ozaukee co $7.150 ref bonds fos 01092015 · 2017 35,000 2.00 0.80 JY3 2024 695,000 3.00 1.85 KF2 2018 35,000 2.00 1.00 JZ0 2025 725,000 3.00 2.00 KG0 2019 580,000 3.00 1.10 KA3 2026

FINAL OFFICIAL STATEMENT DATED JANUARY 9, 2015

NEW ISSUE Moody’s Rated “Aaa” Bank-Qualified (See "RATING" herein) In the opinion of Quarles & Brady LLP, Bond Counsel, assuming continued compliance with the requirements of the Internal Revenue Code of 1986, as amended, under existing law interest on the Bonds is excludable from gross income and is not an item of tax preference for federal income tax purposes. The Bonds are designated as “qualified tax-exempt obligations”. See "TAX EXEMPTION" herein for a more detailed discussion of some of the federal income tax consequences of owning the Bonds. The interest on the Bonds is not exemp2/2/t from present Wisconsin income or franchise taxes.

$7,150,000 OZAUKEE COUNTY, WISCONSIN

General Obligation Refunding Bonds Dated: February 2, 2015 Due: March 1, 2015 - 2028 The $7,150,000 General Obligation Refunding Bonds (the "Bonds") will be dated February 2, 2015, and will be in the denomination of $5,000 each or any multiple thereof. The Bonds will mature serially on March 1 of the years 2015 through 2028. Interest on the Bonds will be payable commencing on March 1, 2015 and semi-annually thereafter on September 1 and March 1 of each year. Associated Trust Company, National Association, Green Bay, Wisconsin, will serve as escrow agent for the Bonds.

MATURITY SCHEDULE

(March 1) Amount Rate Yield

CUSIP(1) Base

692668 (March 1) Amount Rate Yield

CUSIP(1)

Base 692668

2015 $165,000 2.00% 0.30% JW7 2022 $645,000 3.00% 1.65% KD7 2016 35,000 2.00 0.50 JX5 2023 670,000 3.00 1.75 KE5 2017 35,000 2.00 0.80 JY3 2024 695,000 3.00 1.85 KF2 2018 35,000 2.00 1.00 JZ0 2025 725,000 3.00 2.00 KG0 2019 580,000 3.00 1.10 KA3 2026 750,000 3.50 2.10 KH8 2020 600,000 3.00 1.30 KB1 2027 780,000 3.50 2.20 KJ4 2021 620,000 3.00 1.45 KC9 2028 815,000 3.50 2.30 KK1

The Bonds are being issued pursuant to Chapter 67 of the Wisconsin Statutes. The Bonds will be general obligations of Ozaukee County, Wisconsin (the "County") for which its full faith and credit and taxing powers are pledged which taxes may, under current law, be levied without limitation as to rate or amount. The proceeds from the sale of the Bonds will be used for the public purpose of advance refunding certain outstanding obligations of the County. (See "THE FINANCING PLAN" herein.) The Bonds maturing March 1, 2024 and thereafter are subject to call and prior redemption on March 1, 2023 or any date thereafter, in whole or in part, from maturities selected by the County and by lot within each maturity at par plus accrued interest to the date of redemption. (See “REDEMPTION PROVISIONS” herein.)

The Bonds will be issued only as fully registered Bonds and will be registered in the name of CEDE & CO. as nominee of The Depository Trust Company, New York, New York ("DTC"). DTC will act as the securities depository of the Bonds. Individual purchases will be made in book-entry form only in denominations of $5,000 principal amount or any integral multiple thereof. Purchasers of the Bonds will not receive certificates representing their interest in the securities purchased. (See "BOOK-ENTRY-ONLY SYSTEM" herein.) The County’s Bonds are offered when, as and if issued subject to the approval of legality by Quarles & Brady LLP, Milwaukee, Wisconsin, Bond Counsel. The anticipated settlement date for the Bonds is on or about February 2, 2015.

BAIRD (1)CUSIP® is a registered trademark of the American Bankers Association. CUSIP Global Services (CGS) is managed on behalf of the American Bankers Association by S&P Capital IQ. Copyright© 2015 CUSIP Global Services. All rights reserved. CUSIP® data herein is provided by CUSIP Global Services. This data is not intended to create a database and does not serve in any way as a substitute for services provided by CGS. CUSIP® numbers are provided for convenience of reference only. None of the County, the Underwriter or their agents or counsel assume responsibility for the accuracy of such numbers.

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OZAUKEE COUNTY

Wisconsin

COUNTY BOARD OF SUPERVISORS

Lee Schlenvogt, Chairperson

Richard H. Bauzenberger, Supervisor Paul Melotik, Supervisor Dan Becker, Supervisor Richard C. Nelson, Supervisor Richard A. Dieffenbach, Supervisor Thomas H. Richart, Supervisor Donald G. Dohrwardt, Supervisor Steven Rishel, Supervisor Kathlyn T. Geracie, Supervisor Jennifer K. Rothstein, Supervisor Tom Grabow, Supervisor John J. Slater, Supervisor LeRoy C. Haeuser, Supervisor Glenn F. Stumpf, Supervisor David Henrichs, Supervisor Justin V. Strom, Supervisor Karl V. Hertz, Supervisor Gerald E. Walker, Supervisor Barbara J. Jobs, Supervisor Thomas E. Winker, Supervisor Donald Korinek, Supervisor Gustav W. Wirth, Jr., Supervisor David L. Larson, Supervisor Vacant, Supervisor Irena Macek, Supervisor

ADMINISTRATION

Thomas W. Meaux, County Administrator Andrew J. Lamb, Finance Director

Julianne B. Winkelhorst, County Clerk* Karen L. Makoutz, County Treasurer*

PROFESSIONAL SERVICES

Corporation Counsel: Rhonda K. Gorden, Port Washington, Wisconsin

Underwriter: Robert W. Baird & Co., Milwaukee, Wisconsin

Bond Counsel: Quarles & Brady LLP, Milwaukee, Wisconsin

Paying Agent Contact: County Treasurer, Ozaukee County, Wisconsin**

Escrow Agent: Associated Trust Company, National Association, Green Bay, Wisconsin

Mathematical Verification: Grant Thornton LLP, Minneapolis, Minnesota.

*Elected official, terms expire January 4, 2017. **Karen L. Makoutz is the contact for any paying agent matters.

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REGARDING USE OF THIS OFFICIAL STATEMENT This Official Statement is being distributed in connection with the sale of the Bonds referred to in this Official Statement and may not be used, in whole or in part, for any other purpose. No dealer, broker, salesman or other person is authorized to make any representations concerning the Bonds other than those contained in this Official Statement, and if given or made, such other information or representations may not be relied upon as statements of the Ozaukee County, Wisconsin (the "County"). This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Bonds by any person in any jurisdiction in which it is unlawful to make such an offer, solicitation or sale. Unless otherwise indicated, the County is the source of the information contained in this Official Statement. Certain information in this Official Statement has been obtained by the County or on its behalf from The Depository Trust Company and other non-County sources that the County believes to be reliable. No representation or warranty is made, however, as to the accuracy or completeness of such information. Nothing contained in this Official Statement is a promise of or representation by Robert W. Baird & Co. Incorporated (the "Underwriter"). The Underwriter has provided the following sentence for inclusion in this Official Statement. The Underwriter has reviewed the information in this Official Statement in accordance with, and as part of, its responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such information. The information and opinions expressed in this Official Statement are subject to change without notice. Neither the delivery of this Official Statement nor any sale made under this Official Statement shall, under any circumstances, create any implication that there has been no change in the financial condition or operations of the County or other information in this Official Statement, since the date of this Official Statement. This Official Statement contains statements that are “forward-looking statements” as that term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. When used in this Official Statement, the words “estimate,” “intend,” “project” or “projection,” “expect” and similar expressions are intended to identify forward-looking statements. Forward-looking statements are subject to risks and uncertainties, some of which are discussed herein, that could cause actual results to differ materially from those contemplated in such forward-looking statements. Investors and prospective investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this Official Statement. This Official Statement should be considered in its entirety. No one factor should be considered more or less important than any other by reason of its position in this Official Statement. Where statutes, ordinances, reports or other documents are referred to in this Official Statement, reference should be made to those documents for more complete information regarding their subject matter. The Bonds will not be registered under the Securities Act of 1933, as amended, or the securities laws of any state of the United States, and will not be listed on any stock or other securities exchange. Neither the Securities and Exchange Commission nor any other federal, state, municipal or other governmental entity shall have passed upon the accuracy or adequacy of this Official Statement. IN CONNECTION WITH THE OFFERING OF THE BONDS, THE UNDERWRITER MAY OR MAY NOT OVERALLOT OR EFFECT TRANSACTIONS THAT STABILIZE OR MAINTAIN THE MARKET PRICES OF THE BONDS AT LEVELS ABOVE THOSE WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME WITHOUT NOTICE. THE PRICES AND OTHER TERMS RESPECTING THE OFFERING AND SALE OF THE BONDS MAY BE CHANGED FROM TIME TO TIME BY THE UNDERWRITER AFTER THE BONDS ARE RELEASED FOR SALE AND THE BONDS MAY BE OFFERED AND SOLD AT PRICES OTHER THAN THE INITIAL OFFERING PRICES, INCLUDING SALES TO DEALERS WHO MAY SELL THE BONDS INTO INVESTMENT ACCOUNTS.

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TABLE OF CONTENTS

Page COUNTY BOARD OF SUPERVISORS ..................................................................................................................... 2 ADMINISTRATION .................................................................................................................................................... 2 PROFESSIONAL SERVICES ................................................................................................................................... 2 REGARDING USE OF THIS OFFICIAL STATEMENT ............................................................................................. 3 SUMMARY ................................................................................................................................................................ 5 INTRODUCTORY STATEMENT ............................................................................................................................... 6 THE FINANCING PLAN ............................................................................................................................................ 6 REDEMPTION PROVISIONS ................................................................................................................................... 6 ESTIMATED SOURCES AND USES ........................................................................................................................ 6 CONSTITUTIONAL AND STATUTORY CONSIDERATIONS AND LIMITATIONS CONCERNING THE   COUNTY'S POWER TO INCUR INDEBTEDNESS ................................................................................................ 7 THE RESOLUTION ................................................................................................................................................... 7 PROPERTY TAX LEVY LIMITS ................................................................................................................................ 8 SALES TAXES .......................................................................................................................................................... 9 OZAUKEE COUNTY ................................................................................................................................................. 9 GENERAL INFORMATION ..................................................................................................................................... 11 DEMOGRAPHIC AND ECONOMIC INFORMATION .............................................................................................. 12 TAX LEVIES, RATES AND COLLECTIONS ........................................................................................................... 13 EQUALIZED VALUATIONS .................................................................................................................................... 14 EQUALIZED VALUE BY CLASS OF PROPERTY .................................................................................................. 15 INDEBTEDNESS OF THE COUNTY ...................................................................................................................... 16 FINANCIAL INFORMATION .................................................................................................................................... 18 GENERAL FUND SUMMARY FOR THE YEARS ENDED DECEMBER 31 ........................................................... 19 UNDERWRITING .................................................................................................................................................... 20 TAX EXEMPTION .................................................................................................................................................... 20 DESIGNATION AS QUALIFIED TAX-EXEMPT OBLIGATIONS ............................................................................ 21 CONTINUING DISCLOSURE ................................................................................................................................. 21 BOOK-ENTRY-ONLY SYSTEM .............................................................................................................................. 22 RATING ................................................................................................................................................................... 23 LITIGATION ............................................................................................................................................................. 23 LEGAL MATTERS ................................................................................................................................................... 24 MUNICIPAL BANKRUPTCY ................................................................................................................................... 24 MATHEMATICAL VERIFICATION .......................................................................................................................... 24 MISCELLANEOUS .................................................................................................................................................. 25 AUTHORIZATION ................................................................................................................................................... 25  Appendix A: Basic Financial Statements and Related Notes for the Year Ended December 31, 2013 Appendix B: Form of Continuing Disclosure Certificate Appendix C: Form of Legal Opinion

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SUMMARY County: Ozaukee County, Wisconsin. Issue: $7,150,000 General Obligation Refunding Bonds. Dated Date:

February 2, 2015.

Interest Due:

Commencing on March 1, 2015 and on each September 1 and March 1 thereafter. Interest on the Bonds will be computed on the basis of a 30-day month and a 360-day year.

Principal Due:

March 1 of the years 2015 through 2028.

Redemption Provision:

The Bonds maturing on and after March 1, 2024 shall be subject to call and prior payment on March 1, 2023 or on any date thereafter at par plus accrued interest. The amounts and maturities of the Bonds to be redeemed shall be selected by the County. If less than the entire principal amount of any maturity is to be redeemed, the Bonds of that maturity which are to be redeemed shall be selected by lot. Notice of such call shall be given by sending a notice thereof by registered or certified mail, facsimile or electronic transmission, overnight express delivery, or in any other manner required by DTC not less than thirty (30) days nor more than sixty (60) days prior to the date fixed for redemption to the registered owner of each Bond to be redeemed at the address shown on the registration books. (See “REDEMPTION PROVISIONS” herein.)

Security: The full faith, credit and resources of the County are pledged to the payment of the principal of and the interest on the Bonds as the same become due and, for said purposes, there are levied on all the taxable property in the County, direct, annual irrepealable taxes in each year and in such amounts which will be sufficient to meet such principal and interest payments when due. Under current law, such taxes may be levied without limitation as to rate or amount.

Purpose:

The proceeds from the sale of the Bonds will be used for the public purpose of advance refunding certain outstanding obligations of the County. (See "THE FINANCING PLAN" herein.)

Tax Status: Interest on the Bonds is excludable from gross income for federal income tax purposes. (See "TAX EXEMPTION" herein.)

Bank Qualification:

The Bonds are designated as "qualified tax-exempt obligations."

Credit Rating: This issue has been assigned a “Aaa” rating by Moody’s Investors Service, Inc. (See "RATING" herein.)

Record Date: The 15th day of the calendar month next preceding each interest payment date.

Information set forth on this page is qualified by the entire Official Statement. A full review of the entire Official Statement should be made by potential investors.

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INTRODUCTORY STATEMENT

This Official Statement presents certain information relating to Ozaukee County, Wisconsin (the "County" and the "State" respectively) in connection with the sale of the County's $7,150,000 General Obligation Refunding Bonds (the "Bonds"). The Bonds are issued pursuant to the Constitution and laws of the State and the resolution (the "Resolution") adopted by the County Board of Supervisors and other proceedings and determinations related thereto. All summaries of statutes, documents and the Resolution contained in this Official Statement are subject to all the provisions of, and are qualified in their entirety by reference to such statutes, documents and the Resolution, and references herein to the Bonds are qualified in their entirety by reference to the form thereof included in the Resolution. Copies of the Resolution may be obtained from the Underwriter upon request.

THE FINANCING PLAN The Bonds will be issued for the purpose of advance refunding a portion of the following issue (the “Prior Issue”): Issue

Original Amount

Call Price

Call Date

Maturities to be

Refunded

Amount of Principal Refunded

Balance after Refunding (2/2/2015)

General Obligation County Building Bonds Dated: December 4, 2008 $10,000,000 100% 3/1/2018 2019-2028 $6,870,000 $1,920,000 Proceeds of the Bonds will be irrevocably deposited in an escrow account, invested in U.S. Government Securities and used to advance refund a portion of the Prior Issue. See "MATHEMATICAL VERIFICATION" herein.

REDEMPTION PROVISIONS Optional Redemption The Bonds maturing March 1, 2024 and thereafter are subject to call and prior redemption on March 1, 2023 or any date thereafter, in whole or in part, from maturities selected by the County and by lot within each maturity at par plus accrued interest to the date of redemption.

ESTIMATED SOURCES AND USES

Sources of Funds Par Amount of Bonds $7,150,000 Reoffering Premium 610,684

Total Sources of Funds: $7,760,684

Uses of Funds Deposit to Net Cash Escrow Account $7,660,819 Costs of Issuance (Including Underwriter’s Discount) and Rounding 99,864

Total Uses of Funds: $7,760,684

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CONSTITUTIONAL AND STATUTORY CONSIDERATIONS AND LIMITATIONS CONCERNING THE COUNTY'S POWER TO INCUR INDEBTEDNESS

The Constitution and laws of the State limit the power of the County (and other municipalities of the State) to issue obligations and to contract indebtedness. Such constitutional and legislative limitations include the following, in summary form and as generally applicable to the County. Purpose The County may not borrow money or issue notes or bonds therefor for any purpose except those specified by statute, which include among others the purpose for which the Bonds are being issued. General Obligation Bonds The principal amount of every sum borrowed by the County and secured by an issue of bonds may be payable at one time in a single payment or at several times in two or more installments; however, no installment may be made payable later than the termination of twenty years immediately following the date of the bonds. The County Board is required to levy a direct, annual, irrepealable tax sufficient in amount to pay the interest on such bonds as it falls due and also to pay and discharge the principal thereof at maturity. Bonds issued by the County to refinance or refund outstanding notes or bonds issued by the County may be payable no later than twenty years following the original date of such outstanding notes or bonds. Refunding Bonds In addition to being authorized to issue notes and bonds, the County is authorized to borrow money using refunding bonds for the purpose of refunding existing debt. To evidence such indebtedness, the County must issue to the lender its refunding bonds (with interest) payable within a period not exceeding twenty years following the initial date of the debt to be refunded. Such refunding bonds constitute a general obligation of the County. Promissory Notes In addition to being authorized to issue bonds, the County is authorized to borrow money using notes for any public purpose. To evidence such indebtedness, the County must issue to the lender its promissory notes (with interest) payable within a period not exceeding ten years following the date of said notes. Such notes constitute a general obligation of the County. Notes may be issued to refinance or refund outstanding notes. However, such notes may be payable no later than twenty years following the original date of such outstanding notes. Debt Limit The County has the power to contract indebtedness for purposes specified by statute so long as the principal amount thereof does not exceed five percent of the equalized value of taxable property within the County. For information with respect to the County's percent of legal debt incurred, see the caption "INDEBTEDNESS OF THE COUNTY-Debt Limit," herein.

THE RESOLUTION The following are summaries of certain provisions of the Resolution adopted by the County Board pursuant to the procedures prescribed by Wisconsin Statutes. Reference is made to the Resolution for a complete recital of its terms. The Parameters Resolution By way of a resolution adopted on December 3, 2014 (the "Parameters Resolution"), the Board delegated authority to its Chairperson and County Administrator ("Authorized Officers") to accept the proposal of the Underwriter (the "Bond Purchase Agreement") for the purchase of the Bonds, provided the Bond Purchase Agreement met the parameters set forth in the Parameters Resolution, by executing a Certificate of County Chairperson and County Administrator Approving the Preliminary Official Statement and Details of the General Obligation Refunding Bonds (the "Approving Certificate"). The Board pledged the full faith, credit and resources of the County to the payment of the principal of and interest on the Bonds pursuant to the Parameters Resolution. Pursuant to the Parameters Resolution, a direct annual irrepealable tax was levied for collection in the years and in the amounts which will be sufficient to meet the principal and interest payments on the Bonds when due (or

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monies will otherwise be appropriated). The Parameters Resolution establishes separate and distinct from all other funds of the County a separate debt service fund with respect to payment of principal and interest on the Bonds. Approving Certificate On January 9, 2015, the Authorized Officers executed the Approving Certificate, approving the Preliminary Official Statement, accepting the Bond Purchase Agreement, setting forth the details of the Bonds, and specifying the amount of the direct annual irrepealable tax levied to pay the principal of and interest on the Bonds.

PROPERTY TAX LEVY LIMITS Debt Issuance Conditions for Counties Wisconsin counties may not issue general obligation bonds or promissory notes unless the county qualifies for one of the exceptions allowed under the statute, as described below. General obligation bonds or notes can be issued by a county only if one of the following conditions is met: (a) the bonds or notes are approved at a referendum; (b) the county board adopts a resolution that sets forth its reasonable expectation that the issuance will not cause the county to exceed its debt levy rate limit; (c) the debt is issued for regional projects; (d) the debt is issued to refund existing debt or (e) the resolution authorizing the debt is approved by a vote of at least 3/4 of the members elect of the county board. In addition, counties generally are prohibited from using the proceeds of general obligation bonds or notes to fund the operating expenses of the general fund of the county or to fund the operating expenses of any special revenue fund of the county that is supported by property taxes, although this prohibition does not apply to notes issued to pay unfunded prior service liability contributions. The Bonds are issued to refunding existing debt. In addition, the Parameters Resolution authorizing the Bonds was adopted by a ¾ vote of the County Board. Therefore, taxes levied to pay debt service on the Bonds are not subject to the tax levy rate limit. Levy Limits Section 66.0602 of the Wisconsin Statutes, imposes a limit on property tax levies by cities, villages, towns and counties. No city, village, town or county is permitted to increase its tax levy by a percentage that exceeds its valuation factor (which is defined as a percentage equal to the greater of the percentage change in the political subdivision's January 1 equalized value due to new construction less improvements removed or zero percent). The base amount in any year to which the levy limit applies is the actual levy for the immediately preceding year. This levy limitation is an overall limit, applying to levies for operations as well as for other purposes. A political subdivision that did not levy its full allowable levy in the prior year can carry forward the difference between the allowable levy and the actual levy, up to a maximum of 1.5% of the prior year's actual levy. The use of the carry forward levy adjustment needs to be approved by a majority vote of the political subdivision's governing body (except in the case of towns) if the amount of carry forward levy adjustment is less than or equal to 0.5% and by a super majority vote of the political subdivision's governing body (three-quarters vote if the governing body is comprised of five or more members, two-thirds vote if the governing body is comprised of fewer than five members) (except in the case of towns) if the amount of the carry forward levy adjustment is greater than 0.5% up to the maximum increase of 1.5%. For towns, the use of the carry forward levy adjustment needs to be approved by a majority vote of the annual town meeting or special town meeting after the town board has adopted a resolution in favor of the adjustment by a majority vote if the amount of carry forward levy adjustment is less than or equal to 0.5% or by two-thirds vote or more if the amount of carry forward levy adjustment is greater than 0.5% up to the maximum of 1.5%. Special provisions are made with respect to property taxes levied to pay general obligation debt service. Those are described below. In addition, the statute provides for certain other exclusions from and adjustments to the tax levy limit. Among the items excluded from the limit are amounts levied for any revenue shortfall for debt service on a revenue bond issued under Section 66.0621. Among the adjustments permitted is an adjustment applicable when a tax increment district terminates, which allows an amount equal to the prior year's allowable levy multiplied by 50% of the political subdivision's percentage growth due to the district's termination.

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With respect to general obligation debt service, the following provisions are made: (a) If a political subdivision's levy for the payment of general obligation debt service, including debt

service on debt issued or reissued to fund or refund outstanding obligations of the political subdivision and interest on outstanding obligations of the political subdivision, on debt originally issued before July 1, 2005, is less in the current year than in the previous year, the political subdivision is required to reduce its levy limit in the current year by the amount of the difference between the previous year's levy and the current year's levy.

(b) For obligations authorized before July 1, 2005, if the amount of debt service in the preceding year is

less than the amount of debt service needed in the current year, the levy limit is increased by the difference between the two amounts. This adjustment is based on scheduled debt service rather than the amount actually levied for debt service (after taking into account offsetting revenues such as sales tax revenues, special assessments, utility revenues, tax increment revenues or surplus funds). Therefore, the levy limit could negatively impact political subdivisions that experience a reduction in offsetting revenues.

(c) The levy limits do not apply to property taxes levied to pay debt service on general obligation debt

authorized on or after July 1, 2005. The Bonds will be authorized after July 1, 2005 and therefore the levy limits do not apply to taxes levied

to pay debt service on the Bonds

SALES TAXES Under Wisconsin Statutes, counties may charge a ½ of 1% sales tax. Collection and administrative functions are performed by the State. The County Board has approved a County sales tax.

OZAUKEE COUNTY

The Board Ozaukee County is governed by a County Board of Supervisors consisting of 26 members elected for two-year terms. The current term expires April, 2016. The present members of the County Board of Supervisors of Ozaukee County, and their District number are as follows:

Name

District Number

Name

District Number

Thomas E. Winker, Supervisor 1 Steven Rishel, Supervisor 14 Donald G. Dohrwardt, Supervisor 2 Kathlyn T. Geracie, Supervisor 15 Barbara J. Jobs, Supervisor 3 Gerald E. Walker, Supervisor 16 Lee Schlenvogt, Chairperson 4 Richard A. Dieffenbach, Suprvisor 17 Vacant, Supervisor 5 Gustav W. Wirth, Jr., Supervisor 18 Richard C. Nelson, Supervisor 6 LeRoy C. Haeuser, Supervisor 19 Dan Becker, Supervisor 7 Richard H. Bauzenberger, Supervisor 20 David L. Larson, Supervisor 8 Justin V. Strom, Supervisor 21 Tom Grabow, Supervisor 9 Karl V. Hertz, Supervisor 22 Paul Melotik, Supervisor 10 David Henrichs, Supervisor 23 Glenn F. Stumpf, Supervisor 11 Irena Macek, Supervisor 24 Thomas H. Richart, Supervisor 12 John J. Slater, Supervisor 25 Donald Korinek, Supervisor 13 Jennifer K. Rothstein, Supervisor 26

Source: The County.

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Administration

Name

Position

Years of Service

Thomas W. Meaux County Administrator 14 Julianne B. Winkelhorst* County Clerk 8 Karen L. Makoutz* County Treasurer 21 Rhonda K. Gorden** Corporation Counsel 2 Andrew J. Lamb Finance Director 12

*Elected official, terms expire January 4, 2017. **Ms. Gorden was previously the Assistant Corporation Counsel from 2000 until 2012 with Ozaukee County. Source: The County. County Employees Listed below are the total County employees by department.

Full-Time Part-Time Department Number Number Administration 18 4 Clerk of Courts 13 11 Human Services 72 30 Coroner 0 6 Corporation Counsel 8 1 County Board 0 26 County Clerk 4 0 District Attorney 6 2 Emergency Management 1 22 Environmental Health 6 1 Public Works 52 4 Lasata Care Center 119 157 Parks 10 12 Public Health 8 7 Register of Deeds 6 2 Sheriff's Department 95 21 Treasurer 3 1 University Extension 3 1 Veterans Services 1 6 TOTAL 425 314

Source: The County. Employment Relations Ozaukee County employees are represented by the following bargaining unit. Three of the four bargaining unions decertified in 2012 through popular vote.

Union Group Represented Contract Expiration Ozaukee Deputy Sheriff Association Deputy Sheriffs December 31, 2016

Source: The County. The County considers its relationship with the employee groups to be good. All eligible County personnel are covered by the Municipal Employment Relations Act ("MERA") of the Wisconsin Statutes. Pursuant to that law, employees have rights to organize and, after significant changes were made to the law in 2011, very limited rights to collectively bargain with municipal employers. MERA was amended by 2011 Wisconsin Act 10 (the "Act") and by 2011 Wisconsin Act 32.

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As a result of the 2011 amendments to MERA, the County is prohibited from bargaining collectively with municipal employees, other than public safety or transit employees, with respect to any factor or condition of employment except total base wages. Even then, the County is limited to increasing the base wages only by any increase in the previous year's consumer price index (unless the County were to seek approval for a higher increase through a referendum). Ultimately, the County could unilaterally implement the wages for a collective bargaining unit. Under the changes to MERA, impasse resolution procedures were removed from the law for municipal employees of the type employed by the County, including binding interest arbitration. Strikes by any municipal employee or labor organization are expressly prohibited. As a practical matter, it is anticipated that strikes will be rare. Furthermore, if strikes do occur, they may be enjoined by the courts. Additionally, because the only legal subject of bargaining is the base wage rates, all bargaining over items such as just cause, benefits, and terms of conditions of employment are prohibited and cannot be included in a collective bargaining agreement. The Wisconsin Supreme Court and the U.S. Court of Appeals have upheld the validity of the Act’s amendments to MERA. Pension Plan All employees of the County are covered under a pension plan established under Chapter 40 of the Wisconsin Statutes. The total retirement plan contributions for the years ended December 31, 2013 $3,692,134 and December 31, 2012 were $3,478,039 respectively. The amounts of such contributions are determined by the Wisconsin Retirement Fund and are funded currently. Currently all non-protected employees contribute one half of pension benefits (7.0% of salary). All new protected employees hired after January 1, 2011 contribute 7.0% in 2014 to their pension. As protected employees retire the County will save that percentage. Other Post Employment Benefits The County has reviewed its OPEB liabilities and does not have any liability as of the date of this Official Statement.

GENERAL INFORMATION Location Ozaukee County is located in southeastern Wisconsin on the western shores of Lake Michigan, approximately 25 miles north of Milwaukee and 25 miles southeast of Fond du Lac. The County encompasses an area of 235 square miles of land area and consists of three cities, seven villages and six towns. The County is easily accessible by Interstate 43. U.S. Highways 32, 57 and 181 run north and south through the County and U.S. Highways 33 and 60 run east and west through the County, linking Ozaukee County to the surrounding metropolitan communities. History The organization of Ozaukee County was affected by an act of the Legislature passed March 7, 1853. The County is the smallest in the state and is made up of the towns of Belgium, Cedarburg, Fredonia, Grafton, Port Washington, and Saukville and the villages of Bayside, Belgium, Fredonia, Grafton, Newburg, Saukville and Thiensville and the cities of Cedarburg, Mequon and Port Washington. The county seat of Ozaukee County is the City of Port Washington. Education Several school districts serve County residents. The Mequon-Thiensville School District is the largest district in the County, with a 2014-15 enrollment of approximately 3,571 students and approximately 407 permanent full and part-time employees. Other school districts include Cedar Grove-Belgium, Cedarburg, Grafton, Northern Ozaukee and Port Washington-Saukville.

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Post-Secondary Education Post-secondary education is provided in the City of Mequon by the highly recognized Concordia University. Additionally, the following educational facilities are located within commuting distance of the County: Alverno College, Medical College of Wisconsin, Cardinal Stritch College, Marquette University, Milwaukee Area Technical College, (campus in downtown Milwaukee as well as the Northshore campus in the City of Mequon), Milwaukee School of Engineering, Mount Mary College, and the University of Wisconsin - Milwaukee. Health Facilities Ozaukee County communities are served by a complete range of health facilities and healthcare professionals. The Columbia St. Mary’s Hospital Ozaukee located in the City of Mequon built in 1994 and the Aurora Hospital located in the City of Grafton built in 2010 were designed around the needs of today's hospital patients. They are not only comfortable and functional; they are also visually impressive, complimenting both the landscape and the community. Both are located just minutes from Milwaukee, and are easy to locate from the north or the south on I-43. The hospital includes a physician office tower and convenient parking, all handicap accessible. Also, Aurora Advanced Healthcare serves the community by offering a variety of facilities and healthcare professionals in the Cities of Mequon and Port Washington and the Village of Grafton.

DEMOGRAPHIC AND ECONOMIC INFORMATION Population

Ozaukee County

City of Mequon

City of Port Washington

Estimate, 2014 87,116 23,387 11,439 Estimate, 2013 86,705 23,279 11,266 Estimate, 2012 86,635 23,225 11,287 Estimate, 2011 86,530 23,191 11,272 Census, 2010 86,395 23,132 11,250

Source: Wisconsin Department of Administration, Demographic Services Center. Per Tax Return Adjusted Gross Income

Year State of

Wisconsin Ozaukee County

City of Mequon

City of Port Washington

2012 $49,900 $94,160 $175,430 $53,090 2011 47,640 89,490 167,610 51,530 2010 46,958 82,425 147,436 48,117 2009 45,372 79,263 138,288 47,275 2008 47,046 86,785 159,112 48,724

Source: Wisconsin Department of Revenue, Division of Research and Policy. Unemployment Rate

State of

Wisconsin Ozaukee County

October, 2014 4.6% 3.9% October, 2013 5.9 4.9 Average, 2013 6.7% 5.5% Average, 2012 6.9 5.7 Average, 2011 7.5 6.1 Average, 2010 8.5 6.9 Average, 2009 8.7 7.6

Source: Wisconsin Department of Workforce Development.

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Largest Taxpayers 2014

Assessed Value

2014 Equalized Valuation Name of Business Type of Business or Property

LCS-Westminster Newcastle LLC Senior care facility $37,908,200 $35,674,957 Centro Bradely SPE 1 LLC Manufacturing 30,633,000 28,828,353 HTA-Wisconsin MOB 2 LLC Health care 18,257,100 17,181,540 FFII WI Mequon LLC Manufacturing 18,069,200 17,004,710 Columbia St. Mary's Hospital Health care 17,560,500 16,671,337 Inland America LLC Commercial 16,182,200 16,261,752 Costco Wholesale Corp. Commercial 13,579,700 13,646,458 Charter Manufacturing Co., Inc. Manufacturing 13,127,100 13,357,177 Centerpoint Properties Trust Commercial 11,774,700 11,081,030 Grafton LLC Commercial 10,951,600 11,005,438 TOTAL $188,043,300 $180,712,752

The above taxpayers represent 1.71% of the County’s 2014 Equalized Value (TID IN) of $10,584,585,500.

Source: The County. Largest Employers

*Ozaukee County location only. Source: Infogroup (www.salesgenie.com), employer calls and the County. (1) Represents permanent full and part-time employees. Figure includes seasonal employees. (2)Includes full-time and part-time and excludes seasonal and substitutes. (3)Includes full-time and part-time.

TAX LEVIES, RATES AND COLLECTIONS Personal property taxes, special assessments, special charges and special taxes must be paid to the town, city or village treasurer in full by January 31. Real property taxes may be paid in full by January 31 or in two equal installments payable by January 31 and July 31. Municipalities also have the option of adopting payment plans which allow taxpayers to pay their real property taxes and special assessments in three or more installments, provided that the first installment is paid by January 31, one-half of the taxes are paid by April 30 and the remainder is paid by July 31. Amounts paid on or before January 31 are paid to the town, city or village treasurer. Amounts paid after January 31 are paid to the county treasurer unless the municipality has authorized payment in three or more installments in which case payment is made to the town, city or village treasurer. Any amounts paid after July 31 are paid to the county treasurer. For municipalities which have not adopted an installment payment plan, the town, city or village treasurer settles with other taxing jurisdictions for collections through the preceding

Number of Employer Type of Business Employees Rockwell Automation Inc.

Manufacturer of process control instruments, speed changes, drivers & gears

3,000

Aurora Medical Center Grafton* Health care 1,088 Concordia University Wisconsin- Mequon University 1,000 Charter Manufacturing Co., Inc. Manufacturing 999 Columbia St. Mary's Hospital Health care 750 Ozaukee County Government 739(1) Pace Industries Manufactures metal box springs frames 490 Mequon-Thiensville School District Education 407(2) Allen Edmonds Shoe Corporation Manufactures men's footwear 400 Cedarburg School District Education 380 Port Washington-Saukville School District Education 375(3) Kleen Test Products Manufacturer of sanitary paper products 300

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month on January 15 and February 20. For municipalities which have adopted an installment payment plan, the town, city or village treasurer settles with other taxing jurisdictions for collections through the preceding month on January 15, February 15 and the 15th day of each month following a month in which an installment payment is due. On or before August 20, the county treasurer must settle in full with the underlying taxing districts for all real property taxes and special taxes. The County Board may authorize its County Treasurer to also settle in full with the underlying taxing districts for all special assessments and special charges. The county may then recover any tax delinquencies by enforcing the lien on the property and retain any penalties or interest on the delinquencies for which it has settled. Set forth below are tax levies for County purposes and the tax rate per $1,000 equalized valuation on all taxable property in Ozaukee County for collection years 2011-2015.

Collection Levy for County Year County Purposes Tax Rate 2015 $19,530,551 $2.15 2014 19,530,551 2.21 2013 19,345,210 2.12 2012 19,153,209 2.03 2011 19,012,281 2.01

Total Uncollected Taxes Percent of

Collection County-wide As of Levy Year Levy* September 30th Collected 2015 $191,153,197 -In Process of Collection- 2014 198,798,400 $1,803,565 99.10% 2013 194,835,466 2,284,382 98.83 2012 193,486,181 2,733,940 98.59 2011 198,317,819 3,001,099 98.49

*Includes County, Cities, Villages, Towns, School Districts, and Technical College Districts. These figures do not include special assessments or charges or special tax districts not subject to a mill rate. Source: The County.

EQUALIZED VALUATIONS All equalized valuations of property in the State of Wisconsin are determined by the State of Wisconsin, Department of Revenue, Supervisor of Assessments Office. Equalized valuations are the State's estimate of full market value. The State determines assessed valuations of all manufacturing property in the State. Assessed valuations of residential and commercial property are determined by local assessors. Set forth in the table below are equalized valuations of property located within the County for the years 2010 through 2014. The County's equalized valuation (TID IN) has decreased by 2.01 percent since 2010. The average annual percentage change is -0.51 percent.

Equalized Valuation

Equalized Valuation

Year TID-IN TID-OUT 2014 $10,584,585,500 $10,408,956,100 2013 10,226,456,100 10,069,430,600 2012 10,345,569,700 10,183,748,800 2011 10,706,477,500 10,530,359,400 2010 10,801,617,900 10,621,925,500

Source: Wisconsin Department of Revenue.

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EQUALIZED VALUE BY CLASS OF PROPERTY Equalized Value by class of property for 2014 is as follows:

Percent of Amount Total Real Estate Residential $8,564,565,800 80.92% Commercial 1,467,031,100 13.86 Manufacturing 243,120,600 2.30 Agriculture 13,231,300 0.13 Undeveloped 16,917,900 0.16 Ag Forest 17,096,100 0.16 Forest 7,071,100 0.07 Other 90,894,800 0.86 Total Real Estate $10,419,928,700 98.44% Total Personal Property $164,656,800 1.56%

Total Equalized Value $10,584,585,500 100.00% Source: Wisconsin Department of Revenue. Tax Increment Districts Several municipalities in the County have created Tax Incremental Districts (TIDs) under Wisconsin Statutes Section 66.1105. TID valuations totaling $175,629,400 have been excluded from the County’s tax base for 2014. Current TID Year Base Value Municipality Number Created Value Increment (2014) Village of Belgium 04 1995 $424,900 $28,696,800 $29,121,700 Village of Grafton 02 1996 929,500 17,686,100 18,615,600 03 1999 21,039,900 25,391,800 46,431,700 04 2004 47,847,400 8,254,600 56,102,000 05 2006 493,500 36,342,900 36,836,400 Village of Saukville 02 2001 350,000 3,714,700 4,064,700 04 2006 1,600,100 835,900 2,436,000 Village of Thiensville 01 1985 16,826,900 34,939,600 51,766,500 City of Cedarburg 02 2007 2,924,600 * 1,706,500 City of Mequon 02 2002 5,911,600 13,503,300 19,414,900 03 2008 41,330,300 1,404,600 42,734,900 04 2012 41,872,200 455,100 42,327,300 05 2012 51,186,900 1,607,700 52,794,600 City of Port Washington 02 2010 13,361,700 2,796,300 16,158,000

$175,629,400 *District has a zero or negative value increment. Source: Wisconsin Department of Revenue.

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INDEBTEDNESS OF THE COUNTY Direct Indebtedness Set forth below is the direct indebtedness of the County including principal and interest payments due on existing debt, excluding the refunded maturities, as well as debt on the Bonds. The interest on the Bonds has been calculated using an average rate of 3.23 percent.

Outstanding Total Bonds and Notes New Issue-Bonds Debt Service

Year Principal Interest Principal Interest Requirements 2015 $1,935,000 $774,675 $165,000 $128,119 $3,002,794 2016 2,420,000 709,636 35,000 219,875 3,384,511 2017 2,475,000 640,661 35,000 219,175 3,369,836 2018 2,555,000 565,786 35,000 218,475 3,374,261 2019 2,100,000 494,511 580,000 209,425 3,383,936 2020 2,165,000 430,811 600,000 191,725 3,387,536 2021 1,785,000 374,971 620,000 173,425 2,953,396 2022 1,455,000 332,469 645,000 154,450 2,586,919 2023 1,495,000 293,481 670,000 134,725 2,593,206 2024 740,000 264,594 695,000 114,250 1,813,844 2025 770,000 245,259 725,000 92,950 1,833,209 2026 790,000 223,313 750,000 68,950 1,832,263 2027 815,000 198,875 780,000 42,175 1,836,050 2028 850,000 172,488 815,000 14,263 1,851,750 2029 875,000 144,763 0 0 1,019,763 2030 910,000 114,916 0 0 1,024,916 2031 940,000 82,806 0 0 1,022,806 2032 635,000 55,181 0 0 690,181 2033 655,000 33,425 0 0 688,425 2034 675,000 11,391 0 0 686,391

$27,040,000 $6,164,012 $7,150,000 $1,981,981 $42,335,993 Less: 2015

Sinking Funds (1,935,000) (774,675) (165,000) (128,119) (3,002,794)

TOTAL $25,105,000 $5,389,337 $6,985,000 $1,853,863 $39,333,199 Future Financing The County does not anticipate issuing any additional long-term obligations within the next twelve months. Default Record The County has never defaulted on any prior debt repayment obligations.

