County of Mendocino Post Office Box 629

Comments 16

• CO1
  Despite the excessive workload and the problems with the facility, the staff of the Mendocino County Sheriff Sub-Station in Fort Bragg is providing excellent services. In the opinion of the Sheriff’s Department, overtime would not be reduced by additional staff. Adding a substantial number of deputies to the roster would allow the Department to increase the hours of community policing. Response Required Mendocino County Board of Supervisors, Findings 6, 10, 11, 12, 13, 14 and Recommendations 1 through 7. Sheriff, Mendocino County Sheriff’s Department, Findings 1 through 15 and Recommendations 1 through 6. Director, Mendocino County Department of General Services, Findings 6, 10, 11, 12, 13, 14 and Recommendations 1 through 6. Mendocino County Grand Jury 2005-2006 Page 6 of 64 FORT BRAGG POLICE DEPARTMENT AND HOLDING CELL November 3, 2005 Summary In accordance with duties required, the Grand Jury visited the Fort Bragg Police Department (FBPD), the department office, and a holding cell on the adjoining property of the Mendocino County Sheriff’s Department.
• CO2
  The FBPD continues to perform well in the face of financial adversity. The Department is able to provide the necessary services and protection for their community but would like to be able to do more with education and prevention within the local school systems. The FBPD is looking for grant funding to carry out special projects and making special efforts to find affordable housing for police personnel. In the course of this investigation the Grand Jury learned that a Fort Bragg Emergency Plan is in place; this is a component of the Mendocino Emergency Services Authority plan which involves all city and County emergency agencies. A tsunami plan for Fort Bragg and environs is currently under development. The Grand Jury believes that city residents should be familiar with the details of these plans, and that the City needs to facilitate this familiarity. Response Required Fort Bragg City Council, Finding 2, 10 Police Chief, FBPD, Findings 1 through 12 and Recommendation 1 Response Requested Director, Mendocino County General Services, Finding 10 and Recommendation 1 Mendocino County Grand Jury 2005-2006 Page 8 of 64 COUNTRY SCHOOLS ARE ALIVE AND WELL: THREE RURAL DISTRICTS IN MENDOCINO COUNTY February 21, 2006 Summary As part of an ongoing survey of Mendocino County school districts, the Grand Jury undertook an assessment of the facilities, staffing, student populations and school/community relations in three rural districts.
• CO3
  “Schools should be the most beautiful structures in town”. This statement by a Mendocino County school administrator was meant literally, but its deeper meaning is surely felt by students, parents and staff of the three districts surveyed by the 2005- 2006 Grand Jury. In a County notorious for its drug tolerance and availability, there seems small evidence that hard drug use or genuine gang activity has gained a foothold in the elementary and secondary schools of Anderson Valley, Leggett and Pt. Arena. Alcohol and marijuana use on school sites is not unknown but uncommon. Instead, the primary problem seems to be poverty: 75 to 80% of the students in the districts surveyed are on the free or reduced fee breakfast and lunch program. Tied to low income and high Hispanic and Native American populations in two of the schools is a second problem: high tranciency rates. Affordable housing and long term, adequately compensated employment are hard to find in rural Mendocino. When circumstances become difficult, families move on, disrupting the education of their children. Compounding this problem, a growing school population speaking English as a second language and increasing evidence of severe language impairment in pre-K and primary children make meeting the State Literacy Requirements a formidable task. In spite of this, the three rural districts are in so many ways a success story. An inordinate percentage of graduates attend two and four year colleges, many on well- earned scholarships. A huge percentage of the population is bussed to their schools: they arrive, eat breakfast, and attend classes, most with enthusiasm and a positive attitude. A small but dedicated group of parents work for and within each school district for the benefit of all students. Most importantly, these rural districts boast caring, competent staff (several of them former students), strict but not unreasonable regulations, and a personal, nurturing educational environment that larger urban and suburban schools simply cannot duplicate. Mendocino County Grand Jury 2005-2006 Page 13 of 64 The country schoolhouse may be wired for the Internet, but the educational family still exists for youth in the far corners of Mendocino.
