HomeMy Public PortalAboutAudit Report - District- FY12MIDPENINSULA REGIONAL
OPEN SPACE DISTRICT
ANNUAL FINANCIAL REPORT
YEAR ENDED MARCH 31, 2012
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
TABLE OF CONTENTS
MARCH 31, 2012
INDEPENDENT AUDITOR'S REPORT
MANAGEMENT'S DISCUSSION AND ANALYSIS
BASIC FINANCIAL STATEMENTS
Statement of Net Assets
Statement of Activities 9
Balance Sheet — Governmental Funds 10
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Assets 11
Statement of Revenues, Expenditures, and Changes in Fund Balances — Governmental Funds 12
Reconciliation of the Statement of Revenues, Expenditures and Change in Fund Balances — Total
Governmental Funds with the Statement of Activities 13
1
2
NOTES TO FINANCIAL STATEMENTS
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual
8
15
37
Vavrinek, Trine, Day & Co., LLP
Certified Public Accountants
INDEPENDENT AUDITOR'S REPORT
Board of Directors
Midpeninsula Regional Open Space District
Los Altos, California
VALUE THE DIFFERENCE
We have audited the accompanying financial statements of the governmental activities and each major fund of the
Midpeninsula Regional Open Space District as of and for the year ended March 31, 2012 which collectively
comprise the District's basic financial statements as listed in the Table of Contents. These financial statements
are the responsibility of the management of the District. Our responsibility is to express an opinion 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.
Those standards require that we plan and perform the audit to obtain reasonable assurance as to whether the
financial statements are free of material misstatement. An audit includes examining on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly in all material respects, the respective
financial position of the governmental activities and each major fund of the Midpeninsula Regional Open Space
District as of March 31, 2012, and the respective changes in the financial position thereof for the year then ended
in conformity with generally accepted accounting principles in the United States of America.
Accounting principles generally accepted in the United States of America require that the management discussion
and analysis and the budgetary comparison information as listed in the table of contents be presented to
supplement the basic financial statements. Such information, although not a part of the basic financial statements,
is required by the Government Auditing 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 inquires 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.r Pay
n
Uavfinc , l;1in , Pay z (o. L _P
Palo Alto, California
June 28, 2012
1
260 Sheridan Avenue, Suite 440 Palo Alto, CA 94306 Tel: 650.462.0400 Fax: 650.462.0500 www.vtdcpa.com
FRESNO • LAGUNA HILLS • PALO ALTO • PLEASANTON • RANCHO CUCAMONGA • RIVERSIDE • SACRAMENTO
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MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
MARCH 31, 2012
This section of the Midpeninsula Regional Open Space District's (the District) basic financial statements
presents a narrative overview and analysis of the District's financial activities for the fiscal year ended
March 31, 2012. We encourage readers to consider the information presented here in conjunction with
our basic financial statements.
FINANCIAL HIGHLIGHTS
Property tax revenue growth resumed in fiscal 2012. Reported tax revenue increased by $1.5 million, or
5.4%. The District recorded tax revenue growth above the rate of increase in assessed valuation, 1.5%,
due to the resumption of supplemental (SB813) tax allocations by Santa Clara County and a change in the
method of computing the year-end tax accrual. District tax revenue growth never exactly matches the rate
of increase in assessed valuation because the District's hybrid fiscal year spans two tax years. The District
received 65% of its tax revenue from Santa Clara County and 35% from San Mateo County. Property tax
revenue decreased by 1.3% in fiscal 2011, as assessed valuation declined for the only time in the
District's existence.
The District added $24.0 million of land and associated structures in fiscal 2012, the third most in District
history. The largest acquisition, the $10.9 million Hawthorns property in Portola Valley, was a gift from
the owner. Accompanying this gift was a $2.0 million endowment to manage the property. The second
largest acquisition, the $3.6 million Madonna Creek Ranch, was funded by a $3.0 million gift from the
Peninsula Open Space Trust (POST) and a $500,000 grant from the Habitat Conservation Fund. The
District completed two other large acquisitions from POST in fiscal 2012 the $3.6 million October Farm
property and a $3.1 million addition to the Russian Ridge Preserve. The District received a $500,000
grant from the Coastal Conservancy to partially fund the latter purchase. Net of grants and gifts, the
District used $9.1 million of cash for land purchases in fiscal 2012, up slightly from $8.8 million in fiscal
2011. The District added $10.0 million and $17.5 million of land and associated structures in fiscal 2011
and 2010, respectively.
District expenditures were again within the annual budget. Excluding land acquisition transactions and
debt service, total District spending, $17.2 million, was $1.8 million, or 9.4%, below budget and up
11.4% over fiscal 2011. The largest factor in the budget variance was the re -scheduling of the next phase
of the multi -year Mt. Umunhum project into fiscal 2013. In fiscal 2012, salaries and benefits increased by
2.2%, services and supplies expenses grew by 2.7% and non -land capital spending rose by 81.3%. The
large capital spending increase was due to completing the long -planned radio system upgrade and the fact
that several capital projects were deferred from fiscal 2011 to fiscal 2012 because of the shortfall in fiscal
2011 tax revenue. Employee benefit costs increased by 7.5% and were a record high 40.9% of salary
expenses, compared to 37.8% in fiscal 2011 and 36.3% in fiscal 2010. Salary expense increased by only
0.2% in fiscal 2012, due to a large number of un-filled positions during the first half of the year and
suspension of any cost -of -living adjustments for all employees during fiscal 2012.
The District completed two sales of long-term bonds and notes. In May 2011, the District Financing
Authority sold $20.5 million of thirty-year bonds. These 2011 Revenue Bonds, structured as a lease and
rated AA by Fitch and AA- by Standard & Poor's, were sold at a total interest cost of 5.60%. The net
proceeds to the District, $20 million, were used to purchase additional open space lands; the project was
completed in December 2011. In January 2012, the District sold $31.3 million of 2012 Refunding
Promissory Notes at a total interest cost of 5.08%. These thirty-year notes, rated AA+ by Fitch and AA
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MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
MARCH 31, 2012
by Standard & Poor's, pre -paid all of the Financing Authority's outstanding 1999 Revenue Bonds. Due
to this refunding, total District debt service payments, over the next sixteen fiscal years, were reduced by
$26.6 million. After these two debt transactions and scheduled principal repayments, the District's total
long-term debt obligations increased by $17.5 million in fiscal 2012.
The assets of the District exceeded liabilities at the close of the 2012 fiscal year by $289.7 million (net
assets). Of this amount, $245.4 million is invested in capital assets, net of related debt, $1.6 million is
restricted by the terms of existing District debt, and the remaining $42.7 million is unrestricted. About
21% of the unrestricted balance is projected to be used for land acquisition in fiscal 2013 as the approved
budget for fiscal 2013 forecasts land purchases totaling $12.1 million, or $9.0 million net of associated
grant and gift income. Another $2.0 million of the unrestricted balance is an endowment to provide
stewardship to the new Hawthorns property.
The District's total net assets increased by $23.6 million in fiscal 2012, as general and program revenues
exceeded program expenditures. Program expenditures were within budget.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the District's basic financial
statements. The District's basic financial statements consist of three components: (1) government -wide
financial statements; (2) fund financial statements and (3) notes to the basic financial statements. This
report also contains other supplementary information in addition to the basic financial statements
themselves.
3
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
MARCH 31, 2012
Statement of Net Assets
Presented below is a condensed statement of net assets for the past two years:
Years ended: March 31, 2012 March 31, 2011 Increase (Decrease)
Assets
Current assets $ 48,018,249 $ 30,749,199 $ 17,269,050
Retiree Health Trust 1,334,306 1,513,561 (179,255)
Capital assets 385,932,042 359,566,233 26,365,809
Total assets 435,284,597 391,828,993 43,455,604
Liabilities
Accounts payable and
other liabilities
Long-term debt
Total liabilities
3,910,849 2,713,472
141,674, 304 123,019, 978
145,585,153
1,197,377
18,654,326
125,733,450 19, 851,703
Net Assets
Invested in capital assets,
net of related debt 245,393,422 236,546,255 8,847,167
Restricted 1,567,913 1,407,548 160,365
Unrestricted 42,738,109 28,141,740 14,596,369
Total net assets $ 289,699,444 $ 266,095,543 $ 23,603,901
Analysis of Net Assets
The District's assets at the close of this fiscal year are $289.7 million more than its liabilities. This is the result of
the District's inventory of capital assets. The net investment in capital assets, $245.4 million, consists primarily
of the District's over 60,000 acres of land in 26 open space preserves protected for public enjoyment. The
investment in capital assets is offset by long-term debt obligations on promissory notes and lease revenue bonds.