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Overlapping and Underlying Indebtedness Set forth below is information relating to the outstanding overlapping and underlying indebtedness of the County. Amount of Debt Percent Outstanding Less (2015 Chargeable Debt Chargeable Name of Entity Principal Payments) to County to County Milwaukee Area Technical College District* $78,225,000 14.18% $11,092,305 Lakeshore Technical College District 23,745,000 2.86 679,107 Total Cities 51,924,935 100.00 51,924,935 Total Villages 69,656,617 Varies 54,301,287 Total Towns 2,534,390 100.00 2,534,390 Total School Districts 49,386,931 Varies 45,322,937 Milwaukee Metropolitan Sewerage District 834,595,439 0.04 333,838 TOTAL $1,110,068,312 $166,188,799

*The Milwaukee Area Technical College District anticipates the issuance of $1,500,000 general obligation promissory notes anticipated to settle in February, 2015. This amount is included in the figure above. NOTE: This summary may not reflect all of the County's outstanding overlapping and underlying indebtedness. Source: Wisconsin Department of Revenue. Information provided by each municipal entity through publicly available disclosure documents available on EMMA.msrb.org and the Wisconsin Department of Public Instruction and direct inquiries. Statistical Summary The table below reflects direct, overlapping and underlying bonded indebtedness net of all 2015 principal payments and refunded maturities. 2014 Equalized Valuation as certified by Wisconsin Department of Revenue $10,584,585,500

Direct Indebtedness including the Bonds $32,090,000

Direct and Overlapping Indebtedness including the Bonds $198,278,799

Direct Bonded Indebtedness as a Percentage of Equalized Valuation 0.30%

Direct and Overlapping Indebtedness as a Percentage of Equalized Valuation 1.87%

Population of County (2014 Estimate)* 87,116

Direct Indebtedness Per Capita $368.36

Direct and Overlapping Indebtedness Per Capita $2,276.03 *Source: Wisconsin Department of Administration, Demographic Services Center.

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Debt Limit As described under the caption "CONSTITUTIONAL AND STATUTORY CONSIDERATIONS AND LIMITATIONS CONCERNING THE COUNTY'S POWER TO INCUR INDEBTEDNESS--Debt Limit," the total indebtedness of the County may not exceed five percent of the equalized value of property in the County. Set forth in the table below is a comparison of the outstanding indebtedness of the County, excluding refunded maturities, as of the closing of the Bonds, as a percentage of the applicable debt limit. Equalized Valuation (2014) as certified by Wisconsin Department of Revenue $10,584,585,500

Legal Debt Percentage Allowed 5.00%

Legal Debt Limit $529,229,275

General Obligation Debt Outstanding including the Bonds $34,190,000

Unused Margin of Indebtedness $495,039,275

Percent of Legal Debt Incurred 6.46%

Percentage of Legal Debt Available 93.54%

FINANCIAL INFORMATION The financial operations of the County are conducted primarily through its general fund. Most taxes and non-tax revenues (such as license fees, fines and costs and user's fees) are paid into the general fund and current operating expenditures are made from the general fund pursuant to appropriations made by the County Board of Supervisors. Budgeting Process The County is required by State law to annually formulate a budget and to hold public hearings thereon prior to the determination of the amounts to be financed, in whole or in part, by general property taxes, funds on hand or estimated revenues from other sources. The budget must list all existing indebtedness of the County and include anticipated revenues from all sources during the ensuing year, and must list all proposed appropriations for each department, activity and reserve account during the ensuing year. The budget must show actual revenues and expenditures for not less than the first six months of the current year and estimated revenues and expenditures for the balance of the current year. As part of the budgeting process, public hearings are held on the proposed budget, at which time any resident or taxpayer in the County may be heard. At an annual budget meeting in November of each year the County Board adopts the final budget for the succeeding year and levies taxes based on equalized valuations of property less any increment attributable to Tax Increment Districts. The amounts of taxes so levied and the amounts of the various appropriations in the final budget (after any alterations made pursuant to public hearings) may not be changed unless authorized by a vote of two-thirds of the entire membership of the County Board. Failure to publish notice of any such alteration within ten days thereafter shall preclude any change in the budget. The County received a Certificate of Achievement for Excellence in Financial Reporting, from the Government Finance Officers Association, for its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31, 2012. Financial Records The County maintains its financial records on a calendar year basis. Appendix A hereto sets forth the Basic Financial Statements and Related Notes for the year ended December 31, 2013, which have been examined by Schenck S.C., Certified Public Accountants, Green Bay, Wisconsin (the "Auditor").

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GENERAL FUND SUMMARY FOR THE YEARS ENDED DECEMBER 31

2015 2014 2013 2012 2011

BUDGET ESTIMATED ACTUAL ACTUAL ACTUAL

Revenues

Taxes $17,482,790 $17,339,025 $16,413,404 $16,057,246 $15,706,940

Intergovernmental 1,452,713 1,848,295 1,686,118 1,654,763 2,333,609

Public charges for services 1,860,075 1,741,191 1,842,180 1,818,956 1,565,615

Intergovernmental charges for services 229,000 269,269 314,742 441,202 1,532,264

Interdepartmental charges for services 433,098 431,826 427,157 436,393 450,337

Fines, forfeits and penalties 258,000 221,485 229,967 228,938 241,726

Licenses and permits 19,378 111,878 125,047 112,576 109,807

Investment Income 201,600 162,638 124,625 215,940 272,255

Other 869,500 777,180 660,247 673,636 663,025

Total Revenues 22,906,154 22,902,787 21,823,487 21,639,650 22,875,578

Expenditures

General government 5,788,231 6,009,719 8,202,802 8,484,013 8,463,670

Public safety 13,183,127 12,646,955 10,750,632 11,545,978 11,689,606

Transportation 92,000 94,000 134,661 639,794 137,819

Health and human services 744,225 677,970 612,082 126,894 647,855

Culture and recreation 1,184,586 1,202,980 890,456 855,899 793,218

Conservation and development 1,432,103 1,345,978 623,908 662,800 635,118

Capital Outlay 1,554,725 679,207 388,001 425,350 625,142

Total Expenditures 23,978,997 22,656,809 21,602,542 22,740,728 22,992,428 Excess of revenues over (under) Expenditures (1,072,843) 245,978 220,945 (1,101,078) (116,850)

Other financing sources (uses)

Long-term debt issued -- 10,000,000 -- -- --

Bond premium -- 129,913 -- -- --

Operating transfers in 1,072,843 911,991 1,038,628 743,709 1,194,309

Operating transfers (out) (10,129,913) (1,105,524) (1,739,427) (546,247) (1,065,588)

Net other financing sources (uses) (9,057,070) 9,936,380 (700,799) 197,462 128,721

Revenues and other sources over

(under) expenditures and other uses (10,129,913)* 10,182,358* (479,854) (903,616) 11,871

Fund balances - beginning of year 18,265,892 8,083,534 8,563,388 9,467,004 9,455,133

Ending Fund Balance Summary 8,135,979 18,265,892 8,083,534 8,563,386 9,467,004

Reserved -- 10,129,913 1,943,375 1,887,671 2,021,550

Unreserved -- -- 24,775 -- --

Designated 3,128,755 3,128,755 151,225 183,615 705,253

Undesignated 5,007,224 5,007,224 5,964,159 6,492,100 6,740,201

Fund balances - end of year $8,135,979 $18,265,892 $8,083,534 $8,563,388 $9,467,004

*The sizeable surplus in 2014 and budgeted deficit in 2015 are related to the receipt of revenue from the County’s 2014 General Obligation County Building Bonds dated August 28, 2014. The County expects to expend the balance of the proceeds in 2015. The amounts shown for the years ended December 31, 2011 through December 31, 2013 are excerpts from the audit reports which have been examined by Schenck S.C., Certified Public Accountants, Green Bay, Wisconsin. The amounts shown for the year ended December 31, 2014 are estimated and the amounts shown for the year ending December 31, 2015 are shown on a budgetary basis. The comparative statement of revenues and expenditures should be read in conjunction with the Basic Financial Statements and Related Notes thereto appearing in Appendix A to this Official Statement.

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Financial Statements A copy of the County's Basic Financial Statements and Related Notes for the fiscal year ended December 31, 2013, including the accompanying independent auditor’s report, is included as Appendix A to this Official Statement. Potential purchasers should read such financial statements in their entirety for more complete information concerning the County's financial position. Such financial statements have been audited by the Auditor, to the extent and for the periods indicated thereon. The County has not requested the Auditor to perform any additional examination, assessment or evaluation with respect to such financial statements since the date thereof, nor has the County requested that the Auditor consent to the use of such financial statements in this Official Statement. Although the inclusion of the financial statements in this Official Statement is not intended to demonstrate the fiscal condition of the County since the date of the financial statements, in connection with the issuance of the Bonds, the County represents that there has been no material adverse change in the financial position or results of operations of the County, nor has the County incurred any material liabilities, which would make such financial statements misleading.

UNDERWRITING Robert W. Baird & Co., (the "Underwriter") has agreed to purchase the Bonds from the County for a purchase price of $7,707,058.60 plus accrued interest to the delivery of the Bonds. The Underwriter will be obligated to purchase all of the Bonds if any of such Bonds are purchased. The Underwriter reserves the right to join with dealers and other underwriters in offering the Bonds to the public. The Underwriter may offer and sell the Bonds to certain dealers (including dealers depositing the Bonds into investment trusts) at prices lower than the offering prices derived from the rates and yields for each maturity set forth on the cover of this Official Statement. Such initial public offering prices may be changed from time to time by the Underwriter.

TAX EXEMPTION Quarles & Brady LLP, Milwaukee, Wisconsin, Bond Counsel, will deliver a legal opinion with respect to the federal income tax exemption applicable to the interest on the Bonds under existing law substantially in the following form:

"The interest on the Bonds is excludable for federal income tax purposes from the gross income of the owners of the Bonds. The interest on the Bonds is not an item of tax preference for purposes of the federal alternative minimum tax imposed by Section 55 of the Internal Revenue Code of 1986, as amended (the "Code") on corporations (as that term is defined for federal income tax purposes) and individuals. However, for purposes of computing the alternative minimum tax imposed on corporations, the interest on the Bonds is included in adjusted current earnings. The Code contains requirements that must be satisfied subsequent to the issuance of the Bonds in order for interest on the Bonds to be or continue to be excludable from gross income for federal income tax purposes. Failure to comply with certain of those requirements could cause the interest on the Bonds to be included in gross income retroactively to the date of issuance of the Bonds. The County has agreed to comply with all of those requirements. The opinion set forth in the first sentence of this paragraph is subject to the condition that the County comply with those requirements. We express no opinion regarding other federal tax consequences arising with respect to the Bonds."

The interest on the Bonds is not exempt from present Wisconsin income or franchise taxes. Prospective purchasers of the Bonds should be aware that ownership of the Bonds may result in collateral federal income tax consequences to certain taxpayers. Bond Counsel will not express any opinion as to such collateral tax consequences. Prospective purchasers of the Bonds should consult their tax advisors as to collateral federal income tax consequences. From time to time legislation is proposed, and there are or may be legislative proposals pending in the Congress of the United States that, if enacted, could alter or amend the federal tax matters referred to above or adversely affect the market value of the Bonds. It cannot be predicted whether, or in what form, any proposal that could alter one or more of the federal tax matters referred to above or adversely affect the market value of the Bonds may be enacted. Prospective purchasers of the Bonds should consult their own tax advisors regarding any

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pending or proposed federal tax legislation. Bond Counsel expresses no opinion regarding any pending or proposed federal tax legislation. Bond Premium To the extent that the initial offering price of certain of the Bonds is more than the principal amount payable at maturity, such Bonds ("Premium Bonds") will be considered to have bond premium. Any Premium Bond purchased in the initial offering at the issue price will have "amortizable bond premium" within the meaning of Section 171 of the Code. The amortizable bond premium of each Premium Bond is calculated on a daily basis from the issue date of such Premium Bond until its stated maturity date (or call date, if any) on the basis of a constant interest rate compounded at each accrual period (with straight line interpolation between the compounding dates). An owner of a Premium Bond that has amortizable bond premium is not allowed any deduction for the amortizable bond premium; rather the amortizable bond premium attributable to a taxable year is applied against (and operates to reduce) the amount of tax-exempt interest payments on the Premium Bonds. During each taxable year, such an owner must reduce his or her tax basis in such Premium Bond by the amount of the amortizable bond premium that is allocable to the portion of such taxable year during which the holder held such Premium Bond. The adjusted tax basis in a Premium Bond will be used to determine taxable gain or loss upon a disposition (including the sale, exchange, redemption, or payment at maturity) of such Premium Bond. Owners of Premium Bonds who did not purchase such Premium Bonds in the initial offering at the issue price should consult their own tax advisors with respect to the tax consequences of owning such Premium Bonds. Owners of Premium Bonds should consult their own tax advisors with respect to the state and local tax consequences of owning the Premium Bonds.

DESIGNATION AS QUALIFIED TAX-EXEMPT OBLIGATIONS The County will designate the Bonds as "qualified tax-exempt obligations" for purposes of Section 265 of the Internal Revenue Code of 1986, as amended, relating to the ability of financial institutions to deduct from income for federal income tax purposes, interest expense that is allocable to carrying and acquiring tax-exempt obligations.

CONTINUING DISCLOSURE In order to assist the Underwriters in complying with Rule 15c2-12 promulgated by the Securities and Exchange Commission (the "SEC"), pursuant to the Securities Exchange Act of 1934 (the "Rule"), the County shall covenant pursuant to a Resolution adopted by the Governing Body to enter into an undertaking (the "Undertaking") for the benefit of holders including beneficial holders of the Bonds to provide certain financial information and operating data relating to the County annually to the Municipal Securities Rulemaking Board (the "MSRB"), and to provide notices of the occurrence of certain events enumerated in the Rule electronically or in the manner otherwise prescribed by the MSRB to the MSRB. The Undertaking provides that the annual report will be filed not later than 270 days after the end of each fiscal year. The County's fiscal year ends December 31st. The details and terms of the Undertaking, as well as the information to be contained in the annual report or the notices of material events, are set forth in the Continuing Disclosure Certificate to be executed and delivered by the County at the time the Bonds are delivered. Such Certificate will be in substantially the form attached hereto as Appendix B. A failure by the County to comply with the Undertaking will not constitute an event of default on the Bonds (although holders will have the right to obtain specific performance of the obligations under the Undertaking). Nevertheless, such a failure must be reported in accordance with the Rule and must be considered by any broker, dealer or municipal securities dealer before recommending the purchase or sale of the Bonds in the secondary market. Consequently, such a failure may adversely affect the transferability and liquidity of the Bonds and their market price. The County is required to file its continuing disclosure information using the Electronic Municipal Market Access ("EMMA") system. Investors will be able to access continuing disclosure information filed with the MSRB at www.emma.msrb.org. The County did not file its budget information for the fiscal years ended December 31, 2009 through 2011, which the County had agreed to file under previous continuing disclosure undertaking agreements as described in the

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Rule, within the time specified in such undertakings. Except to the extent the preceding is deemed to be material, in the previous five years, the County has not failed to comply in all material respects with any previous undertakings under the Rule. As of the date of this Official Statement, the County has filed such operating data in the manner prescribed by the MSRB. The County has established procedures to help ensure filing of audited financial statements and operating data are made in a timely manner in the future to the MSRB.

BOOK-ENTRY-ONLY SYSTEM The Depository Trust Company (“DTC”), New York, NY, will act as securities depository for the Bonds. The Bonds will be issued as fully-registered securities registered in the name of Cede & Co. (DTC’s partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully-registered Bond certificate will be issued for each maturity of the Bonds, each in the aggregate principal amount of such maturity, and will be deposited with DTC. DTC, the world’s largest securities depository, is a limited-purpose trust company organized under the New York Banking Law, a “banking organization” within the meaning of the New York Banking Law, a member of the Federal Reserve System, a “clearing corporation” within the meaning of the New York Uniform Commercial Code, and a “clearing agency” registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money market instruments (from over 100 countries) that DTC’s participants (“Direct Participants”) deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book-entry transfers and pledges between Direct Participants’ accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation (“DTCC”). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly (“Indirect Participants”). DTC has a Standard & Poor’s rating of AA+. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com and www.dtc.org. Purchases of Bonds under the DTC system must be made by or through Direct Participants, which will receive a credit for the Bonds on DTC’s records. The ownership interest of each actual purchaser of each Bond (“Beneficial Owner”) is in turn to be recorded on the Direct and Indirect Participants’ records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Bonds are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in Bonds, except in the event that use of the book-entry system for the Bonds is discontinued. To facilitate subsequent transfers, all Bonds deposited by Direct Participants with DTC are registered in the name of DTC’s partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of Bonds with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Bonds; DTC’s records reflect only the identity of the Direct Participants to whose accounts such Bonds are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of the Bonds may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the Bonds, such as redemptions, tenders, defaults, and proposed amendments to the Security documents. For example, Beneficial Owners of Bonds may wish to ascertain that the

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nominee holding the Bonds for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of notices be provided directly to them. Redemption notices shall be sent to DTC. If less than all of the Bonds within an issue are being redeemed, DTC’s practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Bonds unless authorized by a Direct Participant in accordance with DTC’s MMI Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to County as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.’s consenting or voting rights to those Direct Participants to whose accounts the Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy). Redemption proceeds, distributions, and dividend payments on the Bonds will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC’s practice is to credit Direct Participants’ accounts upon DTC’s receipt of funds and corresponding detail information from County or Agent, on payable date in accordance with their respective holdings shown on DTC’s records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in “street name,” and will be the responsibility of such Participant and not of DTC, Agent, or County, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of redemption proceeds, distributions, and dividend payments to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of County or Agent, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants. DTC may discontinue providing its services as depository with respect to the Bonds at any time by giving reasonable notice to County or Agent. Under such circumstances, in the event that a successor depository is not obtained, Bond certificates are required to be printed and delivered. County may decide to discontinue use of the system of book-entry-only transfers through DTC (or a successor securities depository). In that event, Bond certificates will be printed and delivered to DTC. The information in this section concerning DTC and DTC’s book-entry system has been obtained from sources that County believes to be reliable, but County takes no responsibility for the accuracy thereof.

RATING The Bonds have been assigned a "Aaa" rating by Moody's Investors Service, Inc. Such rating reflects only the views of such organization and explanations of the significance of such rating may be obtained from the rating agency furnishing the same. Generally, a rating agency bases its rating on the information and materials furnished to it and on investigations, studies and assumptions of its own. There is no assurance that such rating will continue for any given period of time or that it will not be revised downward or withdrawn entirely by such rating agency, if in the judgment of such rating agency circumstances so warrant. Any such downward revision or withdrawal of such rating may have an adverse effect on the market price of the Bonds. Such rating is not to be construed as a recommendation of the rating agency to buy, sell or hold the Bonds, and the rating assigned by the rating agency should be evaluated independently. Except as may be required by the Undertaking described under the heading "CONTINUING DISCLOSURE" neither the County nor the Underwriter undertake responsibility to bring to the attention of the owners of the Bonds any proposed change in or withdrawal of such rating or to oppose any such revision or withdrawal.

LITIGATION There is no controversy or litigation of any nature now pending or, to the knowledge of the County, threatened, restraining or enjoining the issuance, sale, execution or delivery of the Bonds, or in any way contesting or affecting the validity of the Bonds or any proceedings of the County taken with respect to the issuance or sale thereof.

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LEGAL MATTERS Legal matters incident to the authorization and issuance of the Bonds are subject to the unqualified approving legal opinion of Quarles & Brady LLP, Bond Counsel. Such opinion will be issued on the basis of the law existing at the time of the issuance of the Bonds. A copy of such opinion will be available at the time of the delivery of the Bonds

MUNICIPAL BANKRUPTCY Municipalities are prohibited from filing for bankruptcy under Chapter 11 (reorganization) or Chapter 7 (liquidation) of the U.S. Bankruptcy Code (11 U.S.C. §§ 101-1532) (the "Bankruptcy Code"). Instead, the Bankruptcy Code permits municipalities to file a petition under Chapter 9 of the Bankruptcy Code, but only if certain requirements are met. These requirements include that the municipality must be “specifically authorized” under State law to file for relief under Chapter 9. For these purposes, "State law" may include, without limitation, statutes of general applicability enacted by the State legislature, special legislation applicable to a particular municipality, and/or executive orders issued by an appropriate officer of the State's executive branch. As of the date hereof, Wisconsin law contains no express authority for municipalities to file for bankruptcy relief under Chapter 9 of the Bankruptcy Code. Nevertheless, there can be no assurance (a) that State law will not change in the future, while the Bonds are outstanding, in a way that would allow the County to file for bankruptcy relief under Chapter 9 of the Bankruptcy Code; or (b) even absent such a change in State law, that an executive order or other executive action could not effectively authorize the County to file for relief under Chapter 9. If, in the future, the County were to file a bankruptcy case under Chapter 9, the relevant bankruptcy court would need to consider whether the County could properly do so, which would involve questions regarding State law authority as well as other questions such as whether the County is a municipality for bankruptcy purposes. If the relevant bankruptcy court concluded that the County could properly file a bankruptcy case, and that determination was not reversed, vacated, or otherwise substantially altered on appeal, then the rights of holders of the Bonds could be modified in bankruptcy proceedings. Such modifications could be adverse to holders of the Bonds, and there could ultimately be no assurance that holders of the Bonds would be paid in full or in part on the Bonds.

MATHEMATICAL VERIFICATION Grant Thornton LLP, Minneapolis, Minnesota, a firm of independent certified public accountants, upon delivery of the Bonds, will deliver to the County its attestation report indicating that it has examined, in accordance with standards established by the American Institute of Certified Public Accountants, the mathematical accuracy of computations prepared by Robert W. Baird & Co. Incorporated relating to (a) the sufficiency of the anticipated receipts from the U.S. Treasury Obligations, together with the initial cash deposit, if any, to pay, when due, the principal, interest and early redemption premium requirements, if any, of the advance refunded obligations, and (b) the "yield" on the U.S. Treasury Obligations and on the Bonds. The report of Grant Thornton LLP will include the statement that the scope of their engagement was limited to verifying the mathematical accuracy of the computations contained in such schedules provided to them and that they have no obligation to update their report because of events occurring, or data or information coming to their attention, subsequent to the date of their report.

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MISCELLANEOUS Any statement made in this Official Statement involving matters of opinion or of estimates, whether or not so expressly stated, are set forth as such and not as representations of fact, and no representation is made that any of the estimates will be realized. Bond Counsel has not assumed responsibility for this Official Statement or participated in its preparation (except with respect to the section entitled “Tax Exemption”) and has not performed any investigation as to its accuracy, completeness or sufficiency. The execution and delivery of this Official Statement by its Clerk has been duly authorized by the County. In accordance with the Rule, the Preliminary Official Statement is deemed final except for the omission of certain information described in the Rule.

AUTHORIZATION This Official Statement has been approved for distribution to prospective purchasers and the Underwriter of the Bonds. The County, acting through its Clerk, will provide to the Underwriter of the Bonds at the time of delivery of the Bonds, a certificate confirming to the Underwriter that, to the best of its knowledge and belief, the Official Statement with respect to the Bonds, together with any supplements thereto, at the time the Bonds Approving Certificate was signed, and at the time of delivery of the Bonds, was true and correct in all material respects and did not at any time contain an untrue statement of a material fact or omit to state a material fact required to be stated, where necessary to make the statements in light of the circumstances under which they were made, not misleading.

OZAUKEE COUNTY

By /s/ Julianne B. Winkelhorst

County Clerk

APPENDIX A

BASIC FINANCIAL STATEMENTS AND RELATED NOTES

OZAUKEE COUNTY

WISCONSIN

For year ended December 31, 2013

Schenck S.C. Certified Public Accountants

Green Bay, Wisconsin

A copy of the County's Basic Financial Statements and Related Notes for the fiscal year ended December 31, 2013, including the accompanying independent auditor’s report, is included as Appendix A to this Official Statement. Potential purchasers should read such financial statements in their entirety for more complete information concerning the County's financial position. Such financial statements have been audited by the Auditor, (defined herein) to the extent and for the periods indicated thereon. The County has not requested the Auditor to perform any additional examination, assessment or evaluation with respect to such financial statements since the date thereof, nor has the County requested that the Auditor consent to the use of such financial statements in this Official Statement. Although the inclusion of the financial statements in this Official Statement is not intended to demonstrate the fiscal condition of the County since the date of the financial statements, in connection with the issuance of the Bonds, the County represents that there has been no material adverse change in the financial position or results of operations of the County, nor has the County incurred any material liabilities, which would make such financial statements misleading.

OZAUKEE COUNTY, WISCONSIN

COMPREHENSIVE ANNUAL FINANCIAL REPORT

For Year Ended DECEMBER 31, 2013

Finance Department

Andrew Lamb Director of Finance

OZAUKEE COUNTY, WISCONSIN Comprehensive Annual Financial Report

December 31, 2013

Table of Contents

INTRODUCTORY SECTION Title Page Table of Contents Letter of Transmittal GFOA Certificate of Achievement Organizational Chart Board of Supervisors Department Heads

FINANCIAL SECTION INDEPENDENT AUDITORS' REPORT

MANAGEMENT'S DISCUSSION AND ANALYSIS

BASIC FINANCIAL STATEMENTS Government-wide Financial Statements

Statement of Net Position Statement of Activities

Fund Financial Statements Balance Sheet- Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances -

Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balance -

Budget and Actual - General Fund Statement of Revenues, Expenditures and Changes in Fund Balance -

Budget and Actual - Human Services Statement of Revenues, Expenditures and Changes in Fund Balance-

Budget and Actual - County Roads and Bridges Special Revenue Fund Statement of Net Position - Proprietary Funds Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds Statement of Cash Flows - Proprietary Funds Statement of Net Position - Fiduciary Funds

Notes to Basic Financial Statements

SUPPLEMENTARY INFORMATION Schedule of Revenues and Other Financing Sources

Budget to Actual - General Fund Schedule of Expenditures and Other Financing Uses

Budget to Actual - General Fund Combining Balance Sheet- Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances -

Nonmajor Governmental Funds

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5-10 11 12 13 14

15- 16

17-30

31 32-33

34-35

36-37

38

39-41

42 43 44

45-46 47

48-72

73-76

77-79 80-82

83-85

OZAUKEE COUNTY, WISCONSIN Comprehensive Annual Financial Report

December 31, 2013

Table of Contents (Continued)

FINANCIAL SECTION (Continued) SUPPLEMENTARY INFORMATION (Continued)

Schedule of Revenues, Expenditures and Changes in Fund Balance­Budget to Actual - Aging Services Special Revenue Fund

Schedule of Revenues, Expenditures and Changes in Fund Balance -Budget to Actual - ADRC Special Revenue Fund

Schedule of Revenues, Expenditures and Changes in Fund Balance­Budget to Actual- Public Health Special Revenue Fund

Schedule of Revenues, Expenditures and Changes in Fund Balance­Budget to Actual- Land Information Special Revenue Fund

Schedule of Revenues, Expenditures and Changes in Fund Balance­Budget to Actual - Revolving Loans Special Revenue Fund

Schedule of Revenues, Expenditures and Changes in Fund Balance­Budget to Actual -Jail Commissary Special Revenue Fund

Schedule of Revenues, Expenditures and Changes in Fund Balance­Budget to Actual -Transit- Bus Operations Special Revenue Fund

Schedule of Revenues, Expenditures and Changes in Fund Balance -Budget to Actual - Jail Assessment Special Revenue Fund

Schedule of Revenues, Expenditures and Changes in Fund Balance -Budget to Actual- Ozaukee County Senior Conference Special Revenue Fund

Schedule of Revenues, Expenditures and Changes in Fund Balance -Budget to Actual -Ozaukee County Fairgrounds Fund Special Revenue Fund

Schedule of Revenues, Expenditures and Changes in Fund Balance-Budget to Actual- Criminal Justice Collaborative Council Special Revenue Fund

Schedule of Revenues, Expenditures and Changes in Fund Balance -Budget to Actual - Caregiver Coalition Special Revenue Fund

Schedule of Revenues, Expenditures and Changes in Fund Balance-Budget to Actual- Debt Service Fund

Statement of Revenues, Expenditures and Changes in Fund Balance­Budget to Actual - Bicycle Trail Capital Projects Fund

Schedule of Revenues, Expenditures and Changes in Fund Balance­Budget to Actual - General Capital Projects Capital Projects Fund

Schedule of Revenues, Expenditures and Changes in Fund Balance -Budget to Actual- Capital Reserve- County Administrator Capital Projects Fund

Schedule of Revenues, Expenditures and Changes in Fund Balance-Budget to Actual - Support Services Capital Projects Fund

Schedule of Revenues, Expenditures and Changes in Fund Balance -Budget to Actual -Water Projects Capital Projects Fund

Schedule of Changes in Assets and Liabilities - Agency Funds

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99

100

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103 104-105

STATISTICAL SECTION

OZAUKEE COUNTY, WISCONSIN Comprehensive Annual Financial Report

December 31, 2013

Table of Contents (Continued)

Net Position by Component- Last Ten Fiscal Years Changes in Net Position- Last Ten Fiscal Years Net Changes in Fund Balance, Governmental Funds - Last Ten Fiscal Years Fund Balance, Governmental Funds- Last Ten Fiscal Years Government-wide Revenues by Source- Last Ten Fiscal Years General Revenue by Source- Last Ten Fiscal Years Property Tax Levies and Collections- Last Ten Fiscal Years Property Tax Rate- Direct and Overlapping Governments- Last Ten Fiscal Years State, Municipal, Utility and School District Underlying Tax- 10 Years Computation of Legal Debt Margin- Last Ten Fiscal Years Ratio of Net General Obligation Debt to Equalized Value and Net General

Obligation Debt Per Capita- Last Ten Fiscal Years Ratio of Annual Debt Service Expenditures for General Debt to Total General

Government Expenditures- Last Ten Fiscal Years Computation of Direct, Overlapping and Underlying Debt Demographic Statistics- Last Ten Fiscal Years Assessed and Equalized Values of Taxable Property- Last Ten Fiscal Years Equalized Property Value and New Construction- Last Ten Fiscal Years Wisconsin Counties Property Tax Levy Rates 2013 Ten Principal Industries and Commercial Entities- December 31,2013 and Three Years Ago Ten Principal Taxpayers- December 31, 2013 and One Year Ago Miscellaneous Statistics - December 31, 2013 Full-time Equivalent Employees by Function- Last Ten Fiscal Years Ozaukee County Operating Indicators Capital Asset Statistics by Function/Program- Last Ten Calendar Years Jail Inmate Population -12 Month Totals Surety Bonds of Principal Officials - December 31 , 2013 Ozaukee County Delinquent Tax History Government Accounting Standards Board STMT #45 -

Other Post Employment Benefits (OPEB's) Statistical Analysis

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110 111 112 113 114 115 116 117

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119 120 121 122 123 124 125 126 127 128 129 130 131 132 133

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June 25, 2014

DEPARTMENT OF ADMINISTRATION FINANCE DIVISION

Ozaukee County

THOMAS W MEAUX • County Administrator

To: The honorable members of the Ozaukee County Board of Supervisors and the Citizens of Ozaukee County, Wisconsin

A) COMPHREHENSIVE ANNUAL FINANCIAL REPORT (CAFR)

CAFR Overview

The comprehensive Annual Financial Report (CAFR) of Ozaukee County, Wisconsin (County) for the year ended December 31, 2013 is hereby submitted for your information. Responsibility for both the accuracy of the data and the completeness of the presentation, including all disclosures, rests with management. To the best of our knowledge and belief, the enclosed data accurately presents the financial position and results of operations of the various funds and component units of Ozaukee County, Wisconsin in all material respects and completeness. All disclosures necessary to enable the reader to gain an understanding of Ozaukee County, Wisconsin activities have been included.

The CAFR is presented in three sections:

The unaudited Introductory Section includes this letter of transmittal, the County's organizational chart, and a list of principal elected and appointed officials. It is designed to give some basic background information to the reader. The Financial Section includes the independent auditors' report on the basic financial statements, required supplementary information, and the combining and individual fund statements and schedules. The unaudited Statistical Section includes selected financial and demographic information generally presented on a multi-year basis.

B) Governmental Structure and Profile Ozaukee County is located in southeastern Wisconsin on the western Lake Michigan shoreline. It encompasses 232 square miles and consists of three cities, seven villages, and six towns with an estimated 2012 population of 86,395. Ozaukee County was formed by legislative act in 1853.

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The County is governed by a non-partisan, twenty-six members, Board of Supervisors (the Board) elected by districts to two-year terms. A Chairperson, elected from its members, is responsible for conducting the proceedings of the Board at its meetings and appointing standing committee chairpersons. The Board determines County policy and exercises legislative control under authority vested by state statutes. There are five oversight committees made up of five Board members each that exercise oversight of County departments and an Executive Committee comprised of the five oversight chairs and Board chair. The Board meets twice per month, its committees meet at least monthly. The Board adopts the annual County budget at its first meeting in November of each year. The County has a County Administrator appointed by the Board. The County Administrator exercises administrative control over all County operations not specially vested in elected officials.

The County operates a correctional facility, an elderly nursing care complex with a 300 bed capacity providing independent living through full nursing care, an asphalt hot-mix plant, nine parks featuring camping and water access, 30 miles of interurban bike trail, a Lake Michigan water rescue boat, a fairgrounds with curling rink, and two golf courses. The services it provides include law enforcement and emergency response; human services; aging services; public health services; educational, cultural and recreational activities; planning and zoning services; construction and maintenance of highways; public transit; support for the state judicial system; and general governmental activities.

C) Factors Affecting the Local Economy The County is located north of Milwaukee, WI. In 2013 the County was ranked the healthiest county in Wisconsin by the University of Wisconsin's Population Health Institute. It has the highest per capita income in Wisconsin owing to the large percentage population of college graduates, skilled trades, entrepreneurs, and professionals. According to the 2007-2011 US Census Bureau's American Community Survey the median household income is $75,854 compared to the national average of$51,371 in 2013 inflation adjusted dollars, the median home value is $256,800 compared to the national average of $174,600 and average annual unemployment rate is 3.8% compared to the averages for Wisconsin of 6% and national at 7.4%. Home ownership rate is 78.6% of housing stock. The population is mobile with 46% commuting out to other counties for work and 43% oflocal workforce commuting in. The area is a regional destination for tourism owing to its access to Lake Michigan and rural attractions. Schools are well funded with most students continuing in some post secondary education. The County's property tax mill rate as well as the taxes paid on the average home continues to be among the lowest, if not the lowest, in the state. Consumer spending, as represented by sales tax collections, continues to rebound in 2013 posting a 4% increase over last year's 5% increase in County sales tax revenue. Private investment in new business is recovering with the addition of a new Meijer's superstore. Service and retail sector employment increases continue to outplace manufacturing increases as a percentage of total employment. The prolonged national housing weakness was evident in the County but also is the sustained signs of recovery. Tax delinquencies are below last year in both dollar values at 15.8% and number of parcels at 30.5%. Delinquencies are now below 2007levels. Housing starts in 2013 were slightly above the five­year average and selling prices on existing stock increased 11% according to The Milwaukee Journal/Sentinel.

D) County Policies affecting the current financial position Ozaukee County is still cognizant of Great Recession that began in 2008. The County Board held property tax increases in the 2013 budget to less than one percent. The County Treasurer continues to work with delinquent taxpayers on a repayment schedule as numbers of properties and delinquent

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dollars continue to decline. Ozaukee County boasts only three foreclosures in the past twenty years and all involved unusual circumstances. County administration chose to take a conservative approach to projected revenues by estimating a 2% increase over last year's sales tax. We believed that signals of an economic recovery are now well established but maintaining a conservative revenue position will give us more flexibility at year end. State reimbursement for state mandated programs and revenue sharing are holding steady. Most other revenues were estimated to remain stable either due to federal commitments to reimbursement or revenue streams that are historically static.

Our optimism for the beginning of a real estate recovery was rewarded and our fees for title transfer came in on budget at $750,000. Surveys show housing sales prices have a double digit increase over last year. The county now suffers more from a lack of inventory than stagnant sales. Rising consumer confidence resulted in a 6% return in excess of budget for sales tax, and an almost 4% increase over last year. Constant monitoring and emphasis on budget ensured that overall expenditures were within budget.

Our enterprise funds came through for us this year. The past several years have experienced an overall loss with only our golf courses having consistent profits. This year our new Assisted Living addition, which opened in 2010, contributed a $525,000 profit to the senior nursing complex. These profits lead to more than a $750,000 gain for the entire senior nursing campus. Our Golf Courses had their worst performance in years due to weather but still managed a $128,000 profit. Our Highway Department experienced losses in several of the last years. The County transferred $1 million in 2013 to help erase the accumulated amount due the General Fund. Highway ended the year with an almost equal gain but that doesn't tell the whole story. The County is by far the largest client of the Highway enterprise fund and that cost center ended with almost $900,000 in unspent funds. This was the result of doing an equal amount of work for federal DNR grants to improve river and stream habitat.

Three bargaining units decertified in 2012 through a voting process. Only one bargaining unit remains, the Sheriffs LAW unit. There was a 1% wage increases in the 2013 budget. Vacant positions during the year were left open longer, required greater advocacy to refill, or went unfilled. We enhanced our wellness program and increased member deductibles to eliminate any increase to our health insurance plan cost.

The County decided in 2013 to bond for $6,885,000 to address deferred capital and maintenance. The Board believed the low interest rates and current need justified the action. The County was granted a Aaa credit rating by Moody's rating service. Currently the County has almost $26 million in debt but will repay 40% within five years and 70% within ten. The County is currently considering bonding for $10,000,000 in 2014 to repair and refurbish the senior care nursing home.

Our high water mark for General Fund Unassigned balances was 2007. Those reserves were subsequently drawn down during this extended recession. The County is still in excess of its self proscribed minimum for General Fund Unassigned balance of20% of operating expenditures at over 27%. For a more detailed examination of fund balance and results of operations consult the Management Discussion and Analysis section in the Financial Section.

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E) Financial Information Wisconsin State Statute and Administrative Rule Tax 19 require the County to submit annual audited financial statements by July 31 of each year. Debt issuance covenants also require the County to prepare financial statements in conformity with Generally Accepted Accounting Principals (GAAP) as promulgated by the Governmental Accounting Standards Board (GASB). Major federal and state programs impose additional audit requirements.

Financial planning and control is maintained through the annual budget process. This year the County's tax levy rate was again among the lowest in the state at $1.84 per $1,000 assessed value for 2014. An additional28 cents is also levied as a library assessment to County areas not served by a local library. All departments and agencies are required to submit a requested budget to the County Administrator in August. The County Administrator's budget is presented for review to the Executive Committee in late September. A legally required public hearing is held in early November and the County Board formally adopts the budget at its next meeting. The appropriated budget is adopted by cost category within departments. Budget to actual comparisons are provided in this report for each government fund where an appropriated annual budget has been adopted. Budget amendments during the year require approval by the County Board for transfers between departments (simple majority) or from fund reserves (2/3 majority). Transfers within a department may not require Board approval depending on the amount. The County has designed and implemented a comprehensive framework of internal controls to protect the assets form loss, then, or misuse and to compile sufficient, reliable data for the presentation of financial statements. Since internal controls are designed not to outweigh the benefits, the framework has been designed to provide reasonable but not absolute assurance.

Cash temporarily idle during the year is invested with the objectives of safeguarding assets, maintaining liquidity for cash flow requirements, and return on investment. All investments must be insured and/or collateralized. Investments are generally within money market accounts, certificates of deposit, repurchase agreements, the State of Wisconsin Investment Pool, and US governn1ent agency obligations. The average return on investments was about .5% for 2013.

The Board and Executive Committee monitor all borrowing plans of the County. All new indebtedness requires a three-fourths majority of members elect of the Board. Wisconsin state statute limits general obligation borrowing to an amount equivalent to 5% of the equalized valuation of taxable property. At December 31,2013, the County had almost 95% of the limit available. Equalized value for all property within the County was $10.226 billion. The statutory debt limit was over $511 million and total County debt was $25,770,000. Of the total debt, $8.7 million (34%) was the responsibility of the enterprise funds.

