Assignment 1: Financial Statement / Audit Report Review

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2018CAFRCobbCounty.pdf

COBB COUNTY GOVERMENT

MARIETTA, GEORGIA

COMPREHENSIVE ANNUAL FINANCIAL REPORT

For Fiscal Year Ended September 30, 2018

COBB COUNTY, GEORGIA COMPREHENSIVE ANNUAL FINANCIAL REPORT

For the Fiscal Year Ended September 30, 2018

William Volckmann Director of Finance/Comptroller

Cobb County Finance Department

100 Cherokee Street, Marietta, Georgia 30090

ACWORTH

KENNESAW

MARIETTA

POWDER SPRINGS

SMYRNA

ATLANTA

AUSTELL

HARTSFIELD AIRPORT

COBB

Fulton

Douglas

Gwinnett

DeKalb

Rockdale

Clayton

Henry

Fayette

Fulton

Metro Atlanta

COBB COUNTY, GEORGIA

COMPREHENSIVE ANNUAL FINANCIAL REPORT

SEPTEMBER 30, 2018 ____________________________________________________________________________________________

____________________________________________________________________________________________

TABLE OF CONTENTS

INTRODUCTORY SECTION

Transmittal Letter ..................................................................................................................................... i-vii

Certificate of Achievement in Financial Reporting ................................................................................... viii

General Government Organization Chart .................................................................................................... ix

County Officials ............................................................................................................................................ x

Department of Finance................................................................................................................................. xi

FINANCIAL SECTION

Independent Auditor’s Report ................................................................................................................... 1-3

Management’s Discussion and Analysis ................................................................................................. 4-17

Basic Financial Statements:

Government-Wide Financial Statements:

Statement of Net Position ..................................................................................................................... 18

Statement of Activities ......................................................................................................................... 19

Governmental Fund Financial Statements:

Balance Sheet – Governmental Funds ................................................................................................. 20

Reconciliation of the Governmental Balance Sheet to the Statement of Net Position ........................ 21

Statement of Revenues, Expenditures and Changes in Fund Balances –

Governmental Funds ...................................................................................................................... 22

Reconciliation of the Statement of Revenues, Expenditures and

Changes in Fund Balances of Governmental Funds to the

Statement of Activities .................................................................................................................. 23

Proprietary Fund Financial Statements:

Statement of Net Position – Proprietary Funds ............................................................................... 24-25

Statement of Revenues, Expenses and Changes in Fund Net Position –

Proprietary Funds ........................................................................................................................... 26

Statement of Cash Flows – Proprietary Funds ................................................................................ 27-28

Fiduciary Fund Financial Statements:

Statement of Fiduciary Net Position – Fiduciary Funds ...................................................................... 29

Statement of Changes in Fiduciary Net Position – Fiduciary Funds ................................................... 30

Notes to Financial Statements ......................................................................................................... 31-78

Required Supplemental Information:

Schedule of Changes in Net Pension Liability and Related Ratios ..................................................... 79

Schedule of Pension Contributions ...................................................................................................... 80

Schedule of Pension Investment Returns ............................................................................................. 81

Notes to Required Supplementary Information – Pension ................................................................... 82

Schedule of Changes in Net OPEB Liability and Related Ratios ........................................................ 83

Schedule of OPEB Contributions ......................................................................................................... 84

COBB COUNTY, GEORGIA

COMPREHENSIVE ANNUAL FINANCIAL REPORT

SEPTEMBER 30, 2018 ____________________________________________________________________________________________

____________________________________________________________________________________________

TABLE OF CONTENTS

Schedule of OPEB Investment Returns ............................................................................................... 85

Schedule of Revenues, Expenditures and Changes in Fund Balances –

Budget and Actual (Budgetary Basis) – General Fund ................................................................. 86 12-13

Schedule of Revenues, Expenditures and Changes in Fund Balances –

Budget and Actual (Budgetary Basis) – Fire District Special Revenue Fund ............................... 87

Nonmajor Funds:

Nonmajor Governmental Fund Descriptions .................................................................................. 88-89

Combining Balance Sheet – All Nonmajor Governmental Funds ....................................................... 90

Combining Statement of Revenues, Expenditures and Changes in Fund Balances –

All Nonmajor Governmental Funds .............................................................................................. 91

Combining Balance Sheet – Total Nonmajor Special Revenue Funds ........................................... 92-93

Combining Statement of Revenues, Expenditures and Changes in Fund Balances –

Total Nonmajor Special Revenue Funds .................................................................................. 94-95

Schedule of Revenues, Expenditures and Changes in Fund Balance –

Budget and Actual – CMCEHA Debt Service Fund ..................................................................... 96

Schedule of Revenues, Expenditures and Changes in Fund Balance –

Budget and Actual - BOC Debt Service Fund ............................................................................... 97

Schedule of Revenues, Expenditures and Changes in Fund Balance –

Budget and Actual (Budgetary Basis) – Law Library Special Revenue Fund .............................. 98

Schedule of Revenues, Expenditures and Changes in Fund Balance –

Budget and Actual – Community Services Special Revenue Fund ............................................... 99

Schedule of Revenues, Expenditures and Changes in Fund Balance –

Budget and Actual – Hotel/Motel Tax Special Revenue Fund ................................................... 100

Schedule of Revenues, Expenditures and Changes in Fund Balance –

Budget and Actual (Budgetary Basis) – Emergency 911 Special Revenue Fund ....................... 101

Schedule of Revenues, Expenditures and Changes in Fund Balance –

Budget and Actual (Budgetary Basis) – Parking Deck Facility Special Revenue Fund ............. 102 93

Schedule of Revenues, Expenditures and Changes in Fund Balance –

Budget and Actual – 800 MHz Special Revenue Fund ............................................................... 103

Schedule of Revenues, Expenditures and Changes in Fund Balance –

Budget and Actual – Street Light District Special Revenue Fund .............................................. 104

Schedule of Revenues, Expenditures and Changes in Fund Balance –

Budget and Actual – Six Flags Special Service District Special Revenue Fund ........................ 105

Schedule of Revenues, Expenditures and Changes in Fund Balance –

Budget and Actual – Cumberland Special Service District 1 Special Revenue Fund ................. 106

Schedule of Revenues, Expenditures and Changes in Fund Balance –

Budget and Actual– Cumberland Special Service District 2 Special Revenue Fund .................. 107

Schedule of Revenues, Expenditures and Changes in Fund Balance –

Budget and Actual – CMCEHA Special Revenue Fund ............................................................. 108

Schedule of Revenues, Expenditures and Changes in Fund Balance –

Budget and Actual – Stadium Capital Maintenance Special Revenue Fund ............................... 109

COBB COUNTY, GEORGIA

COMPREHENSIVE ANNUAL FINANCIAL REPORT

SEPTEMBER 30, 2018 ____________________________________________________________________________________________

____________________________________________________________________________________________

TABLE OF CONTENTS

Combining Statement of Net Position – Nonmajor Business-Type Enterprise Funds ............... 110-111

Combining Statement of Revenues, Expenses and Changes in Fund Net Position –

Nonmajor Business-Type Enterprise Funds ................................................................................ 112 97-9898

Combining Statement of Cash Flows – Nonmajor Business-Type Enterprise Funds ................. 113-114

Combining Statements of Fiduciary Net Position- Trust Funds ................................................ 115-116

Combining Statement of Changes in Assets and Liabilities –

Agency Funds ....................................................................................................................... 117-118

Supplemental Information:

Schedule of Revenues, Expenditures and Changes in Fund Balance –

Budget and Actual (Budgetary Basis) – General Fund ........................................................ 119-125

STATISTICAL SECTION

Financial Trends:

Statistical Section Description .................................................................................................................. 126

Net Position by Component ...................................................................................................................... 127

Changes in Net Position ..................................................................................................................... 128-129

Fund Balances, Governmental Funds ....................................................................................................... 130

Changes in Fund Balance, Governmental Funds ............................................................................... 131-132

Revenue Capacity:

Assessed Value and Actual Value ............................................................................................................ 133

Direct and Overlapping Property Tax Rates ............................................................................................. 134

Principal Property Tax Payers .................................................................................................................. 135

Property Tax Levies and Collections ........................................................................................................ 136

Largest Retail Water System Accounts .................................................................................................... 137

Existing Water Rates ................................................................................................................................ 138

Existing Sewer Rates ................................................................................................................................ 139

Fire Sprinkler Service Charges ................................................................................................................. 140

Rate Comparison With Other Utilities ..................................................................................................... 141

Wholesale Sewer Rates ............................................................................................................................. 142

Debt Capacity:

Ratios of General Bonded Debt Outstanding ........................................................................................... 143

Direct and Overlapping Governmental Activities Debt ........................................................................... 144

Legal Debt Margin Information ................................................................................................................ 145

Ratios of Outstanding Debt by Type ........................................................................................................ 146

Revenue Bond Coverage ........................................................................................................................... 147

Annual Debt Service Requirements .......................................................................................................... 148

Demographic and Economic Information:

Demographic and Economic Statistics ..................................................................................................... 149

Principal Employers .................................................................................................................................. 150

Building Permits and Construction ........................................................................................................... 151

Commercial and Savings Bank Deposits .................................................................................................. 152

COBB COUNTY, GEORGIA

COMPREHENSIVE ANNUAL FINANCIAL REPORT

SEPTEMBER 30, 2018 ____________________________________________________________________________________________

____________________________________________________________________________________________

TABLE OF CONTENTS

Operating Information:

Full Time Equivalent Cobb County Government Employees by Function .............................................. 153

Operating Indicators by Function ............................................................................................................. 154

Capital Asset Statistics by Function ......................................................................................................... 155

Existing Authority Water & Sewer Treatment System Capacities ........................................................... 156

Historical System Accounts ...................................................................................................................... 157

COMPLIANCE SECTION

Schedule of Projects Constructed with Special Sales Tax Proceeds ........................................................ 158

Water and Sewer Enterprise Fund Comparative Statements of Revenues and Expenses ........................ 159

COMPREHENSIVE ANNUAL FINANCIAL REPORT Return to Table of Contents

Cobb County Finance Department, 100 Cherokee Street, Marietta, Georgia 30090

INTRODUCTORY SECTION

The Introductory Section includes a transmittal letter from the Director of Finance/Comptroller, a general government organization chart and a list of principal officials. The transmittal letter is intended to provide users with general information of the County’s structure, the County’s current and future economic picture as well as its major initiatives and financial accomplishments.

From the desk of:

WILLIAM VOLCKMANN

Director/COMPTROLLER

William.volckmann@cobbcounty.org

COBB COUNTY FINANCE DEPARTMENT

www.cobbcounty.org/finance

100 Cherokee Street, Suite 400

Marietta, GA 30090

Phone: 770.528.1571

Fax: 770.528.1507

Cobb County…Expect the Best!

Equal Opportunity Employer www.cobbcounty.org

March 22, 2019

The Honorable Mike Boyce, Chairman

Members of the Cobb County Board of Commissioners

And Citizens of Cobb County

Ladies and Gentlemen:

The Comprehensive Annual Financial Report (CAFR) of Cobb County, Georgia for the fiscal year

ended September 30, 2018, is submitted herewith. Georgia state law requires that every general-

purpose local government publish within six months of the close of each fiscal year a complete set

of audited financial statements.

Responsibility for both the accuracy of the data and the completeness and fairness of presentation,

including disclosures, rests with the County. We believe the data presented is accurate in all

material respects and that it is presented in a manner designed to fairly set forth the financial

position and results of operations of the County as measured by the financial activity of its various

funds. All disclosures necessary to enable interested citizens to gain a reasonable understanding of

the County’s financial activities have been included.

Nichols, Cauley & Associates, LLC, Certified Public Accountants, have issued an unmodified

opinion on the Cobb County financial statements for the fiscal year ended September 30, 2018.

The independent auditor’s report is located at the front of the financial section of this report.

Management’s discussion and analysis (MD&A) immediately follows the independent auditor’s

report and provides a narrative introduction, overview, and analysis of the basic financial

statements. MD&A complements this letter of transmittal and should be read in conjunction with

it.

Cobb County receives financial assistance through various federal grant programs. As required by

the Single Audit Act of 1984, P.L. 98-502 and amendments of 1996 and Title 2 U.S. Code of

Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit

Requirements for Federal Awards (“Uniform Guidance”), audits of programs receiving federal

grants have been performed for the fiscal year ended September 30, 2018. The required reports on

supplementary information, compliance, internal controls, and various supplementary schedules

are included under the Compliance Section.

Profile of the Government

Cobb County, Georgia, is a healthy, vibrant community located twenty miles northwest of Atlanta

along the scenic Chattahoochee River. Cobb and neighboring Cherokee County were part of the

Creek and Cherokee Indian Territories when the first settlers arrived in the early 1800’s. The North

Georgia Gold Rush brought English and Scotch-Irish settlers in search of riches and farmland. As

trade began, enough homesteaders were attracted to the area for the City of Smyrna, one of Cobb’s

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six municipalities, to be settled in 1831. Cobb County was officially organized in December 3,

1832 and named for Thomas Willis Cobb, a United States Senator, Congressman and Superior

Court judge. The County seat, Marietta, was officially recognized in 1834. The two cities and the

county grew substantially following Reconstruction, especially after World War II with the

building of Rickenbacker Field and the Bell Bomber Aircraft Plant – now Dobbins Air Reserve

Base and the Lockheed Martin Aeronautical Systems Company.

Cobb’s population has grown 27% since 2000 when approximately 607,751 people resided in the

County. Based on the Woods & Poole Economic 2018 Data Pamphlet, Cobb’s population is

estimated to be 773,930.

A five-member Board of Commissioners governs Cobb County. The Board is comprised of one

chairman, elected county wide, and four commissioners, each elected from a separate commission

district serving four year staggered terms. A County Manager, who is appointed by and responsible

to the Board of Commissioners, directs the daily operation of the County. Services provided to

approximately 773,930 Cobb citizens residing in the 340.2 square mile area include: public safety (fire, EMS, police, 911 emergency, animal control, courts and sheriff and detention operations),

community development, community services, transportation, and other general governmental

services. The County also provides water and sewer. After many years of providing solid waste

disposal services to the public, this function was privatized in 2009.

The incorporated areas of Cobb County consist of six municipalities – the cities of Acworth,

Austell, Kennesaw, Marietta, Powder Springs and Smyrna. A mayor and city council govern each

municipality.

The financial statements contained herein include all activities and functions of Cobb County that

are under the jurisdiction of the Board of Commissioners, as set forth in state and local law.

Additionally, three component units are included in these financial statements because of its

operational and financial relationships to the County. The Cobb-Marietta Coliseum and Exhibit

Hall Authority, a blended component unit, operates a multi-use exhibit hall and convention facility

in the County. The South Cobb Redevelopment Authority (SCRA), a blended component unit,

purposes is to revitalize and redevelop areas that have been underinvested or underutilized in the

past. The overall intent is to promote and create favorable location for trade, commerce, industry,

and employment opportunities. The Cobb County Board of Health provides a variety of health

related services in the County. Additional information on these legally separate entities can be

found under the Basic Financial Statements section.

Local Economy

Cobb County is part of a very select group that includes less than 1% of counties nationwide to

have achieved a Triple-Triple A credit rating, and this achievement has been accomplished for the

twenty second consecutive year. In 1995, Moody’s Investor Services awarded Cobb its first AAA

rating citing strong economic growth and strong fiscal management. Cobb was the first county in

Moody’s eight-state southeast region to achieve this highly coveted rating. In April of 1996, Fitch

Investors also awarded Cobb with their top rating AAA. Cobb was also the first county in Fitch’s

southeast region to achieve their AAA rating. Standard and Poor’s upgraded Cobb to AAA in June

of 1997. The Triple A rating is the most highly acclaimed indicator of the overall financial strength

of a community. These independent ratings produce significant interest savings and verify that

Cobb’s sound fiscal policies and conservative management philosophy will guide Cobb into the

future.

Thanks in large part to the foresight and stewardship of County leadership, Cobb County continues

to prosper. Cobb employs more than 540,400 within its boundaries and currently, there are

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approximately 30,000 licensed businesses. The County’s unemployment rate was 3.2% which is

lower than the State of Georgia (4.0%) and the United States (3.8%).

The County is highly-regarded for its pro-business environment, a product of careful planning,

cooperation with other local governments, and progressive leadership which, over the years, has

generated a strong and diverse economy that is not dependent on any one industry or sector. Major

national and international companies are represented in the County. Some of the top employers in

Cobb County include, the Home Depot, Cobb County Schools, WellStar, Lockheed Martin and

Kennesaw State University to name a few.

On November 11, 2013, the Atlanta Braves organization announced their partnership with the

County that will bring the new world-class Major League Baseball stadium and integrated mixed-

use development to Cobb County. The construction of the new stadium began in the second half of

2014 and was be completed by Opening Day 2017. This partnership completed its second

successful year of operation. 2018 was the first full year impact on the tax digest, as several of the

properties in Battery development were still valued at 50% in 2017.

According to Woods & Poole Economics (2018 Data Pamphlet), the Atlanta Georgia Metro

Statistical Area (MSA) will generate the second largest number of jobs of any MSA in the Southeast

over the next three decades. Atlanta is a regional center of trade and commerce for much of the

Southeast outside of Florida. Employment is expected to increase in transportation,

communications, public utilities, retail trade, finance, insurance, and real estate. Hartsfield-Jackson

International Airport and an extensive road program have made the Atlanta area a hub for

distribution facilities and a regional center for commerce and trade in the Southeast.

Long-term Financial Planning

Cobb County is recognized as a leader both nationally and locally. Nationally, the three premier

bond rating agencies have awarded the County their highest ratings triple A. Cobb’s Water System

is the highest rated independent (non-general obligation backed) water system in the nation as they

also have a Triple-Triple A rating.

In November 2014, voters approved the Special Purpose Local Option Sales Tax (SPLOST). This

one cent sales tax program, which is significantly supported by non-residents, funds various

improvements around the County. The SPLOST tax will be collected from January 1, 2016 to

11%

8%

5%

3%

6%

3%

6%10%

48%

Financial/Insurance/ Real Estate Government

Manufacturing

Miscellaneous

Construction

Transportation & Utilities

Wholesale

Retail

Sevices

Employment by Job Category Source: Woods & Poole, 2018

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December 31, 2021. A complete list of the projects and further details regarding the program is

available at the website: www.cobbsplost2016.org. Since this SPLOST began, the improvements

total: $137.6 million Transportation Projects; $54.2 million Parks, Libraries and Senior Service

Projects Projects; $11.9 million Support Services Projects, $7.8 million Public Health Projects, and

$62.2 million for Public Safety Projects. Additionally, $97.9 million has been disbursed to the six

municipalities within Cobb County. Total revenue generated for the SPLOST program since this

SPLOST began is $468.6 million with expenditures totaling $371.6 million.

In March 2011, voters approved the Special Purpose Local Option Sales Tax (SPLOST) that ceased

collections in December 2015. Since this SPLOST began, the improvements total: $305.9 million

Transportation Projects; $81.8 million Parks Projects; $20.1 million Support Services Projects and

$11.4 million for Public Safety Projects. Additionally, $140.6 million has been disbursed to the six

municipalities within Cobb County. Total revenue generated for the SPLOST program since this

SPLOST began is $611.9 million with expenditures totaling $559.8 million.

In September 2005, voters approved a one cent Special Purpose Local Option Sales Tax (SPLOST)

that ceased collections in December 2011. Since this SPLOST began, the improvements total:

$519.8 million Transportation Projects; $200.3 million Public Safety Projects, and $120.8 million

has been disbursed to the six municipalities within Cobb County. Total revenue generated for the

SPLOST program since this SPLOST began is $860.9 million with expenditures totaling $840.9

million.

The Debt Service Fund reflects the accumulation of monies for, and the payment of, principal and

interest on all General Obligation Debt other than that issued specifically for enterprise activities.

The following ratios of net bonded debt per capita are useful indicators of the County’s strong debt

position:

Amount Debt per Capita Debt to Actual

Value

Debt to Assessed

Value

Net Bonded Debt $16,344,830 $21.12 0.02% 0.04%

Total General

Obligation Direct Debt

$23,250,565 $30.04 0.02% 0.06%

Total Primary

Government Debt

$749,848,995 $968.88 0.79% 1.97%

Outstanding General Obligation Bonds at September 30, 2018 totaled $21,090,000.

Cobb’s legal General Obligation Bond debt limitation by state law is 10% of the taxable digest or

$3,808,814,959. Cobb County currently is utilizing 0.37% of this limitation with its $21,090,000

outstanding General Obligation Bonds.

The available assets of the various funds are pooled to the extent possible for investment purposes.

Investments are made in accordance with state law and the County’s Investment Policy that requires

bank balances be 110% collateralized and all investments be acquired on a “delivery vs. payment”

basis, thereby providing maximum protection to the County. The Investment Policy also prescribes

selection criteria for financial institutions, investment instruments and maturities of investments.

On March 13, 2007, the Cobb County Board of Commissioners (BOC) authorized the Water

System to submit an application to (Georgia Environmental Facilities Authority) GEFA for partial

funding of the South Cobb Tunnel construction and related services. This project entails

construction of an approximately 30,000 foot long, deep tunnel with a 27-foot excavation diameter;

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several connecting tunnels 6 to 10 feet in diameter ranging from 500 to 3,200 feet in length, and a

130 mgd lift station at the South Cobb Water Reclamation Facility. The initial loan in the amount

of $35 million was authorized by the BOC on March 11, 2008, and the second loan in the amount

of $35 million was authorized in FY2009. Two additional loans in the amount of $10 million and

$25 million were requested in FY 2010. Two additional loans in the amount of $25 million and

$35 million were requested in FY 2011 [however, only $49.9 million was received in

FY2011]. One additional loan in the amount of $35 million was requested in FY 2012 [however,

only $27.1 million was received in FY2012]. The length of the project will be approximately 6

years with each loan having a 20 year term. The current outstanding balance of these loans from

GEFA, as of September 30, 2018, is $120,368,698.

Major Initiatives

In order to continue to compete in a global economy and ensure continued economic growth, Cobb

County must continue to address the public infrastructure that effectively serves the demands for

transportation and air travel, water supply, wastewater treatment and waste disposal. To address

these challenges, along with other quality of life issues, Cobb aggressively developed and adopted

its first 5-year rolling Capital Improvement Program (CIP) in 1990. Since that time, Cobb County

has successfully completed and implemented the Cobb County Greenprint. This is a Geographic

Information Systems modeling program that allows staff to manage and prioritize the remaining

undeveloped land and sensitive habitat in the county.

County-Owned Transit System The County’s bus service continues to meet its goals of providing

the citizens of Cobb County with a safe, reliable, attractive and cost effective public transportation

system. In 2018, CobbLinc riders took nearly 2.5 million trips. CobbLinc continues with the

Breeze Fare Collection System which allows passengers to be able to easily transfer between

CobbLinc and MARTA. In 2018 CobbLinc replaced 14 buses with new Wi-Fi-equipped buses and

continue to add and update routes, providing better access for more people than ever before.

SPLOST Projects Every project funded by the 2011 and 2016 SPLOSTs will improve the quality

of life in Cobb County by maintaining, improving and enhancing County parks, transportation,

infrastructure, public safety, libraries, senior services, judicial, and public health facilities.

SPLOST - Transportation With the 2011 and 2016 SPLOST programs proceeding on schedule and

on track, improvements to Cobb County's transportation system steadily move along. The 2011

SPLOST program to date has approximately 208 transportation projects that are underway or

completed while the 2016 SPLOST program has 182 transportation projects that are underway or

completed.

SPLOST Transportation Project Highlights from 2018:

Transportation had 40% of the 2016 SPLOST projects completed, 13% in the construction phase,

33% in design / engineering phase, and 13% are future projects.

 Countywide Resurfacing Projects $17.1M

 Windy Hill Road / Terrell Mill Road Connector $7.6M

 Completed 12 Bridge Rehabilitation Projects

SPLOST – Public Safety Public Safety enhancements include adding apparatus/vehicles to increase

response capability through-out the county, site acquisition for the new Public Safety Headquarters,

as well as the renovation of existing facilities.

SPLOST Public Safety Project Highlights from 2018:

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 Site Acquisition of the New Public Safety Headquarters $13.4M

 Mobile Command Unit & Airport Fire Fighting Unit

SPLOST –Public Services: Funding for these projects will be used for parks, library, and senior

center improvements to benefit the citizens of Cobb County.

SPLOST Public Service projects completed in 2018:

Public Services had 58% of the 2016 SPLOST projects completed, 15% in the construction phase,

18% in design / engineering phase, and 9% are future projects.

 Green Meadows Preserve

 Mabry Park 85% Complete

 Mable House Amphitheater 25% Complete

Relevant Financial Policies

Cobb County’s goals were developed within the framework of the Financial Policies established

by the County that provide a sound basis for future financial planning and conservative

management. Briefly stated, they include (1) a balanced annual operating budget, (2) a stable and

diversified revenue structure, (3) maintenance of adequate reserves and designations of fund

balances, (4) a multi-year capital improvements program, and (5) debt and investment policies that

ensure judicious management of the County’s credit and available funds.

In developing and evaluating the County’s accounting system, consideration is given to the

adequacy of internal accounting controls. Internal accounting controls are designed to provide

reasonable, but not absolute, assurance regarding: (1) the safeguarding of assets against loss from

unauthorized use or disposition; and (2) the reliability of financial records for preparing financial

statements and maintaining accountability for assets. The concept of reasonable assurance

recognizes that: (1) the cost of control should not exceed the benefits likely to be derived; and (2)

the evaluation of costs and benefits requires estimates and judgments by management.

All internal control evaluations occur within the above framework. We believe the County’s

internal accounting controls adequately safeguard assets and provide reasonable assurance of

proper recording of financial transactions.

Budgetary control is maintained at the sub-function level by the encumbrance of estimated purchase

amounts before the release of purchase orders to vendors. Purchase orders that result in an overrun

of sub-function balances are not released until additional appropriations are made available. Open

encumbrances are reported within restricted, committed, or assigned fund balances at year-end for

governmental funds.

Awards and Acknowledgements

The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for

Excellence in Financial Reporting to the County for its Comprehensive Annual Financial Report

for the fiscal year ended September 30, 2017. This represented the 15th consecutive year that the

County has received this prestigious award. In order to be awarded a Certificate of Achievement,

the County must publish an easily readable and efficiently organized Comprehensive Annual

Financial Report. This report must satisfy both generally accepted accounting principles and

applicable legal requirements.

A Certificate of Achievement is valid for a period of one year only. We believe that our current

Comprehensive Annual Financial Report continues to meet the Certificate of Achievement

Program’s requirements. We are submitting it to GFOA to determine its eligibility for another

certificate.

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In addition, the County received its 20th consecutive GFOA Award for Distinguished Budget

Presentation for its biennial operating budget which was presented in the FY 17/18 Biennial Budget

document. To qualify for the Distinguished Budget Presentation Award, the County’s budget

document must be reviewed by several independent GFOA members and rated as proficient in

several categories as a policy document, financial plan, operational guide and a communications

device.

The Water System Fund received several awards throughout FY18. The following water

reclamation facilities received platinum awards from the Georgia Association of Water

Professionals: Northwest, Noonday, South Cobb, and R.L. Sutton.

We wish to acknowledge the outstanding efforts of the Finance Department staff in the preparation

of this report. Their dedication and contributions to the preparation of this report, along with the

direction and support of the County Manager’s Office, form the basis for responsible and

progressive financial management in Cobb County.

We also wish to acknowledge the valuable contribution of the Board of Commissioners in its

guidance of the financial affairs of the County.

Most of all, we would like to thank the people of Cobb County. Their noteworthy level of

community involvement, extending far beyond personal interest, continues to make Cobb County

an exciting place in which to live and work.

Respectfully submitted,

William Volckmann

Finance Director / Comptroller

Government Finance Officers Association

Certificate of Achievement for Excellence

in Financial Reporting

Presented to

Cobb County

Georgia

For its Comprehensive Annual Financial Report

for the Fiscal Year Ended

September 30, 2017

Executive Director/CEO

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Cobb County Government

Elected Office

Department Director

Board of Commissioners

County Manager

Public Safety Agency Director

Superior Court of Georgia Cobb Judicial Circuit

District Attorney

Superior Court

Judges

Juvenile Court

Superior Court Clerk

State Court Judges

Solicitor General

State Court Clerk

Probate Court Judge Magistrate Court

State Court of Cobb County

Sheriff Tax

Commissioner

County Attorney

County Clerk

Public Services Agency Director

Support Services Agency Director

Water System Agency Director

Community Development

Agency Director

Transportation Agency Director

Police

Public Library System

Parks, Rec & Cultural Affairs

Medical Examiner

Senior Services

UGA Extension

Service

Information Services

Property Mgt.

Purchasing

Appointed by the Board of Commissioners

K E Y Elected Court Office

Agency Director

County Manager’s Staff

For budget purposes only.

Appointed Court/ Office

Liaison responsibilities only.

Fire & Emergency

Services

Tax Assessor

Human ResourcesCommunications

Animal Control

911 Emergency

Govt Service Centers

Finance / Economic Develop.

ORGANIZATIONAL CHART

Elections

Internal Audit

KCB / Solid Waste

(Apr 2017)

Fleet Management

Cobb County Airport

CobbLinc

Cobb EMA

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COBB COUNTY BOARD OF COMMISSIONERS

County Manager Rob Hosack

770-528-2612 robert.hosack @cobbcounty.org

Assistant: Renee Morris

100 Cherokee St., Suite 300 Marietta, GA 30090 • 770.528.2600 • fax:770.528.2606 • www.CobbCounty.org

Chairman Mike Boyce 770-528-3305 mike.boyce@cobbcounty.org Assistants: Millie Rogers and Janet Haldeman

District One Commissioner Bob Weatherford 770-528-3313 bob.weatherford@cobbcounty.org Assistant: Shannon Woody

District Two Commissioner Bob Ott

770-528-3316 bob.ott@cobbcounty.org

Assistant: Kim Swanson

District Three Commissioner JoAnn Birrell

770-528-3317 joann.birrell@cobbcounty.org

Assistant: Inger Eberhart

District Four Commissioner Lisa Cupid 770-528-3311 lisa.cupid@cobbcounty.org Assistants: Marva Harris and Andrea Ashmore

x

xi

Cobb County, Georgia

County Manager

Rob Hosack

Finance Department

Director of Finance/Comptroller ................................ William Volckmann

Associate Comptroller ............................................................. Buddy Tesar

Accounting Division Manager ...................................... Lindy Tisdel, CPA

Accounts Payable Division Manager ...................................... Stefani Balli

Budget Division Manager ........................................................ Susan Revill

Payroll Division Manager ................................................... Maureen Claffy

Risk Division Manager ............................................................. Brett LaFoy

COMPREHENSIVE ANNUAL FINANCIAL REPORT Return to Table of Contents

Cobb County Finance Department, 100 Cherokee Street, Marietta, Georgia 30090

FINANCIAL SECTION

The Financial Section includes the Management’s Discussion and Analysis (MD&A), the basic financial statements and Required Supplemental Information (RSI) as well as the independent auditor’s report. The MD&A is intended to provide users with a narrative introduction, overview and analysis of the financial statements. The RSI is intended to provide users with budgetary comparisons, infrastructure condition and maintenance data and pension trend data.