The net assets subject to external restrictions are composed of $1.6 million for debt service. Unrestricted net
assets are used to finance additional capital projects. The District's budget for fiscal year 2013 includes $9.0
million for land acquisitions, net of related grant and gift income.
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MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
MARCH 31, 2012
Changes in Net Assets
Presented below is an analysis of the District's revenues and expenses over the past two years:
Revenues
Program revenue
Changes for services
Grants and contributions
Land donation
General revenue
General property tax
Investment income
Other
Total Revenues
Expenses
Change in net assets
Analysis of Change in Net Assets
March 31, 2012 March 31, 2011
$ 1,319,580
1,452,738
13,927,600
28,737,153
374,544
393,542
46,205,157
22,601,256
$ 23,603,901
$ 1,241,465
1,392,868
27,268,652
191,515
430,168
30,524,668
21,388,582
$ 9,136,086
Increase
$ 78,115
59,870
13,927,600
1,468,501
183,029
(36,626)
15,680,489
1,212,674
$ 14,467,815
% Increase
6.3
4.3
100.0
5.4
95.6
(8.5)
51.4
5.7
158.4
For the year ended March 31, 2012, the District's net assets increased by $23.6 million. Salaries and benefits
represented 49% of expenses compared to 52% in fiscal 2011. Salaries and benefits increased 2.2% over the prior
fiscal year. Services and supply expenses grew by 2.7%.
Program revenues include rental income, grants, gifts of land, cash donations and park management fees from
Santa Clara County. The District received gifts of land totaling $13.9 million in fiscal 2012, including the
Hawthorns property in Portola Valley, appraised at $10.9, million and $3.0 million from POST. Grant income is
mostly tied to acquisitions of specific parcels of land. The District received a total of $1.0 million of land
acquisition grants in fiscal 2012, $500,000 each from the California Coastal Conservancy and the Habitat
Conservation Fund. Given the state budget crisis, state grant funds for land acquisition were scarce in fiscal 2011,
with no land acquisition -related grant income obtained. Rental income increased by 7.4% due to acquisitions of
land containing additional rental properties.
Tax revenue increased by 5.4% in fiscal 2012 compared to a decline of 1.3% in fiscal 2011. Reported tax revenue
increased by 3.6% and 8.8% from Santa Clara County and San Mateo County, respectively. The increase from
Santa Clara County was due to increased assessed valuation and the resumption of allocation of supplemental
(5B813) taxes, which were suspended from July 2010 through March 2011. Assessed valuations also increased in
the San Mateo County portion of the District, but the unusually high growth rate in fiscal 2012 was due to a
change in the method of computing the year-end tax accrual.
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MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
MARCH 31, 2012
GENERAL FUND
The General Fund balance sheet includes all District accounts except for debt and capital assets. At March 31,
2012, the General Fund had a fund balance of $41.8 million, up $14.9 million from the prior year-end. This
increase was the result of completing the sale of 2011 Revenue Bonds and the establishment of the $2.0 million
Hawthorns endowment fund. Except for the endowment fund, all of this fund balance is unreserved and
designated for future capital projects, including $9.0 million budgeted for land purchases in fiscal year 2013, net
of associated grant and gift funding.
DEBT SERVICE FUND
The only asset in the Debt Service Fund, $1.6 million, is a reserve fund required by the terms of the District's
2004 Revenue Bonds. The funds are held by the bond trustee and will be used to make the final debt service
payment on this issue. The District receives the interest earned on this reserve fund, and this is shown on the
Statement of Revenues, Expenditures and Changes in Fund Balance --Governmental Funds. Total debt service in
fiscal year 2012 was $9.81 million, consisting of $5.36 million of principal and $4.46 million of interest.
CAPITAL ASSETS
As of March 31, 2012, the District's investment in capital assets is $385.9 million, net of accumulated
depreciation. The District added $23.1 million of land in fiscal year 2012, representing 88% of the total increase
in capital assets, and has committed $4.8 million of its fund balance for various uncompleted capital projects
included in construction in progress. Additional information on the District's capital assets can be found in Note
4 in the Notes to the Basic Financial Statements.
LONG-TERM DEBT
The District completed two sales of long-term bonds and notes in fiscal 2012. In May 2011, the District
Financing Authority sold $20.5 million of thirty-year bonds. In January 2012, the District sold $31.3 million of
thirty-year notes and pre -paid the Authority's outstanding 1999 Revenue Bonds. As of March 31, 2012, the
District's long-term debt includes $2.5 million of subordinated notes issued to sellers in District land purchase
transactions, $102.7 million of Authority revenue bonds sold to the public in 2004, 2007 and 2011, $19.0 million
of District refunding promissory notes sold to the public in 2005 and 2012, and $16.4 million of accreted interest,
unamortized premium and unamortized loss on refunding. The 2004 and 2007 Authority bonds and 2005
Refunding notes were originally rated AAA by Moody's and Standard & Poor's based on municipal bond
insurance policies purchased from Ambac Assurance Corporation and MBIA. Due to substantial losses from
mortgage -related risk exposures, these insurance companies no longer carry investment grade credit ratings. The
District's current stand-alone credit rating on promissory notes is AA+ from Fitch and AA from Standard &
Poor's. Additional information on the District's long-term obligations can be found in Note 6 in the Notes to the
Basic Financial Statements.
BUDGETARY PERFORMANCE
The Budgetary Comparison Schedule —General Fund shows how the District financial results compared to the
original budget adopted in March 2011 and the final budget adjusted in November 2011.
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MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
MARCH 31, 2012
Due principally to the large amount of unbudgeted gifts of land, total District revenue in fiscal 2012 exceeded
budget by $15.0 million, or 48%. Gifts of land, $13.9 million, generated 93% of the variance. Tax revenue was
4.0% above budget, due to larger than planned current secured property taxes from San Mateo County. Grant,
interest, rental and other income was 2.5% under budget.
Excluding land acquisition transactions and debt service, total District spending, $17.2 million, was $1.8 million,
or 9.4%, below the final budget. The largest factor in the budget variance was the re -scheduling of the next phase
of the multi -year Mt. Umunhum project into fiscal 2013. Salaries and benefits were $0.1 million, or 0.7%, below
budget, services and supplies cost $0.4 million, or 13.4%, less than budget, non -land capital spending was $1.2
million, or 28.9%, under budget, and land acquisition support expenses were $0.1 million, or 22.4% under budget.
This overall operating budget performance, 91% of budget, was within the normal range of recent years (82% to
94% of budget).
ECONOMIC FACTORS AND NEXT YEAR'S BUDGET
The Board of Directors adopted the District's budget for fiscal year 2013 on March 28, 2012. This budget
assumes continued slow growth in property tax revenue, between 2 and 3%. The budget projects spending $9.0
million of cash for new land and $3.1 million on other capital projects, net of associated grant and gift income.
Debt service requirements are budgeted at $8.9 million, including $1.1 million of new debt service on the $20.5
million 2011 Revenue Bonds and a $1.1 million savings from the prepayment of the 1999 Revenue Bonds,
accomplished through the sale of the 2012 Refunding Notes. If all revenues and expenditures occur as budgeted,
the District's cash position would decrease by $5.7 million in fiscal year 2013. Since the adoption of the budget,
the District learned that it will be receiving approximately $0.2 million of additional revenue in fiscal 2013 from
the Redevelopment Property Tax Trust Fund. This amount is expected to increase over time as the liabilities of
redevelopment agencies within the District, dissolved as of February 1, 2012, are retired.
The District is currently pursuing potential land acquisition projects which would use up all undesignated reserves
within three years.
ADDITIONAL FINANCIAL INFORMATION
This fmancial report is designed to provide a general overview of the District's finances for all those with an
interest in the District's finances. Questions concerning any of the information provided in this report or requests
for additional financial information should be addressed to the District Clerk, 330 Distel Circle, Los Altos, CA
94022.
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MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
STATEMENT OF NET ASSETS
MARCH 31, 2012
ASSETS
Cash and investments (Note 2)
Receivables
Taxes
Interest
Deposit
Prepaid expense
Restricted cash and investments (Note 2)
Note receivable (Note 3)
Deferred charges
Net OPEB Asset (Note 9)
Capital assets (Note 4)
Nondepreciable
Land
Construction in progress
Depreciable, net of accumulated depreciation
Structures and improvements
Infrastructure
Equipment
Vehicles
Total assets
$ 36,704,351
7,196,493
56,815
996,895
9,359
1,567,913
206,958
1,279,465
1,334,306
368,468,116
4,778,954
7,185, 808
3,339,128
656,934
1,503,102
435,284,597
LIABILITIES
Accounts payable 736,274
Accrued liabilities 410,521
Deposits payable 64,535
Deferred revenue 1,971,040
Interest payable 609,648
Compensated absences (Note 5)
Due in one year 118,831
Due in more than one year 1,135,684
Long-term debt (Note 6)
Due within one year 3,345,519
Due in more than one year 137,193,101
Total liabilities 145,5 85,153
NET ASSETS (Note 11)
Invested in capital assets, net of related debt 245,393,422
Restricted for debt service 1,567,913
Unrestricted 42,738,109
Total net assets $ 289,699,444
See accompanying notes to financial statements.
