Letter of Transmittal - San Diego County, California · 2019. 2. 8. · Letter of Transmittal the...

County of San Diego Comprehensive Annual Financial Report For the Year Ended June 30, 2008 1

Letter of Transmittal

Introductory Section


December 10, 2008

Honorable Members of the Board of Supervisors

County of San Diego

San Diego County Administration Center

San Diego, California, 92101

Ladies and Gentlemen:

The Comprehensive Annual Financial Report(CAFR) of the County of San Diego (County) forthe fiscal year ended June 30, 2008, is herebysubmitted in compliance with Sections 25250and 25253 of the Government Code of theState of California.

Management assumes full responsibility for thecompleteness and reliability of the informationcontained in this report, based upon acomprehensive internal control framework itestablished for this purpose. Because the cost ofinternal control should not exceed anticipatedbenefits, the objective is to provide reasonable,rather than absolute, assurance that thefinancial statements are free of any materialmisstatements.

Macias Gini & O’Connell LLP, Certified PublicAccountants, have issued an unqualified(“clean”) opinion on the County of San Diego’sfinancial statements for the year ended June30, 2008. The independent auditor’s report islocated at the front of the financial section ofthis report.

Management’s discussion and analysis (MD&A)immediately follows the independent auditor’sreport and provides a narrative introduction,overview, and analysis of the financialstatements. MD&A complements this letter of

transmittal and should be read in conjunctionwith it.

COUNTY PROFILESan Diego County is the southernmost majormetropolitan area in the State of California andcovers 4,261 square miles, extending 70 milesalong the Pacific Coast from Mexico to OrangeCounty, and inland 75 miles to Imperial Countyalong the international border shared withMexico. Riverside and Orange counties formthe northern boundary. The County enjoys awide variety of climate and terrain, from coastalplains and fertile inland valleys to mountainranges and the Anza-Borrego Desert in the east.The Cleveland National Forest occupies muchof the interior portion of the County. The climateis equable in the coastal and valley regionswhere most resources and population arelocated. The average annual rainfall in thecoastal areas is 10 inches, so the County ishighly dependent on imported water.

The County population in January 2008 wasestimated to be 3,146,274, an increase of 1.5%over the January 2007 estimated figure of3,098,269, and it is the second largest county bypopulation in California behind Los Angelescounty. There are 18 incorporated cities in theCounty; of them, the City of San Diego is the

2 Comprehensive Annual Financial Report For the Year Ended June 30, 2008 County of San Diego


largest, with a population of approximately1.337 million, and Del Mar is the smallest, with apopulation of approximately 4.6 thousand. Inaddition, Tijuana, Mexico, with a population ofapproximately 1.5 million, is a substantial urbanneighbor with a shared border, workforce, andeconomy.

The racial and ethnic composition of theCounty is as diverse as its geography.According to population projections by theState of California Department of Finance, SanDiego's population breakdown in 2010 will be46% White, 34% Hispanic, 11% Asian and PacificIslander, 6% Black, and 3% all other groups. From1990 to 2000, the growth in the Hispanicpopulation, 47%, significantly exceeded totalCounty population growth of 13%. San DiegoAssociation of Governments (SANDAG) projectsthat both the Hispanic and Asian populationshares will continue to increase through 2030.SANDAG also projects an older San DiegoCounty by 2030, based on statistics such asmedian age.

COUNTY GOVERNMENT, ECONOMY AND OUTLOOK

County Government

The County was incorporated on February 18,1850, and functions under a charter adopted in1933, as subsequently amended from time totime. A five-member Board of Supervisorselected to four-year terms in district nonpartisanelections governs the County. The Board ofSupervisors appoints the Chief AdministrativeOfficer and the County Counsel. The ChiefAdministrative Officer appoints the ChiefFinancial Officer and the Auditor andController. Elected officials head the offices ofthe Assessor/ Recorder/ County Clerk, DistrictAttorney, Sheriff and Treasurer-Tax Collector.

Many of the County's functions are requiredunder County ordinances or by state or federalmandate, as County government is the deliverysystem for federal and state as well as localprograms. The County supports a wide range ofservices to its residents including regionalservices such as elections, public health andwelfare, and environmental services. TheCounty also provides municipal services to theunincorporated areas including law

enforcement, land use planning, parks, andinfrastructure such as roads and waste disposal.State and federally mandated programs,primarily in the social and health services areas,are directed to be maintained at certainminimum levels, with eligible costs subject toreimbursement according to specificguidelines; however, not all mandated costsare reimbursed.

