA Notes 4/30/133 mth Libor +

160-200 3,622,975 1,589,0912010 - Refunding; Coroner's Bldg & CKCC; BAN (Prop.Acq.) 12/1/13 - 12/1/30 3.0 - 4.0 9,220,000 190,000 - 530,0002011 - Refunding 12/1/13 - 12/1/27 2.0 - 4.0 20,370,000 500,000 - 1,550,0002001 - Rds PWTF Ln # PW-01-691-037 - Anderson Hill 7/1/13 - 7/1/21 0.5 897,812 47,2532003 - KCCHA Real Estate Contract 6/1/13 - 6/1/34 5,583,889 127,500 - 327,5002009 - BAN Line of Credit (KCCHA Loans) 4/30/13 1.77 40,500,000$ 15,323,033

Total 155,744,396$


December 31, 2012

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

Year EndingDecember 31 Principal Interest

2013 6,614,091 3,531,4132014 4,710,000 3,325,8242015 4,905,000 3,152,6242016 5,100,000 2,965,1742017 5,325,000 2,774,299

2018-2022 28,230,000 10,396,5662023-2027 23,435,000 4,340,0052028-2031 6,325,000 592,730

Total 84,644,091$ 31,078,635$

Governmental Activities

Notes Payable The County has a note payable of $4.60 million due to the Kitsap County Consolidated Housing Authority from the purchase of part of the Norm Dicks Government Center. The County has since sold a portion of the property to the Kitsap County Health District. The County signed a $4.72 million note with the Kitsap County Health District, which will be used to repay the Kitsap County Consolidated Housing Authority.

The County has a note payable of $2.14 million due to the Rolling Hills Golf Course Partnership from the purchase of the Rolling Hills Golf Course in March 2011. Principal and interest payments are due annually for 20 years, beginning in October 2012. The annual debt service requirement to maturity for the notes payable is as follows:

Year Ending Governmental ActivitiesDecember 31 Principal Interest

2013 187,721 366,5432014 196,648 357,4522015 205,831 347,9032016 217,787 337,2132017 230,034 325,216

2018-2022 1,345,436 1,422,1892023-2027 1,757,679 1,006,1962028-2032 2,104,830 458,7952033-2034 495,000 33,126

Total 6,740,966 4,654,633$

The County has a Bond Anticipation Note Payable (BAN) of $15.32 million due to Bank of America. This is in conjunction with debt it assumed from Housing Kitsap, formerly known as the Kitsap County Consolidated Housing Authority. As part of the debt assumption agreement, Housing Kitsap’s properties were pledged for sale to pay off the BAN. As these properties sell, proceeds are applied to the principal balance of the BAN.


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During 2012, in addition to proceeds from sales of the properties, the County paid $600,000 towards the principal balance of the BAN and the City of Bremerton contributed $1,660,292 towards the principal balance. The BAN has a four year term and will mature in 2013, at which time the County will issue General Obligation Bonds to pay off the balance.

B. Revenue bonds The revenue bonds and other loans currently outstanding are as follows:

Issued Name Maturity Interest Original Amount of and Purpose Range Rate % Amount InstallmentSewer Refunding 2001 7/1/12 - 7/1/16 5.25 - 5.625 13,075,000$ 1,305,000 - 1,620,000Sewer Refunding 2010A 12/1/12 - 12/1/18 3.0 - 4.0 5,775,000 665,000 - 805,000Sewer 2010B 12/1/28 - 12/1/40 6.714 - 7.364 37,120,000 1,090,000 - 4,100,000Sewer 2010C 12/1/28 6.696 1,110,000 1,110,000D.O.E. Loan # L0400026 5/1/12 - 5/1/25 1.5 14,188,000 249,402 - 303,064PWTF Loan # PW-01-691-036 7/1/12 - 7/1/21 0.5 2,605,000 150,816PWTF Loan # PR-08-951-108 7/1/12 - 7/1/13 0.5 1,000,000 270,833PWTF Loan # PC-12-951-040 6/1/13-6/1/32 1.00 5,205,000 146,054

Total 80,078,000$

Debt service requirements for the revenue bonds and loans are as follows:


2013 2,055,000 2,190,8292014 2,155,000 2,094,9292015 2,260,000 1,994,0292016 2,365,000 1,886,0662017 780,000 1,768,866

2018-2022 805,000 8,559,5312023-2027 0 8,527,3312028-2032 11,910,000 7,599,2542033-2037 14,885,000 4,609,9392038-2040 11,435,000 983,836

Total 48,650,000$ 40,214,610$

Revenue Bonds


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2013 1,075,946 139,7982014 812,789 128,5532015 820,581 118,5462016 828,491 108,4212017 836,520 98,177

2018-2022 4,156,536 332,9182023-2027 2,223,131 92,2852028-2032 730,275 21,908

Total 11,484,270$ 1,040,605$

Ecology & PWTF Loans

C. Pollution Remediation Obligation In 2011, the Solid Waste fund recorded a liability of $742,805 which represents the County’s share of cleanup costs of the Hansville Landfill. The liability was adjusted to $657,370 in 2012 as a result of recalculation of the costs. The Washington State Department of Ecology identified the County and Waste Management, Inc. as Potentially Liable Parties (PLPs) for remediation of the site. See Note 19, Pollution Remediation Obligation for additional information.

D. Compensated absences It is the policy of the County to permit employees to accumulate earned but unused vacation and sick pay benefits. There is no liability for unpaid accumulated sick leave earned after January 1, 1984. Sick leave earned before January 1, 1984 is payable at 50% at retirement or death, and employees may accumulate up to a maximum of 150 days. All vacation pay is accrued when incurred in the government-wide and proprietary fund financial statements. An employee may accumulate up to 360 hours (45 days). All outstanding vacation leave is payable upon resignation, retirement, or death. NOTE 11. LEASES Operating leases The County does not have any non-cancelable operating leases.

Capital Leases The County does not have any non-cancelable capital leases.


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NOTE 12. CHANGES IN LONG-TERM LIABILITIES Long-term liability activity for the year ended December 31, 2012 was as follows:

Beginning Ending Due WithinBalance Additions Reductions Balance One Year

Governmental activitiesBonds payable:General obligation bonds 91,961,771$ -$ 7,317,680$ 84,644,091$ 6,614,091$

Total bonds payable 91,961,771 - 7,317,680 84,644,091 6,614,091

Compensated absences 4,967,446 2,649,912 2,952,184 4,665,175 529,795 Internal services comp. 291,046 218,162 175,132 334,075 33,408 Notes payable 24,011,419 491,906 2,439,327 22,063,999 15,510,754 Net OPEB obligation 3,141,736 608,181 - 3,749,917 - Other liabilities 472,533 - 47,253 425,279 47,253 Governmental-activities Long-term liabilities 124,845,950$ 3,968,161$ 12,931,575$ 115,882,536$ 22,735,301$

Business-type activitiesBonds payable:Revenue bonds 50,620,000 - 1,970,000 48,650,000 2,055,000 Unamortized premium/

discount 324,001 - 79,795 244,205 79,795 Total bonds payable 50,944,001 - 2,049,795 48,894,205 2,134,795

Other liabilities 10,228,304 2,921,100 1,007,764 12,141,640 1,105,031 Compensated absences 566,270 389,196 365,973 589,493 84,046 Business-type activities Long-term liabilities 61,738,575$ 3,310,296$ 3,423,533$ 61,625,338$ 3,323,872$

Total 186,584,525$ 7,278,457$ 16,355,108$ 177,507,874$ 26,059,173$

Internal service funds predominantly serve the governmental funds. Accordingly, long-term liabilities for these are included as part of the above totals for governmental activities. At year end $334,075 of internal service funds’ compensated absences are included in the above amounts. The general fund generally liquidates the claims, judgments, compensated absences and OPEB obligations from governmental activities.

All bond issues comply with arbitrage regulations as verified by an outside consultant, BLX Group. Five-year reports are prepared as required.


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NOTE 13. CONTINGENCIES AND LITIGATIONS The County is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, in the opinion of the County’s legal advisor the resolution of these matters will not have a material adverse effect on the financial condition of the County. The County acts as guarantor of one Kitsap County Consolidated Housing Authority’s bond issues with an outstanding balance of $16.88 million as of December 31, 2012. The County participates in a number of federal and state assisted programs. These grants are subject to audit by the grantors or their representatives. Such audits could result in requests for reimbursement to grantor agencies for expenditures disallowed under the terms of the grants. Other than the instances described above, County management believes that such disallowances, if any, will be immaterial.

NOTE 14. INTER-FUND BALANCES AND TRANSFERS 1. Advances To/From other funds

The general fund advance balance is the outstanding long-term loan between the CDBG, Home Entitlement, Youth Commission, JTPA funds and the general fund. In each case the Advances from the General fund provide for operating costs to these grant funded programs while they await reimbursements from federal and state agencies.

2. Due from other funds/Due to other funds

The outstanding balances between funds result mainly from the time lag between the dates that a) interfund goods and services are provided; b) transactions are recorded in the accounting system; and c) payments between funds are made.

AdvancesFrom Non Major Funds Fiduciary Funds Total

General Fund 180,000$ -$ 180,000$

Total 180,000$ -$ 180,000$

Advances To


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Due to General County Ment Hlth Non Solid Sewer Surface Internal AgencyOther Funds Fund Roads Medicaid Major Waste Utility Storm Service Funds TotalGeneral Fd - 3,058 - 27,004 - 341 - 371,268 4,659 406,330 County Rds 133,805 - - 225,132 1,183 772 29,770 254,270 - 644,932 Mental Hlth 2,743 - - - - - - - - 2,743 Non Major 1,744,153 40,412 2,516 140,298 - 38,000 - 61,927 - 2,027,306 Solid Waste 31,948 3,259 - 12,508 - 51,375 11,356 2,088 - 112,534 Sewer Utility 57,653 7,550 - - 1,166 - 12,721 13,007 - 92,097 Surface Strm 65,170 422,902 - 96,277 98,807 65,679 - 19,001 - 767,836 Internal Serv. 63,446 11,222 - - - - - 7,745 - 82,413 Agency - - - 39,412 - - - - - 39,412

Total 2,098,918 488,403 2,516 540,631 101,156 156,167 53,847 729,306 4,659 4,175,603

DUE FROM OTHER FUNDS

3. Transfers

Transfers are used to a) move revenues from funds with collection authorization to the debt service funds as debt principal and interest payments become due; b) move unrestricted revenues to finance various programs that the County must account for in other funds.

IN General County Real Estate Non Internal Agency OUT Fund Roads Excise Tax Major Service Fund Total

General Fund - - - 3,079,090 146,617 - 3,225,707 County Roads - - - 352,209 - - 352,209 REET - - - 4,061,506 - - 4,061,506 Mental Health - - - - - - - Nonmajor 3,719,273 1,620,000 - 4,424,771 - 204,181 9,968,225 Solid Waste - - - - - - - Surface Stormwater - - - 212,108 - - 212,108 Sewer - - - 136,903 - - 136,903 Nonmajor Ent - - - - - - - Int. Serv - - - 53,461 - - 53,461 Total 3,719,273 1,620,000 - 12,320,048 146,617 204,181 18,010,119

TRANSFERS-FUND FINANCIAL STATEMENTS

NOTE 15. RECEIVABLES AND PAYABLES

Federal grants and assistance awards Federal grants and assistance awards made on the basis of entitlement periods are reported as “due from other governments” (inter-government receivables) and revenues in the year in which entitlement occurs. Federal or state reimbursement type grants for the acquisition of capital assets of proprietary fund types are reported as “due from other governments” (inter-governmental receivables) and “capital contributions” in the year during which the related expenditure occurs. All other federal and state reimbursement type grants are reported as “due from other governments” (inter-governmental


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receivables) and revenues in the year in which the related expenditure or expenses are incurred. Governmental funds report deferred revenue in connection with receivables for revenues that are not considered available to liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with resources that have been received, but not earned. Public Facility District receivable The County has a $9.26 million long-term receivable due from the Public Facility District, one of its component units. The County sold G.O. bonds and gave the proceeds to the PFD and the PFD pledged its sales tax revenue to repay the County. The debt is carried on the County’s books and the note is reflected on the PFD books as well. NOTE 16. DEFERRED COMPENSATION The County offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all County employees, permits them to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are (until paid or made available to the employee or other beneficiary) solely the property and rights of the County (without being restricted to the provisions of the benefits under the plan). The amounts are subject only to the claims of the County’s general creditors. Participants’ rights under the plan are equal to those of general creditors of the County in an amount equal to the fair value of the deferred account for each participant. It is the opinion of the County’s legal counsel that the County has no liability for losses under the plan but does have the duty of due care that would be required of an ordinary prudent investor. The County believes that it is unlikely that it will use the assets to satisfy the claims of general creditors in the future. The investment carrying values of the plans as of December 31, 2012, are as follows: Investment company Fair Value

Nationwide 13,039,095$ ING 6,307,211 Hartford 6,983,342 ICMA 893,195

Total 27,222,842$


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NOTE 17. SERVICE CONCESSION ARRANGEMENTS The County implemented GASB Statement No. 63, Accounting and Financial Reporting for Service Concession Arrangements. In March 2011, the County purchased a golf course property consisting of approximately 104 acres encompassing the golf course, clubhouse, outbuildings and storage sheds, and various property and equipment items necessary to operate the golf course and clubhouse. The purchase was financed through a note payable to the seller, the terms of which are annual payments of $200,000 for a period of 20 years. The note bears interest at 6.5% and the note balance was $2,143,466 as of December 31, 2012. The cost of the golf course was $2,200,400 of which $2,112,855 was capitalized. The County reports the golf course and related equipment as a capital asset which had a net book value of $2,048,870 at year-end. The County entered into lease agreement with The Rolling Hills Golf Course, LLC (RHCG) in 2011. Under the agreement RHGC will operate and collect user fees and other revenue from the Rolling Hills Golf Course, Pro Shop and Restaurant facility. The initial term of the lease is five years with three renewal options for subsequent renewal terms of five years each, for a potential total of 20 years. Beginning in October 2012 and annually thereafter, RHGC will pay the County installment payments of $200,000 over the course of the arrangement; the present value of these installment payments is estimated to be $2,200,000. Deferred inflows related to the golf course are $2,143,466 as of December 31, 2012. In addition to the annual installment payments, RHGC will begin making Lease Reserve Payments of $10,000 per year beginning in year six through year ten of the lease, then $20,000 per year beginning in year 11 through year 20 of the lease or until such time as the reserve balance reaches $200,000. The purpose of the lease reserve payments is to establish a reserve from which the County may draw, should RHCG default on an annual lease payment. If RHGC does not default on an annual lease payment, the reserve balance will be credited against RHGC’s annual lease payment for the final year of the lease. RHGC is required to operate and maintain the golf course and pro shop, restaurant, bar and banquet room in accordance with the Rolling Hills Golf Course Lease Agreement. NOTE 18. OTHER POST-EMPLOYMENT BENEFITS Plan Description As required by the Revised Code of Washington (RCW) Chapter 41.26, the County provides lifetime medical care for members of the Law Enforcement Officers and Firefighters (LEOFF) retirement system hired before October 1, 1977 under a defined


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benefit multi-employer healthcare plan. The members necessary hospital, medical , and nursing care expenses not payable by worker’s compensation, social security, insurance provided by another employer, other pension plan or any other similar source are covered. Under the authorization of the LEOFF Disability Board, direct payment is made for other retiree medical plan benefit provisions. Financial reporting for the LEOFF retiree healthcare plan is included in the County’s Comprehensive Annual Financial Report. As of December 31, 2012 there were 44 active participants in this closed plan. Funding Policy Funding for LEOFF retiree healthcare costs is provided entirely by the County as required by RCW. The County’s funding policy is based upon pay-as-you-go financing requirements. Annual OPEB Cost and Net OPEB Obligation The Annual Required Contribution (ARC) represents the 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 over a period of thirty years as of January 1, 2008. The following table shows the components of the County’s annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the County’s net OPEB. The net OPEB obligation of $3,749,917 is included as a noncurrent liability on the Statement of Net Position. The actuarial valuation was performed on December 31, 2012. OTHER POST EMPLOYMENT BENEFITS OBLIGATION YEAR ENDINGDetermination of Annual Required Contribution: 12/31/2012Normal Cost at year end -$ Amortization of UAAL* 1,176,993 Annual Required Contribution (ARC) 1,176,993$

Determination of Net OPEB Obligation:Annual Required Contribution 1,176,993$ Interest on prior year Net OPEB Obligation 141,378 Adjustment to ARC (292,539) Annual OPEB Cost 1,025,832$ Contributions 417,652 Increase in Net OPEB Obligations 608,180$

Net OPEB Obligation - beginning of year 3,141,737$ Increase in Net OPEB Obligations 608,180$ Net OPEB Obligation - end of year 3,749,917$ *Unfunded Actuarial Accrued Liability


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The County’s annual OPEB cost, the contribution, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligations were as follows:

Funding Status As of December 31, 2012 the most recent alternative method measurement date, the plan was 0% funded. The accrued liability for benefits was $12,640,369 and the actuarial value of assets was $0 resulting in a UAAL of $12,640,369. Historically Kitsap County has used a pay-as-you-go approach to funding. If Kitsap County were to contribute the ARC to the plan every year, a liability would not be recorded. If the ARC is not fully funded in a given year, a liability is reported for the unpaid portion of the ARC. Actuarial Methods and Assumptions The County’s annual other post employment benefit (OPEB) cost is calculated based upon the Annual Required Contribution (ARC), an amount determined using the alternative method permitted under GASB No. 45. A single retirement age of 56.24 was assumed for all active members for the purpose of determining the actuarial liability. Termination and mortality rates were assumed to follow the LEOFF 1 termination and mortality rates used in the June 30, 2009 actuarial valuation issued by the Office of State Actuary (OSA). Healthcare costs and trends were determined by Millman and used by OSA in the state-wide LEOFF 1 medical performed in 2007. The results were based on grouped data with 4 active groupings and 4 inactive groupings. The actuarial assumption for the valuation included a return on investment of 3.0%. The healthcare cost inflation trend was computed at 7% and the plan is amortized as a level amount over 15 years. The healthcare cost inflation rates were the only assumed inflation rates considered. Actuarial valuations for OPEB plans involve estimates of the value of reported amounts and assumptions about the probability of events far into the future, and actuarially determined amounts are subject to continual revision as results are compared to past expectations and new estimates are made about the future. The Schedule of Funding Progress for this postemployment defined benefit plan is detailed in the Required Supplementary Information section of this report immediately following the notes to the financial statements. This schedule presents multi-year trend information about whether the actuarial value of the plan assets is increasing or decreasing relative to the actuarial accrued liability for the benefits over time.

Year Ended Annual Cost Contribution

Percentage of Annual OPEB

cost contributedNet OPEB Obligations

2008 1,328,020$ 489,157$ 37% 1,597,464 2009 1,072,127$ 450,113$ 42% 2,219,478 2010 984,620$ 472,936$ 48% 2,731,162 2011 885,327$ 474,752$ 54% 3,141,737 2012 1,025,832$ 417,652$ 41% 3,749,917


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NOTE 19. POLLUTION REMEDIATION OBLIGATION In accordance with Governmental Accounting Standards Board Statement No. 49, Accounting and Financial Reporting for Pollution Remediation Obligations, which became effective for fiscal periods beginning after December 15, 2007, liabilities for environmental cleanup obligations were recorded in the Solid Waste fund. Hansville Landfill The current closure cost estimate for the Hansville Landfill site was revised to $1,878,200 in October 2012, for the years 2013 - 2034. The Solid Waste Fund recognized a liability of $657,370 for its share (35%) of the estimated costs remaining to be recognized as determined by the Washington State Department of Ecology. The Solid Waste Fund is using the local government financial test as the financial mechanism to assure the total cost of remedial activities at the Hansville Landfill, including Waste Management of Washington, Inc.’s share. The estimated costs are based on current costs of samplings and are updated annually, and the liability is adjusted accordingly. In 2011, Kitsap County together with Waste Management of Washington Inc., were identified as Potentially Liable Parities (PLPs) for remediation of contamination at the Hansville Landfill under the Model Toxics Control Act (MTCA). A Cleanup Action Plan (CAP) providing for Natural Attenuation with Enhanced Monitoring and Institutional Controls has been approved by the Washington State Department of Ecology. The landfill is full and has been closed since 1989. NOTE 20. OTHER NOTE DISCLOSURES A. Accounting and Reporting Changes The County implemented GASB Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources and Net Position, which redefined the Entity-wide Statement of Net Assets, now titled Statement of Net Position. It also similarly retitled the Proprietary Funds Statement of Net Assets to Statement of Net Position. A service concession arrangement at Rolling Hills Golf Course previously reported as unearned revenue is classified as a Deferred Inflow for 2012 under GASB Statement No. 63. B. Special Items As reported in the 2009 Comprehensive Annual Financial Report, Kitsap County agreed to assume debt issues of the Kitsap County Consolidated Housing Authority (KCCHA). As result of this agreement certain KCCHA properties were pledged to be sold to pay off these debt issues. The sales of these properties occurring in 2012 were reported as a


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Special Item totaling $3.69 million in the Statement of Revenues, Expenditures, and Changes in Fund Balances for Governmental funds.

In addition, the estimated proceeds of KCCHA assets pledged to payoff off the assumed debt appear to be short of paying off the debt by about $12.91 million. We previously recognized a loss of $10.33 million in 2009. Therefore, we recognized an additional loss of $2.58 million in 2012. This loss was reported on the Statement of Activities as reduction to Total Assets, on the Special Item line – assumption of debt. The County also reported a loss of $1.98 million on the transfer of property from Kitsap County to the Village Greens Metropolitan Parks District. This transfer was per previous agreement between the two governments. C. Extraordinary Item The City of Port Orchard annexed several areas formerly a part of unincorporated areas of Kitsap County, requiring the county to transfer certain assets such as right of way, roads, bridges and sidewalks. Since these assets had a capitalized value of $2,871,773 and accumulated depreciation of $1,790,277, we recognized a loss $1,081,496 on these transfers. D. Subsequent Events

1. On April 25, 2013, the County issued limited tax general obligation bonds (LTGO) in the aggregate principal amount not to exceed $53.5 million to provide funds to refund all or a portion of Kitsap County LTGO Bond Anticipation Note 2009 Kitsap County LTGO Bond 2009B Kitsap County LTGO Bonds Series 2003B Kitsap County LTGO and Refunding Bonds 2004 Kitsap County Consolidated Housing Authority Revenue Bonds 2003.

2. In June, 2013, the Kitsap Mall was sold and the County anticipates receiving

$635,000 in real estate excise taxes from the sale.

E. Prior Period Adjustments

Department of Community Development and Parks Capital Improvements Fund reported prior period adjustments of $4,844 and $10,283 respectively to correct 2011 grant revenue accruals. The Sewer Construction Fund reported a prior period adjustment of $285,417 to capitalize prior years’ interest expense to a capital asset completed in 2012 and to add interest to construction in progress for assets that were incomplete as of the end of the year.

REQUIRED SUPPLEMENTARY INFORMATIONLAW ENFORCEMENT OFFICERS AND FIREFIGHTERS (LEOFF1)

SCHEDULE OF FUNDING PROGRESS

ActuarialAccrued UAAL as a

Actuarial Liability Unfunded PercentageAccuarial Value of (AAL)- AAL Funded Covered of covered Valuation Assets Entry Age (UAAL) Ratio Payroll Payroll

Date (a) (b) (b-a) (a/b) ( c) [(b-a)/c]02/11/08 -$ 13,400,355$ 13,400,355$ 0% -$ N/A02/10/10 - 12,339,603 12,339,603 0% - N/A01/20/11 11,721,211 11,721,211 0% - N/A02/14/12 10,919,266 10,919,266 0% - N/A04/16/13 12,640,369 12,640,369 0% - N/A

93

___________________________________NONMAJOR FUNDS

94


Nonmajor Governmental Funds

Special Revenue Funds Special revenue funds are used to account for specific revenues that are legally restricted or committed to expenditure for particular purposes. Central Communications (CENCOM) - A fund established by intergovernmental agreement to provide a consolidated emergency communication system for Kitsap County, the cities, fire districts, police agencies and medical agencies therein. Emergency Services - A fund used to account for emergency management and planning as well as coordination with volunteer agencies to provide emergency services within Kitsap County. Law Library - A fund used to account for the purchase of legal publications and to maintain a law library used by judges, attorneys and the general public. KPREP Fund - A fund used to account for the disaster preparedness programs within the county. Election Reserve - A fund established to accumulate revenue to be used for the purchase of election related capital outlay. Auditor’s Document Preservation - A fund established to accumulate surcharge fees to be used for the installation and maintenance of an improved system for copying, preserving and indexing documents recorded in the County. Housing Affordability – A fund used to account for the special fee on the recording of public documents throughout the County. Westnet - A fund used to account for the drug enforcement programs. Boating Safety Improvement - A fund, managed by the Sheriff’s Department, to account for state and local funding of marine patrol and boating safety. Noxious Weed Control – a fund used to account for the eradication and control of noxious weeds in Kitsap county. Treasurer’s Maintenance and Operation - A revolving fund used by the County Treasurer to defray the cost of foreclosure, and sale for delinquent taxes. Electronic Technology Excise – a fund used to account for the collection of state distributed REET fund to be used exclusively for development, implementation, and maintenance of an electronic processing and reporting system for the real estate excise tax affidavits. Veteran’s Relief - A fund used to finance emergency financial assistance to veterans and their surviving spouses.