• CO4
  According to Mendocino County law enforcement personnel, gang activity is increasing drastically; the implications of that for MCJH are extensive and serious. The Grand Jury found the facility to be clean and safe and wishes to commend the staff and administration of the MCJH for their excellent work despite budgetary constraints. It has been estimated that a limited work program for juvenile offenders in the Ukiah Valley could be implemented for $70,000, to be operational within three weeks of funding. A fully funded county-wide program would cost approximately $280,000, the Mendocino County Grand Jury 2005-2006 Page 16 of 64 same amount budgeted in the past. The Grand Jury believes that such a program would significantly reduce costs to the County for MCJH as well as other programs. Response Required Mendocino County Board of Supervisors (Findings 3, 8, 9, 10, Recommendations 1, 2) Mendocino County Juvenile Hall Facility Manager (Findings 3, 8, 9, 10, Recommendations 1, 2) Mendocino County Chief Probation Officer (Findings 8, 9, 10, Recommendation 2) Judge, Mendocino County Juvenile Court (Findings 8, 9, 10, Recommendation 2) Mendocino County Grand Jury 2005-2006 Page 17 of 64 THE PIERCY PHOENIX: a Report on the Piercy Fire Protection District April 6, 2006 Summary The 2005-2006 Mendocino County Grand Jury conducted an oversight of the Piercy Fire Protection District and found a district struggling with enormous burdens to rebuild itself.
• CO5
  As the smallest fire protection district in the County and with no local employers, the PFPD finds itself in a truly hazardous position. In January of 2004 the department shut down operations, in part due to changes in state law. SB1207-Romero 2002 made department chiefs and directors responsible for ensuring that volunteers be trained to the same level as responders in full-time, paid departments. Unfortunately, many would- be volunteers are unable to spend the time and money required not only to reach this level of training but to maintain it. As a result, many fire departments in the County have had to face a drastic shortage of people willing and able to volunteer. The fact that the chief and board of directors are personally responsible for this training was part of the reason that the PFPD closed for more than 18 months. During this time the Leggett Valley Fire Protection District was responding to calls in this area. This resulted in a ripple effect through the rest of the County as other districts had to respond farther north and east to fill in the gap. The revenue to PFPD comes primarily from property taxes. Under the terms of Proposition 13 all property tax is lumped together. This amount is then distributed to the various entities in the County which receive property tax revenue. The amount apportioned to each entity is determined by law. Special districts like PFPD receive a fixed percentage of all property tax revenues proportionate to district area. As a result, this level of support is fixed and offers no solution to the problems facing the district. The fact that the PFPD is once again in operation should not be taken as evidence that these problems no longer exist. With yearly revenues of less than $9000 ( compared to Leggett Valley Fire Protection District with a comparable non-grant budget of $21,300) the PFPD is constantly on the verge of shutting down once again. Should they experience an equipment failure in their aging fleet or a sudden loss of personnel, they may have no option but to close down. The Grand Jury recognizes there is little, if anything, the PFPD can do to alleviate this situation as it is largely the result of State and County policies. The Grand Jury looks to County government to work with the PFPD in seeking innovative ways to maintain public safety. The Grand Jury would like to recognize the extraordinary efforts, both past and ongoing, made by the members of the PFPD and Piercy residents in general in restoring their department to operational status. Mendocino County Grand Jury 2005-2006 Page 19 of 64 Response Required Mendocino County Board of Supervisors (Recommendation 2) Mendocino County Chief Executive Officer (Recommendation 2) Board of Directors, Piercy Fire Protection District (Findings 1-13, Recommendation 1) Chief, Piercy Fire Protection District (Findings 1-13, Recommendation 1) Mendocino County Grand Jury 2005-2006 Page 20 of 64 A LONG ROAD FOR LEGGETT: A Report On The Leggett Valley Fire Protection District April 6, 2006 Summary The 2005-2006 Mendocino County Grand Jury conducted an oversight of the Leggett Valley Fire Protection District. The Grand Jury found that the district was burdened by the problems of limited funding and support.