Economy and Outlook

In mid-September, 2008, after several months ofeconomic uncertainty, the financial markets inthe U.S. began experiencing considerableturmoil to which the federal government hasresponded with a plan to restore liquidity andunlock the credit markets that was set in motionon October 3, 2008. The liquidity and credit crisishas spread to the international market as well.County of San Diego management continuesto monitor and assess the national andinternational economic and financial events.The implications of these events are beingexamined to evaluate the impact theseconditions have on the local economy, the costof and demand for County services, and theresources available to provide them.

In recent years, the County has enjoyedeconomic stability. Much of San Diego'seconomic strength has been derived fromemployment gains, commercial and industrialdevelopment, and steady population growth.For example, the unemployment rate for theCounty has been lower than that of the Statefor the last 8 years. While the unemploymentrate has remained lower than the State rate,the County's unemployment rate has increasedfrom 4.59% in 2007 to 6.4% as of July 2008. TheState unemployment rate as of July 2008 is 7.6%.Since the early 1990's San Diego County hasseen an increasing diversification of economicactivity into research and development andproduct manufacturing in thetelecommunications, biotechnology, militaryproducts, electronics and informationtechnology areas. This diversification isexpected to help maintain overall stabilitydespite the increase in unemployment rates.

The County's economic base consists of asignificant manufacturing presence in the fieldsof electronics and shipbuilding, a large touristindustry attracted by the favorable climate of



the region, and a considerable defense-relatedpresence. Highlights of County employment asof July 2008 are listed below:

Non-agricultural employment totaled1,302,800 jobs. This represents a loss of 4,600jobs from the adjusted July 2007 employmentfigures. The services industry constitutes the largestemployment sector and accounted forapproximately 46.5% of non-agriculturalemployment, with a total of 605,700employed. The wholesale and retail trade industries werethe second largest, with the non-governmentsector, comprising approximately 14.7% ofnon-agricultural employment totaling of191,300 jobs.Government accounted for approximately16.6% of non-agricultural employment. Dueto San Diego's military presence, it isanticipated to remain relatively stable. Manufacturing accounted for an additional7.8% of non-agricultural employment.The construction sector is greatly influencedby the general health of the economy, andin particular, population and housing growth.Construction employment, which accountedfor 6.2% of total non-agricultural employmentor 81,300 jobs, was down 7,500 jobs from July2007. Continued slowing in residentialbuilding permits, increased foreclosures anddeclining home prices are all expected tocontinue to negatively impact constructionjobs through the end of 2008 and into 2009.The financial sector, including finance,insurance, real estate and relatedemployment, represents 5.8% of non-agriculture employment. Financial activitiesexperienced a reduction of 4,700 jobs sinceJuly 2007.Agriculture accounted for approximately0.84% of total employment.As noted above, from July 2007 to July 2008,the San Diego County region experienced anet job loss of 4,600. This compares to anincrease of 11,500 jobs the previous year. It isprojected that the economy will continue to

contract and the downturn will extend intothe first two quarters of 2009 and perhapsbeyond.

County revenues that are affected by the stateof the local economies include property taxes,sales taxes, and charges for services. Keyfactors impacting these revenues include realestate activity and consumer spending whichare in turn greatly influenced by interest ratesand the general economy. Although short andlong-term interest rates are low by historicalstandards and are expected to moderatefurther, there is continued uncertainty about thegeneral direction that the national, state andlocal economies are headed in 2009 given thedistress in the financial markets.

An impact of the overall housing marketdecline is an improvement in the CaliforniaAssociation of Realtors index for first-time buyersthroughout California. Based on the CaliforniaAssociation of Realtors' First Time Buyer HousingAffordability Index, San Diego's housingaffordability index, (the percentage ofhouseholds that can afford to purchase anentry-level home) increased to 41% in March,up from 31% in December 2007, and up from21% in June 2006. This index is based on anadjustable rate mortgage and assumes a 10%down payment and a first-time buyer purchaseof a home equal to 85% of the prevailingmedian price. The improvement in thepercentage of households that could afford tobuy an entry-level home in San Diego wasbased on the market driven drop in entry-levelpriced homes and the correspondingadjustment to the monthly payment needed(including taxes and insurance) and anadjustment to the qualifying income level forthe lower priced entry-level homes. Availabilityof credit and uncertainty about the futuredirection of home prices, however, hasconstrained the market.

Sources: State of California Department ofFinance, San Diego Association ofGovernments (SANDAG) - San Diego's RegionalPlanning Agency, the State of CaliforniaEmployment Development Department, andthe California Association of Realtors.