95

Expert Witness - A fund used to account for the funds provided to cover the costs of expert witnesses. Conservation Future Tax - A fund used to account for the collection of taxes to be used for future conservation measures. Community Service - A fund used to account for the collection of court fines which are used to support the community service program. County Stadium - A fund used to account for the local motel/hotel transient tax. Kitsap County Fair – This fund records all the sponsorships and donation t the fair as well as expenses of the fair and rodeo. Prisoners’ Commissary - A fund used to account for the monies from the Jail Commissary. SIU Revenue - A fund used to finance special investigations by the Sheriff’s Office. S.A.I.V.S - A fund used to finance the investigations of domestic and sexual abuse and provide services to the Victims. Anti-profiteering Revolving - A revolving fund used to account for the crime investigation by the Prosecutor’s Office. Family Court Services - A fund used to account for a program to assist the minor children of parties involved in domestic relation litigation. Trial Court Improvement fund – The fund is used to receive fees from civil lawsuits in District and Superior courts and the funds are used to fund improvements to Superior and District Court staffing, programs, facilities, and services. Public Defense Funding – The fund used to account for public defense funding as well as the costs associated with the program. Pooling Fees - A fund used to account for the revenues and expenditures of the Treasurer’s investment pool operations. GMA Park Impact Fees - A fund used to account for the development impact fees that are restricted to park development. GMA Transportation Impact Fees Central Kitsap - A fund used to account for the development impact fees that are to be used for transportation purposes in the Central Kitsap area. County Parks Acquisition & Development - A fund used to account for monies used for the acquisition and development of County parks. Point No Point Lighthouse – A fund used to account for monies received for rentals of the Point No Point Lighthouse as well as recording expenditures of maintaining it. Crime Prevention - A fund established to accumulate funding for use by the K-9/Crime Prevention unit.

96

Regional Septic Loans Program Fund – This fund is used to record activity of the Regional Septic Loan program. Recovery Center - A fund used to account for the operation of the substance abuse rehabilitation facility. Dispute Resolution Center - A fund used to account for the operation of a family dispute resolution center. CDBG Entitlement - A fund used to account for the Community Development Block Grant. Home Entitlement Grants – This fund is to account for the Home Entitlement Grant. Kitsap Abatement Fund – The fund used to record activity of the abatement program operated by the Community Development Department. Community Development – The fund used to record activity of the Community Development Department formerly part of the general fund. Jail & Juvenile Sales Tax – A fund used to account for the special sales tax for the jail expansion and the construction of the new Juvenile facility Service Area 1 Road Impact Fee – A fund used to account for activities in the service area number 1 Service Area 2 Road Impact Fee – A fund used to account for activities in the service area number 2 Service Area 3 Road Impact Fee – A fund used to account for activities in the service area number 3 Service Area 4 Road Impact Fee – A fund used to account for activities in the service area number 4 Regional Service Area Impact - A fund used to account for activities in the regional service area PEG Fund – A fund established to account for funds collected and disbursed for the purpose of securing equipment and facilities for the Public Access and Government Education Television facility. Mental Health Fund – Fund used to account for funding and activity of the mental health program excluding Medicaid and other major aid programs. Developmental Disabilities - A fund used to account for the County’s developmental disabilities program. Substance Abuse Treatment - A fund used to account for the county’s substance abuse treatment program. Youth Commission – A fund used to account for activities to address at risk youth.

97

Youth Services / Juvenile – A fund used to account for private donations received for the purpose of paying for specific needs of youth serviced by the Juvenile Department. M/H Medicaid Match – This fund is used to account for local matching funds of the Medicaid program. The State requires these funds to be tracked separately in order for county to receive match. Mental Health non-medicaid fund – The fund used to account for funding and activity of state mental health funding Commute Trip Reduction - A fund used to account for the funding of reducing the number of employee commute trips. Area Agency on Aging - A fund used to account for the funding of the senior citizens’ program. JTPA Administration - A fund used to account for uses of the Job Training Partnership Act funding. Employment Training – A fund used to account for activities of the new Employment Training program. Kitsap Regional Coordinating Council - A fund used to account for various grant programs. ARRA EECBG – A fund used to account for activity of the Conservation Grant Program.

Capital Projects Funds Capital projects funds are used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds and trust funds. Model Toxic Control Act - A fund used to account for the financing of landfill closures on Bainbridge Island, Hansville, and Norseland Mobile Home Park as required by the State of Washington Model Toxic Control Act. 2009 KCLTGO BAN Project fund – This fund is used to record activity associated with Bank of America Debt the county assumed on behalf of the Kitsap Consolidated Housing Authority (KCCHA). This included the sale of KCCHA properties to pay off this debt. 2009B KCLTGO BAN Project fund – This fund is used to record activity associated with the Key Bank Debt the county assumed on behalf of the Kitsap Consolidated Housing Authority (KCCHA). This included the sale of KCCHA properties to pay off this debt. Bethel Corridor Development Project – Established for the purpose of accounting for financial resources and expenditures related to the Bethel Corridor Development capital project for improvements on Bethel Road. KC LTGO 2010 – This fund is used to account for projects funded by the 2010 GO Bonds. Poplars Capital Project Fund – This fund is used to record activity at the newly acquired

98

Poplars property. Juvenile Services Facility - A fund used to account for the expansion of the Juvenile Services Center. Silverdale Projects – The fund used to account for capital projects related to the proposed Silverdale Community Center. Parks Capital Improvement - A fund used to account for various park improvement projects. Jail Expansion - A fund used to account for the expansion of current County Jail building. K. C. Capital Project - 2001 - A fund used to account for the refunding of certain L.T.G.O. Bonds, Public Works Annex and open space acquisitions. 2002A Facility Project - A fund used to account for the addition to the Kitsap County Fair Event Center. Administrative Building – A fund used to account for the construction of the county’s new administrative building. Kingston Village Greens – Account used to track financial activity of developing the Kingston Village Greens Community Center project. KC LTGO 2006 Bond Project – A fund used to account for the several capital projects including remodel of the Public Works Building, Parks Improvements, Court House remodel and future Morgue.

Debt Service Funds General Obligation Refunding Bonds 1996 – A fund used to account for the service of debt associated with the 1996 General Obligation Refunding Bonds issue. The county used the proceeds from the bond sales to refund portions of the County’s 1989, 1991 and 1992A outstanding Limited Tax Levy General Obligation Bonds. 2009 KC LTGO BAN - This fund is the account for payment of the 2009 KC LTGO BAN, issued to pay debt of the KCCHA with Bank of America. KC 2009 Key Bank Line - This fund is the account for payment of the 2009 KC LTGO BAN, issued to pay debt of the KCCHA with Key Bank KC2009 RSV Tree Tops – This fund is account for the reserve account created as part of the sale of the Tree Tops property. KC LTGO 2010 Bond – This fund used to account for service of the debt associated with the 2010 bond issue. 2011 Refunding Bond – This fund is used to account for service of debt associated with the 2011 Refunding Bond issues. Special Assessments - A fund used to service all debts of the County that are backed by special assessments.

99

General Obligation Bonds 1999 - A fund used to account for the service of debt associated with financing of open space land purchase. General Obligation Bonds 1999B - A fund used to account for the service of debt associated with the financing of the acquisition of new technology systems for 911 communications, making energy system improvements, and refunding bonds. General Obligation Bonds 2000 - A fund used to account for the service of debt associated with the financing of the building addition to the Kitsap County Adult Detention Center. General Obligation Bonds 2001 & Refunding - A fund used to account for the service of debt associated with the financing of acquisition of open space land, Surface Storm water Management Utility projects, and to refund the County’s 1992A callable limited tax general obligation refunding bonds. General Obligation Bonds 2002A - A fund used to account for the service of debt associated with the financing of improvements to the Kitsap Special Events Center and construction of Kitsap Regional Conference Center. General Obligation Bonds 2003 - A fund used to account for the service of debt associated with construction of the Public Works Annex and completion of the County’s jail facility. General Obligation Bonds 2003B - A fund used to account for the service of debt associated with the financing the construction of the county’s administration building, purchase of land for a library in Silverdale, and purchase of open space land. General Obligation Bonds 2004 - A fund used to account for refunding of the 1993 bonds and the new administration building. Road Improvement Guaranty - A fund established by the R.C.W. 36.88.220 to guarantee the payment of Road Improvement District Bonds and Warrants. General Obligation Bonds 2005 - Established for purpose of accounting for debt service for the 2005 LTD GO Bonds. The bonds were issued to provide a portion of the funds needed to advance refund some or all of the County's LTGO and Refunding Bonds, Series 1999B and LTGO Bonds Series 2000. General Obligation Bonds 2006 – Established for the purpose of accounting for debt service for the 2006 LTD GO Bonds. The Bonds were issued to provide funding for a number of capital projects throughout the county.


Combining Balance sheetNonmajor Governmental FundsDecember 31, 2012

Emergency Law KPREP ElectionCencom Services Library Fund Reserve

103 104 105 106 111ASSETS

Cash and Cash equivalents 498,094$ 2,290$ 175,194$ 40,809$ 92,902$ Deposits with fiscal agents - - - - - Investments 2,435,462 10 - - - Receivables(net) - - - - Property taxes 3,533 - - - - Special assessments - - - - - Accounts - - - - - Notes/Contracts - - - - - Others - - - - - Due from other funds 27,144 - - - - Due from other governments 2,738 - - 23,084 23,726 Interfund loan receivable - - - - - Prepayments - - - - - Advance to other funds - - - - -

Total assets 2,966,970$ 2,300$ 175,194$ 63,893$ 116,628$


Accounts payable 116,291 471 6,505 13,899 - Due to other funds 56,099 34,276 - 4,432 - Due to other governments - - - - - Other liabilities 236,467 15,226 - 7,319 0 Advance from other fund - - - - - Revenues collected in advance - - - - - Deferred revenue 3,533 - - - - Interfund loan payable - - - - -

412,390 49,973 6,505 25,649 0

Fund balancesNonspenableRestricted 2,554,580 (47,673) 168,689 38,245 116,628 CommittedAssignedUnassigned - - - - -

Debt services - - - - - Capital projects funds - - - - - Total Fund Balance 2,554,580 (47,673) 168,689 38,245 116,628

Total liabilities & fund balances 2,966,970$ 2,300$ 175,194$ 63,893$ 116,628$


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Aud. Doc. Housing Boating Noxious Treasurer's ElectronicPreservation Affordability Westnet Safety Weed Control M&O Technology

112 113 114 Improvement 117 120 121 Excise123

379,709$ 2,478,686$ 147,446$ 82,440$ 233,240$ 189,130$ 8,956$ - - - - - - - - - 612,088 114,176 - 703,728 174,241 - - - - - - - - - - - - - - - - - - - - - - - - - 14,879 - - - - - - - - - - - - - - - - - - 39,412 - - - - - - 88,001 11,860 - - - - - - - - - - - - - - - - - - - - - - -

379,709$ 2,478,686$ 886,947$ 208,476$ 248,119$ 892,858$ 183,197$

- 30,889 19,851 30 5,914 353 3,000 - - 24,485 - 143 - - - - - - - - -

4,669 - 6,224 - 4,342 - - - - - - - - - - - - - - - - - - - - 14,879 - - - - - - - - -

4,669 30,889 50,560 30 25,277 353 3,000

375,039 2,447,797 476,741 208,446 222,842 892,505 180,197 359,646 - - -

- - - - - - - - - - - - - - - - - - - - - - - -

375,039 2,447,797 836,387 208,446 222,842 892,505 180,197 379,709$ 2,478,686$ 886,947$ 208,476$ 248,119$ 892,858$ 183,197$


101



Veteran's Expert Conservation Community Relief Witness Futures Service 124 125 Tax 129 130

ASSETSCash and Cash equivalents 53,774$ 35,416$ 637,110$ 70,718$ Deposits with fiscal agents - - - - Investments 201,390 - 374,599 - Receivables(net) - - - - Property taxes 14,375 - 66,290 - Special assessments - - - - Accounts - - - - Notes/Contracts - - - - Others - - - - Due from other funds - - - 12,508 Due from other governments - - - - Interfund loan receivable - - - - Prepayments - - - - Advance to other funds - - - -

Total assets 269,539$ 35,416$ 1,077,998$ 83,226$


Accounts payable 22,522 - - - Due to other funds - - - - Due to other governments - - - - Other liabilities 1,926 - - 5,093 Advance from other fund - - - - Revenues collected in advance - - - - Deferred revenue 14,375 - 66,290 - Interfund loan payable - - - -

- 38,823 - 66,290 5,093

Fund balancesNonspenableRestricted 230,716 35,416 1,011,709 - Committed - - 78,133 Assigned - - - Unassigned - - - - Debt services - - - - Capital projects funds - - - - Total Fund Balance 230,716 35,416 1,011,709 78,133

Total liabilities & fund balances 269,539$ 35,416$ 1,077,998$ 83,226$


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County County Prisoner SIU Kitsap Anti- Family Court Stadium Fair Commissary Revenue S.A.I.V.S Profiteering Services

132 133 135 136 139 Revolving 141 142

119,773$ 48,900$ 53,286$ 33,441$ 25,870$ 12,233$ 65,564$ - - - - - - - - - - 512,699 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 4,658 - - - - - - 2,750 13,976 12,120 - - - - - - - - - - - - - - - - - - - - - - -

119,773$ 48,900$ 60,694$ 560,116$ 37,990$ 12,233$ 65,564$

11,500 2,000 5,518 1,101 - - - - - - 19,155 - - - - - - - 639 - - - - - (10,014) - - 62 - - - - - - - - - - - - 2,401 - - - - - - - - - - - - - - -

11,500 2,000 5,518 10,242 639 2,401 62 - - -

108,273 - 55,176 549,873 37,351 9,832 65,502 - 46,900 - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

108,273 46,900 55,176 549,873 37,351 9,832 65,502 119,773$ 48,900$ 60,694$ 560,116$ 37,990$ 12,233$ 65,564$


103



Trial Court Public Pooling GMA Park GMA Trans.Improvement Defense Fees Impact Fees Impact Fees

143 Funding 144 145 146 C Kitsap 148ASSETS

Cash and Cash equivalents 187,944$ 142,683$ 389,060$ 75,186$ 1,584$ Deposits with fiscal agents - - - - - Investments - - - - 5,929 Receivables(net) - - - - - Property taxes - - - - - Special assessments - - - - - Accounts - - - - - Notes/Contracts - - - - - Others - - - - - Due from other funds - - - - - Due from other governments - - - - - Interfund loan receivable - - - - - Prepayments - - - - - Advance to other funds - - - - - Total assets 187,944 142,683$ 389,060$ 75,186$ 7,513$

LIABILITIES AND FUND BALANCES Liabilities

Accounts payable - 4,607 1,125 - - Due to other funds - - - - - Due to other governments - - - - - Other liabilities - - 4,685 - - Advance from other fund - - - - - Revenues collected in advance - - - - - Deferred revenue - - - - - Interfund loan payable - - - - -

Total Liabilities - 4,607 5,810$ - - -

Fund Balances - Nonspendable - Restricted 187,944 138,076 383,250 75,186 7,513 Committed - - - Assigned - - - Unassigned - - - - - Debt services - - - - - Capital projects funds - - - - - Total Fund Balance 187,944 138,076 383,250 75,186 7,513 Total Liabilities & fund balnces 187,944$ 142,683$ 389,060$ 75,186$ 7,513$


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County Parks Pt No Point Crime Regional Recovery DisputeAcquisition & Lighthouse Prevention Septic Loans Center ResolutionDevelop 150 155 159 Prog 161 162 Center 163

5,317$ 48,797$ 12,234$ 97$ 63,406$ 13,018$ - - - - - -

403,754 - 72,440 - 1,442,538 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 95,394 - - - - 123,638 189,378 - - - - - - - - - - - - - - - - - - -

409,071$ 48,797$ 84,674$ 123,735$ 1,790,715$ 13,018$

17,071 451 563 123,424 25,685 2,060 8,115 - - 214 30,650 -

- - - - - - 2,401 - - - 75,167 -

- - - - - - - - - - - - - - - - - - - - - - - -

27,587 451 563 123,638 131,502 2,060

- 48,346 - 97 1,659,214 10,958 381,484 - 84,112 - - -

- - - - - - - - - - - - - - - - - - - - - - -

381,484 48,346 84,112 97 1,659,214 10,958 409,071$ 48,797$ 84,674$ 123,735$ 1,790,715$ 13,018


105



Special Revenue FundsCDBG Home Kitsap Community

Entitlement Entitlement Abatement Development164 166 167 168

ASSETSCash and Cash equivalents 22,202$ 33,785$ 145,725$ 947,051$ Deposits with fiscal agents - - - - Investments 8,866 10 - - Receivables(net) - - - - Property taxes - - - - Special assessments - - - - Accounts - 17,466 - - Notes/Contracts 300,000 3,496,011 - - Others - - - - Due from other funds 17,761 - - 276,459 Due from other governments 323,834 217,041 - 336,752 Interfund loan receivable - - - - Prepayments - - - - Advance to other funds - - - -

Total assets 672,663$ 3,764,313$ 145,725$ 1,560,261$


Accounts payable 254,655 202,415 - 53,998 Due to other funds 291 17,761 - 152,064 Due to other governments - - - - Other liabilities 10,457 - - 182,613 Advance from other fund 100,000 30,000 - - Revenues collected in advance - - - 3,089 Deferred revenue 300,000 3,496,011 - - Interfund loan payable - - - 1,150,000

665,402 3,746,187 - 1,541,764

Fund Balances:NonspendableRestricted 7,261 18,125 - - Committed - - 145,725 18,497 Assigned - - - - Unassigned - - - - Debt services - - - - Capital projects funds - - - - Total Fund Balance 7,261 18,125 145,725 18,497

Total liabilities & fund balances 672,663$ 3,764,313$ 145,725$ 1,560,261$

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Special Revenue FundsJail & Service Area 1 Service Area 2 Service Area 3 Service Area 4 Regional

Juvenile RD Impact Fee RD Impact Fee RD Impact Fee RD Impact Fee Service AreaSales Tax 171 173 174 175 176 Impact 177

865,650$ 56,511$ 88,588$ 11,834$ 23,438$ 101,743$ - - - - - - - 51,152 132,568 8,743 103,068 105,476 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

865,650 107,663$ 221,156$ 20,577$ 126,506$ 207,220$

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - -

865,650 107,663 221,156 20,577 126,506 207,220 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

865,650 107,663 221,156 20,577 126,506 207,220 865,650$ 107,663$ 221,156$ 20,577$ 126,506$ 207,220$

107



Special Reverue PEG Mental Developmental SubstanceFund Health Disabilities Abuse179 181 182 183

ASSETSCash and Cash equivalents 130,712$ 513,457$ 1,223,975$ 25,657$ Deposits with fiscal agents - - - - Investments - 724,932 - - Receivables(net) - - - - Property taxes - - - - Special assessments - - - - Accounts - - - - Notes/Contracts - - - - Others - - - - Due from other funds - 4,197 - - Due from other governments - - 478,009 592,839 Interfund loan receivable - - - - Prepayments - - - - Advance to other funds - - - - Total assets 130,712$ 1,242,585$ 1,701,985$ 618,496$

LIABILITIES AND FUND BALANCES Liabilities Accounts payable 1,063 868 241,854 95,031 Due to other funds - 964 3,220 98,882 Due to other governments - 40,402 206,341 141,374 Other liabilities - - 8,001 14,895 Advance from other fund - - - - Revenues collected in advance - - - - Deferred revenue - - - - Interfund loan payable - - - -

1,063 42,234 459,416 350,182

Fund balances Nonspenable Restricted - 1,200,352 1,242,569 268,314 Committed 129,649 - - - Assigned - - - - Unassigned - - - - Debt services - - - - Capital projects funds - - - - Total Fund Balance 129,649 1,200,352 1,242,569 268,314

Total liabilities & fund balances 130,712$ 1,242,585$ 1,701,985$ 618,496$

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Special Reverue Funds Youth Youth Services Mental Health Mental Health Commute Area

Commission Juvenile Medicaid Mt Non-medicaid Trip Reduct Agency On184 185 186 188 189 Aging 190

20,000$ 9,644$ 80,385$ 302,724$ 110,527$ 613,229$ - - - - - - - - - 563,718 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 71,085 - 587,912 - - - - - - - - - - - - - - - - - -

20,000$ 9,644$ 80,385$ 937,527$ 110,527$ 1,201,140$

- 524 - 98,421 1,574 58,831 - - - 3,691 31 22,606 - - 80,385 - - 426,915 - - - - - 99,621

20,000 - - - - - - - - - - - - - - - - - - - - - - -

20,000 524 80,385 102,112 1,605 607,973

- - - 9,119 - 835,416 - 593,168 - - - 108,922 - - - - - - - - - - - - - - - - - - - - - -

- 9,119 835,416 108,922 593,168 20,000$ 9,644$ 80,385$ 937,527$ 110,527$ 1,201,140$

109



Special Revenue funds

JTPA Employment Kitsap/Regional ARRAAdministration Traning Coordinating EECBG

191 192 Council 193 195ASSETSCash and Cash equivalents 22,013$ 230,563$ 63,164$ 9,268$ Deposits with fiscal agents - - - - Investments - - - - Receivables(net) - - - - Property taxes - - - - Special assessments - - - - Accounts - - - - Notes/Contracts - - - - Others - - - - Due from other funds - - 44,950 - Due from other governments 254,004 116,521 9,319 85,341 Interfund loan receivable - - - - Prepayments - - - - Advance to other funds - - - - Total assets 276,017$ 347,084$ 117,433$ 94,609$

LIABILITIES AND FUND BALANCES Liabilities Accounts payable 221,363 222,436 32,623 6,388 Due to other funds 7,438 566 - 38,000 Due to other governments - - - - Other liabilities 17,215 - - 4,382 Advance from other fund 30,000 - - 14,418 Revenues collected in advance - - - - Deferred revenue - - - - Interfund loan payable - - - -

- 276,017 223,002 32,623 63,188

Fund balances Nonspenable Restricted - 124,082 - 31,421 Committed - - 84,810 - Assigned - - - - Unassigned - - - - Debt services - - - - Capital Projects funds - - - - Total fund balance - 124,082 84,810 31,421

Total liabilities & fund balances 276,017$ 347,084$ 117,433$ 94,609$

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Capital Projects FundsTotal Model Toxic 2009 KCLTGO 2009B Bethel KC LTGO Poplars

Special Control Act BAN Projects KCLTGO Corridor 2010 Cap ProjRevenues 302 331 BAN 332 Dev Proj 333 335 336

12,076,153$ -$ 1,066$ -$ 63,558$ 1,763$ 20,989$ - - - - - -

8,751,585 1,504,225 - - - - - - - - - -

84,197 - - - - - - - - - - -

32,345 - - - - - 7,173 3,796,011 - 44,845 - - -

- - - - - - 522,482 - - - - -

3,563,926 - - - - - - - - - - - - - - - - - - - - - - -

28,826,699$ 1,504,225$ 45,911$ -$ 63,558$ 1,763$ 28,163$

1,906,872 - 10,813 - - - 534 523,081 1,504,225 - - - - 896,056 - - - - - 690,751 - - - - - 194,418 - - - - -

5,489 - - - - - 3,895,087 - - - - - 6,637 1,150,000 - - - - - 9,261,754 1,504,225 10,813 - - - 7,171

- 18,127,066 - 35,098 - 63,558 1,763 20,992 1,437,879 - - - - -

- - - - - - - - - - - - - - - - - - - - - - - -

19,564,945 - 35,098 - 63,558 1,763 20,992 28,826,699$ 1,504,225$ 45,911$ -$ 63,558$ 1,763$ 28,163$