• CO6
  Lack of community support is the most critical issue facing the LVFPD. The Grand Jury found that while offers of support are received by the department, few of these result in real assistance. Lack of economic opportunity in the north central portion of Mendocino County results in few people being able and/or willing to participate in the fire department. Most people work out of the area and so are unable to respond to calls during the day or to participate in the extensive training required of department personnel. The majority of older residents in the Leggett area have already served in the fire department and are unwilling or unable to do so again. This leaves primarily younger residents as the volunteer pool, most of whom do not have the time. The chief is the operational head of the department. Making the office of chief a paid position will alleviate some of the pressure on him, allowing him to devote a portion of his time to the behind-the-scenes department business like grant writing and community outreach efforts. It is very difficult to hold a fulltime job and carry out the duties of the chief. County government also has a role to play. Only it can address the lack of economic opportunity in the Leggett area; only if people are able to live and work in the area can the fire department be viable in the long term. Response Required Mendocino County Board of Supervisors (Finding 19, Recommendation 6) Mendocino County Chief Executive Officer (Recommendation 6) Board of Directors, Leggett Valley Fire Protection District (Findings 1-18, Recommendations 1-5) Chief, Leggett Valley Fire Protection District (Findings 1-18, Recommendations 2, 3, 5) Mendocino County Grand Jury 2005-2006 Page 22 of 64 A CROSSROADS AT COMPTCHE: A Report on the Comptche Volunteer Fire Department April 6, 2006 Summary The 2005/2006 Mendocino County Grand Jury conducted an oversight of the Comptche Volunteer Fire Department. While the Department faces many challenges in the future, none of these are insurmountable.
• CO7
  The CVFD provides a vital service to both the Comptche area and the County as a whole. In a mutually beneficial relationship, employers in Comptche provide a pool for volunteer firefighters and thereby promote public safety for themselves and the entire community. It is in the best interests of the County to support the CVFD as well as local employers. The CVFD is staffed entirely by volunteers who cover out of their own pockets expenses incurred while on a call. In addition to the monetary costs associated with volunteering to serve in the CVFD, the chief also has the burden of responsibility for any accidents or problems which occur in the Department. Making the office of chief a paid position will alleviate some of the pressure on him, allowing him to devote a portion of his time to behind-the-scenes department business like grant writing and community outreach efforts. Some of the Department’s equipment was obtained through the FEPP program, which provides a vital and much needed source of equipment for small rural fire departments. FEPP requires that unserviceable or excess equipment initially acquired through the program be disposed of only through a long and complicated process which involves considerable time and paperwork to complete. Due to already high workloads, this process is often low on the list of priorities for a department. Some of the currently active equipment is on the verge of becoming unserviceable and will need to be stored. The only solution to this dilemma is to proceed through the disposal process before storage becomes a serious problem for the Department. Further information on the FEPP program can be found at http://www.fs.fed.us/fire/partners/fepp/. The CVFD’s high level of community support is demonstrated by the fact that appreciative local residents donated much of the work and materials needed to expand the station in Comptche. Response Required Board of Directors, Comptche Community Services District (Findings 1-14, Recommendations 1-4) Chief, Comptche Fire Department (Findings 5-14, Recommendations 2-4) Mendocino County Grand Jury 2005-2006 Page 24 of 64 A BRIGHT SPOT IN BOONVILLE: Error! Bookmark not defined.A Report on the Anderson Valley Fire Department April 6, 2006 Summary The 2005/2006 Mendocino County Grand Jury conducted an oversight of the Anderson Valley Fire Department, and found it to be in notably good condition.