The County is authorized to self-insure its workers compensation program. That average cost for the past three years has been about $250,000 annually for claims and administrative fees. All other insurance is covered by commercial insurance. The County participates in the Wisconsin County Mutual Insurance for the provision of general liability, errors and omissions, police professional and automobile coverage. The health insurance coverage is through the Wisconsin Counties Association. Management believes this distribution of risk will be adequate to protect the County and meet claims as they come due. All insurance is funded and accounted for in the department cost centers.

The County maintains a five-year Capital Improvement Plan to identify and fund capital projects. A non­lapsing Capital Reserve Fund with a proposed balance of $1 million was established to supplement tax

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levy for desired capital projects. The 2013 budget designated 90% to address debt payments and projects. Results of2013 operations to the fund will leave the balance at about $800,000. The Board took action in March of2014 to transfer al12013 Sales Tax revenue in excess ofbudget to this fund, $385,000.

Ozaukee County maintains fund balances in all its governmental funds. The General Fund is the largest with several Special Revenue Funds having smaller balances. The County's Policies and Procedures manual requires that the General Fund maintain an Undesignated Fund Balance of at least 20% of the budgeted operating General Fund expenditures and a minimum combined undesignated fund balance of the General Fund, and select Special Revenue Funds (Human Services, Public Health, Aging, and Transit) equal to 12% of their combined budgeted operating expenditures. The exact percentage is determined annually by the Finance Committee to provide stability to the County as a whole. Unassigned funds (available for use) and assigned funds (management's intended use) are accounted for separately from committed (self-imposed legal restriction) and restricted funds (imposed by an outside party).

F) Other Information The accounting firm of Schenck SC was engaged to conduct an audit of the basic financial statements and to issue a report on internal controls. The goal of the independent audit was to provide reasonable assurance that the financial statements of Ozaukee County are free of material misrepresentation. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principals used and any significant estimates made by management, and evaluating the overall financial statement presentation. The independent auditor concludes, based on the audit, that there was a reasonable basis for rendering an unqualified opinion that Ozaukee County's financial statements for the fiscal year ended December 31, 2013 are fair I y presented in conformity with GAAP and GASB. The independent auditors' report is presented as the tl.rst component of the financial section of the CAFR.

The County is required to undergo a federally mandated "Single Audit" designed to meet the special needs of federal and state grantor agencies. The standards governing Single Audit engagements require not only a report on the fair presentation of the financial statements but also on the internal controls and compliance with the legal requirements pertaining to internal controls and the administration of federal and state awards. The single audit report is available through the Department of Administration- Finance division or its website.

GAAP and GASB require management to provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). The MD&A is designed to compliment this letter of transmittal and should be read in conjunction with it. Ozaukee County's MD&A can be found immediately following the report of the independent auditor.

Ozaukee County has received the Certificate of Achievement for Excellence in Financial Reporting for the past five consecutive years and the Certificate of Recognition for Budget Preparation for the last three consecutive years.

9

Acknowledgements The preparation of this report would not have been possible without the dedicated service of the entire staff of the Department of Administration- Finance Division, various departments, and especially the County Administrator and Board of Supervisors for their support and commitment to maintaining the highest standards of professionalism in the management of Ozaukee County.

Respectfully submitted,

A~1z~ Andrew J Lamb, CPA, CIA Finance Director, Ozaukee County

10

Government Finance Officers Association

Certificate of i\chievement for Excellence

in Financial Reporting

Presented to

Ozaukee County

Wisconsin

For its Comprehensive Annual Financial Report

for the Fiscal Year Ended

December 31, 2012

Executive Director/CEO

11

I Finance

--- Child Support

--- Corporation Counsel

--- County Clerk

--- Finance

--- Human Resources

--- Revolving Loans

--- Tax

--- Information Technology

--- Treasurer

I

I

Citizens

OZAUKEE COUNTY

ORGANIZATIONAL CHART

I

County Board I County Board Executive II County Administrator

Committee

Na'"'" "">"~ Health and Human

Services

--- Fair Park --- Human Services

--- Land Information --- Public Health

--- Parks & Golf --- Aging Services

--- Planning, --- Lasata Care

--- Resources & --- Lasata Heights

Land Mgnt. --- RCAC

--- Register of Deeds --- Veterans Services

--- UW-Extension

12

I Public Safety Public Works

--- Clerk of Courts --- County Roads &

--- Coroner Bridges

--- District Attorney --- Highway

--- Family Court --- Transit

Commissioner --- Facilities Mgnt.

--- Emergency Mgnt.

--- Probate

--- Sheriff

Elected

OZAUKEE COUNTY, WISCONSIN

COUNTY BOARD OF SUPERVISORS & STANDING COMMITTEES OF THE COUNTY BOARD

Chairperson ............................................................................................................... Lee Schlenvogt Vice-Chairperson ................................................................................................... Kathlyn T.Geracie Second Vice-Chairperson .......................................................................... Daniel P Becker

County Administrator ........................................................................................... Thomas W. Meaux

Finance Committee Daniel P Becker- Chairperson* Richard C Nelson -Vice-Chairperson

Jacob Curtis Gustav W. Wirth. Jr James H Uselding

Health & Human Services Committee Cynthia G. Bock -Chairperson* Karl V. Hertz - Vice-Chairperson

Thomas H Richart Richard H Bauzenberger Irena Macek

Natural Resources Donald G Dohrwardt - Chairperson* Jennifer K. Rothstein - Vice-Chairperson

Glenn F. Stumpf John J. Slater Donald Korinek

Executive Committee

Public Safety Committee Nancy Szatkowski - Chairperson* Robert A Brooks - Vice-Chairperson

Paul Melotik Gerald E. Walker Joseph A Dean

Public Works Committee Kathlyn T.Geracie- Chairperson* Thomas E. Winker - Vice-Chairperson

Daniel R. Buntrock LeRoy C Haeuser Barbara J. Jobs

Lee Schlenvogt - Chairperson Kathlyn T Geracie - Vice-Chairperson

Daniel P Becker Nancy Szatkowski Donald G Dohrwardt Cynthia G. Bock

* Chairperson of each standing committee also serves on the Executive Committee

13

Ozaukee County, Wisconsin List of Principal Officials

December 31, 2013

County Administrator: Thomas W. Meaux

Department Heads

ADRC Michelle Pike

CLERK OF COURTS (elected) Mary Lou Mueller

CORONER (elected) John Holicek

CORPORATION COUNSEL Rhonda Gorden

COUNTY CLERK (elected) Julianne Winkelhorst

DISTRICT ATTORNEY (elected) Adam Gerol

EMERGENCY MANAGEMENT Mark Owen

FINANCE

LASATA CARE AND FACILITIES Ralph Luedtke

PARK COMMISSIONER Andrew Struck

PLANNING, RESOURCES, AND LAND MANAGEMENT Andrew Holschbach

PUBLIC HEALTH Kirsten Johnson

REGISTER OF DEEDS (elected) Ronald Voigt

SHERIFF (elected) Maury Straub

INFORMATION TECHNOLOGIES Jason Dzwinel

Andrew Lamb TREASURER (elected) Karen Makoutz

HIGHWAY, TRANSIT, AND FACILITIES Robert Dreblow UNIVERSITY EXTENSION

Daniel O'Neil HUMAN RESOURCES Jason Dzwinel

HUMAN SERVICES Michael Lappen

14

VETERANS' SERVICES Kevin Johnson

henck 'i<•'

CPA& AND NPJCN

To the County Board Ozaukee County, Wisconsin

INDEPENDENT AUDITORS' REPORT

Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of Ozaukee County, Wisconsin ("the County") as of and for the year ended December 31, 2013, and the related notes to the financial statements, which collectively comprise the County's basic financial statements as listed in the table of contents.

Management's Responsibility for the Financial Statements

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

Auditors' Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the County's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the County's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

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

15

Appleton • Fond du Lac • Green Bay • Manitowoc · Milwaukee · Oshkosh • Sheboygan . Stevens Point . Wausau

800-236-2246 • schencksc.com

Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the County as of December 31, 2013, and the respective changes in financial position and, where applicable, cash flows thereof and the respective budgetary comparison for the general fund, and the human services and county roads and bridges special revenue funds for the year then ended in conformity with accounting principles generally accepted in the United States of America.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management's discussion and analysis on pages 17 through 30 be presented to supplement the basic financial statements. Such information, although not part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the County's basic financial statements. The financial information listed in the table of contents as supplementary information and the other information, such as the introductory and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The supplementary information is the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information, is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

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

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated June 11, 2014, on our consideration of the County's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the County's internal control over financial reporting and compliance.

Certified Public Accountants Green Bay, Wisconsin June 11, 2014

16

MANAGEMENT'S DISCUSSION AND ANALYSIS

FINANCE DEPARTMENT P.O. BOX 994

Port Washington, Wisconsin 53074-0994 Phone: (262) 284-8240 Fax: (262) 284-8287

E-mail: [email protected]

Management's Discussion and Analysis December 31, 2013

The management of Ozaukee County, Wisconsin (the County) offers readers of the County's basic financial statements this narrative overview and analysis of the financial activities for the fiscal year ended December 31, 2013. We encourage readers to consider the information presented here in conjunction with additional information provided in this report.

FI~ANCIAL HIGHLIGHTS COUNTY WIDE • The assets and deferred outflows of the County exceeded its liabilities and

deferred inflows at December 31, 2013, by $73,354,894 (net position). Unrestricted net position used to meet ongoing obligations to citizens and creditors represented $13,134,469 of the total.

• During 2013 results of governmental activities increased net position by $381,530 and business-type activities increased net position by $1,870,021 per GASB 34 reporting (pgs 32-33).

• As of December 31, 2013, the fund balance for the governmental funds totaled $20,925,111; and proprietary fund net position totaled $16,807,541 excluding internal service fund net position of$19,924.

• The unassigned fund balance for the general fund was $5,671,954 as of December 31,2013. This represents 26.3% ofthe total general fund expenditures.

• The County's total net general obligation debt increased by $5,685,000 (28.3%) in 2013.

OVERVIEW AND USE OF THE BASIC l<'INANCIAL STATEMENTS

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

17

GOVERNMENT-WIDE FINANCIAL STATEMENTS: The government-wide financial statements (pages 31-33) are designed to provide readers with a broad overview of the County's finances, using the accrual basis of accounting, in a "bottom line" format similar to private sector reporting.

The statement of net position presents information on all of the County's assets, liabilities and deferred outt1ows/inflows of resources with the difference reported as net position. Net position is presented in five categories. The categories listed below are presented in order of liquidity:

• Nonspendable- Assets that never can be spent, such as inventory. • Restricted-· Assets legally restricted by outside parties, such as bondholders,

grantors, or enabling legislation. • Committed- Self-imposed local legislation limiting the use of reserves. • Assigned- Self-imposed rules governing intent but not legislated. • Unassigned- Assets that are in a spendable form that are not restricted,

committed, or assigned. Increasing or decreasing trends in net position may represent an indicator of the County's improving or deteriorating financial position.

The statement of activities presents information showing how the County's net position changed during the reported year. Both the gross and net cost of various activities (including governmental and business-type) and their funding sources are summarized. All changes in net position are matched to the event in the fiscal period in which it occurs regardless of the timing of the related cash flows. Thus, revenues and expenses are reported in this statement for some events that will result in future cash flows. (e.g., uncollected taxes and earned but unused employee benefits).

Both of these government-wide financial statements distinguish functions of Ozaukee County that are principally supported by taxes and intergovernmental revenues (governmental activities) from functions that are intended to recover all or a material portion of their costs though user fees and charges (business type activities). The governmental activities of the County include general government, public safety, transportation, health and human services, conservation and development, culture and recreation. The business- type activities include golf courses, a continuum of care senior campus, and a highway construction/maintenance operation.

FUND FINANCIAL STATEMENTS: A fund is a grouping of related accounts that is used to maintain control over resources segregated for specific activities or objectives. The County, like other state and local governments, use fund accounting to ensure and demonstrate compliance with finance­related legal requirements. This traditional presentation focuses on the sources and uses of liquid resources and represents the basis for developing the County's financial plan (the budget). All of the County's funds can be divided into three categories: governmental, proprietary and fiduciary.

18

Governmental funds: Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at fiscal year end. Such information may be meaningful in evaluating the County's near-term financing requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the infonnation presented for governmental funds with similar information presented for governmental activities in the government­wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and government-wide activities.

The County maintains 21 active individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenue, expenditures, and changes in fund balances for the General Fund and the Human Services and County Roads and Bridges special revenue funds, all of which are considered major funds. Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of the nonmajor government funds is provided in the form of combining statements elsewhere in this report.

The County adopts an annual appropriated budget for its general fund, special revenue funds, debt service fund, and capital projects fund. A budgetary comparison statement has been provided for the general fund and for each individual major special revenue fund to demonstrate compliance with the budget.

The basic governmental fund financial statements can be found on pages 34-42 of this report.

Proprietary funds: The County maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The County uses enterprise funds to account for its golf courses, highway, and continuum of care senior campus. This consists of Lasata Care Center nursing home, Lasata Heights Apartments, and the Lasata Crossing's Residential Care Apartment Complex (RCAC). Internal service funds are used to accumulate and allocate funds internally among the County's various functions. The County uses an internal service fund to account for its Information Technology, computer and network maintenance function. Because this service predominantly benefits government rather than business type functions, it is included within the governmental activities in the governn1ent-wide financial statements.

19

Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the nursing home, golf courses and highway, which are considered to be major funds. Data from the other enterprise funds are combined in a single, aggregated presentation in the proprietary fund financial statement.

The basic proprietary fund financial statements can be found on pages 43-46 of this report.

Fiduciary funds: Fiduciary and Agency funds are used to account for resources held for the benefit of parties outside the government. Fiduciary and agency funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the County's own programs. The accounting used for fiduciary and agency funds is much like that used for proprietary funds.

The basic agency fund financial statements can be found on page 47 of this report.

NOTES TO THE BASIC FINANCIAL STATEMENTS: The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the basic financial statements can be found on pages 48-72 of this report.

Other Information: The combining statements referred to earlier in connection with nonrnajor governmental funds and internal service funds are presented immediately following the notes to the basic financial statements. Combining and individual fund statements and schedules can be found on pages 73-105 of this report.

The 2011 biennial state budget enacted in Act 32 limits local governmental units to increases in the property tax levy for budget years 2012 and 2013. This was extended for the 2014 calendar budget. The restriction allows for only an annual increase equal to the taxes generated from net new construction. Three exceptions are attached to the Act, (1) passage of a referendum to exceed these imposed limits, (2) fund services transferred from (positive) or to (negative) another governmental unit, and (3) the cost of any new debt issued passed by a 75% majority of elected officials. Although the focus of the control is the operating levy, the debt levy is indirectly controlled. Ozaukee County's existing ordinances already require the 75% approval criteria for new debt. Ozaukee County's net new construction limit was .84% for the 2014 budget. Factoring in new debt resulted in another 4.13% increase. The appropriated budget called for a 3.81% increase. The county's basic mill rate increased to $1.94/$1 ,000 from $1.84/$1 ,000 equalized value. Additional taxes are levied on non-library areas. The County's tax levy still remains among the lowest of all Wisconsin counties.

20

GOVERNMENT-WIDE FINANCIAL ANALYSIS

The discussion and analysis requires focus on the current-year results in comparison with the prior year and discussion on any positive or negative variance.

As noted earlier, net position may serve over time as a useful indicator of a government's financial position. In the case of Ozaukee County, assets and deferred outflows exceed liabilities and deferred inflows by $73,354,894 at the close of the most recent fiscal year.

By far the largest portion of the County's net position (78%) reflects its net investment in capital assets (e.g. land, buildings, improvements, infrastructure, machinery, etc.) at historic cost, less any outstanding related debt used to acquire those assets. The County uses these capital assets to provide services to the citizens; consequently, these assets are not available for future spending. Although the County's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources since the capital assets themselves cannot be used to liquidate these liabilities.

Ozaukee County, WI

Condensed Statements of Net Position December 31, 2013 and 2012

Government Business-Type

Activities Activities Total

2013 I 2012 2013 I 2012 2013 I 2012

Curre 1t and Other Assets $ 53,390,699 $44,411,339 $3,437,247 $1,666,171 $56,827,946 $46,077,510

Capital Assets _lb§.§?,5!~1 51,659,859 24,413,351 24,908,101 77,102,992 $76,567,960

Total Assets 106,080,340 96,071,198 27,850,598 26,574,272 133,930,938 $122,645,470

Deferred Outflows of Resources 154,076 174,619 154,076 174,619

Current Liabilities 9,878,251 7,498,996 684,434 601,906 10,562,685 8,100,902

Long-term Obligations 19,760,033 13,413,033 10,358,623 10,788,891 30,118,656 24,201,924

Total Liabilities 29,638,284 20,912,029 11,043,057 11,390,797 40,681,341 32,302,826

Deferred Inflows of Resources 20,048,779 19,167,965 245,955 20,048,779 19,413,920

Net position:

Net Investment in Capital

Assets 41,733,739 41,189,859 15,198,351 15,293,101 56,932,090 $56,482,960

Restricted 3,288,335 3,600,277 3,288,335 $3,600,277

Unrestricted 11,525,279 11,375,687 1,609,190 (355,581) 13,134,469 $11,020,!06

Total Net Position $56,547,353 $56,165,823 $16,807,541 $14,937,520 $73,354,894 $71,103,343

21

The County's unrestricted net position of$13,134,469 may be used to meet the County's ongoing obligations to citizens and creditors.

At the end of the current fiscal year, the County is able to report positive balances in all three categories of net position; both for the County as a whole, as well as for its separate governmental and business-type activities.

Ozaukee County, WI

Statement of Activities and Change in Net Position December 31, 2013 and 2012

Governmental Business-type Activities Activities Total

2013 I 2012 2013 I 2012 2013 I 2012

Revenue: Program Revenue:

Charges for services s 5,731,598 $ 7,576,792 $28,760,610 $27,879,882 $ 34,492,208 $35,456,674 Operating grants and

contributions 11,004,910 I2,787,190 1,406,208 1,597,468 I2,41 I,ll8 14,384,658

Capital grants and contributions 1,894,843 1,307,499 - ' I ,894,843 1,307,499

General Revenue: Property tax 19,102,597 19,154,359 245,955 , 19,348,552 19,154,359

Sales and other taxes 7,487,260 7,202,740 , 7,487,260 7,202,740

Federal/State grants not restricted 1,698,501 155,000 - - 1,698,501 155,000

Investment income 695,026 249,028 572 35 695,598 249,063 Miscellaneous 78,580 I ,269,958 - - 78,580 I ,269,958

Gain on capital assets - - - - - -Total Revenue 47,693,3I5 49,702,566 30,413,345 29,477,385 78,106,660 79,179,95 I

Expenses: General government 9,653,422 9,115,344 - - 9,653,422 9,115,344

Public safety 11,604,168 I2,549,843 - - 11,604,168 12,549,843

Health and human services 13,512,986 I4,300,564 - - 13,512,986 14,300,564

Public works 7,053,748 7,46I,l49 . - 7,053,748 7,461,149

Culture and recreation I,l I4,073 I,8I4,331 - - 1,114,073 I,8I4,331

Conservation and development 2,825,I 57 3,244,606 - . 2,825,157 3,244,606

Interest on debt 486,016 556,346 - - 486,0I 6 556,346 Nursing Home . - 14,717,834 I5,597,171 I4,717,834 15,597,171

Highway . . 10,764,605 9,042,591 I0,764,605 9,042,59I Independent Living Facility . - 543,209 566,453 543,209 566,453

Golf course - - I ,487,363 1,781,589 I ,487,363 I ,781,589

Lasata RCAC - . 2,092,527 2,095,996 2,092,527 2,095,996

Total Expense Before Transfers 46,249,571 49,042,183 29,605,538 29,083,800 75,855,108 78,125,983

Increase in Net Position I,443,744 660,383 807,807 393,585 2,251,552 1,053,968

Transfers (1,062,214) - 1,062,214 - - -Increase in Net Position 381,530 660,383 1,870,021 393,585 , 2,251,551 " I ,053,968

Net Position January I 56,165,823 55,505,440 I4,937,520 14,579,033 71,I03,343 70,084,473

Change in accounting princip - - - (35,098) - (35,098)

Net Position December 3I $56,547,353 $56,165,823 $ 16,807,541 $ 14,937,520 $73,354,894 $71,103,343

22

Governmental Funds

Governmental funds increased the County's net position by $6,239,017 (pg 36) during the current year. The driver of this increase in fund balance was the result oflong term debt issued for general capital projects ($6,885,000). It will fund the following projects: repair county roads, building improvements in the administration building along with projects at the justice center and fairgrounds. Details of significant changes are listed below.

Key elements of change are as follows:

• General Fund operations provided a net negative change in fund balance of $479,854:

o The County Board transferred $1 million to the Highway internal service fund to alleviate an amount owed to the General Fund from several years of operating deficits.

• State Shared Taxes was $260,014 under budget as a result of the state shifting a similar amount to state aid for counties with a located utility. This is recorded as revenue in our non-lapsing Capital Reserve Fund.

• Sales Tax revenue exceeded budget by $386,393 (6%). A recovering economy and conservative budgeting both played a role.

• Court security expenses were over budget by $65,344 and Sheriffs patrol was over budget by $120,671. This resulted from overtime to compensate for a larger than average staff turnover.

• The Human Services (HS) Department (a major fund) posted an operating gain of $544,914. In 2013 HS received $519,178 more in state reimbursement than budgeted. The state revenue was the result of our new director making staff changes that allowed for more reimbursement.

• Our County Roads and Bridges department posted an operating surplus of $1,054,074. All of this department's expenses are the result of charges from the Highway internal service fund reimbursement for work. Less snow plowing and Highway choosing to work on federally funded capital projects grants contributed to less than budgeted work on County road maintenance.

• Revolving Loans, an economic development initiative, received $105,131 more back than it loaned.

• Transit had a $160,019 positive variance due to a decrease in capital outlay. • Debt service fund had a $148,732 positive change in fund balance because

budgeted transfers in were greater than total expenditures. • Other positive or negative variances were considered immaterial for this report.

23

Expense and Program Revenue - Governmental Activities

$16,000,000

$14,000,000

$12,000,000

$10,000,000

$8,000,000

$6,000,000

$4,000,000

$2,000,000

$-

BExpense • Program Revenue

Revenues by Source - Governmental Activities

Sales 15%

Grants

Property 43%

Investment Income

24

Charges for Services

13%

Operating Grants and

Contributions 24%

Business-type Activities

Business-type activities increased the County's net position by $1,870,021. Key elements of this change are as follows:

• The Highway Department recorded a gain of$993,426. The Highway Department's received a Sl ,000,000 transfer in from the general fund to alleviate prior years' underfunding.

• The Golf Courses had a fifth straight year of profit at $128,188 after six consecutive annual losses. Operation and maintenance expenses went down by $254,611.

• The Lasara Campus, which offers a continuum of care for seniors from independent living through full nursing care, had a combined increase in net position of$748,407. The assisted living component first opened in 2010 had been expected to breakeven during 2014 but was ahead of schedule and had an operating profit of$525,417 in 2013.

16,000,000

14,000,000

12,000,000

10,000,000

8,000,000

6,000,000

4,000,000

2,000,000

Nursing Home Highway Ind Appartrnents Golf RCAC

Revenues by Source - Business-type Activities

Operating Grants and

Contributions 4.62%

25

_______ Investment

Income 0.00%

~----Charges for Services 94.57%

Financial Analysis ofthe Ozaukee County's Funds:

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

Governmental Funds: The focus of the County's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the County's financial requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year.

As of the end of the current year, the County's governmental funds reported combined ending fund balances of$20,925,111 an increase of$6,239,017. The unassigned fund balance of$5,671,954 is available for spending at the County's discretion. The remainder of the fund balance is categorized as follows:

• Non-spendable for delinquent property taxes ($1,410,714) and prepaid items ($716,154)

• Restricted in the amount of$6,490,988 as a result of external restrictions or enabling legislation.

• Committed by the County Board for specific purposes in the amount of $6,484,076.

• Assigned by the Finance Committee for specific purposes in the amount of $151,225.

The General Fund is the main operating fund of the County. At the end of the current year the assigned and unassigned fund balance of the general fund was $6,115,384 and the total fund balance was $8,083,534. As a measure of the funds liquidity, it may be useful to compare both assigned and unassigned fund balances and total fund balance to the total fund's expenditures. Liquid fund balance represents 28.3% of the total fund expenditures, while total fund balance represents 3 7.4% of that same amount.

The County's unrestricted General Fund balance decreased by $479,854 during the current year. The key factor in this change was the transfer of $1 million dollars to the Highway internal service fund.

The County's Policy and Procedures manual mandates a General Fund Unassigned Fund balance at a minimum of 20% of General Fund expenditures. Additionally, it requires a minimum of the combined reserves for the General, Human Services, Public Health, Aging, and Transit Funds equal to 12% of their total expenditures. We believe these minimum requirements help to enhance and maintain our bond rating. At the end of 2013, these minimum fund balances requirements were equal to 28% and 21% respectively of the 2014 budget. This percentage is only slightly down from the pre­recession highs of 29% and 22%.

26

Proprietary Funds: The County's proprietary funds provide the same type of information found in the County's government-wide financial statements, but in more detail.

Unrestricted net position of all the Proprietary operations at the end of the year amounted to $1,609,190. This positive position was the result of net operating surpluses for our nursing care campus, golf courses, and highway operations. Factors concerning the operational results of this fund have already been discussed in the discussion of the County's business-type activities.

Capital Reserve Fund: In 2004 the County established a Capital Reserve Fund to provide a funding source for desired capital projects. Over the years any sales tax collected in excess of budget and any new revenue sources were designated for this fund. The goal was to maintain a $1M balance. That goal was achieved in 2007. Since that time economic conditions have stressed those goals. At the end of2013 the balance was essentially brought back to its stated goal with a balance of$807,006 by decreasing the budget reliance for operations. (Page 82)

General Fund Budgetarv Highlights.

Differences between the original budget and the final amended budget amounted to a $313,409 increase in revenues. This was the result of various grants for labor, equipment, and supplies. Differences between original and final budget for expenditures was due to additional expenses for new grants, carryovers from the previous year, or internal transfers within the General Fund approved by the County Board.

Variance to Final Budget

The $219,098 (1.0%) difference between the final budget and actual revenues was primarily due to Sales Tax revenue exceeding budget.

27

Capital Asset and Debt Administration

Capital Assets: The County's investment in capital assets for its governmental and business-type activities as of the end of the current year amounts to $77,102,998 (net of accumulated depreciation). This investment in capital assets includes land, land improvements, buildings and improvements, machinery and equipment, vehicles, boat, and public domain infrastructure (highways and bridges).

Ozaukee County's Capital Assets

(net of accumulated depreciation)

I Governmental Activities Business Activities I Totals

l 2013 I 2012 2013 I 2012 I 2013 Land $12,066,911 $12,058,438 $263,754 $292,848 $12,330,665

Land Improvements 764,649 771,380 1,590,164 1,369,965 2,354,813

Build. & Improvements 13,892,197 14,099,682 15,352,904 16,010,624 29,245,101

Machinery & Equip 4,184,362 4,803,176 6,983,835 7,006,752 11 '168, 197

Infrastructure 21,671,576 17,596,212 - - 21,671,576

VVork In Progress 109,946 2,330,971 222,700 227,912 332,646

Total $52,689,641 $51 ,659,859 $24,413,357 $24,908,101 $77' 102,998

Major capital asset events during 2013 included the following:

• Building Improvements at Lasata Care Center $250,000. • Miscellaneous Machinery & Equipment at Highway $650,000, • Roadway network improvements/repairs $4,000,000,

Additional information on the County's capital assets can be found in Note C.4 of the notes to the financial statements on pages 62-63 of this report.

28

I 2012 $12,351,286

$2,141,345

$30,110,306

$11,809,928

$17,596,212

$2,558,883

$76,567,960

Long-term Debt: At the end of the current year the County had total general obligation debt outstanding of$25,770,000. All this debt is backed by the full faith and credit of the County.

Ozaukee County's Outstanding Debt General Oblig,..::a.::ti.:::..on:..:__:::D~e-=-bt.:__ ____ ,---------------1

I Governmental Activities I Business Activities I Totals

1'-----'2=o:...:...13~ _ _j___ l--=2o:_:1-=-2 --"-'~-=2.::_o 1=3--'l--=2=o~12=--_L__I_;2=oc..:...13~ I 2012 General obligation debt

'---B_o'---n-'-d-'-s _an_d_n-'o--'-te'-"s ___ $;:;_1_6,555,000 $10,470,000 $9,215,000 $9;.615,000 $25,770,000 $20,085,000

The County maintains a Aaa bond rating from Moody's Investor Service for long-term debt. This rating was first conferred upon the County in 2009.

State statute limits the amount of general obligation debt the County may issue to five percent (5%) of its total equalized property valuation. The current debt limit for the County is $511,322,805, which is significantly in excess of the County's $25,770,000 outstanding general obligation debt. Additional information on the County's long-term debt can be found in Note C.6 on pages 65-66 of this report.

Economic Factors and Next Year's Budget Rates

The County's annual unemployment rate for April2014 of 4.6% rates favorably to the state and nation. The economic outlook is fairly stable when considering the macro economic situation. The County's high proportion of skilled, professional and entrepreneurial people in the general population mitigates much volatility.

• The increase in the County's equalized property tax base provided by real growth is estimated at $83 million (0.8%) for 2014. Devaluation of all existing property equalized value was $168M (1.66%). Net cumulative devaluation of existing property and new construction from 2007 until2013 on an equalized basis is 9.6%. Equalized values are based on recorded historic home sales and may not be indicative of actual current market conditions.

• The housing market has tight inventory supporting some increase in sale price but the new construction market remains soft.

• Proceeds from County sales and use tax are expected to increase compared to the 2013 budget. The actual experience in 2013 demonstrated strengthening consumer confidence. The volume of taxable merchandise sold was higher than prior to the recession even when inflation is factored. All budgeted sales and use tax revenue are used to directly reduce the annual property tax levy.

29

• County wage rates are budgeted to increase 1% in 2014 and Group Health insurance is not expected to increase after the county implemented plan and deductible changes. All non-protected employees will contribute 7% up from 6.6% to their defined benefit retirement plan and all new hire protected employees will contribute the same. The County matches these contributions.

• Three of the four unions negotiating with the County decertified in 2012 leaving only the Sheriffs LAW bargaining unit remaining in 2014.

• The County expects to retain its Aaa bond rating and is expected to bond for $10 mmion to renovate our nursing home.

All of these factors were considered in preparing the 2014 County fiscal year budget.

Requests for Information

The financial report is designed to provide a general overview of Ozaukee County's finances for all those with an interest in the government's finances. Additional information on items provided in this report can be requested in writing addressed to the Ozaukee County Finance Director, 121 W. Main Street, Port Washington, WI 53074 or viewed on the County website www.co.ozaukee.wi.us under the Finance Department.

30

ASSETS Cash and Investments Receivables

Taxes Delinquent taxes Delinquent special assessments Accounts Loans

Internal balances Due from other governments Inventories and prepaid items Capital assets not being depreciated

Land Construction In progress

Capital assets being depreciated Land improvements Buildings and building improvements Machinery and equipment Infrastructure Less: Accumulated depreciation

TOTAL ASSETS

DEFERRED OUTFLOWS OF RESOURCES Deferred charge on refunding

LIABILITIES Accounts payable Accrued liabilities Accrued interest payable Due to other governments Unearned revenues Custodial and special deposits Long term obligations

Due within one year Due in more than one year

TOTAL LIABILITIES

DEFERRED INFLOWS OF RESOURCES Property taxes

NET POSITION Net Investment in capital assets Restricted

Revolving loans receivable Veteran's memorial Forfeitures Land information Jail commissary Caregiver coalition Criminal justice collaborative council Ozaukee County senior conference Debt service

Unrestricted TOTAL NET POSITION

OZAUKEE COUNTY, WISCONSIN Statement of Net Position

December31, 2013

Governmental Activities

$ 23,283,267

21,784,271 1,637,964

55,679 510,320

2,602,320 154,449

2,587,709 774,720

12,066,911 109,946

2,011,458 31,482,587 18,593,579 42,023,885

(53,598,725)

1 06,080,340

154 076

2,763,097 2,060,483

205,825 2,627,318

372,829 1,848,699

1,767,629 17,992,404

29,638,284

20 048 779

41,733,739

2,921,147 22,480 86,285 90,269

105,793 3,137

23,260 12,391 23,573

$ 11 525tf79 56:'547.353

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

31

Primary Government

Business-type Activities Total

$ 100,860 $ 23,384,127

21,784,271 1,637,964

55,679 1,001,090 1,511,410

2,602,320 (154,449) 885,888 3,473,597

1,603,858 2,378,578

263,754 12,330,665 222,700 332,646

4,448,130 6,459,588 29,776,818 61,259,405 19,653,603 38,247,182

42,023,885 (29,951,654} (83,550,379}

27,850,598 133.930,938

154,076

92,189 2,855,286 137,223 2,197,706

205,825 380 2,627,698

454,642 827,471 1,848,699

499,453 2,267,082 9,859,170 27,851,574

11,043,057 40,681,341

20 048 779

15,198,351 56,932,090

2,921,147 22,480 86,285 90,269

105,793 3,137

23,260 12,391 23,573

1 609,190 13:134,469 $ 16:807.541 $ 73 354.894

Functions/Programs Pnmary Government

Governmental Activities General government Public safety Public works Health and human services Culture and recreation Conservation and development Interest and fiscal charges Total Governmental Activities

Business-type Activities Nursing Home Highway Independent Living Facility Golf Lasata RCAC Total Business-type Activities

Total Primary Government

OZAUKEE COUNTY, WISCONSIN Statement of Activities

For the Year Ended December 31, 2013

Charges for Expenses Services

$ 9,653,422 $ 1,962,522 11,604,168 1,800,240 7,053,748 720,356

13,512,987 924,500 1,114,073 226,117 2,825,157 97,863

486,016 46,249,571 5,731,598

14,717,834 12,856,694 10,764,605 10,751,607

543,209 831,028 1,487,363 1,703,337 2,092,527 2,617,944

29,605,538 28,760,610

$ 75,855,109 § 34,492,208

General revenues Property taxes Sales taxes Other taxes

Program Revenues

Operating Grants and

Contributions

$ 791,365 218,729

2,823,210 6,822,025

76,658 272,923

11,004,910

1,406,208

1,406,208

§ 12,411,118

Federal and state grants and contributions not restricted to specific functions

Interest and investment earnings Miscellaneous

Transfers Total general revenues and transfers

Change in net position

Net position - January 1

Net position - December 31

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

32

Capital Grants and

Contributions

$ 10,719

778,747

1,105,377

1,894,843

$ 1,894,843

Net (t:xpense) Revenue and Changes in Net Position

Governmental Business-type Activities Activities Total

$ (6,888,816) $ $ (6,888,816) (9,585, 199) (9,585,199) (2,731,435) (2,731 ,435) (5, 766,462) (5,766,462)

(811 ,298) (811 ,298) (1 ,348,994) (1 ,348,994)

{486,016} ~486,016} (27,618,220) (27 ,618,220)

(454,932) (454,932) (12,998) (12,998) 287,819 287,819 215,974 215,974 525,417 525,417 561,280 561,280

(27,618,220) 561,280 (27,056,940)

19,102,597 245,955 19,348,552 6,796,393 6,796,393

690,867 690,867

1,698,501 1,698,501 695,026 572 695,598

78,580 78,580 ~1 ,062,2141 1,062,214

27,999,750 1,308,741 29,308,491

381,530 1,870,021 2,251,551

56,165,823 14,937,520 71,103,343

l 56,547,353 ! 16,807,541 ! 73,354,894

33

ASSETS Cash and investments Receivables

Taxes Delinquent taxes Delinquent special assessments Accounts Loans

Due from other funds Due from other governments Prepaid items

TOTAL ASSETS

LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES

Liabilities Accounts payable Accrued liabilities Due to other gover:'ments Due to other funds Unearned revenues Custodial and special deposits Total Liabilities

Deferred Inflows of Resources Property taxes Loans receivable Special assessments Total Deferred Inflows of Resources

Fund Balances Nonspendable for

Prepaid items Delinquent property tax

Restricted Committed Assigned Unassigned Total Fund Balances

TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES

(Continued)

OZAUKEE COUNTY, WISCONSIN Balance Sheet

Governmental Funds December 31,2013

County Human Roads and

General Services Bridges

$ 22,981,110 $ 400 $

11,316,679 4,619,209 3,531,607 1,637,964

55,679 290,576 73,985

3,045,383 1,907,835 2,477,611 1,691,724 250,324

716,101

$ 41,735,216 $ 6,851,753 $ 6,009,218

$ 2,736,698 $ 21,460 $ 2,060,483 1,878,197 748,820

15,195,503 298,264 57,066

1,845,696 3,003 24,014,841 830,349

9,581,187 4,619,209 3,531,607

55,654 9,636,841 4,619,209 3,531,607

716,101 1,410,714

108,765 24,775 1 ,402,195 2,477,611

151,225 5,671,954 8,083,534 1,402,195 2,477,611

$ 41,735,216 $ 6,851,753 $ 6,009,218

34

Other Total Governmental Governmental

Funds Funds

$ 301,757 $ 23,283,267

2,316,776 21,784,271 1,637,964

55,679 145,757 510,318

2,602,320 2,602,320 8,129,574 15,560,403

645,661 2,587,709 53 716,154

$ 14,141,898 $ 68,738,085

$ 4,939 $ 2,763,097 2,060,483 2,627,017

244,879 15,440,382 11,213 366,543

1,848,699 261,031 25,106,221

2,316,776 20,048,779 2,602,320 2,602,320

55,654 4,919,096 22,706,753

53 716,154 1,410,714

6,382,223 6,490,988 2,579,495 6,484,076

151,225 5,671,954

8,961,771 20,925,111

$ 14,141,898 $ 68,738,085

OZAUKEE COUNTY, WISCONSIN Balance Sheet (Continued)

Governmental Funds December 31,2013

Reconciliation to the Statement of Net Position Total Fund Balance as shown from previous page

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

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

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

Loans receivable Special assessments

Some deferred outflows used in governmental activities are not financial resources and therefore, are not reported in the funds.

Deferred charge on refunding

Some liabilities, including bonds and notes payable, are not due and payable in the current period and therefore are not reported in the funds.

General obligation debt Compensated absences (excluding internal service fund balances which

are included below) Unamortized bond premium Accrued interest payable

An internal service fund is used by management to charge the costs of information technology to individual funds. The assets and liabilities of the internal service fund are included in governmental activities in the statement of net position.

Net Position of Governmental Activities as Reported on the Statement of Net Position (see page 31)

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

35

$ 20,925,111

52,689,641

2,602,320 55,654

154,076

(16,555,000)

(2,630, 708) (507,840) (205,825)

19,924

$ 56,547,353

OZAUKEE COUNTY, WISCONSIN Statement of Revenues, Expenditures and Changes in Fund Balances

Governmental Funds For the Year Ended December 31, 2013

County Other Human Roads and Governmental

General Services Bridges Funds

Revenues Taxes $ 16,413,404 $ 4,789,562 $ 3,842,895 $ 1,543,996 Intergovernmental 1,686,118 5,318,391 1,770,333 5,701,337 Public charges for services 1,842,180 700,425 1,339,182 Intergovernmental charges for service 314,742 34,010 Interdepartmental charges for service 427,157 924 31,782 Fines and forfeits 229,967 3,795 Licenses and permits 125,047 Investment income 124,625 570,401 Miscellaneous 660,247 6,629 216,166 Total Revenues 21,823,487 10,815,931 5,613,228 9,440,669

Expenditures Current

General government 8,202,802 260,210 Public safety 10,750,632 57,818 Public works 134,661 5,698,314 2,876,740 Health and human services 612,082 10,271,017 2,586,433 Culture and recreation 890,456 217,445 Conservation and development 623,908 1,758,893

Debt service Principal 800,000 Interest and fiscal charges 405,730

Capital outlay 388,001 936,129 Total Expenditures 21,602,542 10,271,017 5,698,314 9,899,398

Excess of Revenues Over (Under) Expenditures 220,945 544,914 (85,086) (458,729)

Other Financing Sources (Uses) Long-term debt issued 6,885,000 Premium on long term debt 194,187 Transfers in 1,038,628 1,139,160 1,292,735 Transfers out ( 1 '739 ,427) (2, 793,31 0) Total Other Financing Sources (Uses) {700,799) 1,139,160 5,578,612

Net Change in Fund Balances {479,854) 544,914 1,054,074 5,119,883

Fund Balances- Beginning of Year 8,563,388 857,281 1,423,537 3,841,888

Fund Balances- End of Year $ 8,083,534 $ 1 ,402,195 $ 2,477,611 $ 8,961,771

(Continued)

36

Total Governmental

Funds

$ 26,589,857 14,476,179 3,881,787

348,752 459,863 233,762 125,047 695,026 883,042

47,693,315

8,463,012 10,808,450 8,709,715

13,469,532 1,107,901 2,382,801

800,000 405,730

1,324,130 47,471,271

222,044

6,885,000 194,187

3,470,523 (4,532,737l 6,016,973

6,239,017

14,686,094

$ 20,925,111

OZAUKEE COUNTY, WISCONSIN Statement of Revenues, Expenditures and Changes in Fund Balances (Continued)

Governmental Funds For the Year Ended December 31, 2013

Reconciliation to the Statement of Activities

Net Change in Fund Balance from previous page

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

Governmental funds report capital outlay as expenditures. However, in the statement of activities the cost of these assets is allocated over their estimated useful lives and reported as depreciation expense.