111



Juvenile Silverdale Parks Capital JailServices Projects Improvement Contruction

Facility 352 363 382 383ASSETSCash and Cash equivalents 38,864$ 128,363$ 310,862$ 2,831$ Deposits with fiscal agents - - Investments - - 1,927,649 3 Receivables(net) - - - - Property taxes - - - - Special assessments - - - - Accounts - - - - Notes/Contracts - - 2,143,466 - Others - - - - Due from other funds - 18,149 - - Due from other governments - - 77,290 - Interfund loan receivable - - - - Prepayments - - - - Advance to other funds - - - - Total assets 38,864$ 146,512$ 4,459,267$ 2,835$

LIABILITIES AND FUND BALANCES Liabilities Accounts payable (43) - 52,348 - Due to other funds - - - - Due to other governments - - - - Other liabilities - - - - Advance from other fund - - - - Revenues collected in advance - - - - Deferred revenue - - 2,143,466 - Interfund loan payable - - - -

- (43) - 2,195,814 -

Fund balances Nonspenable Restricted 38,907 146,512 2,263,453 2,835 Committed - - - - Assigned - - - - Unassigned - - - - Debt services - - - - Capital projects funds - - - - Total fund balance 38,907 146,512 2,263,453 2,835

Total liabilities & fund balances 38,864$ 146,512$ 4,459,267$ 2,835$

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Debt ServiceCapital Projects funds funds

KC Capital 2002A Administrative Kingston 2006 LTGO Total RefundingProject Facility Building Village Greens Bond Project Capital Bond 1996

2001 384 Project 386 387 389 392 Projects 1996 230

-$ 1,271$ 199,854$ -$ 2,711$ 772,132$ 95,147$ - - - - - - -

210,286 25,962 160,787 - - 3,828,913 - - - - - - - - - - - - - - - - - - - - - - - - - - - 7,173 - - - - - - 2,188,311 - - - - - - - - - - - - - 18,149 - - - - - - 77,290 - - - - - - - - - - - - - - - - - - - - - -

210,286$ 27,233$ 360,641$ -$ 2,711$ 6,891,969$ 95,147$

- 149 6,098 - - 69,898 - - - - - - 1,504,225 - - - - - - - - - 13 - - 0 13 - - - - - - - - - - - - - - - - - - - - 2,150,103 - - - - - - - -

- 162 6,098 - 0 3,724,239 -

210,286 27,072 354,544 - 2,711 3,167,731 95,147 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

210,286 27,072 354,544 - 2,711 3,167,731 95,147 210,286$ 27,233$ 360,641$ -$ 2,711$ 6,891,969$ 95,147$

113



Debt Service fundsKC2009 KC 2009B KC2009 KC LTGO KC LTGO

LTGO BAN Key Bank Line RSV Tree Tops 2010 2011 Refund231 232 233 235 236

ASSETSCash and Cash equivalents 25,000$ 8,291$ -$ 78,910$ -$ Deposits with fiscal agents - - - - - Investments - - - - - Receivables(net) - - - - - Property taxes - - - - - Special assessments - - - - - Accounts - - - - - Notes/Contracts - - - - - Others - - - - - Due from other funds - - - - - Due from other governments - - - - - Interfund loan receivable - - - - - Prepayments - - - - - Advance to other funds - - - - Total assets 25,000$ 8,291$ -$ 78,910$ -$

LIABILITIES AND FUND BALANCESLiabilitiesAccounts payable - - - - - Due to other funds - - - - - Due to other governments - - - - - Other liabilities - 1,972 - - - Advance from other fund - - - - - Revenues collected in advance - - - - - Deferred revenue - - - - - Interfund loan payable - - - - - - 1,972 - - -

Fund balancesNonspenableRestricted 25,000 6,319 - 78,910 - Committed - - - - Assigned - - - - Unassigned - - - - Debt services - - - - Capital projects funds - - - - Total fund balance 25,000 6,319 - 78,910 -

Total liabilities & fund balances 25,000$ 8,291$ -$ 78,910$ -$

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Debt Service fundsSpecial K.C.G.O. K.C. G.O. K.C. Bond G.O.Bond G.O. Bond G.O. Bond

Assessments Bonds 1999 Bonds 1999 B 2000 2001 & Ref 2002A 2003265/266 281 282 283 284 286 287

46,259$ 26,974$ 58,093$ 26,842$ 113,081$ 69,973$ 5,178$ 15,000 - - - - - -

- - - - - 254 - - - - - - - - - - - - - - -

12,291 - - - - - - - - - - - - - - - 670,000 - - 9,260,000 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

73,551$ 26,974$ 728,093$ 26,842$ 113,081$ 9,330,228$ 5,178$

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

15,000 - - - - - - 12,291 - - - - - -

- - - - - - - 27,291 - - - - - -

9,260,000

46,259 26,974 728,093 26,842 113,081 70,228 5,178 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

46,259 26,974 728,093 26,842 113,081 9,330,228 5,178 73,551$ 26,974$ 728,093$ 26,842$ 113,081$ 9,330,228$ 5,178$

115



Debt Service funds G.O. Bond G.O. Bond Road G.O. Bond G.O.Bond

2003B 2004 Improvement 2005 2006288 289 Guaranty 290 291 292

ASSETSCash and Cash equivalents 8,740$ 17,287$ 2,737$ 3,337$ 121$ Deposits with fiscal agents - - - - - Investments - - - - - Receivables(net) - - - - - Property taxes - - - - - Special assessments - - - - - Accounts - - - - - Notes/Contracts - - - - - Others - - - - - Due from other funds - - - - - Due from other governments - - - - - Interfund loan receivable - - - - - Prepayments - - - - - Advance to other funds - - - - - Total assets 8,740$ 17,287$ 2,737$ 3,337$ 121$

LIABILITIES AND FUND BALANCESLiabilitiesAccounts payable - - - - - Due to other funds - - - - - Due to other governments - - - - - Other liabilities - - - - - Advance from other fund - - - - - Revenues collected in advance - - - - - Deferred revenue - - - - - Interfund loan payable - - - - - - - - - -

Fund balancesNonspenableRestricted 8,740 17,287 2,737 3,337 121 Committed - - - - - Assigned - - - - - Unassigned - - - - - Debt services - - - - - Capital projects funds - - - - - Total fund balance 8,740 17,287 2,737 3,337 121

Total liabilities & fund balances 8,740$ 17,287$ 2,737$ 3,337$ 121$

116

of 18

Total Total NonmajorDebt Governmental

Service Funds

585,969$ 13,434,255$ 15,000 15,000

254 12,580,753 - - - 84,197

12,291 12,291 - 39,518

9,930,000 15,914,322 - - - 540,631 - 3,641,216 - - - - - -

10,543,515$ 46,262,184$

- 1,976,770 - 2,027,306 - 896,056

1,972 692,735 - 194,418

15,000 20,489 12,291 6,057,481

- 1,150,000 29,263 13,015,256

9,260,000 9,260,000 1,254,252 22,549,049

- 1,437,879 - - - - - - -

10,514,252 33,246,928 10,543,515$ 46,262,184

117


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

Emergency Law KPREP ElectionCencom Services Library Fund Reserve

103 104 105 106 111REVENUES:

Property taxes 262$ -$ -$ -$ -$ Retail sales & use taxes 3,271,347 - - - - Other taxes 2,439,531 - - - - Licenses and permits - - - - - Intergovernmental 1,637,696 244,502 - 1,068,228 22,645 Charges for services 79,985 - 86,546 - 189,547 Fines & forfeits - - - - - Investment earnings 15,716 0 - - - Miscellaneous 189,917 19,687 140 117,174 -

Total revenues 7,634,453 264,188 86,686 1,185,403 212,192

EXPENDITURES:Current: General government - - - - 229,421 Judicial Services - - 85,384 - - Public safety 7,180,234 501,274 - 1,193,064 - Physical Environment - - - - - Transportation - - - - - Health & Human Services - - - - - Economic Environment - - - - - Culture & recreation - - - - -

Debt service Principal - - - - - Interest and other charges 80 - - - -

Capital outlay 38,035 30,199 - 5,741 - Total expenditures 7,218,349 531,474 85,384 1,198,805 229,421

Excess(deficiency) of revenues over expenditures 416,104 (267,286) 1,301 (13,403) (17,229)

OTHER FINANCING SOURCES (USES):Proceeds from BANS - - - - - Proceeds from GO BondsProceeds from Refunding BondsPayment to bond refunding escrow agentSale of capital assets - Transfers in 649,814 215,386 - 36,304 - Transfers out (502,000) - - - - Premiums on bonds

Total other financing sources & uses 147,814 215,386 - 36,304 - SPECIAL ITEMS:Sales of pledged assets -

Net change in fund balance 563,917 (51,901) 1,300 22,900 (17,230) Fund balances-beginning 1,990,662 4,226 167,388 15,343 133,857 Prior period adjustment

Fund balances-ending 2,554,579$ (47,674)$ 168,688$ 38,244$ 116,627$



118

of 16

Special Revenue FundsAuditor's Housing Boating Noxious Treasurer's Electronic Veteran's

Document Affordability Westnet Safety Weed M&O Technology ReliefPreserv.112 113 114 Improve.117 Control 120 121 Excise 123 124

-$ -$ -$ -$ -$ -$ -$ 304,780$ - - - - - - - - - - - - - - - 420 - - - - - - - -

95,624 - 121,051 104,496 470 - - 1,044 174,615 1,447,603 - - 213,494 143,948 - -

- - 225,624 - - - - - - - 5,620 819 1,468 5,046 1,249 1,540 - - 113,267 - 1,652 1,494 - 11,857

270,240 1,447,603 465,562 105,315 217,082 150,488 1,249 319,641

248,255 1,271,190 - - - 102,838 18,225 - - - - - - - - - - - 461,454 35,061 - - - - - - - - 177,093 - - - - - - - - - - - - - - - - - - 343,508 - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - -

248,255 1,271,190 461,454 35,061 177,093 102,838 18,225 343,508

21,985 176,414 4,108 70,254 39,989 47,650 (16,976) (23,867)

- - - - - - - -

- - - - - - - - - - - (124,691) - - - - -

- - (124,691) - - - - -

21,985 176,414 (120,582) 70,254 39,988 47,650 (16,976) (23,869) 353,055 2,271,383 956,970 138,192 182,853 844,855 197,172 254,583

375,039$ 2,447,797$ 836,387$ 208,446$ 222,841$ 892,505$ 180,197$ 230,714$

119



Expert Conservation Community Kitsap KitsapWitness Futures Service County County

125 Tax 129 130 Stadium 132 Fair 133REVENUES:

Property taxes -$ 1,240,790$ -$ -$ -$ Retail sales & use taxes - - - 303,248 - Other taxes - 1,706 - - - Licenses and permits - - - - - Intergovernmental - 4,287 - - - Charges for services - - 48,081 - - Fines & forfeits 26,213 - 20,816 - - Investment earnings - 2,686 - - - Miscellaneous - - - - 80,376

Total revenues 26,213 1,249,469 68,897 303,248 80,376

EXPENDITURES:Current: General government - - - - -

Judicial Services - - - - - Public safety - - - - - Physical Environment - - - - - Transportation - - - - - Health & Human Services - - 60,983 - - Economic Environment - - - - - Culture & recreation - - - 257,391 50,528

Debt service - - Principal - - - - - Interest and other charges - 753 - - -

Capital outlay - - - - - Total expenditures - 753 60,983 257,391 50,528 Excess(deficiency) of revenues over expenditures 26,213 1,248,717 7,914 45,858 29,848

OTHER FINANCING SOURCES (USES): Proceeds from BANS - - - - -

Proceeds from GO Bonds - Proceeds from Refunding Bonds - Payment to bond refunding escrow agent - Sale of capital assets -

Transfers in - - - - - Transfers out - (1,087,602) - (21,936) - Premiums on bonds - Total other financing sources & uses - (1,087,602) - (21,936) - SPECIAL ITEMS:Sales of pledged assetsNet change in fund balance 26,213 161,115 7,914 23,922 29,848

Fund balances-beginning 9,204 850,594 70,219 84,352 17,052 Prior period adjustment

Fund balances-ending 35,416$ 1,011,709$ 78,133$ 108,273$ 46,900$



120

of 16

Prisoner SIU Kitsap Anti- Family Trial Court Public Pooling Commissary Revenue SAIVS Profiteering Court Improvement Defense Fd Fees

135 136 139 Revolving 141 Services 142 143 144 145

-$ -$ -$ -$ -$ -$ -$ -$ - - - - - - - - - - - - - - - - - - - - 14,412 - - - - 13,976 46,897 - - 95,292 270,201 - - - 5,783 - - - - - - 66,217 - 3,925 - - - - - 3,677 - - - - - 303,850

175,492 (28) 1,000 - - - - - 175,492 83,841 53,680 3,925 14,412 95,292 270,201 303,850

- - 46,949 - - - - 261,091 - - - - 14,049 - 197,273 -

139,734 25,673 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - -

139,734 25,673 46,949 - 14,049 - 197,273 261,091

35,758 58,169 6,731 3,925 363 95,292 72,928 42,759

- - - - - - - - - - -

- - - - - - - -

- - - - - - - - - (107,978) - - - - - -

- - - - (107,978) - - - - - -

35,758 (49,809) 6,731 3,925 363 95,292 72,928 42,759 19,418 599,683 30,620 5,907 65,139 92,652 65,148 340,491

55,176$ 549,873$ 37,351$ 9,832$ 65,502$ 187,944$ 138,076$ 383,250$


121



GMA Park GMA Trans. County Parks Pt No Point Impact Fees Impact Fees Acquisition & Lighthouse

146 C Kitsap 148 Develop. 150 155REVENUES:

Property taxes -$ -$ -$ -$ Retail sales & use taxes - - - - Other taxes - - - - Licenses and permits - - - - Intergovernmental - - - - Charges for services 177,256 - 56,262 - Fines & forfeits - - 1,037 - Investment earnings - 43 3,678 - Miscellaneous - - 348,772 22,930

Total revenues 177,256 43 409,748 22,930

EXPENDITURES:Current: General government - - - -

Judicial Services - - - - Public safety - - - - Physical Environment - - - - Transportation - - - - Health & Human Services - - - - Economic Environment - - - - Culture & recreation - - 581,488 18,684

Debt service - - Principal - - - - Interest and other charges - - - -

Capital outlay - - 11,781 - Total expenditures - - 593,269 18,684 Excess(deficiency) of revenues over expenditures 177,256 43 (183,520) 4,246

OTHER FINANCING SOURCES (USES): Proceeds from BANS - - - -

Proceeds from GO Bonds - - Proceeds from Refunding Bonds - - Payment to bond refunding escrow agent - - Sale of capital assets - -

Transfers in 90,000 - - - Transfers out (209,446) - - - Premiums on bonds - - Total other financing sources & uses (119,446) - - -

SPECIAL ITEMS:Sales of pledged assets

Net change in fund balance 57,810 43 (183,520) 4,246 Fund balances-beginning 17,376 7,471 565,004 44,099 Prior period adjustment

Fund balances-ending 75,186$ 7,513$ 381,484$ 48,346$



122

of 16

Special Revenue FundsCrime Regional Recovery Dispute CDBG Home Kitsap Community

Prevention Septic Loans Center Resolution Entitlement Entitlement Abatement Development159 Prog 161 162 Center 163 164 166 167 168

-$ -$ -$ -$ -$ -$ -$ -$ - - - - - - - - - - - - - - - -

2,790 - - - - - - 2,404,583 - 354,785 1,137,821 - 1,276,470 960,336 - 836,650 - - 94,180 38,395 - - - 1,528,418

24,262 - - - - - - - 623 - 10,344 - 185 12,126 - -

4,930 - 181,599 - 9,304 83,486 - 903 32,604 354,785 1,423,944 38,395 1,285,960 1,055,948 - 4,770,554

- - - - - - - - - - - 38,395 - - - -

51,630 - - - - - - - - 354,434 - - - - 711 2,405,094 - - - - - - - - - - 2,287,148 - - - - - - - - - 1,313,390 1,160,692 - 3,402,180 - - - - - - - -

- - - - - - - - - - - - - - - - - - 8,166 - - - - - - - -

51,630 354,434 2,287,148 38,395 1,313,390 1,160,692 711 5,815,439

(19,026) 351 (863,204) - (27,430) (104,744) (711) (1,044,886)

- - - - - - - - - - - - - - - - - - -

- - 739,862 - - - - 1,471,193 - (351) - - - - - -

- - - (351) 739,862 - - - - 1,471,193

(19,026) 0 (123,342) - (27,430) (104,744) (711) 426,307 103,137 97 1,782,556 10,958 34,690 122,869 146,436 (412,654)

4,844 84,112$ 97$ 1,659,214$ 10,958$ 7,261$ 18,125$ 145,725$ 18,497$

123



Jail & Service Service Service ServiceJuvenile Area 1 RD Area 2 RD Area 3 RD Area 4 RD

Sale Tax 171 Impact Fee 173 Impct Fee 174 Impact Fee 175 Impact Fee 176REVENUES:

Property taxes -$ -$ -$ -$ -$ Retail sales & use taxes 3,271,712 - - - - Other taxes - - - - - Licenses and permits - - - - - Intergovernmental - - - - - Charges for services - 59,512 102,028 15,941 27,440 Fines & forfeits - - - - - Investment earnings - 1,329 1,921 480 989 Miscellaneous - - - - -

Total revenues 3,271,712 60,840 103,949 16,420 28,428

EXPENDITURES:Current: General government - - - - -

Judicial Services - - - - - Public safety - - - - - Physical Environment - - - - - Transportation - - - - - Health & Human Services - - - - - Economic Environment - - - - - Culture & recreation - - - - -

Debt service - - - - - Principal - - - - - Interest and other charges 221 - - - -

Capital outlay - - - - - Total expenditures 221 - - - - Excess(deficiency) of revenues over expenditures 3,271,491 60,840 103,949 16,420 28,428

OTHER FINANCING SOURCES (USES): Proceeds from BANS - - - - -

Proceeds from GO Bonds - - - - - Proceeds from Refunding Bonds - - - - - Payment to bond refunding escrow agent - - - - - Sale of capital assets - - - - -

Transfers in - - - - - Transfers out (3,154,644) (507,000) (650,000) (207,000) (256,000) Premiums on bonds - - - - - Total other financing sources & uses (3,154,644) (507,000) (650,000) (207,000) (256,000)


Net change in fund balance 116,847 (446,160) (546,051) (190,580) (227,572) Fund balances-beginning 748,804 553,822 767,207 211,156 354,077 Prior period adjustment

Fund balances-ending 865,650$ 107,662$ 221,156$ 20,577$ 126,506$



124

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Regional PEG Mental Developmental Substance Youth Youth Serv Mental HealthService A. Fund Health Disabilities Abuse Commission Juvenile Non-medicaidImpact 177 179 181 182 183 184 185 188

-$ -$ 580,505$ 100,000$ -$ -$ -$ -$ - - - - - - - - - - - - - - - - - - - - - - - - - - - 2,771,021 2,107,579 24,733 - 6,627,428 - - - - - - - - - - - - - - - - 756 - 5,198 - - - - 4,042 - 118,959 - 21,857 - - 3,148 - 756 118,959 585,703 2,892,878 2,107,579 24,733 3,148 6,631,471

- - - - - - - - - - - - - - - - - - - - - 24,733 3,004 - - - - - - - - - - - - - - - - - - - 42,245 3,094,729 1,256,075 - - 6,571,992 - 44,720 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- 44,720 42,245 3,094,729 1,256,075 24,733 3,004 6,571,992 - -

756 74,239 543,459 (201,851) 851,504 - 144 59,479 -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - 18,564 - - 7,500 - - (450,000) - (870,177) - - - - - - -

- - (450,000) - (851,613) - - 7,500

756 74,239 93,459 (201,851) (109) - 144 66,979 206,463 55,410 1,106,893 1,444,420 268,423 - 8,975 768,437

207,220$ 129,649$ 1,200,352$ 1,242,569$ 268,314$ -$ 9,119$ 835,416$


125



Special Revenue FundsCommute Area JTPA Employment

Trip Agency On Admin TrainingReduction 189 Aging 190 191 Fund 192

REVENUES:Property taxes -$ -$ -$ -$ Retail sales & use taxes - - - - Other taxes - - - - Licenses and permits - - - - Intergovernmental - 3,298,126 2,438,699 1,360,832 Charges for services - - - - Fines & forfeits 15 - - - Investment earnings - - - - Miscellaneous 63,618 2,612 - 243,156

Total revenues 63,633 3,300,738 2,438,699 1,603,988

EXPENDITURES: Current: General government - - - -

Judicial Services - - - - Public safety - - - - Physical Environment - - - - Transportation 38,443 - - - Health & Human Services - 3,269,842 2,438,699 1,606,724 Economic Environment - - - - Culture & recreation - - - -

Debt service - - - Principal - - - - Interest and other charges - - - -

Capital outlay - - - - Total expenditures 38,443 3,269,842 2,438,699 1,606,724 Excess(deficiency) of revenues - over expenditures 25,190 30,896 - (2,736)

OTHER FINANCING SOURCES (USES): - Proceeds from BANS - - - -

Proceeds from GO Bonds - - - Proceeds from Refunding Bonds - - - Payment to bond refunding escrow agent - - - Sale of capital assets - - -

Transfers in - 22,449 - - Transfers out - - - - Premiums on bonds - - - Total other financing sources & uses - 22,449 - -

SPECIAL ITEMS:Sales of pledged assets -

Net change in fund balance 25,190 53,345 - (2,736) Fund balances-beginning 83,732 539,823 - 126,819 Prior period adjustment - -

Fund balances-ending 108,922$ 593,168$ -$ 124,082$


126

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Special Revenue Funds Capital Projects funds

K. Regional ARRA Total Model Toxic 2009 KCLTGO 2009B Bethel KCLTGOCoordinating EECBG Special Control Act Ban Projects LTGO Ban Corridor Dev 2010 BondCouncil 193 195 Revenues 302 331 332 Project 333 335

-$ -$ 2,226,337$ -$ -$ -$ -$ -$ - - 6,846,307 - - - - - - - 2,441,657 - - - - - - - 2,421,785 - - - - -

128,761 413,428 27,463,077 - - - - - 90,871 286 4,580,188 - - - - -

- - 368,108 - - - - - - - 383,385 10,787 2,710 - - -

3,525 37,652 1,858,478 - - - - - 223,157 451,366 48,589,320 10,787 2,710 - - -

- - 2,177,969 - - - - - - - 335,101 - - - - - - - 9,615,860 - - - - - - - 2,937,331 - 209,088 - - - - - 38,443 - - - - - - - 20,971,943 - - - - -

337,917 484,390 6,743,289 - - - - - - - 908,090 - - - - -

- - - - - - - - - - - - - 9,219 - 159,182 102,871 - - - 23,846 109,602 - - - - -

337,917 508,236 43,846,848 - 368,270 102,871 - -

(114,760) (56,870) 4,742,472 10,787 (365,560) (102,871) - -

- - - - 197,872 - - - - -

- - - - -

116,803 - 3,367,875 - - - - - - - (8,148,824) (1,504,225) - (240) - -

- - 116,803 - (4,780,949) (1,504,225) 197,872 (240) - -

- 166,882 102,871 2,043 (56,870) (38,485) (1,493,438) (806) (240) - -

82,768 88,291 19,598,579 1,493,438 35,904 240 63,558 1,763 4,844 -

84,810$ 31,421$ 19,564,937$ (0)$ 35,098$ -$ 63,558$ 1,763$

127



Capital Projects FundsPoplars Juvenile Silverdale Parks

Cap Project Services Projects Capital336 Facility 352 363 Improve. 382

REVENUES:Property taxes -$ -$ -$ -$ Retail sales & use taxes - - - - Other taxes - - - - Licenses and permits - - - - Intergovernmental - - - 257,751 Charges for services - - - 250,000 Fines & forfeits - - - - Investment earnings - - - 158,757 Miscellaneous 60,849 - - 56,534

Total revenues 60,849 - - 723,042


General government - - - - Judicial Services - - - - Public safety - 5,452 - - Physical Environment 39,857 - 35,413 - Transportation - - - - Health & Human Services - - - - Economic Environment - - - - Culture & recreation - - - 238,544

Debt service - - - - Principal - - - 56,534 Interest and other charges - - - 143,466

Capital outlay - 13,604 10,000 353,530 Total expenditures 39,857 19,057 45,413 792,074 Excess(deficiency) of revenues over expenditures 20,992 (19,057) (45,413) (69,032)

OTHER FINANCING SOURCES (USES): Proceeds from BANS - - - -

Proceeds from GO Bonds - - - - Proceeds from Refunding Bonds - - - - Payment to bond refunding escrow agent - - - - Sale of capital assets - - - - Transfers in - - 18,149 - Transfers out - - - - Premiums on bonds - - - - Total other financing sources & uses - - 18,149 -


Net change in fund balance 20,992 (19,057) (27,264) (69,032) Fund balances-beginning - 57,964 173,775 2,342,768 Prior period adjustment (10,283)

Fund balances-ending 20,992$ 38,907$ 146,512$ 2,263,453$


128

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Debt

Capital Projects Funds Service FundJail Capital 2002A Administrative Kingston 2006 LTGO Total K.C. G.O.