• CO8
  With the exception of the chief’s position, the AVFD is staffed entirely by volunteers. The department provides volunteers with a pair of firefighter’s boots when they join the department. A stipend of $8.00 per call is intended to provide the volunteers with enough money to replace their boots when they are no longer serviceable. Volunteers cover out of their own pockets expenses incurred while on a call. Much of the department’s equipment was obtained through the FEPP program, which provides a vital and much needed source of equipment for small rural fire departments. FEPP requires that unserviceable or excess equipment initially acquired through the program only be disposed of through a long and complicated process which involves considerable time and paperwork to complete. Due to already high workloads, this process is often low on the list of priorities for a department. Not surprisingly, the AVFD has several vehicles which are no longer serviceable and are currently stored in various locations within the district. Some of the currently active equipment is on the verge of becoming unserviceable and will also need to be stored. The only solution to this problem is to proceed through the disposal process before storage becomes a serious problem for the District. Further information on the FEPP program can be found at http://www.fs.fed.us/fire/partners/fepp/. The AVFD currently enjoys an unusually high level of community support. Appreciative local residents performed much of the construction on the new station in Boonville. Response Required Board of Directors, Anderson Valley Community Services District (Findings 1-15, Recommendations 1-2) Chief, Anderson Valley Fire Department (Findings 6-15, Recommendations 1-2) Mendocino County Grand Jury 2005-2006 Page 26 of 64 MENDOCINO COUNTY JAIL, COURTHOUSE HOLDING CELLS, AND EVIDENCE ROOM March 20, 2006 SUMMARY In accordance with duties required, the Mendocino County Grand Jury visited the Mendocino County Jail, Mendocino County Courthouse Holding Cells, and the Mendocino County Evidence Room.
• CO9
  The Grand Jury commends the staff of the Mendocino County Jail for the tremendous work they do in maintaining a safe environment for the staff and inmates. The challenges are enormous considering the poor condition of the antiquated facilities in which they have to work. The creation of a Criminal Justice Policy Task Force, though long overdue, gives reason to expect positive change in a system badly in need of improvement.
• CO10
  A fully staffed Willits Police Department would ensure an increase in safety and protection. Response Required Willits City Council (all findings and recommendations) Willits City Manager (all findings and recommendations) Chief, Willits Police Department (all findings and recommendations) Mendocino County Grand Jury 2005-2006 Page 31 of 64 STRETCHED TO THE LIMIT: Non-Profit Social Service Providers in Mendocino County May 4, 2006 Summary As part of an ongoing survey of Mendocino County health and human services and to determine the extent to which homeless and other needy citizens are able to receive assistance, the Grand Jury undertook an assessment of four non-profit agencies. The Ford Street Project, Plowshares, Project Sanctuary, and the Ukiah Community Center/Food Bank serve to provide a safety net for people in need or in crisis in this County. In times of financial cutbacks in Mendocino County, the demand for the services provided by these agencies rises drastically while their funding is cut back.
• CO11
  The Domino Effect. These four agencies are interdependent and provide complementary services. If one has a shortfall of funds and subsequently cuts back on services, this reduction may adversely impact the other agencies and the services they provide. The four non-profit agencies described in this report are among the largest and most Mendocino County Grand Jury 2005-2006 Page 36 of 64 visible of many such organizations that care for the needy and distressed members of our community. Their employees, their volunteers and their boards of directors provide assistance that is both deeply compassionate and unarguably necessary. If it were not for them, local government would be expected to bear even more of the burden than it already does. The quality of life in the county depends in no small measure on the work of these agencies. These financially strapped non-profits help the citizens of our county at a cost far below what a County government agency would require. Moreover, as these agencies have been forced to reduce services, government has not filled the vacuum. With the wholehearted support of the community in the form of money and time, the vital work of these agencies can continue. Response Required Mendocino County Board of Supervisors, (Findings 28. 30-34, 38, 41, Recommendations 1, 3, 4) Response Requested Director, Ford Street Project (Findings 1-3, 25-41) Director, Plowshares (Findings 4-9, 25-41) Director, Project Sanctuary (Findings 10-13, 25-41) Director, Ukiah Community Center/Food Bank (Findings 15-41) Mendocino County Grand Jury 2005-2006 Page 37 of 64 : TOO MANY CHIEFS A Report on the Mendocino County Clerk of the Board Office May 4, 2006 Summary The 2005-2006 Mendocino County Grand Jury investigated the Clerk of the Board office, its structure, and its supervision by the Board of Supervisors (BOS).