Capital assets reported as expenditures in governmental fund statements Depreciation expense reported in the statement of activities Loss on disposal of assets

Amount in which capital outlay is greater than depreciation expense

Repayment of principal on long-term debt is reported in the governmental funds as an expenditure, but is reported as a reduction in long-term debt in the statement of net position and does not affect the statement of activities. The amount of long-term debt principal payments in the current year is:

Debt that is reported in the governmental funds as a source of financing. In the statement of net position, however debt constitutes a long-term liability. The amount of debt reported in the governmental fund statement is:

Certain employee benefits are reported in the governmental funds when amounts are paid. The statement of activities reports the value of benefits earned during the year. This year the accrual of these benefits decreased by:

Interest payments on outstanding debt are reported in the governmental funds as an expenditure when paid, in the statement of activities interest is reported as it accrues:

Bond premiums are reported in the governmental funds as a revenue. In the statement of activities, these revenues are amortized over the life of the bonds. Bond premium amortization exceeded revenue by:

The deferred charge on refunding is reported in the governmental fund as an expenditure. In the Statement of Activities, this cost is amortized over the life of the bonds.

Governmental funds report loans to outside entities as expenditures, however in the statement of net position the loans are reported as increases to receivables. Repayment of loan principal is a revenue in the governmental funds, but the repayment reduces the receivable in the statement of net position. The amount by which new loans exceeded principal payments is:

Other long-term assets are not available to pay for current period expenditures and therefore are deferred in the funds - special assessments

An internal service fund is used by management to charge the costs of information technology programs to individual funds. The net expense of the internal service fund is reported with governmental activities. Net of amounts above:

Change in net position

Change in Net Position of Governmental Activities as Reported on the Statement of Activities (see pages 32 and 33)

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

37

$ 4,279,463 (3,223,511)

(26,170)

$ 6,239,017

1,029,782

800,000

(6,885,000)

(109,474)

(112,944)

(140,986)

(20,543)

(468,900)

55,654

(5,076)

$ 381,530

OZAUKEE COUNTY, WISCONSIN Statement of Revenues, Expenditures and Changes in Fund Balances

Budget and Actual General Fund

For the Year Ended December 31, 2013

Budgeted Amounts Actual Original I Final Amounts

Revenues Taxes $ 15,943,687 $ 15,943,687 $ 16,413,404 Intergovernmental 1,700,812 1,953,921 1 ,686,118 Public charges for services 1,766,740 1,766,740 1,842,180 Intergovernmental charges for service 398,000 398,000 314,742 Interdepartmental charges for service 462,217 462,217 427,157 Fines and forfeits 260,000 260,000 229,967 Licenses and permits 99,305 99,305 125,047 Investment income 179,050 179,050 124,625 Miscellaneous 481,169 541,469 660,247 Total Revenues 21,290,980 21,604,389 21,823,487

Expenditures Current

General government 8,182,483 8,352,783 8,202,802 Public safety 10,659,131 10,698,309 10,750,632 Public works 130,856 130,856 134,661 Health and human services 604,988 608,773 612,082 Culture and recreation 875,556 1,100,766 890,456 Conservation and development 562,734 639,255 623,908

Capital outlay 299,475 504,762 388,001 Total Expenditures 21,315,223 22,035,504 21,602,542

Excess of Revenues Over (Under) Expenditures (24,243) (431,115) 220,945

Other Financing Sources (Uses) Transfers in 265,166 708,628 1,038,628 Transfers out (1 ,593,462) ( 1 '739,427} Total Other Financing Sources (Uses) 265,166 {884,834) (700,799)

Net Change in Fund Balance 240,923 (1,315,949) (479,854)

Fund Balance- Beginning of Year 9,029,123 8,770,376 8,563,388

Fund Balance- End of Year $ 9,270,046 $ 7,454,427 $ 8,083,534

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

38

Variance with Final Budget-

Positive (NeQative)

$ 469,717 (267,803)

75,440 (83,258) (35,060) (30,033) 25,742

(54,425) 118,778 219,098

149,981 (52,323)

(3,805) (3,309)

210,310 15,347

116,761 432,962

652,060

330,000 (145,965) 184,035

836,095

{206,988)

$ 629,107

OZAUKEE COUNTY, WISCONSIN Statement of Revenues, Expenditures and Changes in Fund Balance

Budget and Actual Human Services

For the Year Ended December 31, 2013

Budgeted Amounts Actual Original I Final Amounts

Revenues Taxes

Property Tax $ 4,789,562 $ 4,789,562 $ 4,789,562

Intergovernmental Inter County Grant 7,813 State Aid 4,520,673 4,698,673 5,217,851 State Aid - MA Waiver 198,585 198,585 92,727 Total Intergovernmental 4,719,258 4,897,258 5,318,391

Public Charges for Services Case Management Reimbursement 14,000 14,000 11,501 Client Fees -Alcohol 511 Client Fees - Mental Health 13,400 13,400 9,137 Cost Share Parents 30,000 30,000 21,310 Counseling Center Fees PP 34,426 34,426 19,739 Counseling Center Fees PP-Med Mgmt 104,418 104,418 54,456 Counseling Center Fees PP OutPatient 34,850 34,850 66,354 Day Care Certification Fees 200 200 280 Driver Improvement Surcharge 77,666 77,666 86,633 Family Care 34,376 34,376 35,382 Foster Home Refunds 74,500 74,500 81,294 IDP Assessments 92,500 92,500 70,003 Kinship Refunds 177 MA Comm Support 156,114 156,114 187,815 MA Comm Support/Rev Adj (20,296) MA Personal Care 9,472 9,472 6,781 Medical Refunds 6,364 Parental Fees (4,989) Parental Fees/Rev Adj (1 ,227) Photocopy Revenue 2,000 2,000 1,454 Residential Care Refunds 35,000 35,000 28,723 Residential Income PP 34,225 34,225 25,148 Residential Income SSI 8,000 8,000 7,152 Supervision Fees 6,000 6,000 6,723

Total Public Charges for Services 761 '147 761 '147 700,425

Interdepartmental Charges for Service Homemaker Services 924 Total Interdepartmental Charges for Service 924

(Continued)

39

Var'ance with Final Budget-

Positive (Negative)

$

7,813 519,178 ~105,858l 421 '133

(2,499) 511

(4,263) (8,690)

(14,687) (49,962) 31,504

80 8,967 1,006 6,794

{22,497) 177

31,701 {20,296)

{2,691) 6,364

(4,989) (1 ,227)

(546) (6,277) (9,077)

(848) 723

,60,722}

924 924

OZAUKEE COUNTY, WISCONSIN Statement of Revenues, Expenditures and Changes in Fund Balance (Continued)

Budget and Actual Human Services

For the Year Ended December 31, 2013

Budgeted Amounts Actual Oriqinal I Final Amounts

Revenues (Continued) Miscellaneous

AFDC Agency Incentive 2

Discounts 36 Donations 100 FS Agency incentive 1,377 MA Agent incentive 1,432 Prior Year Revenue (4,791) Other Revenue 8,473

Total Miscellaneous 6,629

Total Revenues 10,269,967 10,447,967 10,815,931

Expenditures Current

Health and Human Services Administration 1,079,689 1,079,689 1,199,015 Safe & Stable Families 56,650 56,650 52,358 Sub Care RCC GH FC 985,500 985,500 673,430 Youth Aids RCC GH FC 474,069 474,069 491,704 Youth Independent Living 20,000 20,000 23,735 Youth Aids Community 512,327 512,327 486,421

Youth Aids AODA 10,991 10,991 11,588 Kinship Care Base Benefits 58,460 58,460 57,699 Kinship Care Assessments 4,088 4,088 4,425 Foster Care Administration 1,200 1,200 985 Basic County Allocate Children 1,236,232 1,236,232 1,234,546 Community Intervention Program 20,000 20,000 10,271 Youth Aid Correctional 168,755 168,755 201,037 Coordinated Services Team 46,949 Community Options Program 15,000 15,000 5,800 Basic County Allocation Adults 81,372 81,372 58,799 MA Personal Care 41,830 41,830 27,735 Elder Abuse Grant 18,968 18,968 Family Care 84,255 84,255 83,488 Developmental Disabilities BCA 1,322,330 1,322,330 1,002,257 Birth To Three 605,370 605,370 520,508 Family Support Program 56,810 56,810 26,752 CL TS Local Match 74,585 74,585 4,253 CL TS State Match 300,690

(Continued)

40

Variance with Final Budget-

Positive (Neqative)

2

36 100

1,377 1,432

(4,791) 8,473 6,629

367,964

(119,326) 4,292

312,070 (17,635)

(3,735) 25,906

(597) 761

(337) 215

1,686 9,729

(32,282) (46,949)

9,200 22,573 14,095 18,968

767 320,073 84,862 30,058 70,332

(300,690)

OZAUKEE COUNTY, WISCONSIN Statement of Revenues, Expenditures and Changes in Fund Balance (Continued)

Budget and Actual Human Services

For the Year Ended December 31, 2013

Expenditures (Continued) Current (continued)

Health and Human Services (continued) Income Maintenance Admin Allocation Intoxicated Driver Program LIHEAP Crisis Client Services LIHEAP Operations LIHEAP Outreach Family Enrichment Center Child Care Program Operation Affordable Care Act Implementation Mental Health BCA Community Support Program Mental Health Block Grant Alcohol BCA

APS/Eider Abuse Total Expenditures

Excess of Revenues Over (Under) Expenditures

Other Financing Sources Transfers In

Net Change in Fund Balance

Fund Balance- Beginning of Year

757,969 935,969

6,800 6,800 1,609 1,609

25,260 25,260 95,455 95,455

1,354,100 1,354,100 584,147 584,147

20,941 20,941 545,205 545,205

10,319,967 10,497,967

(50,000) (50,000)

50,000 50,000

857,281 857,281

Actual Amounts

730,201 31,018 15,231 36,632 6,870

22,646 103,749 31,977

1,862,988 397,444

21,120 445,062

41,634 10,271,017

544,914

544,914

857,281

Variance with Final Budget­

Positive

205,768 (31,018)

(8,431) (35,023)

(6,870) 2,614

(8,294) (31 ,977)

(508,888) 186,703

(179) 100,143 (41,634) 226,950

594,914

(50,000)

544,914

Fund Balance- End of Year $ 857,281 $ 857,281 $ 1,402,195 $ 544,914

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

41

OZAUKEE COUNTY, WISCONSIN Statement of Revenues, Expenditures and Changes in Fund Balance

Budget and Actual County Roads and Bridges Special Revenue Fund

For the Year Ended December 31, 2013

Budgeted Amounts Original I Final

Revenues Taxes $ 3,842,895 $ 3,842,895 Intergovernmental 1,193,948 1,653,948 Interdepartmental charges for service 90,000 90,000 Total Revenues 5,126,843 5,586,843

Expenditures Current

Public works 5,126,843 6,263,727

Excess of Revenues Over (Under) Expenditures (676,884)

Other Financing Sources Transfers in 676,884

Net Change in Fund Balance

Fund Balance- Beginning of Year 1,423,537 1,423,537

Fund Balance- End of Year $ 1,423,537 $ 1,423,537

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

42

Actual Amounts

$ 3,842,895 1,770,333

5,613,228

5,698,314

(85,086)

1 '139,160

1,054,074

1,423,537

$ 2,477,611

Variance with Final Budget-

Favorable (Unfavorable)

$ 116,385 (90,0001 26,385

565,413

591,798

462,276

1,054,074

$ 1,054,074

Lasala Care

Center ASSETS

Current Assets Cash and investments $ 58,069 Receivables

Property taxes Accounts 964,679

Due from other funds Due from other governments Inventories 41,775 Prepaid items 2,001 Total Current Assets 1,066,524

Capital Assets Land 31,137 Land improvements 438,831 Building and building improvements 8,181,052 Machinery and equipment 1,413,752 Construction in progress Accumulated depreciation (6,920,542) Total Capital Assets 3,144,230

TOTAL ASSETS 4,210,754

LIABILITIES Current Liabilities

Accounts payable Other accrued liabilities Due to other funds 1,756,613 Due to other governments Unear:.ed revenues Current portion of unamortized

premium Compensated absences Current portion of bonds payable Total Current Liabilities 1,756,613

Noncurrent Liabilities Compensated absences 476,521 Noncurrent portion of bonds

payable Unamortized premium Total Noncurrent Liabilities 476,521

TOTAL LIABILITIES 2,233,134

NET POSITION Net investment in capital assets 3,144,230 Unrestricted (deficit) !1,166,610!

TOTAL NET POSITION (DEFICIT) l£ 1.977,620

OZAUKEE COUNTY, WISCONSIN Statement of Net Position

Proprietary Funds December 31, 2013

Golf Course

Nonmajor Lasala Propnetary

Highway RCAC Fund

$ 200 $ 38,263 $ 4,078

32,336 4,075 1,237,788 472,710

885,888 1,540,059 5,141 12,810

2,426,147 1,313,528 493,673

92,722 139,000 999,388 469,193 2,402,527

5,551,547 8,703,598 2,650,720 14,529,968 426,736 3,161,383

206,720 p2,754,381) !1,296,3512 j6,050,963J

8,625,964 8,303,176 2,302,667

11,052,111 9,616,704 2,796,340

92,189 137,223

1,043,447 380

73,708 275,679 23,755

4,586 69,867

425,000 1,279,211 842,488 24,135

388,663 5,056 110,706

8,790,000 63,446

388,663 8,858,502 110,706

1,667,874 9,700,990 134,841

8,625,964 (911 ,824) 2,302,667 758,273 827,538 358,832

$ 9,384,237 §1 (84,286l $ 2,661,499

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

43

Lasala Government Heights Activities

Non major Internal Proprietary Service

Fund Total Fund

$ 250 $ 100,860 $

1,001,090 935,113 2,645,611 34,872

885,888 2,072 1,601,857 58,568

2,001 937 435 6,237,307 93,440

895 263,754 138,191 4,448,130

4,689,901 29,776,818 121,764 19,653,603 1,474,726

15,980 222,700 )2,929,417) !29,951 ,654) (1,474,726) 2,037,314 24,413,351

2,974,749 30,650,658 93,440

92,189 137,223

2,800,060 444 380 301

81,500 454,642 6,286

4,586 69,867

425,000 81,500 3,983,947 7,031

24,778 1,005,724 66,485

8,790,000 63,446

24,778 9,859,170 66,485

106,278 13,843,117 73,516

2,037,314 15,198,351 831,157 1 ,609,190 19,924

$ 2,868,471 $ 16,8Q7,541 ~ 19,924

Operating Revenues

OZAUKEE COUNTY, WISCONSIN Statement of Revenues, Expenses and Changes in Net Position

Proprietary Funds

For the Year Ended December 31, 2013

Golf Lasata Course Heights

Lasata Non major Non major Care Lasata Proprietary Proprietary

Center Highway RCAC Fund Fund

Charges for services $ 12,782,962 $ 10,684,625 $ 2,616,624 $ 1,690,330 $ 825,667 Other 73,732 57,633 1,320 13,007 5,361 Total Operating Revenues 12,856,694 10,742,258 2,617,944 1,703,337 831,028

Operating Expenses Administration 1,464,688 271,310 207,183 72,777 117,852 Operation and maintenance 12,912,472 9,592,314 1,095,598 1,144,285 284,192 Depreciation 340,674 900,981 377,330 270,301 141,165 Total Operating Expenses 14,717,834 10,764,605 1,680,111 1,487,363 543,209

Operating Income (Loss) (1 ,861 ,140} {22,347) 937,833 215,974 287,819

Nonoperating Revenues (Expenses) Gain (loss) on disposal of

property and equipment 9,349 State grants and aid 1,399,784 6,424 Amortization 4,587 Interest and fiscal charges (417,003) Investment income 572 Property taxes 245,955 Total Nonoperating Revenues

(Expenses) 1,646,311 15,773 {412,416)

Income (Loss) Before Transfers (214,829) (6,574) 525,417 215,974 287,819

Transfers in 205,000 1,000,000 Transfers out (55,000) (87,786)

Change in net position (64,829) 993,426 525,417 128,188 287,819

Net Position (Deficit)-Beginning of Year 2,042,449 8,390,811 ~609,703} 2,533,311 2,580,652

Net Position (Deficit)-End of Year $ 1,977,620 $ 9,384,237 $ (84,286) $ 2,661,499 $ 2,868,471

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

44

Government Activities Internal

Service Total Fund

$ 28,600,208 $ 531 151,053 1,060,874

28,751,261 1,061,405

2,133,810 1,066,481 25,028,861

2,030,451 29,193,122 1,066,481

(441 ,861) (5,076}

9,349 1,406,208

4,587 (417,003)

572 245,955

1,249,668

807,807 (5,076)

1,205,000 (142,786}

1,870,021 (5,076)

14,937,520 25,000

$ 16,807,541 $ 19,924

Cash Flows from Operating Activity

Cash received from user charges $

Cash paid to suppliers

Cash paid to employees Net Cash Provided (Used) by

Operating Activities

Cash Flows from Noncapital Financing Activities Property tax

State grants and aid Transfers In Transfers out

Net Cash Provided (Used) by Noncapital Financing Activities

OZAUKEE COUNTY, WISCONSIN Statement of Cash Flows

Proprietary Funds

For the Year Ended December 31, 2013

Golf

Course

Lasata Nonmajor

Care Lasata Proprietary

Center Highway RCAC Fund

12,928,633 $ 10,742,258 $2,652,925 $2,010,157 (4,052,901) (6,979,246) (505,468) (567,911)

(1 0,320,243) (3,211 '195) (796,583) (704,076)

(1 ,444,511) 551,817 1,350,874 738,170

245,955

1,399,784 205,000 1,000,000

,55,000) (87,786)

1,795,739 1,000,000 (87,786)

Cash Flows from Capital and Related Financing Activities Acquisition of capital assets (193,787) (701,602) (84,780) (187,956)

Proceeds on disposal of property and equipment 9,349

Principal paid on long-term debt (400,000)

Interest paid on long-term debt {419,667)

Net Cash Used by Capital and

Related Financing Activities (193,787) (692,253) (904,447) (187,956)

Cash Flows from Investing Activities Interest income 572

Increase in Cash and

Cash Equivalents 158,013 859,564 446,427 462,428

Net Cash Temporarily Transferred

(to) from General Fund (146,214) (866,678) (460,746) (467,157)

Net Increase (Decrease) in Cash

and Cash Equivalents 11,799 (7,114) (14.319) (4,729)

Cash and Cash Equivalents -January 1 46,270 7,314 52,582 8,807

Cash and Cash Equivalents -December 31 $ 58,069 $ 200 $ 38,263 $ 4,078

(Continued)

45

Lasala Governmental Heights Activities

Non major Internal Proprietary Service

Fund Total Fund

$ 824,528 $ 29,158,501 $ 1,068,498 (175,789) (12,281 ,315) (650,400)

(227,7922 (15,259,889) (41 0,514j

420,947 1,617,297 7,584

245,955

1,399,784 1,205,000

(142,786l

2,707,953

(22,501) (1 '190,626)

9,349 (400,000)

(419,667)

(22,501) (2,000,944)

572

398,446 2,324,878 7,584

(398,446) (2,339,241) F.584)

(14,363)

250 115,223

$ 250 $ 100,860 $

Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by

Operating Activities:

Operating income (loss) $ Adjustments to reconcile operating

income (Joss) to net cash provided

(used by) operating activities:

Depreciation

Changes in assets and liabilities

Accounts receivable

Inventories

Prepaid items

Accounts payable

Accrued liabilities

Unearned revenue Net Cash Provided (Used) by

Operating Activities $

OZAUKEE COUNTY, WISCONSIN Statement of Cash Flows

Proprietary Funds

For the Year Ended December 31, 2013

Lasala

Care Lasala Golf

Center Highway RCAC Course

(1 ,861 '140) $ (22,347) $ 937,833 $ 215,974

340,673 888J10 377,330 270,301

71,939 (16,460) 304,105

5,138 (329,558) (1,760) (4,408)

(2) 2,969

317

(1 '119) 15,012 (479) (50,834)

51,441 2,715

(1 ,444,511) $ 551,817 $ 1,350,874 $ 738,170

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

46

Lasala Governmental

Heights Activities

Non major Internal Proprietary Service

Fund Total Fund

$ 287,819 $ (441,861) $ (5,076)

141,165 2,018,179

359,584 807

(12) (330,600) (6,274)

2,967

317 301

(1 ,525) {38,945) 11,540

(6,5ooL 47,656 6,286

$ 420,947 $ 1,617,297 $ 7,584

ASSETS Cash and investments Accounts receivable

LIABILITIES Agency deposits

OZAUKEE COUNTY, WISCONSIN Statement of Net Position

Fiduciary Funds December 31, 2013

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

47

Agency Fund

$ 967,646 22,823

$ 990,469

$ 990,469

OZAUKEE COUNTY, WISCONSIN Notes to Basic Financial Statement

December 31, 2013

NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The basic financial statements of Ozaukee County, Wisconsin ("the County") have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The significant accounting principles and policies utilized by the County are described below:

1. Reporting Entity Ozaukee County is a municipal corporation governed by an elected 26 member board. In accordance with GAAP, the basic financial statements are required to include the County (the primary government) and any separate component units that have a significant operational or financial relationship with the County. The component unit discussed below is included in the reporting entity due to the significance of the County's financial accountability with it.

2. Individual Component Unit Disclosures Component units are legally separate organizations for which the elected officials of the primary government are financially accountable. The primary government is financially accountable if it appoints a voting majority of the organization's governing body and (a) it is able to impose its will on that organization, or (b) there is a potential for the organization to provide specific financial benefits to or burdens on the primary government. The primary government may be financially accountable if an organization is fiscally dependent on the primary government. The City has not identified any component units that are required to be included in the basic financial statements in accordance with standards established by GASB Statement No. 61.

3. Related Organizations

Ozaukee County Economic Development Corporation (OCEDC) OCEDC is a legally separate organization established to advance the business, prosperity and economy of Ozaukee County. It is funded by contributions from the County, County municipalities, and various businesses. The County's accountability for this organization does not extend beyond making the contribution. Therefore, this organization is not included in the County's reporting entity.

Eastern Shores Library System Eastern Shores Library System provides library services to the residents of the County. The County Board is responsible for appointing six of the fifteen members to the Eastern Shores Library System Board, but the County's accountability for this organization does not extend beyond making the appointments. Therefore, this organization is not included in the County's reporting entity.

4. Government-Wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the non-fiduciary activities of the County. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which are primarily supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for services.

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

48

OZAUKEE COUNTY, WISCONSIN Notes to Basic Financial Statement

December 31, 2013

NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Governmental funds include general, special revenue, debt service and capital projects funds. Proprietary funds include enterprise and internal service funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.

The County reports the following major governmental funds:

GENERAL FUND

This is the County's main operating fund. It accounts for all financial resources of the general government, except those accounted for in another fund.

SPECIAL REVENUE FUNDS

HUMAN SERVICES This fund accounts for all financial resources related to Community Programs and Social Services. The fund's primary revenues are state and federal aids.

COUNTY ROADS AND BRIDGES This fund accounts for the County's use of tax dollars and state aid to construct and maintain the County highway and bridge system. The primary revenues are tax dollars and state aid.

The County reports the following major enterprise funds:

LASATA CARE CENTER

This fund accounts for all financial resources of the County's nursing home facility.

HIGHWAY This fund accounts for all financial resources of the County's highway maintenance operation.

LASATA RESIDENTIAL CARE APARTMENT COMPLEX This fund accounts for all financial resources of the operations of the Residential Care Apartment Complex.

Additionally, the government reports the following fund types:

Internal service funds account for technology resources services provided to other departments or agencies of the County, or to other governments, on a cost reimbursement basis.

The County accounts for assets held for individuals by various departments and funds held for other governmental agencies in agency funds. The majority of the funds held by the County as an agent are bond deposits with the clerk of courts. The bond deposits can be retained by the County if the defendant fails to comply with the terms of the bond, be returned to the defendant or can be used in cases where restitution is ordered by the judge. The other individually significant balance is for the jail inmate accounts. Inmates deposit funds with the County and can use the funds to purchase items from the commissary. The remaining agency deposits are relatively small and represent deposits from beneficiaries of various county entitlement programs.

49

OZAUKEE COUNTY, WISCONSIN Notes to Basic Financial Statement

December 31, 2013

NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

5. Measurement Focus and Basis of Accounting The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenues as soon as all eligibility requirements imposed by the provider have been met.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the County considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.

Revenues susceptible to accrual include intergovernmental grants, intergovernmental charges for services, public charges for services and interest Other revenues such as licenses and permits, other fines and forfeits and miscellaneous revenues are recognized when received in cash or when measurable and available.

As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are payments-in-lieu of taxes and other charges between the County's highway functions and various other functions of the County. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned.

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

Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the County's enterprise funds are charges to customers for services. Operating expenses for enterprise funds include the cost of services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

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

50

OZAUKEE COUNTY, WISCONSIN Notes to Basic Financial Statement

December 31, 2013

NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

6. Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position or Fund Balance

a. Cash and Investments Cash and investments are combined in the financial statements. Cash deposits consist of demand and time deposits with financial institutions and are carried at cost. Investments are stated at fair value. Fair value is the amount at which a financial instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. For purposes of the statement of cash flows, all cash deposits and highly liquid investments (including restricted assets) with a maturity of three months or less are considered to be cash equivalents.

b. Accounts Receivable Accounts receivable are recorded at gross amount with uncollectible amounts recognized under the direct write-off method. No allowance for uncollectible accounts has been provided since it is believed that the amount of such allowance would not be material to the basic financial statements.

c. lnterfund Receivables and Payables During the course of operations, numerous transactions occur between individual funds for goods provided or services rendered. These receivables and payables are classified as "due from other funds" and "due to other funds" in the fund financial statements.

The amount reported on the statement of net position for internal balances represents the residual balance outstanding between the governmental activities and business-type activities.

d. Inventories Inventories are recorded at cost, which approximates market, using the first-in, first-out method. Inventories consist of expendable supplies held for consumption. The cost is recorded as an expenditure at the time individual inventory items are consumed rather than when purchased.

Inventories of governmental funds in the fund financial statements are offset by nonspendable fund balance to indicate that they do not represent spendable available financial resources.

e. Prepaid Items Payments made to vendors that will benefit periods beyond the end of the current fiscal year are recorded as prepaid items.

Prepaid items of governmental funds in the fund financial statements are offset by nonspendable fund balance to indicate that they do not represent spendable available financial resources.

51

OZAUKEE COUNTY, WISCONSIN Notes to Basic Financial Statement

December 31, 2013

NOTE A· SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

f. Capital Assets Capital assets, which include property, plant, equipment and infrastructure assets, are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the County as assets with an initial, individual cost of $5,000 or higher and an estimated useful life in excess of 3 years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair value at the date of donation.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized.

Capital assets of the County for both governmental and business-type activities are depreciated using the straight-line method over the following estimated useful lives:

Assets Land improvements Buildings and building improvements Machinery and equipment Infrastructure

g. Compensated Absences

Years

15 20-30 3-10 25-50

It is the County's policy to permit employees to accumulate earned but unused vacation and sick leave benefits. All vacation and sick leave is accrued when incurred in the government-wide and proprietary fund financial statements. A liability for these amounts is reported in the governmental funds in the fund financial statements only if they have matured, for example, as a result of employee resignations and retirements.

h. Deferred Outflows/Inflows of Resources In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The County has only one item that qualifies for reporting in this category. It is the deferred charge on refunding reported in the government-wide statement of net position. A deferred charge on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt.

In addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period and so will not be recognized as an inflow of resources (revenue) until that time. The County has one type of item that qualifies for reporting in this category, property taxes. This amount will be recognized as an inflow of resources in the subsequent year for which it was levied. The County also has additional type of item, which arises only under a modified accrual basis of accounting that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from loans receivables and special assessments. These amounts are deferred and recognized as an inflow of resources in the period the amounts become available.

52

OZAUKEE COUNTY, WISCONSIN Notes to Basic Financial Statement

December 31, 2013

NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

i. Long-term Obligations In the government-wide financial statements, and proprietary funds in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are expensed in the current period.

In the fund financial statements, governmental funds recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

j. Fund Equity GOVERNMENTAL FUND FINANCIAL STATEMENTS

The following classifications describe the relative strength of the spending constraints placed on the purposes for which resources can be used:

• Nonspendable fund balance - Amounts that are not in spendable form (such as inventory, prepaid items, or long-term receivables) or are legally or contractually required to remain intact

• Restricted fund balance - Amounts that are constrained for specific purposes by external parties (such as grantor or bondholders), through constitutional provisions, or by enabling legislation.

• Committed fund balance - Amounts that are constrained for specific purposes by action of the County Board. Fund balance amounts are committed through a formal action (ordinance, resolution, motion) of the County Board. These constraints can only be removed by the County Board using the same action that was used to create them.

• Assigned fund balance - Amounts that are constrained for specific purposes by action of the County Finance Committee. The County Board has authorized the County's Finance Committee to approve assignment of fund balance with oversight approval of the Executive Committee. These constraints can only be removed by the Finance Committee using the same action that was used to create them.

• Unassigned fund balance - Amounts that are available for any purpose. Positive unassigned amounts are only reported in the General Fund.

The County uses the following order of fund balance spend-down: 1-Restricted, 2-Committed, 3-Assigned, and 4-Unassigned based on its adopted policy.

GOVERNMENT-WIDE AND PROPRIETARY FUND STATEMENTS

Equity is classified as net position and displayed in three components:

• Net investment in capital assets -Amount of capital assets, net of accumulated depreciation, less outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets.

• Restricted net position -Amount of net position that are subject to restrictions that are imposed by 1) external groups, such as creditors, grantors, contributors or laws or regulations of other governments or 2) law through constitutional provisions or enabling legislation.

• Unrestricted net position - Net position that are neither classified as restricted nor as invested in capital assets, net of related debt.

53

OZAUKEE COUNTY, WISCONSIN Notes to Basic Financial Statement

December 31,2013

NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

7. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

NOTE B- STEWARDSHIP AND COMPLIANCE

1. Budgets and Budgetary Accounting The County follows these procedures in establishing the budgetary data reflected in the basic financial statements:

a. During October, County management submits to the Administrative Committee of the County Board a proposed operating budget for the calendar year commencing the following January 1. The operating budget includes proposed expenditures and the means of financing them. After submission to the governing body, public hearings are held to obtain taxpayer comments. Following the public hearings, the proposed budget, including authorized additions and deletions, is legally enacted by County Board action.

b. Budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America for the general, special revenue, debt service and capital project funds. Budget is defined as the originally approved budget plus or minus approved amendments. A budget amendment requires a simple majority of those present. To take money or move from a fund balance it will require a 2/3 vote of board members. Individual amendments throughout the year were not material in relation to the original budget. Budget appropriations not expended during the year are closed to fund balance unless authorized by the governing body to be forwarded into the succeeding year's budget. All funds in 2013 had approved budgets except the following:

Special Revenue Funds Caregiver Coalition Criminal Justice Collaborative Council

Capital Project Funds Bicycle trail Technology Tendick Park Lion's Den Support Services

c. During the year, formal budgetary integration is employed as a management control device for the general, special revenue, debt service and capital projects funds. Management control for the capital projects funds is also achieved through project authorizations included in debt issue resolutions.

d. Expenditures may not exceed appropriations provided in detailed budget accounts maintained for each activity or department of the County. Amendments to the budget during the year require initial approval by management and are subsequently authorized by the County Board.

e. Encumbrance accounting is not used by the County to record commitments related to unperformed contracts for goods or services.

The County did not have any material violation of legal or contractual provisions for the fiscal year ended December 31, 2013.

54

OZAUKEE COUNTY, WISCONSIN Notes to Basic Financial Statement

December31, 2013

NOTE B- STEWARDSHIP AND COMPLIANCE (Continued)

2. Excess of Expenditures Over Budget Appropriations The following expenditure accounts of the governmental funds had actual expenditures in excess of budget appropriations for the year ended December 31, 2013 as follows:

The above excess expenditures were funded using favorable revenue variances and available fund balance in the governmental funds.

General Fund General Government County Administrator Regional Services General Accounting Purchasing External Audit Department Support HS Property and Liability Insurance General Fund Miscellaneous Budget/Grant/Project Mgmt Radio Services IT Study Implementation Legislative Support State Special Charges Register of Deeds Advocates House Victim Witness Program

Public Safety Patrol Criminal Investigation Special Enforcement Grant Court Security EPCRASARA

Public Works Sanitation Inspector

Health and Human Services Child Support

Culture and Recreation Parks-Ad ministration H H Peters Youth Camp MeeKwon Park Snowmobile Trails Tendick Park Waubedonia Park

Conservation and Development Land Conservation Zoning Nonmetallic Mining

Capital Outlay Vehicles

Fund

$ 166 3,327

12,882 54,451 4,822 2,388

39,703 9,868 3,938

18,778 104,467

12,374 246

1,602 49,467

1,711

120,671 81,771 27,115 65,344

8,791

3,805

20,383

5,455 4,013

44,926 150 166

4,972

2,543 368

45

15,585

55

OZAUKEE COUNTY, WISCONSIN Notes to Basic Financial Statement

December 31, 2013

NOTE B -STEWARDSHIP AND COMPLIANCE (Continued)

Special Revenue Funds Human Services

Administration Youth Aids RCC GH FC Youth Independent Living Youth Aids AODA Kinship Care Assesments Youth Aid Correctional Coordinated Services Team CL TS State Match Intoxicated Driver Program LIHEAP Crisis Client Services LIHEAP Operations LIHEAP Outreach Child Care Program Operation Affordable Care Act Implementation Mental Health BCA Mental Health Block Grant APS/Eider Abuse

Aging Health and Human Services

Administration Congregate Meals Sites Adult Services

Aging and Disability Resource Center Health and Human Services

Public Health Health and Human Service

Ad ministration CDC Cancer Program Bioterroism Immunization Maternal and Child Health

Land Information Conservation & Development

Revolving Loans Conservation and Development

Caregiver Coalition Health and Human Services

Criminal Justice Collaborative Council Health and Human Services

Ozaukee County Senior Center Health and Human Services

Fund

56

$ 119,326 17,635 3,735

597 337

32,282 46,949

300,690 31,018

8,431 35,023

6,870 8,294

31,977 508,888

179 41,634

4,792 6,677

10,221

44,052

59,959 74

4,398 1,224 1,834

16,670

254,911

1,860

1,925

2,801

OZAUKEE COUNTY, WISCONSIN Notes to Basic Financial Statement

December 31,2013

NOTE B- STEWARDSHIP AND COMPLIANCE (Continued)

Debt Service Fund Principal Interest & fiscal charges

Bicycle Trail Fund Public Works

General Capital Projects Fund Capital Outlay

Fund

Capital Reserve Capital Projects Fund County Administrator Fund Capital Outlay

Support Services Fund General Government Capital outlay

$ 15,000 30,455

94

190,820

16,356

260,210 481,583

The above excess expenditures were funded using favorable revenue variances and available fund balance in the governmental funds.

3. Deficit Fund Equity The following funds had deficit fund equity as of December 31, 2013:

Enterprise Fund Lasata RCAC

Fund

The County anticipates funding the above deficits from future revenues of the fund.

57

Deficit Fund Equity

$ 84,286

OZAUKEE COUNTY, WISCONSIN Notes to Basic Financial Statement

December 31, 2013

NOTE C - DETAILED NOTES ON ALL FUNDS

1. Cash and Investments The County maintains various cash and investments accounts, including pooled funds that are available for use by all funds. Each fund's portion of these accounts is displayed in the financial statements as "Cash and investments."

Invested cash consists of deposits and investments that are restricted by Wisconsin Statutes to the following:

Time deposits; repurchase agreements; securities issued by federal, state and local governmental entities; statutorily authorized commercial paper and corporate securities; and the Wisconsin local government investment pool.

The carrying amount of the County's cash and investments totaled $24,351,773 December 31, 2013 as summarized below:

Petty cash funds Deposits with financial institutions Investments

Reconciliation to the basic financial statements:

Government-wide Statement of Net Position Cash and investments

Fiduciary Fund Statement of Net Position Agency fund

$ 15,668 19,398,326 4,937,779

$ 24,351,773

$ 23,384,127

967,646 $ 24,351,773

Deposits and investments of the County are subject to various risks. Presented on the following pages is a discussion of the specific risks and the County's policy related to the risk.

Custodial Credit Risk Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. Wisconsin statutes require repurchase agreements to be fully collateralized by bonds or securities issued or guaranteed by the federal government or its instrumentalities. All financial institutions acting as a depository for the County must enter into a "depository agreement" requiring the depository to pledge collateral to secure amounts over and above guaranteed amounts. All securities serving as collateral shall be specifically pledged to the County (not as part of a pooled fund) and placed in a custodial account at a Federal Reserve Bank, a trust department of a commercial bank, or through another financial institution. The custodian may not be owned or controlled by the depository institution or its holding company unless it is a separately operated trust institution.

58

OZAUKEE COUNTY, WISCONSIN Notes to Basic Financial Statement

December 31, 2013

NOTE C- DETAILED NOTES ON ALL FUNDS {Continued)

Deposits with financial institutions within the State of Wisconsin are insured by the Federal Deposit Insurance Corporation (FDIC) in the amount of $250,000 for the combined amount of all time and savings deposits and $250,000 for interest-bearing and noninterest-bearing demand deposits per official custodian per insured depository institution. Deposits with financial institutions located outside the State of Wisconsin are insured by the FDIC in the amount of $250,000 for the combined amount of all deposit accounts per official custodian per depository institution. In addition, the State of Wisconsin has a State Guarantee Fund which provides a maximum of$ 400,000 per public depository above the amount provided by an agency of the U.S. Government. However, due to the relatively small size of the State Guarantee Fund in relation to the Fund's total coverage, total recovery of insured losses may not be available; therefore the County funds are collateralized on a!l accounts above $250,000.

As of December 31, 2013, none of the County's deposits with financial institutions were in excess of federal and state depository insurance limits. The entire amount was collateralized with securities held by a third party in the name of the County.

Credit Risk Generally, 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. Wisconsin statutes limit investments in securities to the top two ratings assigned by nationally recognized statistical rating organizations. The County does not have an additional credit risk policy. Presented below is the actual rating as of yearend for each investment type.

Exempt From Not

Investment Tvoe Amount Disclosure AA Rated Money market fund 269,045 $ $ $ 269,045

U.S. treasury bonds 632,988 632,988 Federal agency securities 3,411,798 3,411,798 Local government investment pool 623,948 623,948

Totals l2 4,937,779 § 632,988 § 3,411,798 $ 892,993

Concentration of Credit Risk The investment policy of the County limits the amount that can be invested in any one insurer to that institutions ability to collateralize or to pledge securities in the County's name. Investments in any one issuer (other than U.S. Treasury securities, mutual funds, and external investment pools) that represent 5%

ft I C . f II or more o ota ounty Investments are as o ows: Percent of

Reported Total Issuer Investment Type Amount Investments

Federal Nat1onal Mortgage Association U.S. Instrumentality $ 964,612 20% Federal Home Loan Mortgage Corporation U.S. Instrumentality 1,090,736 22% Government National Mortgage Association U.S. Instrumentality 495,276 10% Small Business Administration Bonds U.S. Instrumentality 581,978 12% Local Government Investment Pool U.S. Instrumentality 623,948 13%

59

OZAUKEE COUNTY, WISCONSIN Notes to Basic Financial Statement

December 31, 2013

NOTE C- DETAILED NOTES ON ALL FUNDS (Continued)

Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the County manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations. The County does have a formal investment policy.