Construction Proj. 2001 Facility Proj Building Village Greens Bond Project Capital Refunding Bond383 384 386 387 389 392 Projects 1996 230

-$ -$ -$ -$ -$ -$ -$ -$ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 257,751 - - - - - - - 250,000 - - - - - - - - - - 1,508 360 1,153 - - 175,275 -

0 - - - - - 117,384 - 0 1,508 360 1,153 - - 800,410 -

- - - - - - - - - - - - - - - - - - - - - - 5,452 - - - 6,937 27,211 - - 318,506 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 599,648 - 838,192 - - - - - - - - - - 56,534 - - - - - - - 405,519 - - - 20,123 (137,655) - - 259,603 -

- - 27,060 (110,445) 599,648 - 1,883,805 -

0 1,508 (26,700) 111,598 (599,648) - (1,083,395) -

- - - - - - 197,872 - - - - - - - - - - - - - 566,865 566,865 - - - - - - - 18,149 - - - - - (204,180) - (1,708,645) - - - -

- - - - 362,685 - (925,759) -

269,753 0 1,508 (26,700) 111,598 (236,963) - (1,739,401) -

2,834 208,778 53,771 242,946 236,963 2,713 4,917,416 95,148 (10,283)

2,834$ 210,286$ 27,072$ 354,544$ (0)$ 2,713$ 3,167,732$ 95,148

129



Debt Service FundsKC2009 KC2009B KC 2010 KC 2011

LTGO BAN Key Bank LTGO Refunding231 232 235 236

REVENUES:Property taxes -$ -$ -$ -$ Retail sales & use taxes - - - - Other taxes - - - - Licenses and permits - - - - Intergovernmental - - - - Charges for services - - - - Fines & forfeits - - - 310,812 Investment earnings - - - - Miscellaneous - - 247,802 -

Total revenues - - 247,802 310,812


Judicial Services - - - - Public safety - - - - Physical Environment - - - - Transportation - - - - Health & Human Services - - - - Economic Environment - - - - Culture & recreation - - - -

Debt service - - - - Principal 2,260,292 1,657,680 1,445,000 915,000 Interest and other charges 294,034 77,272 230,233 641,650

Capital outlay - - - - Total expenditures 2,554,326 1,734,952 1,675,233 1,556,650 Excess(deficiency) of revenues over expenditures (2,554,326) (1,734,952) (1,427,430) (1,245,838)

OTHER FINANCING SOURCES (USES): Proceeds from BANS 294,034 - - -

Proceeds from GO Bonds - - - - Proceeds from Refunding Bonds - - - - Payment to bond refunding escrow agent - - - - Sale of capital assets - - - -

Transfers in 600,000 4,422 1,458,326 1,245,838 Transfers out - - - - Premiums on bonds - - - - Total other financing sources & uses 894,034 4,422 1,458,326 1,245,838

SPECIAL ITEMS:Sales of pledged assets 1,685,292 1,733,148

Net change in fund balance 25,000 2,616 30,896 0 Fund balances-beginning - 3,702 48,014 - Prior period adjustment

Fund balances-ending 25,000 6,318 78,910 0


130

of 16

Debt Service FundsSpecial GO Bond GO Bond GO Bond GO Bond GO Bond GO Bond GO BondAssessments 1999 1999B Bonds 2000 2001 & Refunding 2002A 2003 2003B265/266 281 282 283 284 286 287 288

-$ -$ -$ -$ -$ -$ -$ -$ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 241,061 - - - - - - - - - - - - - - - - - - 963 - 20,756 - - 265 - -

9,483 - - - 61,951 - - - 10,447 - 20,756 - 61,951 241,326 - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 370,000 440,000 - - - - - 310,812 14,800 645,755 - - - - - - - - - - - - - 310,812 384,800 1,085,755

10,447 - 20,756 - 61,951 (69,486) (384,800) (1,085,755)

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 386,464 1,085,758 - - (110,756) - - (525,000) - - - - - - - - - (110,756) - - (525,000) 386,464 1,085,758

10,446 (1) (90,002) - 61,951 (594,486) 1,664 3 35,813 26,975 818,093 26,842 51,130 9,924,714 3,514 8,737

- - 46,258 26,974 728,091 26,842$ 113,081$ 9,330,228$ 5,178$ 8,740$

131



GO Bond Road2004 Improvement289 Guaranty 290

REVENUES:Property taxes -$ -$ Retail sales & use taxes - - Other taxes - - Licenses and permits - - Intergovernmental - - Charges for services - - Fines & forfeits - - Investment earnings - - Miscellaneous - -

Total revenues - -

EXPENDITURES:Current: General government - -

Judicial Services - - Public safety - - Physical Environment - - Transportation - - Health & Human Services - - Economic Environment - - Culture & recreation - -

Debt service - - Principal 485,000 - Interest and other charges 648,823 -

Capital outlay - - Total expenditures 1,133,823 - Excess(deficiency) of revenues over expenditures (1,133,823) -

OTHER FINANCING SOURCES (USES): Proceeds from BANS - -

Proceeds from GO Bonds - - Proceeds from Refunding Bonds - - Payment to bond refunding escrow agent - - Sale of capital assets - -

Transfers in 1,133,824 - Transfers out - - Premiums on bonds - - Total other financing sources & uses 1,133,824 -


Net change in fund balance 1 - Fund balances-beginning 17,285 2,737 Prior period adjustment

Fund balances-ending 17,286$ 2,737$


132

of 16

LTGO LTGO Total Total Nonmajor2005 2006 Debt Governmental

Refunding 291 292 Service Funds

-$ -$ -$ 2,226,337$ - - - 6,846,307 - - - 2,441,657 - - - 2,421,785 - 22,186 263,247 27,984,075 - - - 4,830,188 - - 310,812 678,920 - - 21,984 580,644 - - 319,236 2,295,098

- 22,186 915,280 50,305,010

- - - 2,177,969 - - - 335,101 - - - 9,621,312 - - - 3,255,837 - - - 38,443 - - - 20,971,943 - - - 6,743,289 - - - 1,746,282 - - - -

1,070,000 935,000 9,577,972 9,634,506 876,500 685,070 4,424,948 4,839,686

- - - 369,205 1,946,500 1,620,070 14,002,920 59,733,574

(1,946,500) (1,597,884) (13,087,641) (9,428,564)

- - 294,034 491,906 - - - - - - - - - - - - - - - 566,865

1,946,500 1,597,893 9,459,025 12,845,048 - - (635,756) (10,493,225) - - - -

1,946,500 1,597,893 9,117,302 3,410,594

3,418,440 3,688,193 (1) 8 (551,906) (2,329,777)

3,337 112 11,066,153 35,582,148 - (5,440)

3,336$ 120$ 10,514,246 33,246,928$

133


Cencom Fund 103Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Property taxes -$ -$ 262$ 262$ Retail sales & use taxes 3,216,906 3,216,906 3,271,347 54,441 Other taxes 2,373,046 2,373,046 2,439,531 66,485 Intergovernmental 1,638,741 1,638,741 1,637,696 (1,045) Charges for services 77,120 77,120 79,985 2,865 Investment earnings 18,000 18,000 15,716 (2,284) Miscellaneous 173,385 173,385 189,917 16,532

Total revenues 7,497,198 7,497,198 7,634,453 137,255


Public safety 8,051,425 8,051,425 7,180,234 871,191 Physical Environment - - - - Debt service:

Interest and other charges 80 (80) Capital outlay 108,600 108,600 38,035 70,565

Total expenditures 8,160,025 8,160,025 7,218,349 941,676 Excess(deficiency) of revenues over expenditures (662,827) (662,827) 416,104 1,078,931

OTHER FINANCING SOURCES (USES):Transfers in 649,814 649,814 649,814 - Transfers out (502,000) (502,000) (502,000) -

Total other financing sources & uses 147,814 147,814 147,814 - Net change in fund balance (515,013) (515,013) 563,918 1,078,931

Fund balances-beginning 1,990,662 1,990,662 1,990,662 - Prior period adjustments - - - - Fund balances-ending 1,475,649$ 1,475,649$ 2,554,580$ 1,078,931$

Budget

134


Emergency Services Fund 104Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Intergovernmental 209,681 209,681 244,502 34,821 Charges for services - - - - Investment earnings - - 0 0 Miscellaneous 38,000 38,000 19,687 (18,313)

Total revenues 247,681 247,681 264,188 16,507


Public safety 463,067 463,067 501,274 (38,207) Capital Outlay - 30,199 (30,199) Total expenditures 463,067 463,067 531,474 (68,407)

Excess(deficiency) of revenues over expenditures (215,386) (215,386) (267,286) (51,900)

OTHER FINANCING SOURCES (USES):

Sale of assets - - - - Transfers in 215,386 215,386 215,386 - Transfers out - - - -

Total other financing sources & uses 215,386 215,386 215,386 - Net change in fund balance - - (51,900) (51,900)

Fund balances-beginning 4,226 4,226 4,226 0 Prior period adjustments - - - - Fund balances-ending 4,226$ 4,226$ (47,673)$ (51,899)$

Budget

135


Law Library Fund 105Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Charges for services 96,350 96,350 86,546 (9,804) Miscellaneous - - 140 140

Total revenues 96,350 96,350 86,686 (9,664)


Judicial Services 90,182 90,182 85,384 4,798 Public safety - - - - Total expenditures 90,182 90,182 85,384 4,798

Excess(deficiency) of revenues over expenditures 6,168 6,168 1,301 (4,867)

OTHER FINANCING SOURCES (USES):Transfers in - - - -

Total other financing sources & uses - - - - Net change in fund balance 6,168 6,168 1,301 (4,867)

Fund balances-beginning 167,388 167,388 167,388 (0) Prior period adjustments - - - - Fund balances-ending 173,556$ 173,556$ 168,689$ (4,867)$

Budget

136


KPREP Fund 106Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Intergovernmental 992,322$ 1,192,322$ 1,068,228$ (124,094)$ Charges for services - - - - Investment earnings - - - - Miscellaneous 10,000 10,000 117,174 107,174

Total revenues 1,002,322 1,202,322 1,185,403 (16,919)


Public safety 1,002,322 1,202,322 1,193,064 9,258 Physical Environment - - - - Capital outlay - - 5,741 (5,741)

Total expenditures 1,002,322 1,202,322 1,198,805 3,517 Excess(deficiency) of revenues over expenditures - - (13,403) (13,403)

OTHER FINANCING SOURCES (USES):Transfers in - - 36,304 36,304 Transfers out - - - -

Total other financing sources & uses - - 36,304 36,304 Net change in fund balance - - 22,901 22,901

Fund balances-beginning 15,340 15,340 15,343 3 Prior period adjustments - - - - Fund balances-ending 15,340$ 15,340$ 38,245$ 22,905$

Budget

137


Election Reserve Fund 111Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:

Intergovernmental -$ -$ 22,645$ 22,645$ Charges for services 220,000 220,000 189,547 (30,453) Fines & forfeits - - - - Investment earnings - - - - Miscellaneous - - - -

Total revenues 220,000 220,000 212,192 (7,808)

EXPENDITURES:Current: General government 219,331 219,331 229,421 (10,090)

Judicial Services - - - - Public safety - - - - Capital outlay - - - -

Total expenditures 219,331 219,331 229,421 (10,090) Excess(deficiency) of revenues over expenditures 669 669 (17,229) (17,898)

OTHER FINANCING SOURCES (USES):Refunding bonds issued - - - - Transfers out - - - - Total other financing sources & uses - - - -

Net change in fund balance 669 669 (17,229) (17,898) Fund balances-beginning 133,857 133,857 133,857 - Prior period adjustments - - - - Fund balances-ending 134,526$ 134,526$ 116,628$ (17,898)$

Budget

138


Auditor's Document Preservation Fund 112Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Intergovernmental 90,000$ 90,000$ 95,624$ 5,624$ Charges for services 151,200 151,200 174,615 23,415

Total revenues 241,200 241,200 270,240 29,040

EXPENDITURES:Current: General government 305,221 305,221 248,255 56,966

Total expenditures 305,221 305,221 248,255 56,966 Excess(deficiency) of revenues over expenditures (64,021) (64,021) 21,985 86,006

OTHER FINANCING SOURCES (USES):Refunding bonds issued - - - - Capital -related debt issued - - - -

Total other financing sources & uses - - - - Net change in fund balance (64,021) (64,021) 21,985 86,006


Budget

139


Housing Affordability Fund 113Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Charges for services 1,175,000 1,175,000 1,447,603 272,603

Total revenues 1,175,000 1,175,000 1,447,603 272,603

EXPENDITURES:Current: General government 1,560,601 1,560,601 1,271,190 289,411

Total expenditures 1,560,601 1,560,601 1,271,190 289,411 Excess(deficiency) of revenues over expenditures (385,601) (385,601) 176,414 562,015



Fund balances-beginning 2,271,383 2,271,383 2,271,383 0 Prior period adjustments - - - - Fund balances-ending 1,885,782$ 1,885,782$ 2,447,797$ 562,015$

Budget

140


Westnet Fund 114Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Intergovernmental 225,000$ 225,000$ 121,051$ (103,949)$ Fines & forfeits 90,000 90,000 225,624 135,624 Investment earnings 11,000 11,000 5,620 (5,380) Miscellaneous 40,000 50,205 113,267 63,062

Total revenues 366,000 376,205 465,562 89,357


Public safety 794,350 804,555 461,454 343,101 Physical Environment - - - - Capital outlay 60,000 60,000 - 60,000


OTHER FINANCING SOURCES (USES):Transfers in 50,000 50,000 - (50,000) Transfers out (180,000) (180,000) (124,691) 55,310

Total other financing sources & uses (130,000) (130,000) (124,691) 5,310 Net change in fund balance (618,350) (618,350) (120,582) 497,768


Budget

141


Boating Safety Improvement Fund 117Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Intergovernmental 81,438$ 81,438$ 104,496$ 23,058$ Investment earnings 1,000 1,000 819 (181)

Total revenues 82,438 82,438 105,315 22,877


Public safety 63,500 63,500 35,061 28,439 Captial Outlay 10,000 10,000 - 10,000

Total expenditures 73,500 73,500 35,061 38,439 Excess(deficiency) of revenues over expenditures 8,938 8,938 70,254 61,316

OTHER FINANCING SOURCES (USES):Sale of capital assets - - - - Transfers out - - - -

Total other financing sources & uses - - - - Net change in fund balance 8,938 8,938 70,254 61,316


Budget

142


Noxious Weed Control Fund 120Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Intergovernmental -$ -$ 470$ 470$ Charges for services 210,080 210,080 213,494 3,414 Investment earnings - - 1,468 1,468 Miscellaneous - - 1,652 1,652

Total revenues 210,080 210,080 217,082 7,002


Physical Environment 225,798 225,798 177,093 48,705 Total expenditures 225,798 225,798 177,093 48,705

Excess(deficiency) of revenues over expenditures (15,718) (15,718) 39,989 55,707

OTHER FINANCING SOURCES (USES):Refunding bonds issued - - - - Capital -related debt issued - - - -


Fund balances-beginning 182,853 182,853 182,853 (0) Prior period adjustments - - - - Fund balances-ending 167,135$ 167,135$ 222,842$ 55,707$

Budget

143


Treasurer's M&O 121Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Charges for services 80,000$ 80,000$ 143,948$ 63,948$ Investment earnings 9,700 9,700 5,046 (4,654) Miscellaneous 1,200 1,200 1,494 294

Total revenues 90,900 90,900 150,488 59,588

EXPENDITURES:Current: General government 87,185 87,185 102,838 (15,653)

Total expenditures 87,185 87,185 102,838 (15,653) Excess(deficiency) of revenues over expenditures 3,715 3,715 47,650 43,935




Budget

144


Electronic Technology Excise Fund 123Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Intergovernmental -$ -$ -$ -$ Investment earnings 2,400 2,400 1,249 (1,151)

Total revenues 2,400 2,400 1,249 (1,151)

EXPENDITURES:Current: General government 197,400 197,400 18,225 179,175

Total expenditures 197,400 197,400 18,225 179,175 Excess(deficiency) of revenues over expenditures (195,000) (195,000) (16,976) 178,024


Total other financing sources & uses - - - - Net change in fund balance (195,000) (195,000) (16,976) 178,024


Budget

145


Veteran's Relief Fund 124Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Property taxes 320,000$ 320,000$ 304,780$ (15,220)$ Other taxes - - 420 420 Intergovernmental - - 1,044 1,044 Investment earnings 5,000 5,000 1,540 (3,460) Miscellaneous 11,857 11,857

Total revenues 325,000 325,000 319,641 (5,359)


Health & Human Services 385,000 385,000 343,508 41,492 Total expenditures 385,000 385,000 343,508 41,492

Excess(deficiency) of revenues over expenditures (60,000) (60,000) (23,867) 36,133

OTHER FINANCING SOURCES (USES):Refunding bonds issued - - - -



Budget

146


Expert Witness Fund 125Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Fines & forfeits 22,000$ 22,000$ 26,213$ 4,213$

Total revenues 22,000 22,000 26,213 4,213

EXPENDITURES:Current: General government 22,000 22,000 - 22,000

Total expenditures 22,000 22,000 - 22,000 Excess(deficiency) of revenues over expenditures - - 26,213 26,213


Total other financing sources & uses - - - - Net change in fund balance - - 26,213 26,213


Budget

147


Conservation Futures Tax Fund 129Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Property taxes 1,200,667$ 1,200,667$ 1,240,790$ 40,123$ Other taxes 2,000 2,000 1,706 (294) Intergovernmental 3,025 3,025 4,287 1,262 Investment earnings 2,401 2,401 2,686 285

Total revenues 1,208,093 1,208,093 1,249,469 41,376

EXPENDITURES:Interest and other charges - - 753 (753)

Total expenditures - - 753 (753) Excess(deficiency) of revenues over expenditures 1,208,093 1,208,093 1,248,717 40,624

OTHER FINANCING SOURCES (USES):Transfers out (1,087,602) (1,087,602) (1,087,602) -

Total other financing sources & uses (1,087,602) (1,087,602) (1,087,602) - Net change in fund balance 120,491 120,491 161,115 40,624

Fund balances-beginning 850,595 850,595 850,594 (1) Prior period adjustments - - - - Fund balances-ending 971,086$ 971,086$ 1,011,709$ 40,623$

Budget

148


Community Service Fund 130Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Charges for services 47,000$ 47,000$ 48,081$ 1,081$ Fines & forfeits 24,000 24,000 20,816 (3,184)

Total revenues 71,000 71,000 68,897 (2,103)



Excess(deficiency) of revenues over expenditures 2,355 2,355 7,914 5,559




Budget

149


Kitsap County Stadium Fund 132Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Retail sales & use taxes 275,000$ 275,000$ 303,248$ 28,248$

Total revenues 275,000 275,000 303,248 28,248


Culture & recreation 253,064 253,064 257,391 (4,327) Interest on long-term debt - - - - Total expenditures 253,064 253,064 257,391 (4,327)


OTHER FINANCING SOURCES (USES):Capital -related debt issued - - - - Transfers out (21,936) (21,936) (21,936)

Total other financing sources & uses (21,936) (21,936) (21,936) - Net change in fund balance - - 23,922 23,922


Budget

150


Kitsap County Fair Fund 133Schedule of Revenues, Expenditures and Chanhes in Fund Balance - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Charges for services -$ -$ -$ -$ Miscellaneous 160,500 160,500 80,376 (80,124)$

Total revenues 160,500 160,500 80,376 (80,124)


Culture & recreation 130,500 130,500 50,528 79,972 Interest on long-term debt - - - -

Debt service - - - Principal - - - - Interest and other charges - - - -

Capital outlay - - - - Total expenditures 130,500 130,500 50,528 79,972

Excess(deficiency) of revenues over expenditures 30,000 30,000 29,848 (152)

OTHER FINANCING SOURCES (USES):Capital -related debt issued - - - - Payment to bond refunding escrow agent - - - - Sale of capital assets - - - - Transfers in - - - - Transfers out - - - - Other adjustments - - - - Transfers out - - -

Total other financing sources & uses - - - - Net change in fund balance 30,000 30,000 29,848 (152)

Fund balances-beginning 17,052 17,052 17,052 - Prior period adjustments - - - - Fund balances-ending 47,052$ 47,052$ 46,900$ (152)$

Budget

151


Prisoner Commissary Fund 135Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Miscellaneous 165,000 165,000 175,492 10,492

Total revenues 165,000 165,000 175,492 10,492

EXPENDITURES:Public safety 139,800 139,800 139,734 66 Current:Physical Environment - - - - Total expenditures 139,800 139,800 139,734 66


OTHER FINANCING SOURCES (USES): Transfers out (22,915) (22,915) - 22,915 Total other financing sources & uses - - - -

Net change in fund balance 25,200 25,200 35,758 10,558 Fund balances-beginning 19,418 19,418 19,418 0

- - - - Fund balances-ending 44,618$ 44,618$ 55,176$ 10,558$

Budget

152


SIU Revenue Fund 136Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Intergovernmental -$ -$ 13,976$ 13,976$ Fines & forfeits 55,000 55,000 66,217 11,217 Investment earnings 5,000 5,000 3,677 (1,323) Miscellaneous - - (28) (28)

Total revenues 60,000 60,000 83,841 23,841

EXPENDITURES:

Current:Public safety 60,700 60,700 25,673 35,027

Capital outlay 10,000 10,000 - 10,000 Total expenditures 70,700 70,700 25,673 45,027


OTHER FINANCING SOURCES (USES):Transfers in 50,000 50,000 - (50,000) Transfers out (200,000) (200,000) (107,978) 92,022

Total other financing sources & uses (150,000) (150,000) (107,978) 42,022 Net change in fund balance (160,700) (160,700) (49,809) 110,891

Fund balances-beginning 599,683 599,683 599,683 (0) - - - -


Budget

153


Kitsap SAIVS Fund 139Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Intergovernmental -$ 45,280$ 46,897$ 1,617$ Charges for services 6,500 6,500 5,783 (717) Interest earnings - - 1,000 1,000

Total revenues 6,500 51,780 53,680 1,900

EXPENDITURES:

Current: General government 21,346 66,626 46,949 19,677 Interest and other charges - - - -

Total Expenditures 21,346 66,626 46,949 19,677 Excess(deficiency) of revenues

Total expenditures over expenditures (14,846) (14,846) 6,731 21,577 OTHER FINANCING SOURCES (USES):Capital -related debt issued - - - - Payment to bond refunding escrow agent - - - -


Fund balances-beginning 30,621 30,621 30,620 (1) - - - -


Budget

154


Anti-Profiteering Revolving Fund 141Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Fines & forfeits 2,000$ 2,000$ 3,925$ 1,925$

Total revenues 2,000 2,000 3,925 1,925


General government 2,000 2,000 - 2,000 Total expenditures 2,000 2,000 - 2,000

Excess(deficiency) of revenues over expenditures - - 3,925 3,925

- - - - OTHER FINANCING SOURCES (USES): - - - - Capital -related debt issued - - - - Payment to bond refunding escrow agent - - - - Sale of capital assets - - - - Total other financing sources & uses - - - - Net change in fund balance - - 3,925 3,925 Fund balances-beginning 5,907 5,907 5,907 0


Budget

155


Family Court Services Fund 142Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Licenses and permits 12,800$ 12,800$ 14,412$ 1,612$

Total revenues 12,800 12,800 14,412 1,612


Judicial Services 15,706 15,706 14,049 1,657 Total expenditures 15,706 15,706 14,049 1,657

Excess(deficiency) of revenues over expenditures (2,906) (2,906) 363 3,269

OTHER FINANCING SOURCES (USES): - - - - Total other financing sources & uses - - - -

Net change in fund balance (2,906) (2,906) 363 3,269 Fund balances-beginning 65,140 65,140 65,139 (1)


Budget

156


Trial Court Improvement Fund 143Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Intergovernmental 99,000$ 99,000$ 95,292$ (3,708)$

Total revenues 99,000 99,000 95,292 (3,708)

EXPENDITURES:Judicial Services - - - - Current:Public safety - - - - Total expenditures - - - -