GENERAL MANAGEMENT SYSTEMThe General Management System (GMS) is theformal comprehensive guide for planning,implementing, monitoring and rewarding allfunctions and processes of CountyGovernment. The GMS establishes goodbusiness practices and fiscal discipline, both ofwhich are essential to achieve the County ofSan Diego's vision, “A County Government thathas earned the respect and support of itsresidents.” The purpose of the GMS is to optimizethe efficient application of resources in thedelivery of services to our residents. Theseresources include not just taxpayer dollars, butall San Diego County assets, including ourunique natural and cultural resources, theexpertise and creativity of County employees,and the informed interest of County residents.The idea behind the GMS is straightforward:County government will be able to providesuperior services if it sets sound goals andapplies strong management principles toachieve those goals.

The County had an adopted annual budget of$4.73 billion and about seventeen thousandemployees (staff years) who serve about threemillion residents spread over more than 4,000square miles. Coordination, fiscal andoperational discipline, and shared commitmentare vital. The GMS facilitates and organizes thegoal setting process. The GMS then links goalsetting and long-range planning and resourceallocation to goal attainment, which includesmonitoring, evaluation, cooperation,motivation, and recognition. The GMS helpsensure that County employees adhere to coreprinciples, promoting a culture that values ouremployees, partners, and customers andinstitutionalizes continuous improvement andinnovation.

The GMS process begins with a long-range, five-year strategic planning process. This is followedby the short-term, two-year operationalplanning process, which encompasses thebudget process, wherein each department'sstrategic objectives and resources allocated toachieving them are detailed. Monitoring andcontrol take place throughout the year.Evaluation mechanisms are used to ensure thatgoals are tracked, plans followed, and risksidentified. Functional threading maximizes

efficient use of personnel and materialresources by coordinating staff and linking thefunctions they perform. Motivation, rewards,and recognition encourage continuingprogress by rewarding those who meet andexceed goals. The system completes a full circlein a fiscal year and begins again with a reviewof the Strategic Plan and development of anew Operational Plan.

County management defines andcommunicates GMS objectives. Lines ofauthority flow from the Board of Supervisors tothe Chief Administrative Officer (CAO), AssistantCAO (ACAO), and the five Group GeneralManagers/Deputy CAOs. These seniormanagers supervise appointed departmentheads, from whom authority flows down to linestaff. Despite the crucial role of management,the success of the GMS depends on strong andeffective leadership at all levels of Countyservice. Every County employee is expected tohelp set goals, strive to achieve them, and berewarded for achievement.

The GMS helps ensure that sound planning,preparedness, and improvement becomepermanent organizational ethics. With the GMSas a guide, the County continues to use strongfiscal management practices, while remainingfocused on providing superior services toCounty residents. The principles and proceduresoutlined by the GMS are meant to apply toevery County function on an ongoing basis.

STRATEGIC AND OPERATIONAL PLANNING (BUDGETARY) PROCESSAs noted above, a five-year Strategic Plan isupdated annually to provide long-termdirection to County managers and staff. Eachfiscal year a two-year Operational Plan isprepared and details each department'sstrategic objectives and the resources requiredto achieve them. The Operational Plan ismonitored regularly and is linked to the GMSsystem of rewards and recognition. The annualLine-Item Budget incorporates the first year ofthe Operational Plan and is formally adoptedby the Board of Supervisors pursuant toGovernment Code 29000 et seq. During theyear, departments may request budgetadjustments for new and existing programs. Inaddition, the Chief Administrative Officer



reviews the status of the County's performanceagainst budget in a quarterly status report tothe Board of Supervisors.

FINANCIAL (BUDGETARY) POLICIESGovernment Code Sections §29000 through§30200 provide the statutory requirementspertaining to the form and content of theCounty's Budget. Government Code Section29009 requires a balanced budget in theproposed and final budgets, defined as “thebudgetary requirements shall equal theavailable financing”.

County Charter Section 703 establishes theChief Administrative Officer as responsible for allGroup/Agencies and their departments(except departments with elected officials asdepartment heads) and for supervising theexpenditures of all departments and reportingto the Board of Supervisors on whether specificexpenditures are necessary.

County Administrative Code Article VIIestablishes the components and timeline for thebudget process and establishes the ChiefAdministrative Officer as responsible for budgetestimates and submitting recommendations tothe Board of Supervisors.

The County has the following financial policiesthat serve as guidelines for the budget process:

Board of Supervisors Policies

A-136 Use of County of San Diego GeneralManagement System for Administration ofCounty Operations: Establishes the GeneralManagement System (GMS) as the formalguide for the administration of Countydepartments, programs and services, andensures that all County departments and officesoperate in compliance with the GMS.