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MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED MARCH 31, 2012
Program expenses:
General government:
Salaries
Benefits
Directors
Services and supplies
Depreciation
Interest
Total program expenses
Program revenues:
Charges for services
Capital grants and operating contributions
Land donation
Total program revenues
Net program expenses
$ 7,911,094
3,536,602
28,900
2,835,292
806,221
7,483,147
22,601,256
1,319,580
1,452,738
13,927,600
16,699,918
5,901,338
General revenues:
Property tax increment 28,737,153
Investment income 374,544
Miscellaneous 393,542
Total general revenues 29,505,239
Changes in net assets 23,603,901
Net assets - beginning of the year 266,095,543
Net assets - end of the year $ 289,699,444
See accompanying notes to financial statements.
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MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
GOVERNMENTAL FUNDS BALANCE SHEET
MARCH 31, 2012
Debt Total
General Service Governmental
Fund Fund Funds
ASSETS
Cash and investments (Note 2)
Receivables
Taxes 7,196,493 - 7,196,493
Interest 56,815 - 56,815
Deposit 996,895 - 996,895
Prepaid expense 9,359 - 9,359
Restricted cash and investments (Note 2) - 1,567,913 1,567,913
Note receivable (Note 3) 206,958 - 206,958
Total Assets $ 45,170,871 $ 1,567,913 $ 46,738,784
LIABILITIES
$ 36,704,351 $ - $ 36,704,351
Accounts payable
Accrued liabilities
Deposits payable
Deferred revenue (Note 3)
Total liabilities
FUND BALANCES
Restricted
Debt service
Unassigned
Total fund balance
$ 736,274 $
410,521
64,535
2,177,998
3,389,328
- $ 736,274
410,521
64,535
2,177,998
3,389,328
1,567,913
41,781,543
41,781,543 1,567,913
1,567,913
41,781,543
43,349,456
TOTAL LIABILITIES AND FUND BALANCE $ 45,170,871 $ 1,567,913 $ 46,738,784
See accompanying notes to financial statements.
10
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
RECONCILIATION OF THE GOVERNMENTAL FUNDS - BALANCE SHEET
WITH THE STATEMENT OF NET ASSETS
MARCH 31, 2012
Total fund balances reported on the governmental funds balance sheet
Amounts reported for Governmental Activities in the Statement of Net Assets are
different from those reported in the Governmental funds above because of the following:
CAPITAL ASSETS
Capital assets used in Governmental Activities are not current assets or financial
resources and therefore are not reported in the Governmental funds.
NOTES RECEIVABLE
Notes receivables are not available to pay for current period expenditures and, therefore,
are deferred on the modified accrual basis in the balance sheet of the Governmental
funds
DEFERRED CHARGES
Bond issuance costs are expended in the Governmental funds when paid, however, they
are capitalized and amortized over the life of the corresponding bonds for purposes of
the Statement of Net Assets
LONG-TERM LIABILITIES
The liabilities below are not due and payable in the current period and therefore are not
reported in the Governmental funds:
Long-term debt
Accrued interest payable
Compensated absences
NET OPEB ASSET
$ 43,349,456
385,932,042
206,958
1,279,465
(140,538,620)
(609,648)
(1,254,515)
Net OPEB Asset is not available to pay for current period expenditures and, therefore, is
not recognized in the Governmental funds but deferred on the Statement of Net Assets 1,334,306
NET ASSETS OF GOVERNMENTAL ACTIVITIES
See accompanying notes to financial statements.
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$ 289,699,444
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
FOR THE YEAR ENDED MARCH 31, 2012
REVENUES
Property tax
Grant income
Investment income
Property management (Note 7)
Other income
Land donation
Total Revenues
EXPENDITURES
Current
Salaries
Benefits
Directors
Services and supplies
Capital outlay
New land purchases
Land acquisition support costs
Structures and improvements
Equipment
Vehicles
Debt service
Principal
Interest and fiscal charges
Total Expenditures
EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES
OTHER FINANCING SOURCES (USES):
Other Sources
Transfers in
Transfers out
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCES
Fund Balance at beginning of year
Fund Balance at end of year
General
Fund
Debt
Service
Fund
Total
$ 28,737,153 $
1,452,738
229,136
1,319,580
240,203
13,927,600
145,408
45,906,410 145,408
- $ 28,737,153
1,452,738
374,544
1,319,580
240,203
13,927,600
46,051,818
7,911,094
3,238,516
28,900
2,817,329
23,996,584
197,646
1,397,807
1,387,533
210,423
4,456,684
5,355,160
9,811,844
7,911,094
3,238,516
28,900
2,817,329
23,996,584
197,646
1,397,807
1,387,533
210,423
4,456,684
5,355,160
41,185,832
50,997,676
4,720,578
(9,666,436)
(4,945,858)
20,000,000
9,826,801
(9,826,801)
10,173,199 9,826,801
14,893,777 160,365
26,887,766 1,407,548
20,000,000
9,826,801
(9,826,801)
20,000,000
15,054,142
28,295,314
$ 41,781,543 $ 1,567,913 $ 43,349,456
See accompanying notes to financial statements.
12
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS WITH THE
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED MARCH 31, 2012
The schedule below reconciles the net changes in fund balances reported on the Governmental funds Statements
of Revenues, Expenditures and Changes in Fund Balance, which measures only changes in current assets and
current liabilities on the modified accrual basis, with the change in net assets of Governmental Activities reported
in the Statement of Activities, which is prepared on the full accrual basis.
Net change in fund balances - total Governmental funds $ 15,054,142
Amounts reported for governmental activities in the Statement of Activities are different
because of the following:
CAPITAL ASSET TRANSACTIONS
Governmental finds report capital outlays as expenditures. However, in the Statement of
Activities the cost of those assets is capitalized and allocated over their estimated useful
lives and reported as depreciation expense.
The capital outlay expenditures are therefore added back to fund balance
Depreciation expense is deducted from the fund balance (806,221)
Loss on disposal of capital assets is expensed on the statement of activities, but does not
impact the Governmental funds.
Payment of principal of general obligation bonds is an expenditure in the governmental
funds, but it reduces long-term liabilities in the statement of net assets and does not affect
the statement of activities.
Bond issuance cost is recorded as an expenditure in the governmental funds but is
capitalized on the statement of net assets and is amortized over the life of the bonds in the
statement of activities.
Proceeds received from sale of bonds is a revenue source in the governmental funds, but it
increases long-term obligations in the statement of net assets and does not affect the
statement of activities.
Bond premium is a revenue source in the statement of activities, but is not recorded in the
governmental fund.
Loss on refunding is reported in the government -wide statement of net assets, but is not
recorded in the governmental funds.
27,189,974
(17,944)
32,897,249
278,683
(31,264,707)
(2,309,639)
398,414
See accompanying notes to financial statements.
13
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES — TOTAL GOVERNMENTAL FUNDS WITH THE
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED MARCH 31, 2012
NOTES RECEIVABLE
Repayment of notes receivable is reported as revenue in Governmental funds, and thus, has
the effect of increasing fund balance because current financial resources have been received.
However, the loan payments reduce the receivables in the statement of net assets and do not
generate revenue in the statement of activities.
Proceed from the 2012 notes were used to retire the existing 1999 bond. These proceeds are
recorded as a revenue in the Governmental funds. On the statement of net assets these
proceeds are recorded as long-term debt and do not impact the statement of activities.
Discount and issuance costs are recorded as an expenditure in the Governmental fund on the
statement of net assets, but are capitalized on the statement of net assets and do not impact
the statement of activities.
LONG-TERM DEBT PROCEEDS AND PAYMENTS
Repayment of bond principal is an expenditure in the Governmental funds, but in the
Statement of Net Assets the repayment reduces long-teini liabilities.