- - - - OTHER FINANCING SOURCES (USES): - - - - Capital -related debt issued - - - - Payment to bond refunding escrow agent - - - - Sale of capital assets (99,000) (99,000) - 99,000 Transfers in - - - - Transfers out (99,000) (99,000) - 99,000 Total other financing sources & uses (99,000) (99,000) - 99,000 Net change in fund balance - - 95,292 95,292 Fund balances-beginning 92,652 92,652 92,652 (0)


Budget

157


Public Defense Funding 144Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Intergovernmental 173,425$ 173,425$ 270,201$ 96,776$

Total revenues 173,425 173,425 270,201 96,776




OTHER FINANCING SOURCES (USES): - - - - Total other financing sources & uses - - - -

Net change in fund balance (60,112) (60,112) 72,928 133,040 Fund balances-beginning 65,148 65,148 65,148 0


Budget

158


Pooling Fees Fund 145Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012

Variance with

Original Final Actual Final BudgetREVENUES:

Investment earnings 288,000$ 288,000$ 303,850$ 15,850$ Total revenues 288,000 288,000 303,850 15,850


General government 272,523 272,523 261,091 11,432 Total expenditures 272,523 272,523 261,091 11,432


- - - - OTHER FINANCING SOURCES (USES): - - - - Payment to bond refunding escrow agent - - - - Sale of capital assets - - - - Transfers in - - - - Transfers out - - Total other financing sources & uses - - - - Net change in fund balance 15,477 15,477 42,759 27,282 Fund balances-beginning 340,491 340,491 340,491 -


Budget

159


GMA Park Impact Fees Fund 146Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Charges for services 110,000$ 110,000$ 177,256$ 67,256$ Investment earnings 208 208 - (208)

Total revenues 110,208 110,208 177,256 67,048

EXPENDITURES:General government - - - - Current:Judicial Services - - - - Total expenditures - - - -



Transfers in 90,000 90,000 90,000 - Transfers out (209,446) (209,446) (209,446) -

Total other financing sources & uses (119,446) (119,446) (119,446) - Net change in fund balance (9,238) (9,238) 57,810 67,048

Fund balances-beginning 17,376 17,376 17,376 0 - - - -


Budget

160


County Parks Acquisition & Development Fund 150Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Charges for services 35,500$ 35,500$ 56,262$ 20,762$ Fines & forfeits 1,037 1,037 Investment earnings 8,200 8,200 3,678 (4,522) Miscellaneous 409,150 409,150 348,772 (60,378)

Total revenues 452,850 452,850 409,748 (43,102)


Culture & recreation 678,984 746,417 581,488 164,929 Current:Interest on long-term debt - - - - Capital outlay - - 11,781 (11,781)

Total expenditures 678,984 746,417 593,269 153,148 Excess(deficiency) of revenues over expenditures (226,134) (293,567) (183,520) 110,047





Budget

161


Point No Point Lighthouse Fund 155Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Miscellaneous 35,000$ 35,000$ 22,930$ (12,070)$

Total revenues 35,000 35,000 22,930 (12,070)


Culture & recreation 16,750 16,750 18,684 (1,934) Total expenditures 16,750 16,750 18,684 (1,934)



Total other financing sources & uses - - - - Net change in fund balance 18,250 18,250 4,246 (14,004)


Fund balances-ending 62,349$ 62,349$ 48,346$ (14,003)$

Budget

162


Crime Prevention Fund 159Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Licenses and permits 3,000$ 3,000$ 2,790$ (210)$ Fines & forfeits 25,000 25,000 24,262 (738) Investment earnings 1,000 1,000 623 (377) Miscellaneous 1,000 2,606 4,930 2,324

Total revenues 30,000 31,606 32,604 998


Public safety 49,650 66,256 51,630 14,626 Total expenditures 49,650 66,256 51,630 14,626


OTHER FINANCING SOURCES (USES):Transfers out (55,000) (55,000) - 55,000 Total other financing sources & uses (55,000) (55,000) - 55,000

Net change in fund balance (74,650) (89,650) (19,026) 70,624 Fund balances-beginning 103,137 103,137 103,137 0


Budget

163


Regional Septic Loan Fund 161Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Intergovernmental 750,000$ 750,000$ 354,785$ (395,215)$ Fines & forfeits - - - - Investment earnings - - - - Miscellaneous - - - -

Total revenues 750,000 750,000 354,785 (395,215)


Phyical environment 745,765 745,765 354,434 391,331 Total expenditures 745,765 745,765 354,434 391,331

Excess(deficiency) of revenues over expenditures 4,235 4,235 351 (3,884)

OTHER FINANCING SOURCES (USES):Transfers out - - (351) (351)

Total other financing sources & uses - - (351) (351) Net change in fund balance 4,235 4,235 0 (4,235)

Fund balances-beginning - - 97 97 - - - -

Fund balances-ending 4,235$ 4,235$ 97$ (4,138)$

Budget

164


Recovery Center Fund 162Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Intergovernmental 1,150,000$ 1,150,000$ 1,137,821$ (12,179)$ Charges for services 400,000 400,000 94,180 (305,820) Investment earnings 15,000 15,000 10,344 (4,656) Miscellaneous 250,000 250,000 181,599 (68,401)

Total revenues 1,815,000 1,815,000 1,423,944 (391,056)


Health & Human Services 2,675,001 2,675,001 2,287,148 387,853 Economic Environment - - - - Capital outlay 10,000 10,000 - 10,000

Total expenditures 2,685,001 2,685,001 2,287,148 397,853 Excess(deficiency) of revenues over expenditures (870,001) (870,001) (863,204) 6,797

OTHER FINANCING SOURCES (USES):Transfers in 870,000 870,000 739,862 (130,138)

Total other financing sources & uses 870,000 870,000 739,862 (130,138) Net change in fund balance (1) (1) (123,342) (123,341)

Fund balances-beginning 1,782,557 1,782,557 1,782,556 (1) - - - -

Fund balances-ending 1,782,556$ 1,782,556$ 1,659,214$ (123,342)$

Budget

165


Dispute Resolution Center Fund 163Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Charges for services 50,000$ 50,000$ 38,395$ (11,605)$

Total revenues 50,000 50,000 38,395 (11,605)



Excess(deficiency) of revenues over expenditures - - - -

OTHER FINANCING SOURCES (USES):Refunding bonds issued - - - - Other adjustments - - - -

Total other financing sources & uses - - - - Net change in fund balance - - - -

Fund balances-beginning 10,958 10,958 10,958 - Prior period adjustments - - - - Fund balances-ending 10,958$ 10,958$ 10,958$ -$

Budget

166


CDBG Entitlement Fund 164Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Intergovernmental 1,384,509$ 1,384,509$ 1,276,470$ (108,039)$ Investment earnings 185 185 Miscellaneous 9,304 9,304

Total revenues 1,384,509 1,384,509 1,285,960 (98,549)


Economic Environment 1,494,509 1,494,509 1,313,390 181,119 Total expenditures 1,494,509 1,494,509 1,313,390 181,119


OTHER FINANCING SOURCES (USES):Refunding bonds issued - - - - Total other financing sources & uses - - - -

Net change in fund balance (110,000) (110,000) (27,430) 82,570 Fund balances-beginning 34,690 34,690 34,690 0 Prior period adjustments - - - - Fund balances-ending (75,310)$ (75,310)$ 7,261$ 82,571$

Budget

167


Home Entitlement Fund 166Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Intergovernmental 2,563,289$ 2,563,289$ 960,336$ (1,602,953)$ Investment earnings 12,126 12,126 Miscellaneous 177,000 177,000 83,486 (93,514)

Total revenues 2,740,289 2,740,289 1,055,948 (1,684,341)


Health & Human Services - - - - Economic Environment 2,741,289 2,741,289 1,160,692 1,580,597 Total expendituresTotal Expenditures 2,741,289 2,741,289 1,160,692 1,580,597

Excess(deficiency) of revenues over expenditures (1,000) (1,000) (104,744) (103,744)


Total other financing sources & uses - - - - Net change in fund balance (1,000) (1,000) (104,744) (103,744)

Fund balances-beginning 122,869 122,869 122,869 (0) Prior period adjustments - - - - Fund balances-ending 121,869$ 121,869$ 18,125$ (103,744)$

Budget

168


Kitsap Abatement 167Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Miscellaneous 50,000 50,000 - (50,000)

Total revenues 50,000 50,000 - (50,000)


Physical Environment 50,000 50,000 711 49,289 Total expenditures 50,000 50,000 711 49,289

Excess(deficiency) of revenues over expenditures - - (711) (711)


Total other financing sources & usesNet change in fund balance - - - - - - (711) (711)

Fund balances-beginning 146,435 146,435 146,436 1 Prior period adjustments - - - -

Fund balances-ending 146,435$ 146,435$ 145,725$ (710)$

Budget

169


Community Development 168Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Licenses and permits 2,333,318$ 2,661,617$ 2,404,583$ (257,034)$ Intergovernmental 629,287 1,286,521 836,650 (449,871) Charges for services 1,395,270 1,410,940 1,528,418 117,478 Miscellaneous 41,044 41,044 903 (40,141)

Total revenues 4,398,919 5,400,122 4,770,554 (629,568)


Physical Environment 2,274,673$ 2,787,087$ 2,405,094$ 381,994$ Economic Environment 3,603,493 3,603,493 3,402,180 201,313

Debt service:Principal 20,000 20,000 8,166 11,834 Interest and other charges - Total expenditures 5,898,166 6,410,580 5,815,439 595,141

Excess(deficiency) of revenues over expenditures (1,499,247) (1,010,458) (1,044,886) (34,428)

OTHER FINANCING SOURCES (USES):Transfers in 1,471,193 1,471,193 1,471,193 -

Total other financing sources & uses 1,471,193 1,471,193 1,471,193 - Net change in fund balance (28,054) 460,735 426,307 (34,428)

Fund balances-beginning (412,653) (412,653) (412,654) (1) Prior period adjustments - - 4,844 4,844

Fund balances-ending (440,707)$ 48,082$ 18,497$ (29,585)$

Budget

170


Jail & Juvenile Sales Tax Fund 171Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Retail sales & use taxes 3,121,821$ 3,121,821$ 3,271,712$ 149,891$ Investment earnings - - - -

Total revenues 3,121,821 3,121,821 3,271,712 149,891


Interest and other charges - - 221 (221) Total expenditures - - 221 (221)

Excess(deficiency) of revenues over expenditures 3,121,821 3,121,821 3,271,491 149,670

OTHER FINANCING SOURCES (USES):Transfers out (3,193,744) (2,890,441) (3,154,644) (264,203)

Total other financing sources & uses (3,193,744) (2,890,441) (3,154,644) (264,203) Net change in fund balance (71,923) 231,380 116,847 (114,533)

Fund balances-beginning 748,802 748,802 748,804 2 Prior period adjustments - - - - Fund balances-ending 676,879$ 980,182$ 865,650$ (114,532)$

Budget

171


Service Area 1 Road Impact Fee Fund 173Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Charges for Services 3,000$ 3,000$ 59,512$ 56,512$ Investment earnings 1,000 1,000 1,329 329

Total revenues 4,000 4,000 60,840 56,840


Interest and other charges - - - - Total expenditures - - - -


OTHER FINANCING SOURCES (USES):Transfers out (507,000) (507,000) (507,000) -

Total other financing sources & uses (507,000) (507,000) (507,000) - Net change in fund balance (503,000) (503,000) (446,160) 56,840

Fund balances-beginning 553,822 553,822 553,822 - Prior period adjustments - - - - Fund balances-ending 50,822$ 50,822$ 107,662$ 56,840$

Budget

172




REVENUES:Charges for Services 115,000$ 115,000$ 102,028$ (12,972)$ Investment earnings 1,500 1,500 1,921 421

Total revenues 116,500 116,500 103,949 (12,551)





Total other financing sources & uses (650,000) (650,000) (650,000) - Net change in fund balance (533,500) (533,500) (546,051) (12,551)


Budget

173




REVENUES:Charges for Services 10,000$ 10,000$ 15,941$ 5,941$ Investment earnings 1,000 1,000 480 (520)

Total revenues 11,000 11,000 16,420 5,420





Total other financing sources & uses (207,000) (207,000) (207,000) - Net change in fund balance (196,000) (196,000) (190,580) 5,420


Budget

174




REVENUES:Charges for Services 76,000$ 76,000$ 27,440$ (48,560)$ Investment earnings 1,000 1,000 989 (11)

Total revenues 77,000 77,000 28,428 (48,572)





Total other financing sources & uses (256,000) (256,000) (256,000) - Net change in fund balance (179,000) (179,000) (227,572) (48,572)


Budget

175


Regional Service Area Impact Fund 177Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Charges for Services 21,094$ 21,094$ -$ (21,094)$ Investment earnings 1,000 1,000 756 (244)

Total revenues 22,094 22,094 756 (21,338)



Excess(deficiency) of revenues over expenditures 22,094 22,094 756 (21,338)

OTHER FINANCING SOURCES (USES):Transfers out (207,000) (207,000) - 207,000

Total other financing sources & uses (207,000) (207,000) - 207,000 Net change in fund balance (184,906) (184,906) 756 185,662


Budget

176


PEG Fund 179Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Miscellaneous 83,766$ 83,766$ 118,959$ 35,193$

Total revenues 83,766 83,766 118,959 35,193 6


Economic Environment 45,000 45,000 44,720 280 Capital outlay 45,000 45,000 - 45,000




Fund balances-beginning 55,411 55,411 55,410 (1) Prior period adjustments - - - -


Budget

177


Mental Health Fund 181Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Property taxes 700,000$ 700,000$ 580,505$ (119,495)$ Investment earnings - - 5,198 5,198 Miscellaneous - - - -

Total revenues 700,000 700,000 585,703 (114,297)





Total other financing sources & uses (450,000) (450,000) (450,000) - Net change in fund balance - - 93,459 93,459

Fund balances-beginning 1,106,892 1,106,892 1,106,893 1 Prior period adjustments - - - - Fund balances-ending 1,106,892$ 1,106,892$ 1,200,352$ 93,460$

Budget

178


Develop Disabilities Fund 182Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Property taxes 100,000$ 100,000$ 100,000$ -$ Intergovernmental 2,985,000 3,220,000 2,771,021 (448,979) Miscellaneous - - 21,857 21,857

Total revenues 3,085,000 3,320,000 2,892,878 (427,122)


Health & Human Services 3,085,000 3,320,000 3,094,729 225,271 Economic Environment - - - - Total expenditures 3,085,000 3,320,000 3,094,729 225,271




Fund balances-beginning 1,444,419 1,444,419 1,444,420 1 Prior period adjustments - - - - Fund balances-ending 1,444,419$ 1,444,419$ 1,242,569$ (201,850)$

Budget

179


Substance Abuse 183Schedule of Revenues, Expenditures and Cahnges in Fund Blances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Intergovernmental 2,425,436$ 2,425,436$ 2,107,579$ (317,857)$ Investment earnings -

Total revenues 2,425,436 2,425,436 2,107,579 (317,857)


Health & Human Services 1,429,000 1,518,000 1,256,075 261,925 Total expenditures 1,429,000 1,518,000 1,256,075 261,925


OTHER FINANCING SOURCES (USES):Transfers in 18,564 18,564 18,564 - Transfers out (1,015,000) (877,000) (870,177) 6,823

Total other financing sources & uses (996,436) (858,436) (851,613) 6,823 Net change in fund balance - 49,000 (109) (49,109)

Fund balances-beginning 268,423 268,423 268,423 - Prior period adjustments - - - -


Budget

180


Youth Commission 184Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Intergovernmental 50,000$ 50,000$ 24,733$ (25,267)$ Miscellaneous - - - -

Total revenues 50,000 50,000 24,733 (25,267)


Public Safety 50,000 50,000 24,733 25,267 Economic Environment - - - - Total expenditures 50,000 50,000 24,733 25,267



Total other financing sources & uses - - - - Net change in fund balance - - - -

Fund balances-beginning - - - - Prior period adjustments - - - - Fund balances-ending -$ -$ -$ -$

Budget

181


Youth Services Juvenile 185Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Miscellaneous 5,400$ 5,400$ 3,148$ (2,252)$

Total revenues 5,400 5,400 3,148 (2,252)


Public safety 5,400 5,400 3,004 2,396 Total expenditures 5,400 5,400 3,004 2,396

Excess(deficiency) of revenues over expenditures - - 144 144


Total other financing sources & uses - - - - Net change in fund balance - - 144 144

Fund balances-beginning 8,976 8,976 8,975 (1) Prior period adjustments - - - - Fund balances-ending 8,976$ 8,976$ 9,119$ 143$

Budget

182


Mental Health Non-medicaid Fund 188Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Intergovernmental 7,285,000$ 7,285,000$ 6,627,428$ (657,572)$ Investment earnings - - 4,042 4,042 Miscellaneous - - - -

Total revenues 7,285,000 7,285,000 6,631,471 (653,529)


Health and human services 7,292,500 7,292,500 6,571,992 720,508 Total expenditures 7,292,500 7,292,500 6,571,992 720,508


OTHER FINANCING SOURCES (USES):Transfers in 7,500 7,500 7,500 -

Total other financing sources & uses 7,500 7,500 7,500 - Net change in fund balance - - 66,979 66,979


Budget

183


Commute Trip Reduction Fund 189Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:

Fines & forfeits -$ -$ 15$ -$ Miscellaneous 56,000$ 56,000$ 63,618$ 7,618$

Total revenues 56,000 56,000 63,633 7,618


Transportation 58,609 58,609 38,443 20,166 Total expenditures 58,609 58,609 38,443 20,166


OTHER FINANCING SOURCES (USES):Refunding bonds issued - - - - Other adjustments - - - -

Total other financing sources & usesNet change in fund balance - - - - (2,609) (2,609) 25,190 27,799


Budget

184


Area Agency on Aging Fund 190Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Intergovernmental 5,104,312$ 5,104,312$ 3,298,126$ (1,806,186)$ Miscellaneous 4,000 4,000 2,612 (1,388)

Total revenues 5,108,312 5,108,312 3,300,738 (1,807,574)


Health & Human Services 5,130,761 5,130,761 3,269,842 1,860,919 Economic Environment - - - - Total expenditures 5,130,761 5,130,761 3,269,842 1,860,919



Total other financing sources & uses 22,449 22,449 22,449 - Net change in fund balance - - 53,345 53,345


Budget

185


JTPA Admin Fund 191Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Intergovernmental 2,067,000$ 2,829,000$ 2,438,699$ (390,301)$ Miscellaneous - - - -

Total revenues 2,067,000 2,829,000 2,438,699 (390,301)


Health & Human Services 2,067,000 2,829,000 2,438,699 390,301 Economic Environment - - - - Total expenditures 2,067,000 2,829,000 2,438,699 390,301


OTHER FINANCING SOURCES (USES):Refunding bonds issued - - - - Total other financing sources & uses - - - -

Net change in fund balance - - - - Fund balances-beginning - - - - Prior period adjustments - - - -

Fund balances-ending -$ -$ -$ -$

Budget

186


Employment Training Fund 192Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Intergovernmental 1,430,000$ 1,671,000$ 1,360,832$ (310,168)$ Charges for services - - - - Fines & forfeits - - - - Investment earnings - - - - Miscellaneous 190,000 190,000 243,156 53,156

Total revenues 1,620,000 1,861,000 1,603,988 (257,012)


Health & Human Services 1,620,000 1,861,000 1,606,724 254,276 Total expenditures 1,620,000 1,861,000 1,606,724 254,276






Budget

187


Kitsap/Regional Coordinating Council Fund 193Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Intergovernmental 293,890$ 293,890$ 128,761$ (165,129)$ Charges for services 50,000 50,000 90,871 40,871 Miscellaneous 7,000 7,000 3,525 (3,475)

Total revenues 350,890 350,890 223,157 (127,733)


Economic Environment 509,220 509,220 337,917 171,303 Total expenditures 509,220 509,220 337,917 171,303



Total other financing sources & uses 116,803 116,803 116,803 - Net change in fund balance (41,527) (41,527) 2,043 43,570



Budget

188


ARRA EECBG Fund 195Schedule of Revenues, Expenditures and Changes in Fund Balanes - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Intergovernmental 150,587$ 512,301$ 413,428$ (98,873)$ Charges for services - -$ 286$ 286$ Miscellaneous - - 37,652 37,652

Total revenues 150,587 512,301 451,366 (60,935)


Economic Environment 143,938 505,652 484,390 21,262 Capital Outlay - - 23,846 (23,846)

Total expenditures 143,938 505,652 508,236 (2,584) Excess(deficiency) of revenues over expenditures 6,649 6,649 (56,870) (63,519)


Total other financing sources & uses - - - - Net change in fund balance 6,649 6,649 (56,870) (63,519)



Budget

189


2009 KC LTGO BAN Project 331Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:

Investment earnings -$ -$ 2,710$ 2,710$ Miscellaneous - - - -$

Total revenues - - 2,710 2,710

EXPENDITURES:Physical Environment - 150,000 209,088 (59,088) Interest and other charges - 271,638 159,182 112,456 Total expenditures - 421,638 368,270 53,368

Excess(deficiency) of revenues over expenditures - (421,638) (365,560) 56,078

OTHER FINANCING SOURCES (USES):Proceeds from BANS - 170,000 197,872 27,872 Payment of assumed debt - - - -

Total other financing sources & uses - 170,000 197,872 27,872 SPECIAL ITEMS:Sales of pledged assets - 251,638 166,882 (84,756)

Net change in fund balance - - (806) (806) Fund balances-beginning 35,904 35,904 35,904 (0)


Budget

190


Juvenile Services Facility Fund 352Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Investment earnings -$ -$ -$ -$

Total revenues - - - -


Physical safety 57,500 57,500 5,452 52,048 Interest and other charges - - - - Captial outlay - - 13,604 (13,604) Total expenditures 57,500 57,500 19,057 38,443





Fund balances-ending 464$ 464$ 38,907$ 38,443$

Budget

191


Silverdale Projects 363Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Intergovernmental -$ -$ -$ -$ Miscellaneous - - - -



Physical Environment - 71,149 35,413 35,736 Capital outlay - 10,000 10,000 -

Total expendituresTotal Expenditures - 81,149 45,413 35,736 Excess(deficiency) of revenues

over expenditures - (81,149) (45,413) 35,736

OTHER FINANCING SOURCES (USES): - - - Transfers in 18,149 18,149 - Transfers out - - -

Total other financing sources & uses - 18,149 18,149 - Net change in fund balance - (63,000) (27,264) 35,736 Fund balances-beginning 173,775 173,775 173,775 0 Prior period adjustments - - - -


Budget

192


Parks Capital Improvement 382Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Intergovernmental 1,957,150$ 1,957,150$ 257,751$ (1,699,399)$ Charges for services 90,000 90,000 250,000 160,000 Investment earnings 25,000 25,000 158,757 133,757 Miscellaneous 200,000 200,000 56,534 (143,466)

Total revenues 2,272,150 2,272,150 723,042 (1,549,108)


Culture & recreation 459,900 459,900 238,544 221,356 Debt service:

Principal 56,534 Interest and other charges 143,466

Capital outlay 2,681,300 2,681,300 353,530 2,327,770 Total expenditures 3,141,200 3,141,200 792,074 2,549,126


OTHER FINANCING SOURCES (USES):Transfers in - - - - Transfers out - - - -


Fund balances-beginning 2,342,769 2,343,769 2,342,768 (1,001) Prior period adjustments - - (10,283) (10,283)

Fund balances-ending 1,473,719$ 1,474,719$ 2,263,453$ 788,734$

Budget

193


2002A Facility Project 386Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Investment earnings 1,000$ 1,000$ 360$ (640)$

Total revenues 1,000 1,000 360 (640)


Physical Environment 13,500 13,500 6,937 6,563 Interest and other charges - - - -

Capital outlay 25,000 25,000 20,123 4,877 Total expenditures 38,500 38,500 27,060 11,440






Budget

194


Administrative Building 387Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Intergovernmental -$ -$ -$ -$ Investment earnings - - 1,153 1,153



Physical Environment - - 27,211 (27,211) Capital outlay 55,000 55,000 (137,655) 192,655

Total expenditures 55,000 55,000 (110,445) 165,445 Excess(deficiency) of revenues over expenditures (55,000) (55,000) 111,598 166,598





Budget

195


Kingston Village Greens Comm 389Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Intergovernmental -$ -$ -$ -$ Investment earnings - - - -



Culture & Recreation - 720,000 599,648 120,352 Capital outlay - - - -

Total expenditures - 720,000 599,648 120,352 Excess(deficiency) of revenues over expenditures - (720,000) (599,648) 120,352


Sales of capital assets 566,865 566,865 Transfers in - - - - Transfer out (204,180) (204,180)

Total other financing sources & uses - - 362,685 362,685 Net change in fund balance - (720,000) (236,963) 483,037