• CO12
  The overwhelming workload currently borne by the COB office is a result of the failure on the part of the BOS to provide effective oversight. For its own reasons the BOS chose to keep the COB under its control, but all observers and participants agree that politics and personalities have played a major role in this decision. Giving responsibility for supervision to the CEO’s office, as is the case for most other County departments, may remove the COB from the political arena.
• CO13
  As long as there is widespread tolerance among the general public for dangerous drug use, the efforts of law enforcement and drug prevention agencies will be ineffective. The complexities involved in establishing an effective medical marijuana policy further muddy these waters. The leaders in this County, both public and private, need to communicate clearly the realities of dangerous drug use. The public needs also to recognize that the costs of methamphetamine use extend far beyond the immediate consequences to the individual user. That user may be a burden to the community for the rest of his or her life. The family, particularly the children, of that user is at risk for physical, financial and emotional damage for years to come. Mendocino County Grand Jury 2005-2006 Page 43 of 64
• CO14
  Measure S funds have made it possible to provide additional Patrol Officers. This increase in staff benefits both UPD and the City of Ukiah. Mendocino County Grand Jury 2005-2006 Page 45 of 64 Response Required Ukiah City Council (All findings and Recommendation 1) Ukiah City Manager (All findings and Recommendation 1) Ukiah Police Chief (All findings and Recommendation 1) Mendocino County Grand Jury 2005-2006 Page 46 of 64 WATER, WATER EVERYWHERE, but...: a Report on Mendocino County Water Districts May 4, 2006 Summary As part of its obligation to conduct periodic reviews of County Special Districts, the Grand Jury performed an oversight of Water Districts as they impact water resources within the County, focusing primarily on those water agencies and special districts in Ukiah Valley and Potter Valley, their available water supply, their plans, and their ability to respond to emergencies and major water shortfalls.
• CO15
  Historically, instead of using a unified consensual approach, various County Water Districts have been embroiled in continual squabbles and infighting, petty territorial and philosophical conflicts, and competition, typically without accomplishing any meaningful results except to generate extraordinarily high legal costs for all involved. Strategic planning must be done now rather than waiting until a crisis develops. The process of developing new supplies in the face of ever increasing demand will be difficult and time-consuming, especially if there is a material decrease in imports from the Eel River Diversion. Additionally, the potential impact of a typical multi-year drought, as well as outside restrictions on Russian River water use, requires immediate and serious attention to both short and long range strategies. The Municipal Service Review of the Ukiah Valley/Russian River Watershed currently being written for the Local Area Formation Commission (LAFCO) may shed more light on the issues of water resources in the UV/PV area. A properly organized, single entity dealing with UV/PV area water issues can provide the appropriate direction and leadership for smaller independent agencies and special districts to follow in addressing and solving mutual water problems. There must be a top-down political will to accomplish any multi-agency unification among the various agencies and special districts, with the assistance of LAFCO. The agencies and special districts must be committed to the benefits of unification and consensus. Agencies and special districts should retain their individual water rights even as they work together. The BOS needs to play a pivotal role in the development of this political will and consensus among the diverse independent water entities within UV/PV. Beyond that, citizen involvement and engagement in development of this political will is equally essential. Because water development, improvement and infrastructure require large financial Mendocino County Grand Jury 2005-2—6 Page 52 of 64 resources, a unified entity can better provide the financial leadership needed to negotiate with financial institutions about bond issues, as well as to negotiate with political groups and elected officials concerning revenues. Outside entities such as several State and Federal agencies, ACE and SCWA require an effective County negotiator. A single unified entity would provide a coherent and knowledgeable negotiating force.