B-29 Fees, Grants, Revenue Contract: Provides amethodology and procedure to encourageCounty departments to recover full cost forservices whenever possible.

B-71 Fund Balance and Reserves: Establishesguidelines regarding the use of fund balanceand the maintenance of reserves in order toprotect the fiscal health and stability of theCounty. Expenditures for services are subject tofluctuations in demand and revenues are

influenced by changes in the economy and byState and federal regulations. This policyensures the County is prepared for unforeseenevents by establishing and maintaining prudentlevels of fund balance and reserves.

M-13 Legislative Policy: State-Mandated LocalProgram Costs: Calls on the State and FederalLegislature to encourage equitablereimbursement of mandated local programcosts.

M-26 Legislative Policy: Long-Term Financing ofLocal Agencies: Calls on the Legislature toredress inequitable State funding formulas.

Administrative Manual

0030-01 Full Cost Recovery of Services:Establishes a procedure within the framework ofBoard of Supervisors Policy B-29, to serve asguidance in the process of recovering full costsfor services provided to agencies or individualsoutside the County of San Diego organizationunder grants or contracts or for which fees maybe charged.

0030-03 Application and Acceptance ofGrants: Establishes a procedure within theframework of Board of Supervisors Policy B-29, toserve as guidance when requesting the Boardof Supervisors approval of the application andacceptance of grants, awards, or revenuecontracts.

0030-06 State Mandated Cost Recovery:Establishes guidelines to attempt full recovery ofall State mandated costs resulting fromchaptered legislation and executive orders.

0030-13 Budget Program/Project Follow-Up:Sunset dates will be placed on programsintended to have limited duration, and relatedstaff and other resources will not be shifted toother activities without the Board of Supervisors'approval.

0030-14 Use Of One-Time Revenues: One-timerevenue will be appropriated only for one-timeexpenditures such as capital projects orequipment, not to ongoing programs.

0030-18 Transfers Of Excess Cash Balances ToGeneral Fund: Provides for transfer of excesscash balances to the General Fund from fundswithin the County's area of financial and cashmanagement which contain earnings or



moneys in excess of those funds' requirements.

0030-19 Revenue Match Limitation: Revenuematches will be limited to the mandated levelunless clear justification is provided which resultsin a waiver of this policy by the Board ofSupervisors.

0030-22 Revenue Management - Auditor andController & Chief AdministrativeResponsibilities: Chief Financial Officer/Auditorand Controller and Chief Administrative Officerare responsible for reviewing and evaluatingrevenues from all sources in order to maximizethese revenues within legal provisions and toinstitute internal controls and systems to be usedby departments to estimate, claim, and collectrevenues.

STRATEGIC INITIATIVES AND ACHIEVEMENTSThe failure of State government to develop aviable long-term solution to its budgetimbalance remains a risk to funding and stabilityof County programs, since State aid is theprimary source of County revenues. Thewidening gap between state funding and thecost of administering services is coupled with aslowing economy. The County faces theprospect of losing significant funding from theState, which is grappling with the economicdownturn in the context of its lack of financialsolvency and discipline while at the same time,revenues the County receives directly, such asproperty and sales taxes, are flattening ordecreasing and the cost of fuel, buildingmaterials and other materials needed toprovide services to the public continues to rise.

In spite of this, County government continues tofollow the map of the five-year long-termStrategic Plan developed within the discipline ofthe GMS. The County's Strategic Plan definesbroad organization-wide goals for the future,known as Strategic Initiatives, which helpprioritize County efforts and programs and formthe basis for allocating resources. The StrategicInitiatives are:

Kids - Improve opportunities for children.The Environment - Manage resources toensure environmental preservation, quality oflife, and economic development.Safe and livable Communities - Promote safeand livable communities.

The Strategic Plan also sets forth keyorganizational disciplines necessary to maintaina high level of operational excellence andaccomplish the Strategic Initiatives. TheRequired Disciplines serve as enablers to theStrategic Initiatives and encompass theremainder of County business. These RequiredDisciplines are:

Fiscal StabilityCustomer SatisfactionRegional LeadershipSkilled, Competent and Diverse WorkforceEssential InfrastructureAccountability/TransparencyContinuous ImprovementInformation Technology

Within the structure of the two-year operationalplanning process, the County plans for andattains interim progress toward achievement ofthe Strategic Initiatives. Some of the significantsteps of the last year were:

KidsThe Health and Human Services Agencyreduced the numbers of children growing upin foster care through improved services tofamilies and strong adoption efforts. Keepingchildren in their homes, with other familymembers and in their own communities,maintains stability and improves their odds forsuccess in school. A total of 127 referrals offoster youth were made by year-end to SanPasqual Academy (SPA), a residentialeducation campus for foster youth which iscurrently operating at full capacity.Graduating high school is critically importantto the long-term success of these youth, andthe rate for SPA youth and other foster youthexceeded our goal at 86% (diploma,certificate or equivalent). To promote long-term success beyond foster care, theAgency pursued and received $4.0 million in



new State funding for transitional housing,added 122 new housing sites for youth, andsigned an agreement with California StateUniversity San Marcos that gives foster youthguaranteed admission.The District Attorney's Office collaboratedwith the Superior Court, the ProbationDepartment, and the San Diego Defense Barto establish a family violence protocol thatprovides early treatment intervention forjuveniles in custody. The Probation Department providedresources, services, and referrals thatincreased resiliency of juveniles and familiesand reduced the number of juveniles whoentered or re-entered the juvenile justicesystem resulting in 88% of juvenile offenderssuccessfully completing informal supervisionand who did not re-offend within one year ofcompletion of informal supervision. The Medical Examiner contributed toresearch efforts in childhood death byactively participating in the San DiegoCounty Child Fatality Committee, theMethamphetamine Strike Force, the MedicalExaminers and Coroners Alert Project, theNational Institute of Child Health andDevelopment, and the California SuddenInfant Death Syndrome (SIDS) AdvisoryCouncil.The Department of Child Support Servicesimplemented the outbound auto-dialerwhich automatically contacted non-custodial parents' residential and cellphones. Auto-dialers were initiated forreminders of pending court dates, requestsfor delinquent child support payments,notification of the first payment due, requeststo contact the office regarding legaldocuments, and notification of a potentiallicense suspension.The Parks and Recreation Departmentsupported the County's Childhood ObesityAction Plan and Greater San DiegoRecreation and Parks Coalition for Healthand Wellness by providing over 100 health-related events, classes, and activities

throughout the San Diego region for over6,000 youth, exceeding the goal of providing85 events and classes for 2,500 youth. The Parks and Recreation Departmentprovided community service opportunities foryouths to encourage community activismand involvement by facilitating 75community volunteer projects for 600 youthparticipants. The Department of Public Works enhancedschool children's safety throughout theunincorporated county.

Worked with school administrations toanalyze, identify, and implement schoolzone improvements for pedestrians,bicyclists, buses, and automobiles at 16schools (goal was 13) (16% of all publicschools in the unincorporated area). Repainted and re-marked crosswalks androadway legends adjacent to all 116public school locations throughout theunincorporated county.Completed construction or awardedconstruction contracts for seven CapitalImprovement Projects that improve trafficflow around schools and provide saferoutes to schools.

The Department of Public Works educatedchildren on watershed protection and waterquality by conducting 182 presentations toschool children (achieving goal) at 40% ofthe unincorporated county's 57 K-6 schoolsas a long-term strategy for achieving positivebehavioral changes. They also taughtchildren the value of conserving energy andhelping the environment by promotingrecycling and composting at 45 countyschools by June 2008 (achieving goal), andby helping school administrators toimplement or enhance recycling programs,which was completed at two schools.

The EnvironmentThe Office of Emergency Services led andcoordinated the regional response for theCounty's three million residents to thedevastating wildfires in October 2007. TheCounty's Operational Area EmergencyOperations Center was in full operation for 24



hours a day for three weeks with over 85County, city, State, and federal agenciesworking to ensure regional coordination.The Department of Public Works tookimmediate action to respond to the October2007 Firestorm and helped with the recoveryefforts. Following are highlights of theseaccomplishments:

Provided emergency base at GillespieAirport for Cal Fire Aircraft and Base CampPersonnel: Supported 1,200 Cal Fire aircraftflights from Gillespie, Ramona, andFallbrook Airports. Provided land atGillespie Field for over 1,000 fire fightingpersonnel, 500 fire units and a large animalevacuation shelter for more than 100displaced horses and other farm/domesticanimals.In conjunction with the County Office ofEmergency Services, developedunprecedented Reverse 911 capability forwarning residents in areas with debris flowand flooding risks.Repaired fire damages in right-of-waywithin 15 to 60 days of fires (replacedtraffic control signs, guardrail, culverts;removed fire-damaged trees; installedtemporary bridge at Pamo Road; installedrock fence on Del Dios Highway).Installed check dams (temporary dams)across watercourses using more than150,000 sandbags and gravel bags andconstructed other temporary levees withthe assistance of multiple CaliforniaConservation Corps crews; installed 45,000feet of fiber rolls (woven tubular rolls) alonghillsides and slopes; installed 12,000 feet ofK-rails (temporary concrete barriers) alongroadways, and hydro-mulched 500 acresto help control erosion.Installed erosion control devices protecthomes and roads and operated erosioncontrol centers to assist residents in burnedareas. The department completed 1,038property assessments and distributed167,861 sandbags, 9,628 fiber rolls, 46,927stakes, and 3,395 (2 lb.) bags of seedwhich were provided by the Departmentof Agriculture, Weights and Measures.