Information about the sensitivity of the fair value of the County's investments to market interest rate fluctuations is provided by the following table that shows the distribution of the County's investments by maturity:

Remaining Maturity (in Months 12 Months

I 13 to 24 I

60 More Than Investment Type Amount or less Months ths 60 Months

Money market fund $ 269,045 $ 269,045 $ $ $ U.S. treasury bonds 632,988 412,461 220,527 Federal agency securities 3,411,798 33,291 5,255 696,666 2,676,586 Wisconsin local government

investment pool 623,948 623,948 Totals $ 4,937,779 $ 1,338,745 $ 225,782 $ 696,666 $ 2,676,586

Investments with Fair Values Highly Sensitive to Interest Rate Fluctuations The County's investments include the following investments that are highly sensitive to interest rate fluctuations (to a greater degree than already indicated in the information provided above):

Mortgage backed securities. These securities are subject to early payment in a period of declining interest rates. The resultant reduction in expected total cash flows affects the fair value of these securities and makes the fair values of these securities highly sensitive to changes in interest rates.

Investment in Wisconsin Local Government Investment Pool

Fair Value at Year End

$ 2,796,499

The County has investments in the Wisconsin local government investment pool of $623,948 at year-end. The Wisconsin local government investment pool (LGIP) is part of the State Investment Fund (SIF), and is managed by the State of Wisconsin Investment Board. The SIF is not registered with the Securities and Exchange Commission, but operates under the statutory authority of Wisconsin Chapter 25. The SIF reports the fair value of its underlying assets annually. Participants in the LGIP have the right to withdraw their funds in total on one day's notice. At December 31, 2013, the fair value of the County's share of the LGIP'S assets was substantially equal to the carrying value.

60

OZAUKEE COUNTY, WISCONSIN Notes to Basic Financial Statement

December 31,2013

NOTE C- DETAILED NOTES ON ALL FUNDS (Continued)

2. Property Tax Apportionments Property taxes are apportioned annually in November to local taxing units within the County for financing state charges and the subsequent year's operations of the County. Since the November apportionment is not due from local taxing districts until February of the subsequent year, the County's apportionment is recorded as deferred revenue at year-end. Property tax payments from individual property owners are due in two installments by January 31 and July 31. During the month of February, each local taxing district settles with the County for both collected and unpaid property taxes. At the February settlement, the County becomes responsible for the collection of unpaid property taxes, including unpaid property taxes returned by local taxing districts for financing their individual operations. Property taxes subsequently not paid by property owners by July 31 of the same year are considered delinquent. The delinquent taxes are then acquired by the County's general fund on August 20 in accordance with state statutes in order to provide the County with a statutory lien.

Property taxes recorded on December 31, 2013 for collection in 2014 are for the following:

State apportionment County apportionment Total

$ 1,735,492 20,048,779

$ 21 '784,271

The above County apportionment of $20,048,779 is for financing 2014 operations and will be transferred in 2014 from deferred inflows of revenue to current revenues of the County's governmental and proprietary funds.

3. Delinquent Property Taxes-General Fund Delinquent property taxes of the general fund represent unpaid property taxes on real estate, including state and local government equities therein. Under state statutes, the County annually reimburses the state and local governments for their equities in property taxes not collected from the property owner. Unless redeemed by the property owner, the County will eventually obtain tax deed ownership of the properties comprising delinquent taxes. In the past, the County has generally been able to recover its investment in delinquent taxes by sale of the tax deeded properties.

On December 31, 2013 the County's general fund showed an investment in delinquent taxes as follows:

Tax certificates

An aging of the total delinquent taxes of on December 31, 2013 follows:

Tax Certificates

$ 105,228 23,870

180,245 455,813 872,808

Total $ 1.637,964

$ 1,637,964

Of the total $1,637,964 for delinquent taxes, $227,250 was collected by the County within 60 days after December 31, 2013. The remaining unpaid balance of $1,410,714 is recorded as nonspendable fund balance for the general fund.

61

OZAUKEE COUNTY, WISCONSIN Notes to Basic Financial Statement

December 31, 2013

NOTE C- DETAILED NOTES ON ALL FUNDS (Continued)

4. Capital Assets Capital asset activity for the year ended December 31, 2013 was as follows:

Beginning Balance Increases

Governmental activities: Capital assets, not being depreciated:

Land $ 12,058,438 $ 8,473 $ $ 12,066,911 Construction in progress 2,330,971 382,943 2,603,968 109,946 Total capital assets, not being depreciated 14,389,409 391,416 2,603,968 12,176,857

Capital assets, being depreciated: Land improvements 1,938,092 73,366 2,011,458 Buildings and building improvements 31,088,027 597,658 203,098 31,482,587 Machinery and equipment 20,193,441 604,473 2,204,335 18,593,579 Infrastructure 36,807,367 5,216,518 42,023,885

Subtotals 90,026,927 6,492,015 2,407,433 94,111,509

Less accumulated depreciation for: Land improvements 1,167,937 78,872 1,246,809 Buildings and building improvements 16,987,120 801,290 198,020 17,590,390 Machinery and equipment 15,390,265 1,202,195 2,183,243 14,409,217 Infrastructure 19,211,155 1,141,154 20,352,309 Subtotals 52,756,477 3,223,511 2,381,263 53,598,725

Total capital assets, being depreciated, net 37,270,450 3,268,504 26,170 40,512,784

Governmental activities capital assets, net $ 51,659,859 $ 3,659,920 $ 2!630,138 52,689,641

Less related long-term debt outstanding (less debt proceeds on hand of $5,599,098) 10,955,902

Net investment in capital assets $ 41,733,739

62

OZAUKEE COUNTY, WISCONSIN Notes to Basic Financial Statement

December 31, 2013

NOTE C - DETAILED NOTES ON ALL FUNDS (Continued)

Increases Business-type activities: Capital assets, not being depreciated:

Land $ 292,848 $ Construction in progress 227,912 222,700 Total capital assets, not being depreciated 520,760 222,700

Capital assets, being depreciated: Land improvements 4,112,811 335,319 Buildings and building improvements 29,543,888 232,930 Machinery and equipment 19,238,448 1,099,162

Subtotals 52,895,147 11667,411

Less accumulated depreciation for: Land improvements 2,742,848 115,119 Buildings and building improvements 13,533,264 890,651 Machinery and equipment 12,231,691 1,024,681 Subtotals 28,507,803 2,030,451

Total capital assets, being depreciated, net 24,387,344 ~363,040)

Business-type activities capital assets, net § 24,908,104 ~ {140,340l

Less related long-term debt outstanding

Net investment in capital assets

Depreciation expense was charged to functions of the County as follows:

Governmental activities General government Public safety Transportation Health and human services Culture and recreation Conservation and development Total depreciation expense- governmental activities

Business-type activities Nursing horne Highway department Independent living facility Gotf courses Residential Care Apartment Complex Total depreciation expense - business-type activities

63

Decreases

$ 29,094 227,912 257,006

684,007 684,007

586,600 586,600

97,407

§ 354,413

Ending Balance

$ 263,754 222,700 486,454

4,448,130 29,776,818 19,653,603 53,878,551

2,857,967 14,423,915 12,669,772 29,951,654

23,926,897

24,413,351

9,215,000

~ 15,198,351

$ 562,533 940,352 21,982

1,436,605 261,457

582 $ 3,223,511

$ 340,674 900,981 141,165 270,301 377,330

$ 2,030,451

OZAUKEE COUNTY, WISCONSIN Notes to Basic Financial Statement

December 31,2013

NOTE C - DETAILED NOTES ON ALL FUNDS (Continued}

5. lnterfund Receivable, Payables and Transfers

lnterfund receivables and payables between individual funds of the County, as reported in the fund financial statements, as of December 31, 2013 are detailed below:

lnterfund Receivables

General Fund $ 3,045,383 Special Revenue Funds

Human services 1,907,835 County roads and bridges 2,477,611 Aging services 70,645 ADRC 80,919 Public health 231,442 Land information 90,269 Revolving loans 17,585 Jail commissary 105,793 Transit - bus operations 163,960 Cargiver Coalition 3,137 Jail assessment 357,286 Ozaukee County Senior Conference 12,391 Criminal Justice Collaborative Council 23,260 Ozaukee County Fairgrounds 82,513

Debt Service Fund 229,398 Capital Project Funds

General capital projects 5,599,098 Capital reserve 781,408 Support services 335,248 Water projects 190,101

Enterprise Funds Lasala care center 1,756,613 Highway 1,043,447 Golf courses 472,710 Lasata Heights 935,113 Lasala RCAC 1,237,788

Internal Service Funds Information services 34,872 444

Totals $ 18,240,886 ~ 18~2401886

The County uses interfund receivables and payables to balance each fund for receipts and disbursement recorded by the general fund on behalf of each fund. The County's operating cash accounts are in the general fund and all transactions affecting each fund is entered through the general fund cash accounts resulting in an interfund receivable or payable depending on the transaction type. All balances are expected to be repaid in one year.

64

OZAUKEE COUNTY, WISCONSIN Notes to Basic Financial Statement

December 31, 2013

NOTE C - DETAILED NOTES ON ALL FUNDS (Continued)

lnterfund transfers for the year ended December 31, 2013 were as follows:

Transfer to:

County Nonmajor Lasata

General Roads and Governmental Care

Fund Bridges Funds Center Highway Total

Transfers from:

General fund $ $ $ 534,427 $205,000 $ 1,000,000 $ 1,739,427

Non major governmental funds 1,038,628 1 '139,160 615,522 2,793,310

Lasata Care Center 55,000 55,000

Non major proprietary funds 87,786 87,786

Totals $1,038,628 $ 1!139,160 $ 1,292,735 $205,000 $ 1,000,000 $4,675,523

Transfers made from human services and non-major funds to the general fund were to reimburse the general fund for expenditures paid by the general fund. Transfers to the County road and bridge fund were authorized to provide additional funds for road projects. Transfers from the general fund to nonmajor governmental funds were generally made to provide additional funding for authorized capital outlay projects. The remaining transfers from were to transfer the excess of revenues over expenses in accordance with the budget.

6. Long-term Obligations The following is a summary of changes in long-term obligations of the County for the year ended December 31, 2013:

Governmental activities: General Obligation Debt

Bonds Bond premium Compensated absences Governmental activities

Long-term obligations

Business-type activities: General Obligation Debt

Bonds Bond premium

Compensated absences Business-type activities

Long-term obligations

Outstanding 1/1/13 Issued

$ 10,470,000 $ 6,885,000 $ 366,854

2,576,179 194,187

2,697,192

Retired

Outstanding 12/31/13

Due Within One Year

800,000 $ 16,555,000 $ 1 ,435,000

53~01 507~40 62~10

2,576,178 2,697,193 269,719

$ 13,413,033 $ 9,776,379 $ 3,429,379 $ 19,760,033 $ 1,767,629

$ 9,615,000 $ 72,615

1,101,276 1,075,592

$ 400,000 $ 9,215,000 $ 4,584 68,031

1,101,276 1,075,592

425,000 4,586

69,867

$ 10,788,891 $ 1 ,075,592 $ 1,505,860 $ 10,358,623 $ 499,453

Total interest paid during the year on long-term debt totaled $751,377.

Compensated Absences Compensated absences are liquidated in the employees originating fund and department as used or upon termination of employment. In the past five years, 54% has been paid by the General Fund, 33% by Special Revenue funds and 13% by the Enterprise Funds.

65

OZAUKEE COUNTY, WISCONSIN Notes to Basic Financial Statement

December 31,2013

NOTE C- DETAILED NOTES ON ALL FUNDS (Continued)

Bonds $6,885,000 issued 7/2/2013: $605,000 to $770,000 due annually through 2023:

interest 2% to 3% $2,415,000 issued 5/23/2012; $15,000 to $375,000 due annually through 2030;

interest 2% to 3% $4,600,000 issued 8/24/11; $165,000 to $330,000 due annually through 2031;

interest 2% to 4%

$ 6,885,000

2,400,000

4,265,000 $3,740,000 issued 11/23/2010; $350,000 to $430,000 due annually through 2021;

interest 2% to 4% 2,715,000 $10,000,000 issued 12/4/08; $385,000 to $850,000 due annually through 2028;

interest 4% to 5% $4,345,000 issued 5/15/2006; $290,000 due in 2014;

interest 4% to 4.5%

Total Outstanding General Obligation Debt

Annual principal and interest maturities of the outstanding general obligation December 31, 2013 are detailed below:

Year Ended Business-type Activities December31 Principal Interest Principal Interest

9,215,000

290,000

$ 25,770,000

debt of $25,770,000 on

Totals Principal Interest

2014 $ 1,435,000 $ 468,447 $ 425,000 $ 401,045 $ 1,860,000 $ 869,492 2015 1,490,000 412,861 445,000 379,295 1,935,000 792,156 2016 1,530,000 377,186 470,000 356,420 2,000,000 733,606 2017 1,560,000 340,661 490,000 332,420 2,050,000 673,081 2018 1,605,000 299,511 515,000 307,295 2,120,000 606,806

2019-2023 6,665,000 814,269 3,010,000 1,176,134 9,675,000 1,990,403 2024-2028 1,325,000 301,697 3,860,000 444,466 5,185,000 746,163 2029-2031 945,000 26,100 945,000 26,100

$ 16,555,000 $ 3,040,732 $ 9,215,000 $ 3,397,075 $ 25,770,000 $ 6,437,807

Legal Margin for New Debt The County's legal margin for creation of additional general obligation debt on December 31, 2013 was:

Equalized valuation of the County Statutory limitation percentage General obligation debt limitation, per Section 67.03 of the

Wisconsin Statutes Total outstanding general obligation debt applicable to

debt limitation Less; Amounts available for financing general obligation debt

Debt service fund Net outstanding general obligation debt applicable to debt limitation Legal Margin for New Debt

66

$ 25,770,000

229,398

$ 10,226,456,100 (x) 5%

511,322,805

25,540,602 $ 485,782,203

OZAUKEE COUNTY, WISCONSIN Notes to Basic Financial Statement

December 31, 2013

NOTE C - DETAILED NOTES ON ALL FUNDS (Continued)

7. Fund Equity In the financial statements, the spendable governmental fund balances are classified in the following categories:

Restricted Fund Balances Portions of governmental fund balances are restricted for specific purposes by constraints imposed by external providers. At December 31, 2013, restricted fund balances consisted of the following:

General Fund Veteran's memorial $ 22,480 Federal forfeitures 82,539 State forfeitures 3,746

108,765 Special Revenue Funds

Land information 90,269 Revolving loans 318,877 Jail commissary 105,793 Caregiver coalition 3,137 Criminal justice collaborative council 23,260 Ozaukee County senior conference 12,391

553,727

Debt Service 229,398

Capital Projects Funds General capital projects 5,599,098

Total Restricted Fund Balances $ 6!490!988

67

OZAUKEE COUNTY, WISCONSIN Notes to Basic Financial Statement

December 31,2013

NOTE C - DETAILED NOTES ON ALL FUNDS (Continued)

COMMITTED FUND BALANCES

Portions of governmental fund balances have been committed to specific purposes by the County Board. These amounts cannot be used for any other purpose unless the County Board approves the change. At December 31, 2013, committed fund balances consisted of the following:

General Fund Eastern Shores Library $ 24,775

Special Revenue Funds Human services 1 ,402,195 County roads and bridges 2,477,611 Aging services 173,520 Public health 251,747 Transit-bus operations 304,206 Jail assessment 357,286 Ozaukee County Fairgrounds 82,738

5,049,303 Capital Projects Funds

Capital reserve- county administrator 807,006 Support services 335,248 Water projects 267,744

1,409,998

Total Committed Fund Balances $ 6,484,076

ASSIGNED FUND BALANCES

Portions of governmental fund balances have been assigned to specific purposes by the Finance Committee. These amounts cannot be used for any other purpose unless the Finance Committee approves the change. At December 31, 2013, assigned fund balances consisted of the following:

General Fund Wisconsin coastal programs WCA insurance CEASE DARE SWAT Tree programs Prairie seed program Rain barrels Contingency Fin S/W

Total Assigned Fund Balances

$

$

68

609 73,796

600 105

18,994 53,445 2,634

943 99

151,225

OZAUKEE COUNTY, WISCONSIN Notes to Basic Financial Statement

December31, 2013

NOTE C • DETAILED NOTES ON ALL FUNDS {Continued)

8. Minimum Fund Balance Policy The County has adopted the following fund balance policy:

In order to maintain sufficient casr• reserves for working capital and emergency expenditures and to protect the County's Aaa bond rating, Ozaukee County has adopted the following minimum general fund balance policy: Ozaukee County will maintain a minimum unassigned general fund balance of 10% of the previous year's general fund gross expenditure budget and at least 12% combined unassigned funds of the general fund and select special revenue funds (Transit, Human Services, Public Health and Aging) of the prior year's combined expenditures.

Budgeted 2013 General Fund Expenditures Minimum Total Unassigned Fund Balance 20% of total budgeted General Fund Expenditures

2013 General Fund and Special Revenue Fund Expenditures Minimum Total Unassigned Fund Balance 12% of 2013 General Fund and Special Revenue Fund Expenditures

The General Fund unassigned fund balance on December 31, 2013 totaled $5,671,954.

69

$ 22,035,504 10%

$ 2,203,550

$ 36,676,060 12%

$ 4,401.127

NOTED- OTHER INFORMATION

1. Retirement Commitments

OZAUKEE COUNTY, WISCONSIN Notes to Basic Financial Statement

December31, 2013

All eligible County employees participate in the Wisconsin Retirement System {WRS), a cost-sharing, multiple-employer, defined benefit, public employee retirement system. All employees initially employed by a participating WRS employer prior to July 1, 2011, expected to work at least 600 hours a year {440 hours for teachers and school district educational support employees) and expected to be employed for at least one year from employee's date of hire, are eligible to participate in the WRS. All employees initially employed by a participating WRS employer on or after July 1, 2011, and expected to work at least 1200 hours a year (880 hours for teachers and school district educational support employees) and expected to be employed for at least one year from employee's date of hire are eligible to participate in the WRS. Employees hired to work nine or ten months per year, (e.g. teachers contracts), but expected to return year after year are considered to have met the one-year requirement.

Effective the first day of the first pay period on or after June 29, 2011, the employee required contribution was changed to one-half of the actuarially determined contribution rate for employees in the General category, including Teachers, and Executives and Elected Officials. Required contributions for protective employees are the same rate as general employees. Employers are required to contribute the remainder of the actuarially determined contribution rate. The employer may not pay the employee required contribution unless provided for by an existing collective bargaining agreement. Contribution rates are as follows:

General (including Teachers) Executives & Elected Officials Protective with Social Security Protective without Social Security

Employee 6.65% 7.00% 6.65% 6.65%

2013 Employer 6.65% 7.00% 9.75% 12.35%

The payroll for County employees covered by the WRS for the year ended December 31, 2013 was $26,383, 764; the employer's total payroll was $27,127,645. The total required contribution for the year ended December 31, 2013 was $3,613,127, which consisted of $1,857,589 or 7.04% of covered payroll from the employer, and $1,755,538 or 6.65% of covered payroll from employees. Total contributions for the years ended December 31, 2012 and 2011 were $3,384,070 and $2,223,970, respectively, equal to the required contributions for each year.

Employees who retire at or after age 65 {62 for elected officials and 54 for protective occupation employees with less than 25 years of service, 53 for protective occupation employees with more than 25 years of service) are entitled to receive a retirement benefit. Employees may retire at age 55 (50 for protective occupation employees) and receive actuarially reduced benefits. The factors influencing the benefit are: (1) final average earnings, {2) years of creditable service, and (3) a formula factor. A final average earnings is the average of the employee's three highest year's earnings. Employees terminating covered employment and submitting application before becoming eligible for a retirement benefit may withdraw their contributions and, by doing so, forfeit all rights to any subsequent benefit. For employees beginning participation on or after January 1, 1990, and no longer actively em played on or after April 24, 1998, creditable service in each of five years is required for eligibility for a retirement annuity. Participants employed prior to 1990 and on or after April 24, 1998 and prior to July 1, 2011 are immediately vested. Participants who initially became WRS eligible on or after July 1, 2011 must have five years of creditable service to be vested.

The WRS also provides death and disability benefits for employees. Eligibility and the amount of all benefits are determined under Chapter 40 of Wisconsin Statutes.

The WRS issues an annual financial report that may be obtained by writing to the Department of Employee Trust Funds, P.O. Box 7931, Madison, WI 53707-7931.

70

OZAUKEE COUNTY, WISCONSIN Notes to Basic Financial Statement

December 31, 2013

NOTED- OTHER INFORMATION (Continued)

2. Risk Management The County is exposed to various risks of loss related to torts; theft, damage or destruction of assets; errors or omissions; employee health and accident claims; or acts of God. The County has chosen to retain a portion of the risks through self-insurance programs and has also purchased insurance to transfer other risks to outside parties. A description of the County's risk management is presented below:

a. Property and Liability Insurance - The County is a member of the Wisconsin County Mutual Insurance Company {WCMIC). WCM!C was created by several governmental units within the State of Wisconsin to provide liability insurance services to its members. The County pays premiums to WCMIC for its liability insurance coverage. The actuary for CMIC determines charges to its members for the expected losses and loss adjustment expenses on which premiums are based. Premium charges for WCMIC are recorded as expenditures or expenses in various funds of the County. A separate financial report is issued annually by WCMIC.

b. Other Insurance - The County also purchases commercial insurance policies for various property and other liability risks. Payments of premiums for these policies are also recorded as expenditures or expenses in various funds of the County.

Claims and settlements related to the commercial insurance policies have not exceeded the coverage limits in the past three years.

3. Operating Lease with Milwaukee Curlers Association, Inc. Ozaukee County and the Milwaukee Curlers Association, Inc. entered into a twenty (20) year triple net lease in 2012 for a new multipurpose County facility with the option of an additional twenty {20) year renewal. The Curlers will have exclusive use of the building from October through March of the year in exchange for a $52,995 annual payment and all costs associated with occupancy. The tenant has no provision for assignment or sublease.

Both parties have an obligation to escrow an annual amount for building maintenance and improvement. The escrow amount is $5,000 for the first five (5) years, $7,500 for the second five (5) years, $15,000 for the third five (5) years, $20,000 for the fourth five (5) years, and $25,000 for the balance of the term. The County will be responsible for administering the funds and approving all repairs. The lessee's contribution is non redeemable.

4. Contingencies a. The County participates in a number of federal and state assisted grant programs. These programs are

subject to program compliance audits by the grantors or their representatives. An audit under OMB Circular A-133 has been conducted but final acceptance is still pending. Accordingly, the County's compliance with applicable grant requirements will be established at some future date. The amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time although the County expects such amounts, if any, to be immaterial.

b. From time to time, the County is party to other various pending claims and legal proceedings. Although the outcome of such matters cannot be forecast with certainty, it is the opinion of management and Corporation Counsel that the likelihood is remote that any such claims or proceedings will have a material adverse effect on the County's financial position or results of operations.

71

OZAUKEE COUNTY, WISCONSIN Notes to Basic Financial Statement

December 31, 2013

NOTE D- OTHER INFORMATION (Continued)

5. Property Tax Levy Limit Wisconsin state statute, Act 32, limits property tax levies for all Wisconsin cities, villages, town, counties and school districts. For 2013 budget year, the increase in the maximum allowable tax levy is limited to the percentage change in the County's January 1 equalized value as a result of new construction less improvements removed but not less than zero percent. Two exceptions allow for a greater increase. The first allows for the passage of a special referendum and the second is to cover any cost of a transfer of service between the County and a local government. An exception can also be made for debt service if it meets special qualifiers. The actual increase for the County for the 2013 budget was .95%. This was above net new construction, .82%.

72

OZAUKEE COUNTY, WISCONSIN Schedule of Revenues and Other Financing Sources

Budget to Actual General Fund

For the Year Ended December 31, 2013

Budgeted Amounts Original I Final

Revenues Taxes

Property $ 8,924,737 $ 8,924,737 Other taxes County Sales 6,410,000 6,410,000 Managed Forest Land 250 250 Interest Delinquent 400,000 400,000 Penalty Delinquent 200,000 200,000 Use Value 3,500 3,500 Payment In Lieu of 5,200 5,200 Total Taxes 15,943,687 15,943,687

Intergovernmental Conservation Aid 5,244 5,244 Conservation Aid-Wildlife Admin & Abate 19,170 19,170 Conservation Aid-WDATCP Staff Support 134,756 139,446 Conservation Aid-WDATCP Land Owner 65,000 111,000 Court Support 215,643 215,643 DA TCP Farmland Preservation 15,000 DWD Child Support 396,323 396,323 EMPG 49,747 49,747 Federal Aid Environmental Quality 26,796 26,796 Federal Aid WCMP Oz Coastal Resource Plan 28,241 Guardian Ad Litem 43,248 43,248 Interpreter Service 2,000 2,000 Other State Aid 3,890 3,890 Police Instruction 500 500 Probation and Parole 35,000 35,000 Snowmobile Trail Grant State Aid 5,000 5,000 State Aid- Conservation State Aid - EPCRA Equipment 8,000 8,000 State Aid - EPCRA Planning 18,975 18,975 State Aid - WDNR Snowmobile Maint Grant 27,520 27,520 State Aid - Haz-Mat Preparedness Grant 644 State Aid - Homeland Security Grant 13,471 State Aid-WDNR Ozaukee Interurban Trail 120,000 State Aid -Training Grant 25,063 State Aid -Transportation 5,000 5,000 State Aid -Victim Witness 55,000 55,000 State Reimbursement Personal Property 65,000 65,000 State Shared Taxes 505,000 505,000 State Aid-Veterans Affair Grant 13,000 13,000 Veterans Service Trans Grant 1,000 1,000 Total Intergovernmental 1,700,812 1,953,921

(Continued)

73

Variance with Final Budget-

Actual Positive Amounts (Negative)

$ 8,924,737 $ 1,407 1,407

6,796,393 386,393 310 60

439,397 39,397 226,009 26,009

19,986 16,486 5,165 (35}

16,413,404 469,717

980 (4,264) 11,369 (7,801)

150,520 11,074 110,054 (946) 226,235 10,592

15,000 446,071 49,748

58,171 8,424 24,750 (2,046)

(28,241) 44,603 1,355

3,408 1,408 5,809 1,919

16,180 15,680 41,469 6,469 39,500 39,500

(5,000)

9,560 1,560 17,332 (1,643)

(27,520) 29,333 28,689 13,207 (264)

(120,000) 29,689 4,626

5,000 63,425 8,425 65,262 262

244,986 (260,014) 13,000

1,205 205 1,686,118 !267,803}

Public Charges For Services Bail Forfeiture Revenue Civil Fees Clerk of Court Fees Civil Clerk of Court Fees Municipal Clerk of Court Fees CDCF&PPF Coroner Fees Corporation Counsel Fees Family Court Counseling Fees Federal Forfeiture Revenue File Fees Juvenile Legal File Fees Tr/Cr Foreclosure Garnishments Genetic Testing Reimbursement

OZAUKEE COUNTY, WISCONSIN Schedule of Revenues and Other Financing Sources

Budget to Actual General Fund

For the Year Ended December 31, 2013

Budqeted Amounts Original I Final

20,000 20,000 68,750 68,750 60,000 60,000

19,000 19,000 70,000 70,000

500 500 7,000 7,000

300 300 80,000 80,000

5,500 5,500 100 100

2,500 2,500 Guardian Ad Litem Reimbursement 130,000 130,000 Huber Prisoner Room and Board 260,250 260,250 Indigent Def Council Fees 40,000 40,000 Jury Fee 6,000 6,000 Land Division Review Fees 550 550 Maintenance List 1,200 1,200 Meal Reimbursement 13,750 13,750 Mediation Fees 7,200 7,200 Non Huber Prisoner Room & Board 68,250 68,250 Nonmetallic Fees 3,410 3,410 Office Supplies 60 60 Other Public Charges 6,550 6,550 Park Admission Fees 11,250 11,250 Photocopy Revenue 700 700 POWTS Plan Review Fees 18,000 18,000 Print Services 400 400 Probate Fees 40,000 40,000 Program Fees 600 600 Psych Exam Reimbursement 2,000 2,000 Publications and Materials 200 200 Register of Deeds Fees 750,000 750,000 Restitution 13,500 13,500 Sanitation Fees 5,000 5,000 Sanitation Maintenance Fee 1,600 1,600 Special Deputy Fees 200 200 State Forfeiture Revenue Tire Collection Fees 800 800 Transportation Fees Treasurer Fees 3,750 3,750 Tree Revenue 40,850 40,850 Vital Statistics Reimbursement 20 20 Warrants 6,000 6,000 Witness Fees Zoning Fees 1,000 1,000 Total Public Charges for Services 1,766,740 1,766,740

(Continued)

74

Variance with Final Budget-

Actual Positive Amounts (Negative)

11 '149 (8,851) 51,235 (17,515) 50,292 (9,708)

125 125 20,289 1,289 92,209 22,209

750 250 6,760 (240) 7,078 7,078 1,495 1,195

73,812 (6,188) 7,425 1,925

105 5 2,289 (211)

180,379 50,379 255,218 (5,032)

34,415 (5,585) 7,594 1,594

(550) 1,055 (145)

16,180 2,430 3,251 (3,949)

86,893 18,643 1,145 (2,265)

3 (57) 11,207 4,657 35,107 23,857

534 (166) 25,030 7,030

72 (328) 44,725 4,725

(600) 4,125 2,125

45 (155) 749,700 (300)

10,798 (2,702) 3,100 (1,900) 3,150 1,550

214 14 1,959 1,959

884 84 880 880

3,037 (713) 26,997 (13,853)

(20) 8,515 2,515

20 20 935 ~65}

1,842,180 75,440

OZAUKEE COUNTY, WISCONSIN Schedule of Revenues and Other Financing Sources

Budget to Actual General Fund

For the Year Ended December 31, 2013

Budgeted Amounts Original l Final

Intergovernmental Charges for Service Adult Prisoner Boarding 326,000 326,000 DNA Samples 2,000 2,000 Election Reimbursement 25,000 25,000 Inmate Prescriptions 20,000 20,000 Shooting Range Fees 5,000 5,000 Support Services-Mequon Support Services-Port Washington Support Services-Saukville Support Services-Thiensville Transportation Reimbursement 201000 20,000 Total Intergovernmental Charges for Service 398,000 398,000

Interdepartmental Charges for Service Child Support 54,000 54,000 Indirect Charges 225,000 225,000 Janitorial Rent 53,217 53,217 Labor For All Depts 1,500 1,500 Office Supplies 17,000 17,000 Photocopies 15,000 15,000 Postage 86,000 86,000 Printing 9,000 9,000 Sheriffs Department Service 1 500 1 500 Total Interdepartmental Charges for Service 462~217 462,217

Fines and Forfeits County Ordinance Fines 110,000 110,000 County Share State Fines 1501000 150,000 Total Fines and Forfeits 260,000 260,000

License and Permits Domestic Partnership Marriage License 27,000 27,000 Nonmetallic Permits 805 805 Sanitation Permits 56,500 56,500 Zoning Permits 15 000 15 000 Total License and Permits 99,305 99,305

Investment Income Change in Fair Value DANA 43,000 43,000 Interest Memorial Trust 50 50 Interest on Investments 47,000 47,000 Interest Revenue Investments 2,000 2,000 Interest Revenue Judgements 86,000 86,000 Interest WCA Insurance 1,000 1,000 Total Investment Income 179:050 179:050

(Continued)

75

Variance with Final Budget-

Actual Positive Amounts (Negative)

253,154 (72,846) 1,000 (1 ,000)

22,344 (2,656) 18,700 (1,300) 4,300 (700)

716 716 470 470 180 180

3,803 3,803 10,075 {9,925}

314:742 {83,258l

53,550 (450) 200,000 (25,000)

59,443 6,226 (1 ,500)

15,135 (1 ,865) 14,448 (552) 77,950 (8,050) 4,936 (4,064) 1 695 195

427,157 (35,060)

84,368 (25,632) 145,599 (4,401} 229,967 (30,033}

375 375 31 '115 4,115

1,375 570 76,800 20,300 15,382 382

125,047 25,742

(2, 143) (45,143) 66 16

58,483 11,483 2,537 537

65,594 (20,406) 88 (912}

124,625 £54,425}

Miscellaneous General Accounting Discounts Taken Fund For Lake Michigan Gain Loss Fixed Assets Disposal Grants From Organizations Insurance Refunds Other Revenue POWTS Software Revenue Profit on Tax Deeds Rental of County Property Telephone Commissions Vending Commissions Wage Assignment Fees Recovery of Bad Debt Total Miscellaneous

Total Revenues

Other Financing Sources Transfers In

OZAUKEE COUNTY, WISCONSIN Schedule of Revenues and Other Financing Sources

Budget to Actual General Fund

For the Year Ended December 31, 2013

BucJaeted Amounts Original J Final

6,500 6,500 19,200 19,200 19,000 19,000

7,500

215,089 267,889 3,000 3,000

10,000 10,000 77,175 77,175

130,005 130,005 600 600 600 600

481 '169 541,469

21,290,980 21,604,389

265,166 708,628

Total Revenues and Other Financing Sources i 21,556,146 ~ 22,313.017

76

Variance with Final Budget-

Actual Positive Amounts (Negative)

44,160 44,160 238 (6,262)

(19,200) 22,236 3,236

7,500 21,160 21,160

346,278 78,389 (3,000)

9,716 (284) 72,768 (4,407)

136,489 6,484 447 (153) 803 203

(1 ,548} {1 ,548} 660,247 118,778

21,823,487 219,098

1,038,628 330,000

i 22,862,115 ~ 549,098

Expenditures General Government

County administrator Regional Services Shelter Care Adovactes Financial Software General accounting Payroll Purchasing Internal Audit External Audit Department Support HWY Department Support HS Department Services-Other Human resources Property and liability insurance Corporation Counsel General Fund Miscellaneous BudgeUGrant /Project Mgmt Radio Services IT Study Implementation County Board Legislative Support County clerk Elections Central services State Special Charges Register of deeds Web Development County Treasurer Property Taxes Tax Deed Assessment of Property Coroner Administration Center Justice center Advocates house Clerk of courts District attorney Victim Witness Program Total General Government

(Continued)

OZAUKEE COUNTY, WISCONSIN Schedule of Expenditures and Other Financing Uses

Budget to Actual General Fund

For the Year Ended December 31, 2013

Budgeted Amounts Oriqinal I Final

$ 203,488 $ 203,488 858,768 858,768

23,625 23,625 49,791 57,291

201,196 201,196 160,148 160,148 66,034 66,034 46,985 46,985 25,500 25,500

170,021 170,021 186,699 186,699 111,164 111,164 246,485 246,485 210,757 210,757 221,527 221,527

51,630 51,630 159,959 159,959 436,627 451,627

164,037 164,037 88,537 88,537 49,337 49,337

123,334 123,334 240,986 240,986

1,200 1,200 398,314 398,314

9,714 9,714 217,782 217,782

12,425 12,425 10,000 10,000

181,014 181,014 135,783 135,783 509,800 509,800 660,687 755,687

1,462,023 1,462,023 383,796 436,596 103,310 103,310

8,182,483 8,352,783

77

Variance with Final Budget-

Actual Positive Amounts (Neqative}

$ 203,654 $ (166) 862,095 (3,327) 23,625 27,904 29,387

214,078 (12,882) 135,960 24,188 120,485 (54,451) 45,572 1,413 30,322 (4,822)

165,013 5,008 189,087 (2,388) 61,631 49,533

219,259 27,226 250,460 (39,703) 170,053 51,474 61,498 (9,868)

163,897 (3,938) 470,405 (18,778) 104,467 (104,467) 154,239 9,798 100,911 (12,374) 45,279 4,058

117,366 5,968 197,724 43,262

1,446 (246) 399,916 (1 ,602)

9,196 518 211,379 6,403

8,875 3,550 7,133 2,867

178,371 2,643 116,637 19,146 485,174 24,626 677,863 77,824 49,467 (49,467)

1,443,039 18,984 374,301 62,295 105,021 !1 ,711)

8,202,802 149,981

Public Safety Sheriff Administration Patrol Criminal Investigation Drug Task Force Support Service Special Enforcement Grant Sheriff Fleet Management Jail Court Security Emergency Management Water Safety Patrol EPCRASARA Total Public Safety

Public works Sanitation inspector Total Public Works

Health and Human Services Veterans relief Veterans services Child support

OZAUKEE COUNTY, WISCONSIN Schedule of Expenditures and Other Financing Uses

Budget to Actual General Fund

For the Year Ended December 31, 2013

Budgeted Amounts Original I Final

928,993 928,993 2,201,970 2,201,970

563,454 563,454 373,325 373,325

1,426,018 1,426,018

251,408 251,408 4,128,941 4,128,941

502,798 502,798 184,373 184,373 30,073 30,073 67,778 106,956

10,659,131 10,698,309

130,856 130,856 130,856 1301856

2,500 6,285 153,113 153,113 449,375 449,375

Total Health and Human Services 604,988 608,773

Culture and Recreation Cultural and Recreation Grants 45,500 45,500 UW Extension 230,851 233,320 Youth service 2,750 2,750 Parks -Administration 197,802 197,802 Harborview Park 4,000 4,000 Covered Bridge Park 15,071 15,071 Ehlers Park 12,500 12,500 Hawthorne Hills Park 10,983 10,983 HH Peters Youth Camp 17,333 17,333 Interurban Recreation Trail 20,000 172,000 Lions Den Park 21,431 21,431 Mee Kwon Park 24,192 24,192 Shady Lane Park 11,800 11,800 Snowmobile Trails 27,520 27,520 Tendick Park 27,603 27,603 Virmond Park 41,948 49,448 Waubedonia Park 55,766 55,766 Planning 108,506 171,747 Total Culture and Recreation 875,556 1,100,766

(Continued)

78

Variance with Final Budget-

Actual Positive Amounts (Negative)

856,896 72,097 2,322,641 (120,671)

645,225 (81 ,771) 363,348 9,977

1,400,800 25,218 27,115 (27,115)

217,365 34,043 4,066,771 62,170

568,142 (65,344) 149,807 34,566

16,775 13,298 115,747 (8,791)

10,750,632 (52,323)

134,661 ~3.805) 134,661 {3,805}

1,435 4,850 140,889 12,224 469,758 {20,383} 612,082 (3,309}

45,500 188,649 44,671

2,644 106 203,257 (5,455)

2,500 1,500 9,090 5,981 8,308 4,192 7,519 3,464

21,346 (4,013) 30,406 141,594 19,823 1,608 69,118 (44,926) 10,952 848 27,670 (150) 27,769 (166) 28,837 20,611 60,738 (4,972)

126,330 45,417 890,456 210,310

Conservation and Development Land Conservation Gypsy Moth Suppression Wildlife Admin and Abatement Tree & Prairie Seed Program Zoning Nonmetallic Mining

OZAUKEE COUNTY, WISCONSIN Schedule of Expenditures and Other Financing Uses

Budget to Actual General Fund

For the Year Ended December 31, 2013

Budgeted Amounts Original I Final

350,608 427,129 5,948 5,948

19,049 19,049 45,490 45,490

139,186 139,186 2,453 2,453

Total Conservation and Development 562,734 639,255

Capital Outlay Data Processing Equipment 6,500 6,500 Other Moveable Equipment 115,975 115,975 Vehicles 137,000 137,000 Building Improvements 40,000 245,287 Total Capital Outlay 299,475 504,762

Total Expenditures 21,315,223 22,035,504

Other Financing Uses Transfers out i ,593,462

Total Expenditures and Other Financing Uses $ 21,315,223 ~ 23,628,966

79

Variance with Final Budget-

Actual Positive Amounts (Negative)

429,672 (2,543) 5,732 216

10,984 8,065 35,468 10,022

139,554 (368) 2,498 {45i

623,908 15,347

6,500 48,435 67,540

152,585 (15,585) 186,981 58,306 388,001 116,761

21,602,542 432,962

1,739,427 (145,965)

~ 23,341,969 ~ 286,997

NONMAJOR GOVERNMENTAL FUNDS

SPECIAL REVENUE FUNDS

Aging Services -To account for the Older Americans Act and Elderly Transportation programs operated by the County. Financing is provided by federal and state grants and property taxes.