NICHOLS, CAULEY & ASSOCIATES, LLC 1825 Barrett Lakes Blvd, Suite 200

Kennesaw, Georgia 30144

770-422-0598 FAX 678-214-2355

kennesaw@nicholscauley.com

A t l a n t a | C a l h o u n | C a n t o n | D a l t o n | D u b l i n

K e n n e s a w | R o m e | W a r n e r R o b i n s

INDEPENDENT AUDITOR'S REPORT

The Honorable Mike Boyce, Chairman

Members of the Cobb County Board of Commissioners

Cobb County, Georgia

Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities, the business-

type activities, the aggregate discretely presented component unit, each major fund and the aggregate

remaining fund information of Cobb County, Georgia, as of and for the year ended September 30,

2018, and the related notes to the financial statements, which collectively comprise the County’s

basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in

accordance with accounting principles generally accepted in the United States of America; this

includes the design, implementation, and maintenance of internal control relevant to the preparation

and fair presentation of financial statements that are free from material misstatement, whether due to

fraud or error.

Auditor’s Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. We

conducted our audit in accordance with auditing standards generally accepted in the United States of

America and the standards applicable to financial audits contained in Government Auditing

Standards, issued by the Comptroller General of the United States. Those standards require that we

plan and perform the audit to obtain reasonable assurance about whether the financial statements are

free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures

in the financial statements. The procedures selected depend on the auditor’s judgment, including the

assessment of the risks of material misstatement of the financial statements, whether due to fraud or

error. In making those risk assessments, the auditor considers internal control relevant to the entity’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

1

effectiveness of the entity’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.

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, the

aggregate discretely presented component unit, each major fund, and the aggregate remaining fund

information of Cobb County, Georgia, as of September 30, 2018, and the respective changes in

financial position, and, where applicable, cash flows thereof and for the year then ended in

accordance with accounting principles generally accepted in the United States of America.

Emphasis of Matter

As described in Note 26, the County implemented Governmental Accounting Standards Board

(GASB) Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other

than Pensions, for the year ending September 30, 2018. This standard significantly changes the

accounting for the County’s net OPEB liability and the related disclosures. Our opinion is not

modified with respect to this matter.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the

management’s discussion and analysis, the schedule of changes in net pension liability and related

ratios, schedule of pension contributions, schedule of pension investment returns, schedule of net

changes in OPEB liability and related ratios, schedule of OPEB contributions, the schedule of OPEB

investment returns, and the General Fund and Fire District Special Revenue Fund budgetary

comparison schedules, on pages 4-17 and pages 79-87 be presented to supplement the basic financial

statements. Such information, although not a part of the basic financial statements, is required by the

Governmental Accounting Standards Board, who considers it to be an essential part of financial

reporting for placing the basic financial statements in an appropriate operational, economic, or

historical context. We have applied certain limited procedures to the required supplementary

information in accordance with auditing standards generally accepted in the United States of

America, which consisted of inquiries of management about the methods of preparing the

information and comparing the information for consistency with management’s responses to our

inquiries, the basic financial statements, and other knowledge we obtained during our audit of the

basic financial statements. We do not express an opinion or provide any assurance on the

information because the limited procedures do not provide us with sufficient evidence to express an

opinion or provide any assurance.

2

Other Information

Our audit was conducted for the purpose of forming opinions on the financial statements that

collectively comprise Cobb County, Georgia’s basic financial statements. The introductory section,

combining and individual nonmajor fund financial statements and schedules, supplemental

information, the statistical section, the schedule of projects constructed with special sales tax

proceeds, and the water and sewer fund comparative statement of revenues and expenses are

presented for purposes of additional analysis and are not a required part of the basic financial

statements. The Schedule of Projects Constructed with Special Sales Tax Proceeds is presented for

purposes of additional analysis as required by the Official Code of Georgia 48-8-121, and is not a

required part of the basic financial statements.

The combining and individual nonmajor fund financial statements and schedules, supplemental

information, the schedule of projects constructed with special sales tax proceeds, and the water and

sewer fund comparative statement of revenues and expenses are 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 combining and individual nonmajor

fund financial statements and schedules, supplemental information, the schedule of projects

constructed with special sales tax proceeds, and the water and sewer fund comparative statement of

revenues and expenses are 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 March 22, 2019, on our consideration of Cobb County, Georgia’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 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 Cobb County, Georgia’s internal control over financial reporting and compliance.

Kennesaw, GA

March 22, 2019

3

COMPREHENSIVE ANNUAL FINANCIAL REPORT Return to Table of Contents

Cobb County Finance Department, 100 Cherokee Street, Marietta, Georgia 30090

MANAGEMENT’S DISCUSSION & ANALYSIS

COBB COUNTY GOVERNMENT

Management’s Discussion and Analysis

For the Fiscal Year Ended September 30, 2018

The Management’s Discussion and Analysis of Cobb County Government’s Comprehensive Annual

Financial Report (CAFR) provides an overall narrative and analysis of the County’s financial statements for

the fiscal year ended September 30, 2018. This discussion and analysis is designed to look at the County’s

financial performance as a whole. Readers should also review the information presented here in conjunction

with additional information that we have furnished in the financial statements and the notes to the financial

statements to enhance their understanding of Cobb County’s financial performance.

Financial Highlights

Key financial highlights for FY18 are as follows:

 The County’s combined net position totaled $4.7 billion. Of this amount, $319.3 million is restricted for renewal and expansion, debt service, and various projects and programs.

 Combined revenue totaled $1.1 billion of which governmental activities totaled $814.0 million and business-type activities totaled $249.2 million.

 Overall expenses totaled $958.8 million of which governmental activities totaled $722.7 million and business-type activities totaled $236.1 million.

 At the end of September 30, 2018, governmental activities expenses exceeded program revenues, resulting in the use of $523.3 million in general revenues (mostly taxes).

 At September 30, 2018, the County’s General Fund reported an unassigned fund balance of $108.8 million.

Overview of the Financial Statements

This is the thirteenth Comprehensive Annual Financial Report (CAFR) Cobb County has issued under the

Governmental Accounting Standards Board (GASB) Statement 34. The following illustration is provided as

a guide for the financial statements:

Management's Discussion

and Analysis Required

Supplementary

Information

Government-

wide Financial

Statements

Fund Financial Statements

Governmental

Funds

Proprietary

Funds

Fiduciary

Funds

Basic

Financial

Statements

Notes to the Financial Statements

Information on Individual

Non-major Funds and Other

Supplementary Information

Supplementary

Information

4

COBB COUNTY GOVERNMENT

Management’s Discussion and Analysis

For the Fiscal Year Ended September 30, 2018

This discussion and analysis is intended to serve as an introduction to the County’s basic financial statements.

The basic financial statements are comprised of three components: 1) government-wide financial statements,

2) fund financial statements and 3) notes to the financial statements. This report also contains other

supplementary information in addition to the basic financial statements themselves.

Government-wide Financial Statements

The Government-wide financial statements provide a broad view of the County’s operations in a manner

similar to a private-sector business. The statements provide both short-term and long-term information about

the County’s financial position, which assists in assessing the economic condition at the end of the fiscal

year. These statements are prepared using the flow of economic resources measurement focus and the accrual

basis of accounting. This means the statements take into account all revenues and expenses connected with

the fiscal year even if cash involved has not been received or paid. There are two Government-wide financial

statements, the Statement of Net Position and the Statement of Activities which are described below.

The Statement of Net Position presents information on all of the County’s assets, deferred outflows of

resources, liabilities, and deferred inflows of resources, with residual of all other elements reported as net

position. Over time, increases or decreases in net position may serve as a useful indicator of whether the

financial position of the County is improving or deteriorating.

The Statement of Activities presents information showing how the County’s net position changed during the

most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise

to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported

in this statement for some items that will not result in cash flows until future fiscal periods (e.g. uncollected

taxes and earned but unused vacation leave). This statement also presents a comparison between direct

expense and program revenues for each function of the County.

Both government-wide financial statements distinguish functions of Cobb County Government that are

principally supported by taxes and intergovernmental revenues from other functions that are intended to

recover all or a significant portion of their costs through user fees and charges. The governmental activities

include general government, public safety, public works, health and welfare, culture and recreation and

housing and development. The business-type activities include Water and Sewer, Performing Arts Centre,

Solid Waste Operations, Transit, Golf Course Operations, and Galleria Specialty Shops.

The government-wide financial statements include not only Cobb County Government and its two blended

component units Cobb-Marietta Coliseum and Exhibit Hall Authority and the South Cobb Redevelopment

Authority (SCRA), but also a legally separate Board of Health for which the government is financially

accountable. Financial information for the Cobb County Board of Health are reported separately from the

financial information presented for the primary government itself.

Fund Financial Statements

A Fund is a grouping of related accounts that is used to maintain control over resources that have been

segregated for specific activities or objectives. The County, like other state and local governments, uses fund

accounting to ensure and demonstrate compliance with finance-related legal requirements.

The fund financial statements focus on individual parts of the County government, reporting the County’s

operations in more detail than the government-wide statements. All of the funds of the County can be divided

into three categories: governmental funds, proprietary funds and fiduciary funds. It is important to note that

these fund categories use different accounting approaches and should be interpreted differently.

5

COBB COUNTY GOVERNMENT

Management’s Discussion and Analysis

For the Fiscal Year Ended September 30, 2018

Governmental Funds

Most of the basic services provided by the County are financed through 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 statements, the governmental

fund financial statements focus on near-term inflows and outflows of spendable resources. They also focus

on the balances of spendable resources available at the end of the fiscal year. Such information may be useful

in evaluating the government’s near-term financing requirements. This approach is known as using the flow

of current financial resources measurement focus and the modified accrual basis of accounting. These

statements provide a detailed short-term view of the County’s finances that assists in determining whether

there will be adequate financial resources available to meet the County’s current needs.

The County maintains four governmental fund types: the General Fund; Special Revenue Funds (Fire District,

Street Light District, Law Library, Community Services, Grant, Housing and Urban Development Grant,

Hotel/Motel Tax, Emergency 911, Parking Deck Facility, Six Flags Special Service District, Cumberland

Special Service District 1, Cumberland Special Service District 2, CMCEHA, 800 MHz, and Stadium Capital

Maintenance); Debt Service Funds; and the Capital Projects Funds (Public Facilities, SPLOST, SCRA

Construction, Parks Bond Land Acquisition, CMECHA Stadium Construction and Stadium Construction).

Information is presented separately in the governmental fund balance sheet and in the governmental fund

statement of revenues, expenditures and changes in fund balances for the General Fund, Fire District Fund,

and the SPLOST Fund, all of which are considered to be major funds. Data from the other governmental

funds are combined into a single, aggregated presentation. The basic governmental fund financial statements

can be found on pages 20-23.

Proprietary Funds

Proprietary funds are used to account for activities that operate similar to those commercial enterprises found

in the private sector. Because these funds charge fees for services provided to outside customers including

local governments, they are known as enterprise funds. Proprietary funds use the accrual basis of accounting,

thus there is no reconciliation needed between the government-wide financial statements for business-type

activities and the proprietary fund financial statements.

The County has seven proprietary funds: Water and Sewer Fund, Performing Arts Centre Fund, Galleria

Specialty Shops, Solid Waste Disposal Fund, Cobblestone Golf Course Fund, Public Transit System Fund

and the Claims Internal Service Fund. The Claims Internal Service Fund, which accounts for services

performed by a central service department for other departments or agencies of the governmental unit, is

comprised of the Health and Dental Fund, the Casualty and Liability Fund, and the Workmen’s Compensation

Fund. The proprietary funds provide the same type of information as the government-wide financial

statements, only in more detail. The proprietary fund financial statements provide information for the Water

and Sewer Fund which is considered a major fund of the County. The basic proprietary fund financial

statements can be found on pages 24-28 of this report.

6

COBB COUNTY GOVERNMENT

Management’s Discussion and Analysis

For the Fiscal Year Ended September 30, 2018

Fiduciary Funds

The Fiduciary funds are used to account for assets held by the County as an agent for individuals, private

organizations, other governments and other County departments. The County is responsible for ensuring that

the assets reported in these funds are used only for their intended purposes and only by those to whom the

assets belong. These funds are not reflected in the government-wide financial statements because the

resources are not available to support the County’s operations or programs. The accounting used for fiduciary

funds is much like that used for proprietary funds. Cobb County maintains eleven fiduciary funds; nine

agency funds for Clerk of State Court, Clerk of Juvenile Court, Sheriff, Clerk of Superior Court, Clerk of

Probate Court, Tax Commissioner, Accounts Payable Fund, Payroll Fund, the Child Support, Witness and

Jurors’ Fees, and two trust funds for the Pension Fund, and the Other Post Employment Benefit Fund. The

basic fiduciary funds financial statements can be found on pages 29-30 of this report.

Component Units

Cobb County has three component units; Cobb-Marietta Coliseum and Exhibit Hall Authority, the South

Cobb Redevelopment Authority (SCRA), and the Cobb County Board of Health. The Cobb-Marietta

Coliseum and Exhibit Hall Authority and the South Cobb Redevelopment Authority (SCRA) are reported as

blended component units, and the Cobb County Board of Health is a discretely presented component unit.

The component units are included in the financial statements because of their operational and financial

relationship to the County. The financial statements include the financial data for the County’s component

units as reflected in their most recent audited financial statements. The information presented for the Cobb

County Board of Health is as of and for the year ended June 30, 2018.

Budgetary Comparisons

Cobb County adopts an annual appropriated budget for the General Fund, Special Revenue Funds, and the

Debt Service Funds. A budgetary comparison schedule has been provided for the General Fund and Fire

District Special Revenue Fund and can be found on pages 86-87. Budget to actual comparisons for some of

the non-major funds are provided in individual schedules elsewhere in this report.

Notes to the Financial Statements

The notes provide additional information that is essential to a full understanding of the data provided in the

government-wide and fund financial statements. The notes to the financial statements can be found on pages

31-78 of this report.

During 2018 the County implemented GASB Statement No. 75 “Accounting and Financial Reporting for

Postemployment Benefit Plans Other Than Pensions.”

7

COBB COUNTY GOVERNMENT

Management’s Discussion and Analysis

For the Fiscal Year Ended September 30, 2018

Government-wide Financial Analysis

Net Position

As noted earlier, net position may serve over time as a useful indicator of a government’s financial position.

The County’s combined net position (government and business-type activities) totaled $4.7 billion at

September 30, 2018.

The following table provides a summary of the County’s governmental and business-type net position for

fiscal years 2018 and 2017: Cobb County, Georgia

S tatement of Net Position

Activities Activities Activities Activities Total Total

Assets:

Current assets $ 605,458,936 $ 563,717,978 $ 115,123,452 $ 111,364,548 $ 720,582,388 $ 675,082,526

Other - noncurrent - 9,004,204 - 890,526 - 9,894,730

Cap ital assets - net 4,067,821,140 3,983,221,643 1,713,850,212 1,722,693,930 5,781,671,352 5,705,915,573

Total assets $ 4,673,280,076 $ 4,555,943,825 $ 1,828,973,664 $ 1,834,949,004 $ 6,502,253,740 $ 6,390,892,829

Deferred Outflows of Resources

Deferred outflows related to OPEB $ 26,633,806 $ - $ 2,579,716 $ - $ 29,213,522 $ -

Deferred outflows related to p ensions 107,952,112 33,924,611 9,604,364 3,074,638 117,556,476 36,999,249

Deferred charges on bond refunding 877,377 1,078,521 - - 877,377 1,078,521

Total deferred outflows $ 135,463,295 $ 35,003,132 $ 12,184,080 $ 3,074,638 $ 147,647,375 $ 38,077,770

Total Assets and Deferred

Outflows of Resources $ 4,808,743,371 $ 4,590,946,957 $ 1,841,157,744 $ 1,838,023,642 $ 6,649,901,115 $ 6,428,970,599

Liabilities

Current liabilities $ 162,103,636 $ 131,651,823 $ 45,446,412 $ 34,405,256 $ 207,550,048 $ 166,057,079

Long-term liabilities (net) 1,313,418,678 1,240,939,521 347,603,603 363,074,867 1,661,022,281 1,604,014,388

Total liabilities $ 1,475,522,314 $ 1,372,591,344 $ 393,050,015 $ 397,480,123 $ 1,868,572,329 $ 1,770,071,467

Deferred Inflows of Resources

Deferred inflows related to OPEB $ 9,401,292 $ - $ 910,597 $ - $ 10,311,889 $ -

Deferred inflows related to p ensions 21,201,563 13,825,718 1,886,275 1,253,045 23,087,838 15,078,763

Deferred gain on refunding 334,669 394,131 971,110 1,165,333 1,305,779 1,559,464

Total deferred inflows $ 30,937,524 $ 14,219,849 $ 3,767,982 $ 2,418,378 $ 34,705,506 $ 16,638,227

Total Liabilities and Deferred

Inflows of Resources $ 1,506,459,838 $ 1,386,811,193 $ 396,817,997 $ 399,898,501 $ 1,903,277,835 $ 1,786,709,694

Net Position

Net investment in cap ital assets $ 3,597,754,891 $ 3,517,507,657 $ 1,460,332,315 $ 1,442,879,862 $ 5,058,087,206 $ 4,960,387,519

Restricted 274,860,968 271,896,684 44,410,711 48,915,985 319,271,679 320,812,669

Unrestricted (570,332,326) (585,268,577) (60,403,279) (53,670,706) (630,735,605) (638,939,283)

Total net p osition $ 3,302,283,533 $ 3,204,135,764 $ 1,444,339,747 $ 1,438,125,141 $ 4,746,623,280 $ 4,642,260,905

(1) As restated.

Governmental

2018

Business-type

2018 2017 (1)2018

Governmental Business-type

2017 (1) 2017 (1)

100% of the County’s net position reflects its investment in capital assets such as land, buildings, equipment

and infrastructure (roads, bridges, sidewalks, water lines and sewer lines) less any related debt used to acquire

those assets that is still outstanding. Net investment in capital assets increased by $97.7 million (1.97%) in

FY18.

The County uses these capital assets to provide services to its citizens; therefore, 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.

8

COBB COUNTY GOVERNMENT

Management’s Discussion and Analysis

For the Fiscal Year Ended September 30, 2018

Changes in Net Position

Governmental and business-type activities increased the County’s net position by $104.4 million in FY18.

The following table indicates the changes in net position for governmental and business-type activities in

FY18 and FY17:

Activities Activities Activities Activities Total Total

Revenues:

Program Revenues:

Charges for Services $ 127,788,528 $ 121,501,221 $ 217,443,182 $ 219,728,233 $ 345,231,710 $ 341,229,454

Operating Grants & Contributions 21,934,660 25,965,261 - - 21,934,660 25,965,261

Capital Grants & Contributions 49,707,069 172,987,488 30,000,062 31,879,589 79,707,131 204,867,077

General Revenues:

Property Taxes 385,637,151 313,253,222 - - 385,637,151 313,253,222

Other Taxes 216,550,370 207,739,634 - - 216,550,370 207,739,634

Other 12,354,756 10,652,219 1,733,126 1,272,850 14,087,882 11,925,069

Total Revenues $ 813,972,534 $ 852,099,045 $ 249,176,370 $ 252,880,672 $ 1,063,148,904 $ 1,104,979,717

Expenses:

General government $ 165,424,633 $ 154,788,215 $ - $ - $ 165,424,633 $ 154,788,215

Public safety 289,469,163 273,691,096 - - 289,469,163 273,691,096

Public works 143,129,556 140,071,410 - - 143,129,556 140,071,410

Health and welfare 7,903,359 7,708,828 - - 7,903,359 7,708,828

Culture and recreation 78,642,971 65,875,330 - - 78,642,971 65,875,330

Housing and development 17,411,304 16,763,846 - - 17,411,304 16,763,846

Interest on long-term debt 20,721,554 20,720,935 - - 20,721,554 20,720,935

Water and Sewer - - 195,603,970 190,668,592 195,603,970 190,668,592

Solid Waste Disposal - - 736,392 773,708 736,392 773,708

Public Transit System - - 27,003,918 27,369,365 27,003,918 27,369,365

Cobblestone Golf Course - - 1,694,487 1,718,217 1,694,487 1,718,217

Galleria Speciality Shops - - 1,004,250 930,856 1,004,250 930,856

Performing Arts Centre - - 10,040,972 10,396,336 10,040,972 10,396,336

Total Expenses: $ 722,702,540 $ 679,619,660 $ 236,083,989 $ 231,857,074 $ 958,786,529 $ 911,476,734

Increase in net position before transfers $ 91,269,994 $ 172,479,385 $ 13,092,381 $ 21,023,598 $ 104,362,375 $ 193,502,983

Transfers 6,877,775 5,321,598 (6,877,775) (5,321,598) - -

Increase in net position $ 98,147,769 $ 177,800,983 $ 6,214,606 $ 15,702,000 $ 104,362,375 $ 193,502,983

Net Position - beginning $ 3,391,711,278 $ 3,274,708,104 $ 1,456,311,854 $ 1,446,950,673 $ 4,848,023,132 $ 4,721,658,777

Restatement $ (187,575,514) $ (60,797,809) $ (18,186,713) $ (6,340,819) $ (205,762,227) $ (67,138,628)

Net Position - ending $ 3,302,283,533 $ 3,391,711,278 $ 1,444,339,747 $ 1,456,311,854 $ 4,746,623,280 $ 4,848,023,132

Governmental

2018 2018 2017

Governmental Business-type

2017 2017

Business-type

2018

The effect of implementing GASB No. 75 to previously reported changes in net position has not been

determined.

9

COBB COUNTY GOVERNMENT

Management’s Discussion and Analysis

For the Fiscal Year Ended September 30, 2018

Governmental Activities

Governmental activities increased the County’s net position by $98.1 million thereby accounting for 94.0%

of the total growth in net position.

15.7%

74.0%

2.7%

6.1%

1.5%

Revenues - Governmental Activities

FY 2018

Charges for Services

Taxes

Oper ating Grants &

Contribu tio ns

Capital Grants &

Contribu tio ns

Other

$- $20,000,000 $40,000,000 $60,000,000 $80,000,000

$100,000,000 $120,000,000 $140,000,000 $160,000,000 $180,000,000 $200,000,000 $220,000,000 $240,000,000 $260,000,000 $280,000,000 $300,000,000

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Expenses - Governmental Activities

FY2018

10

COBB COUNTY GOVERNMENT

Management’s Discussion and Analysis

For the Fiscal Year Ended September 30, 2018

Business-type Activities

Business-type activities increased the County’s net position by $6.2 million thereby accounting for 6.0% of

the total growth in net position.

Changes in Overall Net Position from Operating Results

Revenues

The County’s total revenue decreased 3.8%, or $41.8 million, in FY18. The County’s decrease in revenue

was attributed to a $125.1 million decrease in capital contributions for culture and recreation and public

works. This was offset by an increase of $81.2 million in Property and Other Taxes.

Expenses

The County’s total expenses increased 5.2%, or $47.3 million, in FY18. $43.1 million of this increase is

related to governmental activities and $4.2 million is related to business-type activities. The three functions

that had the largest increases over the prior year were Public Safety ($15.8 million), Culture and Recreation

($12.8 million), and General Government ($10.6 million).

Financial Analysis of the County’s Individual Funds

Cobb County uses fund accounting to ensure and demonstrate compliance with finance-related legal

requirements. All the funds of Cobb County can be divided into three categories: governmental funds,

proprietary funds, and fiduciary 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 financing

requirements. In particular, the 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.

The County ended FY18 with strong fund balances in its governmental funds. The combined balance of all

the governmental funds is $402.6 million. Of this total, $106.9 million or 26.6% represents unassigned fund

balance, which is available for spending in the coming year. The remainder of fund balance is nonspendable,

restricted, committed or assigned to indicate that it is not available for new spending because it has already

been designated: 1) to liquidate contracts, purchase orders and inventories of the prior period 2) to pay debt

service and 3) for a variety of other restricted purposes.

Major Funds:

General Fund

The General Fund is the primary operating fund of the County. At the end of the current fiscal year,

unassigned fund balance of the General Fund was $108.8 million, and total fund balance was $130.1 million.

As a measure of the General Fund’s liquidity, it may be useful to compare both unassigned fund balance and

total fund balance to total fund expenditures. Unassigned fund balance represents 29.4% of total general

fund operating expenditures and total fund balance represents 35.1% of that same amount.

The fund balance of the General Fund increased $40.0 million in FY18 for a total of $130.1 million. The

Board of Commissioners made a collaborative effort to focus on maintaining the county’s excellent financial

position. Revenues increased $72.4 million (20.3%) while operating expenditures increased $10.8 million

(3.0%). Property taxes made up the largest increase in revenues.

Total transfers out of the General Fund of $50.8 million represent the appropriation of funds to the Public

Facilities Fund, Transit Fund, Solid Waste Fund, Water System Funds, CMCEHA Fund, and the Grant Fund.

Fire District Fund

The Fire Fund is used to account for the operation of the fire department within the County. $35.6 million of

fund balance is reported as restricted for construction and capital outlay while $14.1 thousand is

nonspendable due to inventories and prepaid items. The fund balance increased by $1.8 million during the

11

COBB COUNTY GOVERNMENT

Management’s Discussion and Analysis

For the Fiscal Year Ended September 30, 2018

current fiscal year mainly due to transfers out for the relocation of fire station #17 and the purchase of

property for a new fire station in the previous year. While total assets decreased $13.5 million, total liabilities

also decreased by $15.6 million.

SPLOST Fund

The SPLOST Fund accounts for the financial resources provided from the 2006, 2011, and 2016 one percent

Special Purpose Local Option Sales Tax. Such funds were approved by voter referendum for public safety

and transportation projects, as well as parks, recreational and cultural affairs, and support services. At the

end of the current fiscal year, the SPLOST Fund reported a fund balance of $168.7 million which is restricted

for specific construction projects. Expenditures exceeded revenues by $19.9 million. Of the $193.2 million

in expenditures, $11.9 million was spent on facility projects by the County’s Property Management and Parks

Divisions, $19.9 million for Public Safety, $118.7 million was spent on various DOT safety and improvement

road, bridge and sidewalk projects, and $6.0 million was spent on principal and interest for capital leases.

The remaining $36.7 million represents payments to the cities for their portion of SPLOST proceeds.

Nonmajor Funds:

Special Revenue Funds

The County uses Special Revenue Funds to account for the collection and disbursement of specific revenues

that are legally restricted or committed to expenditures for specified purposes. Included in this classification

are: Law Library Fund, Community Services Fund, Grant Fund, Housing and Urban Development Grant

Fund, Hotel/Motel Tax Fund, Emergency 911 Fund, Parking Deck Facility Fund, 800 MHz Fund, Streetlight

District Fund, Six Flags Special Service District Fund, Cumberland Special Service District 1 and 2 Funds,

CMCEHA Fund, and the Stadium Capital Maintenance Fund.

Non-major Special Revenue Funds’ operating revenue totaled $85.9 million for the fiscal year ended

September 30, 2018. Total operating revenues increased by $2.1 million (2.6%). This increase was attributed

primarily to a $1.3 million increase in CMCEHA Fund charges for services and a $1.0 million increase in

Cumberland Special Service District 2 Fund tax revenues.

Operating expenditures of the non-major Special Revenue Funds totaled $62.0 million for FY18. Total Non-

major Special Revenue Funds’ operating expenditures remained relatively flat with an increase of $1.0

million (1.6%).

The fund balance of the nonmajor Special Revenue Funds totaled $50.2 million. This was an increase of $8.7

million from FY17.

CMCEHA and BOC Debt Service Funds

The Debt Service Funds reflects the accumulation of monies for, and the payment of, principal and interest

on all General Obligation Debt other than that issued specifically for enterprise activities. The Debt Service

Funds had a total fund balance of $12.7 million, all of which is reserved for the payment of debt service.

Capital Project Funds

The County uses Capital Project Funds to account for the acquisition, construction and improvement of major

capital projects that are not financed by Proprietary Funds. The proceeds of General Obligation Bond issues

are accounted for in the Capital Project Funds until improvement projects are completed. The non-major

Capital Project Funds’ overall fund balance is $5.2 million. $140 thousand is nonspendable for prepaid

expenditures and $7.0 million is restricted or committed for specific construction and improvement projects

and capital acquisitions which is offset by a negative unassigned fund balance of $1.9 million.

Operating expenditures exceeded operating revenues by $38.4 million for the non-major Capital Project

Funds which was partially offset by transfers in of $14.6 million. In the Capital Project Funds, the primary

expenditures are accounted for in various Information Services computer replacement projects, county

building construction and renovation projects, and park land acquisition.

12

COBB COUNTY GOVERNMENT

Management’s Discussion and Analysis

For the Fiscal Year Ended September 30, 2018

Proprietary Funds

The activities of the County that render services to the general public on a user charge basis, or that require

periodic determination of revenues for public policy are accounted for as Proprietary Funds. The Proprietary

Fund statements provide the same type of information found in the government-wide financial statements,

but in more detail.

Major Funds:

Water and Sewer Fund

The Water and Sewer Fund accounts for the operation of the water distribution system and sewage processing

plants. Unrestricted net position of the Water and Sewer Fund at the end of the year was ($27.6) million. The

fund had a change in net position of $3.0 million in FY18 mostly due to $18.0 million in capital contributions.

Non-major Funds:

The Cobblestone Golf Course Fund accounts for the operations and maintenance of the County’s golf course.

It ended FY18 with a net income from operations before depreciation of $26.0 thousand. However, overall

change in net position (including depreciation, non-operating revenues and transfers out) was $(9.9) thousand

for FY18. Net position totaled $3.3 million.

The Public Transit System Fund accounts for the operation of the local public transit system through user

fees and funds received from the Federal Transit Authority and the Georgia Department of Transportation.

The Public Transit System Fund ended FY18 with a change in net position of $3.1 million. Net position

totaled $62.6 million at the end of the fiscal year.

The Solid Waste Disposal Fund accounts for the operation of the County’s public landfills and solid waste

processing. The County’s Solid Waste Disposal Facility generated an inception-to-date net loss of $17.1

million; however, it generated a net income from operations before depreciation of $214.3 thousand. Per

GASB Statement No. 18, once a landfill stops accepting waste, it is required to be closed and the liability of

closure and post-closure is recorded as of the balance sheet date even though the expenses will be paid out

over 30 years. The FY18 landfill liability is $22.9 million.