The Parks and Recreation Departmentconverted the Fallbrook Community Centerinto a Local Assistance Center (LAC) to helpdisplaced fire victims during the October2007 Firestorm. Nearly 8,200 evacuees usedthe LAC for assistance or resource fromOctober 2007 to January 2008. Thedepartment reopened the majority of the 41parks that were closed due to the impact ofthe October 2007 Firestorm within a month.Removed debris and made those repairsnecessary to ensure public safety.The Department of Public Works conducted449 watershed site investigations (goal was340) to identify and help prioritize floodcontrol projects that will ultimately reduceflooding risks in communities. Theseinvestigations provide crucial data forunderstanding the condition of receivingwaters in all eight watersheds and how theyare impacted by discharges fromunincorporated communities.The Department of Public Works removed29,580 cubic yards of debris (achieving goal)from culverts, drainage channels, and roadsthrough a systematic cleaning program toprevent pollution of our rivers, bays, andocean. In addition, the department cleaned417 miles of sewer mains (goal was 400)within the County's sanitary sewer system toprotect public health and the environmentby minimizing the risk of sanitary seweroverflows.The Parks and Recreation Departmentexpanded and protected park resources byacquiring 400 acres of additional parklandthroughout the County and adding 10 milesof trails to the County Trails System. Thisexceeded the goal of acquiring 300 acres ofparkland over two years. The Department ismore than 50% complete in meeting its goalof adding 15 miles of trails over two years.The Parks and Recreation Departmentopened four new preserves including BarnettRanch, Santa Margarita, Del Dios Highlands,and Lakeside Linkage which provide trailopportunities for the public.



Safe and Livable CommunitiesThe District Attorney, Sheriff's Department,and Probation Department continued todevelop and implement innovative prisonerre-entry programs that aim to decrease therecidivistic behavior of offenders in localcustody who re-enter society The Office of Emergency Services enhancedthe region's ability to respond toemergencies by planning for the care ofspecial needs populations during a disasterand by training 200 County staff to serve asemergency shelter workers. In addition, thedepartment collaborated with the City ofSan Diego to create a joint plan for a next-generation regional communications systemto improve communication among regionalagencies. The District Attorney developed interagencyprocedures to promote proactiveinvestigation of fraud and nursing homecrimes against the elderly. The departmentdeveloped a curriculum to increase lawenforcement expertise in the area of humantrafficking investigation and prosecution.They also provided sex offender relatedpublic safety educational forums andtrainings for law enforcement, schools, andthe community. The Probation Department increased publicsafety and offender accountability throughintensive supervision, monitoring compliancewith Court ordered conditions of Probation,and use of community and custodialinterventions.To improve access to health care, HHSAcontinued to build upon therecommendations of the Healthcare SafetyNet Study. A disease management program,targeting high-cost medical conditions ofdiabetes and high blood pressure, wasinitiated. HHSA issued a request for proposalsfor $5.0 million to improve care coordination,implement best practices, and strengthenlinkages between hospital and clinics.Furthermore, over 25 different State healthcare legislative proposals were reviewed todetermine impact on the local health caresafety net.

The Department of Public Works providedenhanced crosswalk lighting and/or flashersto benefit pedestrian safety. In addition, theysought and obtained funding to retrofit sixsignalized intersections with countdownpedestrian indications that display a clearmessage to the pedestrian to enhancepedestrian safety. They also awardedconstruction contracts for eight (non school-related) Capital Improvement Projects incounty communities that enhance safetyand improve traffic flow, exceeding the goalof awarding seven projects.The Department of Public Works improvedflood control by updating four new DrainageMaster Plans (additional 40% of the county'sspecial drainage areas) serving Spring Valley,Ramona, North County and Alpine. The plansidentify and help prioritize flood controlprojects that will ultimately reduce floodingrisks in communities. The Parks and Recreation Departmentenhanced nine local and nine regional parksfor the public by completing eight majorprojects, five paving projects, and ten otherpark enhancement projects totaling $17million. The Parks and Recreation Departmenthosted ribbon cutting ceremonies for theopening of four new County park facilitiesincluding the Goodan Ranch Center, OtayValley River Park Trails - Stage 1, Plaza BonitaBikeway, and the Spring Valley Gym andTeen Center. They also hosted groundbreaking ceremonies for the nature center atSan Elijo Lagoon, the Lakeside Baseball Park,and new playground and picnic areas atHilton Head Park.The County Library opened new branches inEncinitas and La Mesa and completed thefirst full year of operation of the 4-S Ranchbranch west of Rancho Bernardo.The Housing and Community DevelopmentDepartment conducted 14,400 inspections,ensuring all assisted housing meets federalhousing quality standards.