ADRC- To account for the operations of the ADRC(Aging Disability Resource Center) program. Financing is provided by a combination of federal and state grants and charges for services.

Public Health -To account for the operations of the public health department. Financing is provided by a combination of federal and state grants, property taxes and charges for services.

Land Information- To account for specific grants associated with modernizing land records system.

Revolving Loans -To account for the receipt and disbursement of an economic revolving loan block grant.

Jail Commissary- To account for profits from inmate commissary sales.

Transit- Bus Operations- To account for operations of the Ozaukee Express Bus program. Financing is provided by federal and state aids.

Jail Assessment- To account for the operations of the Jail Assessment activity.

Ozaukee County Senior Conference- To account for the operations of the Ozaukee County Senior Conference Center.

Ozaukee County Fairgrounds- To account for the operations of the fairgrounds.

Criminal Justice Collaborative Council -To account for the operations of the Criminal Justice Collaborative Council.

Caregiver Coalition To account for the Coalition ofCaregivers.

DEBT SERVICE FUND

To account for the accumulation of resources used for the payment of general obligation bonds and notes issued by the County.

CAPITAL PROJECTS FUNDS

To account for financial resources to be used for the acquisition or construction of major capital facilities other other then those financed by Proprietary Funds. During 2013 the County used capital project funds for the following projects:

Bicycle Trail General Capital Projects Capital Reserve Support Services Water Projects

ASSETS Cash and investments $ Receivables

Taxes Accounts Loans

Due from other funds Due from other governments Prepaid items TOTAL ASSETS ~

LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES

Liabilities Accounts payable $ Due to other funds Unearned revenues Total Liabilities

Deferred Inflows of Resources Property taxes Loans receivable Total Deferred Inflows of Resources

Fund Balances Nonspendable Restricted Committed Total Fund Balances

TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES i

OZAUKEE COUNTY, WISCONSIN Combining Balance Sheet

Non major Governmental Funds December 31, 2013

Special Revenue Funds

Aging Public Land Services ADRC Health Information

40 $ $ 200 $

85,023 627,660 5,915 85,858 14,856

70,645 231,442 90,269 96,920 16,462

258,543 ~ 85,858 i 890,620 i 90,269

$ 4,939 $ $ 80,919

11,213 85,858 11,213

85,023 627,660

85,023 627,660

90,269 173,520 251,747 173,520 251,747 90,269

258,543 i 85,858 i 890,620 l1l 90,269

80

Revolving Jail Transit-Bus Loans Commissary Operations

$ 301,292 $ $

3,851 718,954 1,000

2,602,320 17,585 105,793

467,166 53

~ 2,921,197 i 109,697 ~ 1,187,120

$ $ $ 163,960

163,960

3,851 718,954 2,602,320 2,602,320 3,851 718,954

53 318,877 105,793

304,206 318,877 105,846 304,206

i 2,921,197 i 109,697 :2 1,187,120

(Continued)

ASSETS Cash and investments Receivables

Taxes Accounts Loans

Due from other funds Due from other governments Prepaid items TOTAL ASSETS

LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES

Liabilities Accounts payable Due to other funds Unearned revenues Total Liabilities

Deferred Inflows of Resources Property taxes Loans receivable Total Deferred Inflows of Resources

Fund Balances Nonspendable Restricted Committed Total Fund Balances

TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES

Jail

OZAUKEE COUNTY, WISCONSIN Combining Balance Sheet

Non major Governmental Funds December 31, 2013

Special Revenue Funds Ozaukee Cty

Senior Ozaukee Cty Assessment Conference Fairgrounds

$ $ $ 225

66,388

357,286 12,391 82,513

~ 357,286 ll1 12,391 m 149,126

$ $ $

66,388

66,388

12,391 357,286 82,738 357,286 12,391 82,738

ll1 357,286 ~ 12,391 ~ 149,126

81

Continued) Criminal Justice

Collaborative Caregiver Debt Council Coalition Service

$ $ $

814,900

23,260 3,137 229,398

~ 23,260 i 3,137 ~ 1,044,298

$ $ $

814,900

814,900

23,260 3,137 229,398

23,260 3,137 229,398

~ 23,260 ~ 3,137 m 1,044,298

(Continued)

ASSETS Cash and investments $ Receivables

Taxes Accounts Loans

Due from other funds Due from other governments Prepaid items TOTAL ASSETS ~

LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES

Liabilities Accounts payable $ Due to other funds Unearned revenues Total Liabilities

Deferred Inflows of Resources Property taxes Loans receivable Total Deferred Inflows of Resources

Fund Balances Nonspendable Restricted Committed Total Fund Balances

TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES §

Bicycle Trail

OZAUKEE COUNTY, WISCONSIN Combining Balance Sheet

Nonmajor Governmental Funds December 31, 2013

Capital Projects Funds General Capital Capital Reserve Projects Cty Administrator

$ $

25,598

5,599,098 781,408

§ 5,599,098 § 807,006

$ $

5,599,098 807,006

5,599,098 807,006

~ 5,599,098 ~ 807,006

82

Total Nonmajor

Support Water Governmental Services Projects Funds

$ $ $ 301,757

2,316,776 12,530 145,757

2,602,320 335,248 190,101 8,129,574

65,113 645,661 53

~ 335,248 ~ 267,744 ~ 14,141,898

$ $ $ 4,939 244,879

11,213 261,031

2,316,776 2,602,320 4,919,096

53 6,382,223

335,248 267,744 2,579,495 335,248 267,744 8,961,771

§! 335.248 § 267,744 ~ 14,141,898

Revenues Taxes $ Intergovernmental Public charges for services Intergovernmental charges for service Interdepartmental charges for service Fines and forfeits Investment income Miscellaneous Total Revenues

Expenditures Current

General government Public safety Public works Health and human services Culture and recreation Conservation and development

Debt service Principal Interest and fiscal charges

Capital outlay Total Expenditures

Excess of Revenue Over (Under) Expenditures

Other Financing Sources (Uses) Long term debt issued Premium on long term debt Transfers in Transfers out Total Other Financing (Sources) Uses

Net Change in Fund Balances

Fund Balances (Deficits)-Beginning of Year

Fund Balances- End of Year m

OZAUKEE COUNTY, WISCONSIN Combining Statement of Revenues, Expenditures and Changes in Fund Balance

Nonmajor Governmental Funds For the Year Ended December 31, 2013

Special Revenue Funds

Aging Public Land Revolving Services ADRC Health Information Loans

80,661 $ $ 651,697 $ $ 353,874 846,530 308,633 300 133,559 67,038 152,846

34,010 21,419

545,822 2 722 5 310 10 258 7

592,235 851,840 11071,636 153,153 545,822

588,983 887,562 1,089,502

215,939 440,691

588,983 8871562 1 p89,502 215,939 440,691

3,252 (35,722) (17,866} (62/86) 105,131

3,252 (35,722) (17,866) (62,786) 105,131

170 268 35 722 269 613 153 055 213746

173,52Q m m 251,747 ;Ji 90,269 ;Ji ;21~.~77

83

Jail Transit-Bus Commissary Operations

$ $ 727,333 1,831,625

716,555

3,795

44102 4 727 44,102 31284!035

57,818 2,876,646

247 370 57,818 3,124,016

{13/16} 160,019

(13,716) 160,019

119 562 144187

lli 105,846 ;Ji 304,2Q6

(Continued)

Revenues Taxes $ Intergovernmental Public charges for services Intergovernmental charges for service Interdepartmental charges for service Fines and forfeits Investment income Miscellaneous Total Revenues

Expenditures Current

General government Public safety Public works Health and human services Culture and recreation Conservation and development

Debt service Principal Interest and fiscal charges

Capital outlay Total Expenditures

Excess of Revenue Over (Under) Expenditures

Other Financing Sources (Uses) Long term debt issued Premium on long term debt Transfers in Transfers out Total Other Financing (Sources) Uses

Net Change in Fund Balances

Fund Balances (Deficits)-Beginning of Year

Fund Balances- End of Year $

OZAUKEE COUNTY, WISCONSIN Combining Statement of Revenues, Expenditures and Changes in Fund Balance

Nonmajor Governmental Funds For the Year Ended December 31, 2013

Special Revenue Funds (Continued) Ozaukee Cty Criminal Justice

Jail Senior Ozaukee Cty Collaborative Caregiver Assessment Conference Fairgrounds Council Coalition

$ $ 69,305 $ $ 478

107,586 14,525 145,803 920

3 500 25 135 3 033 107 586 18 025 215,133 135 4 431

15,851 1,925 2,610 217,445

15 851 217 445 1 925 2 610

107!586 2:174 (21312l !1 /90) 11821

50,000

50,000

2,174 47,688 {1,790) 1,821

408 575 10 217 35 050 25 050 1 316

~liZ.282 $ 12.~1 $ §2,7~1,! $ 23,~§Q $ ~.1~7

84

Debt Service

$ 15,000

15 000

800,000 405,730

1 205 730

{1.190,7301

194,187 1,145,275

11339,462

148,732

80 666

l!i 229,~~8

Revenues Taxes Intergovernmental Public charges for services Intergovernmental charges for service Interdepartmental charges for service Fines and forfeits Investment income Miscellaneous Total Revenues

Expenditures Current

General government Public safety Public works Health and human services Culture and recreation Conservation and development

Debt service Principal Interest and fiscal charges

Capital outlay Total Expenditures

Excess of Revenue Over (Under) Expenditures

Other Financing Sources (Uses) Long term debt issued Premium on long term debt Transfers in Transfers out Total Other Financing (Sources) Uses

Net Change in Fund Balances

Fund Balances (Deficits)-Beginning of Year

Fund Balances- End of Year

$

Si

OZAUKEE COUNTY, WISCONSIN Combining Statement of Revenues, Expenditures and Changes in Fund Balance

Non major Governmental Funds For the Year Ended December 31, 2013

Capital Projects Fund General Capital

Bicycle Capital Reserve Support Trail Projects Cty Administrator Services

$ $ $ $ 1,388,253

10,363

19,078 5,501 25 000 72 395 44078 1 398 616 77 896

260,210

94

190 820 16 356 481 583 94 190 820 16 356 741 793

{94l (146,742} 1,382,260 (663,897}

6,885,000

87,786 {1,139,160) (1,495,275}

87,786 5,745,840 (1,495,275}

87,692 5,599,098 (113,015) (663,897)

{87,692) 920,021 999,145

m 5,5~9,Q9~ :5 ~Q7,QQ§ ~ ~~~.248 ll2

(Continued)

85

Total Non major

Water Governmental Projects Funds

$ 1,543,996 971,644 5,701,337

350 1,339,182 34,010 31,782

3,795 570,401

44 952 216 166 1016946 9 440.669

260,210 57,818

2,876,740 2,586,433

217,445 1,102,263 1,758,893

800,000 405,730 936 129

U02 263 9 899 398

(85,317) (458,729)

6,885,000 194,187

9,674 1,292,735 (2,793,310}

9,674 5,578,612

(75,643) 5,119,883

343,387 3,841,888

~!27.744 ~ ~.~§1 ,771

OZAUKEE COUNTY, WISCONSIN Schedule of Revenues, Expenditures and Changes in Fund Balance

Budget to Actual

Revenues Taxes Intergovernmental Public charges for services Interdepartmental charges for service Miscellaneous Total Revenues

Expenditures Current

Health and Human Services Administration Congregate meal sites Home delivered meals- mgmt Elderly benefit assistance Adult services Information and assistance Total Expenditures

Aging Services Special Revenue Fund For the Year Ended December 31,2013

Budgeted Amounts Original I Final

$ 80,661 $ 80,661 316,968 316,968 133,000 133,000

16,000 16,000 2,500 2,500

549,129 549,129

39,320 39,320 221,653 221,653 191,487 191,487 63,121 63,121 55,850 55,850 17,698 17,698

589,129 589,129

Excess Revenues Over (Under) Expenditures (40,000) (40,000)

Other Financing Sources Transfers in 40,000 40,000

Net Change in Fund Balance

Fund Balance- Beginning of Year 218,167 218,167

Fund Balance- End of Year $ 218,167 $ 218,167

86

Actual Amounts

$ 80,661 353,874 133,559 21,419

2,722 592,235

44,112 228,330 172,396 62,013 66,071 16,061

588,983

3,252

3,252

170,268

$ 173,520

Variance with Final Budget

Positive (Negative)

$ 36,906

559 5,419

222 43,106

(4,792) (6,677) 19,091

1,108 (10,221)

1,637 146

43,252

~40,000)

3,252

(47,899)

$ (44,647}

OZAUKEE COUNTY, WISCONSIN Schedule of Revenues, Expenditures and Changes in Fund Balance

Budget to Actual ADRC Special Revenue Fund

For the Year Ended December 31, 2013

Budgeted Amounts Actual Original I Final Amounts

Revenues Intergovernmental $ 849,238 $ 849,238 $ 846,530 Miscellaneous 5,310 Total Revenues 849,238 849,238 851,840

Expenditures Current

Health and Human Services 843,510 843,510 887,562

Net Change in Fund Balance 5,728 5,728 (35,722)

Fund Balance- Beginning of Year 35,722 35,722 35,722

Fund Balance- End of Year $ 41,450 $ 41,450 $

87

Variance with Final Budget

Positive (Negative)

$ (2,708) 5,310 2,602

(44,052)

(41,450)

$ (41,450)

OZAUKEE COUNTY, WISCONSIN Schedule of Revenues, Expenditures and Changes in Fund Balance

Budget to Actual

Revenues Taxes Intergovernmental Public charges for services Intergovernmental charges for service Interdepartmental charges for service Miscellaneous Total Revenues

Expenditures Current

Health and Human Services Administration CDC cancer program Lead Prevention Bioterrorism DNR beach testing Immunization Maternal and child health WIC program Tobacco Communicable disease

Total Expenditures

Excess of Revenue Under Expenditures

Other Financing Sources Transfers in

Net Change In Fund Balance

Fund Balance - Beginning of Year

Fund Balance- End of Year

Public Health Special Revenue Fund For the Year Ended December 31, 2013

Budgeted Amounts Original I Final

$ 651,697 $ 651,697 315,339 322,239

65,680 65,680 34,710 34,710

3,000 3,000 1,000 1,000

1,071,426 1,078,326

424,176 424,176 16,182 16,182

2,990 2,990 4,416 7,816

73,005 73,005 16,059 16,059 12,813 16,711 20,835 20,835

112,976 112,976 50,000 53,500

387,970 387,970 1 '121 ,422 1,132,220

(49,996) (53,894)

50,000 50,000

4 (3,894)

269,613 269,613

$ 269,617 $ 265,719

88

Actual Amounts

$ 651,697 308,633 67,038 34,010

10,258 1,071,636

484,135 16,256 2,967 6,283

77,403 15,000 17,935 22,669

102,924 53,500

290,430 1,089,502

(17,866)

(17,866)

269,613

$ 251,747

Variance with Final Budget

Positive (Negative)

$ (13,606)

1,358 (700)

(3,000) 9,258

(6,690)

(59,959) (74) 23

1,533 (4,398) 1,059

(1 ,224) (1 ,834) 10,052

97,540 42,718

36,028

(50,000)

(13,972)

$ (13,972)

OZAUKEE COUNTY, WISCONSIN Schedule of Revenues, Expenditures and Changes in Fund Balance

Budget to Actual

Revenues Intergovernmental Public charges for services Miscellaneous Total Revenues

Expenditures Current

Conservation and development

Land Information Special Revenue Fund For the Year Ended December 31, 2013

Budgeted Amounts Original I Final

$ 300 $ 300 181,020 181,020

181,320 181,320

153,294 199,269

Excess of Revenue Over (Under) Expenditures 28,026 (17,949)

Other Financing Sources Transfers in 45,975

Net Change in Fund Balance 28,026 28,026

Fund Balance- Beginning of Year 119,455 119,455

Fund Balance- End of Year $ 147,481 $ 147,481

89

Actual Amounts

$ 300 152,846

7 153,153

215,939

(62,786)

(62,786)

153,055

$ 90,269

Variance with Final Budget

Positive (Negative)

$ (28,174)

7 (28, 167)

{16,6701

{44,837)

(45,975)

(90,812)

33,600

$ (57,212)

OZAUKEE COUNTY, WISCONSIN Schedule of Revenues, Expenditures and Changes in Fund Balance

Budget to Actual

Revenues Charges for services Investment income Total Revenues

Expenditures Current

Revolving Loans Special Revenue Fund For the Year Ended December 31, 2013

Budgeted Amounts Original I Final

$ $ 322,239 217,019 217,019 217,019 539,258

Conservation and development - revolving loans 185,780 185,780

Net Change in Fund Balance 31,239 353,478

Fund Balance- Beginning of Year 213,746 213,746

Fund Balance- End of Year $ 244,985 $ 567,224

90

Actual Amounts

$ 545,822 545,822

440,691

105,131

213,746

$ 318,877

Variance with Final Budget

Positive (Negative)

$ (322,239) 328,803

6,564

(254,911)

(248,347)

$ (248,347)

OZAUKEE COUNTY, WISCONSIN Schedule of Revenues, Expenditures and Changes in Fund Balance

Budget to Actual

Revenues Miscellaneous

Expenditures Current

Public safety

Net Change in Fund Balance

Fund Balance- Beginning of Year

Fund Balance- End of Year

Jail Commissary Special Revenue Fund For the Year Ended December 31,2013

Budgeted Amounts Original I Final

$ 66,308 $ 66,308

66,308 66,308

119,562 119,562

$ 119,562 $ 119,562

91

Actual Amounts

$ 44,102

57,818

(13,716)

119,562

$ 105,846

Variance with Final Budget

Positive (Negative)

$ (22,206)

8,490

(13,716)

$ (13,716~

OZAUKEE COUNTY, WISCONSIN Schedule of Revenues, Expenditures and Changes in Fund Balance

Budget to Actual

Revenues Taxes Intergovernmental Public charges for services Fines and forfeits Miscellaneous Total Revenues

Expenditures Current

Public works Shared ride operations Bus operations

Capital outlay Total Expenditures

Net Change in Fund Balance

Fund Balance- Beginning of Year

Fund Balance - End of Year

Transit - Bus Operations Special Revenue Fund For the Year Ended December 31, 2013

Budgeted Amounts Original I Final

$ 727,333 $ 727,333 1,830,516 1,830,516

701,100 701,100 2,000 2,000

11,250 11,250 3,272,199 3,272,199

1,757,242 1,757,242 1,219,957 1,219,957

295,000 295,000 3,272,199 3,272,199

144,187 144,187

$ 144,187 $ 144,187

92

Actual Amounts

$ 727,333 1,831,625

716,555 3,795 4,727

3,284,035

1,697,503 1,179,143

247,370 3,124,016

160,019

144,187

$ 304,206

Variance with Final Budget

Positive {Negative)

$ 1,109

15,455 1,795

(6,523) 11,836

59,739 40,814 47,630

148,183

160,019

$ 160,019

OZAUKEE COUNTY, WISCONSIN Schedule of Revenues, Expenditures and Changes in Fund Balance

Budget to Actual

Revenues Public charges for services

Expenditures Total Expenditures

Excess of Revenues Over Expenditures

Other Financing Uses Transfers out

Net Change in Fund Balance

Fund Balance- Beginning of Year

Fund Balance- End of Year

Jail Assessment Special Revenue Fund For the Year Ended December 31, 2013

Budgeted Amounts Original I Final

$ 109,250 $ 109,250

109,250 109,250

109,250 109,250

408,575 408,575

$ 517,825 $ 517,825

93

Actual Amounts

$ 107,586

107,586

(158,875)

(51 ,289)

408,575

$ 357,286

Variance with Final Budget

Positive (Negative)

$ (1 ,664)

(1 ,664)

(158,875)

(160,539)

$ (160,539)

OZAUKEE COUNTY, WISCONSIN Schedule of Revenues, Expenditures and Changes in Fund Balance

Budget to Actual Ozaukee County Senior Conference Special Revenue Fund

For the Year Ended December 31, 2013

Budgeted Amounts Original J Final

Revenues Public charges for services $ 13,050 $ 13,050 $ Miscellaneous Total Revenues 13,050 13,050

Expenditures Current

Health and human services 13,050 13,050

Net Change in Fund Balance

Fund Balance- Beginning of Year 10,217 10,217

Fund Balance- End of Year $ 10,217 $ 10,217 $

94

Actual Amounts

14,525 3,500

18,025

15,851

2,174

10,217

12,391

Variance with Final Budget

Positive (Negative)

$ 1,475 3,500 4,975

~2,801}

2,174

$ 2,174

OZAUKEE COUNTY, WISCONSIN Schedule of Revenues, Expenditures and Changes in Fund Balance

Budget to Actual Ozaukee County Fairgrounds Special Revenue Fund

For the Year Ended December 31, 2013

Budgeted Amounts Original I Final

Revenues Taxes $ 69,305 $ 69,305 Public charges for services 107,700 107,700 Miscellaneous Total Revenues 177,005 177,005

Expenditures Current

Culture and Recreation 227,005 227,005

Excess of Revenues Under Expenditures (50,000) (50,000)

Other Financing Sources Transfers in 50,000 50,000

Net Change in Fund Balance

Fund Balance- Beginning of Year 35,050 35,050

Fund Balance - End of Year $ 35,050 $ 35,050

95

Actual Amounts

$ 69,305 145,803

25 215,133

217,445

(2,312)

50,000

47,688

35,050

$ 82,738

Variance with Final Budget

Positive (Negative)

$ 38,103

25 38,128

9,560

47,688

47,688

$ 47,688

OZAUKEE COUNTY, WISCONSIN Schedule of Revenues, Expenditures and Changes in Fund Balance

Budget to Actual Criminal Justice Collaborative Council Special Revenue Fund

For the Year Ended December 31 , 2013

Budgeted Amounts Original I Final

Revenues Miscellaneous $ $ $

Expenditures Current

Health and human services

Net Change in Fund Balance

Fund Balance- Beginning of Year 25,050 25,050

Fund Balance- End of Year $ 25,050 $ 25,050 $

96

Actual Amounts

135

1,925

(1,790)

25,050

23,260

Variance with Final Budget

Positive (Negative)

$ 135

(1 ,925)

(1,790)

$ (1 '790l

OZAUKEE COUNTY, WISCONSIN Schedule of Revenues, Expenditures and Changes in Fund Balance

Budget to Actual

Revenues Intergovernmental Public charges for services Miscellaneous Total Revenues

Expenditures Current

Health and human services

Net Change in Fund Balance

Fund Balance- Beginning of Year

Fund Balance- End of Year

Caregiver Coalition Special Revenue Fund For the Year Ended December 31, 2013

Budgeted Amounts Original I Final

$ $ 750

750

750

750

750

750

1,316 1,316

$ 1,316 $ 1,316

97

Actual Amounts

$ 478 920

3,033 4,431

2,610

1,821

1,316

$ 3,137

Variance with Final Budget

Positive (Negative)

$ 478 170

3,033 3,681

(1 ,860)

1,821

$ 1,821

OZAUKEE COUNTY, WISCONSIN Schedule of Revenues, Expenditures and Changes in Fund Balance

Budget to Actual Debt Service Fund

For the Year Ended December 31, 2013

Budgeted Amounts Actual Original I Final Amounts

Revenues Taxes $ 15,000 $ 15,000 $ 15,000

Expenditures Debt Service

Principal 785,000 785,000 800,000 Interest & fiscal charges 375,275 375,275 405,730 Total Expenditures 1,160,275 1,160,275 1,205,730

Excess of Revenues Under Expenditures (1,145,275) (1,145,275) (1 '190,730)

Other Financing Sources Premium on long-term debt 194,187 Transfers in 1,145,275 1,145,275 1,145,275 Total Other Financing Sources 1,145,275 1,145,275 1,339,462

Net Change in Fund Balance 148,732

Fund Balance- Beginning of Year 80,666 80,666 80,666

Fund Balance- End of Year $ 80,666 $ 80,666 $ 229,398

98

Variance with Final Budget

Positive (Negative)

$

(15,000) (30,455) (45,455)

(45,455)

194,187

194,187

148,732

$ 148,732

OZAUKEE COUNTY, WISCONSIN Schedule of Revenues, Expenditures and Changes in Fund Balance

Budget to Actual Bicycle Trail Capital Projects Fund

For the Year Ended December 31, 2013

Budgeted Amounts Original I Final

Revenues Interdepartmental charges for service $ $

Expenditures Public works

Excess of Revenues Under Expenditures

Other Financing Sources Transfers in

Net Change in Fund Balance

Fund Balance (Deficit)- Beginning of Year (87,692) (87,692)

Fund Balance (Deficit)- End of Year $ {87,692} $ (87,692)

99

Actual Amounts

$

94

(94)

87,786

87,692

(87,692)

$

Variance with Final Budget

Positive (Negative)

$

~94)

(94)

87,786

87,692

$ 87,692

OZAUKEE COUNTY, WISCONSIN Schedule of Revenues, Expenditures and Changes in Fund Balance

Budget to Actual General Capital Projects Fund

For the Year Ended December 31, 2013

Budgeted Amounts Actual I Original I Final Amounts

Revenues Investment income $ $ $ 19,078 Miscellaneous 25,000 Total Revenues 44,078

Expenditures Capital outlay 190,820

Excess of Revenues Under Expenditures (146,742)

Other Financing Sources (Uses} Long-term debt issued 6,885,000 Transfers out (1,139,160} Total Other Financing Sources (Uses} 5,745,840

Net Change in Fund Balance 5,599,098

Fund Balance- Beginning of Year

Fund Balance- End of Year $ $ $ 5,599,098

100

Variance with Final Budget

Positive (Negative}

$ 19,078 25,000 44,078

(190,820)

(146,742}

6,885,000 (1,139,160) 5,745,840

5,599,098

$ 5,599,098

OZAUKEE COUNTY, WISCONSIN Schedule of Revenues, Expenditures and Changes in Fund Balance

Budget to Actual Capital Reserve Capital Projects Fund County Administrator

For the Year Ended December 31, 2013

Budgeted Amounts Original I Final

Revenues Intergovernmental $ 1,506,930 $ 1,506,930 $ Interdepartmental charges for service Total Revenues 1,506,930 1,506,930

Expenditures Capital outlay

Excess of Revenues Over Expenditures 1,506,930 1,506,930

Other Financing Uses Transfers out (1 ,495,275) ( 1 ,495,275)

Net Change in Fund Balance 11,655 11,655

Fund Balance- Beginning of Year 920,021 920,021

Fund Balance- End of Year $ 931,676 $ 931,676 $

101

Actual Amounts

1,388,253 10,363

1,398,616

16,356

1,382,260

(1 ,495,275)

(113,015)

920,021

807,006

Variance with Final Budget

Positive (Negative)

$ (118,677) 10,363

(108,314)

(16,356)

(124,670~

(124,670)

$ {124,670}

OZAUKEE COUNTY, WISCONSIN Schedule of Revenues, Expenditures and Changes in Fund Balance

Budget to Actual

Revenues Investment income Miscellaneous Total Revenues

Expenditures General government Capital outlay Total Expenditures

Net Change in Fund Balance

Fund Balance- Beginning of Year

Fund Balance- End of Year

Support Services Capital Projects Fund For the Year Ended December 31, 2013

Budgeted Amounts Original I Final

$ $

999,145 999,145

$ 999,145 $ 999,145

102

Actual Amounts

$ 5,501 72,395 77,896

260,210 481,583 741,793

(663,897)

999,145

$ 335,248

Variance with Final Budget

Positive (Negative)

$ 5,501 72,395 77,896

(260,210) {481 ,583! {741 ,793)

(663,897)

$ (663,897)

OZAUKEE COUNTY, WISCONSIN Schedule of Revenues, Expenditures and Changes in Fund Balance

Budget to Actual

Revenues Intergovernmental Public charges for services Miscellaneous Total Revenues

Expenditures Conservation and development

Water Projects Capital Projects Fund For the Year Ended December 31, 2013

Budgeted Amounts Original I Final

$ 1,480,511 $ 1,548,355 3,621 3,621

230,361 1 ,484,132 1 ,'782,337

1,401,603 1,699,808

Excess of Revenues Over (Under) Expenditures 82,529 82,529

Other Financing Sources Transfers in

Net Change in Fund Balance 82,529 82,529

Fund Balance -Beginning of Year 343,387 343,387

Fund Balance- End of Year $ 425,916 $ 425,916

103

Actual Amounts

$ 971,644 350

44,952 1,016,946

1,102,263

(85,317)

9,674

(75,643)

343,387

$ 267,744

Variance with Final Budget

Positive (Negative)

$ (576,711) (3,271)

(185,409) (765,391)

597,545

(167,846)

9,674

(158, 172)

$ (158,172}

Sheriff Department Miscellaneous Assets

Cash and investments

Liabilities Deposits

HHS for CSP Beneficiaries Assets

Cash and investments

Liabilities Deposits

Clerk of Courts Assets

Cash and investments

Liabilities Deposits

Jail Inmate's Account Assets

Cash and investments

Liabilities Deposits

Aging Nutrition Program Assets

Cash and investments

Liabilities Deposits

District Attorney Trust Accounts Assets

Cash and investments

Liabilities Deposits

Employee Reimbursement Account Assets

Cash and investments

Liabilities Deposits

Community for SS/SSI Assets

Cash and investments

Liabilities Deposits

Employee Fund Assets

Cash and investments

(Continued)

OZAUKEE COUNTY, WISCONSIN Schedule of Changes in Assets and Liabilities

Agency Funds For the Year Ended December 31, 2013

Balance January 1,

2013 Additions

$ 11,937 $

$ 11,937 $

$ 13,292 $ 17,209

$ 13,292 $ 17,209

$ 685,159 $ 118,232

$ 685,159 $ 118,232

$ 43,534 $

$ 43,534 $

$ 596 $ 42

$ 596 $ 42

$ 181 $ 300

$ 181 $ 300

$ 44,646 $ 6,885

$ 44,646 $ 6,885

$ 2,178 $

$ 2,178 $

$ 526 $ 201

104

Balance December 31,

Deductions 2013

$ 4,000 $ 7,937

$ 4,000 $ 7,937

$ $ 30,501

$ $ 30,501

$ $ 803,391

$ $ 803,391

$ 10,172 $ 33,362

$ 10,172 $ 33,362

$ $ 638

$ $ 638

$ $ 481

$ $ 481

$ $ 51,531

$ $ 51,531

$ 1,373 $ 805

$ 1,373 $ 805

$ $ 727

Liabilities Deposits

Lasata Resident Savings Assets

Cash and investments

Liabilities Deposits

Clerk of Courts Assets

Cash and investments

Liabilities Deposits

Golf Course Petty Cash Assets

Cash and investments

Liabilities Deposits

Highway Petty Cash Assets

Cash and investments

Liabilities Deposits

HHS Client Services Assets

Cash and investments

Liabilities Deposits

Lasata Petty Cash Assets

Cash and investments

Liabilities Deposits

Other Assets

Accounts receivable

Liabilities Deposits

Total Assets

Cash and investments Accounts receivable

Liabilities Deposits

OZAUKEE COUNTY, WISCONSIN Schedule of Changes in Assets and Liabilities (Continued)

Agency Funds For the Year Ended December 31, 2013

Balance January 1,

2013 Additions Deductions

$ 526 $ 201 $

$ 17,269 $ 1,450 $

$ 17,269 $ 1,450 $

$ 2,493 $ $ 802

$ 2,493 $ $ 802

$ 9,328 $ $ 4,250

$ 9,328 $ $ 4,250

$ 190 $ $

$ 190 $ $

$ 11,556 $ 5 $

$ 11,556 $ 5 $

$ 777 $ 257 $

$ 777 $ 257 $

$ 23,003 $ $ 180

$ 23,003 $ $ 180

$ 843,662 $ 144,581 $ 20,597 23,003 180

$ 866,665 $ 144,581 $ 20,777

$ 866,665 $ 144,581 $ 20,777

105

Balance December 31,

2013

$ 727

$ 18,719

$ 18,719

$ 1,691

$ 1,691

$ 5,078

$ 5,078

$ 190

$ 190

$ 11,561

$ 11,561

$ 1,034

$ 1,034

$ 22,823

$ 22,823

$ 967,646 22,823

$ 990,469

$ 990,469

TABLE I

OZAUKEE COUNTY, WISCONSIN Net Position by Component

Last Ten Fiscal Years

2004 2005 2006 2007 2008 Governmental activities

Net investment in capital assets $ 52,712,725 $ 50,860,052 $ 37,129,051 $ 38,269,091 $ 38,497,480 Restricted 110,044 1,039,593 974,003 1,203,485 Unrestricted 7,322,777 8,464,969 8,568,749 7,865,153 6,986,451

Total governmental activities net position 60,145,546 $ 59,325,021 $ 46,737,393 $ 47,108,247 $ 46,687,416

Business-type activities Net investment in capital assets $ 12,559,611 $ 13,181,117 $ 13,543,718 $ 13,738,713 $ 14,426,633

Restricted

Unrestricted 3,625,193 4,033,182 3,447,302 2,163,744 1,430,566

Total business-type activities net position 16,184,804 17,214,299 $ 16,991,020 $ 15,902,457 $ 15,857,199

Primary government

Net investment in capital assets $ 65,272,336 $ 64,041,169 $ 50,672,769 $52,007,804 $ 52,924,113

Restricted 110,044 1,039,593 974,003 1,203,485

Unrestricted 10,947,970 12,498,151 12,016,051 10,028,897 8,417,017

Total primary government net position $ 76,330,350 $ 76,539,320 $ 63,728,413 $ 63,010,704 $ 62,544,615

2009 2010 2011 2012 2013 Governmental activities

Net investment in capital assets $ 39,339,228 $ 38,243,871 $ 41,231,956 $ 41 '189,859 $41 • 733,739

Restricted 1,162,862 1 '199,218 3,529,029 3,600,277 3,288,335

Unrestricted 6,198,758 10,849,620 10,744,455 11,375,687 11,525,279

Total governmental activities net position $ 46,700,848 $ 50,292,709 $ 55,505,440 $ 56,165,823 $ 56,547,353

Business-type activities Net investment in capital assets $ 15,193,880 $ 16,076,200 $ 15,658,353 $ 15,293,101 $15,198,351

Restricted Unrestricted 890,878 (967,967) 11 ,079,320j (355,581) 1,609,190

Total business-type activities net position $ 16,084,758 $ 15,108,233 $ 14,579,033 $ 14,937,520 $ 16,807,541

Primary government

Net investment in capital assets $ 54,533,108 $ 54,320,071 $ 56,890,309 $ 56,482,960 $ 56,932,090

Restricted 1,162,862 1,199,218 3,529,029 3,600,277 3,288,335 Unrestricted 7,089,636 9,881,653 9,665,135 11,020,106 13,134,469

Total primary government net position $ 62,785,606 $ 65,400,942 $ 70,084,473 $ 71,103,343 $ 73,354,894

106

TABLE II OZAUKEE COUNTY, WISCONSIN

Changes in Net Position Last Ten Fiscal Years

Fiscal Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Expenses Governmental Activities:

General government $ 7,388,869 $ 8,160,904 $ 7,832,126 $ 8,812,637 $ 8,052,506 $ 8,403,334 $ 9,163,462 $ 9,591,995 $ 9,115,344 $ 9,653,422 Public safety 10,907,999 11,949,638 11,419,080 11,762,204 12,136,093 12,097,692 12,671,263 10,150,542 12,549,843 11,604,168 Health and human services 21,052,130 22,130,882 24,047,450 24,940,849 20,868,100 16,557,976 16,021,959 14,619,815 14,300,564 13,512,987 Public works 5,489,624 6,482,401 6,342,417 6,540,507 7,239,957 6,610,644 5,025,141 6,167,878 7,461 '149 7,053,748 Culture and recreation 1,189,250 599,892 667,539 609,664 851,251 2,221,352 898,839 1,637,261 1,814,331 1,114,073 Conservation and development 1,488,418 1,489,627 1,011,673 1,139,836 693,059 1,382,718 3,037,653 4,247,756 3,244,606 2,825,157 Interest on debt 64,135 113.315 312,149 365,129 516,574 770,396 293 688 261,855 556,346 486,016

Total governmental activities expenses $ 47,580,425 $ 50,926,659 $ 51,632,434 $ 54,170,826 $ 50,357,540 $ 48,044,112 $ 47,112,005 $ 46,677,102 $ 49,042,183 $ 46,249,571

Business-type Activities:

Nursing Home 13,280,636 13,525,660 13,766,267 13,906,213 15,097,303 15,025,035 15,825,034 15,597,171 14,717,834

Highway department 7,108,921 7,307,186 8,530,210 10,493,900 9,701,780 8,650,834 9,642,701 9,042,591 10,764,605

Independent living facility 439,455 442,686 439,459 461,636 469,442 494,897 544,172 566,453 543,209

Golf course 1,735,055 1,731,885 1,793,055 1,851,405 1,710,705 1,677,171 1,627,866 1,781,589 1,487,363

Lasala RCAC 36,667 448,431 2,082 956 2 095,996 2,092,527 Total business-type activities expenses 22,564,067 23,007,417 24,528,991 27,015,897 26,296,368 29,722,729 29,083,800 29,605,538

Total primary government expenses $ 70 144,492 $ 73 934 076 $ 76,161 425 $ 77 373 437 $ 74 340 48 983 $ 75 855109

Program Revenues Governmental activities:

Charges for services: General government $ 2,681,811 $ 2,269,877 $ 2,183,493 $ 2,185,992 $ 2,059,715 $ 2,248,982 $ 2,269,784 $ 2,264,647 $ 2,330,937 $ 1,962,522 Public safety 2,856,018 2,984,744 2,430,798 2,727,600 2,899,563 2,652,199 2,719,752 2,143,699 932,003 1,800,240

Health and human services 2,791 '167 2,847,812 3,054,892 2,765,033 1,751,680 2,354,740 2,366,890 1,237,234 900,295 924,500

Transportation 643,673 366,112 432,337 583,237 501,588 451,747 495,383 526,240 709,562 720,356

Culture and recreation 207,756 82,584 81,147 77,112 65,868 70,440 81,479 67,885 27,840 226,117

Conservation and development 225,993 362,903 363,627 306,Q49 245,553 246,913 274,763 1,805,454 2,676,155 97,863 Operating grants and contributions 15,978,349 17,265,941 18,402,586 18,662,121 15,767,246 12,906,082 13,834,525 11,812,035 12,787,190 11,004,910 Capital grants and contributions 200,000 100,000 3,737,100 1 307,499 1,894,843

Total governmental activities program revenues 25 384 767 26,179,973 26,948,880 27,307,144 23,491,213 21 031 103 22,042,576 23,594,294 21,671,481 18,631,351

(continued)

107

TABLE II OZAUKEE COUNTY, WISCONSIN

Changes in Net Position Last Ten Fiscal Years

Fiscal Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Program Revenues (continued)

Business-type activities: Charges for services:

Nursing Home 12,103,639 12,029,993 12,265,409 12,014,866 12,792,170 12,576,189 13,667,893 14,225,342 13,476,800 12,856,694 Highway department 6,689,346 6,873,674 7,916,940 10,094,899 9,145,791 8,679,656 9,857,524 9,091,481 9,032,623 10,751,607 Independent living facility 717,556 715,850 714,787 725,484 757,300 761,827 792,077 816,572 851,154 831,028 Golf course 1,510,949 1,674,761 1,546,851 1,564,363 1,533,144 1,808,235 1,806,577 1,672,521 2,158,177 1,703,337 Lasala RCAC 1,083 9,445 543,968 1,889,283 2,361,128 2,617,944

Operating grants and contributions 1,359,765 1,653,583 1,052,239 1,204,045 2,076,891 1,923,013 1,453,523 1,491 '128 1,597,468 1,406,208

Total business-type activities program revenues 22,381,255 22,947,861 23,496,226 25,603,657 26,306,379 25,758,365 28,121,562 29,186,327 29,477,350 30,166,818 Total primary government program

$ 47,766,022 $ 49,127,834 $ 50,445,106 $ 52,910,801 $ 49,797,592 $ 46,789,468 $ 50,164,138 $ 52,780,621 $ 51,148,831 $ 48,798,169 revenues

Net (Expense) Revenue

Government activities $ (22, 195,658) $ (24,746,686) $ $ $ $ $ Business-type activities (182,812) (59,556) Total primary government net expense $ 22,