The Performing Arts Centre Fund ended the year with negative unrestricted net position of $6.3 million. The

fund had a negative change in net position of $307.3 thousand in FY18, which included depreciation expense

of $2.2 million.

The Galleria Specialty Shop Fund accounts for the activities of the Authority’s retail specialty shops. The

Galleria Specialty Shop Fund’s operating revenue increased $13.4 thousand (2.7%) from FY17 and total

operating expenses increased by $72.1 thousand (9.7%). A transfer in of $500.0 thousand from the

CMCEHA fund was used to offset the operating loss before transfers. Net position totaled $3.6 million at

the end of the fiscal year.

General Fund Budgetary Highlights

Cobb County operated under an annual balanced budget (budgeted revenues equal budgeted expenditures),

which is adopted by resolution and administered in accordance to State law. The legal level of control (the

level at which expenditures may not legally exceed appropriations) for each legally adopted annual operating

budget is at the category level within departments.

The most significant expenditure amendments are summarized as follows:

General Government

 General Government had an overall $8.1 million increase. The final budget is a result of increases in personnel services ($1.9 million), operating expenditures ($4.4 million) and capital outlay ($1.7

million). The Legislative departments recognized an overall $1.2 million increase in the final

budgets for personnel service and operating expenditures. The Judicial departments recognized an

13

COBB COUNTY GOVERNMENT

Management’s Discussion and Analysis

For the Fiscal Year Ended September 30, 2018

overall $4.9 million increase in the final budgets for personnel service, operating expenditures, and

capital outlays. The Executive and Administrative departments recognized an overall $1.9 million

increase in the final budgets for personnel service, operating expenditures and capital outlay.

Public Safety

 Public Safety had an overall $14.4 million increase. Personnel services increased $6.4 million. Operating expenditures increased by $4.4 million mainly due to increased medical and

dental services for inmates held at the County’s Adult Detention Center and contractual fees paid

for the school bus stop arm camera program. Capital outlay increased $3.6 million primarily due to

police department vehicle replacements.

Public Works:

 Public Works had an overall $0.1 million increase. This increase is due mainly to an increase in capital outlays of $0.3 million for traffic control equipment. A decrease in personnel services offset

the overall increase.

Culture and Recreation:

 Culture and Recreation had an overall increase of $3.3 million. Personnel services increased $1.0. There was an increase in operating expenditures of $1.1 million to provide increased landscaping

and other grounds and maintenance services at the various park locations. Capital outlay increased

by $1.2 million for the construction of playgrounds and various building and land improvements.

Housing and Development:

 Housing and Development had an overall increase of $0.2 million. There was an increase in operating expenditures of $0.2 million. Operating increases were due to expanded services within

the Community Development Agency.

The County’s final budget less reserves projected a loss of $37.8 million in the General Fund with the fund

reporting an increase of $33.8 million. Overall revenues ended the year $72.8 million over budget while

operating expenditures ended the fiscal year $0.8 million under budget. Expenditure control was very

important in the FY18 budget and will continue to remain the focus for the future while we look for innovative

ways to maintain consistent levels of service with a commitment to the community to be more efficient and

accessible.

Capital Assets and Debt Administration

Capital Assets

The County’s investment in capital assets for its governmental and business-type activities as of September

30, 2018 amounts to $5.1 billion (net of accumulated depreciation and related debt). This investment in

capital assets includes land, buildings, improvements, equipment, infrastructure and construction in progress.

Infrastructure assets are items that are normally immovable and of value only to the County, such as roads,

bridges, streets and sidewalks, drainage systems and other similar items.

14

COBB COUNTY GOVERNMENT

Management’s Discussion and Analysis

For the Fiscal Year Ended September 30, 2018

Cobb County's Capital Assets

(Net of Depreciation)

(in thousands)

2018 2017 2018 2017 2018 2017

Land $ 1,156,399 1,086,932 84,754$ 84,082$ 1,241,153$ 1,171,014$

Artwork - - 199 199 199 199

Buildings and structures 983,093 941,666 109,314 112,644 1,092,407 1,054,310

Improvements 161,084 33,047 - - 161,084 33,047

Sewerage plants - - 832,262 471,709 832,262 471,709

Machinery and equipment 73,535 75,594 47,539 40,039 121,074 115,633

Infrastructure 1,571,285 1,551,169 604,501 617,660 2,175,786 2,168,829

Construction in progress 122,425 294,814 35,281 396,361 157,706 691,175

Total $ 4,067,821 3,983,222 1,713,850$ 1,722,694$ 5,781,671$ 5,705,916$

Total

Primary Government

Business-type

Activities

Governmental

Activities

The County’s total net increase in capital assets for the current fiscal year was 1.3%.

Governmental assets that were moved from construction in progress to the asset records during the year

totaled approximately $300.8 million. Some of the major projects for FY18 consisted of the following: road

construction or improvements, park facility renovations, and fire station upgrades. In addition, all of the

Special Purpose Local Option Sales Tax (SPLOST) programs that were approved by voters in September

2005, March 2011, and subsequently in November 2015 funded various improvements around the County.

The 2011 & 2016 SPLOST Programs have added various opportunities for DOT to pursue projects not

approved during the 2005 SPLOST Program conception phase. Every project funded by the 2011-16

SPLOSTs will improve the quality of life in Cobb County by maintaining, improving and enhancing County

parks, transportation, infrastructure, public safety, libraries, senior services, judicial, and public health

facilities. Projects include infrastructure preservation (resurfacing, bridges and drainage), pedestrian

improvements, transit, traffic congestion relief, safety and operational improvements (roadways,

intersections, and school zones), and federal/state matching funds. A complete list of the projects, including

their status, and further details regarding the 2011-2016 SPLOST programs are available on the County’s

website.

Business-type assets moved from construction in progress to the asset records during the year totaled

approximately $391.9 million. Some of the major capital asset events for the business-type activities for the

current year included various sewer replacement and rehabilitations, water line and water main replacements,

continuation of a sewer conveyance capacity and equalization tunnel system as well as the continued

construction, upgrades and expansion of several water reclamation facilities.

Additional information on the County’s capital assets can be found in Note 5 of the Basic Financial

Statements section of this report.

Long-Term Debt

As of September 30, 2018, Cobb County had a net of $1.7 billion in outstanding long-term debt, which does

not include interest expense. Of this amount, $23.3 million (net of bond premium) comprises general

obligation debt backed by the full faith and credit of the government and $588.1 million in revenue bonds

(net of bond premium).

Additional information on Cobb County’s long-term debt can be found in Note 9 of the Basic Financial

Statements section of this report.

15

COBB COUNTY GOVERNMENT

Management’s Discussion and Analysis

For the Fiscal Year Ended September 30, 2018

Awards, Economic Factors and Next Year’s Budget and Rates

For the fourteenth year in a row, the Cobb County Water System has maintained its Triple-Triple "A” ratings

from the nation's top three credit rating agencies. The Water System has earned numerous honors from the

Georgia Association of Water Professionals including seventeen consecutive years of Complete and

Consistent NPDES Permit Compliance at Northwest Water Reclamation Facility, twelve consecutive years

at Noonday Water Reclamation Facility, and seven consecutive years at R.L. Sutton Water Reclamation

Facility. In 2018, South Cobb Water Reclamation Facility earned a Gold Award for Complete and Consistent

NPDES Permit Compliance. In April, 2018, the Georgia GAWP awarded the Water System a

Comprehensive Program of Excellence Award for its wastewater education and watershed education

programs for the second consecutive year. In May, 2018, J.D. Power Consumer Satisfaction Survey ranked

the Water System as the 3rd Highest for Water Utility Residential Customer Satisfaction in the South

Region. In October, 2018, the U.S. Environmental Protection Agency honored the Cobb County Water

System by awarding them the 2018 WaterSense Sustained Excellence Award, the program's highest award,

for the second year in a row. The Water System is a five-time Promotional Partner of the Year as the staff

adapts programs to reach customers through many avenues.

During the last twenty two years, Cobb County has maintained its Triple-Triple “A” credit rating and has

remained financially strong. The Board of Commissioners have continued to aggressively address the current

and future needs of the County by focusing on sound financial management, the reserve policy, the use of

current resources for capital expenditures and the practice of biennial budgeting.

With a growing, diverse population, the challenge is to continue to improve the quality of life by

concentrating on the demands placed on the public infrastructure such as transportation, water supply,

wastewater treatment, the demands of revitalization of many business areas and the demands of greenspace

conservation. Although the nation and surrounding counties are facing financial difficulties, Cobb County

is able to maintain low property tax rates and low debt levels so that we can remain a leader and provide the

best place to live, work and play.

The County continued to maintain a strong financial position during fiscal year 2018 and we expect the trend

to continue in 2019. Tourism revenue increased 12.4% over the prior year. Additionally, the one percent

sales tax (SPLOST) generated $148.7 million in tax revenue which is a $4.4 million increase compared to

FY17. Also, the number of commercial and residential building permits issued increased by 9.5% from the

previous year.

Many factors were taken into consideration when preparing the FY19 budget. The FY19 adopted budget had

a 12.58% increase compared to the FY18 adopted budget. Significant adjustments were made to all categories

with the exception of debt service. Personnel services were largely affected by a budgeted increase in both

the County’s pension contribution and employee health benefits. Operating expenditure budgets increased

approximately $2.9 million largely from an increase in medical and dental services for inmates held at the

County’s Adult Detention Center. The FY19 adopted budget for capital outlays increased $13.6 million

largely from the purchase of additional county vehicles, vehicle equipment, and a police body / in-car camera

system. Transfers-out were mainly affected by an increase of the Transit Fund subsidy. In addition, transfers-

out were impacted by an increased transfer to the Public Facilities Fund for DOT right of way contracts and

a unified court cast management system. The FY19 adopted budget for contingencies increased

approximately $8.7 million for public safety initiatives including, but not limited to, the addition of 23 police

positions.

With the uncertainty of future county revenues during these tough economic times, these proactive steps are

necessary and prudent measures to protect the County’s financial resources while continuing to remain

committed to improving the County’s quality of life.

16

COBB COUNTY GOVERNMENT

Management’s Discussion and Analysis

For the Fiscal Year Ended September 30, 2018

Requests for Information

This financial report is designed to provide a general overview of Cobb County finances for all those with an

interest in the government’s finances. Questions concerning any of the information provided in this report or

request for additional financial information should be addressed to the Director of Finance / Comptroller,

100 Cherokee Street, Suite 400 Marietta, Georgia 30090-9610.

Complete financial statements of the discretely presented component units can be obtained directly from their

administrative offices. The addresses for the administrative offices are as follows: Cobb-Marietta Coliseum

and Exhibit Hall Authority, Two Galleria Parkway Atlanta, Georgia 30339, Cobb County Board of Health,

1650 County Services Parkway Marietta, Georgia 30008.

17

COMPREHENSIVE ANNUAL FINANCIAL REPORT Return to Table of Contents

Cobb County Finance Department, 100 Cherokee Street, Marietta, Georgia 30090

BASIC FINANCIAL STATEMENTS

Activities Activities Total

Assets

Cash and cash equivalents $ 76,228,786 $ 24,644,772 $ 100,873,558 $ 7,783,408

Investments, at fair value - 200,000 200,000 3,060,963

Receivables 266,498,578 25,077,441 291,576,019 436,652

Internal balances (381,629) 381,629 - -

Due from others - 20,861 20,861 -

Due from other governments and agencies 21,547,954 8,979,924 30,527,878 2,211,611

Inventories 1,477,942 1,949,049 3,426,991 114,354

Prepaid items 1,181,022 109,169 1,290,191 -

Advances to others 1,318,809 - 1,318,809

Restricted cash and cash equivalents 142,583,430 53,760,607 196,344,037 -

Restricted investments, at fair value 95,004,044 - 95,004,044 -

Capital assets not being depreciated 1,278,824,103 120,233,769 1,399,057,872 -

Capital assets being depreciated, net 2,788,997,037 1,593,616,443 4,382,613,480 3,056,502

Total assets 4,673,280,076 1,828,973,664 6,502,253,740 16,663,490

Deferred Outflows of Resources

Deferred outflows related to OPEB 26,633,806 2,579,716 29,213,522 2,471,458

Deferred outflows related to pensions 107,952,112 9,604,364 117,556,476 2,454,183

Deferred charges on bond refunding 877,377 - 877,377 -

Total Deferred Outflows of Resources 135,463,295 12,184,080 147,647,375 4,925,641

Total Assets and Deferred Outflows of Resources 4,808,743,371 1,841,157,744 6,649,901,115 21,589,131

Liabilities

Accounts payable 27,342,594 27,639,966 54,982,560 195,073

Accrued payroll 4,990,933 983,476 5,974,409 525,713

Arbitrage liability - 54,882 54,882 -

Due to others 2,081,296 3,627 2,084,923 -

Due to other governments and agencies 8,821,477 12,457 8,833,934 972,809

Claims and judgments 20,780,816 - 20,780,816 -

Customer deposits - 8,872,205 8,872,205 -

Notes payable-current 90,093,194 - 90,093,194 -

Accrued interest payable 6,235,231 1,528,080 7,763,311 -

Unearned revenue 1,758,095 6,351,719 8,109,814 -

Noncurrent liabilities

Due within one year 41,925,969 25,181,241 67,107,210 737,326

Due in more than one year 1,271,492,709 322,422,362 1,593,915,071 27,794,518

Total liabilities 1,475,522,314 393,050,015 1,868,572,329 30,225,439

Deferred Inflows of Resources

Deferred inflows related to OPEB 9,401,292 910,597 10,311,889 1,129,861

Deferred inflows related to pensions 21,201,563 1,886,275 23,087,838 123,216

Deferred gain on refunding 334,669 971,110 1,305,779 -

Total Deferred Inflows of Resources 30,937,524 3,767,982 34,705,506 1,253,077

Total Liabilities and

Deferred Inflows of Resources 1,506,459,838 396,817,997 1,903,277,835 31,478,516

Net Position

Net investment in capital assets 3,597,754,891 1,460,332,315 5,058,087,206 3,056,502

Restricted for:

Renewal and expansion - 43,435,004 43,435,004 -

Debt service 25,313,924 975,707 26,289,631 -

SPLOST projects 168,720,405 - 168,720,405 -

Completion of projects 39,075,302 - 39,075,302 -

Special programs 41,751,337 - 41,751,337 314,806

Unrestricted (570,332,326) (60,403,279) (630,735,605) (13,260,693)

Total Net Position $ 3,302,283,533 $ 1,444,339,747 $ 4,746,623,280 $ (9,889,385)

Cobb County, Georgia

Statement of Net Position

September 30, 2018

Component Unit

Primary Government

Governmental Business-type

Cobb County

Board of

Health

June 30, 2018

See accompanying notes to financial statements.

18

Operating

Charges for Grants and

Functions/Programs Services Contributions

Primary Government

Governmental Activities:

General government $ 165,424,633 $ 49,639,193 $ 9,433,793 $ 15,862 $ (106,335,785) $ - $ (106,335,785) $ -

Public safety 289,469,163 20,618,775 1,767,657 62,409 (267,020,322) - (267,020,322) -

Public works 143,129,556 7,012,300 721,982 44,223,685 (91,171,589) - (91,171,589) -

Health and welfare 7,903,359 403,046 2,602,843 600,939 (4,296,531) - (4,296,531) -

Culture and recreation 78,642,971 21,964,132 1,381,843 4,804,174 (50,492,822) - (50,492,822) -

Housing and development 17,411,304 28,151,082 6,026,542 - 16,766,320 - 16,766,320 -

Interest on long-term debt 20,721,554 - - - (20,721,554) - (20,721,554) -

Total governmental activities 722,702,540 127,788,528 21,934,660 49,707,069 (523,272,283) - (523,272,283) -

Business-type Activities:

Water and Sewer 195,603,970 200,754,371 - 17,991,751 - 23,142,152 23,142,152 -

Solid Waste 736,392 550,942 - - - (185,450) (185,450) -

Transit 27,003,918 4,198,174 - 12,008,311 - (10,797,433) (10,797,433) -

Cobblestone Golf Course 1,694,487 1,687,920 - - - (6,567) (6,567) -

Galleria Specialty Shops 1,004,250 518,232 - - - (486,018) (486,018) -

Performing Arts Centre 10,040,972 9,733,543 - - - (307,429) (307,429) -

Total business-type activities 236,083,989 217,443,182 - 30,000,062 - 11,359,255 11,359,255 -

Total primary government $ 958,786,529 $ 345,231,710 $ 21,934,660 $ 79,707,131 $ (523,272,283) $ 11,359,255 $ (511,913,028) $ -

Component Units

Cobb County Board of Health $ 24,297,022 $ 5,401,626 $ 23,455,802 $ - $ 4,560,406

Total component units $ 24,297,022 $ 5,401,626 $ 23,455,802 $ - $ 4,560,406

General revenues:

Property taxes $ 385,637,151 $ - $ 385,637,151 $ -

Sales taxes 148,725,522 - 148,725,522 -

Insurance premium tax 30,414,232 - 30,414,232 -

Alcoholic beverage tax 5,293,897 - 5,293,897 -

Hotel/Motel tax 16,861,644 - 16,861,644 -

Real estate transfer tax 2,587,475 - 2,587,475 -

Miscellaneous taxes 12,667,600 - 12,667,600 -

Miscellaneous 9,641,936 910,919 10,552,855 -

Gain from sale of capital assets - 144,836 144,836 -

Unrestricted investment earnings 2,712,820 677,371 3,390,191 29,633

Transfers 6,877,775 (6,877,775) - -

Total general revenues and transfers 621,420,052 (5,144,649) 616,275,403 29,633

Change in net position 98,147,769 6,214,606 104,362,375 4,590,039

Net position beginning of year, before restatement 3,391,711,278 1,456,311,854 4,848,023,132 (1,696,634)

Restatement (187,575,514) (18,186,713) (205,762,227) (12,782,790)

Net position beginning of year, after restatement 3,204,135,764 1,438,125,141 4,642,260,905 (14,479,424)

Net position - end of year $ 3,302,283,533 $ 1,444,339,747 $ 4,746,623,280 $ (9,889,385)

Board of

Health

June 30, 2018Expenses Contributions Activities Activities Total

Capital Primary Government

Grants and Governmental Business-type

Program Revenues

Cobb County, Georgia

Statement of Activities

For the Fiscal Year Ended September 30, 2018

Net (Expense) Revenue and Changes in Net Position

Component Unit

Cobb County

See accompanying notes to financial statements.

19

Other Total

General Fire District SPLOST Governmental Governmental

Fund Fund Fund Funds Funds

Assets

Cash and cash equivalents $ 27,303,924 $ 2,706 $ 84,749,276 $ 39,680,623 $ 151,736,529

Restricted cash and cash equivalents - - - 19,398,080 19,398,080

Investments, at fair value - - 95,004,044 - 95,004,044

Receivables:

Taxes and penalties 189,764,859 62,091,949 - 9,120,819 260,977,627

Accrued interest - - 366,226 - 366,226

Other 1,211,653 139,973 161 3,199,772 4,551,559

Due from other funds 608,754 - - 4,415,497 5,024,251

Due from other governments and agencies 1,090,590 - 15,829,334 3,432,331 20,352,255

Advances to others - - - 1,318,809 1,318,809

Advances to other funds 2,981,022 - - - 2,981,022

Inventories 1,411,163 14,122 - 52,657 1,477,942

Prepaid items 8,956 - - 356,250 365,206

Total assets $ 224,380,921 $ 62,248,750 $ 195,949,041 $ 80,974,838 $ 563,553,550

Liabilities

Accounts payable $ 4,751,500 $ 172,823 $ 18,832,888 $ 2,957,972 $ 26,715,183

Accrued payroll 3,485,954 873,785 - 623,311 4,983,050

Due to other funds 7,206,066 3,210,000 - 1,180,836 11,596,902

Due to others 729,849 2,611 - 1,348,836 2,081,296

Due to other governments and agencies 65,345 - 8,395,748 360,384 8,821,477

Notes payable, net 70,072,484 20,020,710 - - 90,093,194

Accrued interest payable 551,250 157,500 - 1,039,781 1,748,531

Matured bonds payable - - - 3,310,000 3,310,000

Unearned revenue 41,933 - - 1,716,162 1,758,095

Total liabilities 86,904,381 24,437,429 27,228,636 12,537,282 151,107,728

Deferred Inflows of Resources

Unavailable revenues 7,360,770 2,160,505 - 322,421 9,843,696

Total Liabilities and Deferred

Inflows of Resources 94,265,151 26,597,934 27,228,636 12,859,703 160,951,424

Fund Balances

Nonspendable:

Inventories and prepaid items 1,420,119 14,122 - 408,907 1,843,148

Advances 2,981,022 - - - 2,981,022

Restricted for:

Debt Service - - - 22,003,924 22,003,924

Construction and capital outlay - 35,636,694 168,720,405 3,424,486 207,781,585

Special programs 1,932,522 - - 39,549,463 41,481,985

Committed for:

Construction and capital outlay - - - 3,553,966 3,553,966

Special programs 13,199,856 - - 1,101,673 14,301,529

Assigned for:

Special programs 1,798,318 - - 1,595 1,799,913

Unassigned 108,783,933 - - (1,928,879) 106,855,054

Total fund balance 130,115,770 35,650,816 168,720,405 68,115,135 402,602,126

Total liabilities, deferred inflows of

resources, and fund balances $ 224,380,921 $ 62,248,750 $ 195,949,041 $ 80,974,838 $ 563,553,550

Cobb County, Georgia

Balance Sheet

Governmental Funds

September 30, 2018

See accompanying notes to financial statements.

20

Total fund balances - governmental funds $ 402,602,126

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 4,067,771,987

Other long-term assets and deferred outflows of resources are not available to

pay for current-period expenditures and, therefore, are either reported

as unavailable or not reported in the funds:

Property tax 9,843,696

Intergovernmental receivable 1,195,699

Unamortized bond insurance costs 86,200

Deferred outflows of resources related to pensions 107,952,112

Deferred outflows of resources related to OPEB 26,633,806

Internal service funds are used by management to charge the cost for claims

to individual funds. The assets and liabilities of the internal service

funds are included in governmental activities in the statement of net position. 37,735,194

Claims and judgments not due and payable in the current period (6,908,699)

Long-term liabilities and deferred inflows of resources are not due and payable

in the current period and therefore are not reported in the funds:

Net pension liability (580,500,491)

Net OPEB liability (197,043,562)

Deferred inflows of resources related to pensions (21,201,563)

Deferred inflows of resources related to OPEB (9,401,292)

Accrued interest payable (4,486,700)

Unmatured bonds (471,875,000)

Unmatured revenue anticipation certificates (5,565,000)

Unamortized deferred charges and deferred loss on refunding 542,708

Unamortized bond premiums (4,515,664)

Unamortized revenue anticipation certificate premium (65,373)

Certificates of participation (7,965,000)

Capital leases payable (13,985,297)

Compensated absences (28,566,354)

Net position of governmental activities $ 3,302,283,533

Cobb County, Georgia

Governmental Funds

Reconciliation of the Governmental Balance Sheet to the Statement of Net Position

September 30, 2018

See accompanying notes to financial statements.

21

Other Total

General Fire District SPLOST Governmental Governmental

Fund Fund Fund Funds Funds

Revenues:

Taxes $ 330,242,874 $ 91,254,144 $ 148,725,522 $ 29,738,466 $ 599,961,006

Licenses and permits 28,512,052 5,100 1,000 600 28,518,752

Intergovernmental 3,495,832 7,311 21,946,042 24,538,941 49,988,126

Charges for services 48,787,501 2,026,562 - 37,898,873 88,712,936

Fines and forfeits 9,731,182 - - - 9,731,182

Contributions - - - 2,304,144 2,304,144

Interest earned 1,174,418 235,142 2,187,094 847,991 4,444,645

Miscellaneous 6,559,736 50,893 465,858 2,565,449 9,641,936

Total revenues 428,503,595 93,579,152 173,325,516 97,894,464 793,302,727

Expenditures:

Current:

General government 140,106,430 - - 9,123,321 149,229,751

Public safety 162,927,296 89,990,176 - 14,789,118 267,706,590

Public works 16,885,518 - - 5,416,272 22,301,790

Health and welfare 4,359,349 - - 3,165,384 7,524,733

Culture and recreation 35,987,413 - - 19,137,432 55,124,845

Housing and development 9,761,834 - - 6,321,705 16,083,539

Capital outlay - - 150,575,655 43,545,474 194,121,129

Debt service:

Principal retirement - - 5,731,302 20,479,793 26,211,095

Interest and fiscal charges 435,480 165,511 234,425 20,992,038 21,827,454

Intergovernmental - - 36,664,971 - 36,664,971

Total expenditures 370,463,320 90,155,687 193,206,353 142,970,537 796,795,897

Excess (deficiency) of revenues

over (under) other expenditures 58,040,275 3,423,465 (19,880,837) (45,076,073) (3,493,170)

Other financing sources (uses):

Transfers in 32,502,226 7,444 3,871,144 58,619,588 95,000,402

Transfers out (50,798,214) (1,636,720) - (34,718,934) (87,153,868)

Proceeds from sale of capital assets 225,946 19,419 - 18,294 263,659

Total other financing sources (uses) (18,070,042) (1,609,857) 3,871,144 23,918,948 8,110,193

Net changes in fund balances 39,970,233 1,813,608 (16,009,693) (21,157,125) 4,617,023

Fund balances at beginning of year 90,145,537 33,837,208 184,730,098 89,272,260 397,985,103

Fund balances at end of year $ 130,115,770 $ 35,650,816 $ 168,720,405 $ 68,115,135 $ 402,602,126

Cobb County, Georgia

Statement of Revenues, Expenditures and Changes in Fund Balance

Governmental Funds

For the Fiscal Year Ended September 30, 2018

See accompanying notes to financial statements.

22

Amounts reported for governmental activities in the statement of activities are

different because:

Net change in fund balances - total governmental funds $ 4,617,023

Governmental funds report capital outlays as expenditures. However, in the

statement of activities the cost of those assets is allocated over their estimated

useful lives and reported as depreciation expense.

Depreciation expense (129,406,099)

Capital outlays 194,769,244 65,363,145

The loss on disposition of capital assets is not reported in the fund statements. (431,859)

The net effect of various miscellaneous transactions involving capital assets

(donations) is to increase net position. 19,688,069

The net effect of revenues in the statement of activities that do not provide current financial

resources are not reported as revenues in the funds.

Property tax 2,226,515

Intergovernmental revenues (459,972) 1,766,543

Debt proceeds provide current financial resources to governmental funds, but issuing

debt increases long-term liabilities in the statement of net position. Repayment of debt

principal and bond costs are expenditures in the governmental funds, but the repayment

reduces long-term liabilities and bond costs are capitalized in the statement of net position:

Matured principal on bonds 19,760,000

Capital lease principal payments 5,746,095

Revenue anticipation certificates payments 255,000

Certificates of participation payments 450,000 26,211,095

Some expenses reported in the statement of activities do not require the use of current

financial resources and, therefore, are not reported as expenditures in the governmental

funds:

Net pension liability and changes in related deferred inflows/outflows of resources (21,409,189)

Net OPEB liability and changes in related deferred inflows/outflows of resources (1,239,738)

Accrued compensated absences (1,943,979)

Amortization for bond deferred amounts and premiums 817,599

Amortization of bond insurance costs (9,600)

Accrued interest expense 288,301 (23,496,606)

Internal service funds are used by management to charge the cost of claims

to individual funds. This amount is the net activity of the claims internal service 4,430,359

fund.

Changes in net position of governmental activities. $ 98,147,769

For the Fiscal Year Ended September 30, 2018

Cobb County, Georgia

Governmental Funds

Reconciliation of the Statement of Revenues, Expenditures and

Changes in Fund Balances of Governmental Funds to the Statement of Activities

See accompanying notes to financial statements.

23

Cobb County, Georgia

Proprietary Funds

Statement of Net Position

September 30, 2018

Other

Water and Enterprise

Sewer Fund Funds

Assets and Deferred Outflows of Resources

Current assets:

Cash $ 22,625,550 $ 2,019,222 $ 24,644,772 $ 47,677,607

Restricted cash and cash equivalents 50,618,000 3,142,607 53,760,607 -

Investments, at fair value 200,000 - 200,000 -

Receivables:

Accounts, net 22,723,831 206,531 22,930,362 -

Accrued interest 41 - 41 -

Other 2,048,373 98,665 2,147,038 603,166

Due from other funds - 3,500,014 3,500,014 3,210,000

Due from component unit - 20,861 20,861 -

Due from other governments and agencies 12,223 8,967,701 8,979,924 -

Inventories 1,919,138 29,911 1,949,049 -

Prepaid items 1,169 108,000 109,169 729,616

Total current assets 100,148,325 18,093,512 118,241,837 52,220,389

Noncurrent assets:

Property, plant and equipment:

Capital assets not being depreciated 96,965,255 23,268,514 120,233,769 -

Capital assets being depreciated, net 1,459,135,546 134,480,897 1,593,616,443 49,153

Net property, plant and equipment 1,556,100,801 157,749,411 1,713,850,212 49,153

Total noncurrent assets 1,556,100,801 157,749,411 1,713,850,212 49,153

Total assets 1,656,249,126 175,842,923 1,832,092,049 52,269,542

Deferred outflows of resources:

Deferred outflows of resources related to OPEB 2,509,854 69,862 2,579,716 -

Deferred outflows of resources related to pension 9,310,473 293,891 9,604,364 -

Total deferred outflows of resources 11,820,327 363,753 12,184,080 -

Total assets and deferred outflows of resources $ 1,668,069,453 $ 176,206,676 $ 1,844,276,129 $ 52,269,542

Continued on next page.

Total Fund

Business-type Activities - Enterprise Funds Governmental

Activities -

Internal Service

See accompanying notes to financial statements.