• CO16
  Mendocino County is not alone in facing the issue of affordability of its pension plans; there is now a considerable national debate going on about this problem. Issued in order to pay current obligations and expenses, the POB must be paid. The current obligation is the present value of future promised retirement payments. In accounting, this is a very real current expense that is no different from salaries or office equipment. Publication of County pension fund numbers are not conveniently summarized in one document but are found in portions of several documents. The reasons for separating the calculations of County and MCERA operations may be sound accounting, but their financial results should be combined and made available for easier public understanding. Appendix C, Table 1 presents important numbers supplied by county officials for the Grand Jury’s oversight. The charts shown in Figures 1, 2 and 3 depict some of this data as well. Responses Required: Mendocino County Board of Supervisors (All Findings and Recommendations) CEO, Mendocino County (All Findings and Recommendations) Mendocino County Auditor/Controller (All Findings and Recommendations) Mendocino County Treasurer/Tax Collector (All Findings and Recommendations) Mendocino County Employee Retirement Association (All Findings and Recommendations) Mendocino County Department of Human Resources (Findings 5, 6, 11, 16, 17, Recommendation 4) Appendix A – Definitions Makeup of the Mendocino County Employee Retirement Association (MCERA) Board -- four non-County government individuals appointed by the Board of Supervisors (which has the option of appointing one of its own), two members of the Retirement Association elected by general members, one retired member elected by retirement members, one Safety member elected by Safety members, and one ex- officio, who is the Retirement Administrator/County Treasurer. AAL (Actuarial Accrued Liability) – the portion, as determined by a particular cost Mendocino County Grand Jury 2005-2—6 Page 57 of 64 method, of the total present value of benefits (the plan's current and expected benefits payments plus administrative expenses) that is attributable to past service credit. Imagine a planned schedule of future payments for every covered employee, and then back-calculate the present value of all those monthly checks when added together. This gives the Actuarial Accrued Liability (AAL) for the MCERA pension plan. It is called Actuarial because it incorporates statistical employee lifetimes and averages of financial performance in this calculation. The liabilities that MCERA has are the value of all the pension promises made to employees and to current retirees. Its result is in present dollars. The AAL for Mendocino County as of June 30, 2005 was $289,467,000.6 VA (Valuation Assets) – equal to the actual pension reserves held by MCERA. As of June 30, 2005, the valuation assets were $253,487,000.6 (UAAL) Unfunded Actuarial Accrued Liability – the difference between a fund's Actuarial Accrued Liability (AAL) and its current assets. If a fund's Actuarial Accrued Liability (AAL) exceeds its current assets, then the fund has a shortfall that is known as an Unfunded Actuarial Accrued Liability (UAAL). This shortfall is the difference between what the fund has on hand (on the books) right now and what is expected to be needed to pay current and future benefits. As of June 30, 2005, Mendocino County had a UAAL of $35,980,000.6 AAL - VA = UAAL $289,467,000 - $253,487,000 = $35,980,000. In other words, the UAAL is the shortfall the fund would face if its assets were liquidated and the present value of the benefits was paid today. Although the UAAL represents a shortfall in assets relative to liabilities, it does not represent a cash loss because, in reality, the fund is not liquidating nor are all benefits and costs due today. The UAAL is calculated yearly and reported by MCERA. In accordance with the funding agreement between the County and the Employees' Retirement Association, the County is required to amortize the portion of the UAAL that is in excess of