Fund balances-beginning - - 236,963 236,963 Prior period adjustments - - - -

Fund balances-ending -$ (720,000)$ (0) 720,000$

Budget

196


KC2009 LTGO BAN 231Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Investment earnings -$ -$ -$ -$



Principal - 3,113,125 2,260,292 852,833 Interest and other charges 600,000 824,398 294,034 530,364 Total expenditures 600,000 3,937,523 2,554,326 1,383,197

Excess(deficiency) of revenues over expenditures (600,000) (3,937,523) (2,554,326) 1,383,197

OTHER FINANCING SOURCES (USES):Proceeds from BANS - 224,398 294,034 69,636 Transfers in 600,000 600,000 600,000 -

Total other financing sources & uses 600,000 824,398 894,034 69,636 SPECIAL ITEM:Sales of pledged assets - 3,113,125 1,685,292 (1,427,833)

Net change in fund balance - - 25,000 25,000 Fund balances-beginning - - - - Prior period adjustments - - - -

Fund balances-ending -$ -$ 25,000$ 25,000$

Budget

197


KC2009B Key Bank Line 232Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Miscellaneous -$ -$ -$ -$


EXPENDITURES:Current:Debt service - - -

Principal - 1,964,280 1,657,680 306,600 Interest and other charges - 98,800 77,272 21,528

Capital outlay - - - - Total expenditures - 2,063,080 1,734,952 328,128

Excess(deficiency) of revenues over expenditures - (2,063,080) (1,734,952) 328,128

OTHER FINANCING SOURCES (USES):Transfers in 98,800 98,800 4,422 (94,378)

Total other financing sources & uses 98,800 98,800 4,422 (94,378) SPECIAL ITEM:Sales of Pledged assets 1,733,148 1,733,148

Net change in fund balance 98,800 (1,964,280) 2,617 1,966,897 Fund balances-beginning - - 3,701 3,701 Prior period adjustments - - - -

Fund balances-ending 98,800$ (1,964,280)$ 6,319 1,970,598$

Budget

198


KC2010 LTGO 235Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Investment earnings -$ -$ -$ -$ Miscellaneous 216,300 216,300 247,802 31,502

Total revenues 216,300 216,300 247,802 31,502


Physical Environment - - - - Principal 1,445,000 1,445,000 1,445,000 - Interest and other charges 229,626 229,626 230,233 (607) Total expenditures 1,674,626 1,674,626 1,675,233 (607)

Excess(deficiency) of revenues over expenditures (1,458,326) (1,458,326) (1,427,430) 30,896


Total other financing sources & uses 1,458,326 1,458,326 1,458,326 - Net change in fund balance - - 30,896 30,896



Budget

199


KC2011 LTGO 236Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Intergovernmental -$ -$ 310,812$ 310,812$

Total revenues - - 310,812 310,812


Principal - - 915,000 (915,000) Interest and other charges - 641,648 641,650 (2) Total expenditures - 641,648 1,556,650 (915,002)

Excess(deficiency) of revenues over expenditures - (641,648) (1,245,838) (604,190)


G O Bond Proceeds - - - Proceeds of Other LT Debt - - - Proceeds Refunding Gen LT Debt - - - Amt Remitted to Refunding Trustee - - - Transfers in - 610,088 1,245,838 635,750

Total other financing sources & uses - 610,088 1,245,838 635,750 Net change in fund balance - (31,560) 0 31,560

Fund balances-beginning - - - - Prior period adjustments - - - -

Fund balances-ending -$ (31,560)$ 0$ 31,560$

Budget

200


Special Assessments 265 & 266Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Investment earnings -$ -$ 963$ 963$ Miscellaneous 5,268 5,268 9,483 4,215

Total revenues 5,268 5,268 10,447 5,179


Principal 5,000 5,000 - 5,000 Interest and other charges 268 268 - 268 Total expenditures 5,268 5,268 - 5,268



Total other financing sources & uses - - - - Net change in fund balance - - 10,447 10,447



Budget

201


GO Bond 1999B 282Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Investment earnings -$ -$ 20,756$ 20,756$ Miscellaneous 120,163 120,163 - (120,163)

Total revenues 120,163 120,163 20,756 (99,407)


Principal 80,000 80,000 - 80,000 Interest and other charges 40,163 40,163 - 40,163

Capital outlay - - - - Total expenditures 120,163 120,163 - 120,163



Proceeds from refunding bonds - - Payment to bond refundinfg escrow agent - - - - Transfers out (110,756) (110,756)

Total other financing sources & uses - - (110,756) (110,756) Net change in fund balance - - (90,000) (90,000)

Fund balances-beginning 818,093 818,093 818,093 - Prior period adjustments - - - -


Budget

202


GO Bond 2001 284Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Miscellaneous -$ -$ 61,951$ 61,950.56$



Principal 245,000 245,000 - 245,000 Interest and other charges 133,450 133,450 - 133,450 Total expenditures 378,450 378,450 - 378,450



Proceeds from refunding bonds - - Payment to bond refunding escrow agent - - Premiums on bonds - - Transfers in 378,450 378,450 - (378,450)

Total other financing sources & uses 378,450 378,450 - (378,450) Net change in fund balance - - 61,951 61,951



Budget

203


GO Bond 2002A 286Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Intergovernmental 954,809$ 954,809$ 241,061$ (713,748)$ Investment earnings - - 265 265

Total revenues 954,809 954,809 241,326 (713,483)


Principal 450,000 450,000 - 450,000 Interest and other charges 504,809 504,809 310,812 193,997

Capital outlay - - - - Total expenditures 954,809 954,809 310,812 643,997



Proceeds from refunding bonds - - Payment to bond refunding escrow agent - - Premiums on bonds - - - - Transfers out - - (525,000) (525,000)

Total other financing sources & uses - - (525,000) (525,000) Net change in fund balance - - (594,486) (594,486)

Fund balances-beginning 9,924,713 9,924,713 9,924,714 1 Prior period adjustments - - - -

Fund balances-ending 9,924,713$ 9,924,713$ 9,330,228$ (594,485)$

Budget

204




REVENUES:Property taxes -$ -$ -$ -$



Principal 370,000 370,000 370,000 - Interest and other charges 339,615 339,615 14,800 324,815 Total expenditures 709,615 709,615 384,800 324,815



Proceeds from refunding bonds - - - Payment to bond refunding escrow agent - - - Premiums on bonds - - - Transfers in 709,615 709,615 386,464 (323,151) Transfers out - - -

Total other financing sources & uses 709,615 709,615 386,464 (323,151) Net change in fund balance - - 1,664 1,664



Budget

205


GO Bond 2003B 288Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012





Principal 440,000 440,000 440,000 - Interest and other charges 645,758 645,758 645,755 3 Total expenditures 1,085,758 1,085,758 1,085,755 3

Excess(deficiency) of revenues over expenditures (1,085,758) (1,085,758) (1,085,755) 3


Total other financing sources & uses 1,085,758 1,085,758 1,085,758 - Net change in fund balance - - 3 3


Fund balances-ending 8,737$ 8,737$ 8,740$ 3$

Budget

206







Principal 485,000 485,000 485,000 - Interest and other charges 648,824 648,824 648,823 2

Capital outlay - - - - Total expenditures 1,133,824 1,133,824 1,133,823 2



Total other financing sources & uses 1,133,824 1,133,824 1,133,824 - Net change in fund balance - - 2 2



Budget

207


LTGO 2005 Refunding 291Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012





Principal 1,070,000 1,070,000 1,070,000 - Interest and other charges 876,500 876,500 876,500 - Total expenditures 1,946,500 1,946,500 1,946,500 -

Excess(deficiency) of revenues over expenditures (1,946,500) (1,946,500) (1,946,500) -


Total other financing sources & uses 1,946,500 1,946,500 1,946,500 - Net change in fund balance - - - -



Budget

208


LTGO 2006 292Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualFor the Year Ended December 31, 2012


REVENUES:Intergovernmental 22,176$ 22,176$ 22,186$ 10$

Total revenues 22,176 22,176 22,186 10


Principal 935,000 935,000 935,000 - Interest and other charges 685,070 685,070 685,070 - Total expenditures 1,620,070 1,620,070 1,620,070 -


OTHER FINANCING SOURCES (USES):Transfers in 1,597,894 1,597,894 1,597,893 (1)

Total other financing sources & uses 1,597,894 1,597,894 1,597,893 (1) Net change in fund balance - - 9 9

Fund balances-beginning 112 112 112 (0) Prior period adjustments - - - - Fund balances-ending 112$ 112$ 121$ 9$

Budget

209

210


COMPONENT UNIT

The County has one discretely presented Component Unit, the Public Facilities District (PFD). The PFD fund statements are as follows.

KITSAP COUNTY, WASHINGTONBalance SheetComponent Unit December 31, 2012

Public Facilities

ASSETS DistrictCurrent assets:

Cash and Cash equivalents 103,494$ Deposits with fiscal agents - Investments 783,243 Total current assets 886,737

Total assets 886,737

LIABILITIES AND FUND BALANCESLIABILITIES

Notes/Contracts 9,260,000 Total liabilities 9,260,000

FUND BALANCES Invested in capital assets, net of related debt - Unrestricted (8,373,263)

Total fund balance (8,373,263) Total liabilities and fund balances 886,737$

211

KITSAP COUNTY, WASHINGTONStatement of Revenues, Expenditures and Changes in Fund BalancesComponent Unit - Public Facilities DistrictFor the Year Ended December 31, 2012

Public FacilitiesDistrict

REVENUES:Retail sales & use taxes 1,088,478$ Interest earnings 5,721 Miscellaneous 385

Total revenues 1,094,585

EXPENDITURES:Current: Physical environment 603,286 Total expenditures 603,286

Excess(deficiency) of revenues 491,299 over expenditures

OTHER FINANCING SOURCES (USES):Transfers out -

Total other financing sources & uses - Net change in fund balance 491,299

Fund balances-beginning (8,864,562)Prior period adjustmentsFund balances-ending (8,373,263)$

212

213


Internal Service Funds

Internal Service Funds are used by Kitsap County to account for the financing of goods and services provided by a department to other departments or agencies of Kitsap County, or to other governmental units on a cost-reimbursement basis. A description of each fund follows: Equipment Rental & Revolving Fund – A fund used to account for the operation of County vehicles and rent of equipment to other funds within the County. Building Repair and Replacements – A fund used to account for operation of County Maintenance and Building repairs Information Services – A fund used to account for the operations of data processing services to County departments. Self-Insurance – A fund used to account for the insurance and self-insured claims of the County. Elections Services – A fund used to account for the elections operation to the County and other outside government agencies. Employer Benefits Fund - Accounts for the activities of employer medical, dental, vision, life, accidental death and dismemberment, and long-term disability benefit programs and will account for future modifications to existing benefits or additions of new employee benefits.


Combining Statement of Net Position Internal Service FundsDecember 31, 2012

Equipment Building Rental and Repair and Employer Self

ASSETS Revolving Replacement Benefits Insurance ElectionsCurrent assets:

Cash and Cash equivalents 14,372,196$ -$ 1,452,659$ 8,795,737$ (114,937)$ Deposits with fiscal agents - - - - Due from other funds 194,334 - 534,975 - Due from other governments - - - 122,815 Prepayments - - 109,308 - Inventories 1,618,677 - - - Total current assets 16,185,207 - 1,452,659 9,440,020 7,878

Noncurrent assets:Machinery & Equipment 27,436,315 4,222 387,962 Construction In Progress - Less accumulated depreciation (16,753,410) (4,222) (337,876) Total noncurrent assets 10,682,905 - - - 50,086

Total assets 26,868,112$ -$ 1,452,659$ 9,440,020$ 57,964$

LIABILITIESCurrent liabilities:

Accounts payable 114,829 742 29,990 135 Due to other funds 43,206 - 4,111 1,688 Due to other governments - - - Other liabilities 57,010 1,547,350 8,755,358 27,388 Total current liabilities 215,045 - 1,548,092 8,789,459 29,211

Non current Liabilities (Note 2):Due within one year - - - - Due in more than one year 64,829 13,471 102,716 Total noncurrent liabilities 64,829 - - 13,471 102,716

Total liabilities 279,874 - 1,548,092 8,802,930 131,927

NET POSITIONInvested in capital assets, net 10,682,905 - - 50,086

of related debtRestricted: Debt service

Unrestricted 15,905,333 (95,433) 637,090 (124,049) Total net position 26,588,238 - (95,433) 637,090 (73,963)

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Information

Services Total

1,992,767$ 26,498,422$ -

- 729,309 122,815

- 109,308 - 1,618,677

1,992,767 29,078,531

4,183,362 32,011,861 -

(3,341,260) (20,436,768) 842,102 11,575,093

2,834,869$ 40,653,624$

121,116 266,812 33,410 82,415

- 146,492 10,533,598 301,018 10,882,825

- - 221,825 402,841 221,825 402,841 522,843 11,285,666

842,102 11,575,093

- 1,469,924 17,792,865 2,312,026 29,367,958

215

KITSAP COUNTY, WASHINGTON Page 1 of 2Combining Statement of Revenues, Expenses, and Changes in Fund Net PositionInternal Service FundsFor the Year Ended December 31, 2012

Equipment Building Rental and Repair and Employer SelfRevolving Replacement Benefits Insurance Elections

Operating revenues:Charges for services 6,609,241$ -$ -$ 3,928,098$ 1,297,132$ Miscellaneous 42,242 3,625 43,131 30 Total operating revenues 6,651,483 - 3,625 3,971,229 1,297,162

Operating expenses:Personal services 1,190,763 - - 1,052,651 784,971 Contractual services 242,069 - - 1,066,356 49,936 Utilities 23,298 - 98,859 - - Repair and maintenance 147,716 34,457 - - - Other supplies and expenses 2,147,223 2,160 - 36,215 559,504 Ins.claims and expenses 7,572 - 199 2,256,906 4,572 Depreciation 1,842,717 - - - 31,682 Total operating expenses 5,601,358 36,617 99,058 4,412,128 1,430,665

Operating income 1,050,125 (36,617) (95,433) (440,899) (133,503) Nonoperating revenue (expenses)

Interest revenue - - - - Miscellaneous revenue - - - - Interest expense - - - - Miscellaneous expense - - - - Total nonoperating exp. - - - - - Income (loss) before contributions & transfers 1,050,125 (36,617) (95,433) (440,899) (133,503)

Capital contributions 78,148 - - 75,432 Transfers in* - 36,617 - - - Transfers out (53,461) - - - Change in Net Position 1,074,812 - (95,433) (440,899) (58,071) Total net position - beginning 25,513,426 - 1,077,989 (15,892)

Prior Period AdjustmentsTotal net position - ending 26,588,238$ -$ (95,433)$ 637,090$ (73,963)$

216

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Information

Services Total

5,990,383$ 17,824,854$ 130 89,158$

5,990,513 17,914,012

3,303,858 6,332,243 161,791 1,520,152

20,340 142,497 863,424 1,045,597

2,053,122 4,798,224 13,753 2,283,002

318,853 2,193,252 6,735,141 18,314,967 (744,628) (400,955)

- - - - - - - -

- -

(744,628) (400,955) - 153,580

110,000 146,617 - (53,461)

(634,628) (154,219) 2,946,654 29,522,177

- 2,312,026$ 29,367,958$

217

KITSAP COUNTY, WASHINGTONCombining Statement of Cash FlowsInternal Service FundsFor the Year Ended December 31, 2012

Equipment Building Rental and Repair and Employer Self

CASH FLOWS FROM OPERATING ACTIVITIES Revolving Replacement Benefits Insurance ElectionsReceipts from customers 6,834,268$ 1,710,492$ 3,436,254$ 1,453,125$ Payments to suppliers (4,005,381) (36,617) (257,833.00) (2,033,341) (667,570) Payments to employees (1,171,374) - (1,054,265) (779,994) Provided by operating activities 1,657,513 (36,617) 1,452,659 348,648 5,561

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIESOperating grants received - - - Operating transfer in 36,617 - - Operating transfer out (53,461) - - - Net cash provided by noncapital activities (53,461) - - - -

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES - Capital contributions - - - - Proceeds from sales and maturities of investment - - - - Purchases of capital assets (3,288,748) - - - Principal paid on capital debt - - - - Interest paid on capital debt - - - - Net cash from related financing activities (3,288,748) - - - -

CASH FLOWS FROM INVESTING ACTIVITIESProceeds from sales and maturities of investmentsPurchase of InvestmentInterest and dividendsNet cash provided by investing activities - - - - - Net (decrease) in cash and cash equivalents (1,684,696) 1,452,659 348,648 5,561

Balances - beginning of the year 16,056,892 - - 8,447,089 (120,498) Balances - end of the year 14,372,196$ -$ 1,452,659$ 8,795,737$ (114,937)$

Reconciliation of operating income (loss) to net cash provided (used) by operating activities:Operating income (loss) 1,050,125 (36,617) (95,433.00) (440,899) (133,503)

Adjustments to reconcile operating income to net cash - - provided (used) by operating activitied: - - - - Depreciation expense 1,842,717 - - 31,682

Change in assets and liabilities: - - Receivables, net - - - - DFOF 182,785 1,706,867 (534,975) - DFOG - - - 155,960 Prepayments - (7,863) - Inventories (196,858) - - - Accounts and other payables (33,840) 66.00 (25,158) (3,239) DTOF (1,216,866) - (18,770) 1,390 DTOG - - - - Accrued expenses 10,061 (158,841) 1,377,927 (51,706) Employee Leave Benefits 19,389 - (1,614) 4,977

Net cash provided by operating activities 1,657,513$ (36,617)$ 1,452,659$ 348,648$ 5,561$

Noncash investing, capital and financing Activities Contribution of capital assets 78,149 75,432

218

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InformationServices Total5,990,513$ 19,424,652

(3,166,582) (10,167,324) (3,283,581) (6,289,214)

(459,650) 2,968,114

- - 110,000 146,617

- (53,461) 110,000 93,156

- - - -

(102,198) (3,390,946) - - - -

(102,198) (3,390,946)

- -

- - (451,848) (329,676)

2,444,615 26,828,098 1,992,767$ 26,498,422$

(744,628) (400,955) - - - -

318,853 2,193,252 - - - - - 1,354,677 - 155,960 - (7,863) - (196,858)

(104,496) (166,667) 22,413 (1,211,833)

- - 27,931 1,205,372 20,277 43,029

(459,650)$ 2,968,114$

153,581

219

220


AGENCY FUNDS

Agency funds are used to account for monies help by Kitsap County as an agent for other government units. Many independent governmental entities are required by statute to deposit and disburse all funds through the County Treasurer’s Office. Agency funds are custodial in nature (assets equal liabilities) and do not measure the results of operations. Each agency is responsible for the preparation of it’s own financial report.


Combining Statement of Fiduciary Net PositionAgency FundsDecember 31, 2012

State Treasurer's School Recreation PublicSchools Suspense Districts P.U.D.'s Districts Health

ASSETS Cash 408,350$ 1,495,310$ 11,251,116$ 1,332,958$ 1,169,622$ 338,516$ Deposits with Fiscal Agents - - 180,000 - - - Investments - 35,827 87,097,087 4,082,640 2,326,028 2,109,869 Taxes Receivable 3,191,134 (106,900) 2,899,401 114,182 168,992 - Other Current Receivables - 8,898 - - - - Due From Other Funds - 4,659 - - - - Due From Other Governments - - - - - 77,632 Total Assets 3,599,484 1,437,794 101,427,604 5,529,780 3,664,642 2,526,017

LIABILITIES Warrants Payable - - - - - - Accounts Payable - - - - - - Sales Tax Payable - - - - - - Interfund loan payable - - - - - - Due to Other Funds - - - - - - Due to Other Governments - 500 - - - - Custodial Account 3,599,484 1,437,294 101,427,604 5,529,780 3,664,642 2,526,017 Total Liabilities 3,599,484 1,437,794 101,427,604 5,529,780 3,664,642 2,526,017

221

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Regional Cities & Water Fire Sewer PublicLibrary Towns Ports Districts Districts Districts Transportation

36,728$ 221,555$ 772,085$ 393,440$ 1,049,818$ 364,456$ 2,494,689$ - - - 20,000 - - -

4,070,122 22,329,063 10,126,359 8,111,313 35,026,089 7,457,563 6,536,077 524,405 1,166,654 606,034 154 2,278,322 - -

- 131,206 - - 185,557 - - - - - - - - - - - - 2,000 - - -

4,631,255 23,848,479 11,504,479 8,526,907 38,539,786 7,822,019 9,030,766

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

4,631,255 23,848,479 11,504,479 8,526,907 38,539,786 7,822,019 9,030,766 4,631,255 23,848,479 11,504,479 8,526,907 38,539,786 7,822,019 9,030,766

222


Combining Statement of Fiduciary Net PositionAgency FundsDecember 31, 2012

Pass- Clearing Thru Funds 2011

ASSETS Cash 74,742$ 2,863,392$ 24,266,777$ Deposits with Fiscal Agents - - 200,000 Investments 730,488 - 190,038,526 Taxes Receivable - - 10,842,379 Other Current Receivables - - 325,662 Due From Other Funds - - 4,659 Due From Other Governments - - 79,632 Total Assets 805,230 2,863,392 225,757,634

LIABILITIES Warrants Payable 7,717 2,863,392 2,871,108 Accounts Payable - - - Sales Tax Payable - - - Interfund loan payable - - - Due to Other Funds 39,412 - 39,412 Due to Other Governments - - 500 Custodial Account 758,101 - 222,846,613 Total Liabilities 805,230 2,863,392 225,757,634

Totals

223


Statement of Changes in Assets and LiabilitiesAgency FundsFor the Fiscal Year Ended December 31, 2012

Balance BalanceJanuary 1 Additions Deletions December 31

State SchoolsAssets Cash 271,149$ 67,947,122$ 67,809,921$ 408,350$ Deposits with Fiscal Agents/Trustees - - - - Investments - - - - Taxes Receivable 3,468,860 - 277,726 3,191,134 Other Current Receivables - - - - Due From Other Funds - - - - Due From Other Governmental Units - - - - Total Assets 3,740,009$ 67,947,122$ 68,087,647$ 3,599,484$

Liabilities: Warrants Payable - -$ -$ -$ Accounts Payable - - - - Sales Tax Payable - - - - Other Accrued Liabilities - - - - Due to Other Funds - - - - Custodial Account 3,740,009 67,947,122 68,087,647 3,599,484 Due to Other Governmental Units - - - - Deferred Compensation - - - - Total Liabilities 3,740,009$ 67,947,122$ 68,087,647$ 3,599,484$


Treasurer's SuspenseAssets Cash 2,711,506$ 164,080,802$ 165,296,998$ 1,495,310$ Deposits with Fiscal Agents/Trustees - - - - Investments 35,570 257 - 35,827 Taxes Receivable (40,036) - 66,864 (106,900) Other Current Receivables 8,407 491 - 8,898 Due From Other Funds - 4,659 - 4,659 Due From Other Governmental Units - - - - Total Assets 2,715,447$ 164,086,208$ 165,363,861$ 1,437,794$

Liabilities: Warrants Payable -$ -$ -$ -$ Accounts Payable 858 - 858 - Sales Tax Payable - - - - Interfund Loan Payable 50,000 - - 50,000 Due to Other Funds 469,828 1,827,865 590,827 1,706,867 Custodial Account 2,663,589 162,258,343 165,363,003 (320,073) Due to Other Governmental Units 1,000 - - 1,000 Deferred Compensation - - - - Total Liabilities 3,185,275$ 164,086,208$ 165,954,688$ 1,437,794$

224




School DistrictsAssets Cash 11,048,098$ 532,680,643$ 532,477,324$ 11,251,116$ Deposits with Fiscal Agents/Trustees - 19,336,102 19,156,102 180,000 Investments 100,050,907 102,246,166 115,199,986 87,097,087 Taxes Receivable 2,995,438 308,791 404,827 2,899,401 Other Current Receivables - - - - Due From Other Funds - - - - Due From Other Governmental Units - - - - Total Assets 114,094,442$ 654,571,701$ 667,238,239$ 101,427,604$

Liabilities: Warrants Payable -$ -$ -$ -$ Accounts Payable - - - - Sales Tax Payable - - - - Other Accrued Liabilities - - - - Due to Other Funds - - - - Custodial Account 114,094,442 654,571,701 667,238,239 101,427,604 Due to Other Governmental Units - - - - Deferred Compensation - - - - Total Liabilities 114,094,442$ 654,571,701$ 667,238,239$ 101,427,604$