24

Cobb County, Georgia

Proprietary Funds

Statement of Net Position

Other

Water and Enterprise

Sewer Fund Funds

Liabilities and Deferred Inflows of Resources

Liabilities:

Current liabilities (payable from current assets):

Accounts payable $ 14,737,408 $ 12,902,558 $ 27,639,966 $ 627,411

Accrued payroll 377,545 605,931 983,476 7,883

Arbitrage liability 54,882 - 54,882 -

Due to other funds - 137,363 137,363 -

Due to others 1,943 1,684 3,627 -

Customer deposits 6,789,833 2,082,372 8,872,205 -

Due to other governments and agencies - 12,457 12,457 -

Accrued interest payable 1,443,552 84,528 1,528,080 -

Unearned revenues - 1,151,719 1,151,719 -

Current portion of revenue bonds 13,150,000 555,000 13,705,000 -

Current portion of note payable 9,583,749 - 9,583,749 -

Current portion of compensated absences 1,358,876 90,313 1,449,189 23,511

Current portion of closure and post closure care - 443,303 443,303 -

Estimated liability for claims and judgments - - - 13,872,117

Total current liabilities 47,497,788 18,067,228 65,565,016 14,530,922

Long-term liabilities:

Revenue bonds (net of current portion and

bond premium) 112,671,488 5,315,000 117,986,488 -

Notes payable (net of current portion) 110,784,949 - 110,784,949 -

Compensated absences (net of current portion) 424,103 46,364 470,467 3,426

Closure and post closure care (net of current portion) - 22,431,543 22,431,543 -

Unearned revenue (net of current portion) - 5,200,000 5,200,000 -

Net OPEB liability 18,568,531 516,855 19,085,386 -

Net pension liability 50,082,638 1,580,891 51,663,529 -

Advances from other funds - 2,981,022 2,981,022 -

Total long-term liabilities 292,531,709 38,071,675 330,603,384 3,426

Total liabilities 340,029,497 56,138,903 396,168,400 14,534,348

Deferred inflows of resources:

Deferred inflow related to OPEB 885,937 24,660 910,597 -

Deferred inflow related to pension 1,828,556 57,719 1,886,275 -

Deferred gain on refunding 971,110 - 971,110 -

Total deferred inflows of resources 3,685,603 82,379 3,767,982 -

Total liabilities and deferred inflows of resources 343,715,100 56,221,282 399,936,382 14,534,348

Net Position

Net investment in capital assets 1,308,471,745 151,860,570 1,460,332,315 49,153

Restricted for:

Capital projects 43,435,004 - 43,435,004 -

Debt service - 975,707 975,707 -

Unrestricted (27,552,396) (32,850,883) (60,403,279) 37,686,041

Total net position $ 1,324,354,353 $ 119,985,394 $ 1,444,339,747 $ 37,735,194

Continued from preceding page.

September 30, 2018

Total Fund

Business-type Activities - Enterprise Funds Governmental

Activities -

Internal Service

See accompanying notes to financial statements.

25

Operating revenues:

Charges for services $ 200,754,371 $ 16,688,811 $ 217,443,182 $ 75,400,780

Miscellaneous income 838,688 72,231 910,919 -

Total operating revenues 201,593,059 16,761,042 218,354,101 75,400,780

Operating expenses:

Personnel services 32,235,494 4,367,120 36,602,614 592,201

Other operating expenses 104,717,809 28,239,595 132,957,404 9,600,512

Benefits and claims - - - 60,244,390

Total operating expenses 136,953,303 32,606,715 169,560,018 70,437,103

Operating income (loss)

before depreciation 64,639,756 (15,845,673) 48,794,083 4,963,677

Less depreciation (54,419,095) (7,702,248) (62,121,343) (19,858)

Operating income (loss) 10,220,661 (23,547,921) (13,327,260) 4,943,819

Nonoperating revenues (expenses):

Interest income 644,241 33,130 677,371 455,299

Interest and fiscal charges (4,872,294) (171,056) (5,043,350) -

Amortization 640,722 - 640,722 -

Gain (loss) on sale of capital assets 140,396 4,440 144,836 -

Total nonoperating revenues (expenses) (3,446,935) (133,486) (3,580,421) 455,299

Net income (loss) before transfers

and capital contributions 6,773,726 (23,681,407) (16,907,681) 5,399,118

Capital contributions 17,991,751 12,008,311 30,000,062 -

Total capital contributions 17,991,751 12,008,311 30,000,062 -

Transfers:

Transfers in 80,518 15,538,581 15,619,099 3,369

Transfers out (21,845,936) (650,938) (22,496,874) (972,128)

Total transfers (21,765,418) 14,887,643 (6,877,775) (968,759)

Changes in net position 3,000,059 3,214,547 6,214,606 4,430,359

Total net position - beginning, before restatement 1,339,072,606 117,239,248 1,456,311,854 33,304,835

Restatement (17,718,312) (468,401) (18,186,713) -

Total net position - beginning, after restatement 1,321,354,294 116,770,847 1,438,125,141 33,304,835

Total net position - ending $ 1,324,354,353 $ 119,985,394 $ 1,444,339,747 $ 37,735,194

Internal ServiceWater and

Sewer Fund

Other

Enterprise

Funds Total Fund

Business-type Activities - Enterprise Funds Governmental

Activities -

Cobb County, Georgia

Proprietary Funds

Statement of Revenues, Expenses and Changes in Fund Net Position

For the Fiscal Year Ended September 30, 2018

See accompanying notes to financial statements.

26

Cash flows from (to) operating activities:

Cash received from customers $ 200,991,091 $ 16,515,556 $ 217,506,647 $ 91,141,032

Cash payments for goods and services (102,729,640) (20,939,410) (123,669,050) (9,591,735)

Cash payments for employee services

and fringe benefits (30,922,281) (4,119,335) (35,041,616) (585,214)

Cash payments for benefits and claims - - - (60,397,341)

Net cash from (to) operating activities 67,339,170 (8,543,189) 58,795,981 20,566,742

Cash flows from (to) noncapital financing activities:

Transfers in 80,518 15,538,581 15,619,099 3,369

Transfers out (21,845,936) (650,938) (22,496,874) (972,128)

Net cash from (to) noncapital

financing activities (21,765,418) 14,887,643 (6,877,775) (968,759)

Cash flows from (to) capital and

related financing activities:

Proceeds from sale of capital assets 140,396 4,440 144,836 -

Payments for capital acquisitions (30,088,376) (11,609,933) (41,698,309) -

Bond principal payments (12,725,000) (535,000) (13,260,000) -

Capital contributions 9,930,488 7,062,492 16,992,980 -

Payments on notes (9,314,257) - (9,314,257) -

Interest and fiscal charges (8,492,376) (178,760) (8,671,136) -

Net cash from (to) capital and related

financing activities (50,549,125) (5,256,761) (55,805,886) -

Cash flows from investing activities:

Interest received 644,241 33,130 677,371 455,299

Net cash from investing activities 644,241 33,130 677,371 455,299

Net increase (decrease) in cash and

cash equivalents (4,331,132) 1,120,823 (3,210,309) 20,053,282

Cash and cash equivalents at beginning of year 77,574,682 4,041,006 81,615,688 27,624,325

Cash and cash equivalents at end of year $ 73,243,550 $ 5,161,829 $ 78,405,379 $ 47,677,607

Reconciliation to Statement of Net Position

Cash $ 22,625,550 $ 2,019,222 $ 24,644,772 $ 47,677,607

Cash (included in restricted assets) 50,618,000 3,142,607 53,760,607 -

$ 73,243,550 $ 5,161,829 $ 78,405,379 $ 47,677,607

Continued on next page.

Cobb County, Georgia

Proprietary Funds

Statement of Cash Flows

For the Fiscal Year Ended September 30, 2018

EnterpriseWater and

GovernmentalBusiness-type Activities - Enterprise Funds

Internal Service

Other Activities -

TotalSewer Fund Funds Fund

See accompanying notes to financial statements.

27

Business-type Activities - Enterprise Funds

Other

Total

Reconciliation of operating income (loss)

to net cash from operating activities:

Operating income (loss) $ 10,220,661 $ (23,547,921) $ (13,327,260) $ 4,943,819

Adjustments to reconcile operating income

(loss) to net cash from operating activities:

Depreciation 54,419,095 7,702,248 62,121,343 19,858

Change in assets and liabilities:

Decrease (increase) in accounts receivables (1,125,865) (132,653) (1,258,518) -

Decrease (increase) in accrued interest receivables (41) - (41) -

Decrease (increase) in other receivables 450,860 (33,862) 416,998 (89,762)

Decrease (increase) in due from other funds - (700,014) (700,014) 15,830,014

Decrease (increase) in due from other governments (12,223) - (12,223) -

Decrease (increase) in due from component unit - 6,128 6,128 -

Decrease (increase) in inventories (144,568) 4,392 (140,176) -

Decrease (increase) in deferred outflows related to OPEB (2,509,854) (69,862) (2,579,716)

Decrease (increase) in deferred outflows related to pension (6,332,033) (197,693) (6,529,726) -

Decrease (increase) in prepaid items 85 (43,678) (43,593) (81,171)

Increase (decrease) in accounts payable 2,139,852 8,806,298 10,946,150 89,948

Increase (decrease) in accrued payroll (6,227) 249,521 243,294 326

Increase (decrease) in accrued compensated absences 81,783 (9,982) 71,801 6,661

Increase (decrease) in due to other funds - (338,748) (338,748) -

Increase (decrease) in due to others - 38,893 38,893 -

Increase (decrease) in deposits payable 85,301 716,816 802,117 -

Increase (decrease) in due to

other governments (7,200) (29,783) (36,983) -

Increase (decrease) in estimated liability

for claims and judgments - - - (152,951)

Increase (decrease) in closure/postclosure care - (443,303) (443,303) -

Increase (decrease) in deferred inflows related to OPEB 885,937 24,660 910,597

Increase (decrease) in deferred inflows related to pension 614,716 18,514 633,230 -

Increase (decrease) in unearned revenues - (795,787) (795,787) -

Increase (decrease) in net OPEB liability 1,740,745 48,452 1,789,197

Increase (decrease) in net pension liability 6,838,146 184,175 7,022,321 -

Total adjustments 57,118,509 15,004,732 72,123,241 15,622,923

Net cash provided (used) by operating activities $ 67,339,170 $ (8,543,189) $ 58,795,981 $ 20,566,742

Schedule of noncash capital and related financing activities:

Contribution of capital assets $ 8,061,263 $ - $ 8,061,263 $ -

Total noncash capital and related financing activities $ 8,061,263 $ - $ 8,061,263 $ -

Supplemental disclosure of cashflow information:

Interest capitalized $ (3,518,053) - (3,518,053) -

Continued from preceding page.

Sewer Fund Funds

Water and Enterprise

Fund

For the Fiscal Year Ended September 30, 2018

Governmental

Statement of Cash Flows

Internal Service

Cobb County, Georgia

Activities -

Proprietary Funds

See accompanying notes to financial statements.

28

Trust Funds

Assets:

Cash and cash equivalents $ 228,569 $ 82,333,121

Investments, at fair value

Common stock 234,190,496 -

Mutual funds 462,838,503 -

Corporate Bonds 68,278,703 -

Government and agency bonds 18,399,681 -

Money market 13,952,359

Receivables

Taxes and penalties - 633,492,023

Accrued interest 909,733 -

-

Total assets 798,798,044 $ 715,825,144

Liabilities:

Unremitted tax collections due

to other governments and agencies - $ 44,689,355

Taxes payable to others upon

collection - 633,492,023

Unremitted payroll tax and

withholdings - 6,309,691

Funds held in trust for others - 31,334,075

Total liabilities - $ 715,825,144

Net position restricted for:

Pension benefits 672,787,107

Other post employment benefits 126,010,937

Total net position $ 798,798,044

Cobb County, Georgia

Fiduciary Funds

Statement of Fiduciary Net Position

September 30, 2018

Agency Funds

See accompanying notes to financial statements.

29

Trust Funds

Additions

Contributions:

Employer $ 67,095,829

Employee 13,941,429

Total contributions 81,037,258

Investment earnings:

Net appreciation (depreciation) in fair value of assets 53,291,521

Interest 14,136,351

Total investment earnings 67,427,872

Less investment expense (1,772,348)

Net investment earnings 65,655,524

Miscellaneous revenue 22,161

Total additions 146,714,943

Deductions

Administrative expenses 374,074

Benefits and claims 83,448,316

Total deductions 83,822,390

Change in net position 62,892,553

Net position

Beginning of year 735,905,491

End of year $ 798,798,044

Statement of Changes in Fiduciary Net Position

For the Fiscal Year Ended September 30, 2018

Cobb County, Georgia

Fiduciary Funds

See accompanying notes to financial statements.

30

COBB COUNTY, GEORGIA INDEX TO NOTES TO FINANCIAL STATEMENTS

September 30, 2018

Note Page Note Title Number Number

Arbitrage Liability 19 76

Budgetary Information 2 40-41

Capital Assets 5 46-47

Capital Contributions 20 76

Cash and Cash Equivalents and Investments 3 41-44

Closure and Postclosure Care Costs 21 76-77

Contingent Liabilities 14 63

Deferred Compensation Plan 15 63

Due From Other Governments and Agencies 16 64-65

Employee Retirement System 18 70-76

Fund Balance Determinations and Classifications 10 57-60

Hotel/Motel Lodging Tax 22 77

Interfund Balances and Transfers 13 62-63

Joint Venture 24 77-78

Leases 7 48-49

Long-Term Debt 9 50-57

Other Commitments 23 77

Other Post Employment Benefits 17 65-70

Property Taxes 11 60

Related Organization 25 78

Restricted Assets 4 45

Restatement 26 78

Risk Management 6 48

Short-Term Tax Anticipation Notes 8 49-50

Subsequent Events 27 78

Summary of Significant Accounting Policies 1 31-39

Tax Abatements 12 61

Cobb County, Georgia

Notes to Financial Statements

September 30, 2018

0Note 1. Summary of Significant Accounting Policies

The financial statements of Cobb County, Georgia have been prepared in conformity with generally accepted

accounting principles (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 more significant of the government’s accounting policies are described below.

A. Reporting Entity

The financial statements of the reporting entity include those of Cobb County, Georgia (the primary

government) and its component units. Blended component units are, in substance, part of the County’s

operations, even though they are legally separate entities. Thus, blended component units are appropriately

presented as funds of the primary government. The discretely presented component units are reported in

separate columns in the government-wide statements to emphasize they are legally separate from the

primary government.

1. Blended component units

The Cobb-Marietta Coliseum and Exhibit Hall Authority is a corporate and political body created and

existing under the laws of the State of Georgia. The Authority was established for the general purpose of

developing and promoting cultural growth, public welfare, education and recreation. The Authority operates

and maintains a multi-use exhibit hall and convention facility, a performing arts center, and a specialty mall

in Cobb County. The majority of the Authority’s board members are appointed, either directly or indirectly,

by the Cobb County Board of Commissioners. The Authority’s debt is expected to be paid almost entirely

with resources of the County. The Authority is prohibited from issuing bonded debt without the approval of

the Board of Commissioners. The fiscal year of the Authority is September 30th. Complete financial

statements of the Authority can be obtained directly from their administrative offices at Cobb-Marietta

Coliseum and Exhibit Hall Authority, Two Galleria Parkway, Atlanta, Georgia 30339.

The South Cobb Redevelopment Authority’s (SCRA) purpose is to revitalize and redevelop areas that have

been underinvested or underutilized in the past. The overall intent is to promote and create favorable

location for trade, commerce, industry, and employment opportunities. The SCRA has the authority to issue

bonds to assist in financing infrastructure improvements that will foster economic growth and vitality in

South Cobb. The SCRA Board consists of seven members, four of which are appointed by the Cobb County

Board of Commissioners and each member serves a four year term. The Authority’s debt is expected to be

paid almost entirely with resources of the County. The fiscal year of the Authority is September 30th.

2. Discretely presented component units

The Cobb County Board of Health was created by a state legislative act. During the fiscal year ended June

30, 2018, it operated under an eight member board and a full-time executive director. The Board of Health

was established to provide various health related programs such as immunization, family planning, dental

treatment, and nutrition services. The members of the Board of Health are jointly appointed by the County

Commissioners, one municipality and two school districts. The Board of Health’s operational budget must

be approved by the Board of Commissioners. The information presented for the Cobb County Board of

Health is as of and for the year ended June 30, 2018. Complete financial statements of the Board of Health

can be obtained directly from their administrative offices at Cobb County Board of Health, 1650 County

Services Parkway, Marietta, Georgia 30008.

31

Cobb County, Georgia

Notes to Financial Statements

September 30, 2018

Note 1. Summary of Significant Accounting Policies (Continued)

B. Government-Wide Statements 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 the nonfiduciary activities of the primary government and its component units. As

a general rule, the effect of interfund activity has been eliminated from the government-wide financial

statements. Exceptions to this general rule are charges between the government’s water functions and

various other functions of the government. Elimination of these charges would distort the direct costs and

program revenues reported for the various functions concerned. Governmental activities, which normally are

supported by taxes and intergovernmental revenues, are reported separately from business-type activities,

which rely to a significant extent on fees and charges for support. Likewise, the primary government is

reported separately from certain legally separate component units for which the primary government is

financially accountable.

In the government-wide Statement of Net Position, both the governmental and business-type activities

columns are presented on a consolidated basis by column, and are reflected on a full accrual, economic

resource basis which recognizes all long-term assets and receivables as well as long-term debt and

obligations. The County’s net position is reported in three parts – net investment in capital assets; restricted

net position; and unrestricted net position.

The government-wide Statement of Activities reports both the gross and net cost of each of the County’s

functions and business-type activities. The functions are also supported by general governmental revenues

which include taxes, interest revenue and other items not properly included among program revenues. The

Statement of Activities reduces gross expenses (including depreciation) by related program revenues,

operating and capital grants. Program revenues include charges to customers for goods, services or

privileges provided, operating grants and contributions, and capital grants and contributions. Program

revenues must be directly associated with the function or business-type activity. Operating grants include

operating-specific and discretionary grants while the capital grants reflect capital-specific grants. The net

cost (by function or business-type activity) is normally covered by general revenue.

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. Major individual

governmental funds and major individual enterprise funds are reported as separate columns in the fund

financial statements.

C. Measurement focus, basis of accounting, and financial statement presentation

The measurement focus describes the type of transactions and events that are reported in a fund’s operating

statement. Basis of accounting refers to the point at which revenues or expenditures/expenses are recognized

in the accounts and reported in the financial statements. It relates to the timing of the measurements made,

regardless of the measurement focus applied.

The government-wide financial statements are reported using the economic resources measurement focus

and the accrual basis of accounting, as are the proprietary and fiduciary funds financial statements. The

agency funds financial statements are reported using no measurement focus.

Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are

recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

32

Cobb County, Georgia

Notes to Financial Statements

September 30, 2018

Note 1. Summary of Significant Accounting Policies (Continued)

The emphasis in fund financial statements is on major funds in either the governmental or business-type

activity categories. Nonmajor funds by category are summarized into a single column. GASB Statement No.

34 sets forth minimum criteria (percentage of assets and deferred outflows of resources, liabilities and

deferred inflows of resources, revenues or expenditures/expenses of either fund category or the

governmental and enterprise categories combined) for the determination of major funds. County

management may electively add funds as major funds, when it is determined the funds have specific

community or management focus.

The focus of the governmental funds’ measurement in the funds’ statement is upon determination of

financial position and changes in financial positions (sources, uses, and balances of financial resources)

rather than upon net income. Governmental funds 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 available when they

are collectible within the current period or soon enough thereafter to pay liabilities of the current period. The

County considers all revenue except intergovernmental revenue as available if it is collected within 60 days

after year-end. Intergovernmental revenue is considered available if it is collected within 9 months after year

end. Expenditures are recorded when the related fund liability is incurred. Principal and interest on general

long-term debt are recorded as fund liabilities when due or when amounts have been accumulated in the

debt service fund for payments to be made within thirty days subsequent to year end.

Those revenues susceptible to accrual are property taxes, sales taxes, licenses, interest revenue and charges

for services. Sales taxes collected and held by the state at year-end on behalf of the government also are

recognized as revenue. Fines are not susceptible to accrual because generally they are not measurable until

received in cash.

The County uses the following major funds:

1. Major Funds:

A. Governmental Funds: 1. The General Fund is the government’s primary operating fund. It accounts for all financial

resources of the general government, except those required to be accounted for in another fund.

2. The Fire District Fund is used to account for monies received from a specific property tax

levy and the operation of the fire department within the County.

3. The SPLOST Fund is used to account for the proceeds of a 1 percent local option sales tax for

various capital projects throughout the County. 1B1B1B

B. Business-type Funds:

The Water and Sewer Fund accounts for the operating revenues and expenses of the water

distribution system and sewage processing plants.

2. Internal Service Fund:

The Claims Internal Service Fund provides self-funding for casualty, liability, medical and

dental claims and workmen’s compensation.

33

Cobb County, Georgia

Notes to Financial Statements

September 30, 2018

Note 1. Summary of Significant Accounting Policies (Continued)

3. Fiduciary Fund Types:

A. Agency Funds account for Clerk of State Court, Clerk of Juvenile Court, Sheriff, Clerk of Superior Court, Clerk of Probate Court, Tax Commissioner, Accounts Payable Fund, Payroll

Fund, and Child Support, Witness and Juror’s Fees are accounted for on the accrual basis of

accounting and are used for assets held by the government as an agent for individuals, private

organizations, and other governments.

B. The Pension and OPEB Trust Funds are used to account for activities related to the public employees’ retirement system and other post-employment benefits in a defined benefit plan.

The County maintains Employee Retirement System Trust Funds that accounts for the

accumulation of resources for pension and OPEB benefit payments to eligible employees.

The focus for proprietary fund measurement is upon determination of operating income, changes in net

position, financial position and cash flow. 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. Operating expenses for the enterprise funds and the internal service fund include the cost of

sales and services, administrative expenses, and depreciation of capital assets. All revenues and

expenses not meeting this definition are reported as nonoperating revenues and expenses. The generally

accepted accounting principles applicable are those similar to business in the private sector.

The County’s Internal Service Fund is presented in the proprietary funds financial statements. Because

principal users of internal services are the County’s governmental activities, the financial statement of

the Internal Service Funds are consolidated into the Governmental column when presented in the

government-wide financial statements. To the extent possible, the costs of these services are reported in

the appropriate functional activity.

The County’s fiduciary funds are presented in the fiduciary fund financial statements by type. Since by

definition, these assets are held for the benefit of a third party and cannot be used to address activities or

obligations of the County, these funds are not incorporated into the government-wide statements.

When both restricted and unrestricted resources are available for use, it is the County’s policy to use

restricted resources first and then unrestricted resources as available.

D. Budgets

Budgets are adopted on a basis consistent with generally accepted accounting principles except

encumbrances are treated as budgeted expenditures in the year of the incurrence of the commitment to

purchase. Accordingly, encumbrances are included as budgetary expenses in two different years. Annual

appropriated budgets are adopted for the General Fund, the CMCEHA Debt Service Fund, the BOC Debt

Service Fund, and all the Special Revenue Funds except project-length budgets are adopted for the Grant

Fund and the Housing and Urban Development Grant Fund. Project-length financial plans are adopted for

the Capital Projects Funds. All encumbered appropriations are carried forward in the following year’s

budget.

34

Cobb County, Georgia

Notes to Financial Statements

September 30, 2018

Note 1. Summary of Significant Accounting Policies (Continued)

Encumbrances represent commitments related to unperformed contracts for goods or services. Encumbrance

accounting – under which purchase orders, contracts and other commitments for the expenditure of

resources are recorded to reserve that portion of the applicable appropriation – is utilized in the

governmental funds. Encumbrances outstanding at year-end do not constitute expenditures or liabilities

because the commitments will be honored during the subsequent year. See Note 23 for additional

information about encumbrances.

E. Cash and Cash Equivalents and Investments

For purposes of the statement of cash flows, the proprietary fund type considers all highly liquid

investments with a remaining maturity of three months or less when purchased to be cash equivalents.

Cash includes amounts in demand deposits, certificates of deposit, and money market accounts. Statutes

authorize the County to invest in U.S. Government obligations, U.S. Government agency obligations, State

of Georgia obligations of other counties, municipal corporations and political subdivisions of the State of

Georgia which are rated “AA” or better by Moody’s Investors Service, Inc., negotiable certificates of

deposit issued by any bank or trust company organized under the laws of any state of the United States of

America or any national banking association, repurchase agreements when collateralized by U.S.

Government or agency obligations, and pooled investment programs sponsored by the State of Georgia for

the investment of local government funds. The Pension Trust Fund is also authorized to invest in corporate

bonds, domestic common stocks, equity real estate, and international common stocks through pooled

investment accounts.

The County’s investment policy is to apply the “prudent person" standard and shall be applied in the context

of managing an overall portfolio. The "prudent person" standard is herewith understood to mean the

following: "Investments shall be made with judgment and care, under circumstances then prevailing, which

persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for

speculation, but for investment, considering the probable safety of their capital as well as the probable

income to be derived."

It is also the policy of Cobb County to purchase securities only from those broker/dealers and banks that are

included on the County's bid list as approved by the Finance Director-Comptroller. The approved list will

be developed in accordance with these Investment Policies.

Funds of Cobb County will be invested in compliance with the provisions of Georgia Code Section 36-83-4

and in accordance with these policies and written administrative procedures. Certain funds have outstanding

bond issues which have specific investment policies contained within the bond ordinances and official

statements. Those policies will be adhered to and are not in conflict with the terms of the investment policy. 3B3B3B

In accordance with GASB 31, investments are stated at fair value. Fair value of the external investment

pool, Georgia Fund 1, is equal to the value of the pool shares. See Note 3 for additional information

regarding cash and investments.

35

Cobb County, Georgia

Notes to Financial Statements

September 30, 2018

Note 1. Summary of Significant Accounting Policies (Continued)

F. Restricted Assets

Certain proceeds of the County’s governmental and business-type revenue bonds, as well as certain

resources set aside for their repayment, are classified as restricted assets because they are maintained in

separate accounts and their use is limited by applicable bonds covenants.

The assets in the County’s Fire District and SPLOST funds includes cash restricted for construction. The

assets in the nonmajor special revenue funds include cash restricted for the purposes of the fund and for

asset renewals and replacements. The SCRA Construction Fund’s cash is restricted for construction and

redevelopment in the Six Flags Special Purpose District. The restricted assets in the County’s Parks Bond

Land Acquisition and Stadium Construction capital project funds are restricted for construction. The

CMCEHA Stadium Construction Fund’s cash is bond proceeds held in a separate account until monies are

spent according to bond covenants. The CMCEHA Debt Service Fund’s and the BOC Debt Service Fund’s

cash is restricted for future debt service requirements.

The County’s restricted assets in the Water and Sewer Enterprise Fund includes cash and customer deposits

which are held in a separate account until monies are spent according to the bond covenants. Deposits from

event ticket sales and monies for debt service are restricted cash in the Performing Arts Centre and are

remitted to the promoter or performers upon settlement following the event. The Galleria Specialty Shops

Fund’s restricted assets are security deposits from shop tenants and are returned to the tenants upon

termination of their lease.

See Note 4 for additional information regarding restricted assets.

G. Interfund Receivables/Payables

Activities between funds that are representative of lending/borrowing arrangements outstanding at the end

of the fiscal year are referred to as either “due to/from other funds” (i.e., the current portion of interfund

loans) or “advances to/from other funds” (i.e., non-current portion of interfund loans). All other outstanding

balances between funds are reported as “due to/from other funds.” Advances between funds, as reported in

the fund financial statements, are offset by a fund balance reserve account in the applicable governmental

fund to indicate that they are not available for appropriation and are not expendable available financial

resources. Any residual balances outstanding between the governmental activities and business-type

activities are reported in the government-wide financial statements as “internal balances.”

H. Inventories

Inventories are valued at cost in the Governmental Fund types and at the lower of cost (first-in, first-out) or

market in the Proprietary Fund types. Inventories in the Governmental funds and Enterprise funds consist of

expendable supplies held for consumption and items needed for repairs or improvements to the utility

system.

The cost is recorded as an asset at the time the individual items are purchased. Reported inventories in the

Governmental funds are equally offset by a fund balance reserve, which indicates that they do not constitute

“available spendable resources” even though they are a component of net current assets. The consumption

method is used to account for inventories within the County’s governmental and proprietary fund types.

36

Cobb County, Georgia

Notes to Financial Statements

September 30, 2018

Note 1. Summary of Significant Accounting Policies (Continued)

I. Prepaid Items

Payments made to vendors for services that will benefit periods beyond September 30, 2018 are recorded as

prepaid items in both the government-wide and fund financial statements. The cost of prepaid items is

recorded as expenditures/expenses when consumed rather than when purchased.

J. Capital Assets

Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, bridges,

sidewalks, and similar items), are reported in the applicable governmental or business-type activities

columns in the government-wide financial statements. Capital assets are defined by the government as assets

with an initial, individual cost of more than $5,000 and an estimated useful life in excess of two years. Such

assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital

assets are recorded at acquisition value at the date of donation. 4B 4B4B

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. Improvements are capitalized and depreciated over the remaining useful lives.

Interest incurred during the construction phase of capital assets of business-type activities is included as part

of the capitalized value of the assets constructed. The County has fully implemented the retroactive

reporting of infrastructure.

Capital assets of the primary government, as well as the component unit, are depreciated using the straight

line method over the following useful lives:

UAssets UYears

Buildings and structures 25 – 50

Improvements other than buildings 20

Machinery and equipment 4 – 10

Sewerage Plants 10 – 50

Infrastructure 10 – 50

K. Compensated Absences

All vacation pay is accrued when incurred in the government-wide and proprietary fund financial

statements. A liability for these amounts is reported in the governmental funds only if they have matured,

for example, as a result of employee resignations and retirements.

Accumulated sick pay benefits have not been recorded as a liability because the payment of the benefits is

contingent upon the future illness of an employee. It is not expected that any unrecorded sick pay benefits

will exceed a normal year’s accumulation.

In accordance with the provisions of Statement of Financial Accounting Standards No. 16, “Accounting for

Compensated Absences,” no liability is recorded for nonvesting accumulating rights to receive sick pay

bonuses.

37

Cobb County, Georgia

Notes to Financial Statements

September 30, 2018

Note 1. Summary of Significant Accounting Policies (Continued)

L. Long-term Obligations

In the government-wide financial statements and proprietary fund types 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 type Statement of Net Position. Bond premiums and

discounts are deferred and amortized over the life of the bonds. Bonds payable are reported net of applicable

bond premiums or discounts. Bond issuance costs are recognized as an outflow of resources in the reporting

period in which they are incurred.

Debt refunding gains and losses are reported as deferred inflows or outflows of resources on the statements

of net position. These gains and losses are deferred and amortized over the shorter of the life of the

refunding debt (new debt) and the refunded debt (the old debt).

In the fund financial statements, governmental fund types 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.

M. Categories and Classifications of Fund Balance

The County implemented GASB 54 during fiscal year 2010 [34B32BNote 10. Fund Balance Determinations and

Classifications]. This statement establishes fund balance classifications that comprise a hierarchy based

primarily on the extent to which the County is bound to honor constraints imposed upon the use of the

resources reported in governmental funds. Fund balance classifications, under GASB 54, are Nonspendable,

Restricted, Committed, Assigned, and Unassigned.