the target balance equal to 10% of the total AAL. The County is required to fund any excess UAAL under the terms of the funding agreement. Smoothing -- the difference between the expected and actual investment returns, after expenses, spread over five years (only 20% is recognized for any one year). This method took effect as of June 30, 2005. AVA (Actuarial Value of Assets) – the smoothed value of assets. These assets are 6 Mendocino County Employees' Retirement Association - Report on the Actuarial Valuation as of June 30, 2005 Page 4 6 Mendocino County Employees' Retirement Association - Report on the Actuarial Valuation as of June 30, 2005 Page 4 Mendocino County Grand Jury 2005-2—6 Page 58 of 64 called Actuarial Value of Assets because they are calculated from the present market or paper value by a 5-year smoothing process intended to average out yearly investment return variations. Note that the AVA is in current dollars. As of June 30, 2005, the Actuarial Value of Assets was $273,884,295.7 POB (Pension Obligation Bonds) – bonds that may be issued by state or local governments to reduce their UAAL as a part of an overall strategy for managing pension costs. From a purely financial perspective, issuing pension obligation bonds can reduce expenses and even produce savings for a government if the interest rate paid on the bonds is less than the rate of return earned on proceeds placed in the pension plan. Pension Obligation Bonds must be issued on a taxable basis because current federal tax law restricts the investment of the proceeds of tax-exempt bonds in higher-yielding taxable securities. Pension Obligation Bonds are a legal debt of the County, and have required payment schedules for principal and interest. Governments issuing pension obligation bonds must be aware of the risks involved with these instruments and must manage these risks. Appendix B – Pension Obligation Bond Details On December 19, 1996, Mendocino County issued $30,720,000 in Taxable Pension Obligation Bonds (POB). Payments were due July 1st in estimated annual principal installments of $1,655,000, increasing to $4,770,000 in the year 2009, at variable interest rates with interest payable semiannually on July 1st and January 1st at rates ranging from 5.54% to 6.97%. Final maturity would have been July 1, 2009. By 2002, the increase in AAL and a reduced VA resulted in a UAAL of $68,768,000. When interest rates were low, the County on December 12, 2002 issued $91,945,000 in Taxable Pension Obligation Bonds Refunding, Series 2002 to allow the County to fund the residual portion of its UAAL toward retirement benefits for County employees. The amount being funded with proceeds of the 2002 Bonds equals the present value of the payments the County would otherwise be required to make to amortize the current UAAL, discounted at the Retirement Association's actuarially assumed earnings rate of 8%. Estimated annual principal installments are due on July 1 of each year, starting at $885,000 and increasing to $7,560,000 in the year 2026, with variable interest rates with interest payable semiannually on July 1st and January 1st at rates ranging from 2.07% to 5.00%. Final maturity is July 1, 2026. This bond issue includes proceeds sufficient to defease approximately 50% of each maturity of the $23,795,000 outstanding principal amount of the original 1996 taxable Pension Obligation Bonds. The amount of principal defeased was $11,245,000 and the 7 Mendocino County Employees' Retirement Association - Report on the Actuarial Valuation as of June 30, 2005 Page 31 Mendocino County Grand Jury 2005-2—6 Page 59 of 64 interest was $3,911,938, totaling $15,156,938. By refunding and defeasing the 1996 bonds, the County has restructured the amortization schedule of its outstanding debt so as to achieve a more level annual debt service pattern.8 8 Mendocino County Final Budget for Fiscal Year 2004-2005 Page 471 http://www.co.mendocino.ca.us/auditor/budget/04-05/ Mendocino County Grand Jury 2005-2—6 Page 60 of 64 Appendix C — Financial Charts and Table Historical Change of County Debt Obligations for