P.U.D.'sAssets Cash 750,665$ 24,414,624$ 23,832,331$ 1,332,958$ Deposits with Fiscal Agents/Trustees - 1,997,146 1,997,146 - Investments 6,061,602 3,898,950 5,877,911 4,082,640 Taxes Receivable 123,183 - 9,001 114,182 Other Current Receivables - - - - Due From Other Funds - - - - Due From Other Governmental Units - - - - Total Assets 6,935,449$ 30,310,720$ 31,716,389$ 5,529,780$


225




Recreation DistrictsAssets Cash 1,141,320$ 12,757,377$ 12,729,075$ 1,169,622$ Deposits with Fiscal Agents/Trustees - 406,566 406,566 - Investments 2,591,318 2,613,631 2,878,921 2,326,028 Taxes Receivable 202,555 8,973 42,536 168,992 Interest Receivable - - - - Other Current Receivables - - - - Due From Other Funds - - - - Due From Other Governmental Units - - - - Total Assets 3,935,193$ 15,786,548$ 16,057,098$ 3,664,642$

Liabilities: Warrants Payable -$ -$ -$ -$ Accounts Payable - - - - Sales Tax Payable - - - - Other Accrued Liabilities - - - - Due to Other Funds - - - - Interfund Loans Payable - - - - Custodial Account 3,935,193 15,786,548 16,057,098 3,664,642 Due to Other Governmental Units - - - - Deferred Compensation - - - - Total Liabilities 3,935,193$ 15,786,548$ 16,057,098$ 3,664,642$


Public HealthAssets Cash 193,506$ 15,532,391$ 15,387,381$ 338,516$ Deposits with Fiscal Agents/Trustees - - - - Investments 1,818,044 5,791,825 5,500,000 2,109,869 Taxes Receivable - - - - Other Current Receivables - - - - Due From Other Funds - - - - Due From Other Governmental Units 208,744 77,652 208,764 77,632 Total Assets 2,220,294$ 21,401,869$ 21,096,145$ 2,526,017$

Liabilities: Warrants Payable -$ -$ -$ -$ Other Accrued Liabilities - - - - Due to Other Funds - - - - Custodial Account 2,220,294 21,401,869 21,096,145 2,526,017 Due to Other Governmental Units - - - - Deferred Compensation - - - - Total Liabilities 2,220,294$ 21,401,869$ 21,096,145$ 2,526,017$

226




Regional LibraryAssets Cash 20,061$ 17,652,094$ 17,635,427$ 36,728$ Deposits with Fiscal Agents/Trustees - 154,118 154,118 - Investments 4,029,182 6,740,940 6,700,000 4,070,122 Taxes Receivable 550,832 - 26,427 524,405 Interest Receivable - - - - Other Current Receivables - - - - Due From Other Funds - - - - Due From Other Governmental Units - - - - Total Assets 4,600,075$ 24,547,152$ 24,515,972$ 4,631,255$



Cities & TownsAssets Cash 132,862$ 35,240,581$ 35,151,888$ 221,555$ Deposits with Fiscal Agents/Trustees - - - - Investments 18,386,162 14,087,272 10,144,371 22,329,063 Taxes Receivable 1,288,724 11,164 133,234 1,166,654 Other Current Receivables 158,672 - 27,466 131,206 Due From Other Funds - - - - Due From Other Governmental Units - - - - Total Assets 19,966,420$ 49,339,017$ 45,456,958$ 23,848,479$

Liabilities: Warrants Payable -$ -$ -$ -$ Other Accrued Liabilities - - - - Due to Other Funds - - - - Custodial Account 19,966,420 49,339,017 45,456,958 23,848,479 Due to Other Governmental Units - - - - Deferred Compensation - - - - Total Liabilities 19,966,420$ 49,339,017$ 45,456,958$ 23,848,479$

227




PortsAssets Cash 809,977$ 20,099,590$ 20,137,481$ 772,085 Deposits with Fiscal Agents/Trustees - 406,693 406,693 - Investments 8,350,743 3,851,746 2,076,130 10,126,359 Taxes Receivable 624,075 2,338 20,378 606,034 Other Current Receivables - - - - Due From Other Funds - - - - Due From Other Governmental Units - - - - Total Assets 9,784,794$ 24,360,366$ 22,640,681$ 11,504,479$

Liabilities: Warrants Payable - - - -$ Accounts Payable - - - 0 Sales Tax Payable - - - - Other Accrued Liabilities - - - - Due to Other Funds - - - - Custodial Account 9,784,794 24,360,366 22,640,681 11,504,479 Due to Other Governmental Units - - - - Deferred Compensation - - - - Total Liabilities 9,784,794$ 24,360,366$ 22,640,681$ 11,504,479$


Water DistrictsAssets Cash 390,491$ 17,978,501$ 17,975,552$ 393,440$ Deposits with Fiscal Agents/Trustees 25,000 971,430 976,430 20,000 Investments 8,282,221 5,314,010 5,484,919 8,111,313 Taxes Receivable 2,002 - 1,847 154 Other Current Receivables - - - - Due From Other Funds - - - - Due From Other Governmental Units 2,000 165,720 165,720 2,000 Total Assets 8,701,714$ 24,429,661$ 24,604,468$ 8,526,907$


228




Fire DistrictsAssets Cash 648,510$ 86,994,677$ 86,593,368$ 1,049,818$ Deposits with Fiscal Agents/Trustees - 1,044,257 1,044,257 - Investments 32,664,734 33,228,689 30,867,334 35,026,089 Taxes Receivable 2,470,885 39,335 231,898 2,278,322 Other Current Receivables - 250,000 64,443 185,557 Due From Other Funds - - - - Due From Other Governmental Units - - - - Total Assets 35,784,129$ 121,556,958$ 118,801,301$ 38,539,786$



Sewer DistrictsAssets Cash 767,500$ 24,114,569$ 24,517,612$ 364,456$ Deposits with Fiscal Agents/Trustees - - - - Investments 6,578,518 8,384,109 7,505,064 7,457,563 Taxes Receivable - - - - Other Current Receivables - - - - Due From Other Funds - - - - Due From Other Governmental Units - - - - Total Assets 7,346,018$ 32,498,678$ 32,022,677$ 7,822,019$


229




Public TranspostationAssets Cash 1,679,000$ 71,103,286$ 70,287,598$ 2,494,689$ Deposits with Fiscal Agents/Trustees - 2,847,857 2,847,857 - Investments 8,196,875 24,679,524 26,340,321 6,536,077 Taxes Receivable - - - - Other Current Receivables - - - - Due From Other Funds - - - - Due From Other Governmental Units - - - - Total Assets 9,875,875$ 98,630,667$ 99,475,777$ 9,030,766$

Liabilities: Warrants Payable -$ -$ -$ -$ Accounts Payable - - - - Sales Tax Payable - - - - Other Accrued Liabilities - - - - Due to Other Funds - - - - Interfund Loans Payable - - - - Custodial Account 9,875,875 98,630,667 99,475,777 9,030,766 Due to Other Governmental Units - - - - Deferred Compensation - - - - Total Liabilities 9,875,875$ 98,630,667$ 99,475,777$ 9,030,766$


Pass-ThruAssets Cash 132,499$ 735,076$ 792,833$ 74,742$ Deposits with Fiscal Agents/Trustees - - - - Investments 1,020,709 6,796 297,017 730,488 Taxes Receivable - - - - Other Current Receivables - - - - Due From Other Funds - - - - Due From Other Governmental Units - - - - Total Assets 1,153,208$ 741,872$ 1,089,850$ 805,230$

Liabilities: Warrants Payable -$ -$ -$ -$ Accounts Payable - - - - Sales Tax Payable - - - - Other Accrued Liabilities - - - - Due to Other Funds - - - - Custodial Account 1,153,208 741,872 1,089,850 805,230 Due to Other Governmental Units - - - - Deferred Compensation - - - - Total Liabilities 1,153,208$ 741,872$ 1,089,850$ 805,230$

230




Clearing FundsAssets Cash 2,838,495$ 117,207,611$ 117,182,715$ 2,863,392$ Deposits with Fiscal Agents/Trustees - - - - Investments - - - - Taxes Receivable - - - - Other Current Receivables - - - - Due From Other Funds - - - - Due From Other Governmental Units - - - - Total Assets 2,838,495$ 117,207,611$ 117,182,715$ 2,863,392$

Liabilities: Warrants Payable 2,838,495$ 117,207,611$ 117,182,715$ 2,863,392$ Accounts Payable - - - - Due to Other Funds - - - - Interfund Loans Payable - - - - Custodial Account - - - - Due to Other Governmental Units - - - - Deferred Compensation - - - - Total Liabilities 2,838,495$ 117,207,611$ 117,182,715$ 2,863,392$

231

_______________________________STATISTICAL SECTION

STATISTICAL SECTION This part of Kitsap County’s comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplemental information says about the government’s overall financial health.

Contents Page

Financial Trends S–1

These schedules contain trend information to help the reader understand how the government’s financial performance and well-being have changes over time.

Revenue Capacity S–7

These schedules contain information to help the reader assess the government’s most significant local revenue sources, the property tax.

Debt Capacity S-11

These schedules present information to help the reader assess the affordability of the government’s current levels of outstanding debt and the government’s ability to issue additional debt in the future.

Demographic and Economic Information S-16

These schedules offer demographic and economic indicators to help the reader understand the environment with which the government’s financial activities take place.

Operating Information S-18

These schedules contain service and infrastructure data to help the reader understand how the information in the government’s financial report relates to the services the government provides and the activities it performs.

KITSAP COUNTY, WASHINGTON Table 1

Net Position by ComponentLast Ten Fiscal Years(amounts expressed in thousands)

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012Governmental activities

Invested in capital assets, 292,949$ 298,895$ 320,024$ 319,470$ 327,899$ 336,650$ 337,423$ 329,346$ 330,249$ 325,882$ net of related debt

Restricted 3,230 27,645 10,731 21,200 16,531 13,837 21,404 18,758 15,984 13,681 Unrestricted 89,586 67,286 75,333 69,801 75,427 70,512 44,582 50,676 52,207 53,902

Total governmental activities 385,765$ 393,826$ 406,088$ 410,471$ 419,857$ 420,999$ 403,409$ 398,780$ 398,440$ 393,465$ net position

Business-type activitiesInvested in capital assets, 24,249$ 30,097$ 29,942$ 41,407$ 42,020$ 42,903$ 47,506$ 53,159$ 53,847$ 53,332$

net of related debtRestricted 618 19,048 25,708 14,096 11,801 44 44 3,449 3,342 3,342 Unrestricted 68,441 44,928 42,497 45,940 51,476 67,114 67,734 60,168 60,238 62,209

Total business-type activities 93,308$ 94,073$ 98,147$ 101,443$ 105,297$ 110,061$ 115,284$ 116,776$ 117,427$ 118,883$ net position

Primary governmentInvested in capital assets, 317,198$ 328,992$ 349,966$ 360,878$ 369,919$ 379,553$ 384,929$ 382,505$ 384,095$ 379,215$

net of related debtRestricted 3,848 46,693 36,439 35,296 28,332 13,881 21,448 22,207 19,326 17,023 Unrestricted 158,027 112,214 117,830 115,741 126,903 137,626 112,316 110,844 112,446 116,111

Total primary government 479,073$ 487,899$ 504,235$ 511,915$ 525,154$ 531,060$ 518,693$ 515,556$ 515,867$ 512,349$ net position

S - 1


Change in Net PositionLast Ten Fiscal Years(amounts expressed in thousands)

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012ExpensesGovernmental Activities: General Government $21,925 $20,925 $19,134 $22,847 $23,571 $26,687 $27,213 $27,402 $25,549 $24,934 Judicial Services 12,244 12,937 13,661 13,801 14,388 14,611 14,577 13,506 13,872 13,331 Public Safety 31,211 35,253 41,094 45,588 50,515 51,517 51,901 50,796 49,375 49,145 Physical Environment 1,314 1,464 1,509 2,613 4,956 3,982 4,198 4,588 3,044 3,288 Transportation 34,160 34,428 35,615 37,956 37,485 37,460 37,761 36,831 37,020 38,056 Health & Human Services 38,455 36,166 34,968 34,837 40,585 44,876 47,931 46,998 43,615 43,974 Economic Environment 8,146 8,713 8,126 9,041 8,276 8,752 7,639 7,698 6,523 6,747 Culture & Recreation 6,058 6,848 7,206 9,031 8,075 7,293 6,885 6,436 6,766 6,908 Interest on Long-Term Debt 4,557 5,081 4,642 5,105 5,563 5,444 5,367 6,445 5,599 5,399 Total Governmental $158,070 $161,815 $165,955 $180,819 $193,414 $200,621 $203,472 $200,700 $191,363 $191,782Business Type Activities Solid Waste 11,493 12,153 12,737 14,029 16,627 14,033 13,780 13,823 14,373 13,637 Sewer Utility 11,856 11,924 12,426 14,169 14,198 14,886 14,026 14,545 15,763 16,613 Surface Water 4,274 4,351 4,627 4,580 4,710 4,813 5,505 6,150 7,055 7,388 Golf 9 8 8 8 7 27 416 0 0 0 Total Business Type Activities $27,632 $28,436 $29,798 $32,786 $35,542 $33,759 $33,727 $34,518 $37,191 $37,638Total Primary Government Expenses $185,702 $190,251 $195,753 $213,605 $228,956 $234,380 $237,199 $235,218 $228,554 $229,420

Program RevenuesGovernmental Activities

Charges for ServicesGeneral Government $16,387 $16,374 $6,932 $7,167 $8,734 $8,833 $10,327 $10,581 $8,502 $8,639Judicial Services 133 141 3,695 4,277 4,617 4,650 4,486 4,414 4,804 5,007Public Safety 334 385 788 829 1,466 929 1,269 1,289 1,033 1,053Physical Environment 18 32 1,453 1,631 677 5,781 4,068 4,094 3,850 4,224Transportation 1,194 850 1,126 1,186 2,268 2,840 2,462 2,468 3,445 3,012Health & Human Services 288 280 303 279 380 292 219 203 199 182Economic Environment 4,421 4,349 5,330 56 86 79 75 91Culture and Recreation 495 434 943 1,125 997 939 1,117 1,006 1,055 1,449Operating Grants 57,487 55,096 58,557 59,209 69,473 72,120 71,831 72,055 67,947 66,458Capital Grants and Contributions 847 3,191 4,253 3,540 3,799 4,053 1,662 3,265 2,556

Total Governmental Activities $76,336 $74,439 $81,409 $84,305 $97,482 $100,239 $99,918 $97,851 $94,175 $92,671Program Revenues

S - 2


Change in Net PositionLast Ten Fiscal Years(amounts expressed in thousands)

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012Business Type Activities

Charges for ServicesSolid Waste $12,025 $13,196 $13,983 $14,902 $15,083 $13,621 $12,665 $12,407 $12,290 $12,163Sewer Utility 11,422 12,483 13,496 12,826 13,191 14,817 14,398 14,325 15,809 16,029Surface Water 4,499 4,371 4,714 5,333 6,167 6,916 7,347 7,493 7,397 7,394Golf 2 0 0 0 0 0 0Operating Grants 0 0 0 608 1,037 998Capital Grants and contributions 10 228 562 1,824 831 3,117 742 784 1,925

Total business-type activities $27,958 $30,278 $32,193 $33,623 $36,265 $36,185 $37,527 $35,575 $37,317 $38,509program revenuesTotal Primary Government $104,294 $104,717 $113,602 $117,928 $133,747 $136,424 $137,445 $133,426 $131,492 $131,180Program RevenuesNet (Expense)/ RevenueGovernmental Activities (81,734) (87,376) (84,546) (96,514) (95,932) (100,382) (103,554) (102,849) (97,188) (99,111)Business-type activities 326 1,842 2,395 837 723 2,426 3,800 1,057 126 871Total Primary Government Net Expense ($81,408) ($85,534) ($82,151) ($95,677) ($95,209) ($97,956) ($99,754) ($101,792) ($97,062) ($98,240)

General Revenues and Other Changes in Net PositionGovernmental activities Taxes Property taxes, levied for general purposes $46,189 $45,333 $46,589 $46,694 $50,637 $51,816 $52,821 $54,472 $55,249 $56,249 Property taxes, levied for debt service 37 0 0 0 0 0 0 0 0 0 Sales & use taxes 28,347 34,588 29,354 31,354 32,270 29,642 27,339 26,498 26,995 27,008 Fines & forfeits 0 Other taxes 4,525 4,511 13,139 14,537 11,440 9,774 9,288 10,139 9,989 11,062 Investment earnings 2,374 3,044 3,706 5,163 6,440 4,739 3,064 2,183 1,704 1,683 Miscellaneous 3,425 2,490 2,634 2,849 4,147 5,087 5,133 4,763 3,772 3,428

Special item - gain(loss) on assumption of debt 0 (3,352) 108 0 0 0 (10,330) 0 0 (2,578)Extraordinary item - gain(loss) on transfer of 0 0 0 0 0 0 (2,168) (216) 0 (1,081)

assets to Port Orchard - annexation 0 0 0 0 0 0 0 0 0 0Special item - loss on demolition of building 0 0 0 0 0 0 0 0 (1,195) (1,977)

Transfers 750 703 478 300 383 538 542 382 334 349Total Governmental activities $85,647 $87,317 $96,008 $100,897 $105,317 $101,596 $85,689 $98,221 $96,848 $94,143Business-type activities Investment earnings $1,533 $1,231 $1,920 $2,830 $3,042 $2,034 $1,189 $816 $859 $649 Miscellaneous 2,420 374 42 105 471 842 776 0 0 0 Special item - gain(loss) on sale of capital assets 0 0 195 0 0 0 0 0 0 0 Transfers (750) (703) (478) (299) (383) (538) (542) (382) (334) (349)Total business-type activities $3,203 $902 $1,679 $2,636 $3,130 $2,338 $1,423 $434 $525 $300Total Primary Government $88,850 $88,219 $97,687 $103,533 $108,447 $103,934 $87,112 $98,655 $97,373 $94,443

Change in Net PositionGovernmental activities 3,913 (59) 11,462 4,383 9,385 1,214 (17,865) (4,628) (340) (4,968)Business Type activities 3,529 2,744 4,074 3,473 3,853 4,764 5,223 1,491 651 1,171Total Primary Government $7,442 $2,685 $15,536 $7,856 $13,238 $5,978 ($12,642) ($3,137) $311 ($3,797)

S - 3


Fund Balances of Govermental FundsLast Ten Fiscal Years(amounts expressed in thousands)

2003 2004 2005 2006 2007 2008 2009 (1) 2010 2011 (2) 2012General Fund (Per GASB 54) (2)

Nonspendable - - - - - - - - $440 $443Restricted - - - - - - - - - - Committed - - - - - - - - - - Assigned - - - - - - - - - - Unassigned - - - - - - - - 13,233 18,018

General Fund (Prior to GASB 54) (2) Reserved $182 $11,877 $11,577 $11,577 $11,577 $11,197 $462 $451 - - Unreserved 12,783 13,831 12,125 9,031 9,313 6,581 5,111 7,900 - - Total General Fund $12,965 $25,708 $23,702 $20,608 $20,890 $17,778 $5,573 $8,351 $13,673 $18,461

All Other Governmental Funds (Per GASB 54) (2)Nonspendable - - - - - - - - $9,785 $9,260Restricted - - - - - - - - 55,836 26,728 Committed - - - - - - - - 1,535 32,334 Assigned - - - - - - - - Unassigned - - - - - - - - (413) -

All Other Governmental Funds (Prior to GASB 54) (2) Reserved $3,230 $0 $0 $0 $0 $2,267 $2,713 $2,042 - - Unreserved, reported in: Special Revenue Funds 46,797 45,671 53,012 53,783 58,430 51,796 46,522 49,966 - - Debt Service Funds 3,259 3,824 3,377 1,777 1,506 12,319 11,716 - - Capital Projects Funds 33,175 24,386 6,906 17,823 14,754 12,331 9,052 7,074 - - Total all other Governmental Funds $83,202 $73,316 $63,742 $74,983 $74,961 $67,900 $70,606 $70,798 $66,743 $68,322

(1) Receivable/Reserved fund balance moved from General fund to Debt Service fund ($11.015 million).

(2) Prior to the implmentation of GASB Statement No. 54 in 2011, fund balances were classified as Reserved or Unreserved. Under GASB Statement No. 54, fund balances are classified as Nonspendable, Reserved, Committed, Assigned or Unassigned. General Fund's Fund Balance includes fund balances of thirteen funds previously classified as Special Revenue funds, that did not meet the new Special Revenue fund definition of GASB Statement No. 54. See Note 1.12 for details.

S - 4


Changes in Fund Balances, Govermental FundsLast Ten Fiscal Years(amounts expressed in thousands)

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012Revenues

Property Taxes $46,189 $45,333 $46,589 $46,695 $50,638 $51,816 $52,821 $54,472 $55,249 $56,249Retail Sales & Use Taxes 28,347 34,588 29,354 31,354 32,270 29,641 27,339 26,498 26,995 27,008Other Taxes 4,562 4,511 13,139 14,537 11,439 9,774 9,288 10,139 9,989 11,062Licenses and Permits 3,130 2,983 3,435 3,308 3,286 2,637 1,847 2,597 2,415 2,782Intergovermental 57,487 55,943 61,748 63,462 73,003 75,919 75,884 73,717 71,212 68,703Charges for Services 12,829 12,603 13,587 14,472 15,185 15,824 15,894 15,463 14,066 14,605Fines & Forfeits 2,889 2,908 2,639 3,063 3,523 2,998 2,719 2,452 2,820 3,105Investment Earnings 2,374 3,044 3,706 5,163 6,449 4,739 3,064 2,183 1,704 1,682Miscellaneous 3,425 2,490 2,634 2,714 4,077 5,028 4,669 4,724 3,749 3,415

Total Revenues $161,232 $164,403 $176,831 $184,768 $199,870 $198,376 $193,525 $192,245 $188,199 $188,611

ExpendituresCurrent:

General Government $21,109 $23,148 $23,456 $25,770 $26,840 $28,817 $27,540 27,173$ $24,376 $25,254Judicial Services 12,176 12,876 13,611 13,769 14,367 14,592 14,556 13,486 13,854 13,312Public Safety 29,394 33,011 38,193 42,394 45,790 47,059 47,703 45,942 45,071 44,512Physical Environment 1,314 1,464 1,509 2,613 4,956 3,982 4,198 4,588 3,044 3,289Transportation 18,750 19,015 20,537 23,502 22,124 23,404 23,249 23,744 24,208 25,215Health & Human Services 38,283 35,995 34,810 34,683 40,433 44,725 47,780 46,854 43,475 43,834Economic Environment 8,117 8,689 8,104 9,025 8,260 8,737 7,624 7,684 6,518 6,743Culture and Recreation 5,470 6,201 6,221 7,952 6,944 6,053 5,482 5,165 5,479 5,595

Debt Service Principal 12,007 9,880 7,504 7,165 5,744 6,129 17,438 9,692 11,567 9,803Interest and Other Charges 4,557 5,081 4,642 5,350 5,567 5,444 6,664 5,959 5,275 5,075Capital Outlay 39,511 40,242 30,041 23,188 19,014 19,917 14,678 8,038 10,379 4,406

Total Expenditures $190,688 $195,602 $188,628 $195,411 $200,039 $208,859 $216,912 198,325$ 193,246$ 187,038$ Excess (Deficiency) of Revenues

Over Expenditures ($29,456) ($31,199) ($11,797) ($10,643) ($169) ($10,483) ($23,387) ($6,080) ($5,047) $1,573

S - 5


Changes in Fund Balances, Govermental FundsLast Ten Fiscal Years(amounts expressed in thousands)

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012Other Financing Sources (Uses):

Proceeds from BANS $0 $0 $0 $0 $0 $0 $40,546 $876 $640 $492Refunding Bonds Issued 0 3,424 20,226 18,085 0 0 0 9,416 20,422 0Premiums on Bonds 0 0 0 338 0 0 0 73 869 0Capital-Related Debt Issued 27,591 17,314 0 0 0 0 0 0 0 0Payment to Bond Refunding Escrow Agent 0 0 (20,507) 0 0 0 0 (7,141) (21,363) 0Sale of Capital Assets 21 1,070 108 135 0 4 0 7 0 567Transfers In 32,597 23,248 25,391 38,880 18,443 18,792 29,349 20,725 15,780 17,659Transfers Out (31,462) (22,396) (24,974) (38,649) (18,015) (18,416) (28,775) (20,373) (15,492) (17,607)Other Adjustments 0 0 0 0 0 0 0 0 0 0

Total Other Financing Sources & Uses $28,747 $22,660 $244 $18,789 $428 $380 $41,120 $3,583 $856 $1,111Special Items