Accreted Interest on capital appreciation bonds (1,528,967)
Repayment of debt principal 4,456,684
Change in accrued interest payable (175,680)
Amortization of bond premium 163,573
Amortization of loss on refunding (339,194)
Amortization of deferred amounts (84,146)
ACCRUAL OF NON -CURRENT ITEMS
The amounts below included in the Statement of Activities do not provide or (require) the
use of current financial resources and therefore are not reported as revenue or expenditures
in Governmental funds (net change):
Compensated absences (118,831)
Net OPEB Asset (179,255)
CHANGE IN NET ASSETS OF GOVERNMENTAL ACTIVITIES $ 23,603,901
(10,234)
(20,500,000)
See accompanying notes to financial statements.
14
500,000
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2012
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
General
The Midpeninsula Regional Open Space District (the District) was formed in 1972 to acquire and preserve public
open space land in northern and western portions of Santa Clara County. In June 1976, the southern and eastern
portions of San Mateo County were annexed to the District. The District annexed a small portion of the northern
tip of Santa Cruz County in 1992. In September 2004, the District completed the Coastside Protection Program,
which extended the District boundaries to the Pacific Ocean in San Mateo County, from the southern borders of
Pacifica to the San Mateo/Santa Cruz County line.
Reporting Entity
As required by generally accepted accounting principles, these basic financial statements present the
Midpeninsula Regional Open Space District and its component unit. The component unit discussed in the
following paragraph is included in the District's reporting entity because of the significance of their operational or
financial relationships with the District.
Blended Component Unit. The District and the County of Santa Clara entered into a joint exercise of
powers agreement dated May 1, 1996, creating the Midpeninsula Regional Open Space District Financing
Authority (the Authority), pursuant to the California Government Code. The District is financially
accountable for the Authority, as it appoints a voting majority of the governing board; is able to impose its
will in the Authority; and the Authority provides specific financial benefits to, and imposes specific financial
burdens on, the District. The Authority was formed for the sole purpose of providing financing assistance to
the District to fund the acquisition of land to preserve and use as open space. As such, the Authority is an
integral part of the District, and accordingly, all of the Authority's activity is blended within the
accompanying debt service fund.
Basis of Presentation
The District's Basic Financial Statements are prepared in conformity with accounting principles generally
accepted in the United States of America. The Government Accounting Standards Board is the acknowledged
standard setting body for establishing accounting and financial reporting standards followed by governmental
entities in the United States of America.
These Statements require that the financial statements described below be presented.
Government -wide Statements. The Statement of Net Assets and the Statement of Activities display
information about the primary government (the District) and its component unit. These statements include the
financial activities of the overall District government. Eliminations have been made to minimize the double
counting of internal activities. Governmental activities generally are financed through taxes,
intergovernmental revenues, and other nonexchange transactions.
The Statement of Activities presents a comparison between direct expenses and program revenues for each
function of the District's governmental activities. Direct expenses are those that are specifically associated
with a program or function and, therefore, are clearly identifiable to a particular function. Program revenues
include (a) charges paid by the recipients of goods or services offered by the programs, (b) grants and
contributions that are restricted to meeting the operational needs of a particular program and (c) fees, grants
15
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2012
and contributions that are restricted to financing the acquisition or construction of capital assets. Revenues
that are not classified as program revenues, including all taxes, are presented as general revenues.
Fund Financial Statements. The fund financial statements provide information about the District's funds,
including blended component units. The emphasis of fund financial statements is on major individual
governmental funds, each of which is displayed in a separate column.
Major Funds
Major funds are defined as funds that have either assets, liabilities, revenues or expenditures/expenses equal to ten
percent of their fund -type total and five percent of the grand total. The General Fund is always a major fund. The
District may also select other funds it believes should be presented as major funds.
The District reported all of its funds as major governmental funds in the accompanying financial statements:
General Fund. The General Fund is the general operating fund of the District. It is used to account for all
financial resources. The major revenue sources for this Fund are property taxes, grant revenues and interest
income. Expenditures are made for public safety and other operating expenditures.
Debt Service Fund. The Debt Service Fund is used to account for accumulation of resources for, and the
payment of long-term debt principal, interest and related costs. Resources are provided by General Fund
transfers and interest income on unspent funds.
Basis of Accounting
The government -wide financial statements are reported using the economic resources measurement focus and the
full accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time
liabilities are incurred, regardless of when the related cash flows take place.
Governmental funds are reported using the current financial resources measurement focus and the modified
accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The
District considers all revenues reported in the governmental funds to be available if the revenues are collected
within sixty days after year—end. Expenditures are recorded when the related fund liability is incurred, except for
principal and interest on long -team debt, claims and judgments, and compensated absences, which are recognized
as expenditures to the extent they have matured. Governmental capital asset acquisitions are reported as
expenditures in governmental funds. Proceeds of governmental long-term debt and acquisitions under capital
leases are reported as other financing sources.
Non -exchange transactions, in which the District gives or receives value without directly receiving or giving
equal value in exchange, include taxes, grants, entitlements, and donations. On the accrual basis, revenue from
taxes is recognized in the fiscal year for which the taxes are levied or assessed. Revenue from grants,
entitlements, and donations is recognized in the fiscal year in which all eligibility requirements have been
satisfied.
The District may fund programs with a combination of cost -reimbursement grants and general revenues. Thus,
both restricted and unrestricted net assets may be available to finance program expenditures. The District's policy
is to first apply restricted grant resources to such programs, followed by general revenues, if necessary.
16
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2012
Budgets and Budgetary Accounting
The District's Board of Directors adopts an annual operating budget for the District as a whole, which includes
both its General and Debt Service Funds on or before March 31, for the ensuing fiscal year. The Board of
Directors may amend the budget by resolution during the fiscal year. The legal level of control, the level at which
expenditures may not legally exceed the budget, is at the category level.
Use of Estimates
The preparation of basic financial statements in conformity with accounting principles generally accepted in the
United States of America requires management to make estimates and assumptions that affect certain reported
amounts and disclosures. Accordingly, actual results could differ from those estimates.
Compensated Absences
The total amount of liability for compensated absences is reflected in the basic financial statements. See Note 5
for additional information regarding compensated absences.
Cash and Cash Equivalents
For purposes of the statement of cash flows the District defines cash and cash equivalents to include all cash and
temporary investments with original maturities of three months or less from the date of acquisition.
Property Taxes
Property taxes are levied by Santa Clara and San Mateo Counties and a portion is distributed to the District. The
District recognizes property taxes as revenue in the fiscal year of levy.
Debt Discount and Issuance Costs
Debt discount, premiums, and issuance costs are capitalized as an offset to long-term debt and amortized using the
straight line method over the life of the related debt. Issuance costs for the District's tax-exempt commercial
paper short-term borrowings are expensed as incurred.
NOTE 2 — CASH AND INVESTMENTS
Policies
The District and its fiscal agents invest in individual investments and in investment pools. Individual investments
are evidenced by specific identifiable pieces of paper called securities instruments, or by an electronic entry
registering the owner in the records of the institution issuing the security, called the book entry system. In order
to maximize security, the District employs the Trust Department of a bank as the custodian of all District
managed investments, regardless of their form.
California Law requires banks and savings and loan institutions to pledge government securities with a market
value of 110% of the District's cash on deposit for first trust deed mortgage notes with a value of 150% of the
District's cash on deposit as collateral for these deposits. Under California Law this collateral is held in an
17
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2012
investment pool by an independent financial institution in the District's name and places the District ahead of
general creditors of the institution pledging the collateral.
The District's investments are carried at fair value, as required by generally accepted accounting principles. The
District adjusts the carrying value of its investments to reflect their fair value at each fiscal year end, and it
includes the effects of these adjustments in income for that fiscal year. In the District's case, fair value equals fair
market value, since all District's investments are readily marketable.
Classification
Cash and investments as of March 31, 2012, are classified in the financial statements as shown below, based on
whether or not their use is restricted.
Cash and cash equivalents, available for District operation
Restricted cash and investments
Total Cash and Investments
The District's cash and investments consist of the following at March 31, 2012:
$ 36,704,351
1,567,913
$ 38,272,264
Cash in bank $ 35,128
Deposits 2,333,414
Investments 35,903,722
Total Cash and Investments $ 38,272,264
18
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2012
Investments Authorized by the California Government Code and the District's Investment Policy
The District's Investment Policy and the California Government Code allow the District to invest in the
following, provided the credit ratings of the issuers are acceptable to the District and approved percentages and
maturities are not exceeded. The table below also identifies certain provisions of the California Government
Code or the District's Investment Policy where it is more restrictive:
Maximum Minimum Maximum Maximum
Remaining Credit Percentage Investment
Authorized Investment Type Maturity Quality of Portfolio In One Issuer
US Treasury Obligations 5 years N/A No Limit No Limit
US Agency Securities 5 years N/A No Limit No Limit
California Local Agency Investment Fund Upon Demand N/A $40 million per
account
Negotiable Certificates of Deposit 5 years N/A 30% No Limit
Bankers Acceptances 180 days N/A 40% 30%
Commercial Paper 270 days A 25% 10%
Repurchase Agreements 1 year N/A No Limit No Limit
Reverse Repurchase Agreements 92 days N/A 20% No Limit
Medium Term Notes 5 years A 30% No Limit
Money Market and Mutual Funds N/A Highest Category 20% 10%
Investments Authorized by Debt Agreements
The District must maintain required amounts of cash and investments with trustees or fiscal agents under the
terms of certain debt issues. These funds are used if the District fails to meet its obligations under these debt
issues.