General Revenues and Other Changes in

Government activities: Taxes

Property taxes $ 14,721,303 $ 15,322,553 $ 15,743,149 $ 17,248,859 $ 17,441,473 $ 18,285,905 $ 18,773,090 $ 18,526,837 $ 19,154,359 $ 19,102,597

Property taxes for debt service 265,000 490,918 756,924 592,767 316,191 239,191 4,543 Sales and other taxes 6,079,722 6,484.164 6,525,218 6,649,658 6,831,989 6,451,111 6,767,698 6,939,281 7,202,740 7,487,260

Unrestricted grants and contributions 430,953 1,123,595 1,117,364 1,112,756 1,796,255 1,754,818 1,750,335 155,000 1,698,501

Investment earnings 548,697 684,162 1,271,922 1,373,768 825,844 616,915 333,743 490,552 249,028 695,026 Gain on sale of capital assets 32,636 33,077 21,610 29,895

Miscellaneous 539,329 181,217 54,886 50,667 149,065 94,413 254,096 1,269,958 78,580 Transfers 104,819 200,000 500,000 (410,000) (610,611) 300,000 (1,062,214)

Total Governmental Activities $ 21,454,541 $ 23,926,161 $ 25,868,655 $ 27,234,536 $ 26,445,496 $ 27,026,441 $ 27,962,953 $ 28,295,539 $ 28,031,085 $ 27,999,750

(continued)

108

TABLE II OZAUKEE COUNTY, WISCONSIN

Changes in Net Position Last Ten Fiscal Years

Fiscal Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Program Revenues (continued)

Business-type Activities:

Property taxes 1,689,881 1,272,989 1,291,402 228,252 245,955 Investment earnings 11,015 6,320 9,092 7,291 23,508 154,860 57,195 7,202 35 572 Gain on sale of capital assets 2,187 9,742 8,992 13,643 2,500 91 Transfers (104,819) (200,000) (500,000) 410,000 610,611 (300,000) 1,062,214

Total Business-type Activities 1,598,264 1,089,051 809,486 20,934 664,260 765,562 57,195 (292,798) 35 1,308,741 Total Primary Government $ 23,052,805 $ 25,015,212 $ 26,678,141 $ 27,255,470 $ 27,109,756 $ 27,792,003 $ 28,020,148 $ 28,002,741 $ 28,031,120 $ 29,308,491

Change in Net Position Governmental Activities $ (741,117) $ (820,525) $ 1,185,101 $ $ $ 13,432 $ 2,893,524 $ 5,212,731 $ 660,383 $ 381,530 Business-type Activities 1,415,452 1,029,495 \223,279) 227,559 (976,525) 1529,200) 393,585 1,870,021

Total Primary Government $ 674 335 $ 208 970 $ 961,822 $ $ 240,991 $ 1,916,999 $ 4,683,531 $ 1,053,968 $ 2 251,551

109

TABLE Ill OZAUKEE COUNTY, WISCONSIN

Net Changes in Fund Balance, Governmental Funds Last Ten Fiscal Years

Fiscal Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Revenues Taxes $21,219,868 $22,071,717 $22,760,544 $24,656,845 $ 24,868,454 $25,055,353 $25,783,342 $ 25,475,899 $ 26,357,099 $ 26,589,857 Intergovernmental 16,114,730 17,692,424 19,511,278 19,773,055 17,091,577 14,754,338 15,339,788 17,941,835 16,653,912 14,476,179 Charges for services 4,828,800 4,787,254 5,138,899 4,623,911 4,037,154 4,614,829 4,596,780 3,488,150 3,697,948 3,881,787 Intergovernmental charges for services 1,692,780 1,961,617 1,364,334 1,771,051 1,868,609 1,891,992 1,940,103 1,532,264 476,Q42 348,752 Interdepartmental charges for services 930,402 919,864 826,470 816,181 614,906 468,965 497,417 491,558 474,300 459,863 Fines and forfeits 326,477 348,112 340,745 338,254 321,361 302,734 324,159 244,335 232,000 233,762 Licenses and permits 169,029 129,004 155,135 130,914 100,007 93,072 95,057 109,807 112,576 125,047 Principal of loans 249,990 Interest on investments 385,864 663,319 1,316,861 1,339,365 825,796 616,915 334,448 289,817 249,028 695,026 Interest on loans 13,703 20,843 35,638 31,811 37,819 106,904 76,113 218,295 179,618 Other 903,706 1,368,816 1,096,238 1,094,473 696,240 770,794 988,903 1,867,959 1,270,043 883,042 Total revenues 46,835,349 49,962,970 52,546,142 54,575,860 50,461,923 48,675,896 49,976,110 51,659,923 49,702,566 47,693,315

Expenditures General government 6,915,122 7,028,109 7,176,784 7,604,248 7,695,266 7,662,860 8,397,684 8,638,333 8,679,778 8,463,012 Public safety 10,354,105 10,594,461 10,562,507 11,089,981 11,310,427 11,454,634 11,660,118 11,741,275 11,601,500 10,808,450 Health and human services 20,950,378 22,581,980 23,970,411 24,705,588 20,785,136 16,539,097 16,047,228 14,597,950 14,516,178 13,469,532 Public works 4,129,766 5,356,573 6,749,074 8,227,958 7,028,851 7,046,135 7,218,195 7,471,141 7,130,560 8,709,715 Culture and recreation 1,072,392 621,297 669,492 633,962 728,818 821,438 810,366 793,218 881,712 1 '107,901 Conservation and development 1,487,058 1,306,397 1,083,950 1,632,975 948,035 1,382,718 3,037,362 4,247,178 3,218,877 2,382,801 Debt service

Principal 148,000 160,000 100,000 3,123,667 676,747 2,616,586 768,508 3,331,492 765,000 800,000 Interest and fiscal charges 64,135 113,315 200,142 351,754 319,819 306,231 294,172 318.663 406,614 405,730

Capital outlay 1,796,782 1,278,778 1,998,822 3,833,821 2,060,807 2,797,611 1,862,774 3,718,157 6,673,690 1 ,324,130 Total Expenditures 46,917,738 49,040,910 52,511,182 61,203,954 51,553,906 50,627,310 50,096,407 54,857,406 53,873,909 47,471,271

Excess (deficit) of revenues over expenditures (82,389) 922,060 34,960 (6,628,094) (1 ,091 ,983) (1,951,414) (120,297) (3,197,483) (4,171,343) 222,044

Other Financing Sources (Uses) Long-term debt issued 780,000 4,345,000 2,300,000 2,250,000 4,740,000 4,600,000 2,415,000 6,885,000 Payment to escrow agent (2,584,890) Bond premium 219,395 194,187 Transfers in 1,717,327 1,741,146 700,770 859,945 2,859,423 3,974,396 7,314,565 4,076,800 2,037,766 3,470,523 Transfers out (1 ,608,3492 (1,541,146) (200,770) (859,945) (3,269,4232 (4,585,007) (7,314,565) (3,776,800) (2,037,766) !4.532,7371 Total other financing sources (uses) 108,978 980,000 4,845,000 2,300,000 (410,000) 1,639,389 4,959,395 4,900,000 (169,890) 6,016,973

Net change in fund balances $ 26,589 $ 1,902,060 $ 4,879.960 $ (4,328,094) $ (1 ,501 ,983) $ (312,025) $ 4,839,098 $ 1,702,517 $ (4,341,233) ~ 6,239,017

Debt service as a percentage of noncapital expenditures 0.5% 0.6% 0.6% 5.7% 2.0% 6.5% 2.4% 7.7% 1.7% 2.9%

110

TABLE IV

OZAUKEE COUNTY, WISCONSIN Fund Balances, Governmental Funds

Last Ten Fiscal Years

Fiscal Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

General Fund Reserved for

Prepaid items $ 140,694 $ 310,216 $ 223,471 $ 34,000 $ 143,984 $ 115,224 $ 182,382 $ - $ . $ Delinquent property taxes 944,173 888,278 898,744 1,077,531 1,428,634 1,845,980 2.145,990

Unreserved Designated 604,064 452,612 602,220 615,000 358,655 333,923 Undesignated, reported in General Fund 5,371,361 6,263,992 7,395,426 7,706,305 7,746,357 6,541,191 7,126,761

Nonspendable Prepaid Items 591,798 677,932 716,101 Delinquent Property Taxes 1,908,228 1,764,175 1,410,714

Restricted for General Fund 113,283 123,496 108,765 Committed for General Fund 8,125 8,125 24,775 Assigned for General Fund 398,988 139,198 151,225 Unassigned for General Fund 6,446,582 5,850,462 5,671,954

Total General Fund $7,060,292 $7,915,098 $9,119,861 $9,432,836 $9,677,630 $8,836,318 $9,455,133 $9,467,004 $8,563,388 $ 8,083,534

Department of Human Services Special Revenue Fund Restricted

Prepaid items $ 2,923 $ 14,295 $ 42,463 $ 60,589 $ 15,641 $ 11,208 $ 12,812 $ - $ - $ Unreserved

Designated 657,775 1,287,132 241,537 9,000 357,078 297,900 Undesignated Special Revenue Fund (14,920) 333,307 204,544 (223,012)

Nonspendable Prepaid Items 2,821 5,182

Committed for Human Services 878,181 852,099 1,402,195 Total Dept of Human Services Special Revenue Fund $ 660,698 $1,286,507 $ 617,307 $ 274!133 $ !207!371) $ 368,286 $ 310,712 $ 881,002 $ 857,281 $ 1,402,195

All Other Governmental Funds Reserved For

Prepaid items $ 110,044 $ $ $ $ - $ 93 $ 641 $ - $ - $ Unreserved

Designated for All Other Governmental Funds 4,014,760 4,837,399 9,068,785 5,002,573 3,913,704 3,876,515 2,385,511 Undesignated reported in Special Revenue Fund (56,236) (56,242) (276,215) (452,619) (56,249) 1,754,411 Undesignated reported in Debt Service Fund (8,315) Undesignated reported in Capital Projects Fund (226,599) (121,897) (133,607) (133,607) (539,251) 23,338

Nonsendable Prepaid Items 1,286 52 53

Restricted For Special Revenue Funds 469,379 405,561 6,382,223

Committed For Special Revenue Funds 7,650,498 4,947,504 5,057,106

Unassigned Special Revenue Funds (196,053) !87,692)

Total all other governmental funds $4,124,804 $4,546,249 $8,890,646 $4,592,751 $3,327,478 $3,281,108 s 7,558,965 $7,925,110 $5,265,425 $ 11,439,382

111

OPERATING REVENUES

CAPITAL OPERATING GRANTS

GRANTS AND AND FISCAL CHARGES FOR CONTRIBUTION CONTRIBU YEAR SERVICES s TIONS

2004 30,427,908 17,338,114 . 2005 30,208,310 18,919,524 -2006 30,990,281 19,454,825 -2007 32,966,615 19,864,463 -2008 31,843,038 18,044,137 -2009 31,860,373 14,829,095 100,000 2010 34,876,090 15,288,048 -2011 35,740,358 13,303,163 3,737,100 2012 35,456,374 14,384,658 1,307,499 2013 34,492,208 12,411,118 1,894,843

TABLE V OZAUKEE COUNTY, WISCONSIN

GOVERNMENT WIDE REVENUES BY SOURCE* LAST TEN FISCAL YEARS

GRANTS PROPERTY SALES NOT SPECIFIC INVESTMENT

TAXES TAXES FUNCTION EARNINGS

16,411,184 6,079,722 - 559,712 17,271,229 6,073,477 430,953 690,482 17,525,469 6,038,667 1,123,595 1,281,014 18,005,783 6,093,338 1,117,364 1,378,453 18,034,240 6,281,891 1,112,756 849,352 18,602,096 5,883,390 1,796,255 771,775 19,012,281 6,767,698 1,754,818 390,938 18,531,380 6,939,281 1,750,355 497,754 19,154,359 6,543,022 155,000 249,028 19,348,552 6,796,393 1,698,501 695,598

112

GAIN ON SALE OF CAPITAL ASSETS Misc. TOTAL

2,187 - 70,818,827 I 9,742 539,329 74,143,046

41,628 181,217 76,636,696 31,775 58,178 79,515,969 27,882 50,667 76,243,963 21,701 149,065 74,013,750

- 94,413 78,184,286 29,895 554,096 81,083,382

- 1,929,676 79,179,616

- 769,447 78,106,660

INTER GOVERN FISCAL GENERAL MENTAL YEAR TAXES REVENUES

2004 22,909,775 15,998,203 2005 23,344,706 17,362,684

2006 24,051,946 18,558,683

2007 24,656,844 18,941,273

2008 24,868,454 15,942,332

2009 25,055,353 13,225,397

2010 25,783,342 14,125,375 2011 25,475,903 15,167,079

2012 26,357,099 12,619,668 2013 26,835,812 12,116,282

TABLE VI OZAUKEE COUNTY, WISCONSIN

GENERAL REVENUE BY SOURCE (1) LAST TEN FISCAL YEARS

CHARGES FOR FINES FORFEITS LICENSES AND SERVICES AND PENAL TIES PERMITS

23,886,496 326,477 177,799

24,438,242 348,112 137,394 23,851,776 340,745 165,145

24,684,587 338,254 136,004

27,950,908 321,361 100,007 24,924,580 302,734 93,072

33,306,312 324,159 95,057

32,671,941 244,335 109,087

31,986,540 232,000 112,576 32,642,397 233,762 125,047

INTEREST OTHER REVENUE REVENUES

660,572 2,383,123 843,989 3,935,755

1,518,455 2,175,816 1,427,602 4,688,766

830,234 4,396,954 878,679 5,160,385

466,086 2,097,189 490,550 2,451,644

249,028 2,485,532

695,026 2,749,750

(1) This summary includes revenue of the General Fund, Special Revenue Funds, Debt Service Fund, and operating and non-operating revenues of the Enterprise and Internal Service Funds. It excludes Capital Projects, Agency Funds, and interfund transfers.

113

TOTAL

66,342,445 70,410,882 70,662,566 74,873,330 74,410,250

69,640,200 76,197,520 76,610,539

74,042,443 75,398,076

TAX CURRENT BUDGET TOTAL TAX YEAR

YEAR TAX LEVY DELINQUENT

2004 159,831,947 979,071 2005 163,640,669 1,165,983 2006 175,465,680 1,143,143

2007 177,997,443 1,676,182

2008 186,118,203 1,944,028

2009 191 ,499,606 2,346,153 2010 196,994,489 2,504,176 2011 198,317,819 2,096,649 2012 196,190,902 1,668,353 2013 198,798,400 1,458,930

TABLE VII OZAUKEE COUNTY, WISCONSIN

PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS

CURRENT PERCENT DELINQUENT TOTAL TAX YEAR OF LEVY TAX TAX

COLLECTIONS COLLECTED COLLECTED COLLECTIONS

158,852,876 99.39% 1,124,493 159,977,369 162,474,686 99.29% 1,146,539 163,621,225 17 4,622,537 99.52% 1,023,756 175,646,293 176,321,261 99.06% 1,435,780 177,757,041 184,174,175 98.96% 1,616,175 185,790,350 189,153,453 98.77% 1,872,034 191,025,487 194,487,313 98.73% 2,108,871 196,596,184

196,221 '170 98.94% 2,337,914 198,559,084 194,522,549 99.15% 2,081,390 196,603,939 197,339,470 99.27% 1,769,206 199,108,676

RATIO OF ALL YEARS

COLLECTION

99.36% 99.37% 99.51% 99.22% 99.08% 98.86% 98.69%

98.82% 99.02% 99.39%

(1) Results available as of date of audit (February), all other columns represented as of 12/31

2004 2005 2006 2007

16,315,836 16,740,832 17,441,347 17,836,529

Total tax collections solely for Ozaukee County were:

2008 2009 2010 2011

18,072,562 18,373,290 18,771,987 18,838,781

114

2012 2013

ALL YEARS OUTSTANDING DELINQUENT

TAXES (1)

801,625 888,278 898,743

1,077,531 1,428,634

1,845,980 2,145,990

1,908,228 1 ,764,175 1,410,714

18,990,770 19,205,911

RATIO OF DELINQUENT

TAXES TO TOTAL TAX LEVY (1)

0.50% 0.54% 0.51% 0.61% 0.77%

0.96% 1.09% 0.96% 0.90%

0.71%

TAX YEAR ENDED NON

DECEMBER 31 DEBT SERVICE

2004 16,412,419

2005 16,595,542

2006 17,034,551

2007 16,615,152

2008 17,263,726

2009 17,484,538

2010 17,992,881

2011 18,115,073

2012 18,020,009

2013 18,813,504

TABLE VIII OZAUKEE COUNTY, WISCONSIN

PROPERTY TAX RATE

OPERATING AND DEBT LEVY (1) LAST TEN FISCAL YEARS

COUNTY LEVY

DEBT EQUALIZED SERVICE TOTAL VALUATION (2)

- 16,412,419 9,048,598,800

265,000 16,860,542 9,698,555,200

490,918 17,525,469 10,456,971 ,900

1,391,324 18,006,476 11,150,793,000

998,766 18,262,492 11 ,214,460,600

996,191 18,480,729 11,209,930,400

1,019,400 19,012,281 11 ,016,945,200

923,664 19,038,737 10,621,925,500

1,133,200 19,153,209 10,530,359,400

1,160,275 19,973,779 10,226,456,100

COUNTY TAX RATES (1)

1.94

1.83

1.78 1.69

1.61

1.63

1.68

1.74

1.77 1.84

1. The tax rates are expressed as dollars per $1,000 equalized valuation. Prior to 2005 all debt was attributed to the proprietary funds and paid with operating profits.

2. Excluding personal property and the following tax incremental district values for tax years:

2004 199,624,500 2009 319,354,000

2005 202,930,200 2010 315,847,700

2006 205,836,175 2011 324,591 ,000

2007 235,956,900 2012 161 ,820,900

2008 228,986,522 2013 157,025,500

115

TABLE IX

OZAUKEE COUNTY, WISCONSIN

State, Municipal, Utility, and School District Underlying Tax- 10 Yr, Equalized Rate

TAX DISTRICT Belgium, Town

Cedarburg, Town 14.7548 15.1421 14.8708 15.0018 15.4740

Fredonia, Town 1945NO 14.8928 15.3643 14.9057 14.9872 11.4163 13.2300 15.2135 14.8702 15.3560 4641RL 13.2171 11.7920 12.3985 12.9125 8.7366 11.8829 13.0822 12.9333 13.2135 14.0475

Grafton, Town 1015C 12.9154 13.2733 13.2309 13.2385 11.1720 14.1010 14.8457 14.075 14.6895 15.3450 2217G 13.9729 13.4361 13.8423 14.1026 14.1421 14.6339 15.1774 15.0261 16.2434 17.2403

4515PW 13.5758 13.0821 12.9853 12.9999 12.9785 13.0978 13.8669 13.8909 14.8449 15.0887 Port Washington, T. 4515PW 14.6082 14.4574 13.8730 13.4996 10.6617 13.7015 14.2966 14.2777 14.895 15.1649 Saukville, Town 1945NO 12.0432 12.5344 12.7294 12.5494 12.5067 13.0397 15.0596 14.6388 15.2681 15.5287

4515PW 12.8847 12.0097 12.4824 12.5494 11.5859 12.9019 13.6468 13.5439 14.3801 13.6919 Bayside, Village* 1890FP 20.5908 19.3713 18.9269 29.9433 17.2668 21.2555 22.2708 22.7069 19.6897 19.7918 Belgium, Village 2177N 16.8696 15.8706 15.5064 24.5320 14.1464 17.4142 18.2460 18.6033 16.1314 16.4173

1029CG 16.8821 15.6374 15.4546 15.6115 12.9620 15.4570 16.3328 13.5254 16.7978 17.5688 Fredonia , Village 1945NO 17.6474 19.3905 18.3557 18.5992 14.7369 16.3162 18.2991 17.8854 18.5740 19.9514 Grafton, Village 1015C 18.0148 18.2607 15.3297 15.6220 16.4083 18.2800 19.1056 18.3752 19.1589 20.0257

2217G 19.1298 18.3753 15.8542 16.3719 16.3653 18.8127 19.4376 19.327 20.7036 21.9237 Newburg, Village 1945NO 17.0504 17.5538 16.3555 16.1046 17.3734 16.9614 18.7608 18.7864 18.9402 22.0422 Saukville , Village 1945NO 19.2697 19.9043 15.1516 15.5366 16.6759 17.0752 19.5010 19.2721 20.0378 21.6143

4515PW 20.1843 19.3294 15.0315 15.6905 15.4240 16.9374 18.1040 18.1678 19.0450 19.6515 2217G 20.6209 19.7109 13.2184 16.6340 16.4138 18.4733 19.4145 19.3031 20.4363 21.8079

Thiensville , Village 3479MT 19.3358 19.9351 19.8357 19.8705 20.2497 18.2222 18.8075 18.8041 19.7069 19.9539 Cedarburg , City 1015C 19.8875 16.1143 16.0373 16.1382 18.3041 18.2434 19.0036 18.3785 18.9168 19.9244

3479MT 18.8396 16.0849 15.7841 15.3058 15.7292 17.0722 17.5798 17.5085 18.2771 18.7636 Mequon, City 1015C 15.2795 15.1743 14.4459 15.5213 15.1987 15.1135 15.8112 15.0165 15.6225 16.3006

3479MT 16.4000 17.0622 16.1471 14.2700 14.2571 15.7936 16.2889 16.1713 15.8332 17.0304 Port Washington, City 4515PW 17.9293 16.8583 15.9525 16.5560 16.2641 16.5870 17.2597 17.0761 17.9069 18.2832

* Includes a Utility taxing district Rate Per $1 ,000 of assessed valuation net of Wisconsin school tax credit Source: Bureau of Property Tax, Wisconsin Department of Revenue

116

TABLE X OZAUKEE COUNTY, WISCONSIN

COMPUTATION OF LEGAL DEBT MARGIN LAST TEN FISCAL YEARS

I 2004 I 2005 I 2006 I 2007 I 2008 I 2009 I 2010 I 2011 l 2012 I 2013 I Equalized Valued $ 9,390,562 $10,079,844 $10,603,430 $11,139,704 $11,214,461 $ 11,209,930 $ 11,016,945 $ 10,621,926 $ 10,345,569 $ 10,226,456

Legal Debt Limit (5%) 469,528 503,992 5301172 556,985 560,723 560,497 550,847 531,096 517,278 511,323

Amount of Debt Applicable to Limitation General Obligation Bonds: Governmental 4,345 4,190 3,965 3,730 7,225 11,220 10,470 16,555 Proprietary 2,465 2,585 1,850 1,515 11,165 10,800 10,410 10,000 9,615 9,215 General Obligation Notes: Governmental 2,982 3,182 3,502 2,833 2,382 2,250 2,726 Proprietary 820 420 Unfunded Pension

Liability Total General Obligation Debt 6,267 6,187 9,697 8,538 17,512 16,780 20,361 21,220 20,085 25,770

Less: Amount Available for financing general obligation debt

Debt Service Fund Reserves 110 225 442 39 509 3309 99 81 229 Net outstandmg GO Debt Applicable to Debt Limitation ~ 6,157 ~ 6,187 ~ 91472 ~ 8,096 ~ 17,473 ~ 16,271 ~ 17,052 ~ 21,121 ~ 20,004 ~ 25,541

Percent of Debt to Legal Limit 1.31% 1.23% 1.79% 1.45% 3.12% 2.90°/o 3.10% 3.98% 3.87% 5.00% Legal Margin for New Debt $ 463,371 $ 497,805 $ 520,700 $ 548,889 $ 543,250 $ 544,226 $ 533,795 $ 509,975 $ 497,274 $ 485,782

Percentage of legal margin remaining 98.69% 98.77% 98.21% 98.55% 96.88% 97.10% 96.90% 96.02% 96.13% 95.00%

All dollar amounts are represented Wisconsin State Statute 67.03 limits total debt be no greater than 5% of the equalized real property of the county.

117

TABLE XI OZAUKEE COUNTY, WISCONSIN RATIO OF NET GENERAL OBLIGATION DEBT

TO EQUALIZED VALUE AND NET GENERAL OBLIGATION DEBT PER CAPITA LAST TEN FISCAL YEARS

ALL GENERAL OBLIGATION DEBT IS COMPRISED OF BONDS, NO NOTES PAYABLE

B d r A on ra 1ng aa

PER CAPITA GENERAL FISCAL POPULATION PERSONAL EQUALIZED GOV. YEAR ( 1) INCOME VALUATION (2) DEBT 2004 85,658 34,184 9,390,562,200 2,982,000 2005 85,787 34,881 10,079,843,800 3,602,000 2006 86,389 35,593 10,456,971,900 7,847,000 2007 86,697 36,305 11,139,703,800 7,023,333 2008 85,874 38,895 11,214,460,600 5,861,586 2009 85,452 38,074 11,053,112,400 5,980,000 2010 85,554 39,441 10,642,346,700 9,951,492 2011 86,395 39,778 10,246,339,400 11,220,000 2012 86,823 41,272 10,183,748,800 10,470,000 2013 87,054 42,180 1 0,226,456,100 16,555,000

(1) Source: US Census Bureau (2) Includes the following tax incremental district values:

2004 199,624,500 2008 228,986,522 2005 202,930,200 2009 319,354,000 2006 205,836,175 2010 315,847,700 2007 $235,956,900 2011 $ 324,591,000

(3) Includes Lasata Campus and Mee-Kwon golf course.

PROPRIETARY DEBT

PAYABLE FROM REVENUES (3)

3,285,000 2,585,000 1,850,000 1,515,000

11,650,000 10,800,000 10,410,000 10,000,000 9,615,000 9,215,000

118

RATIO OF LESS GOV DEBT DEBT TO

SERVICE EQUALIZED FUND VALUE 110,044 0.031%

- 0.036% 225,453 0.073% 441,956 0.059%

39,755 0.052% 509,158 0.049% 376,657 0.090% 99,252 0.109% 80,666 0.102%

229,398 0.160%

2012 161,820,900 2013 157,025,500

GOV. DEBT PER

CAPITA 33.53 41.99 88.22 75.91 67.80 64.02

111.92 128.72 119.66 187.53

PROP. GOV. PROP. DEBT

DEBT% DEBT %OF OF PER INCOM

INCOME CAPITA E 0.10% 38.35 0.11% 0.12% 30.13 0.09% 0.25% 21.41 0.06% 0.21% 17.47 0.05% 0.17% 135.66 0.35% 0.17% 126.39 0.33% 0.28% 121.68 0.31% 0.32% 115.75 0.29% 0.29% 110.74 0.27% 0.44% 105.85 0.25%

FISCAL YEAR

2004 2005 2006 2007

2008 2009 2010 2011*

2012 2013

TABLE XII OZAUKEE COUNTY, WISCONSIN

RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL DEBT TO TOTAL GENERAL GOVERNMENT EXPENDITURES (1)

LAST TEN FISCAL YEARS

TOTAL TOTAL GENERAL RATIO OF DEBT SERVICE DEBT SERVICE GOVERNMENT TO GENERAL GOVERNMENT

PRINCIPAL INTEREST EXPENDITURES EXPENDITURES (2) EXPENDITURES

148,000 64,109 212,109 45,055,228 0.47%

160,000 120,515 280,515 46,375,436 0.60%

100,000 157,150 257,150 50,540,483 0.51%

401,667 351,754 753,421 53,078,169 1.42%

676,747 319,819 996,566 50,801,922 1.96%

1,054,960 678,832 1,733,792 47,421,697 3.66%

768,508 732,017 1,500,525 50,794,858 2.95%

3,328,398 783,214 4,111,612 50,131,802 8.20%

1,165,000 795,731 1,960,731 50,873,910 3.85%

800,000 405,730 1,205,730 46,486,426 2.59%

(1) General obligation debt reported in the proprietary funds has been excluded (2) This summary includes expenditures of the General Fund, Special Revenue Funds, Internal Service, and

Debt Service Funds. It excludes Enterprise, Capital, Trust and Agency Funds

2011* Including $2,726,492 defeasance from 2010 refinancing.

119

TABLE XIII OZAUKEE COUNTY, WISCONSIN

COMPUTATION OF DIRECT, OVERLAPPING AND UNDERLYING DEBT December 31, 2013

AMOUNT OF NUMBER DEBT APPLICABLE TO OZAUKEE COUNTY

OF TAXING NET OF ENTITIES SINKING FUNDS PERCENT* AMOUNT

Ozaukee County:

Total General Obligation Debt $ 25,770,000

Less: Amount available in Debt Service Fund 229,398 Less Debt from Proprietary Funds 9,215,000

Net General Obligation Debt 16,325,602

OVERLAPPING DEBT: Milwaukee Area Technical College 1 115,370,000 10.50% 12,113,850 Lakeshore Technical College 1 25,255,000 4.00% 1,010,200

Total Overlapping Debt 2 90,115,000 14.56% 13,124,050

UNDERLYING DEBT:

Cities 3 56,235,162 100.00% 56,235,162

Villages 7 73,009,071 100.00% 73,009,071.47

Towns 6 2,865,713 100.00% 2,865,713

School Districts 8 55,055,000 94.00% 51' 751,700.00

Sanitary Districts 2 849,182,000 1.00% 8,491,820

Total Underlying Debt 26 1 ,036,346,946 192,353,466

TOTAL DIRECT GENERAL OBLIGATION, OVERLAPPING AND UNDERLYING DEBT $ 221,803,118

*Overlap percentage is based upon the number Ozaukee County residents served as a percentage of total population served.

120

TABLE XIV OZAUKEE COUNTY, WISCONSIN

FISCAL YEAR POPULATION (1)

2004 85,160 2005 85,787 2006 86,389 2007 86,697 2008 85,874

2009 85,452

2010 85,554 2011 86,395 2012 86,823 2013 87,054

DATA SOURCE (1) US Census

DEMOGRAPHIC STATISTICS LAST TEN FISCAL YEARS

PER CAPITA TOTAL PERSONAL

INCOME (2) INCOME

34,184 2,911 '1 09,440 34,881 2,992,336,34 7 35,593 3,07 4,843,677 36,305 3,147,534,585 38,895 3,340,069,230

38,074 3,253,499,448 39,441 3,374,335,314 36,267 3,133,287,465 41,272 3,583,358,856 42,180 3,671 ,937, 720

(2) US Department of Commerce Bureau of Economic Analysis, Census Bureau (3) Wisconsin Department of Public Instruction (4) US Department of Labor, Bureau of Labor Statistics

121

SCHOOL ENROLLMENT (3)

16,003 16,103 15,995 17,026 15,893

15,944 15,643 15,266 15,316 16,113

UNEMPLOYMENT RATE (4)

3.6% 4.1% 4.1% 3.2% 3.7%

7.4% 6.7% 6.2% 5.5% 4.9%

TAX

TABLE XV OZAUKEE COUNTY, WISCONSIN

ASSESSED AND EQUALIZED VALUES OF TAXABLE PROPERTY

LAST TEN FISCAL YEARS

EQUALIZED PERSONAL TOTAL VALUE PROPERTY PERCENT ASSESSED

RATIO OF ASSESSED VALUATION

BUDGET REAL ESTATE EQUALIZED TO EQUALIZED YEAR YEAR VALUE VALUE VALUE (1) CHANGE VALUATION (2) VALUE ~ 2004 2005 9,038,155,000 152,782,700 9,190,937,700 8.72 8,518,089,670 92.68 1.86

2005 2006 9, 734,525,500 145,693,800 9,880,219,300 7.50 8,839,362,664 89.47 1.81

2006 2007 10,456,971,900 146,458,100 10,603,430,000 7.32 9,306,957,901 87.77 1.72

2007 2008 11 '139, 703,800 147,777,500 11,287,481,300 6.45 9,389,203,527 83.18 1.62

2008 2009 11 ,054,066, 1 00 155,864,300 11,214,460,600 -0.65 9,952,150,920 88.74 1.63

2009 2010 11 ,053,112,400 145,657,900 11,198,770,300 -0.14 10,602,601,647 94.68 1.68

2010 2011 10,642,346,700 159,271,200 10,801,617,900 -3.68 10,645,728,500 98.56 1.74

2011 2012 10,562,187,100 144,290,400 10,706,477,500 -4.53 10,816,657,142 101.03 1.77

2012 2013 10,191,843,500 153,726,200 10,345,569,700 -7.75 10,857,876,590 104.95 2.12

2013 2014 10,066,203,800 160,252,300 10,226,456,100 -8.68 10,937,958,184 106.96 2.12

Property taxes are applied against the equalized value.

(1) Equalized value represents the most recent physical reassessment adjusted by any annual property appreciation to bring it to current estimated market value. Does include tax incremental districts.

(2) Assessed valuation represents the most recent physical reassessment. The state of Wisconsin encourages a reassessment when the assessed valuation falls below 70% of the equalized valuation.

(3) Per $1,000 of equalized real estate value. Operating levy $1.84 countywide, does not include $.28 for shared library to non-library communities for shared library services.

122

FISCAL YEAR

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

TABLE XVI OZAUKEE COUNTY, WISCONSIN

EQUALIZED PROPERTY VALUE AND NEW CONSTRUCTION

LAST TEN FISCAL YEARS

(Dollars in Thousands)

New construction ( 1 ) Equalized Property Values (2)

MANUFAC· COMMERCIAL RESIDENTIAL TURING TOTAL COMMERCIAL RESIDENTIAL

51,185,900 189,954,200 5,517,600 246,657,700 1 '173,37 4,600 7,439,983,600

40,875,800 170,729,100 7,360,200 218,965,100 1 ,229,263,500 8,066,694,200

22,833,300 238,233,000 1,657,500 262,723,800 1,280,868,500 8, 716,442,700

47,945,800 236,953,600 1,025,400 285,924,800 1 ,407 ,096, 100 9,286,329,200

45,586,300 137,609,100 4,146,300 187,341,700 1 ,495,355, 100 9,266, 786,900

33,560,000 100,889,200 2,364,800 136,814,000 1,554,312,800 9,080,926,000

22,555,200 62,220,500 3,545,300 88,321,000 1,551 ,970,300 8,700,126,800

33,078,500 40,381,000 602,500 74,062,000 1 ,543,000,800 8,614,281,200

17,478,100 48,058,900 793,300 66,330,300 1 ,496,285,300 8,313,428,900

22,122,000 57,855,400 2,485,300 82,462,700 1 ,459,917,400 8,230,625,600

(1) Wisconsin Department of Revenue, Bureau of Equalization. This table excludes tax exempt property values.

Equalized value is the assessed value adjusted by the current prevailing market price for similar property.

AGRICULTURE, MANUFAC· FORREST, &

TURING OTHER

289,564,700 135,232,100

293,081 ,400 145,486,400

294,995,900 164,664,800

274,456,600 171,821,900

277,090,800 175,227,800

255,585,800 162,287,800

241,100,800 149,148,800

239,092,400 149,241 ,900

232,765,700 149,363,600

235,854,300 300,058,800

TOTAL

9,038,155,000

9,734,525,500

10,456,971 ,900

11,139,703,800

11,214,460,600

11,053,112,400

10,642,346,700

10,545,616,300

1 0,191,843,500

1 0,226,456,100

(2) The value of tax exempt property is unavailable for all years. Property Values include real estate only, personal property values are excluded and untaxed by the County.

(3) Per $1,000 of equalized value. Operating levy $1.74 countywide, does not include $.28 to non-library communities for shared library services.

123

Tax Rate (3)

1.83

1.78

1.69

1.61

1.63

1.68

1.74

1.77

1.77

1.77

Wisconsin County Tax levy Ran kings 2012

' es

OZAUKEE 255,600 VILAS 1.92 VILAS 371.22 Yes DANE 230,800 WAUKESHA 1.97 IRON 421.87 Yes WASHINGTON 228,000 ONEIDA 2.00 OZAUKEE 434.47 Yes ST CROIX 225,700 DANE 2.54 MARINETTE 436.66 Yes PIERCE 200,200 SAWYER 2.67 GRANT 440.46 Yes WALWORTH 198,000 WASHINGTON 2.86 SAWYER 447.84 Yes VILAS 194,900 BURNETT 2.99 BURNETT 465.28 Yes DOOR 189,500 BAYFIELD 3.10 CHIPPEWA 470.84 Yes JEFFERSON 182,500 CHIPPEWA 3.28 BAYFIELD 493.32 Yes KENOSHA 182,400 RACINE 3.29 WAUKESHA 505.17 NONE COLUMBIA 177,500 DOOR 3.43 EAU CLAIRE 514.11 Yes RACINE 175,700 WALWORTH 3.52 ASHLAND 514.65 Yes ONEIDA 172,800 EAU CLAIRE 3.52 RUSK 523.22 Yes POLK 170,300 STCROIX 3.53 LACRO!i!i~ 523.91 Yes SAWYER 168,200 LA CROSSE 3.62 DOUGLAS 528.69 Yes SAUK 166,400 GRANT 3.78 WOOD 534.25 Yes MILWAUKEE 165,700 JEFFERSON 3.95 FOREST 559.88 Yes BURNETT 159,100 MARINETTE 3.98 RACINE 564.74 NONE CALUMET 158,700 WASHBURN 4.02 LAN GLADE 570.09 Yes BAYFIELD 157,300 IRON 4.10 PRICE 571.87 Yes BROWN 156,100 KENOSHA 4.25 DANE 575.66 Yes DODGE 155,900 DOUGLAS 4.26 WASHBURN 596.10 Yes IOWA 155,500 SAUK 4.27 BARRON 599.35 Yes OUTAGAMIE 153,500 BROWN 4.29 MENOMINEE 603.85 NONE DUNN 152,700 COLUMBIA 4.37 SHAWANO 616.90 Yes SHEBOYGAN 151,100 CALUMET 4.41 JUNEAU 640.23 Yes GR~EN 150,300 OUTAGAMIE 4.44 WASHINGTON 640.71 Yes LA CROSSE 148,700 MILWAUKEE 4.45 DOOR 649.76 Yes WASHBURN 148,400 BARRON 4.62 MANITOWOC 653.66 NONE EAU CLAIRE 147,200 WOOD 4.70 VERNON 657.95 Yes CHIPPEWA 146,300 POLK 4.74 OUTAGAMIE 664.17 NONE OCONTO 146,300 PORTAGE 4.74 CALUMET 664.41 NONE KEWAUNEE 144,400 OCONTO 4.74 PORTAGE 667.98 Yes PORTAGE 143,100 FOREST 4.77 OCONTO 676.06 Yes FOND DULAC 143,000 RUSK 4.88 BROWN 676.65 NONE MARQUETTE 141,000 SHAWANO 5.01 WALWORTH 678.56 Yes WINNEBAGO 140,500 SHEBOYGAN 5.10 SAUK 687.27 Yes MARATHON 139,500 ASHLAND 5.13 MARATHON 699.22 Yes PEPIN 138,500 MARATHON 5.15 JEFFERSON 701.54 Yes ROCK 138,000 PIERCE 5.18 MONROE 703.03 Yes GREEN LAKE 137,500 VERNON 5.22 LINCOLN 710.82 Yes WAUPACA 137,100 MANITOWOC 5.29 MILWAUKEE 725.40 Yes WAUSHARA 136,600 LAN GLADE 5.29 FLORENCE 726.72 Yes BARRON 134,500 GREEN 5.36 RICHLAND 734.59 Yes TREMPEALEAU 132,800 FOND DULAC 5.37 TREMPEALEAU 734.87 Yes VERNON 131,700 PRICE 5.37 GREEN LAKE 738.94 Yes LINCOLN 131,300 IOWA 5.44 FOND DULAC 742.60 Yes ADAMS 130,700 GREEN LAKE 5.53 BUFFALO 745.27 Yes BUFFALO 130,600 JUNEAU 5.56 CRAWFORD 745.94 Yes DOUGLAS 130,200 DODGE 5.62 SHEBOYGAN 754.36 NONE MONROE 126,800 LINCOLN 5.65 COLUMBIA 757.07 Yes SHAWANO 125,100 TREMPEALEAU 5.66 CLARK 758.92 Yes MANITOWOC 124,000 WINNEBAGO 5.76 JACKSON 765.96 Yes RICHLAND 123,000 MONROE 5.79 KENOSHA 768.47 Yes JACKSON 121,400 WAUPACA 5.80 WAUPACA 776.42 Yes TAYLOR 120,100 BUFFALO 5.94 GREEN 780.26 Yes FLORENCE 123,700 WAUSHARA 5.98 STCROIX 792.95 Yes GRANT 118,300 ROCK 6.00 WAUSHARA 798.63 Yes FOREST 117,900 RICHLAND 6.16 POLK 800.88 Yes LAFAYETTE 117,700 FLORENCE 6.32 WINNEBAGO 801.48 NONE WOOD 116,500 JACKSON 6.48 ROCK 810.23 Yes CRAWFORD 113,900 MARQUETTE 6.50 LAFAYETTE 821.02 Yes JUNEAU 112,500 CRAWFORD 6.68 IOWA 835.45 Yes PRICE 111,500 PEPIN 6.83 DODGE 863.50 Yes CLARK 110,900 DUNN 6.88 TAYLOR 881.15 Yes RUSK 110,200 CLARK 6.99 MARQUETTE 893.55 Yes MARINETTE 109,700 LAFAYETTE 7.16 ADAMS 907.61 Yes LAN GLADE 107,500 ADAMS 7.23 PEPIN 942.51 Yes IRON 106,700 KEWAUNEE 7.48 DUNN 1,020.05 Yes ASHLAND 103,000 TAYLOR 7.51 KEWAUNEE 1,037.92 NONE MENOMINEE 92,600 MENOMINEE 8.13 PIERCE 1,051.90 Yes

(1) Home Value based on 2010 US Census Bureau (2) Levy Rate based on 2011 Wisconsin Department of Revenue (Operational & Debt)

Average Ozaukee

Debt Levy as Percentage of Total 9.6% 7.5%

Averages I Ozaukee County without Sales Tax

Avg. Tax $ 673.80 Rate . 7 Oz under avg. $ 239.33 Average Home Property Tax $ 589.98 %under Avg. 55.1% Annual equlvalent purchases subject to sales taxable $ 31,102

124

EMPLOYER 2013

Columbia St Mary's Group 1

Concordia University Wisconsin Inc 2

Rockwell Automation Inc 3

County of Ozaukee 4

Charter Mfg Co Inc 5

Kleen Test Products 6

Mequon-Thiensville Public School 7

Aurora Advanced Healthcare Inc 8

Cedarburg School District 9

Pace Industries LLC 10

EMPLOYER 2011

Columbia St Mary's Group 1

Concordia University Wisconsin Inc 2

Rockwell Automation Inc 3

County of Ozaukee 4

Charter Mfg Co Inc 5

Kleen Test Products 6

Mequon-Thiensville Public School 7

Aurora Advanced Healthcare Inc 8

Cedarburg School District 9

Pace Industries LLC 10

TABLE XIX OZAUKEE COUNTY, WISCONSIN

TEN PRINCIPAL INDUSTRIES AND COMMERCIAL ENTITIES DECEMBER 31, 2013 AND THREE YEARS AGO

Percentage of NUMBER OF Total County EMPLOYEES Employment EMPLOYER

950 1.99% Columbia St Mary's Group

850 1.78% Concordia University Wisconsin Inc

800 1.67% Rockwell Automation Inc

725 1.52% County of Ozaukee

625 1.31% Charter Mfg Co Inc

575 1.20% Kleen Test Products

550 1.20% Mequon-Thiensville Public School

525 1.10% Aurora Advanced Healthcare Inc

475 0.99% Cedarburg School District

400 0.84% Pace Industries LLC

Percentage of NUMBER OF Total County EMPLOYEES Employment EMPLOYER

950 1.99% Columbia St Mary's Group

850 1.78% Concordia University Wisconsin Inc

800 1.67% Rockwell Automation Inc

750 1.57% County of Ozaukee

625 1.31% Charter Mfg Co Inc

575 1.20% Kleen Test Products

550 1.20% Mequon-Thiensville Public School

525 1.10% Aurora Advanced Healthcare Inc

475 0.99% Cedarburg School District

400 0.84% Pace Industries LLC

2012

1

2

3

4

5

6

7

8

9

10

2010

1

2

3

4

5

6

7

8

9

10

Source: Southeastern Wisconsin Regional Planning Commission, Multi-jurisdictional Comprehensive Plan and individual employers Space constraints and the relative stability of employers ranking make more than 4 years data not cost beneficial.