Payment of Assumed Debt 0 0 0 0 0 0 (54,103) 0 0 0Special Item-Sales of Pledged Assets 0 0 0 0 0 0 26,595 5,468 5,459 3,688

Total Special Items 0 0 0 0 0 0 (27,508) 5,468 5,459 3,688 Net Change in Fund Balance ($709) ($8,539) ($11,553) $8,146 $259 ($10,103) ($9,775) $2,971 $1,268 $6,372

Debt Service as a Percentage of

Non-capital Expenditures 11.0% 9.6% 7.7% 7.3% 6.2% 6.1% 11.9% 8.2% 9.2% 8.1%

S - 6


Assessed and Estimated Actual Value of Taxable PropertyLast Ten Fiscal Years(amounts expressed in thousands)

REAL PROPERTY PERSONAL PROPERTYRatio of Total Total Kitsap

Estimated Estimated Estimated Assessed Value County Fiscal Assessed Actual Assessed Actual Assessed Actual To Total Estimated Levy Rate Year Value Value Value Value Value Value Actual Value per $1,000

2003 15,814,919$ 18,053,560$ 356,574$ 356,574$ 16,171,493$ 18,410,134$ 88.0% 3.28

2004 16,783,067$ 19,158,752$ 323,409$ 323,409$ 17,106,476$ 19,482,161$ 88.0% 2.84

2005 18,768,099$ 21,899,765$ 313,811$ 313,811$ 19,081,910$ 22,213,576$ 87.0% 3.03

2006 22,686,482$ 25,235,241$ 356,620$ 356,620$ 23,043,102$ 25,591,861$ 90.1% 2.61

2007 27,857,987$ 31,801,355$ 433,991$ 433,991$ 28,291,978$ 32,235,346$ 87.9% 2.21

2008 31,882,028$ 36,395,009$ 456,171$ 465,956$ 32,338,199$ 36,860,965$ 87.8% 2.02

2009 31,870,208$ 37,058,381$ 421,446$ 434,929$ 32,291,654$ 37,493,310$ 86.2% 2.09

2010 29,476,028$ 34,314,352$ 442,035$ 447,404$ 29,918,063$ 34,761,756$ 86.2% 2.32

2011 27,707,518$ 31,414,420$ 443,635$ 449,934$ 28,151,153$ 31,864,354$ 88.4% 2.50

2012 26,438,990$ 29,840,846$ 412,734$ 419,445$ 26,851,724$ 30,260,291$ 88.8% 2.66

Source: Kitsap County Assessor

TOTALS

S - 7


Property Tax Rates - All Overlapping GovernmentsPer $1,000 of Assessed ValueLast Ten Years

Total Public Fiscal Kitsap County Kitsap School Fire Port Public Utility Year County* Roads County Districts Districts Districts Cities Library District Other* Totals

2003 1.60 1.92 3.52 7.01 1.71 0.39 2.33 0.47 0.10 2.54 18.07

2004 1.41 1.87 3.28 7.01 1.69 0.38 2.33 0.46 0.10 1.14 16.39

2005 1.31 1.72 3.03 6.59 1.58 0.35 2.21 0.43 0.09 1.74 16.02

2006 1.13 1.47 2.60 5.74 1.43 0.30 1.97 0.37 0.08 1.72 14.21

2007 0.96 1.25 2.21 5.12 1.41 0.50 1.71 0.31 0.07 1.38 12.71

2008 0.88 1.14 2.02 4.61 1.34 0.46 1.52 0.28 0.06 1.26 11.55

2009 0.90 1.18 2.08 4.74 1.40 0.46 1.57 0.29 0.06 1.36 11.96

2010 0.99 1.33 2.32 5.21 1.70 0.50 1.73 0.33 0.07 1.50 13.36

2011 1.07 1.43 2.50 5.49 1.79 0.52 1.87 0.35 0.07 1.50 14.09

2012 1.13 1.52 2.65 6.19 1.82 0.53 1.95 0.37 0.08 1.59 15.18


*Includes Current Expense, Conservation Futures, and Cencom / 911 Facility.

Kitsap County Other Taxing Districts

S - 8


Principal Property TaxpayersDecember 31, 2012(amounts expressed in thousands)

2012 2003

Percent of Percent ofCounty County

Assessed Assessed Assessed AssessedName Value Rank Value** Value Rank Value**

Puget Sound Energy 117,671 1 0.43% 124,275 1 0.75%PPR Kitsap Mall LLC J325 78,868 2 0.29% 51,379 3 0.31%Qwest Corporation 53,484 3 0.20% 68,942 2 0.42%Walmart 41,018 4 0.15% 16,950 7 0.10%ABS WA O LLC (Albertsons) 37,798 5 0.14% 15,086 9 0.09%Fred Meyer 37,020 6 0.14% 27,007 4 0.16%PK 1 Silverdale Shopping Center LLC 33,075 7 0.12% - 0.00%Fairgrounds Road LLC 31,013 8 0.11% 14,781 10 0.09%Ryan Tim Properties 28,975 9 0.11% - 0.00%Cascade Natural Gas 28,116 10 0.10% 20,451 5 0.12%Kitsap Credit Union 28,053 11 0.10% - 0.00%Mentor J P 25,327 12 0.09% 11,313 12 0.07%United Telephone Co of the NW 23,227 13 0.09% 19,695 6 0.12%NA Mariners Glen 68 LP 20,517 14 0.08% - 0.00%Home Depot USA Inc 19,769 15 0.07% - SK Santa Fe Ridge LLC et al 19,604 16 0.07% - 0.00%Olhava Associates Lmtd Ptnsp 19,250 17 0.07% - ONL IDA Seven Stones LLC 19,134 18 0.07% - Treetops Investors LLC 18,194 19 0.07% - 0.00%GFS Wellington LLC 18,037 20 0.07% - PNW Island Village LLC 15,432 8 0.09%Century Tel of WA INC (T141) 12,781 11 0.08%Comcast of CA/CO/WA LP 10,814 13 0.07%Wave Division IV LLC 10,152 14 0.06%Poulsbo Retirement Center 8,910 15 0.05%Costco Whoelsale Corp 8,611 16 0.05%FW Outlook Apartments LLC 8,331 17 0.05%Quail Hollow Assoc/Greystone Serv Corp 7,843 18 0.05%PPR North Point LLC J335 7,741 19 0.05%JC Penney Corporation 2353 7,668 20 0.05%

$698,149 2.57% $468,161 2.84%


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Property Tax Levies and Collections*Last Ten Fiscal Years(amounts expressed in thousands)

Taxes Levied Total Collections in Fiscal for the Year Adjusted Percentage Subsequent Percentage Percentage Year (Original Levy) Adjustments (1) Tax Levy Amount of Levy Years Amount of Adj Levy Amount of Adj Levy

2003 46,223,816 (242,238) 45,981,578 44,498,726 96.27% 1,422,529 45,921,255 99.87% 60,323 0.13%

2004 45,093,677 (28,399) 45,065,278 43,843,776 97.23% 1,169,800 45,013,576 99.89% 51,702 0.11%

2005 46,468,494 (187,803) 46,280,691 45,220,519 97.31% 972,192 46,192,711 99.81% 87,980 0.19%

2006 48,300,730 (100,430) 48,200,300 46,994,481 97.30% 1,148,628 48,143,109 99.88% 57,191 0.12%

2007 50,348,481 514,746 50,863,227 49,536,310 98.39% 1,279,854 50,816,164 99.91% 47,063 0.09%

2008 52,321,920 25,164 52,347,084 50,776,187 97.05% 1,516,191 52,292,378 99.90% 54,706 0.10%

2009 53,644,646 (53,455) 53,591,191 51,777,046 96.52% 1,728,995 53,506,041 99.84% 85,150 0.16%

2010 54,581,251 (137,027) 54,444,224 52,778,658 96.70% 1,268,326 54,046,984 99.27% 397,240 0.73%

2011 55,458,279 (188,563) 55,269,716 53,687,415 96.81% 916,489 54,603,904 98.80% 665,812 1.20%

2012 56,410,557 (131,147) 56,279,410 54,763,640 97.08% - 54,763,640 97.31% 1,515,770 2.69%

Source: Kitsap County Treasurer

* Excludes Agency Funds.(1) Adjustments in original levy are due to omits, cancellations and supplements during the fiscal year.(2) The amounts in the total uncollected taxes column are cumulative totals of all taxes levied at the end of the year.

Note: The levy of any given fiscal year is based on the assessed values from the tax roll of the preceding calendar year.

Collected in the Year of the Levy Total Collections to Date Total Uncollected Taxes (2)

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Ratios of Outstanding Debt by TypeLast Ten Fiscal Years(amounts expressed in thousands, except per capita amount)

Governmental Activities Business-Type Activities

General Special General Total Percentage Fiscal Obligation Assessment Other Sewer Obligation Other Primary of Personal Per Year Bonds Bonds Debt (2) Bonds Bonds Debt (2) Government Income (1) Capita (1)

2003 $ 99,341 $ 170 $ 6,758 $ 40,320 $ 634 $ 432 $ 147,936 1.895% $ 619

2004 $ 110,300 $ 135 $ 6,619 $ 37,615 $ 535 $ 8,751 $ 164,132 1.981% $ 686

2005 $ 103,222 $ 75 $ 6,446 $ 35,455 $ 433 $ 12,599 $ 158,347 1.802% $ 671

2006 $ 114,344 $ 65 $ 6,240 $ 20,715 $ 331 $ 12,092 $ 153,844 1.651% $ 642

2007 $ 108,789 $ 45 $ 6,036 $ 19,150 $ 221 $ 11,476 $ 145,717 1.452% $ 612

2008 $ 102,866 $ 5 $ 5,829 $ 17,520 $ 114 $ 10,854 $ 137,188 1.304% $ 572

2009 $ 100,335 $ 0 $ 31,438 $ 15,825 $ 0 $ 10,225 $ 157,822 1.510% $ 655

2010 $ 97,862 $ 0 $ 27,292 $ 52,535 $ 0 $ 10,400 $ 188,089 1.766% $ 747

2011 $ 91,962 $ 0 $ 24,484 $ 50,620 $ 0 $ 9,485 $ 176,551 1.701% $ 724

2012 $ 84,644 $ 0 $ 22,489 $ 48,650 $ 0 $ 11,484 $ 167,267 N/A $ N/A

Source: Kitsap County Treasurer

Note: Details regarding the County's outstanding debt can be found in the notes to the financial statements.(1) See the Schedule of Demographic and Economic Statistics for personal income and population data.(2) Other Debt - Governmental Activities includes various Public Works Trust Funds debt, notes payable

Bremerton Government Center, Bank of America/BAN - KCCHA debt refinance; Other Debt - Business Type Activities includes various Public Works Trust Fund debt.

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(amounts expressed thousands, except per capita amount)

Net Bonded GeneralObligation Debt as a Net Bonded General

General Less: Amounts Total Net Bonded Percentage of Obligation DebtFiscal Obligation Available in Debt General Obligation Estimated Actual Value Per Year Bonds Service Funds (2) Debt of Property Capita (1)

2003 99,975 2,927 97,048 0.53% 409

2004 110,835 2,889 107,946 0.55% 451

2005 103,655 3,246 100,409 0.45% 418

2006 114,675 2,972 111,703 0.44% 459

2007 109,010 1,686 107,324 0.33% 438

2008 102,980 1,414 101,566 0.28% 412

2009 100,335 12,276 88,059 0.23% 356

2010 97,862 11,540 86,322 0.25% 344

2011 91,962 10,879 81,083 0.25% 319

2012 84,644 10,291 74,353 0.25% 292

Source: Kitsap County Treasurer, Kitsap County Assessor

Note: Details regarding the County's outstanding debt can be found in the notes to the financial statements. See the Schedule of Assessed Value and Estimated Actual Value of Taxable Property

(1) Population data can be found in the Schedule of Demographic and Economic Statistics (2) Increase in 2009 due to reclassification of a Note Receivable from General Fund into Debt Service Fund where debt is paid.

Less available is all outstanding debt listed on Schedule 09 that has a fund balance at the end of the year.

Ratios of General Bonded Debt OutstandingLast Ten Fiscal Years

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Computation of Direct and Overlapping DebtDecember 31, 2012

Percentage AmountNet Debt Applicable to Applicable to

Jurisdiction Outstanding Kitsap County Kitsap County Direct:Kitsap County 107,133,369$ 100% 107,133,369$

Overlapping debt:Cities 69,872,625$ 100% 69,872,625$

School Districts 151,178,149$ 100% 151,178,149$

Park Districts 2,855,000$ 100% 2,855,000$

Fire Districts 5,893,098$ 100% 5,893,098$

Port Districts 6,468,876$ 100% 6,468,876$

Library Capital Facility 145,000$ 100% 145,000$

Utility Districts 4,565,000$ 100% 4,565,000$

Total Overlapping 240,977,748$ 240,977,748$

Total Direct &Overlapping 348,111,117$ 348,111,117$

Note: All overlapping governments with debt are contained within the boundaries of the County. Source: Kitsap County Treasurer

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Legal Debt Margin InformationLast Ten Fiscal Years(amounts expressed in thousands)

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Debt Limit 412,352$ 435,236$ 484,627$ 583,009$ 714,487$ 816,307$ 814,933$ 754,916$ 710,862$ 678,312$

Total net debt applicable to limit 85,300 117,631 110,218 120,973 115,046 108,809 131,773 125,153 116,446 107,133

Legal debt magin 327,052$ 317,605$ 374,409$ 462,036$ 599,441$ 707,498$ 683,160$ 629,763$ 594,416$ 571,179$

Total net debt applicable to the limit as a percentage of debt limit 20.69% 27.03% 22.74% 20.75% 16.10% 13.33% 16.17% 16.58% 16.38% 15.79%

Legal Debt Margin Calculation for Fiscal Year 2012

Assessed value 27,132,483,757$ Total assessed value 27,132,483,757$

Debt limit (2.5% of total assessed value) 678,312,094Debt applicable to limit:

General Obligation bonds 84,644Other debt 22,489Total net debt applicable to limit 107,133

Legal debt margin 678,204,961$

Note: Under Washington State finance law, Kitsap County's outstanding general obligation debt should not exceed 2.5% of totalassessed property value (or 5%, provided the indebtedness in excess of 2.5% is for utilities, parks, or open space development).By law, general obligation debt subject to the limitation may be offset by the amount set aside for repaying general obligation bonds.

Fiscal Year

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Pledged Revenue Coverage Last Ten Fiscal Years(amounts expressed in thousands)

Sewer Less: Net Special Debt ServiceFiscal Charges Operating Available AssessmentYear and Other (1) Expenses (2) Revenue Principal Interest Total Coverage Collections Principal Interest Total Coverage

2003 12,369,203 7,233,155 5,136,048 1,560,000 1,503,863 3,063,863 1.68 53,607 50,000 11,658 61,658 0.87

2004 13,192,175 7,305,104 5,887,071 2,705,000 1,396,356 4,101,356 1.44 76,559 35,000 8,998 43,998 1.74

2005 13,516,012 8,130,635 5,385,377 2,160,000 1,324,212 3,484,212 1.55 19,597 60,000 7,175 67,175 0.29

2006 13,355,656 8,734,549 4,621,107 1,445,000 1,070,334 2,515,334 1.84 20,637 10,000 4,010 14,010 1.47

2007 14,595,251 8,686,432 5,908,819 1,565,000 922,287 2,487,287 2.38 18,700 20,000 3,478 23,478 0.80

2008 15,744,093 9,649,643 6,094,450 1,630,000 862,471 2,492,471 2.45 20,072 40,000 2,408 42,408 0.47

2009 14,947,282 9,346,812 5,600,470 1,695,000 795,720 2,490,720 2.25 10,339 5,000 268 5,268 1.96

2010 14,693,440 9,548,330 5,145,110 1,765,000 777,645 2,542,645 2.02 0 0 0 0 N/A

2011 16,123,263 9,370,873 6,752,390 1,915,000 2,103,593 4,018,593 1.68 0 0 0 0 N/A

2012 16,410,931 10,228,273 6,182,658 1,970,000 471,515 2,441,515 2.53 0 0 0 0 N/A

Note: Details regarding the government's outstanding debt can be found in the notes to the financial statements.(1) Sewer charges and other includes investment earnings but not tap fees.(2) Operating expenses do not include interest or depreciation.

Sewer Revenue Bonds Special Assessment Bonds

Debt Service

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Demographic StatisticsLast Ten Fiscal Years

Personal PerIncome Capita(millions Personal School Unemployment

Fiscal Population of dollars) Income Enrollment Rate Year (1) (2) (3) (4) (5)

2003 237,000 7,807 32,680 46,296 6.7

2004 239,500 8,285 34,639 45,884 5.8

2005 240,400 8,787 37,228 45,009 5.1

2006 243,400 9,320 38,872 45,964 4.6

2007 244,800 10,038 42,163 42,926 4.4

2008 246,800 10,518 43,851 40,463 5.0

2009 247,600 10,454 43,404 40,678 7.7

2010 251,133 10,649 42,300 39,280 8.2

2011 * 253,900 10,377 42,580 39,642 7.9

2012 * 254,500 10,842 N/A 38,888 7.4

Sources:(1) State of Washington - Office of Financial Management (2) Bureau of Economic Analysis, an agency of the U.S. Department of Commerce(2) Bureau of Economic Analysis, an agency of the U.S. Department of Commerce(4) Washington Office of Superintendent of Public Instruction and Private School Review(5) Washington Employment Security Department//LMEA; US Bureau of Labor Statistics, Local Area Unemployment Statistics

* Estimate

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Principal EmployersCurrent year and Ten Years Ago

2011 (1) 2003

Percentage of Percentage of Total County Total County

EMPLOYER Employees Rank Employment Employees Rank Employment

(2) Naval Base Kitsap 30,649 1 36.97% 31,446 1 39.36%

Harrison Medical Center 2,379 2 2.87% 1,513 6 1.89%

Central Kitsap School District 1,491 3 1.80% 1,605 4 2.01%

Olympic College 1,359 4 1.64%

WA State Government 1,262 5 1.52% 2,200 3 2.75%

Kitsap County 1,169 6 1.41% 1,587 5 1.99%

Walmart 1,003 7 1.21%

South Kitsap School District 1,002 8 1.21% 1,198 7 1.50%

North Kitsap School District 824 9 0.99% 878 9 1.10%

Port Madison Enterprieses 770 10 0.93%

Bremerton School District 2,520 2 3.15%

Johnson Controls World Services 1030 8 1.29%

Total 41,908 50.55% 43,977 55.04%

Sources: Kitsap Economic Development Alliance 2003 Kitsap County CAFR

(1) This table contans 2011 information because 2012 Principal Employer information is currently not available.(2) "Naval Base Kitsap" is the total of all military bases in Kitsap County

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Full-time Equivalent County Employees by FunctionLast Ten Fiscal Years

2003 2004 2005 2006 2007 2008 2009 2010 2011 (1) 2012

Governmental Activities: General Government Administrative Services 8 8 10 10 10 11 10 11 11 9 Assessor 33 33 33 33 33 32 32 32 23 23 Auditor 34 34 35 35 37 37 39 39 29 29 Commissioners 12 12 12 12 12 12 12 15 10 10 ER&R 16 16 16 16 15 16 16 15 16 16 Facilities Maintenance 28 29 29 29 21 21 Information Services 28 26 28 28 30 29 33 33 33 35 Personnel 11 16 16 16 17 16 15 15 13 12 Printing Purchasing 3 3 3 3 3 3 4 4 2 2 Self insurance 3 3 3 3 3 3 3 3 3 1 Treasurer 14 13 13 13 13 13 13 13 11 11 Workers Compensation 2 5 5 5 2 2 2 2 3 2 Total General Government 164 169 174 175 203 203 208 211 175 171

Judicial Services: 210 180 190 190 198 195 199 204 174 172 Public Safety 387 408 416 417 444 456 460 461 406 393 Physical Environment 3 4 4 4 3 3 3 3 3 3 Transportation 154 139 139 139 141 140 141 140 146 142 Health & Human Services 89 79 84 84 81 87 88 88 83 84 Economic Environment 61 76 84 84 90 92 90 90 47 48 Culture and Recreation 55 51 58 58 55 35 36 34 30 31 Total Governmental 959 936 975 976 1012 1008 1017 1020 889 873

Business Type Activities: Solid Waste 20 21 21 22 22 22 25 25 25 25 Sewer Utility 60 60 58 58 63 63 62 61 64 64 Surface Water 27 29 28 28 30 29 12 30 30 30 Total Business Type Activities 107 110 107 108 115 115 99 116 119 119

Total Government 1230 1215 1256 1258 1330 1326 1324 1347 1183 1163

Source: Position control budget file years 2002 - 2003 and Kitsap County Budget Book years 2004 - 2012.

(1) Beginning in 2011, only authorized funded positions are included in the County's FTE count; unfunded positions that were included in prior years' FTE counts are not included for 2012.

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Operation Indicators by Function/ ProgramLast Ten Fiscal Years

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012Function

Judicial Services Prosecutor Total Criminal Referrals 14,655 14,705 15,131 15,237 15,674 14,831 13,424 11,348 15,459 N/A

Public Safety Sheriffs Complaint Reports 18,591 16,668 16,033 16,965 16,840 16,631 14,859 14,376 14,553 14,238 Jail Bookings 8,305 8,253 8,675 9,458 10,866 10,204 10,180 9,835 9,359 9,031 Average Daily Jail Population 292 340 409 404 488 408 376 436 461 396 Cencom Emergency Calls Answered 266,347 271,557 279,405 287,983 221,651 155,904 157,027 159,937 157,381 166,809 Incidents Dispatched 225,958 233,955 240,721 248,113 242,855 239,995 238,097 244,984 247,602 283,861

Transportation Roads Sealcoating (center ln. miles) 29.84 22.81 28.11 18.11 19.39 0 0 17.17 0.00 12.54 Maintenance Overlays (center ln. miles 18.66 17.34 18.48 23.05 20.52 15.99 16.09 18.37 44.82 17.01

Business Type Activities Sewer Utility Total Treated Sewage (gallons) (1) 1,536,342 1,482,153 1,481,965 1,722,543 1,536,700 1,530,734 1,470,900 1,620,600 1,526,400 1,461,400 Sewer Permits Issued 164 132 125 103 84 162 120 68 131 112 Surface and Storm Water Management Catch Basins Maintained 9,935 10,478 10,340 10,912 7,560 11,000 11,015 7,196 6,081 7,566 Number of Request for Action 84 38 35 27 22 136 93 131 117 203 Solid Waste Tons of Garbage Disposed 190,935 200,483 204,944 215,909 217,824 196,439 182,299 181,156 178,024 176,398 Tons of Recyclables Collected 33,476 36,291 36,289 36,302 36,702 36,294 37,254 36,383 36,592 36,730

Sources: Various County Departments

Note: Some indicators are not available for government functions.

(1) Reported in thousands

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Capital Asset Statistics by FunctionLast Ten Fiscal Years

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012Function

Judicial Services (1) Superior Court Rooms 9 9 9 9 9 9 8 8 8 8 District Court Rooms 5 5 5 5 5 5 4 4 4 4

Public Safety Sheriffs Stations 3 3 3 3 3 3 3 3 3 3 Jail Beds (2) 568 568 568 568 587 587 587 587 587 587 Juvenile Detention Center Beds 65 65 65 65 103 103 103 103 103 103 Cencom Buildings 1 1 1 1 1 1 1 1 1 1 Broadcast Towers 6 6 6 6 6 5 5 5 8 9

Transportation Roads Miles of Roads Maintained 929 929 929 933 939 930 914 923 921 904 Traffic Signals 34 35 35 37 41 43 44 44 41 44 Street Lights 411 452 476 476 496 496 545 545 545 554

Culture and Recreation Parks Developed parks 67 68 74 75 77 78 78 81 79 79 Parks acreage 3,403 4,603 5,643 5,693 5,800 5,694 5,800 6,119 6,344 6,344

Buniness Type Activities Sewer Utility Treatment Plants 4 4 4 4 4 4 4 4 4 4 Pump Stations 64 65 65 65 65 67 64 64 64 64 Surface and Storm Water Management Number of Retention Facilities (Ponds) 414 484 494 551 551 551 551 551 413 459 Solid Waste Transfer Stations 4 4 4 4 4 4 4 4 4 4

Sources: Various County Departments

Note: Some indicators are not available for government functions.

(1) Includes both Juvenile and Adult courts

(2) Breakdown of Jail Beds: 479 regular beds, 108 floor space

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COMPREHENSIVE ANNUAL FINANCIAL REPORTgfoa.net/cafr/COA2012/KitsapCountyWA.pdf · 2014-05-14 ·...

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