19
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2012
Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an
investment. Normally, the longer the maturity of an investment, the greater the sensitivity of its fair value
changes in market interest rates. The District generally manages its interest rate risk by holding investments to
maturity.
Information about the sensitivity of the fair values of the District's investments (including investments held by
bond trustees) to market interest rate fluctuations is provided by the following table that shows the distribution of
the District's investments by maturity or earliest call date:
12 Months More than
Investment Type or less 12 Months Total
Held by District
California Local Agency Investment Fund $ 12,268,808 $ - $ 12,268,808
Santa Clara County Pool 22,067,001 - 22,067,001
Held by Trustees
US Federal Agency Securities - 1,565,938 1,565,938
Money Market Mutual Funds 1,975 - 1,975
Total Investments $ 34,337,784 $ 1,565,938 $ 35,903,722
The District is a participant in the Local Agency Investment Fund (LAIF) that is regulated by California
Government Code Section 16429 under the oversight of the Treasurer of the State of California. The District
reports its investment in LAIF at the fair value amount provided by LAIF, which is the same as the value of the
pool share. The balance is available for withdrawal on demand, and is based on the accounting records
maintained by LAIF, which are recorded on an amortized cost basis. Included in LAIF's investment portfolio are
collateralized mortgage obligations, mortgage -backed securities, other asset -backed securities, loans to certain
state funds, and floating rate securities issued by federal agencies, government -sponsored enterprises, United
States Treasury Notes and Bills, and corporations. At March 31, 2012, these investments had an average maturity
date of less than one year.
The fair value of the District's investment in the pool is reported at amounts based on the District's pro -rata share
of the fair value provided by the County Treasurer for the entire portfolio (in relation to the amortized cost of the
portfolio). The balance available for withdrawal is based on the accounting records maintained by the County
Treasurer, which is recorded on the amortized costs basis. Santa Clara County Pool funds were available for
withdrawal on demand and had an average maturity date of less than one year.
20
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2012
Credit Risk
Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment.
This is measured by the assignment of a rating by a nationally recognized statistical rating organization.
Presented below is the actual rating as of March 31, 2012, for each investment type as provided by Moody's
investment rating system.
Investment Type
Held by Trustees
US Federal Agency Securities
Money Market Mutual Funds
California Local Agency Investment Fund
Santa Clara County Pool
Total Investments
Concentration Risk
Not Rated Aaa
$ - $ 1,565,938
1,975
12,268,808
22,067,001
$ 34,335,809
Total
$ 1,565,938
1,975
12,268,808
22,067,001
$ 1,567,913 $ 35,903,722
The District was not exposed to concentration of credit risk because it had no investments in any one issuer that
exceeded 5% of its total investment portfolio.
Restricted Cash and Investments
The District has the following restrictions on cash and investments:
Restricted for Debt Service. The District has moneys held by Bank of New York as trustee, pledged to the
payment or security of its outstanding bond issues. All transactions associated with debt serve are
administered by the Bank. The cash and investment amounts were $1,567,913 as of March 31, 2012.
NOTE 3 — NOTES RECEIVABLE
On December 17, 1997, the District sold the title to and possession of a 50 -year fee determinable estate 10 -acre
parcel near the Skyline Ridge Open Space Preserve. The District fmanced the purchase in the amount of
$288,800 over 25 years at a rate of 10% per annum. Monthly principal and interest payments of $2,634 are due
on the ls` of each month and late if not paid by the 10"', with the final payment scheduled December 1, 2022. The
outstanding balance at March 31, 2012 was $206,958. On November 10, 2011, the District received the gift of
the 79 acre Hawthorns property, in Portola Valley, California, and an endowment of $2,018,445 to manage the
property in perpetuity. The outstanding balance of the endowment liability was $1,971,040 as of March 31, 2012.
21
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2012
NOTE 4 — CAPITAL ASSETS
Capital assets are recorded at the time of purchase and are capitalized at cost.
The District capitalizes as part of the asset cost, any significant interest incurred during the construction phase of
the asset.
Depreciation is provided using the straight-line method for assets other than land. Estimated useful lives are as
follows:
Structures and improvements 10 to 30 years
Infrastructure 30 to 40 years
Equipment 5 to 20 years
Vehicles 10 to 20 years
Changes in capital assets accounts are summarized below:
Balance at Additions & Retirements & Balance at
March 31, 2011 Transfers Transfers March 31, 2012
Capital assets not being depreciated
Land $ 345,388,885 $ 24,194,231 $ (1,115,000) $ 368,468,116
Construction in progress 2,800,845 2,607,339 (629,230) 4,778,954
Total capital assets not being depreciated 348,189,730 26,801,570 (1,744,230) 373,247,070
Capital assets being depreciated
Structure and improvements 12,861,738 1,240,930 - 14,102,668
Infrastructure 3,899,901 503,282 - 4,403,183
Equipment 1,302,609 - 1,302,609
Vehicles 2,466,492 388,422 (163,123) 2,691,791
Total capital assets being depreciated 20,530,740 2,132,634 (163,123) 22,500,251
Less accumulated depreciation for
Structure and improvements 6,505,526 411,333 6,916,859
Infrastructure 941,421 122,634 - 1,064,055
Equipment 564,758 80,918 - 645,676
Vehicles 1,142,532 191,336 (145,179) 1,188,689
Total accumulated depreciation 9,154,237 806,221 (145,179) 9,815,279
Net cap al assets being depreciated
11,376,503 1,326,413
(17,944) 12,684,972
Total capital assets, net $ 359,566,233 $ 28,127,983 $ (1,762,174) $ 385,932,042
Construction in progress represents construction of structure, equipment and improvements and infrastructure not
yet placed in service at March 31, 2012.
22
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2012
At March 31, 2012, the District had made commitments of approximately $9,564,353 for construction work, legal
and consulting fees, and purchases of supplies and equipment.
NOTE 5 — ACCURED COMPENSATED ABSENCES
In accordance with the District's memorandum of understanding with various employee groups, employees
accrue fifteen days of vacation during the first nine years of service, twenty days between service years 10 and
fourteen, twenty-one days between service years fifteen and nineteen, twenty-three days between service years
twenty and twenty-four, and twenty-five days after twenty-five years of service. An employee may accumulate
vacation time earned to a maximum of two times the amount of his/her annual vacation accrual.
Full -rime employees accrue twelve days of sick leave annually from the date of employment. An employee may
accumulate sick leave time earned on an unlimited basis. Upon resignation, separation from service, or retirement
from District employment, workers in good standing with ten or more years of District employment shall receive
a cash payment of the equivalent cash value of accrued sick leave as follows:
Years of Employment
10-15
16-20
21 or more
Percentage of equivalent
cash value of accrued
sick leave
20%
25%
30%
An employee hired before August 9, 2006, who retires from the District shall receive a cash payment of the
percentage of equivalent cash value or accrued sick leave based on years of employment as described above, and
apply the remainder of the equivalent cash value toward his/her cost of retiree medical plan premiums and/or
other qualified medical expenses. Upon retirement, the amount qualified and designated for retiree medical costs
shall be deposited in the Retiree Health Savings (RHS) plan, set up by the District. The cost for maintaining the
retiree's RHS account and the annual fee for the reimbursement process of qualified medical expenses will be
paid for by the retiree.
An employee hired on or after August 9, 2006, who retires from the District may elect to receive only a cash
payment of the percentage of equivalent cash value of accrued sick leave based on years of employment as
described above.
In all cases the equivalent cash value of accrued sick leave will be based on current rate of pay as of the date of
separation from District employment.
The District accrues for all salary -related items in the government -wide statements for which they are liable to
make a payment directly and incrementally associated with payments made for compensated absences on
termination. Accrued compensated absences were $1,254,515 as of March 31, 2012.