Retirement -- POB, UAAL, & Total Total = Unfunded Liability + POB Balance $150 $140 $130 $120 $110 $100 $90 $80 $70 $60 $50 $40 $30 $20 $10 $0 1990/1991 1991/1992 1992/1993 1993/1994 1994/1995 1995/1996 1996/1997 1997/1998 1998/1999 1999/2000 2000/2001 2001/2002 2002/2003 2003/2004 2004/2005 snoilliM End of Fiscal Year stbeD tnemeriteR MCERA Unfunded Actuarial Accrued Liabilities (UAAL) Pension Obligation Bonds Remaining Loan Balance (POB) Total Retirement Debt Chart 1 -- Historical Change of County Debt Obligations for Retirement Page 61 of 64 2005-2006 Mendocino County Grand Jury Yearly Change in Unfunded Actuarial Accrued Liability (UAAL) (Current Year) - (Previous Year) $30 $20 $10 $0 ($10) ($20) ($30) ($40) ($50) ($60) ($70) snoilliM 1991/1992 1992/1993 1993/1994 1994/1995 1995/1996 1996/1997 1997/1998 1998/1999 1999/2000 2000/2001 2001/2002 2002/2003 2003/2004 2004/2005 Chart 2 -- Yearly Change in Unfunded Actuarial Accrued Liability (UAAL) Page 62 of 64 2005-2006 Mendocino County Grand Jury Historical Growth of Actuarial Accrued Liabilities (AAL) AAL = AV + UAAL $325 $300 $275 $250 $225 $200 $175 $150 $125 $100 $75 $50 $25 $0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 9 9 9 9 9 9 9 9 9 0 0 0 0 0 0 9 9 9 9 9 9 9 9 9 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 0/ 1/ 2/ 3/ 4/ 5/ 6/ 7/ 8/ 9/ 0/ 1/ 2/ 3/ 4/ 9 9 9 9 9 9 9 9 9 9 0 0 0 0 0 9 9 9 9 9 9 9 9 9 9 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 snoilliM Fiscal Year End )LAA( seitilibaiL deurccA lairautcA latoT MCERA Unfunded Actuarial Accrued Liabilities (UAAL) Total MCERA Valuation Assets (AV) Chart 3 -- Historical Growth of Actuarial Accrued Liabilities (AAL) Historical Values of Key Retirement Funding Data Page 63 of 64 2005-2006 Mendocino County Grand Jury A B C D E F H I J MCERA Total MCERA Total MCERA Unfunded Pension Obligation MCERA Unfunded Actuarial Percentage of Yearly Change Ending Budget Valuation Actuarial Bonds Remaining Actuarial Accrued Total Retirement Accrued UAAL that is in UAAL Year Assets Accrued Loan Balance Liabilities Debt Liabilities Unfunded Col-D (AV) Liabilities (POB) (UAAL) (AAL) (UAAL) Retirement Audit Retirement Audit RetirementAudit Calculated Calculated Retirement Audit Calculated Source: Report Report Report Col-D/Col-B CurYr - PrvYr County Audit Report Report Col-H + Col-I 1990/1991 $85,604,000 $60,431,000 $25,173,000 29.406% 0 $25,173,000 $25,173,000 1991/1992 $94,761,000 $64,947,000 $29,814,000 31.462% $4,641,000 0 $29,814,000 $29,814,000 1992/1993 $105,866,000 $72,062,000 $33,804,000 31.931% $3,990,000 0 $33,804,000 $33,804,000 1993/1994 $112,535,000 $75,976,000 $36,559,000 32.487% $2,755,000 0 $36,559,000 $36,559,000 1994/1995 $121,027,000 $79,322,000 $41,705,000 34.459% $5,146,000 0 $41,705,000 $41,705,000 1995/1996 $130,036,000 $84,992,000 $45,044,000 34.640% $3,339,000 $30,720,000 $45,044,000 $75,764,000 1996/1997 $140,783,000 $124,286,000 $16,497,000 11.718% ($28,547,000) $30,405,000 $16,497,000 $46,902,000 1997/1998 $154,263,000 $134,836,000 $19,427,000 12.593% $2,930,000 $29,685,000 $19,427,000 $49,112,000 1998/1999 $173,250,000 $142,775,000 $30,475,000 17.590% $11,048,000 $28,780,000 $30,475,000 $59,255,000 1999/2000 $185,423,000 $150,056,000 $35,367,000 19.074% $4,892,000 $27,375,000 $35,367,000 $62,742,000 2000/2001 $204,699,000 $157,545,000 $47,154,000 23.036% $11,787,000 $25,720,000 $47,154,000 $72,874,000 2001/2002 $226,883,000 $158,115,000 $68,768,000 30.310% $21,614,000 $23,795,000 $68,768,000 $92,563,000 2002/2003 $243,342,000 $233,764,000 $9,578,000 3.936% ($59,190,000) $104,495,000 $9,578,000 $114,073,000 2003/2004 $265,141,000 $239,191,000 $25,950,000 9.787% $16,372,000 $102,270,000 $25,950,000 $128,220,000 2004/2005 $289,467,000 $253,487,000 $35,980,000 12.430% $10,030,000 $99,930,000 $35,980,000 $135,910,000 2005/2006 Data came from MCERA - Benefit Changes by Bar- $97,475,000 2006/2007 gaining Unit Presented to BOS Workshop 16 Aug 2005 $94,890,000 Table 1 – Historical Values of Key Retirement Funding Data Page 64 of 64 2005-2006 Mendocino County Grand Jury

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