125

Percentage of NUMBER OF Total County EMPLOYEES Employment

950 1.99%

850 1.78%

800 1.67%

725 1.52%

625 1.31%

575 1.20%

550 1.20%

525 1.10%

475 0.99%

400 0.84%

Percentage of NUMBER OF Total County EMPLOYEES Employment

950 1.99%

850 1.78%

800 1.67%

750 1.57%

625 1.31%

575 1.20%

550 1.15%

525 1.10%

475 0.99%

400 0.84%

NAME

CENTRO BRADLEY SPE 1 LLC FFII WI MEQUON LLC HTA-WISCONSIN MOB 2 LLC ST. MARY'S HOSPITAL OF MILWAUKEE INLAND AMERICA, LLC COSTCO WHOLESALE CORP CENTERPOINT PROPERTIES TRUST GRAFTON LLC CHARTER MFG COMPANY INC BLUME MFG COMPANY INC KTR WIS II LLC AMC Holding LLC SCHMIDT MEQUON, LLC

TOTALS

TABLE XVIII OZAUKEE COUNTY, WISCONSIN

TEN PRINCIPAL TAXPAYERS DECEMBER 31, 2013 AND ONE YEAR AGO

2013

PERCENTAGE OF ASSESSED TOTAL ASSESSED

Rank VALUE VALUE Rank

1 $30,633,000 20.81% 1 2 $18,677,700 12.69% 3 18,257,100 12.40% 3 4 12,982,300 8.82% 5 5 12,627,900 8.58% 4 6 12,137,700 8.25% 7 7 11,774,700 8.00% 8 8 10,971,200 7.45% 9 9,918,000 6.74% 9

10 9,230,500 6.27% 2 0.00% 2 6 0.00% 6

10 0.00% 10

7,21 0,100 100.00%

126

2012

ASSESSED PERCENTAGE OF VALUE TOTAL ASSESSED VALUE

$30,633,000 19.75%

18,257,100 11.77% 14,649,200 9.44% 15,424,300 9.94% 12,137,700 7.83% 11,774,700 7.59%

10,582,600 6.82%

$18,503,700 11.93% 12,671,300 8.17% 10,475,800 6.75%

155,109,400 100.0%

DATE OF INCORPORATION

FORM OF GOVERNMENT

County Board

County Administrator

AREA

MILES OF ROADS

STATE

COUNTY

LOCAL

OTHER

COUNTY EMPLOYEES

General Government

Health Care/Human services

Public Works

Public Safety

TOTAL

PUBLIC SAFETY

Number of County Police Departments

Number of Sworn Officers

Number of County Water Rescue Teams

Number of County HazMat Teams

Number of Local Police Departments

Number of Sworn Officers

Number of Local Fire Departments

Number of Sworn Officers

Rescue Squads/Ambulances

Moody's bond rating:

TABLE XX OZAUKEE COUNTY, WISCONSIN

MISCELLANEOUS STATISTICS

December 31, 2013

1853

26 members

Non-elected

234 Sq. Miles

42.45

152.21

681.63

41.52

917.81

FT PT/Temp

50 41

212 199

48 25

106 53

416 318

1

74 9

7

276

9

700

8

Aaa

127

HOSPITALS

Non-County Operated

RECREATION

County Operated:

2

Number of Parks 9

Acres of Parks 922

Golf Courses 2

Miles of Bicycle/Snowmobile Trails 38

Non-County Owned

Number of Parks 126

Acres of Parks 2,045

Golf Courses, private 8

Miles of Bicycle/Snowmobile Trails 136

Marinas

Miles of Shoreline

SCHOOLS- (Public & Private)

Elementary

Junior High

Senior High

Higher Education

Total

Number of Students Enrolled

LIBRARIES

UTILITIES

Local Government operated

Municipal and private

Water Facilities, municipal

Sanitary Sewer Facilities

Electric, private

25

25

6

6

3

40

16,113

5

5

5

2

OZAUKEE COUNTY, WISCONSIN FULL-TIME EQUIVALENT EMPLOYEES BY FUNCTION

Last Ten Fiscal Years

Full-time Equivalent Employee Positions During Year

2004 2005 2006 2007 2008 2009 2010 2011 FUNCTION

Cultural & Recreation 47 46 45 43 41 40 44 46 General Government 43 41 40 39 39 44 44 44 Health & Human Services 312 310 306 311 309 313 306 319 Public Safety 147 143 143 143 147 145 143 143 Public Works & Transportation 69 68 66 66 63 63 63 62

TOTAL 618 608 600 602 599 605 600 614

Percent Change -13.75 -1.62 -1.32 0.29 -0.45 1.00 -0.83 2.33

Full Time Equivalent Positions

800

600

400

200

0 2004 2005 2006 2007 2008 2009 2010 2011 2012

a Public Works & Transportation •Public Safety a Health & Human Serv1ces IIGeneral Government mCultural & R

128

Aging

Child Support

Clerk of Courts

Coroner

Corporation Counsel

County Clerk

District Attorney

Emergency Mgnt.

Finance

Golf Courses

Parks

Highway

Human Services

Lasala Care Center

Lasala Crossing

Lasala Apartments

Library System

TABLE XXII Ozaukee County Operating Indicators

20,500 Meals served 30,000 Meals delivered 5,980 Contacts

90% of cases have paternity established

80% of child support collected in month due and 80% of arrears collected during year

Cases

Criminal 1,157 Protective placements

Traffic 4609 Search Warrants

Family 359 Wills Filed

Juvenile 111

Probate 177

36 autopsied deaths, 490 deaths investigated, 1020 total deaths

516 cases opened, $47,290 in collections

14

45

142

392 Marriage/domestic partner licenses issued, 483 passports, 170,075 ballots ordered

1, 725 subpoenas filed and 184 served, 30 jury trials, 3,309 victim rights exercised

35 Water Safety Rescue Boat responses and 16 Hazmat responses

19,017 payroll checks issued, 18,529 invoices processed, $64,000 in discounts, Aaa bond rating

78,271 rounds of golf on the 2 County courses, exceeding 5 yr avg. by 6,000 rounds for second year.

520 weekend or weekday reservations for camping or facility rental, 96 mi.s of snowmobile trails

32,751 tons of bituminous mix produced, 44,464 tons of gravel mined

County Interstate

Miles of roads serviced 154 27

County roads Overall Condition Index (OCI) rating 72 (very good)

State

64

Town

203

Involuntary hospitalizations

Child Child Home Develop.

Clients

Birth to Three

282 189

ADRC Protection Placement meals Disabled

7,060 453 106 20,500 696

209 bed facility with 97.4% occupancy rate, full care facility

Assisted living facility, 60 beds, 98% occupancy

60 rooms with 57 occupied, independent living arrangement

79,542 Bookmobile loans, 348,000 interlibrary loans

111 state sanitary permits and 445 inspections of private on site wastewater treatment, 40 acres of buffer Planning Resource installed, 29,575 trees sold, 140 farmers participating in the Farmland Preservation Program and Land Management 500 citizen participants in planning meetings, 8 land division reviewed, 3 storm water projects

Public Health

Register of Deeds

Treasurer

Sheriff

Transit

UW Extension

Veterans Services

267 private wells tested, 1,200 vaccines administered, 294 beach testings, 267 tests of municipal water systems, 65 prenatal visits, 240 lead screenings

21 ,440 property documents recorded

41,800 tax bills sent, $12,060,000 invested year end, $16,819,834 cash balance

Cases Auto Accidents

35,466 748

90,751 taxi and 117,536 bus rides

911 calls

17,462

Weapons Avg. daily jail found Arrests Population

748 121 224

6,700 volunteer hours, 12 4-H clubs and 30 projects,

480 veterans/surviving families serviced, 135 new files

220 veterans transported for hospital visits

129

TABLE XXIII OZAUKEE COUNTY, WISCONSIN

Function I Program

General Government: Administration Center Old County Jail Historical Building Tower Mequon Tower Belgium Fairgrounds Bldgs.

Public Safety: Justice Center Patrol Units Search and Rescue Boat

Public Works: Highway Office & Maint Shop Highway Dept. Satellite Shops

Salt Domes Salt Sheds Sand Sheds Gravel Pits

Asphalt Plant Bridges Traffic Signals Shared Ride Taxi's Buses

Culture, Recreation & Education: County Parks-Building Ice Center

Enterprise: Nursing Home Assisted Living Apts. Independent Living Apts. Golf Courses

Capital Asset Statistics by Function/Program* Last Ten Calendar Years

2004 2005 2006 2007 2008 2009

1 1 1 1 1 0 0 1 1 1 1 1 1 1 1

1 1 16 16 16 16 15 15

1 1 23 23 23 31 26 26 1 1 1 1

2 2 2 2 2 2 3 3 3 3 3 3 2 2 2 2 2 2 2 2 2 2 2 2 3 3 3 3 3 3 4 4 4 4 4 4 1 1 1 1 1

18 18 18 18 18 18 5 5 5 5 5 5

26 26 28 25 22 27 5 5 5 5 5 5

16 17 17 17 17 17 1 1 1 1 0

1 1

1 2 2 2 2 2 2

*Information is from the Fixed Asset accounting system of Ozaukee County.

130

2010 2011 2012 2013

1 0 0 0 0 1 1 1 1 1 1 1

15 14 15 15

1 1 27 27 27 27

1 1 1 1

2 2 2 2 3 2 2 2 2 2 2 2 2 2 2 2 3 3 3 3 4 4 4 5

1 1 18 18 18 18 5 5 5 5

27 22 22 24 5 5 5 5

17 17 17 17 0 0 0 0

1 1 1 1 1 1 1 2 2 2 2

Adults County Male Female Total

Boarders Male Female Total

Male Female Total

Juvenile County Male Female Total

Boarders Total

Percent County Boarders Adult Juvenile

Tho us. $2,000

$1,500

$1,000

$500

2004

46,011 5,250

51,261

26,288 785

27,073

72,299 6,035

78,334

713 232 945

78,334

65.44% 34.56% 98.81%

1.19%

2004

TABLE XXIV OZAUKEE COUNTY, WISCONSIN

Jail Inmate Population - 12 month totals

2005 2006 2007 2008 2009 2010 2011 2012

40,730 44,768 46,294 45,750 43,882 43,169 39,921 40,007 6,812 6,670 7,765 8,451 8,666 8,918 10,562 10,983

47,542 51,438 54,059 54,201 52,548 52,087 50,483 50,990

29,311 19,879 26,519 29,256 29,064 29,451 22,466 4,770 973 495 141 177 305 293 673

30,284 20,374 26,660 29,256 29,241 29,756 22,159 5,443

70,041 64,647 72,813 75,006 72,946 72,620 62,387 44,777 7,785 7,165 7,906 8,451 8,843 9,223 10,855 11,656

77,826 71,812 80,719 83,457 81,789 81,843 73,242 56,433

77,826 71,812 80,719 83,457 81,789 81,843 73,242 56,433

61.09% 71.63% 66.97% 64.94% 64.25% 63.64% 68.93% 90.35% 38.91% 28.37% 33.03% 35.06% 35.75% 36.36% 31.07% 9.65%

100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 100.00%

Actual rding ue

~~---r----·--~

2005 2006 2007 2008 2009 2010 2011 2012 2013

-Actual -Budget

131

Title

Clerk of Circuit Court County Clerk Register of Deeds Sheriff Treasurer

TABLE XXV OZAUKEE COUNTY, WISCONSIN

SURETY BONDS OF PRINCIPAL OFFICIALS DECEMBER 31, 2013

2013 Annual Salary

$ 74,651 $ 69,742 77,834

100,381 72,634

Bond Amount

200,000 5,000

55,000 5,000

500,000

All officials and classified employees of Ozaukee County are additionally bonded under a Public Employees Honesty Blanket Bond in the amount of $500,000.

132

TABLE XXVI

OZAUKEE COUNTY Ozaukee County Delinquent Tax History

END OF YEAR TAX SALE COUNTY TAX %0FLEVY TAX CERTIFICATE

YEAR YEAR LEVY SALE UNCOLLECTED ROLL BALANCE 1978 1979 3,150,993 292,033 9.26% 382,485 1979 1980 3,807,239 414,684 10.89% 543,920 1980 1981 4,417,224 692,393 15.67% 839,427 1981 1982 4,949,268 936,513 18.92% 1,155,448 1982 1983 5,269,724 864,803 16.10% 1,217,072 1983 1984 5,368,971 984,512 18.33% 1,386,498 1984 1985 5,920,611 832,755 14.06% 1,240,866 1985 1986 6,195,765 808,534 13.05% 1,198,362 1986 1987 7,054,754 717,372 10.17% 1,154,125 1987 1988 7,348,990 805,094 10.95% 1,012,240 1988 1989 8,367,162 819,013 9.79% 1,039,443 1989 1990 10,861,347 1,169,366 10.77% 1,177,679 1990 1991 9,418,792 1,722,343 18.29% 1,540,559 1991 1992 10,520,857 1,650,686 15.69% 1,535,316 1992 1993 11,200,215 1,393,249 12.44% 1,726,702 1993 1994 11,543,672 1,067,071 9.24% 1,121,178 1994 1995 11,494,997 1,000,339 8.70% 1,119,349 1995 1996 10,462,170 1,020,075 9.75% 1,080,172 1996 1997 11,521,540 867,114 7.53% 804,203 1997 1998 14,358,229 862,555 6.01% 737,182 1998 1999 13,603,980 779,002 5.73% 773,520 1999 2000 9,380,528 845,933 9.02% 744,025 2000 2001 12,914,745 971,259 7.52% 944,172 2001 2002 15,343,197 1,154,219 7.52% 1,025,141 2002 2003 15,307,317 1,181,734 7.72% 1,168,521 2003 2004 16,415,973 979,071 5.96% 1,023,099 2004 2005 16,860,542 1,165,983 6.92% 1,042,543 2005 2006 17,525,469 1,143,143 6.63% 1,161,931 2006 2007 18,005,783 1,676,182 7.79% 1,402,333 2007 2008 18,262,492 1,944,028 9.47% 1,730,186 2008 2009 18,282,692 2,346,153 12.06% 2,204,305 2009 2010 18,503,938 2,507,176 14.07% 2,603,542 2010 2011 18,503,938 2,096,649 12.77% 2,362,277 2011 2012 18,635,695 1,668,353 10.46% 1,949,240 2012 2013 18,813,504 1,735,491 8.71% 1,637,964

Reported as of December 31 of each year.

133

PENSION:

TABLE XXVII OZAUKEE COUNTY, WISCONSIN

Government Accounting Standards Board STMT # 45 Other Post Employment Benefits (OPEBs)

Ozaukee County employees are enrolled in the Wisconsin Retirement System (WRS). WRS is an independent, state sponsored, defined benefits plan that provides for both the County and employee to contribute a percentage of wage. In 2013 the County and employees each contributed 6.65% of gross wages to the system. the system is currently over 97% funded.

Both normal and disability retirement are covered under this plan. The county has no further liability upon retirement.

INSURANCE: The county does not offer any County paid post retirement insurance.

Employees are allowed to save a portion of unused sick time to be applied toward health related insurance payments upon retirement according to the various negotiated contracts. The percentage of conversion ranges from zero to 1 00%. The recognized liability for this benefit is $2.3 million.

This benefit is segregated and recognized at termination. There is no benefciary provision.

The County allows all full time retired employees and spouse to participate in a separate insurance plan at their own expense until they reach 65 years of age. The County currently has 19 retired employees and 10 spouses contributing to their health insurance in this plan. We consider the acturial impact immaterial for reporting purposes.

OTHER: The County has no other post employment benefits.

134

OZAUKEE COUNTY, WISCONSIN Notes to Basic Financial Statement

December 31, 2013

STATISTICAL ANALYSIS

OBJECTIVE: To provide a narrative explanation of the following statistical financial data in a concise reader­

friendly format.

Financial Trends:

The statistical section of the CAFR can be one of the most interesting segments for a longer overview of

operations. Especially, when a seismic event occurs like the great recession. Ozaukee County, like almost every

financial entity in the world, has suffered since 2008 as a result of the depressed business cycle. A closer look

reveals some interesting statistics. Years' 2004 through 2005 net position need to be disregarded due to an

accounting change in infrastructure valuation required under GASB 34. Our initial valuation was proven to be

overstated after four years of operational experience and subsequently lowered. The time line still has relevance

because 2006 is prior to the economic meltdown. I believe relationships to 2007 are the most important since this

was the last year before the equity crash.

Investment in both governmental and business activities actually increased from 2007. This was the result of low

interest rates and federal incentives and grants. In the past six years we have invested in some deferred capital

projects and assets that either return a revenue stream or lower our costs using federal programs and low interest

borrowing. During that period our governmental debt has gone from less than $3M to more than $16M yet the

associated interest has only increased less than 50%.

Governmental expenditures and revenues decreased by $7.9M and $8.7M respectively for activities from 2007 to

2013. The variance was primarily due to the state of Wisconsin outsourcing services and revenues for programs

affecting children up to eighteen. Enterprise fund activity expenses increased almost $2.9M during that time but

they have gone from losing money to realizing a combined profit of $1,870,067 in 2013 due to much larger

increases in revenues. The primary reasons are the addition of an assisted living component to our senior nursing

campus, better management and favorable weather at our golf courses, and a $1M transfer to our highway

department.

Unassigned fund balances are about the same for governmental activities in 2013 compared to 2007. Now they

are no longer concentrated in the General Fund but some are divested into Human Services. Enterprise Retained

Earnings are substantially down for business activities. The conscious decision to use reserves to finance

enterprise fund capital that would increase revenues and cash flows was the primary reason. The $1M transfer

from the General Fund to Highway was a decision to acknowledge that practice.

Revenue Capacity:

Ozaukee County is a wealthy county with family income well above the state and national average. It has the

second highest property values of the state's 72 counties but it also is among the lowest in tax rate. When one

compares the median priced home for each county levied at the mill rate it becomes apparent Ozaukee County

has, in most years, the least taxes on the median priced home of any WI county. The tax on a $256,000 home is

$434 while the most expensive county's tax is $1,052 on a $200,000 median priced home.

135

OZAUKEE COUNTY, WISCONSIN Notes to Basic Financial Statement

December 31, 2013

Sales tax increased over 4% last year on top of a 5% increase last year. The level of goods sold is now higher than

2007 even when factoring for inflation. We expect this upward trend to continue.

Since 2007 our property tax rate has gone from $1.69 to $1.84 per thousand dollars of equalized value. The

property tax has gone from $17,704,271 to $19,153,207 in 2013. The increase of $1,448,936 is equal to an 8%

increase over 6 years. Most of that increase has gone to debt service.

The state passed legislation in 20111imiting property tax increases to taxes provided by net new construction.

There are some exceptions to the limit including passed referendum, transfer of services between governmental

bodies, new debt (there are qualifiers), and some others.

Debt Capacity:

The County has state legislative authority to incur debt up to 5% of the County's equalized value. In 2013

equalized value was $10,226,456,100, the legal debt limit is $511,322,800, and the County's debt was

$25,770,000. We had $229,400 in the fund reserve and our amount applicable to the limit was $497,274,151

(96%). The County has utilized borrowing more over the last seven years due to low debt rates and a change in

philosophy. The Board and management are investing more into areas that provide revenue and cash flow. Our

senior nursing campus received $10M to build an assisted living facility. The objective was to provide additional

revenues to allow the campus to remain off the tax levy. We intend to borrow again in 2014 for the nursing care

facility to mitigate future expenses. We have invested in our Highway hot mix plant, vacant land purchases

containing gravel, and vehicles to keep costs down and generate more state reimbursement revenue. We initiated

a public/private partnership in 2012 to build a multipurpose facility on our fairgrounds with the Milwaukee Curlers

Association containing a 50 year renewable lease allowing the County revenue opportunities. Under state levy

limitation legislation all new debt approved by 75% of board members elect is exempt from levy limit restrictions.

Our internal policy is the same.

Future borrowing will consist of an issue in 2014 for up to $10M for renovations to the senior care center.

The County has an internal policy limiting debt. Total debt for governmental purposes will not exceed the tax levy

and debt carrying costs will not exceed 20% of the annual levy. Any enterprise debt expected to provide additional

revenue to cover debt service within six years is exempt.

Demographic and Economic Data

Ozaukee County is a wealthy county where half its residents work outside the county. We have manufacturing,

agriculture, education, health care, and retail businesses. Charter Steel and Allen Edmonds are two large

manufacturing employers. Getting detailed staffing information is difficult. Charter Steel is frequently in the local

papers reporting on new contracts. Allen Edmonds is a high-end shoe manufacturer with a global presence. It

recently opened a second facility in Milwaukee and is running close to full capacity in Ozaukee County. Agriculture

still has a significant presence but urban encroachment has had an effect. Retail has been growing rapidly.

Concordia University is a higher education institution that is experiencing rapid growth, adding a pharmacy and

veterinary school to their curriculum. There are two modern hospitals in the County. This may be a case of

overbuilding and competition could prove fatal to one. Time will tell. The Village of Grafton, which is centrally

located, has placed several new retail districts with large box stores. Other communities have witnessed their

136

OZAUKEE COUNTY, WISCONSIN Notes to Basic Financial Statement

December 31, 2013

success and are beginning to mimic. The County is also a local draw for tourism dollars. The rural atmosphere,

boutique shops, Lake Michigan access, interurban recreational trail, and local events are big attractions for day

trips out of the Milwaukee urban area.

Population has experienced slow but steady growth and is now about 87,000 people. Demographics skew to an

older population. Residential property historically retains its value but tl1e past 5-6 years has seen about a 10%

loss of fair market value.

Since 2007 per capita income has raised $4,967 (13.7%) according to the US Census Bureau. Unemployment in

2007 was 3.2%. It peaked in 2009 at 7.9% and is currently at 3.8%.

Operating Information:

The County employs about 650 people in full and part time positions. It hires seasonal labor, mostly youth, for its

golf courses, internships, highway, and parks. We operate a 24/7 senior care facility and Sheriff/jail operation. We

have two golf courses, judicial system, interurban bus and taxi service, and 23 governmental departments. Until

2012 labor was represented by four different unions but in 2012 three decertified by popular vote. Relationships

between labor and management are cordial, open and effective. Employees are enrolled in the Wisconsin

Retirement System that is currently 98% funded and contribute one half (6.5%} to the cost. Employees receive no

material post retirement benefits. Our Highway operates its own hot mix plant and gravel mining operations.

Snow clearance is a priority for our mobile civilian workforce and businesses due to our northern location. We are

responsible for snow removal and road repairs for state, local, County, and some private entities. In the past 10

years we have had zero days where roads were not clear of snow for travel. Recently budget constraints have

forced us to defer more road repairs than normal creating losses for Highway so in 2013 we borrowed for the first

time to address deferred projects. We have reduced the workforce through attrition, realigned staff for changing

needs and are attempting to hire more temporary workers or out-sourcing to keep staff costs down.

137

APPENDIX B

FORM OF CONTINUING DISCLOSURE CERTIFICATE

QB\32023121.1

CONTINUING DISCLOSURE CERTIFICATE

This Continuing Disclosure Certificate (the "Disclosure Certificate") is executed and delivered by Ozaukee County, Wisconsin (the "Issuer") in connection with the issuance of $7,150,000 General Obligation Refunding Bonds, dated February 2, 2015 (the "Securities"). The Securities are being issued pursuant to a Resolution adopted by the Governing Body of the Issuer on December 3, 2014 and supplemented by an approving certificate of the Chairperson of the County Board and County Administrator dated January 9, 2015 (collectively, the "Resolution") and delivered to Robert W. Baird & Co. Incorporated (the "Purchaser") on the date hereof. Pursuant to the Resolution, the Issuer has covenanted and agreed to provide continuing disclosure of certain financial information and operating data and timely notices of the occurrence of certain events. In addition, the Issuer hereby specifically covenants and agrees as follows:

Section 1(a). Purpose of the Disclosure Certificate. This Disclosure Certificate is being executed and delivered by the Issuer for the benefit of the holders of the Securities in order to assist the Participating Underwriters within the meaning of the Rule (defined herein) in complying with SEC Rule 15c2-12(b)(5). References in this Disclosure Certificate to holders of the Securities shall include the beneficial owners of the Securities. This Disclosure Certificate constitutes the written Undertaking required by the Rule.

Section 1(b). Filing Requirements. Any filing under this Disclosure Certificate must be made solely by transmitting such filing to the MSRB (defined herein) through the Electronic Municipal Market Access ("EMMA") System at www.emma.msrb.org in the format prescribed by the MSRB. All documents provided to the MSRB shall be accompanied by the identifying information prescribed by the MSRB.

Section 2. Definitions. In addition to the defined terms set forth in the Resolution, which apply to any capitalized term used in this Disclosure Certificate unless otherwise defined in this Section, the following capitalized terms shall have the following meanings:

"Annual Report" means any annual report provided by the Issuer pursuant to, and as described in, Sections 3 and 4 of this Disclosure Certificate.

"Audited Financial Statements" means the Issuer's annual financial statements, which are currently prepared in accordance with generally accepted accounting principles (GAAP) for governmental units as prescribed by the Governmental Accounting Standards Board (GASB) and which the Issuer intends to continue to prepare in substantially the same form.

"Final Official Statement" means the Final Official Statement dated January 9, 2015 delivered in connection with the Securities, which is available from the MSRB.

"Fiscal Year" means the fiscal year of the Issuer.

"Governing Body" means the County Board of Supervisors of the Issuer or such other body as may hereafter be the chief legislative body of the Issuer.

-2- QB\32023121.1

"Issuer" means Ozaukee County, Wisconsin, which is the obligated person with respect to the Securities.

"Issuer Contact" means the County Clerk of the Issuer who can be contacted at the Ozaukee County Courthouse, 121 West Main Street, P.O. Box 994, Port Washington, WI 53074-0994, phone (262) 284-9411, fax (262) 284-8100.

"Material Event" means any of the events listed in Section 5(a) of this Disclosure Certificate.

"MSRB" means the Municipal Securities Rulemaking Board located at 1900 Duke Street, Suite 600, Alexandria, Virginia 22314.

"Participating Underwriter" means any of the original underwriter(s) of the Securities (including the Purchaser) required to comply with the Rule in connection with the offering of the Securities.

"Rule" means SEC Rule 15c2-12(b)(5) promulgated by the SEC under the Securities Exchange Act of 1934, as the same may be amended from time to time, and official interpretations thereof.

"SEC" means the Securities and Exchange Commission.

Section 3. Provision of Annual Report and Audited Financial Statements.

(a) The Issuer shall, not later than 270 days after the end of the Fiscal Year, commencing with the year that ended December 31, 2014, provide the MSRB with an Annual Report filed in accordance with Section 1(b) of this Disclosure Certificate and which is consistent with the requirements of Section 4 of this Disclosure Certificate. The Annual Report may be submitted as a single document or as separate documents comprising a package, and may cross-reference other information as provided in Section 4 of this Disclosure Certificate; provided that the Audited Financial Statements of the Issuer may be submitted separately from the balance of the Annual Report and that, if Audited Financial Statements are not available within 270 days after the end of the Fiscal Year, unaudited financial information will be provided, and Audited Financial Statements will be submitted to the MSRB when and if available.

(b) If the Issuer is unable or fails to provide to the MSRB an Annual Report by the date required in subsection (a), the Issuer shall send in a timely manner a notice of that fact to the MSRB in the format prescribed by the MSRB, as described in Section 1(b) of this Disclosure Certificate.

-3- QB\32023121.1

Section 4. Content of Annual Report. The Issuer's Annual Report shall contain or incorporate by reference the Audited Financial Statements, adopted annual budget and/or current general fund budget summary and updates of the following sections of the Final Official Statement to the extent such financial information and operating data are not included in the Audited Financial Statements:

1. Tax Levies, Rates and Collections

2. Equalized Valuations

3. Indebtedness of the County — Direct Indebtedness

Any or all of the items listed above may be incorporated by reference from other documents, including official statements of debt issues of the Issuer or related public entities, which are available to the public on the MSRB’s Internet website or filed with the SEC. The Issuer shall clearly identify each such other document so incorporated by reference.

Section 5. Reporting of Material Events.

(a) This Section 5 shall govern the giving of notices of the occurrence of any of the following events with respect to the Securities:

1. Principal and interest payment delinquencies;

2. Non-payment related defaults, if material;

3. Unscheduled draws on debt service reserves reflecting financial difficulties;

4. Unscheduled draws on credit enhancements reflecting financial difficulties;

5. Substitution of credit or liquidity providers, or their failure to perform;

6. Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations with respect to the tax status of the Securities, or other material events affecting the tax status of the Securities;

7. Modification to rights of holders of the Securities, if material;

8. Securities calls, if material, and tender offers;

9. Defeasances;

10. Release, substitution or sale of property securing repayment of the Securities, if material;

11. Rating changes;

12. Bankruptcy, insolvency, receivership or similar event of the Issuer;

13. The consummation of a merger, consolidation, or acquisition involving the Issuer or the sale of all or substantially all of the assets of the Issuer, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; and

-4- QB\32023121.1

14. Appointment of a successor or additional trustee or the change of name of a trustee, if material.

For the purposes of the event identified in subsection (a)12. above, the event is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent or similar officer for the Issuer in a proceeding under the U.S. Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the Issuer, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the Issuer.

(b) When a Material Event occurs, the Issuer shall, in a timely manner not in excess of ten business days after the occurrence of the Material Event, file a notice of such occurrence with the MSRB. Notwithstanding the foregoing, notice of Material Events described in subsections (a) (8) and (9) need not be given under this subsection any earlier than the notice (if any) of the underlying event is given to holders of affected Securities pursuant to the Resolution.

(c) Unless otherwise required by law, the Issuer shall submit the information in the format prescribed by the MSRB, as described in Section 1(b) of this Disclosure Certificate.

Section 6. Termination of Reporting Obligation. The Issuer's obligations under the Resolution and this Disclosure Certificate shall terminate upon the legal defeasance, prior redemption or payment in full of all the Securities.

Section 7. Issuer Contact; Agent. Information may be obtained from the Issuer Contact. Additionally, the Issuer may, from time to time, appoint or engage a dissemination agent to assist it in carrying out its obligations under the Resolution and this Disclosure Certificate, and may discharge any such agent, with or without appointing a successor dissemination agent.

Section 8. Amendment; Waiver. Notwithstanding any other provision of the Resolution or this Disclosure Certificate, the Issuer may amend this Disclosure Certificate, and any provision of this Disclosure Certificate may be waived, if such amendment or waiver is supported by an opinion of nationally recognized bond counsel to the effect that such amendment or waiver would not, in and of itself, cause the undertakings to violate the Rule. The provisions of this Disclosure Certificate constituting the Undertaking or any provision hereof, shall be null and void in the event that the Issuer delivers to the MSRB an opinion of nationally recognized bond counsel to the effect that those portions of the Rule which require this Disclosure Certificate are invalid, have been repealed retroactively or otherwise do not apply to the Securities. The provisions of this Disclosure Certificate constituting the Undertaking may be amended without the consent of the holders of the Securities, but only upon the delivery by the Issuer to the MSRB of the proposed amendment and an opinion of nationally recognized bond counsel to the effect that such amendment, and giving effect thereto, will not adversely affect the compliance of this Disclosure Certificate and by the Issuer with the Rule.

-5- QB\32023121.1

Section 9. Additional Information. Nothing in this Disclosure Certificate shall be deemed to prevent the Issuer from disseminating any other information, using the means of dissemination set forth in this Disclosure Certificate or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Material Event, in addition to that which is required by this Disclosure Certificate. If the Issuer chooses to include any information in any Annual Report or notice of occurrence of a Material Event in addition to that which is specifically required by this Disclosure Certificate, the Issuer shall have no obligation under this Disclosure Certificate to update such information or include it in any future Annual Report or notice of occurrence of a Material Event.

Section 10. Default. (a) Except as described in the Final Official Statement, in the previous five years, the Issuer has not failed to comply in all material respects with any previous undertakings under the Rule to provide annual reports or notices of material events.

(b) In the event of a failure of the Issuer to comply with any provision of this Disclosure Certificate any holder of the Securities may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the Issuer to comply with its obligations under the Resolution and this Disclosure Certificate. A default under this Disclosure Certificate shall not be deemed an event of default with respect to the Securities and the sole remedy under this Disclosure Certificate in the event of any failure of the Issuer to comply with this Disclosure Certificate shall be an action to compel performance.

Section 11. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of the Issuer, the Participating Underwriters and holders from time to time of the Securities, and shall create no rights in any other person or entity.

IN WITNESS WHEREOF, we have executed this Certificate in our official capacities effective the 2nd day of February, 2015.

_____________________________ Lee Schlenvogt Chairperson

(SEAL)

_____________________________ Julianne B. Winkelhorst County Clerk

APPENDIX C

FORM OF LEGAL OPINION

QB\32021846.1

Quarles & Brady LLP 411 East Wisconsin Avenue

Milwaukee, WI 53202

February 2, 2015

Re: Ozaukee County, Wisconsin ("Issuer") $7,150,000 General Obligation Refunding Bonds, dated February 2, 2015 ("Bonds")

We have acted as bond counsel to the Issuer in connection with the issuance of the Bonds. In such capacity, we have examined such law and such certified proceedings, certifications, and other documents as we have deemed necessary to render this opinion.

Regarding questions of fact material to our opinion, we have relied on the certified proceedings and other certifications of public officials and others furnished to us without undertaking to verify the same by independent investigation.

The Bonds are numbered from R-1 and upward; bear interest at the rates set forth below; and mature on March 1 of each year, in the years and principal amounts as follows:

Year Principal Amount Interest Rate

2015 $165,000 2.00% 2016 35,000 2.00 2017 35,000 2.00 2018 35,000 2.00 2019 580,000 3.00 2020 600,000 3.00 2021 620,000 3.00 2022 645,000 3.00 2023 670,000 3.00 2024 695,000 3.00 2025 725,000 3.00 2026 750,000 3.50 2027 780,000 3.50 2028 815,000 3.50

Interest is payable semi-annually on March 1 and September 1 of each year commencing on March 1, 2015.

The Bonds maturing on March 1, 2024 and thereafter are subject to redemption prior to maturity, at the option of the Issuer, on March 1, 2023 or on any date thereafter. Said Bonds are redeemable as a whole or in part, and if in part, from maturities selected by the Issuer and within each maturity, by lot, at the principal amount thereof, plus accrued interest to the date of redemption.

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We further certify that we have examined a sample of the Bonds and find the same to be in proper form.

Based upon and subject to the foregoing, it is our opinion under existing law that:

1. The Bonds have been duly authorized and executed by the Issuer and are valid and binding general obligations of the Issuer.

2. All the taxable property in the territory of the Issuer is subject to the levy of ad valorem taxes to pay principal of, and interest on, the Bonds, without limitation as to rate or amount. The Issuer is required by law to include in its annual tax levy the principal and interest coming due on the Bonds except to the extent that necessary funds have been irrevocably deposited into the debt service fund account established for the payment of the principal of and interest on the Bonds.

3. The interest on the Bonds is excludable for federal income tax purposes from the gross income of the owners of the Bonds. The interest on the Bonds is not an item of tax preference for purposes of the federal alternative minimum tax imposed by Section 55 of the Internal Revenue Code of 1986, as amended (the "Code") on corporations (as that term is defined for federal income tax purposes) and individuals. However, for purposes of computing the alternative minimum tax imposed on corporations, the interest on the Bonds is included in adjusted current earnings. The Code contains requirements that must be satisfied subsequent to the issuance of the Bonds in order for interest on the Bonds to be or continue to be excludable from gross income for federal income tax purposes. Failure to comply with certain of those requirements could cause the interest on the Bonds to be included in gross income retroactively to the date of issuance of the Bonds. The Issuer has agreed to comply with all of those requirements. The opinion set forth in the first sentence of this paragraph is subject to the condition that the Issuer comply with those requirements. We express no opinion regarding other federal tax consequences arising with respect to the Bonds.

In rendering our opinion regarding exemption from present federal income taxes, we have relied on the report of Grant Thornton LLP, Certified Public Accountants of Minneapolis, Minnesota, as to, among other matters, the yield on the Bonds and investments relative to the refunding transaction.

We express no opinion regarding the accuracy, adequacy, or completeness of the Official Statement or any other offering material relating to the Bonds. Further, we express no opinion regarding tax consequences arising with respect to the Bonds other than as expressly set forth herein.

The rights of the owners of the Bonds and the enforceability thereof may be subject to bankruptcy, insolvency, reorganization, moratorium and similar laws affecting creditors' rights and may be subject to the exercise of judicial discretion in accordance with general principles of equity, whether considered at law or in equity.

This opinion is given as of the date hereof, and we assume no obligation to revise or supplement this opinion to reflect any facts or circumstances that may hereafter come to our attention, or any changes in law that may hereafter occur.

QUARLES & BRADY LLP