23
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2012
The change in compensated absences was as follows:
Governmental
Activities
Beginning Balance, at April 1, 2011
Net change
Ending balance, at March 31, 2012
Current Portion
NOTE 6 — LONG-TERM DEBT
Summarized below are the current year's activities for long-term debt:
Original
Issue Beginning
Amount Balance
Additions Retirements
1,135,684
118,831
1,254,515
118,831
Amount
Ending due within
Balance one year
Current Interest Promissory Notes
Hunt Living Trust Promissory Note
5.00-5.50%, due 4/2/2023 $ 1,500,000 $ 1,500,000 $ - $ - $ 1,500,000 $
Daloia Land Contract Promissory Note
6.25%, due 10/10/2017 240,000 134,529 - 16,683 117,846 17,752
2005 Refunding Promissory Notes
3.25-5.00%, due4/1/2015 4,630,000 3,945,000 - 780,000 3,165,000 810,000
Bergman Note 850,000 850,000 - - 850,000
2012 Promissory Refunding Note 15,790,000 - 15,790,000 - 15,790,000
Unamortized Premium - 2,309,639 163,573 2,146,066
Total promissory notes 23,010,000 6,429,529 18,099,639 960,256 23,568,912 827,752
Current Interest Revenue Bonds
1999 Lease Revenue Bonds
3.70-5.40%, due 4/1/2031 15,775,000 6,950,000 - 6,950,000 - 2004 Revenue Bonds
2.00-5.40%, due 9/1/2034 30,560,000 29,810,000 - 425,000 29,385,000 490,000
2007 Series A Rev Refunding Bonds
4.00-5.00%, due 9/1/2027 52,415,000 52,415,000 - - 52,415,000 1,120,000
2007 Series B -T Taxable Revenue
Refunding Bonds, 5.15%, due 9/1/2012 6,785,000 2,155,000 - 1,750,000 405,000 405,000
2011 Lease Revenue Bond 20,500,000 - 20,500,000 - 20,500,000 -
Unamortized Premium NA 606,841 (237,551) - 369,290 -
. Unamortized loss on refunding NA (3,581,582) (398,414) 339,194 (3,640,802) 339,194
Total revenue bonds 105,535,000 88,355,259 19,864,035 9,464,194 99,433,488 2,354,194
Capital Appreciation Bonds and Notes
1999 Revenue Bonds Accretion 13,888,021 26,279,454 1,423,189 27,702,643
2004 Lease Revenue Bonds Accretion 1,340,010 1,955,736 105,779 - 2,061,515 -
2012 Promissory Refunding Notes - - 15,474,707 - 15,474,707 -
Total Accretion 15,228,031 28,235,190 17,003,675 27,702,643 17,536,222 -
Total debt $ 143,773,031 $ 123,019,978 $ 54,967,349 $ 38,127,093 $ 140,538,622 $ 3,181,946
24
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2012
Promissory Notes
Hunt Living Trust Promissory Note. On April 1, 2003, the District entered into a $1,500,000 promissory
note with the Hunt Living Trust as part of a lease and management agreement. The note is due in full on
April 1, 2023 and bears interest at 5.5% semi-annually through April 1, 2013 and 5.0% per annum until the
maturity, or prior redemption, of the note. At March 31, 2012, the outstanding balance on the note was
$1,500,000.
Daloia Land Purchase Contract Promissory Note. During fiscal year ending 2003 the District entered into
a land purchase contract promissory note in the amount of $240,000. The promissory note bears interest at a
fixed rate of 6.25% and matures October 10, 2017. At March 31, 2012, the outstanding balance of the Daloia
Land Contract note was $117,846.
2005 Refunding Promissory Note. On June 30, 2005, the District issued $4,630,000 of 2005 Refunding
Promissory Notes for the purpose of refunding all of its outstanding 1995 Promissory Notes. The 2005 notes
bear interest rates from 3.25% to 5.00%. Principal and interest rates are due semi-annually on March 1 and
September 1. At March 31, 2012, the outstanding balance was $3,165,000.
2010 Bergman Note. On Nov 30, 2010, the District issued a promissory note with Principal of $850,000 and
interest of 4% to finance the purchase of land. Interest and principal are due on a quarterly basis beginning
February 28th, 2011 and mature on November 30, 2015. At March 31, 2012, the outstanding balance was
$850,000.
2012 Refunding Promissory Notes. On January 19. 2012, the District advance refunded $34,652,643 in
1999 lease revenue bonds by issuing $31,264,707 in promissory notes. The 2002 notes bear interest rates
ranging from 2.00% to 6.04%. The notes are a blend of current interest and capital appreciation notes
maturing through 2042 fiscal year. The net proceeds of $33,295,663 (after payment of $278,683 million in
underwriting fees, insurance, and other issuance costs and a premium of $2,309,638) were used to purchase
U.S government securities. Those securities were deposited in an irrevocable trust with an escrow agent to
provide for all future debt service payments on the 1999 Series bonds. As a result, the 1999 Series bonds are
considered to be defeased and the liability for those bonds has been removed from the long-term debt in the
financial statements. Although the advance refunding resulted in the recognition of an accounting loss of
$398,414 for the year ended March 31, 2012, the District in effect reduced its aggregate debt service
payments by $26,590,972 over the first sixteen years of the debt.
Revenue Bonds
1999 Lease Revenue Bonds. On January 20, 1999 the Authority, on behalf of the District, issued
$29,663,021 of 1999 Lease Revenue Bonds for the purpose of acquiring land to preserve and use as open
space, purchase a reserve fund surety policy, and pay bond issue costs. These bonds were advance refunded
by the 2012 promissory notes as described above.
2004 Revenue Bonds. On January 20, 2004, the Authority on behalf of the District, issued $31,900,010 of
2004 Revenue Bonds for the purpose of acquiring land to preserve and use as open space, repay a portion of a
1995 Promissory Note, purchase a reserve fund surety policy, and pay bond issue costs. The bonds consist of
Current Interest and Capital Appreciation Bonds. The Current Interest Bonds bear interest at 2.0% to 5.4%
and are due semi-annually on March 1 and September 1. The Capital Appreciation Bonds accrete interest at
5.2% to %.4% and compound semi-annually on March 1 and September 1. Principal payments on the Current
25
MIDPENINSHLA REGIONAL OPEN SPACE DISTRICT
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2012
Interest Bonds are due annually September 1. Principal payments on the Capital Appreciation Bonds are
payable at maturity beginning March, 2020. At March 31, 2012, the outstanding balance of these bonds was
$31,446,515.
2007 Series A Revenue Refunding Bonds and Series B -T Taxable Revenue Refunding Bonds. On
December 15, 2006 the District issued six series of promissory notes (2007 District Notes) for the purpose of
refunding its 1996 Project Lease, 1996 Promissory Notes, 1999 Project Lease, and 1999 Promissory Notes.
On December 15, 2006 the Authority, on behalf of the District, issued $52,415,000 of 2007 Series A Revenue
Refunding Bonds and $6,785,000 of 2007 Series B -T Taxable Revenue Refunding Bonds for the purpose of
defeasing the aggregate purchase price of the 2007 District Notes. The Series A bonds bear interest from
4.0% to 5.0% and Series B -T bonds bear interest at 5.15%. Interest for both series A and B -T are due semi-
annually on March 1 and September 1. Principal payments for the Series A bonds begin September, 2012 and
are due annually, thereafter. Principal payments for the Series B -T bonds are due annually on September 1.
At March 31, 2012 the outstanding balance of 2007 Series A Bonds is $52,415,000 and the outstanding 2007
Series B -T Bonds is $405,000, and the remaining balance of the defeased debt was $16,233,182.
2011 Revenue Bonds. On May 19, 2011, the Authority, on behalf of the District, issued $20,500,000 of 2011
Revenue Bonds for the purpose of acquiring land to preserve and use as open space and pay bond issue and
related costs. The Bonds are not general obligations. Each year, the District will appropriate revenues -mainly
limited properly tax collections that Santa Clara County and San Mateo County allocate to the District — to
pay its obligations under a Lease Agreement for use and occupancy of District land in addition to other
District debt and lease obligations unrelated to this financing. The Current Interest Bonds bear interest at
2.0% to 6.0% and are due semi-annually on March 1 and September 1. Principal payments on the Current
Interest Bonds are due annually September 1. At March 31, 2012, the outstanding balance of these bonds was
$20,500,000.