N. Interfund Transactions

All interfund services provided and used are reported as transfers.

O. Contributed Capital and Capital Contributions – Proprietary Funds

Grants, entitlements and shared revenues restricted for the acquisition or construction of capital assets were

recorded as contributed capital prior to the implementation of GASB 33, Accounting and Financial

Reporting for Nonexchange Transactions. As required by GASB 33, the County has recognized capital

contributions as revenue rather than as contributed capital.

38

Cobb County, Georgia

Notes to Financial Statements

September 30, 2018

Note 1. Summary of Significant Accounting Policies (Continued)

P. Net Position

The net position represents the difference between assets and deferred outflows of resources and liabilities

and deferred inflows of resources. The net position component, net investment in capital assets, consists of

capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowing used

(i.e., the amount that the County has not spent) for the acquisition, construction or improvement of those

assets. The net position is reported as restricted when there are limitations imposed by creditors, grantors,

contributors or laws or regulations of other governments. The balance of the net position is reported as

unrestricted.

Q. 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 until then. The County has three items that qualify for reporting in this category. They are the

deferred charge on refunding reported in the government-wide statement of net position, the deferred

outflows of resources relating to pension and the deferred outflows of resources relating to OPEB reported

in the government-wide and proprietary funds Statements 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 reports 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(s) and so will not be recognized as an inflow of resources

(revenue) until that time. The County has three items that qualify for reporting in this category in the

government-wide and proprietary funds statements of net position and one item in the governmental funds

balance sheet. Deferred gains on refunding are reported as deferred inflows of resources in the statements of

net position, the deferred inflows of resources relating to pension and the deferred inflows of resources

relating to OPEB reported in the government-wide and proprietary funds statements of net position. The

governmental funds report unavailable revenues from property taxes as deferred inflows of resources in the

governmental fund balance sheet. These amounts are deferred and recognized as inflows of resources in the

period that the amounts become available.

R. Management 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 reported

amounts of assets, deferred outflow of resources, liabilities, deferred inflows of resources, and the disclosure

of contingent liabilities at the date of the financial statements, and the reported amounts of revenues and

expenses during the reporting period. Actual results could differ from those estimates.

6B6B6B

39

Cobb County, Georgia

Notes to Financial Statements

September 30, 2018

Note 2. Budgetary Information

The County follows these procedures in establishing the budgetary data reflected in the financial statements:

A. Prior to August 1, the Chairman of the Board of Commissioners and the County Manager submit to the Board of Commissioners a proposed operating budget and capital projects budget for the fiscal year

commencing the following October 1. The operating and capital projects budgets include proposed

expenditures and the means of financing them.

B. Public hearings are conducted to obtain taxpayer comments.

C. At a date no later than the second Board meeting of September, the budget is formally approved.

D. All budget transfers must be approved by the Budget Administrator, County Manager and/or the Board of Commissioners depending on the type and/or amount of expenditure:

1

2

3

4

5

6

From overtime and part-time to operating and capital or between overtime and part-

time.

Within operating expenditures in a department.

Approval Required

Budget Administrator

Budget Administrator

Budget Administrator

Budget Administrator

No budget transfers are to be made between the regular salaries and overtime and part-time budget or the operating

expenditures budget in a department without Board approval.

No budget transfers are to be made between the regular salaries and overtime and part-time budget or the capital

budget in a department without Board approval.

From operating expenditures to capital.

From capital to operating expenditures.

Budget Transfer

The legal level of control (the level at which expenditures may not legally exceed appropriations) for each

legally adopted annual operating budget is at the category level within departments.

Formal budgetary integration is employed as a management control device during the year for the General

and Debt Service Funds. Annual budgets are also adopted for the Fire District, Law Library, Community

Services, Hotel/Motel Tax, Emergency 911, Parking Deck Facility, 800 MHz, Streetlight District, Six Flags Special Purpose District, Cumberland Special Service District 1, Cumberland Special Service District 2,

CMCEHA, Stadium Capital Maintenance Fund Special Revenue Funds, and the CMCEHA Debt Service

Fund. The Grant Fund and Housing and Urban Development Special Revenue Funds have project length

adopted budgets that differ from the County’s fiscal year end. Budgets for the General, Debt Service and

certain Special Revenue funds are adopted on the modified accrual basis except that encumbrances are

treated as budgetary expenditures in the year of the incurrence of the commitment to purchase. Actual

GAAP expenditures have been adjusted to the non-GAAP budgetary basis for budgetary comparison within

this report. Because there were no encumbrances outstanding at the end the year in the CMCEHA Debt

Service Fund, BOC Debt Service Fund, Community Service Fund, Hotel Motel Fund, 800MHz Fund,

Streetlight District, Six Flags Special Service District, Cumberland Special Service District 1, Cumberland

Special Service District 2, CMCEHA Fund, and the Stadium Capital Maintenance Fund the budgets for

these funds are presented on a GAAP basis.

40

Cobb County, Georgia

Notes to Financial Statements

September 30, 2018

Note 2. Budgetary Information (Continued)

Budgeted amounts are as originally adopted, or as amended, by the Board of Commissioners. Individual

amendments were not material in relation to the original appropriations that were amended. Unencumbered

appropriations lapse at year-end. There were no material supplementary appropriations made during the

year.

The actual results of operations on the budgetary basis are presented in the Statement of Revenues,

Expenditures and Changes in Fund Balances – Budget and Actual (Budgetary Basis) for the General, and

the major Special Revenue funds in order to provide a meaningful comparison of actual results with the

budget. Schedules of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual are

presented as supplementary information for certain nonmajor governmental funds. The major difference

between the budget basis and GAAP is that encumbrances are recognized as expenditures for budgetary

purposes. All encumbered appropriations are carried forward in the following year’s budget. Accordingly,

encumbrances are included as budgetary expenses in two different years. Adjustments necessary to convert

the results of operations and fund balances at the end of the year on the budgetary basis to the GAAP basis

are as follows:

$ 33,838,202 $ (6,447,606) $ 10,545,208

6,132,031 8,261,214 35,494

- - (1,855,144)

$ 39,970,233 $ 1,813,608 $ 8,725,558

$ 123,983,739 $ 27,389,602 $ 49,188,197

6,132,031 8,261,214 35,494

- - 1,026,304

$ 130,115,770 $ 35,650,816 $ 50,249,995

Fund Revenue Funds

Excess (Deficiency) of Revenues

and Other Sources Over

Expenditures and Other Uses

General Fire District Nonmajor Special

Budgetary Basis

Encumbrances 9/30/18

Grant-length Plans

GAAP Basis

Fund

Fund Revenue Funds

Fund Balances at End of Year

General Fire District Nonmajor Special

Budgetary Basis

Encumbrances 9/30/18

Grant-length Plans

GAAP Basis

Fund

Note 3. Cash and Cash Equivalents and Investments

Concentration of Credit Risk

No more than 40% of the entire invested portfolio may be placed with any one bank or security dealer. The

longer the maturity of a particular investment, the greater its susceptibility to market price and credit losses. The

County seeks to limit such risk by maintaining conservative maturities that are within guidelines

41

Cobb County, Georgia

Notes to Financial Statements

September 30, 2018

Note 3. Cash and Cash Equivalents and Investments (Continued)

recommended by the Government Finance Officers Association (GFOA). These guidelines generally

recommend avoiding securities with maturities beyond five years unless the investment is matched and held to a

specific maturity.

Custodial credit risk – deposits and investments

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 deposits or will not be able to recover collateral securities that are in the

possession of an outside party. The County limits its exposure to custodial credit risk by requiring deposits and

investments to be collateralized in accordance with State law. At September 30, 2018 the County was not

exposed to custodial credit risk.

Investments are made in accordance with state law and the County’s Investment Policy that requires investments

be acquired on a “delivery vs. payment” basis, thereby providing maximum protection to the County.

As of September 30, 2018, the County's reporting entity had the following investments:

Type of Investment Rating Fair Value

Less than 1 1-5 6-10 More than 10

PRIMARY GOVERNMENT

Georgia Fund I AAA $ 204,575,230 204,575,230$ -$ -$ -$

U.S. Agencies AAA 93,004,044 39,392,118 53,611,926 - -

Money Market Mutual Funds 517,450 517,450 - - -

Total Primary Government (non-fiduciary) $ 298,096,724 $ 244,484,798 $ 53,611,926 $ - $ -

FIDUCIARY FUNDS

Pension Trust Fund:

Common Stocks $ 201,577,112 n/a n/a n/a n/a

Mutual Funds 386,220,489 386,220,489 - - -

Bond Corp. AAA 1,349,849 - 1,059,711 290,138 -

AA 5,824,057 1,017,535 3,815,263 279,941 711,318

A 31,650,233 3,599,824 15,582,002 7,393,427 5,074,980

BBB 14,855,939 771,408 7,405,480 4,293,628 2,385,423

Government and Agency Bonds Not Rated 18,399,681 - 2,920,159 6,730,624 8,748,898

Georgia Fund I AAA 228,569 228,569 - - -

Money Market 11,847,029 11,847,029 - - -

Total Pension Trust Fund $ 671,952,958 $ 403,684,854 $ 30,782,615 $ 18,987,758 $ 16,920,619

Investment Maturities (in Years)

OPEB Trust Fund:

Common Stocks $ 32,613,384 n/a n/a n/a n/a

Mutual Funds 76,618,014 76,618,014 - - -

Money Market 2,105,330 2,105,330 - - -

Bond Corp. AAA 304,812 - 263,896 - 40,916

AA 4,338,797 198,916 644,294 1,477,090 2,018,497

A 6,505,308 281,744 3,813,284 1,574,568 835,712

BBB 3,449,708 598,640 1,700,810 773,110 377,148

Total OPEB Trust Fund $ 125,935,353 $ 79,802,644 $ 6,422,284 $ 3,824,768 $ 3,272,273

42

Cobb County, Georgia

Notes to Financial Statements

September 30, 2018

Note 3. Cash and Cash Equivalents and Investments (Continued)

Investments of the primary government and fiduciary funds include $205,092,680 and $228,569, respectively,

grouped in cash and cash equivalents and exclude $2,200,000 of nonnegotiable certificates of deposits of the

primary government.

Credit Risk – Investments

As of September 30, 2018 the County’s investment in U.S. Agencies that are implicitly guaranteed were as

follows: Federal National Mortgage Association $7,956,614, Federal Home Loan Bank $33,994,808, Federal

Home Loan Mortgage Corporation $14,625,109, Federal Farm Credit Banks $26,519,738, and United States

Treasury $9,907,775. All of the U.S. Agencies that the County has investments with are rated AAA.

Interest Rate Risk – Investments

As a means of limiting its exposure to fair value losses arising from rising interest rates, the County’s investment

policy limits the pension investments to the following maximum percentages: Domestic securities 65%, Non-

domestic securities 15%, and Fixed income investments and Cash 40%.

The Office of State Treasurer is the oversight agency for Georgia Fund I.

The County categorizes its fair value measurements within the fair value hierarchy established by generally

accepted accounting principles. Fair value is the exchange price that would be received for an asset (exit price) in

the principal or most advantageous market for an asset in an orderly transaction between market participants on

the measurement date. There are three levels of inputs that may be used to measure fair values:

Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets that the County has the

ability to access.

Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset in active

markets, as well as inputs that are observable for the asset (other than quoted prices), such as interest rates,

foreign exchange rates and yield curves that are observable at commonly quoted intervals.

Level 3 inputs are unobservable inputs for the asset which are typically based on the County’s own assumptions,

as there is little, if any, related market activity.

43

Cobb County, Georgia

Notes to Financial Statements

September 30, 2018

Note 3. Cash and Cash Equivalents and Investments (Continued)

The County’s recurring fair value measurements as of September 30, 2018 are as follows:

13B12B11B 14B

Level 1 Level 2 Level 3

PRIMARY GOVERNMENT

US Agencies 93,004,044$ -$ 93,004,044$ -$

Money Market Mutual Funds 517,450 517,450 - -

Total Primary Government (non-fiduciary) 93,521,494$ 517,450$ 93,004,044$ -$

FIDUCIARY FUNDS

Pension Trust Fund:

Common Stocks 201,577,112$ 201,577,112$ -$ -$

Mutual Funds 386,220,489 386,220,489 - -

Bond Corp. 53,680,078 - 53,680,078 -

Government and Agency Bonds 18,399,681 - 18,399,681 -

Total Pension Trust Fund 659,877,360$ 587,797,601$ 72,079,759$ -$

OPEB Trust Fund:

Common Stocks 32,613,384$ 32,613,384$ -$ -$

Mutual Funds 76,618,014 76,618,014 - -

Bond Corp. 14,598,625 - 14,598,625 -

Total OPEB Trust Fund 123,830,023$ 109,231,398$ 14,598,625$ -$

Fair Value Measurement Using

44

Cobb County, Georgia

Notes to Financial Statements

September 30, 2018

Note 4. Restricted Assets

Restricted assets at September 30, 2018 are as follows:

Governmental Activities

Fire District Fund:

Restricted for construction 2,706$

SPLOST Fund:

Restricted for construction 179,753,320

Nonmajor Special Revenue Funds:

Restricted for renewal and expansion 19,398,080

Restricted for debt service 3,849,803

Restricted for special programs 17,448,099

Nonmajor Capital Project Funds:

Restricted for construction 3,439,290

Nonmajor Debt Service Funds:

Restricted for debt service 13,696,176

Total governmental activities 237,587,474$

Business-type Activities

Water and Sewer Fund:

Customer deposits 6,789,833$

Unspent bond proceeds 393,163

Restricted for renewal and expansion 43,435,004

Nonmajor Enterprise Funds:

Security deposits 46,146

Ticket sales deposits 2,456,473

Restricted for debt service 639,988

Total business-type activities 53,760,607$

45

Cobb County, Georgia

Notes to Financial Statements

September 30, 2018

5B 14B1Note 5. Capital Assets

Capital asset activity for the year ended September 30, 2018 was as follows:

Governmental activities:

Capital assets, not being depreciated:

Land $ 1,086,932,163 $ 69,466,786 $ - $ 1,156,398,949

Construction in progress 294,813,534 128,376,138 (300,764,518) 122,425,154

Total capital assets, not being depreciated $ 1,381,745,697 $ 197,842,924 $ (300,764,518) $ 1,278,824,103

Capital assets, being depreciated:

Buildings $ 1,139,110,745 $ 73,280,921 $ (566,708) $ 1,211,824,958

Improvements other than buildings 58,196,969 132,038,155 - 190,235,124

Machinery and equipment 343,803,632 20,211,875 (6,368,801) 357,646,706

Infrastructure 2,807,622,068 91,847,956 - 2,899,470,024

Total capital assets, being depreciated $ 4,348,733,414 $ 317,378,907 $ (6,935,509) $ 4,659,176,812

Less accumulated depreciation for:

Buildings $ (197,445,082) $ (31,739,477) $ 452,833 $ (228,731,726)

Improvements other than buildings (25,150,111) (4,001,136) - (29,151,247)

Machinery and equipment (268,210,303) (21,951,874) 6,050,817 (284,111,360)

Infrastructure (1,256,451,972) (71,733,470) - (1,328,185,442)

Total accumulated depreciation $ (1,747,257,468) $ (129,425,957) $ 6,503,650 $ (1,870,179,775)

Total capital assets, being depreciated, net 2,601,475,946 187,952,950 (431,859) 2,788,997,037

Governmental activities capital assets, net $ 3,983,221,643 $ 385,795,874 $ (301,196,377) $ 4,067,821,140

Beginning

Balance

Ending

Increases Decreases Balance

46

Cobb County, Georgia

Notes to Financial Statements

September 30, 2018

16B 15B1Note 5. Capital Assets (Continued)

Ending

Increases Decreases Balance Business-type activities:

Capital assets, not being depreciated:

Land and improvements $ 84,081,750 $ 672,308 $ - $ 84,754,058

Artwork 198,750 - - 198,750

Construction in progress 396,360,567 30,802,426 (391,882,032) 35,280,961

Total capital assets, not being depreciated $ 480,641,067 $ 31,474,734 $ (391,882,032) $ 120,233,769

Capital assets, being depreciated:

Buildings and structures $ 158,427,381 $ 379,292 $ - $ 158,806,673

Sewerage plants 844,335,287 390,192,363 - 1,234,527,650

Machinery and equipment 117,024,203 13,683,827 (1,384,497) 129,323,533

Infrastructure:

Sewer lines 565,806,335 5,900,240 - 571,706,575

Water lines and meters 495,582,846 3,529,201 - 499,112,047

Total capital assets, being depreciated $ 2,181,176,052 $ 413,684,923 $ (1,384,497) $ 2,593,476,478

Less accumulated depreciation for:

Buildings and structures $ (45,782,892) $ (3,709,322) $ - $ (49,492,214)

Sewerage plants (372,626,638) (29,638,787) - (402,265,425)

Machinery and equipment (76,985,211) (6,183,988) 1,384,497 (81,784,702)

Infrastructure:

Sewer lines (237,100,597) (10,939,275) - (248,039,872)

Water lines and meters (206,627,851) (11,649,971) - (218,277,822)

Total accumulated depreciation $ (939,123,189) $ (62,121,343) $ 1,384,497 $ (999,860,035)

Total capital assets, being depreciated, net 1,242,052,863 351,563,580 - 1,593,616,443

Business-type activities capital assets, net $ 1,722,693,930 $ 383,038,314 $ (391,882,032) $ 1,713,850,212

Beginning

Balance

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

Governmental activities:

General government $ 9,396,602

Public safety 18,432,377

Public works 74,927,014

Health and welfare 117,308

Culture and recreation 25,668,742

Housing and development 864,056

Capital assets held by the government's internal service fund are

charged to the various function based on their usage of the assets 19,858

Total depreciation expense - governmental activities $ 129,425,957

Business-type activities:

Water and Sewer $ 54,419,095

Cobblestone Golf Course 32,548

Public Transit System 4,924,831

Solid Waste Disposal 399,773

Performing Arts Centre 2,154,007

Galleria Specialty Shops 191,089

Total depreciation expense - business-type activities $ 62,121,343

47

Cobb County, Georgia

Notes to Financial Statements

September 30, 2018

Note 6. Risk Management

The County established a risk management program for casualty, liability and medical claims in 1985.

Premiums are paid into the Claims Internal Service Fund by other funds and are available to pay claims and

administrative costs. The County is self-insured up to $650,000 per occurrence for workers’ compensation.

Amounts exceeding this are covered by an excess workers’ compensation policy. Over the past several years, the

County has increased various coverage limits. The County’s current coverage limits are as follows:

$750,000,000 in property insurance, $10,000,000 in aviation liability, $5,000,000 in crime coverage, $3,000,000

in privacy/cyber liability, $20,000,000 in fiduciary coverage. The County is self-funded for automobile and

general liability claims up to $2,000,000. The County has $20,000,000 in excess liability coverage for liability

claims above the self-funded amount.

The County has not experienced any significant decreases in insurance coverage from the previous year nor has

it paid any settlements in excess of insurance coverage in the past three fiscal years. Liabilities are reported when

it is probable that a loss has occurred and the amount of the loss can reasonably be estimated. Liabilities include

an amount for claims that have been incurred but not reported. Incurred but not reported claims of $13,872,117

have been accrued as a liability in the Claims Internal Service Fund based primarily upon a County and actuary’s

estimate. The entire liability is estimated to be current. Interfund premiums are based primarily upon the insured

funds’ claims experience.

18B 17B16

September 30

2009 13,526,910$ 39,263,098$ 42,701,479$ 10,088,529$

2010 10,088,529 46,505,221 44,698,738 11,895,012

2011 11,895,012 47,962,483 45,824,572 14,032,923

2012 14,032,923 46,067,749 46,601,163 13,499,509

2013 13,499,509 46,199,945 48,190,147 11,509,307

2014 11,509,307 53,910,949 53,309,281 12,110,975

2015 12,110,975 54,121,966 53,089,267 13,143,674

2016 13,143,674 58,198,314 56,912,384 14,429,604

2017 14,429,604 58,594,744 58,999,280 14,025,068

2018 14,025,068 60,244,390 60,397,341 13,872,117

Balance Incurred Paid Balance

Beginning Claims Claims Ending

9B1Note 7. Leases

A. Operating Leases

The County has several operating leases for equipment that are not material.

B. Capital Leases

Cobb County is obligated under capital leases initiated in current and prior years covering various types of

equipment and building improvements.

48

Cobb County, Georgia

Notes to Financial Statements

September 30, 2018

9B 1Note 7. Leases (Continued)

The assets acquired through capital leases are as follows:

Total

Governmental

Activities

Building $ 738,117

Machinery and equipment 10,272,153

Less: Accumulated depreciation (8,318,465)

Total $ 2,691,805

Amortization expense of assets recorded under capital leases is included with depreciation expense.

The following is a schedule of the future minimum lease payments together with the present value of the net

minimum lease payments as of September 30, 2018:

Total

Governmental

Activities

2019 5,965,727$

2020 5,965,727

2021 2,291,355

Total minimum lease payments 14,222,809

Less amounts representing interest 237,512

Present value of future minimum lease payments 13,985,297$

In July, 2015 a lease agreement was entered into with Whitney Bank to finance the purchase of radios,

inclement weather equipment and police vehicles. The lease agreement is for 66 months. The lease

agreement qualifies as a capital lease and has been recorded in the SPLOST Fund.

In February, 2016, a lease agreement was entered into with Bank of America to finance the purchase of

public safety vehicles. The lease agreement is for 60 months. The lease agreement qualifies as a capital

lease and has been recorded in the SPLOST Fund.

Note 8. Short-Term Tax Anticipation Notes

In June 2018, the County issued $90 million in tax anticipation notes to finance general operations of the County

through November 2018. The notes bear interest at 2.25 percent and are due on November 30, 2018. These notes

were paid on November 30, 2018 from 2018 property tax revenues collected between September and November.

Total payments of principal and interest on November 30, 2018 amounted to $91,046,250. 22B21B20B

49

Cobb County, Georgia

Notes to Financial Statements

September 30, 2018

Note 8. Short-Term Tax Anticipation Notes (Continued)

The borrowings were allocated to the General Fund and Fire District Special Revenue Fund as follows:

Principal Premium Total

General Fund 70,000,000$ 224,701$ 70,224,701$

Fire District Special Revenue Fund 20,000,000 64,199 20,064,199

90,000,000$ 288,900$ 90,288,900$

Short-term debt activity for the year ended September 30, 2018, was as follows:

Beginning Ending

Balance Issued Reductions Balance

Tax Anticipation Notes 60,000,000$ 90,000,000$ (60,000,000)$ 90,000,000$

Premium on Notes 112,053 288,900 (307,759) 93,194

Total Tax Anticipation

Notes Payable 60,112,053$ 90,288,900$ (60,307,759)$ 90,093,194$

22B21B20BNote 9. Long-Term Debt

60B58B56BA. Primary Government Beginning Amounts

Balance Ending Due Within

Governmental Activities: (As Restated) Additions Reductions Balance One Year

General Obligation Bonds:

2008 Parks $ 2,185,000 $ - $ (2,185,000) $ - $ -

2017 Parks 24,700,000 - (3,610,000) 21,090,000 3,800,000

Revenue Bonds:

1993 Refunding 27,275,000 - (2,110,000) 25,165,000 2,225,000

2005 Refunding 13,255,000 - (1,030,000) 12,225,000 1,085,000

2009 Refunding 8,730,000 - (825,000) 7,905,000 850,000

2013 Refunding 36,450,000 - (2,015,000) 34,435,000 2,180,000

2015 Stadium 372,910,000 - (7,440,000) 365,470,000 7,545,000

2015 South Cobb Redevelopment Authority 9,270,000 - (375,000) 8,895,000 385,000

Total bonds before discounts and premiums 494,775,000 - (19,590,000) 475,185,000 18,070,000

Add:

Unamortized bond premiums and discounts 5,471,313 - (955,649) 4,515,664 -

Total bonds payable 500,246,313 - (20,545,649) 479,700,664 18,070,000

Capital leases 19,731,392 - (5,746,095) 13,985,297 5,471,690

Certificate of Participation 8,415,000 - (450,000) 7,965,000 475,000

Revenue Anticipation Certificates 5,820,000 - (255,000) 5,565,000 260,000

Add:

Revenue Anticipation Certificates Premium 69,005 - (3,632) 65,373 -

Total Revenue Anticipation Certificates 5,889,005 - (258,632) 5,630,373 260,000

Net pension liability 492,439,646 144,522,883 (56,462,038) 580,500,491 -

Net OPEB liability 178,571,310 36,318,163 (17,845,911) 197,043,562 -

Compensated absences 26,642,651 19,326,433 (17,375,793) 28,593,291 17,649,279

Total other liabilities 731,689,004 200,167,479 (98,138,469) 833,718,014 23,855,969

Governmental Activities Long-term Liabilities $ 1,231,935,317 $ 200,167,479 $ (118,684,118) $ 1,313,418,678 $ 41,925,969

50

Cobb County, Georgia

Notes to Financial Statements

September 30, 2018

Note 9. Long-Term Debt (Continued)

The Internal Service Fund predominately serves the governmental funds. Accordingly, long-term liabilities

for the Internal Service Fund are included as part of the above totals for governmental activities. At year-

end, $20,276 of the Internal Service Fund’s compensated absences is included in the above amounts. Also,

for the governmental activities, claims and judgments, net pension liability, net OPEB liability, and

compensated absences are generally liquidated by the General Fund, Fire District Fund, Law Library Fund,

the Grant Funds, Emergency 911 Fund, and Parking Deck Facility Fund.

30B29B27

Beginning

Balance Ending Due Within

Business-type Activities: (As Restated) Additions Reductions Balance One Year

Revenue Bonds:

2009 Water & Sewer Serial $ 89,185,000 $ - $ (5,725,000) $ 83,460,000 $ 5,985,000

2013 Water & Sewer Serial Bond 44,450,000 - (7,000,000) 37,450,000 7,165,000

2007 Performing Arts Centre 6,405,000 - (535,000) 5,870,000 555,000

Total Bonds before discounts and premiums 140,040,000 - (13,260,000) 126,780,000 13,705,000

Add: Bond premiums 5,357,987 - (446,499) 4,911,488 -

Total bonds payable 145,397,987 - (13,706,499) 131,691,488 13,705,000

Notes payable 129,682,955 - (9,314,257) 120,368,698 9,583,749

Net pension liability 44,641,208 12,045,678 (5,023,357) 51,663,529 -

Net OPEB liability 17,296,187 3,517,612 (1,728,413) 19,085,386 -

Closure and postclosure 23,318,149 - (443,303) 22,874,846 443,303

Compensated absences 1,847,855 1,515,918 (1,444,117) 1,919,656 1,449,189

Total other liabilities 216,786,354 17,079,208 (17,953,447) 215,912,115 11,476,241

Business-type Activities Long-term Liabilities $ 362,184,341 $ 17,079,208 $ (31,659,946) $ 347,603,603 $ 25,181,241

The beginning balance of the net OPEB liability has been restated. See Note 26.

Bonds payable at September 30, 2018 are comprised of the following individual issues:

1. General Obligation Bonds

$24,700,000 2017 Park serial bonds due in annual installments of $3,610,000 to $4,650,000

through January 1, 2023; interest at 4.25 to 5.00 percent ($21,090,000 outstanding). The Bonds

were issued to finance the costs of acquiring park land within the County to be owned by the

County for so long as any Series 2017 Bonds remain outstanding and to be used as park land in

perpetuity, and paying the costs of the issuance of the Series 2017 Bonds.

$15,000,000 2008 Park serial bonds paid in full on January 1, 2018; interest at 2.42 to 3.63

percent ($0 outstanding). The Bonds were issued to finance the costs of acquiring park land

within the County to be owned by the County for so long as any Series 2008 Bonds remain

outstanding and to be used as park land in perpetuity, and paying the costs of the issuance of

the Series 2008 Bonds.

2. Revenue Bonds

A. Governmental Activities

$47,965,000 1993 serial bonds due in annual installments of $2,110,000 to $3,445,000

through October 1, 2026; interest at 5.50 to 5.625 percent ($25,165,000 outstanding). The

51

Cobb County, Georgia

Notes to Financial Statements

September 30, 2018

Note 9. Long-Term Debt (Continued)

Bonds were issued to refund a portion of the series 1991 bonds, which were issued to

finance the construction of the convention center.

$13,255,000 2005 serial bonds, due in annual installments of $1,030,000 to $1,670,000

through October 1, 2027 ($12,225,000 outstanding), subject to mandatory redemption

requirements beginning October 1, 2017. The term bonds come due with the applicable

fixed rates from 5.25 to 5.50 percent. The Bonds were issued to refund a portion of the

series 1999 bonds.

$14,335,000 2009 serial bonds due in annual installments of $825,000 to $1,130,000

through July 1, 2026; interest at 3.0 to 4.0 percent ($7,905,000 outstanding). The Bonds

were issued to refund the series 1996 bonds, which were originally issued to finance the

purchase of approximately eleven acres of land for future expansion capabilities.

$41,635,000 2013 refunding serial bonds due in annual installments of $2,015,000 to

$4,155,000 through January 1, 2029; interest at 3.0 to 5.00 percent ($34,435,000

outstanding). The Bonds were issued to refinance the series 2004 bond issue that was

originally issued to finance the construction of a new Performing Arts Centre and parking

garage.

$376,600,000 2015 serial bonds due in annual installments of $7,440,000 to $ 21,270,000

through January 1, 2047; interest at 1.0 to 3.25 percent ($365,470,000 outstanding). The

Bonds were issued to finance, in part the cost of acquisition, construction and equipping of

the stadium project and the costs of issuance of the bonds.

$10,000,000 2015 serial bonds due in annual installments of $375,000 to $705,000

through July 1, 2035; interest at 3.0 to 4.0 percent ($8,895,000 outstanding). The Bonds

were issued to finance, in part the cost of various redevelopment and infrastructure

improvement projects within the Six Flags Special Purpose District.

B. Business-type Activities

$126,570,000 2009 serial bonds due in annual installments of $5,725,000 to $9,350,000

through July 1, 2029; interest at 3.00 to 4.25 percent ($83,460,000 outstanding). The

Bonds were issued to finance a portion of certain additions, betterments, replacements,

extensions and improvements to the County’s water and sewerage facilities and to pay

expenses necessary to accomplish the foregoing.

$71,545,000 2013 refunding serial bonds due in annual installments of $7,000,000 to

$7,800,000 through July 1, 2023; interest at 2.15 percent ($37,450,000 outstanding). The

Bonds were issued for the purpose of advance refunding, defeasing and optionally

redeeming the County’s outstanding 2003 serial bonds and paying the cost of issuance of

the Series 2013 Bonds.