CERTIFICATE OF ACHIEVEMENTThe Government Finance Officers Associationof the United States and Canada (GFOA)awarded a Certificate of Achievement forExcellence in Financial Reporting to the Countyfor its comprehensive annual financial report(CAFR) for the fiscal year ended June 30, 2007.In order to be awarded a Certificate ofAchievement, a government must publish aneasily readable and efficiently organized CAFR.This report must satisfy both generally acceptedaccounting principles and applicable legalrequirements.

A Certificate of Achievement is valid for aperiod of one year only. We believe our currentcomprehensive annual financial reportcontinues to meet the Certificate ofAchievement Program's requirements and weare submitting it to the GFOA to determine itseligibility for another certificate.

OTHER AWARDS AND RECOGNITIONS Even with the financial and environmentalchallenges of Fiscal Year 2008, the County wasrecognized for many activities that highlightprogress in the Strategic Plan Initiatives. Countyprograms received awards for operational andservice delivery achievements, technologicalinnovations, and prudent fiscal management.

San Diego County received 39 awards at the2008 annual Achievement Awardscompetition sponsored by the NationalAssociation of Counties (NACo). This was thefourth year in a row that the County hasreceived more awards than any other U.S.county. The winning programs, which span allfive County business groups, wererecognized for being innovative andsuccessful, and for promoting quality,efficiency, and a responsive countygovernment. The programs receiving awardsincluded Workforce Academy for Youth,Preschool Development Health Screening inLibraries, Ramona Grasslands and SantaMaria Creek Restoration, Firestorm 2007Rebuilding Workshops, Web Referral forAging and Independence Services,

Substance Abuse Recovery ManagementSystem, Prison Reentry Program and thePublic Assistance Fraud Diversion Program. In May 2008, the County received theGolden Watchdog Award from the SanDiego Taxpayers Association for itsAlertSanDiego mass notification system. TheWatchdog Award program honors agenciesthat exemplify efficient use of tax dollars.Capable of reaching 1.1 million householdsin San Diego within three hours, the internet-based AlertSanDiego program uses email,text, and phone messages to circulateemergency information county-wide. DuringFirestorm 2007, San Diego County used itsnewly implemented AlertSanDiego programto circulate emergency information to500,000 county residents.The County of San Diego took top honors inthe 2008 Digital Counties Survey conductedby the Center for Digital Government. TheCenter for Digital Government recognizescounties using information technology inincreasingly innovative ways and improvingservice to their citizens. The Department of Parks and Recreationreceived a Project of the Year Award fromthe American Public Works Association forthe Miracle Field at San Dieguito Park. Thefield opened in May 2007 and was the firstSouthern California baseball field designedto provide recreational opportunities forchildren with special needs. The award wasgranted based on the exemplarycollaborative effort that took place betweenthe County and the community in order tomake the Miracle Field a reality. This projectalso received an Award of Excellence forFacility Design at the 2008 California Parksand Recreation Society (CPRS) AnnualConference.For the sixth consecutive year, theGovernment Finance Officers Association(GFOA) of the United States and Canadarecognized the County with the DistinguishedBudget Presentation Award for the AdoptedOperational Plan: Fiscal Years 2007-08 &2008-09.