26
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2012
Debt Service Requirements
Annual debt service requirements are shown below for all long-term debt:
For the Year
Ending March 31
2013
2014
2015
2016
2017
2018-2022
2023-2027
2028-2032
2033-2036
2037-2041
2042
Total payments due
Promissory Notes
Principal
$ 827,752
1,703,888
1,650,096
1,226,382
387,750
2,068,012
4,660,000
11,051,216
6,965,270
5,409,467
947,720
Remaining
Accretion
3,312,750
16,099,085
20,612,183
4,562,280
Interest
$ 1,014,008
905,308
831,875
782,314
744,646
3,489,516
2,743,700
795,825
Total
$ 1,841,760
2,609,196
2,481,971
2,008,696
1,132,396
5,557,528
7,403,700
15,159,791
23,064,355
26,021,650
5,510,000
$ 92,791,043
36,897,553 $ 44,586,298 $ 11,307,192
Plus: unamortized premiums 2,146,066
Total carrying amount $ 39,043,619
27
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2012
For the Year Revenue Bonds
Accretion to Remaining
Ending March 31 Principal Date Accretion Interest Total
2013 $ 2,015,000 $ - $ - $ 5,045,597 $ 7,060,597
2014 1,295,000 - - 4,974,518 6,269,518
2015 1,495,000 - - 4,916,630 6,411,630
2016 3,260,000 - - 4,810,530 8,070,530
2017 3,960,000 4,647,855 8,607,855
2018-2022 22,491,711 142,412 210,877 20,739,009 43,584,009
2023-2027 29,033,251 549,456 1,532,293 15,920,495 47,035,495
2028-2032 18,180,049 29,636 75,315 8,092,647 26,377,647
2033-2037 14,170,000 - - 3,823,501 17,993,501
2038-2042 8,145,000 - - 1,240,163 9385163
Total payment due 104,045,011 $ 721,504 $ 1,818,485 $ 74,210,945 $ 180,795,945
Plus: unamortized premiums 369,290
Minus: unamortized loss on
refundings (3,640,803)
Total carrying amount $ 100,773,498
28
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2012
Debt Repayment
All debt is payable from limited ad valorem property taxes levied on all taxable property within the District.
NOTE 7 — RENTAL INCOME
The District leases (rents) certain land and structures to others under operating leases with terms generally on a
month -to -month basis. Rental income of $1,026,030 was received during the year ended March 31, 2012.
NOTE 8 — RETIREMENT PLAN
Pension Plan
All permanent District employees are eligible to participate in the pension plan offered by California Public
Employees Retirement System (CALPERS) an agent multiple employer defined benefit pension plan with acts as
a common investment and administrative agent for its participating member employers. CALPERS provides
retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must
be public employees and beneficiaries. The District's employees participate in the Miscellaneous (non safety)
Employee Plan. Benefit provisions under the Plan are established by State statute and District resolution.
Benefits are based on years of credited service, equal to one year of full time employment. Funding contributions
for the Plan are determined annually on an actuarial basis as of June 30 by CALPERS; the District must
contribute these amounts. The Plans' provisions and benefits in effect at March 31, 2012, are summarized as
follows:
Miscellaneous
Benefit vesting schedule 5 years service
Benefit payments Monthly for life
Retirement age 50
Monthly benefits, as a % of annual salary 2.0-2.5%
Required employee contribution rates 8.0%
Required employer contribution rates 15.809%
CALPERS determines contribution requirements using a modification of the Entry Age Normal Method. Under
this method, the District's total normal benefit cost for each employee from date of hire to date of retirement is
expressed as a level percentage of the related total payroll cost. Normal benefit cost under this method is the level
amount the District must pay annually to fund an employee's projected retirement benefit. This level percentage
of payroll method is used to amortize any unfunded actuarial liabilities. The actuarial assumptions used to
compute contribution requirements are also used to compute the actuarial accrued liability. The District does not
have a net pension obligation since it pays these actuarially required contributions bi-weekly.
CALPERS uses the market related value method of valuing the Plan's assets. An investment rate of return of
7.75% is assumed, including inflation at 3.0%. Annual salary increases are assumed to vary by duration of
service. Changes in liability due to plan amendments, changes in actuarial assumptions, or changes in actuarial
methods are amortized as a level percentage of payroll on a closed basis over twenty years. Investment gains and
losses are accumulated as they are realized and ten percent of the net balance is amortized annually.
29
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2012
As required by new State law, effective July 1, 2005, the District's Miscellaneous Plan was terminated, and the
employees in the plan were required by CALPERS to join new State-wide pools. One of the conditions of entry
to these pools was that the District true -up any unfunded liabilities in the former Plans, either by paying cash or
by increasing its future contribution rates through a Side Fund offered by CALPERS. The District satisfied its
Miscellaneous Plan's unfunded liability of $2,510,958 by agreeing to contribute that amount to the Side Fund
through an addition to its normal contribution rates over the next 21 years. The required contributions
representing annual pension cost, for the year ended Mar 31 were as follows:
Annual Percentage of Net
Fiscal Year Pension Cost APC Pension
Ending (APC) Contributed Obligation
3/31/2012 $ 1,572,759 100% $ 3/31/2011 1,415,161 100% -
3/31/2010 1,269,386 100% -
The latest available actuarial values of the above State-wide pools (which differs from market value) and funding
progress were set forth as follows. The information presented below relates to the State-wide pools as a whole, of
which the District is one of the participating employers:
Actuarial Unfunded
Unfunded Annual (Overfunded)
Valuation Accrued Value of (Overfunded) Funded Covered Liability as
Date Liability Assets Liability Ratio Payroll of Payroll
2009 1,834,424,640 1,493,430,831 340,993,809 81.41% 355,150,151 96.01%
Audited annual financial statements are available from CALPERS at PO Box 942709, Sacramento, CA 94229-
2709.
NOTE 9 — OTHER POST EMPLOYMENT BENEFITS
During fiscal year 2009, the District implemented the provisions of Governmental Accounting Standards Board
Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than
Pensions. This Statement establishes uniform financial reporting standards for employers providing
postemployment benefits other than pensions (OPEB). The provisions of this statement are applied prospectively
and do affect prior years financial statements. Required disclosures are presented below.
The District joined the California Employers' Retiree Benefit Trust (CERBT), an agent multiple -employer plan
administered by CALPERS, consisting of an aggregation of single -employer plans. District Board authorized a
deposit of $1,900,000 with CERBT on June 5, 2008, to begin funding its OPEB liability-.
By Board resolution and through agreements with its labor unit, the District provides certain health care benefits
for retired employees (spouse and dependents are not included) under third -party insurance plans. A summary of
eligibility and retiree contribution requirements are shown below by bargaining unit:
Eligibility
- Service or disability retirement from the District
- Age 50 and 5 years of service
30
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2012
Benefit
Surviving Spouse
Continuation
Dental, Vision and
Life
- Continue participation in Public Employees
Medical and Hospital Care Act (PEMHCA)
District pays retiree premiums up to:
$350 per month effective 1/1/2009
- Same benefit continues to surviving spouse
None
As of March 31, 2012, approximately 94 active employees and 7 retirees were eligible to receive retirement health
care benefits.
Funding Policy and Actuarial Assumptions
The annual required contribution (ARC) was determined as part of a March 31, 2010, actuarial valuation using the
entry age normal actuarial cost method. This is a projected benefit cost method, which takes into account those
benefits that are expected to be earned in the future as well as those already accrued. The actuarial assumptions
included (a) 7.75% investment rate of return, (b) 3.25% projected annual salary increase, and (c) 3.0% health
inflation increases. The actuarial methods and assumptions used include techniques that smooth the effects of
short-term volatility in actuarial accrued liabilities and the actuarial value of assets. Actuarial calculations reflect
a long-term perspective and actuarial valuations involve estimates of the value of reported amounts and
assumptions about the probability of events far into the future. Actuarially determined amounts are subject to
revision at least biannually as results are compared to past expectations and new estimates are made about the
future. The District's OPEB unfunded actuarial accrued liability is being amortized as a level percentage of
projected payroll using a 30 year open amortization period.
In accordance with the District's budget, the ARC is to be funded throughout the year as a percentage of payroll.
Concurrent with implementing Statement No. 45, the District Board passed a resolution to participate in the
California Employers Retirees Benefit Trust (CERBT), an irrevocable trust established to fund OPEB. CERBT is
administrated by CalPERS, and is managed by an appointed board not under the control of the District Board.
This Trust is not considered a component unit by the District and has been excluded from these financial
statements. Separately issued financial statements for CERBT may be obtained from CALPERS at PO Box
942709, Sacramento, CA 94229-2709.