$10,000,000 2007 refunding serial bonds due in annual installments of $535,000 to

$760,000 through January 1, 2027, originally with interest at a fixed rate of 3.99%, which

was reduced to 2.88% effective June 1, 2012 ($5,870,000 outstanding). The Bonds were

issued to provide additional financing for the construction, renovation, equipping, and

other such activities for the Performing Arts Centre.

52

Cobb County, Georgia

Notes to Financial Statements

September 30, 2018

Note 9. Long-Term Debt (Continued)

The County has pledged future water customer revenues, net of specified operating

expenses, to repay $198.1 million in water revenue bonds issued from 2009 to 2013.

Proceeds from the bonds will provide financing for water and sewer infrastructure. The

bonds are payable from water customer net revenues and are payable through 2029.

During the current year, principal and interest paid and total net pledged revenues were

$17,597,294 and $66,145,633 respectively. The total principal and interest remaining to be

paid on the bonds as of September 30, 2018 was $120,910,000 and $26,184,084

respectively.

The annual requirements to amortize all General Obligation and Revenue bonds outstanding at

September 30, are as follows:

General Obligation Bonds

Year

Ending

September Principal Interest

2019 $ 3,800,000 $ 959,500

2020 4,000,000 764,500

2021 4,210,000 559,250

2022 4,430,000 343,250

2023 4,650,000 116,250

$ 21,090,000 $ 2,742,750

Governmental Activities

Year

Ending

September Principal Interest

2019 $ 14,270,000 $ 18,997,328 $ 13,705,000 $ 4,727,264

2020 14,820,000 18,507,757 14,165,000 4,287,620

2021 15,425,000 17,968,618 14,670,000 3,800,247

2022 16,075,000 17,372,815 15,165,000 3,293,000

2023 16,760,000 16,742,921 15,690,000 2,765,522

2024-2028 87,745,000 73,086,612 44,035,000 7,718,016

2029-2033 61,970,000 58,313,332 9,350,000 397,375

2034-2038 69,660,000 44,222,771 - -

2039-2043 85,300,000 27,123,750 - -

2044-2047 72,070,000 6,630,525 - -

$ 454,095,000 $ 298,966,429 $ 126,780,000 $ 26,989,044

Principal Interest

Governmental Activities Business-Type Activities

Revenue BondsRevenue Bonds

53

Cobb County, Georgia

Notes to Financial Statements

September 30, 2018

Note 9. Long-Term Debt (Continued)

The annual requirements to amortize all Water and Sewer Revenue Bonds outstanding at

September 30, 2018 are as follows:

Principal Interest Total

2019 13,150,000$ 4,566,200$ 17,716,200$

2020 13,590,000 4,142,828 17,732,828

2021 14,070,000 3,672,375 17,742,375

2022 14,540,000 3,182,768 17,722,768

2023 15,040,000 2,673,650 17,713,650

2024-2028 41,170,000 7,548,888 48,718,888

2028-2029 9,350,000 397,375 9,747,375

$ 120,910,000 $ 26,184,084 $ 147,094,084

Outstanding Water and Sewer Parity Bonds

The preceding information is presented in order to meet continuing disclosure requirements as set

forth in the Security and Exchange Commission’s Rule 15c2-12(b) (5).

3. Compliance

The 1985 Series Water and Sewerage Bond Resolution require the establishment of a Debt

Service Reserve Account within the Water and Sewerage Sinking Fund in an amount at least

equal to the highest annual debt service on the Series 1985 Bonds. The Resolution also

authorizes Cobb County to obtain a surety bond in place of funding the Debt Service Reserve

Account. The County has obtained a Municipal Bond Insurance Association bond for this

purpose. However, the Series 2003 Resolution amends the Prior Resolutions and provides that

commencing on December 1, 2003, there shall no longer be a Debt Service Reserve

Requirement for any Bonds then outstanding. There are a number of limitations and

restrictions contained in the various bond indentures. The County is in compliance with all

significant limitations and restrictions.

$6,905,735 is available in the Debt Service Fund to service the general obligation bonds.

4. Prior Years’ Advance Refundings

Revenue Bonds:

During the fiscal year ending September 30, 2013, the County issued Series 2013 Water and

Sewer Refunding Revenue Bonds of $71,545,000 with interest rates of 2.15 percent to advance

refund $78,535,000 of the 2003 Water and Sewer Revenue Bonds with interest rates of 3.0 to

5.0 percent. The 2013 Water and Sewer Refunding Revenue Bonds were issued at par. After

paying the issuance costs of $407,899 the net proceeds were $71,137,101. The net proceeds

from the issuance were used to purchase U.S. government securities, and those securities were

deposited into an irrevocable trust with an escrow agent to provide debt service payments on

the 2003 bond issue maturing in 2023. The advance refunding met the requirements of an in-

substance defeasance, thus the refunded portions of the 2003 bonds are no longer included in

the Water and Sewer Fund Statement of Net Position bond payable balance. The amount of

defeased debt outstanding but removed from the County’s records totaled $40,090,000 at

September 30, 2018.

54

Cobb County, Georgia

Notes to Financial Statements

September 30, 2018

Note 9. Long-Term Debt (Continued)

5. Certificates of Participation

$10,730,000 Series 2010 Certificates of Participation is due in annual installments of $450,000

to $780,000 through January 1, 2031; interest at 2.25 to 4.00 percent ($7,965,000 outstanding).

The contract obligates Cobb County to pay the debt service obligations on the Cobb County

Courthouse Parking Deck Project Certificates of Participation until the bonds are repaid.

2019 $ 475,000 $ 279,063 $ 754,063

2020 490,000 264,588 754,588

2021 510,000 249,588 759,588

2022 535,000 233,578 768,578

2023 555,000 216,547 771,547

2024-2028 3,140,000 781,525 3,921,525

2029-2031 2,260,000 139,425 2,399,425

Total $ 7,965,000 $ 2,164,314 $ 10,129,314

Certificate of Participation

Principal Interest Total

6. Revenue Anticipation Certificates

$6,315,000 2014 Revenue Anticipation Certificates is due in annual installments of $255,000

to $410,000 through July 1, 2035; interest at 2.00 to 3.25 percent ($5,565,000 outstanding).

The Certificates were issued to finance in whole or in part the costs of the design, construction

and equipping of a two story building, which will be subleased to the Community Service

Board through an intergovernmental agreement.

2019 $ 260,000 $ 162,600 $ 422,600

2020 265,000 157,400 422,400

2021 275,000 149,450 424,450

2022 280,000 141,200 421,200

2023 290,000 132,800 422,800

2024-2028 1,580,000 538,886 2,118,886

2029-2033 1,810,000 301,440 2,111,440

2034-2035 805,000 39,486 844,486

Total $ 5,565,000 $ 1,623,262 $ 7,188,262

Revenue Anticipation Certificates

Principal Interest Total

7. Notes Payable

$35,000,000 2008 Notes Payable is due in monthly installments of $195,402 through

December 1, 2028; interest at 3.00 percent (with $20,668,219 outstanding). The loan is

financing the construction of various water tunnels and pump stations.

55

Cobb County, Georgia

Notes to Financial Statements

September 30, 2018

Note 9. Long-Term Debt (Continued)

$35,000,000 2009 Notes Payable is due in monthly installments of $194,109 through October

1, 2022 (with one final payment of $76,257 payable on November 1, 2022); interest at 3.00

percent (with $9,009,098 outstanding). The loan is financing the construction of various water

tunnels and pump stations. This note was restructured upon securing the 2010 Note Payable for

$6,000,000.

28B27B25B

$6,000,000 2010 Notes Payable is due in monthly installments of $33,378 [payments were

$50,044] through February 1, 2030 (with one final payment of $7,779 payable on February 1,

2030); interest at 3.00 percent (with $3,870,351 outstanding). The loan is financing the

construction of various water tunnels and pump stations. This loan represents the restructuring

of the prior 2009 Note Payable for a $10,000,000 loan in which $4,000,000 was forgiven

during fiscal year 2010.

$25,000,000 2010 Notes Payable is due in monthly installments of $138,649 through August 1,

2030; interest at 3.00 percent (with $16,652,636 outstanding). The loan is financing the

construction of various water tunnels and pump stations.

$25,000,000 2011 Notes Payable is due in monthly installments of $134,490 through August 1,

2031; interest at 3.00 percent (with $17,264,205 outstanding). The loan is financing the

construction of various water tunnels and pump stations. $750,000 of the loan was forgiven

during fiscal year 2011.

$35,000,000 2011 Notes Payable is due in monthly installments of $194,109 through January

1, 2032; interest at 3.00 percent (with $25,571,573 outstanding). The loan is financing the

construction of various water tunnels and pump stations.

$35,000,000 2012 Notes Payable is due in monthly installments of $179,222 through July 1,

2033; interest at 3.00 percent (with $27,332,616 outstanding). The loan is financing the

construction of various water tunnels and pump stations.

2019 $ 9,583,749 $ 3,248,561 $ 12,832,310

2020 9,860,311 2,971,998 12,832,309

2021 10,147,331 2,684,978 12,832,309

2022 10,440,560 2,391,750 12,832,310

2023 8,659,292 2,114,038 10,773,330

2024-2028 45,687,384 6,827,436 52,514,820

2029-2033 25,990,071 1,222,838 27,212,909

Total $ 120,368,698 $ 21,461,599 $ 141,830,297

Notes Payable

Principal Interest Total

56

Cobb County, Georgia

Notes to Financial Statements

September 30, 2018

Note 9. Long-Term Debt (Continued)

B. Discretely Presented Component Units

Cobb County Board of Health

Amounts

Ending Due Within

Additions Reductions Balance One Year

Governmental Activities:

Net Pension Liability $ 17,236,562 $ - $ (2,568,888) $ 14,667,674 $ -

Net OPEB Liability 14,484,952 - (1,361,843) 13,123,109 -

Compensated Absences 723,550 704,892 (687,381) 741,061 737,326

Total Long-term Liabilities $ 32,445,064 $ 704,892 $ (4,618,112) $ 28,531,844 $ 737,326

Beginning

Balance

33B

Note 10. Fund Balance Determinations and Classifications

Special revenue funds U are used to account for and report the proceeds of specific revenue sources that are

restricted or committed to expenditure for specified purposes other than debt service or capital projects. The term

“proceeds of specific revenue sources” establishes that one or more specific restricted or committed revenues

should be the foundation for a special revenue fund. Restricted or committed specific revenue sources should

comprise a substantial portion of the fund’s resources. If revenues are initially received in another fund, they

should not be reported as revenues in the fund receiving them; instead, they should be recognized in the special

revenue fund where they will be spent. The proceeds from these special revenue sources should be expected to

continue to comprise a substantial portion of inflows.

Capital projects funds U are used to account for and report financial resources that are restricted, committed, or

assigned to expenditure for capital outlays. Capital projects’ funds exclude those types of capital related outflows

financed by proprietary funds. U

Debt service funds U are used to account for and report financial resources that are restricted, committed, or

assigned to expenditure for principal and interest.

The following classifications are used by the County:

1. General, Special Revenue, Debt Service, and Capital Projects Funds: 34B34B32B

a. UNonspendable Fund Balance U: the portion of a fund balance that includes amounts that cannot be spent because they are either not in a spendable form [prepaid items, inventories of supplies, or

loans receivable] or be legally or contractually required to be maintained intact.

b. URestricted Fund Balance U: the portion of a fund balance that reflects constraints placed on the use of resources other than nonspendable items that are either externally imposed by creditors [debt

agreements, grantors, or laws or regulations of other governments], or be imposed by law through

constitutional provisions or enabling legislation.

57

Cobb County, Georgia

Notes to Financial Statements

September 30, 2018

Note 10. Fund Balance Determinations and Classifications (Continued)

c. UCommitted Fund Balance U: the portion of a fund balance that includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the Board of

Commissioners and remain binding unless removed in the same manner. Board of Commissioners’

resolution is required in order to establish, modify or rescind a fund balance commitment. This is

the highest level of authoritative action at the local level.

d. UAssigned Fund Balance U: the portion of a fund balance that includes amounts that are constrained by the government’s intent to be used for specific purposes but that are neither restricted nor

committed. The Commissioners have by resolution authorized the County Manager to assign fund

balance.

e. UUnassigned Fund Balance U: that portion of a fund balance that includes amounts that do not fall into one of the above four categories. The General Fund is the only fund that should report a positive

unassigned balance.

The County uses restricted amounts to be spent first when both restricted and unrestricted fund balances are

available, unless there are legal documents/contracts that prohibit the use of restricted fund balance, such as

grant agreements that require a dollar match. Additionally, the County would then use committed, assigned and

lastly unassigned amounts from the unrestricted fund balance when expending funds.

The County does not have a formal minimum fund balance policy; however the Board of Commission address

various targeted reserve positions and the Finance Department calculates targets and actuals and reports the

results to the Board of Commissioners on an annual basis.

2. Fiduciary Funds:

a. Reserved for employees’ pension benefit – restricted for payment of future employee pension

benefit distributions.

b. Reserved for employees’ other post employee benefit – restricted for payment of future employee

other post-employment benefit distributions.

58

Cobb County, Georgia

Notes to Financial Statements

September 30, 2018

Note 10. Fund Balance Determinations and Classifications (Continued)

The composition of the Special Programs Fund Balance Classification is as follows:

Special Programs:

Courts $ 1,227,796 $ - $ 1,227,796

E-911 - 5,499,875 5,499,875

800 MHz - 13,783 13,783

Streetlight District - 4,420,036 4,420,036

Grants - 2,877,690 2,877,690

Library - 89,020 89,020

Cumberland Special

Service District - 3,113,305 3,113,305

Sheriff 704,726 - 704,726

CMCEHA - 18,625,333 18,625,333

Stadium maintenance - 4,910,421 4,910,421

Total $ 1,932,522 $ 39,549,463 $ 41,481,985

Special Programs:

Community Development $ 817,875 $ - $ 817,875

Communications 2,123,331 - 2,123,331

Courts 907,519 - 907,519

General Government 801,681 - 801,681

Information Services 583,803 - 583,803

Library 216,175 - 216,175

Non-Profit & Other Governmental 126,242 - 126,242

Parks 1,803,550 - 1,803,550

Parking Deck - 113,102 113,102

Property Management 60,593 - 60,593

Public Safety 2,665,453 - 2,665,453

Senior Services 422,624 - 422,624

Sheriff 682,261 - 682,261

Transportation 1,988,749 - 1,988,749

CMCEHA - 988,571 988,571

Total $ 13,199,856 $ 1,101,673 $ 14,301,529

Funds TotalFund

Nonmajor

General Governmental

Funds Total

Special Program Classification: Restricted Fund Balance

General Governmental

Nonmajor

Special Program Classification: Committed Fund Balance

Fund

35B34B32

59

Cobb County, Georgia

Notes to Financial Statements

September 30, 2018

Note 10. Fund Balance Determinations and Classifications (Continued)

Special Programs:

Community Development 6,528$ -$ 6,528$

County Attorney 55 - 55

County Clerk 1,163 - 1,163

Courts 30,327 - 30,327

Elections 3,856 - 3,856

Fleet 29,091 - 29,091

Human Resources 10,367 - 10,367

Information Services 271,951 - 271,951

Internal Audit 72 - 72

Library 1,555 - 1,555

Medical Examiner 3,060 - 3,060

Non-Profit & Other Governmental 24,647 - 24,647

Parks 201,713 - 201,713

Parking Deck - 1,595 1,595

Property Management 217,411 - 217,411

Public Safety 419,211 - 419,211

Purchasing 431 - 431

Senior Services 27,773 - 27,773

Sheriff 299,277 - 299,277

Tax Assessor 335 - 335

Tax Commissioner 973 - 973

Transportation 248,522 - 248,522

Total $ 1,798,318 $ 1,595 $ 1,799,913

Fund Funds Total

Nonmajor

General Governmental

Special Program Classification: Assigned Fund Balance

In the nonmajor funds, the Community Services Fund has a deficit fund balance of $34 and the Solid Waste

Disposal Fund has a deficit net position of $17,093,569.

5B 33BNote 11. Property Taxes

The County bills and collects its own property taxes and those taxes for the Cobb County School System and

some municipalities within the County. Collections of the County taxes and remittance of them to the General

Fund, Fire District Fund, Debt Service Fund, the school system and municipalities are accounted for in the Tax

Commissioner Agency Fund. County property tax revenues are recognized when levied to the extent that they

result in current receivables.

Property taxes are levied each July based on values as of January 1st and are due on October 15th each year.

Collections of property taxes are made throughout the year. Liens may attach to the property for unpaid taxes at

any time within three years after the due date. 38B36B34B

60

Cobb County, Georgia

Notes to Financial Statements

September 30, 2018

Note 12. Tax Abatements

In fiscal year 2017, the County adopted Governmental Accounting Standards Board (GASB) Statement No. 77,

Tax Abatement Disclosures. This statement requires state and local governments to disclose tax abatement

agreements entered by other governments that reduce the reporting government’s tax revenues. The following

information should be disclosed; (1) brief descriptive information, such as the tax being abated, the authority

under which tax abatements are provided, eligibility criteria, the mechanism by which taxes are abated,

provisions for recapturing abated taxes, and the types of commitments made by tax abatement recipients; (2) the

gross dollar amount of taxes abated during the period; and (3) commitments made by a government, other than to

abate taxes, as part of a tax abatement agreement.

Cobb County, through the Development Authority of Cobb County, allows for taxable revenue bond financing,

pursuant to the Georgia Development Authorities law, under Title 36 Chapter 62 of the Official Code of

Georgia, in order to promote the creation of jobs and stimulate development activity within Cobb County. The

taxable revenue bond financings result in the reduction of ad valorem (real and/or personal property) taxes.

The County offers a reduction in property taxes through the structure of these financing arrangements.

Specifically, the Development Authority of Cobb County, a tax exempt public organization created

independently from the County, may enter into agreements with private individuals or entities in order to

incentivize these businesses to build, relocate, expand, or renovate in Cobb County. The agreements involve a

bond issuance and sale-leaseback transaction, whereby the Development Authority takes title to property and

leases it back to the company. The business or individual is responsible for making ad valorem tax payments on

its leasehold interest. The rental payments for the leasehold offset the debt service on the bonds over a fixed 10

year term, so that at the end of the incentive period the bonds are fully retired and the company regains title of

the property through an option to purchase.

The Development Authority considers the fiscal impacts of a proposed project and weighs such benefits against

the costs of reduced revenue impacts when considering whether to enter into a taxable revenue bond deal with an

individual or entity. Generally eligible projects involve a commitment of significant capital investment and/or

the creation of net new jobs to the County, which propose a favorable return on investment for the County. There

are no additional commitments other than to provide favorable tax treatment. There are provisions for

recapturing some portion of the value of these incentives in the event capital investment and job creation

numbers are not met during the incentive period; however, the Development Authority can immediately return

title to a company for a non-performing project, which cancels the incentive going forward. There are no

amounts receivable from other governments.

For the fiscal year ended September 30, 2018, Cobb County abated property taxes that were levied on January 1,

2018 and due on October 15, 2018 totaling $1,615,517. Included in that amount abated, the following are

individual tax abatement agreements that each exceeded 10 percent of the total amount abated:

Tax Abatement Project % Abated

Amount of

Taxes Abated

Home Depot-Real 90% 264,269$

Highwoods Reality 90% 379,804$

Genuine Parts 90% 197,936$

Home Depot USA 95% 258,826$

Akers 75 100% 232,606$

61

Cobb County, Georgia

Notes to Financial Statements

September 30, 2018

Note 13. Interfund Balances and Transfers Individual fund interfund receivable and payable balances for the fiscal year ended September 30, 2018 are as

follows:

Due to / from other funds:

General Fund Nonmajor Governmental Funds $ 608,754

Nonmajor Governmental Funds General Fund 3,706,052

Nonmajor Enterprise Funds 137,363

Nonmajor Governmental Funds 572,082

4,415,497

Nonmajor Enterprise Funds General Fund 3,500,014

Internal Service Fund Fire District Fund 3,210,000

$ 11,734,265

Receivable Fund Payable Fund Amount

All interfund balances are due either to timing differences or to the elimination of negative cash balances within

the various funds. All interfund balances are expected to be repaid during the fiscal year ending September 30,

2019.

Advance from/to other funds:

$ 2,981,022 General Fund Nonmajor Enterprise Funds

Receivable Fund Payable Fund Amount

The amounts payable to the General Fund relates to financing for cash purposes and are not subject to be repaid

in the subsequent year.

Transfers: 39B36B34B

Transfer out:

General Fund -$ -$ 605,247$ -$ -$ 36,884,562$ 13,308,405$ 50,798,214$

Fire District Fund - - 1,100,000 - - 536,720 - 1,636,720

Water and Sewer Fund 21,138,843 - - - - 707,093 - 21,845,936

Internal Service Fund 896,881 7,444 6,184 55,050 3,369 3,200 - 972,128

Nonmajor Governmental Funds 10,466,502 - 2,159,713 25,468 - 20,484,652 1,582,599 34,718,934

Nonmajor Enterprise Funds - - - - - 3,361 647,577 650,938

Total transfers out 32,502,226$ 7,444$ 3,871,144$ 80,518$ 3,369$ 58,619,588$ 15,538,581$ 110,622,870$

Total

Internal

Service

Fund

Nonmajor

Governmental

Funds

Transfer In

Nonmajor

Enterprise

Funds

Water and

SPLOSTGeneral

Fund

Fire District

Fund Fund

Sewer

Fund

38B36B34B

62

Cobb County, Georgia

Notes to Financial Statements

September 30, 2018

Note 13. Interfund Balances and Transfers (Continued)

Interfund transfers are used to (1) move revenues from the fund that statute or budget requires to collect them to

the fund that statute or budget requires to expend them, (2) move receipts restricted to debt service from the

funds collecting the receipts to the debt service fund as debt service payments become due, and (3) use

unrestricted revenues in the general fund to finance various programs accounted for in other funds in accordance

with budgetary authorizations.

41B 39B37B 42B40B38B

43B41B39BNote 14. Contingent Liabilities

Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies,

principally the federal government. Any disallowed claims, including amounts already collected, may constitute

a liability of the applicable funds. The amount, if any, of expenditures which may be disallowed by the grantor

cannot be determined at this time although the County expects such amount, if any, to be immaterial.

Cobb County is a defendant in various lawsuits in the normal course of its activities. Based on counsel and

management’s opinion, a liability has been recorded for lawsuits where a potential loss is considered probable.

44B 42B40BNote 15. Deferred Compensation Plan

The County offers its employees a deferred compensation plan created in accordance with Internal Revenue

Code Section 457. The plan is available to all County employees and permits them to defer a portion of their

salary until future years. The deferred compensation is not available to employees until termination, retirement,

death or unforeseeable emergency. All amounts of compensation deferred under the plan, all property and rights

purchased with those amounts, all income attributable to those amounts, property, or rights are (until paid or

made available to the employee or other beneficiary) solely the property and rights of the emplo yees.

Investments are managed by the Plan’s trustee under one of the investment options, or a combination thereof.

The participants make the choice of the investment option(s).

The County has adopted GASB No. 32, Accounting and Financial Reporting for Internal Revenue Code Section

457 Deferred Compensation Plans, which rescinded GASB Statement No. 2. The County has only minor

administrative involvement and does not perform any investing for the plan. Due to the fact the County’s role in

management of the plan assets is basically limited to transmitting amounts withheld from payroll to an outside

party responsible for administering the plan, the County does not report the assets of the Deferred Compensation

Plan in the County’s financial statements.

45B43B41B

63

Cobb County, Georgia

Notes to Financial Statements

September 30, 2018

Note 16. Due From Other Governments and Agencies

Cobb County Board of Health $ 957

City of Acworth, Georgia 10,497

City of Austell, Georgia 894,717

City of Kennesaw, Georgia 9,077

City of Marietta, Georgia 128,030

City of Powder Springs, Georgia 6,289

City of Smyrna, Georgia 10,160

Chattahoochee Tech 15,573

Safepath 7,415

University of Georgia 7,875

Total General Fund $ 1,090,590

SPLOST Fund:

City of Marietta, Georgia $ 109,015

City of Powder Springs, Georgia 143,570

Cumberland Community Improvement District 109,720

Federal Transit Administration 224,346

State of Georgia, Department of Transportation 15,242,683

Total SPLOST Fund $ 15,829,334

Nonmajor Governmental Funds:

$ 47

448,818

24,101

$ 472,966

$ 129,635

$ 591,864

Prosecuting Attorney's Council of Georgia 240,492

2,043

499,585

449,780

79,964

175,141

$ 2,038,869

$ 648,243

CMCEHA Fund:

$ 50,546

92,072

Total CMCEHA Fund $ 142,618

$ 2,959,365

$ 20,352,255

Total Special Revenue Funds

City of Marietta, Georgia

City of Smyrna, Georgia

United States, Department of Housing and Urban Development

Capital Projects Funds:

Public Facilities Fund:

State of Georgia, Department of Transportation

Housing and Urban Development Grant Fund:

State of Georgia, Criminal Justice Coordinating Council

State of Georgia, Department of Human Resources

Grant Fund:

Atlanta Regional Commission

Kennesaw State University

Towncenter Community Improvement District

Total Public Facilities Fund

State of Georgia, Criminal Juvenile Court Judges

State of Georgia, Department of Technical and Adult Education

General Fund:

Total Grant Fund

State of Georgia, Department of Human Resources

Community Services Fund:

Special Revenue Funds:

United States, Department of Justice

B43B41B

64

Cobb County, Georgia

Notes to Financial Statements

September 30, 2018

Note 16. Due From Other Governments and Agencies

Cobb Marietta Water Authority $ 12,223

$ 2,606,191

Metro Atlanta Rapid Transportation Authority 186,773

State Road and Tollway Authority 6,174,737

$ 8,967,701

$ 8,979,924

Federal Transit Administration

Total Public Transit System Fund

Public Transit System Fund:

Water System Fund:

Proprietary Funds:

Note 17. Other Post-Employment Benefits

Plan Description and Provisions

The Cobb County Government Health Benefit Plan (the “OPEB Plan”) is a single employer defined benefit post-

retirement healthcare plan, or other post-employment benefit (OPEB) plan administered by the County. The

Cobb County OPEB Trust is an irrevocable trust established pursuant to Section 115 of the Internal Revenue

Code for the purpose of pre-funding other post-employment health benefits in accordance with GASB Statement

74 and GASB Statement 75. The trust was established June 10, 2008, by the Board of Commissioners to pre-

fund medical and prescription drug benefits for retirees and their eligible dependents that are eligible for such

benefits under existing County policy. Benefit terms and contribution requirements are established and may be

amended by the Cobb County Pension Fund Board of Trustees. The Pension Board of Trustees is composed of

five members appointed by the Board of Commissioners who represents the interest of the employees and

taxpayers of the County.

At January 1, 2018, the following employees were covered by the benefit terms:

January 1, 2018

Inactive Members Or Their Beneficiaries

Currently Receiving Benefits 1,632

Inactive Members Entitled To But Not Yet

Receiving Benefits -

Active Members 4,349

Total 5,981

Eligibility

Effective January 1, 2007 (for Employees hired prior to January 1, 2006):

All full-time employees with seven or more years of services will be eligible to continue medical coverage at

termination of employment.

Effective January 1, 2010:

All full-time new hires will be eligible to continue medical coverage with thirty years of service at termination of

employment.

65

Cobb County, Georgia

Notes to Financial Statements

September 30, 2018

Note 17. Other Post Employment Benefits (Continued)

Funding Policy/Contributions

The Cobb County Board of Commissioners establishes rates based on an actuarially determined rated recommended by an independent actuary. The actuarially determined rate is the estimated amount necessary to

finance the costs of benefits earned by plan members during the year, with an additional amount to finance any

unfunded accrued liability. The County is required to contribute the difference between the actuarially

determined rate and the contributions rate of plan members. The contribution requirements of plan members and

the County are established and may be amended by the Pension Fund Board of Trustees. Plan members receiving

benefits under the PPO plan contribute $150.81 per month for retiree, $406.30 per month for retiree and spouse

coverage, $385.99 per month for retiree and child(ren) coverage, and $569.93 per month for family coverage.

Plan members receiving benefits under the EPO/HMO plan contribute $64.83 per month for retiree, $220.04 per

month for retiree and spouse coverage, $209.05 per month for retiree and child(ren) coverage, and $309.64 per

month for family coverage Plan members receiving benefits under the CDHP plan contribute $43.72 per month

for retiree, $185.87 per month for retiree and spouse coverage, $176.59 per month for retiree and child(ren)

coverage, and $261.96 per month for family coverage. Plan members receiving benefits under the Kaiser

Signature plan contribute $35.02 per month for retiree, $152.30 per month for retiree and spouse coverage,

$144.70 per month for retiree and child(ren) coverage, and $213.20 per month for family coverage. During the

plan year the County contributed $19,574,024 to the Plan. Total retiree contributions from retirees totaled

$2,484,966 during the plan year.

Investments

The Plan’s policy in regard to the allocation of invested assets is established and may be amended by the Pension

Board of Trustees by a majority vote.

The long-term expected rate of return on OPEB plan investments was determined using a building-block method

in which best-estimate ranges of expected future real rates of return (expected returns, net of investment expense

and inflation) are developed for each major asset class. These ranges are combined to produce the long-term

expected rate of return by weighting the expected future real rates of return by the target asset allocation

percentage and by adding expected inflation.

The target asset allocation and best estimates of arithmetic real rates of return for each major asset class included

in the target asset allocation as of September 30, 2018 are summarized in the following table:

Asset Class Target Allocation

Long Term Expected Real

Rate of Return

US Fixed Income Core 25% -0.20%

US Large Cap Equity Core 33% 4.70%

US Mid Cap Equity Core 6% 5.20%

US Small Cap Equity Core 6% 5.40%

Global Equity Core 10% 5.50%

International Equity Core 20% 6.60% Total 100%

For the year ended September 30, 2018, the annual money-weighted rate of return on investments, net of

investment expense, was 8.34%. The money-weighted rate of return expresses investment performance, net of

investment expense, adjusted for the changing amounts actually invested.