The Department of General Services' CountyOperations Center (COC) CampusRedevelopment Project was nominated for aSmart Growth Award by the Urban LandInstitute of San Diego/Tijuana. The Projectconsolidates departments and functionsfrom nine locations into a new COC campus.The Smart Growth Awards recognizeplanning and design achievements that fulfilland advance the principles of smart growth.The County Library's LEARN/Laubach ESLProgram is one of 18 programs selected byNACo as a recipient of a 2008 Acts of CaringAwards. Acts of Caring Awards recognize thetop county volunteer programs in thecountry. The program is a partnershipbetween the Library's adult literacy program,LEARN (Libraries Empower All to Read Now),and the Laubach Literacy Council of SanDiego County. Through this partnership,volunteer tutors are trained to teach Englishas a Second Language (ESL) to adultimmigrants and non-English speakers in theCounty Library branches. By the end of its firstyear, 25 volunteer tutors were teaching 76students at 6 library branches.The American Library Association (ALA)selected the Library's Gateway/Al BawabaProject as the winner of the 2008 ALA/Information Today, Inc. Library of the FutureAward. This national award honors the librarythat has developed the most innovativecustomer training program for informationtechnology. The Gateway Project wasdeveloped to allow Middle Easternimmigrants to utilize the Library's freecomputer classes in their native Arabiclanguage. The Water Quality Basin at Woodside Avenuein Lakeside received the American PublicWorks Association Award for EnvironmentalProject of the Year in 2007. This water qualitybasin provides treatment to urban runofffrom the surrounding community. The basinwill help prevent pollutants within the urbanrunoff from entering these downstreamwaterways.The Department of Parks and Recreation'sRamona Grasslands Preserve Area SpecificManagement Directives (ASMDs) received

the Outstanding Environmental ResourcesDocument Award from the Association ofEnvironmental Professionals San DiegoChapter. The award honors environmentaldocuments which can serve as a resourcefor a wide range of environmentalprofessionals. The goal of the RamonaGrasslands Preserve ASMDs is to balancepreservation of the natural biological andcultural resources in the Preserve, whilealigning with the management strategies ofthe North County Multiple SpeciesConservation Program.The Department of Media and PublicRelations' County Television Network (CTN)received 14 awards at the NationalAssociation of Telecommunications Officers& Advisors conference in October 2007. TheCounty was the recipient of an HonorableMention in the category of Large StaffOverall Excellence. In addition, awardsreceived included four First Place awards,four Second, and Third Place awards andHonorable Mentions for four additionalprograms. Programs awarded First Placehonors include: “Count Me In: The VotingProcess in San Diego County” - Profile of aCity/County Department; “Sam the CookingGuy” - Innovative Program; “Don't Fall for It”Seniors, and “Don't Mess with Asbestos” -Public Health.The San Diego Chapter of the AmericanSociety of Civil Engineers recognized theCounty's Department of Public Works with theawards for the following five projects: 1) anOutstanding Project Award for the WaterQuality Basin at Woodside Avenue project inLakeside which exemplified the water qualitybenefits that can be obtained with limitedspace in an urban environment; 2) an Awardof Excellence for the Firestorm 2007Emergency Flood/Erosion Protection Projectwhich protected homes and roads byassessing sites and implementing erosioncontrol measures over 500 acres of charredland; 3) an Award of Excellence for theWildcat Canyon Road Improvements projectwhich improved operational safety of theroad, provided safe wildlife/equestrianunder-road crossings, relieved traffic



congestion issues and minimized effects ofpotential increases in traffic volume; 4) anAward of Merit for the Central Avenue FloodImprovements project for which the County,with the help of a FEMA grant, constructedone of the largest flood control facilities in theunincorporated area; 5) and Award ofExcellence for the Rancho San Diego StateRoutes 54 & 95 Widening project whichwidened portions of the two state routes fromfour lanes to six lanes and included bike lanesin both directions. The County's Rabies Detection Programreceived accolades at the World Rabies DayConference sponsored by the FederalCenters for Disease Control and Prevention

(CDC). The unique partnership between theSan Diego County Animal Disease DiagnosticLab and the County Public Health Lab hasresulted in the most comprehensive rabiesmonitoring and prevention program in thestate and serves as a model for otherjurisdictions. In September 2007, the County OES receivedaccreditation from the EmergencyManagement Accreditation ProgramCommission. The County is the first state orlocal agency in California to receive thisaccreditation and one of only 14 nationwide.The accreditation recognizes the region'sability to prepare for and respond todisasters.

ACKNOWLEDGMENTSWe would like to express our appreciation tothe accounting staff of County departmentsand the staff of the Auditor and Controller'sdepartment whose coordination, dedicationand professionalism are responsible for thepreparation of this report. We would also like tothank Macias Gini & O’Connell LLP for their

professional support in the preparation of theCAFR. Lastly, we thank the members of theBoard of Supervisors, the Chief AdministrativeOfficer, Group/Agency General Managers andtheir staff for using sound business practiceswhile conducting the financial operations of theCounty.

Respectfully,

DONALD F. STEUER

Chief Financial Officer

TRACY M. SANDOVAL

Auditor and Controller

Letter of Transmittal - San Diego County, California · 2019. 2. 8. · Letter of Transmittal the...

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