31
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2012
Funding Progress and Funded Status
Generally accepted accounting principles permits contributions to be treated as OPEB assets and deducted from
the Actuarial Accrued Liability (AAL) when such contributions are placed in an irrevocable trust or equivalent
arrangement. During the fiscal year 2009, the District made contribution in excess of the ARC and amortized its
net OPEB obligation as presented below:
Annual required contribution
Interest on net OPEB asset
Adjustment to annual required contribution
Annual OPEB cost
Net OPEB Asset at March 31, 2011
Net OPEB Asset at March 31, 2012
$ 152,255
(118,000)
145,000
179,255
1,513,561
$ 1,334,306
The Plan's annual required contributions and actual contributions for fiscal years ended March 31, 2010 to 2012
are set forth below:
Fiscal Year
3/31/2012 $ 179,255 $ - 0% $ 1,334,306
3/31/2011 153,000 - 0% 1,513,561
3/31/2010 56,439 - 0% 1,666,561
Percentage
Annual Actual of Annual Net OPEB
OPEB Cost Contribution OPEB Cost Asset
The Schedule of Funding Progress presents multi -year trend information about whether the actuarial value of plan
assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits. Trend data from
the actuarial studies is presented below:
Overfunded
Overfunded (Underfunded)
Entry Age (Underfunded) Actuarial
Actuarial Actuarial Actuarial Actuarial Liability as
Valuation Value of Accrued Accrued Funded Covered Percentage of
Date Assets Liability Liability Ratio Payroll Covered Payroll
3/31/2010 $ 1,894,000 $ 1,500,000 $ 394,000 126.27% $ 5,772,000 6.8%
32
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2012
NOTE 10 — RISK MANAGEMENT
Coverage
The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets;
injuries to employees; and natural disasters. Prior to July I, 2002, the District managed and financed these risks
by purchasing commercial insurance. On July 1, 2002, the District joined the California Joint Powers Insurance
Authority (CAL JPIA). CAL JPIA is composed of 119 California public entities and is organized under a joint
powers agreement pursuant to California Government Code Section 6500 et seq. The purpose of CAL JPIA is to
arrange and administer programs for the pooling of self-insurance losses, to purchase excess insurance or
reinsurance, and to arrange for group -purchased insurance for property and other coverages. CAL JPIA's pool
began covering claims of its members in 1978. Each member government has an elected official as its
representative on the Board of Directors. The Board operates through a 9 -member Executive Committee.
During the past three fiscal years, none of the programs of protection have had settlements or judgments that
exceeded pooled or insured coverage. There have been no significant reductions in pooled or insured liability
coverage from coverage in the prior year.
Self -Insurance Programs of the CAL JPIA
General and Automobile Liability- Each government member pays a primary deposit to cover estimated
losses for a fiscal year (claims year). General liability (GL) coverage includes bodily injury, personal injury,
or property damage to a third party resulting from a member activity. The GL program also provides
automobile liability coverage. Six months after the close of a fiscal year, outstanding claims are valued. A
retrospective deposit computation is then made for each open claims year. Costs are spread to members as
follows: the first $30,000 to $750,000 are pooled based on member's share of costs under $30,000; costs in
excess of $750,000 are shared by the members based upon each individual member's payroll. Costs of
covered claims above $5,000,000 are currently paid by reinsurance. The protection for each member is
$50,000,000 per occurrence, up to $50,000,000.
Worker's Compensation. The District also participates in the Worker's Compensation program
administered by CAL JPIA. Pool deposits and retrospective adjustments are valued in a manner similar to the
General Liability pool. The District is charged for the first $50,000 of each claim. Costs from $50,000 to
$100,000 per claim are pooled based on the member's losses under its retention level. Costs between
$100,000 and $2,000,000 per claim are pooled based on payroll. Costs from $2,000,000 to $5,000,000 are
paid by excess insurance purchased by CAL JPIA. The excess insurance provides coverage to statutory
limits.
Purchased Insurance
Environmental Insurance. The District participates in the Pollution and Remediation Legal Liability
Program, which is available through CAL JPIA. The policy provides coverage for both first and third party
damages, including sudden and gradual pollution at or from property, streets, sanitary sewer trunk lines and
storm drain outfalls owned by the District. Coverage is on a claims -made basis. There is a $50,000
deductible. CAL JPIA has a limit of $50,000,000 for the 3 -year period from July 1, 2008 through July 1,
2011. Each member of CAL JPIA has a $10,000,000 aggregate limit during the 3 -year policy term.
33
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2012
Property Insurance. The District participates in the All -Risk property program of CAL JPIA which includes
all-risk coverage for real and personal property (such as buildings, office furniture, equipment, vehicles, etc).
This insurance is underwritten by several insurance companies. Property is currently insured according to a
schedule of covered property submitted by the District to CAL JPIA. The All -Risk deductible is $5,000 per
occurrence; $1,000 for non -emergency vehicles. Premiums for the coverage are paid annually and are not
subject to retroactive adjustments.
Boiler & Machinery Insurance. The District participates in the optional coverage for boiler and machinery,
which is purchased separately under the property program. Coverage is for physical damage for sudden and
accidental breakdown of boilers and machinery, and electrical injury. There is a $5,000 per accident or
occurrence deductible; properties on property schedule are covered.
Crime Insurance. The District participates in the crime program of CAL JPIA in the amount of $1,000,000
per claim, with a $2,500 per occurrence deductible. Insurance provides coverage for employee dishonesty,
failure to faithfully perform duties, forgery, counterfeiting, theft, robbery, burglary, and computer fraud.
Premiums are paid annually and are not subject to retroactive adjustments.
Special Event Tenant User Liability Insurance. The District participates in the special events program of
CAL JPIA which provides liability insurance when District promises are used for special events. The
insurance premium is paid by the tenant user to the District according to a schedule. The District then pays
the insurance arranged through CAL JPIA. There is no deductible and the District is added as additional
insured. Liability limits are purchased in $1 million per occurrence increments.
Vendors/contractors program. General liability coverage is provided to vendors/contractors who
otherwise could not contract with the District as they could not meet the minimum insurance requirement: $1
million per occurrence, $1 million in aggregate.
NOTE 11 — NET ASSETS
Net Assets is the excess of all the District's assets over all its liabilities, regardless of fund. Net Assets are
divided into three captions under GASB Statement 34. These captions apply only to Net Assets, which is
determined only at the District -wide level, and are described below:
Invested in Capital Assets, net of related debt describes the portion of Net Assets which is represented by
the current net book value of the District's capital assets, less the outstanding balance of any debt issued to
finance these assets.
Restricted describes the portion of Net Assets which is restricted as to use by the terms and conditions of
agreements with outside parties, governmental regulations, laws, or other restrictions with the District cannot
unilaterally alter.
Unrestricted describes the portion of Net Assets which is not restricted to use.
34
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2012
Contingent Liabilities
The District has entered into numerous agreements, has properties that will require environmental remediation,
and is named in certain claims and litigations. In the opinion of management, after consultation with counsel, the
liability, if any, resulting there from will not have a material effect on the District's financial position.
35
REQUIRED SUPPLEMENTARY INFORMATION
36
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE
FOR THE YEAR ENDED MARCH 31, 2012
REVENUES
Property taxes
Grant income
Investment income
Property management - rents
Other income
Land Donation
Total Revenues
EXPENDITURES
Current
Salaries
Benefits
Directors
Services and supplies
Capital Outlay
New land purchases
Land acquisition support costs
Structures and improvements
Equipment
Vehicles
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
OTHER FINANCING SOURCES (USES)
Other Sources
Transfers (out)
Total Other Financing Sources (Uses)
NET CHANGE TN FUND BALANCE
Fund balance at beginning of year
Fund balance at end of year
Budgeted Amounts
Original
Final
Variance
Favorable
Actual (Unfavorable)
$ 27,641,000
1,961,000
330,000
1,076,000
518,550
$ 27,619,000
1,400,700
330,000
1,076,000
518,550
$ 28,737,153
1,452,738
229,136
1,026,030
533,753
13,927,600
$ 1,118,153
52,038
(100,864)
(49,970)
15,203
13,927,600
31,526,550
30,944,250
45, 906,410 14, 962,160
8,282,859 7,817,299 7,911,094 (93,795)
3,368,041 3,406,632 3,238,516 168,116
25,000 25,000 28,900 (3,900)
3,562,722 3,251,894 2,817,329 434,565
13,495,000 13,495,000 23,996,584 (10,501,584)
286,000 255,000 197,646 57,354
2,728,310 2,636,562 1,397,807 1,238,755
1,720,000 1,348,000 1,387,533 (39,533)
220,000 227,000 210,423 16,577
33,687,932 32,462,387 41,185,832 (8,723,445)
(2,161,382) (1,518,137) 4,720,578 6,238,715
20,000,000
(9,728,975)
10,271,025
20,000,000 20,000,000
(9,728,975) (9,826,801)
10,271,025 10,173,199
(97,826)
(97,826)
$ 8,109,643 $ 8,752,888
14,893,777 $ 6,140,889
26,887,766
$ 41,781,543
37