66

Cobb County, Georgia

Notes to Financial Statements

September 30, 2018

Note 17. Other Post-Employment Benefits (Continued)

Net OPEB Liability of the County

The net OPEB liability reported by the County at September 30, 2018 is based on the measurement date of

September 30, 2018 and determined by an actuarial valuation as of January 1, 2018. The components of the net

OPEB liability as of the Plan’s fiscal year end, September 30, 2018 are as follows:

Total OPEB liability 342,139,885$

Plan fiduciary net position 126,010,937

County's net OPEB liability 216,128,948$

Plan fiduciary net position as a percentage of the

total OPEB liability 36.83%

The changes in the Net OPEB Liability were as follows:

Total OPEB

Liability

Plan Fiduciary

Net Position

Net OPEB

Liability

(a) (b) (a)-(b)

Balances at September 30, 2017 308,592,601$ 112,725,104$ 195,867,497$

Changes for the Year:

Service cost 3,987,889 - 3,987,889

Interest 22,560,419 - 22,560,419

Benefit changes - - -

Difference between expected and

actual experience (11,337,230) - (11,337,230)

Changes in assumptions 33,910,230 - 33,910,230

Contributions - employer - 19,574,024 (19,574,024)

Contributions - employee - - -

Net investment income - 9,285,533 (9,285,533)

Benefit payments including

refunds of employee contributions (15,574,024) (15,574,024) -

Adminstrative expense - - -

Other changes - 300 (300)

Net changes 33,547,284$ 13,285,833$ 20,261,451$

Balances at September 30, 2018 342,139,885$ 126,010,937$ 216,128,948$

67

Cobb County, Georgia

Notes to Financial Statements

September 30, 2018

Note 17. Other Post-Employment Benefits (Continued)

Actuarial Methods and Assumptions

The Total OPEB Liability as of September 30, 2018 was determined based on an actuarial valuation prepared as

of January 1, 2018, using the following actuarial assumptions, applied to all periods included in the measurement

and rolled forward to the measurement date of September 30, 2018:

Valuation date January 1, 2018

Inflation 2.50%

Salary increases 3.00-4.00%, including 2.50% wage inflation

Investment rate of return 7.50% compounded annually, net of investment expense, and including inflation

Municipal Bond Index Rate

at Measurement Date 4.09%

Municipal Bond Index Rate

at Prior Measurement Date 3.57%

Healthcare cost trend rates

Pre-Medicare Eligible 7.00%

Medicare Eligible 5.00%

Utimate trend rate 5.00%

The actuarial assumptions used in the January 1, 2018 valuation were based on the results of an actuarial

experience study for the five year period ending December 31, 2016.

The discount rate used to measure the total OPEB liability was 7.50%. The projection of cash flows used to

determine the discount rate assumed that County contributions will be made at rates equal to the actuarially

determined contribution rates. Based on those assumptions, the OPEB plan’s fiduciary net position was projected

to be available to make all projected future benefit payments of current plan members. Therefore, the long-term

expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to

determine the total OPEB liability.

The following presents the net OPEB liability of the County, as well as what the County’s net OPEB liability

would be if it were calculated using a discount rate that is 1-percentage-point lower (6.5 percent) or 1-

percentage-point higher (8.5 percent) than the current discount rate:

1% Decrease Discount Rate 1% Increase

(6.5%) (7.5%) (8.5%)

Net OPEB liability 260,616,577$ 216,128,948$ 179,128,272$

The following presents the net OPEB liability of the County, as well as what the County’s net OPEB liability

would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower (6.0 percent

decreasing to 4.0 percent, 4.0 percent for Medicare eligible) or 1-percentage-point higher (8.0 percent decreasing

to 6.0 percent, 6.0 percent for Medicare eligible) than the current healthcare cost trend rates:

68

Cobb County, Georgia

Notes to Financial Statements

September 30, 2018

Note 17. Other Post-Employment Benefits (Continued)

Healthcare Cost

1% Decrease Trend Rates 1% Increase

Net OPEB liability 174,190,107$ 216,128,948$ 267,383,248$

(6% decreasing to 4% pre-

Medicare, 4% for

Medicare eligible)

(7% decreasing to 5% for

pre-Medicare, 5% for

Medicare eligible )

(8% decreasing to 6% for

pre-Medicare, 6% for

Medicare eligible)

OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB

For the year ended September 30, 2018, the County recognized OPEB expense of $20,933,840. At September 30,

2018, the County reported deferred outflows of resources and deferred inflows of resources related to OPEB

from the following sources:

Deferred Outflows of

Resources

Deferred Inflows of

Resources

Differences between expected and actual experience -$ 9,766,977$

Change in assumptions 29,213,522 -

Net difference between projected and actual earnings

on plan investments - 544,912

Employer contributions made subsequent to the

measurement date - -

Total 29,213,522$ 10,311,889$

Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be

recognized in OPEB expense as follows:

Year ended September 30,

2019 2,990,227$

2020 2,990,227

2021 2,990,227

2022 2,990,227

2023 3,126,455

Thereafter 3,814,270

Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions

about the probability of occurrence of events far into the future. Examples include assumptions about future

employment, mortality, and the healthcare cost trend. Actuarially determined amounts are subject to continual

revision as actual results are compared with past expectations and new estimates are made about the future.

Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood

by the employer and the plan members) and include the types of benefits provided at the time of each valuation

and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The

actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term

volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term

perspective of the calculations. The plan does not issue separate financial statements.

69

Cobb County, Georgia

Notes to Financial Statements

September 30, 2018

Note 17. Other Post-Employment Benefits (Continued)

The January 1, 2017 valuation is used to determine the recommended contribution for fiscal year 2018.

Valuation date: January 1, 2017

Actuarial cost method: Projected unit credit cost method

Amortization method: Level percentage of pay, closed

Remaining amortization period: 26 years

Asset valuation method: Market value of assets

Actuarial Assumptions Utilized:

Investment rate of return: 7.50%

Pre-Medicare Medical cost trend rate: 7.00%

Medicare Eligible Medical cost trend rate: 5.00%

Ultimate trend rate 5.00%

Year of ultimate trend rate: 2022

Includes inflation at: 2.50%

Note 18. Employee Retirement System

A. Primary Government

Cobb County Government Employees’ Pension Plan

The Cobb County Government Employees’ Pension Plan is a single-employer defined benefit plan and the

contributing entity is Cobb County. The employees covered are County employees and public safety

employees. The Plan provides retirement benefits to participants according to provisions of the plan

document normally in the form of a life annuity.

Oversight of the Plan is by a five member Pension Board of Trustees composed of appointees by the Board

of Commissioners who represents the interest of the employees and taxpayers of the County. The Board of

Trustees provides an annual report to the Board of Commissioners. A stand alone financial report is not

prepared for the Plan. The benefit provisions and all other requirements are established by the Cobb County

Board of Commissioners. The Cobb County Board of Commissioners shall have the right at any time by

instrument of writing, to modify, alter or amend the Pension Plan in whole or in part, provided, however,

that any benefits which have actually accrued and become payable shall not be affected.

The distribution of number of employees by type of member is as follows:

Retired participants and beneficiaries currently receiving benefits 2,438

Terminated participants entitled to benefits, but not yet receiving benefits 957

Active participants 4,233

Total 7,628

Number of Participants as of January 1, 2018

Eligibility

For employees hired before January 1, 2009, the first day of the calendar month coinciding with or next

following the participant’s 65th birthday, or if later, the day the participant completes 7 years of service.

However, for any participant who has met all of the requirements to be eligible to retire under the Normal

70

Cobb County, Georgia

Notes to Financial Statements

September 30, 2018

Note 18. Employee Retirement System (Continued)

Retirement or Rule of 80 provisions as of December 31, 2008, the Normal Retirement Date shall remain the

later of age 65 and the completion of 5 years of service. For employees hired on or after January 1, 2009, the

later of age 65 or 10 years of service. For employees hired on or after January 1, 2010, the later of Social

Security Normal Retirement Age or 10 years of service.

Benefits

Member’s normal retirement pension shall equal 2.5% of the member’s total years of benefit accrual

service. For participants hired before January 1, 2009, the average of the 5 highest consecutive years of

compensation out of the last 10 years, provided that the final average compensation used shall not be less

than the 3 year final average compensation calculated as of December 31, 2008. However, any participant

who has met all of the requirements to be eligible to retire under the Normal Retirement or Rule of 80

provisions as of December 31, 2008 shall always be calculated using the 3 highest consecutive years of

compensation. For employees hired on or after January 1, 2009, the final average compensation will consist

of the average of the 5 highest consecutive years of compensation out of the last 10 years. For employees

hired on or after January 1, 2010 and any employee hired prior to this date who elected to enter the Hybrid

Plan, no overtime will be used in the final average compensation calculation. Member’s Hybrid Plan

pension shall equal 1.0% of the member’s total years of benefit accrual service.

The Pension Plan provides pre-retirement spouse death benefits. To be eligible the member must have Seven

years of service (or 10 depending on date of hire) and has been married one full year prior to death. If the

Participant was killed in the line of duty, there is no minimum service requirement. The benefit amount is

45% of the Participant’s Accrued Benefit determined as if death had occurred at their Normal Retirement

Date, assuming Credited Service continued until Normal Retirement Date and Compensation remained the

same. The benefit commences immediately and is reduced if the spouse is more than 10 years younger than

the Participant.

Contributions

The Cobb County Board of Commissioners establishes rates based on an actuarially determined rated recommended by an independent actuary. The actuarially determined rate is the estimated amount necessary

to finance the costs of benefits earned by plan members during the year, with an additional amount to

finance any unfunded accrued liability. The County is required to contribute the difference between the

actuarially determined rate and the contributions rate of plan members. For the year ended September 30,

2018, the traditional active member’s contribution rate went from 7.25% to 7.50% in March 2018 and the

County’s contribution rate was 19.68% of covered payroll. During the plan year, total pension contributions

were $47,521,805 from the County.

Investments

The pension plan’s policy in regard to the allocation of invested assets is established and may be amended

by the Pension Board of Trustees by a majority vote. It is the policy of the Board of Trustees to pursue an

investment strategy that reduces risk through the prudent diversification of the portfolio across a broad

selection of asset classes. The pension plan’s investment policy does not permit the following securities and

transactions without prior Trustee approval: 1) Letter stock and other unregistered; commodities or other

commodity contracts; short sales or margin transactions; uncovered and covered options. 2) Investments for

the purpose of exercising control of management. 3) Investments in companies that have filed petition for

bankruptcy.

71

Cobb County, Georgia

Notes to Financial Statements

September 30, 2018

Note 18. Employee Retirement System (Continued)

The long-term expected rate of return on pension plan investments was determined using a log-normal

distribution analysis in which best estimate ranges of expected future real rates of return (expected returns,

net of pension plan investment expenses and inflation) are developed for each major asset class. These

ranges are combined to produce the long-term expected rate of return by weighting the expected future real

rates of return by the target asset allocation percentage and by adding expected inflation.

The target asset allocation and best estimate of arithmetic real rates of return for each major asset class as of

September 30, 2018 are summarized below:

Target Long-Term Expected

Allocation Real Rate of Return

US Fixed Income 25% -0.20%

US Equity 33% 4.70%

US Equity Mid Cap 6% 5.20%

US Equity Small Cap 6% 5.40%

Global Equity 10% 5.50%

International Equity 20% 6.60%

Total 100%

Asset Class

For the year ended September 30, 2018, the annual money-weighted rate of return on the Pension Plan’s

investments, net of pension plan investment expense, was 9.19%. The money-weighted rate of return

expressed investment performance, net of investment expense, adjusted for the changing amounts actually

invested. 51B49B4

Net Pension Liability of the County

The net pension liability reported by the County was measured as of September 30, 2018. Updated

procedures were used to roll forward the total pension liability from the actuarial valuation as of January 1,

2018 to the plan’s fiscal year end, September 30, 2018. The components of the net pension liability of the

County as of September 30, 2018, were as follows:

Total Pension Liability 1,304,951,127$

Plan Fiduciary Net Position 672,787,107

County's Net Pension Liability 632,164,020$

Plan Fiduciary Net Position as a % of the

Total Pension Liability 51.56%

72

Cobb County, Georgia

Notes to Financial Statements

September 30, 2018

Note 18. Employee Retirement System (Continued)

Changes in Net Pension Liability were as follows:

Total Pension Plan Fiduciary Net Pension

Liability Net Position Liability

Balances at September 30, 2017 $ 1,160,261,241 $ 623,180,387 $ 537,080,854

Changes for the year:

Service cost 19,655,059 - 19,655,059

Interest 84,474,307 - 84,474,307

Benefit changes 58,281 - 58,281

Difference between expected

actual experience 21,523,872 - 21,523,872

Changes in assumptions 86,852,659 - 86,852,659

Contributions - employer - 47,521,805 (47,521,805)

Contributions - employee - 13,941,429 (13,941,429)

Net investment income - 56,169,683 (56,169,683)

Benefit payments, including

refunds of employee contributions (67,874,292) (67,874,292) -

Administrative expense - (248,784) 248,784

Other changes - 96,879 (96,879)

Net changes 144,689,886 49,606,720 95,083,166

Balance at September 30, 2018 $ 1,304,951,127 $ 672,787,107 $ 632,164,020

Actuarial Methods and Assumptions

The following actuarial assumptions used in the January 1, 2018 valuation were based on the results of an

actuarial experience study for the period January 1, 2017 through December 31, 2017:

Inflation 2.5%

Salary increases 3.0 to 4.0%, including inflation

Investment rate of return 7.5% net of pension plan investment expense,

and including inflation

Post-retirement benefit increases Not applicable

Mortality rates were based on the RP-2000 Employee Mortality Table projected with Scale BB to 2025, sex

distinct.

73

Cobb County, Georgia

Notes to Financial Statements

September 30, 2018

Note 18. Employee Retirement System (Continued)

The projection of cash flows used to determine the discount rate assumed that plan member and County

contributions will be made at the greater of actuarially determined contribution rates and rates adopted by

the County. Based on those assumptions, the pension plan’s fiduciary net position was projected to be

available to make all projected future benefit payments of current active and inactive employees. Therefore,

the long-term expected rate of return on pension plan investments was applied to all periods of projected

benefit payments to determine the total pension liability.

The following represents the net pension liability as of September 30, 2018, calculated using the discount

rate of 7.5 percent, as well as what the net pension liability would be calculated using a discount rate that is

1-percentage-point lower (6.5 percent) or 1-percentage-point higher (8.5 percent) than the current rate:

1% Current 1%

Decrease Discount Increase

(6.5%) (7.5%) (8.5%)

County's Net pension liability 784,868,102$ 632,164,020$ 503,683,528$

Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to

Pensions

For the year ended September 30, 2018, the County recognized pension expense of $70,131,538. At

September 30, 2018, the County reported deferred outflows of resources and deferred inflows of resources

related to pensions from the following sources:

Deferred Deferred

Outflows of Inflows of

Resources Resources

Difference between expected and

actual experience $ 45,424,607 $ -

Changes in assumptions 72,131,869 -

Net difference between projected and

actual earnings on plan investments - 23,087,838

Employer contributions subsequent to the

Measurement Date - -

Total $ 117,556,476 $ 23,087,838

Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions

will be recognized in pension expense as follows:

74

Cobb County, Georgia

Notes to Financial Statements

September 30, 2018

Note 18. Employee Retirement System (Continued)

Year ended September 30:

2019 $ 26,139,478

2020 17,207,353

2021 15,456,086

2022 19,133,709

2023 16,532,012

Thereafter -

Defined Contribution Plan

Effective January 1, 2010 the County adopted the ICMA Retirement Corporation Deferred Compensation

Plan and Trust, a Defined Contribution Plan administered by ICMA Retirement Corporation. This plan is

available to all County employees that employment date is after January 1, 2010. Under this plan the

County shall make matching contributions of 50% of an employee’s earnings, up to 4% of earning

contributed to the ICMA Retirement Corporation Deferred Compensation Plan and Trust. Participants become 100% vested in the plan after five years of service. Any forfeitures are available toward future

contributions. Plan provisions and contribution requirements are established and amended by the Board of

Trustees of Cobb County Government Employees’ Pension Plan. The County made actual contributions

during the year of $1,115,853 to the plan. Total forfeitures during the year were $112,218.

B. Blended Component Units

Defined Contribution Plan – Cobb Marietta Coliseum and Exhibit Hall Authority

The Authority contributes to the Cobb-Marietta Coliseum and Exhibit Hall Authority Profit-Sharing Plan,

which is a defined contribution plan under Section 401(a) of the Internal Revenue Code. The Plan is

administered by the ICMA-Retirement Corporation. At September 30, 2018, there were 140 plan members.

Plan provisions and contribution requirements are established and amended by the Authority. The plan

consists solely of employer contributions. All employees, full and part time, who have performed one (1)

hour of service, are eligible to participate in the plan. On Call employees are not eligible to participate.

Participants become fully vested in the plan after three (3) years of service.

A participant that leaves the employment of the Authority is entitled to their account balance if vesting

requirements are satisfied. Any forfeitures are used to reduce future employer contributions, or if no

contributions are required, forfeited amounts are allocated to participants. The employer has elected to

contribute 7.5% of each participant’s wages, or such amount so as to meet the requirement to qualify for

exclusion from participating in Social Security. The Authority made actual contributions during the year of

$517,398. Forfeitures during the year ended September 30, 2018 totaled $69,062.The plan does not have a

separate audited GAAP-basis postemployment benefit plan report. The plan held no securities of the

Authority or other related parties during the year.

The Authority also contributes to the Cobb-Marietta Coliseum and Exhibit Hall Authority Executive

Pension Plan (a 401 Government Money Purchase Plan). The Plan is administered by the ICMA Retirement

Corporation. At September 30, 2018, there were four plan member. Plan provisions and contribution

requirements are established and amended by the Authority. The plan consists solely of employee

contributions. Participants are immediately vested in the plan. The Authority made no contributions to the

plan during the year. The plan does not have a separate audited GAAP-basis plan report. The plan held no

securities of the Authority or other related parties during the year.

75

Cobb County, Georgia

Notes to Financial Statements

September 30, 2018

Note 18. Employee Retirement System (Continued)

The Authority also maintains a Roth IRA Plan; the Plan is administered by the ICMA-Retirement Corporation.

At September 30, 2018, there were 4 plan members. Plan provisions and contribution requirements are

established and amended by the Authority. The plan consists solely of employee contributions. Participants are

immediately vested in the plan. The Authority made no contributions to the plan during the year. The plan does

not have a separate audited GAAP-basis plan report. The plan held no securities of the Authority or other related

parties during the year.

Note 19. Arbitrage Liability

Section 148 of the Internal Revenue Code requires that, with certain exceptions, any arbitrage earned on the

investment of bond proceeds be paid to the federal government. The term “arbitrage” refers to the ability to

invest the proceeds of a relatively low interest rate state or municipal obligation in taxable market securities that

bear a higher interest rate. The County has recorded a liability for “arbitrage” in the following fund:

Water and Sewer Enterprise Fund $54,882

55B53B51BNote 20. Capital Contributions

Capital Contributions recognized as revenue in the Proprietary Funds for the fiscal year ending September 30,

2018 are presented below:

Source:

Developers 8,061,263$

Grants 12,008,311

Donations 9,930,488

30,000,062$

Note 21. Closure and Postclosure Care Costs

State and federal laws and regulations require that the County place a final cover on its landfills when closed and

perform certain maintenance and monitoring functions at the landfill sites for thirty years after closure. In

addition to operating expenses related to current activities of the landfills, an expense provision and related

liability are being recognized based on the future postclosure care costs that are being incurred now that the

landfills are no longer accepting waste. Two landfill sites reached capacity on September 6, 2001. The third

landfill site reached capacity on September 8, 2002. As of September 30, 2018, Cobb County has incurred a

liability totaling $22,874,846.

This liability is recorded in the Solid Waste Disposal Fund and represents the amount of costs reported to date

based on 100% of the original landfill capacity. The estimated remaining time for the landfills to be monitored

and maintained is 25 years. In accordance with GASB 18, the estimated total current cost is based on the amount

that would be paid if all equipment, facilities and services required to close, monitor and maintain the landfills

were acquired as of September 30, 2010.

However, the actual cost may be higher due to inflation, changes in technology or changes in landfill laws and

regulations.

76

Cobb County, Georgia

Notes to Financial Statements

September 30, 2018

Note 21. Closure and Postclosure Care Costs (Continued)

The County will fund the closure and postclosure care costs with subsidies from the General Fund. As of

September 30, 2018, no amount of assets has been restricted for the payment of closure and postclosure care

costs. The remaining portion of anticipated future inflation costs and additional costs that might arise from

changes in postclosure requirements (due to changes in technology or more rigorous environmental regulations,

for example) may need to be covered by charges to future landfill users, taxpayers, or both.

Note 22. Hotel/Motel Lodging Tax

Cobb County has levied an 8% lodging tax. A summary of the transactions for the year ending September 30,

2018 follows:

Lodging tax receipts $ 16,861,644

Debt service payment on refunding revenue bonds,

series 2013 (Performing Arts Center Project) UUU (3,540,875)

Balance of lodging tax was expended for the

promotion of tourism as required by OCGA 48-13-51 $ 13,320,769

7B7B7B

Note 23. Other Commitments

Commitments for water and sewerage system improvements and transit at September 30, 2018 totaled

approximately $31,886,582 and $32,168,102, respectively.

Encumbrances outstanding at year end are as follows:

Fire

Total

Encumbrances $ 6,132,031 $ 8,261,214 $ 75,085,552 $ $ 93,829,031

Governmental

FundsFund

General

4,350,234

Nonmajor

Fund District Fund

SPLOST

8B8B8

Note 24. Joint Ventures

Under Georgia law, the County, in conjunction with other cities and counties in the ten county metropolitan

Atlanta, Georgia areas, are members of the Atlanta Regional Commission (ARC). Membership in a Regional

Commission (RC) is required by the Official Code of Georgia Annotated (OCGA) Section 50-8-34 which

provides for the organizational structure of the RC in Georgia. The County paid dues in the amount of $827,330

to the ARC for the year ended September 30, 2018. The RC Board membership includes the chief elected

official of each county and municipality of the area. OCGA 50-8-39.1 provides that the member governments are

liable for any debts or obligations of a RC. Separate financial statements may be obtained from: Atlanta

Regional Commission, 229 Peachtree St. 100., Atlanta, Georgia 30303.

77

Cobb County, Georgia Notes to Financial Statements

September 30, 2018

Note 24. Joint Ventures (Continued)

The Marietta/Cobb/Smyrna Narcotics Unit (MCS) is considered a joint venture with no equity interest based upon criteria established in GASB Statement No. 14, as amended by GASB Statement No. 61. Pursuant to an interagency agreement established between the chief law enforcement officials for the Sheriff’s Office of Cobb County, the Cobb County Police Department, the Marietta Police Department, the Smyrna Police Department and the District Attorney’s Office of the Cobb Judicial Circuit, the unit was established in 1980 to bring the necessary manpower and resources together in a cooperative effort to stem the flow of illegal substances, organized crime and vice crimes within the community. The agreement is construed as a joint contract of services between governmental entities, authorized pursuant to the general provisions of Georgia law and Article IX, Section III, Paragraph 1 of the Constitution of the State of Georgia. The chief law enforcement officials for each participant outlined above together with the Solicitor General for the State Court of Cobb County comprise the Board of Directors of the MCS unit and direct the operations of the unit. The District Attorney of the Cobb County Judicial Circuit serves as the chairman of the Board and the Sheriff of Cobb County serves as the Secretary/Treasurer. During the fiscal year ended September 30, 2018, there were no transactions entered into between the County and the MCS unit. The MCS unit issues separate financial statements which may be obtained from the Cobb County Sheriff’s Office at 185 Roswell St., Marietta, GA 30090.

9B 9B9BNote 25. Related Organization

The Housing Authority of Cobb County is a related organization of Cobb County. The Housing Authority of Cobb County is excluded from the financial reporting entity because the County’s accountability does not extend beyond making appointments. Audited financial statements are available from the Housing Authority.

Note 26. Restatement

The County implemented GASB Statement No. 75 “Accounting and Financial Reporting for Postemployment Benefit Plans Other Than Pensions” during fiscal year 2018. Statement No.75 requires governments providing defined postemployment benefit plans to recognize their long-term obligation for OPEB benefits as a liability. The effect of this restatement to beginning net position is as follows:

Governmental Business Type Water-Sewer Other Enterprise Activities Activities Fund Funds

Beginning Net Position before Restatement 3,391,711,278$ 1,456,311,854$ 1,339,072,606$ 117,239,248$ Restatement - OPEB (187,575,514) (18,186,713) (17,718,312) (468,401)

Beginning Net Position after Restatement 3,204,135,764$ 1,438,125,141$ 1,321,354,294$ 116,770,847$

The effect of implementing GASB Statement No. 75 to previously reported changes in net position has not been determined.

Note 27.Subsequent Events

Subsequent to year end, a pump at one of the County’s water treatment facilities flooded causing a wastewater spill. As of the date of this report an estimate of the loss or possible loss had not been determined.

78

COMPREHENSIVE ANNUAL FINANCIAL REPORT Return to Table of Contents

Cobb County Finance Department, 100 Cherokee Street, Marietta, Georgia 30090

REQUIRED SUPPLEMENTAL INFORMATION

COBB COUNTY, GEORGIA

EMPLOYEE RETIREMENT SYSTEM

Required Supplementary Information

September 30, 2018

SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS

2018 2017 2016 2015 2014

Total Pension Liability

Service cost $ 19,655,059 $ 18,734,601 $ 18,841,425 $ 18,980,543 $ 16,461,299

Interest 84,474,307 80,415,811 76,728,937 72,176,032 67,327,012

Benefit changes 58,281 3,079,947 (319,947) 463,821 -

Difference between expected

actual experience 21,523,872 17,244,137 14,497,396 25,359,233 -

Changes in assumptions 86,852,659 - - - 33,157,574

Benefit payments, including

refunds of employee contributions (67,874,292) (62,848,129) (58,330,873) (54,262,097) (50,322,458)

Net change in Total Pension Liability $ 144,689,886 $ 56,626,367 $ 51,416,938 $ 62,717,532 $ 66,623,427

Total Pension Liability - Beginning $ 1,160,261,241 $ 1,103,634,874 $ 1,052,217,936 $ 989,500,404 $ 922,876,977

Total Pension Liability - Ending $ 1,304,951,127 $ 1,160,261,241 $ 1,103,634,874 $ 1,052,217,936 $ 989,500,404

Plan Fiduciary Net Position

Contributions - employer $ 47,521,805 $ 44,749,719 $ 42,300,849 $ 39,097,981 $ 34,397,013

Contributions - employee 13,941,429 12,461,897 12,981,148 12,083,766 11,801,194

Net investment income 56,169,683 75,860,411 46,845,674 (5,922,327) 47,291,379

Benefit payments, including

refunds of employee contributions (67,874,292) (62,848,129) (58,330,873) (54,262,097) (50,322,458)

Administrative expense (248,784) (239,862) (250,846) (241,372) (239,523)

Other changes 96,879 113,448 245,212 624,400 86,110

Net Change in Plan Fiduciary Net Position $ 49,606,720 $ 70,097,484 $ 43,791,164 $ (8,619,649) $ 43,013,715

Plan Fiduciary Net Position - Beginning $ 623,180,387 $ 553,082,903 $ 509,291,739 $ 517,911,388 $ 474,897,673

Plan Fiduciary Net Position - Ending $ 672,787,107 $ 623,180,387 $ 553,082,903 $ 509,291,739 $ 517,911,388

Net Pension Liability - Ending $ 632,164,020 $ 537,080,854 $ 550,551,971 $ 542,926,197 $ 471,589,016

Plan Fiduciary Net Position as a percentage

of the Total Pension Liability 51.56% 53.71% 50.11% 48.40% 52.34%

Covered Payroll 241,522,135 226,975,245 220,949,172 214,354,687 208,332,028

Net Pension Liability as a percentage

of Covered Payroll 261.74% 236.63% 249.18% 253.28% 226.36%

Note: Schedule is intended to show information for the last 10 fiscal years. Additional years will be displayed as they

become available.

79

COBB COUNTY, GEORGIA

EMPLOYEE RETIREMENT SYSTEM

Required Supplementary Information

September 30, 2018

SCHEDULE OF PENSION CONTRIBUTIONS

2018 2017 2016 2015 2014

Actuarially determined contribution $ 47,531,556 $ 43,482,797 $ 41,391,890 $ 38,791,424 $ 33,960,537

Contributions in relation to the actuarially

determined contribution 47,521,805 44,749,719 42,300,849 39,097,981 34,397,013

Contributions (excess) $ 9,751 $ (1,266,922) $ (908,959) $ (306,557) $ (436,476)

Covered Payroll $ 258,524,423 $ 247,754,285 $ 239,525,648 $ 230,445,554 $ 221,586,925

Contributions as a percentage of

covered payroll 18.38% 18.06% 17.66% 16.97% 15.52%

Note: Schedule is intended to show information for the last 10 fiscal years. Additional years will be displayed as they

become available.

80

COBB COUNTY, GEORGIA

EMPLOYEE RETIREMENT SYSTEM

Required Supplementary Information

September 30, 2018

SCHEDULE OF PENSION INVESTMENT RETURNS

Annual money – weighted rate of return, net of investment expense

09/30/14 10.54%

09/30/15 (1.04%)

09/30/16 9.68%

09/30/17 14.27%

09/30/18 9.19%

Note: Schedule is intended to show information for the last 10 fiscal years. Additional years will be displayed as they

become available.

81

COBB COUNTY, GEORGIA

EMPLOYEE RETIREMENT SYSTEM

Required Supplementary Information

September 30, 2018

NOTES TO REQUIRED SUPPLEMENTARY INFORMATION – PENSION

Actuarially determined contribution rates are calculated as of January 1, one year prior to the end of the fiscal year in

which contributions are reported. Significant methods and assumptions used in calculating the actuarially determined

contributions are as follows:

Valuation date: 01/01/17

Actuarial cost method: Projected unit credit cost method

Amortization method: Level percentage of pay

Remaining amortization period: 26 years

Asset valuation method: Five-year smoothed market value

The amortization period for this plan is closed.

Actuarial Assumptions Utilized:

Investment rate of return: 7.50%

Projected salary increases: 3.00 % to 4.00%

Includes inflation at 2.50%

Cost-of-living adjustments None

With the exception of the plan years listed below, there were no plan amendments.

In plan year 1995, the plan changed from the “market value” method to the “asset smoothing” method for valuing plan

assets. This change in assumption had no effect on the pension benefit obligation but did result in a contribution

decrease of $473,922 for that year. Also effective January 1, 1995, the plan was amended to allow for an early

retirement window incentive through the period ended December 31, 1994. This incentive allowed for the waiver of the

early retirement reduction factor for all eligible members. This amendment had no effect on the pension benefits

obligation but did result in a contribution increase of $276,783 for that year.

In plan year 1998, the Board of Commissioners adopted certain changes to the Plan, the most significant of which

included the adoption of a “Rule of 80” (combination of years of service and age) and an increase in the benefit

formula to 2.5% of final average salary multiplied by years of service from the current 1.5% per year (for service

before January 1, 1989). These changes became effective on April 1, 1998.

Employees of the County provide the required additional funding to the Plan. For all employees hired after April 1,

1998, participation is mandatory and requires a contribution of 4% of their salary. For existing employees, a one-time

enrollment option was provided, the exercise of which requires a contribution of 4% of their salary. If an existing

employee chose not to exercise this one-time option, their retirement benefits remained at the pre-April 1, 1998 level as

explained above.

Pursuant to plan enhancements adopted by the Board of Commissioners, as of April 1, 1998, all existing employees

were given the option to contribute and all new employees were required to contribute 4% of their basic annual

compensation in return for improved pension benefits as explained below. Effective October 1, 2005 the employee

contribution amount was increased to 4.50%. Effective February 12, 2006 and February 11, 2007 the rate increased to

4.75% and 5.00% respectively. Effective February 2010 the employee contribution rate increased from 5.00% to

5.50%. Effective February 2011 the employee contribution rate increased from 5.50% to 5.75%. Effective February

2012 the employee contribution rate increased from 5.75% to 6.00%. Effective February 2013 the employee

contribution rate increased from 6.00% to 6.25%. Effective February 2014 the employee contribution rate increased

from 6.25% to 6.50%. Effective February 2015 the employee contribution rate increased from 6.50% to 6.75%.

82

COBB COUNTY, GEORGIA

EMPLOYEE RETIREMENT SYSTEM

Required Supplementary Information

September 30, 2018

SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS

Total OPEB liability 2018 2017

Service Cost 3,987,889$ 4,607,942$

Interest 22,560,419 21,697,910

Benefit changes - -

Difference between expected and actual experience (11,337,230) -

Changes of assumptions 33,910,230 -

Benefit payments (15,574,024) (14,037,415)

Refunds of contributions - -

Net change in total OPEB liability 33,547,284 12,268,437

Total OPEB liability - beginning 308,592,601 296,324,164

Total OPEB liability - ending (a) 342,139,885$ 308,592,601$

Plan fiduciary net position

Contributions - employer 19,574,024$ 15,737,414$

Net investment income 9,285,533 13,343,168

Benefit payments (15,574,024) (14,037,415)

Administrative expense - (97,248)

Refunds of contributions - -

Other 300 -

Net change in plan net position 13,285,833$ 14,945,919$

Plan net position - beginning 112,725,104 97,779,185

Plan net position - ending (b) 126,010,937$ 112,725,104$

Net OPEB liability - ending (a) - (b) 216,128,948$ 195,867,497$

Plan fiduciary net position as a percentage of 36.83% 36.53%

the total OPEB liability

Covered payroll 248,606,290$ 232,958,602$

Net OPEB liability as a percentage of

covered payroll 86.94% 84.08%

Note: This schedule is intended to show information for the last 10 fiscal years. Additional years will be displayed as

they become available.

83

COBB COUNTY, GEORGIA

EMPLOYEE RETIREMENT SYSTEM

Required Supplementary Information

September 30, 2018

SCHEDULE OF OPEB CONTRIBUTIONS

2018 2017

Actuarially determined contribution 17,482,165$ 15,708,080$

Contributions in relation to the actuarially

determined contributions 19,574,024 15,571,652

Contribution deficiency (excess) (2,091,859)$ 136,428$

Covered payroll 248,606,290$ 232,958,602$

Actual contributions as a percentage of

covered payroll 7.87% 6.68%

Note: Schedule is intended to show information for the last 10 fiscal years. Additional years will be displayed as they

become available.

Notes to Schedule:

Valuation Date: January 1, 2017

Actuarially determined contribution rates are calculated as of January 1, one year prior to the end of the fiscal

year in which contributions are reported.

Methods and assumptions to determine contribution rates:

Actuarial cost method Projected unit credit

Amortization method Level percent of pay, closed

Remaining amortization period 26 years

Asset valuation method Market Value of Assets

Actuarial assumptions

Investment Rate of Return 7.50% includes inflation at 2.50%

Medical cost trend rate

Pre-Medicare 7.00% includes inflation at 2.50%

Medicare Eligible 5.00% includes inflation at 2.50%

Ultimate trend rate

Pre-Medicare 5.00% includes inflation at 2.50%

Medicare Eligible 5.00% includes inflation at 2.50%

Year of Ultimate trend rate 2022

84

COBB COUNTY, GEORGIA

EMPLOYEE RETIREMENT SYSTEM

Required Supplementary Information

September 30, 2018

SCHEDULE OF OPEB INVESTMENT RETURNS

Annual money – weighted rate of return, net of investment expense

09/30/17 14.29%

09/30/18 8.34%

Note: Schedule is intended to show information for the last 10 fiscal years. Additional years will be displayed as they

become available.

85

Cobb County, Georgia

General Fund

Schedule of Revenues, Expenditures and

Changes in Fund Balances - Budget and Actual (Budgetary Basis)

For the Fiscal Year Ended September 30, 2018

Variance with

Final Budget -

Positive

Original Final Actual (Negative)

Revenues:

Taxes $ 265,987,119 $ 268,487,119 $ 330,242,874 $ 61,755,755

Licenses and permits 25,330,040 25,361,091 28,512,052 3,150,961

Intergovernmental 3,144,000 3,533,414 3,495,832 (37,582)

Charges for services 45,006,736 45,991,698 48,787,501 2,795,803

Fines and forfeits 7,377,000 9,565,616 9,731,182 165,566

Interest earned 281,551 281,551 1,174,418 892,867

Miscellaneous 3,822,100 2,488,118 6,559,736 4,071,618

Total revenues 350,948,546 355,708,607 428,503,595 72,794,988

Expenditures:

Current:

General government 133,770,972 141,869,104 141,869,104 -

Public safety 151,835,314 166,222,137 166,222,123 14

Public works 17,327,480 17,467,167 17,467,167 -

Health and welfare 4,147,372 4,387,122 4,387,122 -

Culture and recreation 33,847,676 37,191,728 36,445,994 745,734

Housing and development 9,526,991 9,768,362 9,768,361 1

Debt service:

Interest and fiscal charges 130,888 466,368 435,480 30,888

Total expenditures 350,586,693 377,371,988 376,595,351 776,637

Excess (deficiency) of revenues

over (under) other expenditures 361,853 (21,663,381) 51,908,244 73,571,625

Other financing sources (uses):

Transfers in 32,821,990 34,776,521 32,502,226 (2,274,295)

Transfers out (47,514,761) (50,924,890) (50,798,214) 126,676

Proceeds from sale of capital assets - - 225,946 225,946

Total other financing sources (uses) (14,692,771) (16,148,369) (18,070,042) (1,921,673)

Net changes in fund balance $ (14,330,918) $ (37,811,750) 33,838,202 $ 71,649,952

Fund balances at beginning of year - GAAP basis 90,145,537

Fund balances at end of year - budgetary basis 123,983,739

Reconciliation to GAAP basis:

Elimination of encumbrances outstanding at

end of year 6,132,031

Fund balance at end of year - GAAP basis $ 130,115,770

Budgeted Amounts

86

Cobb County, Georgia

Fire District Special Revenue Fund

Schedule of Revenues, Expenditures and

Changes in Fund Balance - Budget and Actual (Budgetary Basis)

Variance with

Final Budget -

Positive

Original Final Actual (Negative)

Revenues:

Taxes $ 89,332,385 $ 89,332,385 $ 91,254,144 $ 1,921,759

Licenses and permits 5,000 5,000 5,100 100

Intergovernmental - - 7,311 7,311

Charges for services 1,830,100 1,830,100 2,026,562 196,462

Interest earned 108,000 108,000 235,142 127,142

Miscellaneous 5,000 48,286 50,893 2,607

Total revenues 91,280,485 91,323,771 93,579,152 2,255,381

Expenditures:

Current:

Personal services 72,395,689 72,505,430 72,505,430 -

Operating expenditures 10,498,295 11,780,816 11,780,766 50

Capital outlay 65,950 21,402,787 13,965,194 7,437,593

Debt service:

Interest and fiscal charges 65,000 165,511 165,511 -

Total expenditures 83,024,934 105,854,544 98,416,901 7,437,643

Excess (deficiency) of revenues

over (under) other expenditures 8,255,551 (14,530,773) (4,837,749) 9,693,024

Other financing sources (uses):

Transfers in - 7,444 7,444 -

Transfers out (156,291) (1,636,720) (1,636,720) -

Proceeds from sale of capital assets - - 19,419 19,419

Total other financing sources (uses) (156,291) (1,629,276) (1,609,857) 19,419

Net changes in fund balance $ 8,099,260 $ (16,160,049) (6,447,606) $ 9,712,443

Fund balance at beginning of year - GAAP basis 33,837,208

Fund balance at end of year - budgetary basis 27,389,602

Reconciliation to GAAP basis:

Elimination of encumbrances outstanding at

end of year 8,261,214

Fund balance at end of year - GAAP basis $ 35,650,816

Budgeted Amounts

For the Fiscal Year Ended September 30, 2018

87

COMPREHENSIVE ANNUAL FINANCIAL REPORT Return to Table of Contents

Cobb County Finance Department, 100 Cherokee Street, Marietta, Georgia 30090

NON-MAJOR FUNDS

COBB COUNTY, GEORGIA

September 30, 2018

NONMAJOR GOVERNMENTAL FUNDS

Special Revenue Funds

Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally

restricted to the expenditures for specific purposes.

The Law Library Fund provides for the operation and maintenance of the County’s law library.

The Community Services Fund accounts for the grant monies received from the Georgia Department of

Human Resources.

The Grant Fund accounts for grant monies received from various federal and state agencies.

The Housing and Urban Development Grant Fund accounts for monies received from the Department of

Housing and Urban Development under the Community Development Block Grant Program.

The Hotel/Motel Tax Fund accounts for the collection of taxes for a special taxing district.

The Emergency 911 Fund accounts for fee collection and the operation of the Emergency 911 system

within the County.

The Parking Deck Facility Fund accounts for the operation and maintenance of the Marietta Square

parking deck.

The 800 MHz Fund accounts for the operation, maintenance and collection of monies for the 800 MHz

core system.

The Streetlight District Fund accounts for the operation, maintenance and collection of monies for the

streetlight districts within Cobb County.

The Six Flags Special Service District Fund accounts for monies received from a specific property tax

levy for a special taxing district.

The Cumberland Special Service District 1 Fund accounts for monies received from service fees within

a special service district.

The Cumberland Special Service District 2 Fund accounts for monies received from a specific property

tax levy for a special taxing district.

The CMECEHA Fund is the Cobb Marietta Exhibit Hall Authority’s primary operating fund. It accounts

for all of the Authority’s resources of general government, except those required to be accounted for in

another fund.

The Stadium Capital Maintenance Fund accounts for the future capital maintenance of SunTrust Park.

0BCapital Projects Funds

Capital Projects Funds are used to account for the financial resources to be used for the acquisition or

construction of major capital facilities and improvements – other than those financed by Proprietary Funds.

The Public Facilities Fund accounts for monies transferred for various governmental funds for the purpose

of the construction of public facilities throughout the County.

88

COBB COUNTY, GEORGIA

September 30, 2018

The SCRA Construction Fund accounts issuance of the 2015 South Cobb Redevelopment Authority

Bonds and the various redevelopment and infrastructure improvement projects within the Six Flags Special

Service District.

The Parks Bond Land Acquisition Fund accounts for the issuance of the 2017 Parks Bonds and the costs

of acquiring park land within the County.

The Stadium Construction Fund accounts for the acquisition, construction, and equipping of the stadium

project.

The CMCEHA Stadium Construction Fund accounts for the acquisition, construction, and equipping of

the stadium project.

1BDebt Service Fund

The CMCEHA Debt Service Fund accounts for resources accumulated and payments made for principal

and interest on the governmental activity revenue bonds.

The BOC Debt Service Fund is utilized to account for the accumulation and disbursement of money

needed to comply with the interest and principal redemption requirements of the governmental fund type

general obligation bonds.

2BNONMAJOR BUSINESS-TYPE FUNDS

3BEnterprise Funds

The Enterprise Funds account for the activities that are usually self-sustaining, principally through user

charges for services rendered. The accounting records are maintained on the same basis as a commercial

business.

The Cobblestone Golf Course Fund accounts for the operation and maintenance of the Cobblestone Golf

Course.

The Public Transit System Fund accounts for the operation and maintenance of the local public transit

system and accounts for the monies received from the Federal Transit Authority.

The Solid Waste Disposal Fund accounts for the revenues and expenses relating to the disposal of solid

waste.

The Performing Arts Centre Fund accounts for the activities of the Performing Arts Centre.

The Galleria Specialty Shops Fund accounts for the activities of the Authority’s retail specialty shops

mall operations.

4BFiduciary Funds

5BAgency Funds

Agency Funds account for assets held by the County as an agent for individuals, private organizations,

other governments and other County departments.

89

Stadium CMECHA

Land Acquisition Construction Stadium Construction

Fund Fund Fund

Assets

Cash and cash equivalents $ 22,451,419 $ 93,738 $ 1,036,250 $ 2,392,633 $ 5,103 $ 5,304 $ 10,120,024 $ 3,576,152 $ 39,680,623

Restricted cash and cash equivalents 19,398,080 - - - - - - - - - - - - 19,398,080

Receivables:

Taxes 5,663,841 - - - - - - 3,456,978 9,120,819

Other 3,190,444 - - - - - - - - - - - 9,328 3,199,772

Due from other funds -2,461,133 1,954,364 - - - - - - 4,415,497

Due from other governments and agencies 2,959,365 472,966 - - - - - - 3,432,331

Advances to component unit 1,318,809 - - - - - - - 1,318,809

Inventories 52,657 - - - - - - - 52,657

Prepaid expenditures 216,695 139,555 - - - - - - 356,250

Total assets $ 57,712,443 $ 2,660,623 $ 1,036,250 $ 2,392,633 $ 5,103 $ 5,304 $ 10,120,024 $ 7,042,458 $ 80,974,838

Liabilities, Deferred Inflows of Resources,

and Fund Balances

Liabilities:

Accounts payable $ 2,252,194 $ 690,974 $ 13,929 875 $ - $ - $ - $ - $ 2,957,972

Accrued payroll 623,311 - - - - - - - 623,311

Due to other funds 1,180,836 - - - - - - - 1,180,836

Due to others 1,348,836 - - - - - - - 1,348,836

Due to other governments and agencies 166,456 193,928 - - - - - - 360,384

Matured bonds payable - - - - - - 3,310,000 - 3,310,000

Accrued interest payable - - - - - - 1,039,781 - 1,039,781

Unearned revenue 1,705,117 11,045 - - - - - - 1,716,162

Total liabilities 7,276,750 895,947 13,929 875 - - 4,349,781 - 12,537,282

Deferred inflows of resources

Unavailable revenues 185,698 - - - - - - 136,723 322,421

Total liabilities and deferred inflows

of resources 7,462,448 895,947 13,929 875 - - 4,349,781 136,723 12,859,703

Fund balances:

Nonspendable

Inventories and prepaid items 269,352 139,555 - - - - - - 408,907

Restricted for:

Debt service 9,327,946 - - - - - 5,770,243 6,905,735 22,003,924

Construction and capital outlay - - 1,022,321 2,391,758 5,103 5,304 - - 3,424,486

Special programs 39,549,463 - - - - - - - 39,549,463

Committed for:

Construction and capital outlay - 3,553,966 - - - - - - 3,553,966

Special programs 1,101,673 - - - - - - - 1,101,673

Assigned for:

Special programs 1,595 - - - - - - - 1,595

Unassigned (34) (1,928,845) - - - - - - (1,928,879)

Total fund balances 50,249,995 1,764,676 1,022,321 2,391,758 5,103 5,304 5,770,243 6,905,735 68,115,135

Total liabilities, deferred inflows

of resources, and fund balances $ 57,712,443 $ 2,660,623 $ 1,036,250 $ 2,392,633 $ 5,103 $ 5,304 $ 10,120,024 $ 7,042,458 $ 80,974,838

Cobb County, Georgia

All Nonmajor Governmental Funds

Combining Balance Sheet

September 30, 2018

Debt Service

Funds

BOC

Fund Fund

Governmental

Total Nonmajor

Fund

Parks Bond CMCEHA

Debt Service

Funds

Total Nonmajor

Special Revenue

Fund

SCRA

Facilities Construction

Public

90

CMCEHA

SCRA Parks Bond Stadium Stadium CMCEHA BOC

Construction Land Acquisition Construction Construction Debt Service Debt Service

Fund Fund Fund Fund Fund Fund

Revenues:

Taxes $ 24,309,070 $ - $ - $ - $ - $ - $ - $ 5,429,396 $ 29,738,466

License and permits - 600 - - - - - - 600

Intergovernmental 20,497,279 1,541,662 - - 2,500,000 - - - 24,538,941

Charges for services 37,800,024 - - - - - - 98,849 37,898,873

Contributions 1,230,000 - - - - 1,074,144 - - 2,304,144

Interest earned 471,360 9,489 10,273 171,415 31 30 132,209 53,184 847,991

Miscellaneous 1,557,120 888,697 - 119,632 - - - - 2,565,449

Total revenues 85,864,853 2,440,448 10,273 291,047 2,500,031 1,074,174 132,209 5,581,429 97,894,464

Expenditures:

Current:

General government 8,922,656 - - - - - - 200,665 9,123,321

Public safety 14,789,118 - - - - - - - 14,789,118

Public works 5,416,272 - - - - - - - 5,416,272

Health and welfare 3,165,384 - - - - - - - 3,165,384

Culture and recreation 19,137,432 - - - - - - - 19,137,432

Housing and development 6,321,705 - - - - - - - 6,321,705

Capital outlay - 11,014,913 3,736,716 25,219,701 - 3,574,144 - - 43,545,474

Debt Service:

Principal retirement 2,465,000 269,793 375,000 - - - 11,575,000 5,795,000 20,479,793

Interest and fiscal charges 1,818,813 167,889 332,448 - - - 17,492,632 1,180,256 20,992,038

Total expenditures 62,036,380 11,452,595 4,444,164 25,219,701 - 3,574,144 29,067,632 7,175,921 142,970,537

Excess (deficiency) of revenues

over (under) expenditures 23,828,473 (9,012,147) (4,433,891) (24,928,654) 2,500,031 (2,499,970) (28,935,423) (1,594,492) (45,076,073)

Other financing sources (uses):

Transfers in 14,996,812 11,408,153 708,865 - - 2,500,000 29,005,758 - 58,619,588

Transfers out (30,109,222) (2,109,712) - - (2,500,000) - - - (34,718,934)

Proceeds from sale of capital assets 9,495 8,799 - - - - - - 18,294

Total other financing sources (uses) (15,102,915) 9,307,240 708,865 - (2,500,000) 2,500,000 29,005,758 - 23,918,948

Net change in fund balances 8,725,558 295,093 (3,725,026) (24,928,654) 31 30 70,335 (1,594,492) (21,157,125)

Fund balances at beginning of year 41,524,437 1,469,583 4,747,347 27,320,412 5,072 5,274 5,699,908 8,500,227 89,272,260

Fund balances at end of year $ 50,249,995 $ 1,764,676 $ 1,022,321 $ 2,391,758 $ 5,103 $ 5,304 $ 5,770,243 $ 6,905,735 $ 68,115,135

Funds

Total Nonmajor

Special Revenue

Funds

Public

Facilities

Fund

Cobb County, Georgia

All Nonmajor Governmental Funds

Combining Statement of Revenues, Expenditures and Changes in Fund Balances

For the Fiscal Year Ended September 30, 2018

Total Nonmajor

Governmental

91

Law Community Housing & Urban Parking Deck

Library Services Development Hotel/Motel Emergency Facility

Fund Fund Grant Fund Grant Fund Tax Fund 911 Fund Fund

Assets

Cash and cash equivalents $ 48,861 $ 6,504 $ 1,131,110 $ 191,208 $ - $ 3,717,423

Restricted cash and cash equivalents - - - - - -

Receivables:

Taxes and penalties - - - - - -

Other -27,700 - - 80,483 - - 1,972,369

Due from other funds -14,945 - - 199,541 - 551,972 -

Due from other governments and agencies - - 129,635 2,038,869 648,243 - - -

Advances to others - - - - - -

Inventories - - - - - -

Prepaid expenditures - - - - 3,758 - - - 37,346

Total assets $ 91,506 $ 136,139 $ 3,453,761 $ 839,451 $ 551,972 $ 5,727,138

Liabilities, Deferred Inflows of

Resources, and Fund Balances

Liabilities:

Accounts payable $ -155 $ -131,739 $ -591,851 $ - 547,314 $ - - $ -46,770

Accrued payroll 2,331 - 16,456 - - 140,189

Due to other funds - 4,434 31,390 - 551,972 -

Due to others - - - - - 2,958

Due to other governments

and agencies - - 61,090 - - -

Unearned revenue - - 163,663 - - -

Total liabilities 2,486 136,173 864,450 547,314 551,972 189,917

Deferred Inflows of Resources

Unavailable revenues - - - - - -

Total Liabilities and Deferred

Inflows of Resources 2,486 136,173 864,450 547,314 551,972 189,917

Fund balances:

Nonspendable

Inventories and prepaid items - - 3,758 - - 37,346

Restricted for:

Debt service - - - - - -

Special programs 89,020 - 2,585,553 292,137 - 5,499,875

Committed for:

Special programs - - - - - -

Assigned for:

Special Programs - - - - - -

Unassigned - (34) - - - -

Total fund balances 89,020 (34) 2,589,311 292,137 - 5,537,221

Total Liabilities, Deferred Inflows

of Resources, and Fund Balances $ 91,506 $ 136,139 $ 3,453,761 $ 839,451 $ 551,972 $ 5,727,138 $

September 30, 2018

Combining Balance Sheet

Nonmajor Governmental Funds - Special Revenue Funds

Cobb County, Georgia

92

Parking Deck Streetlight Cumberland

Facility 800 MHz District Special Service CMCEHA

Fund Fund Fund District 2 Fund Fund Fund

$ 99,118 $ 13,783 $ 4,315,484 $ 249,872 $ 3,113,305 $ 3,599,931 $ 1,054,399 $ 4,910,421 $ 22,451,419

- - - - - - 19,398,080 - 19,398,080

- - - 811,244 - 4,852,597 - - 5,663,841

22,166 - 270,931 - - - 816,795 - 3,190,444

- - - - - - - 1,694,675 - 2,461,133

- - - - - - - 142,618 - 2,959,365

- - - - - - 1,318,809 - 1,318,809

- - - - - - 52,657 - 52,657

- - - - - - - 175,591 - 216,695

$ 121,284 $ 13,783 $ 4,586,415 $ 1,061,116 $ 3,113,305 $ 8,452,528 $ 24,653,624 $ 4,910,421 $ 57,712,443

$ -6,552 $ - - $ -162,045 $ - - $ - - $ - - $ -765,768 $ - - $ -2,252,194

35 - 3,418 - - - 460,882 - 623,311

- - - - - - 593,040 - 1,180,836

- - 916 - - - 1,344,962 - 1,348,836

- - - - - - 105,366 - 166,456

- - - - - - 1,541,454 - 1,705,117

6,587 - 166,379 - - - 4,811,472 - 7,276,750

- - - 12,640 - 173,058 - - 185,698

6,587 - 166,379 12,640 - 173,058 4,811,472 - 7,462,448

- - - - - - 228,248 - 269,352

- - - 1,048,476 - 8,279,470 - - 9,327,946

- 13,783 4,420,036 - 3,113,305 - 18,625,333 4,910,421 39,549,463

113,102 - - - - - 988,571 - 1,101,673

1,595 - - - - - - - 1,595

- - - - - - - - (34)

114,697 13,783 4,420,036 1,048,476 3,113,305 8,279,470 19,842,152 4,910,421 50,249,995

$ 121,284 $ 13,783 $ 4,586,415 $ 1,061,116 $ 3,113,305 $ 8,452,528 $ 24,653,624 $ 4,910,421 $ 57,712,443

Stadium

Capital

Maintenance

District Fund

Special Revenue

Total Nonmajor

FundsDistrict 1 Fund

Cumberland

Special Service

Six Flags

Special Service

93

Law Community Parking Deck

Library Services Hotel/Motel Emergency Facility

Fund Fund Grant Fund Tax Fund 911 Fund Fund

Revenues:

Taxes $ - - $ - - $ - - $ - - $ - 16,861,644 $ - -

Intergovernmental - - -768,128 -11,861,057 -5,802,332 - - - -

Charges for services 544,182 - 8,215 - - 13,886,600

Contributions - - - - - -

Interest earned 435 - 42,191 1,090 - 36,181

Miscellaneous 3,820 - 1,096,432 449,571 - 6,143

Total revenues 548,437 768,128 13,007,895 6,252,993 16,861,644 13,928,924

Expenditures:

Current:

General government 493,024 - 8,429,632 - - -

Public safety - - 2,057,409 - - 12,731,709

Public works - - 105,860 - - -

Health and welfare - 735,904 2,429,480 - - -

Culture and recreation - - 282,057 - 40,000 -

Housing and development - - 107,649 6,214,056 - -

Debt service:

Principal retirement - - - - 2,015,000 -

Interest and fiscal charges - - - - 1,525,875 -

Total expenditures 493,024 735,904 13,412,087 6,214,056 3,580,875 12,731,709

Excess (deficiency) of revenues

over (under) expenditures 55,413 32,224 (404,192) 38,937 13,280,769 1,197,215

Other financing sources (uses):

Transfers in - - 2,294,999 148,974 - -

Transfers out (50,000) (32,189) (74,599) (148,975) (13,280,769) -

Proceeds for sale of capital assets 8,463 - - - - 1,032

Total other financing

sources (uses) (41,537) (32,189) 2,220,400 (1) (13,280,769) 1,032

Net change in fund balances 13,876 35 1,816,208 38,936 - 1,198,247

Fund balances at beginning of year 75,144 (69) 773,103 253,201 - 4,338,974

Fund balances at end of year $ 89,020 $ (34) $ 2,589,311 $ 292,137 $ - $ 5,537,221

Housing & Urban

Development

Cobb County, Georgia

For the Fiscal Year Ended September 30, 2018

Combining Statement of Revenues, Expenditures and Changes in Fund Balances

Nonmajor Governmental Funds - Special Revenue Funds

Grant Fund

94

Parking Deck Streetlight Six Flags Special

Facility 800 MHz District Service District

Fund Fund Fund Fund Fund

$ - - $ - - $ - - $ - 919,418 $ - - $ - 6,528,008 $ - - $ - - $ - 24,309,070

- - - - - - - - - - - - -2,065,762 - - -20,497,279

695,722 - 5,913,380 - 3,708,243 - 13,043,682 - 37,800,024

- - - - - - - 1,230,000 1,230,000

619 145 39,224 5,843 32,302 41,282 225,715 46,333 471,360

1,154 - - - - - - - 1,557,120

697,495 145 5,952,604 925,261 3,740,545 6,569,290 15,335,159 1,276,333 85,864,853

- - - - - - - - 8,922,656

- - - - - - - - 14,789,118

271,463 - 5,038,949 - - - - - 5,416,272

- - - - - - - - 3,165,384

- - - - - - 18,815,375 - 19,137,432

- - - - - - - - 6,321,705

450,000 - - - - - - - 2,465,000

292,938 - - - - - - - 1,818,813

1,014,401 - 5,038,949 - - - 18,815,375 - 62,036,380

(316,906) 145 913,655 925,261 3,740,545 6,569,290 (3,480,216) 1,276,333 23,828,473

329,829 - - - - - 10,993,010 1,230,000 14,996,812

- - (25,468) (708,865) (3,616,729) (5,150,000) (7,021,628) - (30,109,222)

- - - - - - - - 9,495

329,829 - (25,468) (708,865) (3,616,729) (5,150,000) 3,971,382 1,230,000 (15,102,915)

12,923 145 888,187 216,396 123,816 1,419,290 491,166 2,506,333 8,725,558

101,774 13,638 3,531,849 832,080 2,989,489 6,860,180 19,350,986 2,404,088 41,524,437

$ 114,697 $ 13,783 $ 4,420,036 $ 1,048,476 $ 3,113,305 $ 8,279,470 $ 19,842,152 $ 4,910,421 $ 50,249,995

Total Nonmajor

Special RevenueMaintenanceService District 1

Cumberland Cumberland Stadium

Funds

Special

CMCEHA

Special

FundFund

Service District 2

Capital

Fund

95

Cobb County, Georgia

CMCEHA Debt Service Fund

Schedule of Revenues, Expenditures and

Changes in Fund Balance - Budget and Actual

For the Fiscal Year Ended September 30, 2018

Variance with

Final Budget -

Positive

Original Final Actual (Negative)

Revenues:

Investment earnings $ 57,120 $ 62,120 $ 132,209 $ 70,089

Total revenues $ 57,120 $ 62,120 $ 132,209 $ 70,089

Expenditures:

Debt service:

Principal retirement $ 4,130,000 $ 4,135,000 $ 11,575,000 $ (7,440,000)

Interest and fiscal charges 2,453,846 2,453,846 17,492,632 (15,038,786)

Total expenditures $ 6,583,846 $ 6,588,846 $ 29,067,632 $ (22,478,786)

Excess (deficiency) of revenues over

expenditures $ (6,526,726) $ (6,526,726) $ (28,935,423) $ (22,408,697)

Other financing sources (uses):

Transfers in $ 6,582,625 $ 6,582,625 $ 29,005,758 $ 22,423,133

Total other financing sources (uses) $ 6,582,625 $ 6,582,625 $ 29,005,758 $ 22,423,133

Net change in fund balance $ 55,899 $ 55,899 $ 70,335 $ 14,436

Fund balance at beginning of year - GAAP basis 5,699,908

Fund balance at end of year - GAAP basis $ 5,770,243

Budgeted Amounts

96

Cobb County, Georgia

BOC Debt Service Fund

Schedule of Revenues, Expenditures and

Changes in Fund Balance - Budget and Actual

For the Fiscal Year Ended September 30, 2018

Variance with

Final Budget -

Positive

Original Final Actual (Negative)

Revenues:

Taxes $ 4,896,972 $ 4,896,972 $ 5,429,396 $ 532,424

Charges for services - - 98,849 98,849

Interest earned - - 53,184 53,184

Total revenues $ 4,896,972 $ 4,896,972 $ 5,581,429 $ 684,457

Expenditures:

Current:

Operating expenditures $ 215,413 $ 215,413 $ 200,665 $ 14,748

Debt service:

Principal retirement 5,795,000 5,795,000 5,795,000 -

Interest and fiscal charges 1,185,257 1,185,257 1,180,256 5,001

Total expenditures $ 7,195,670 $ 7,195,670 $ 7,175,921 $ 19,749

Excess (deficiency) of revenues over

expenditures $ (2,298,698) $ (2,298,698) $ (1,594,492) $ 704,206

Net change in fund balance $ (2,298,698) $ (2,298,698) $ (1,594,492) $ 704,206

Fund balance at beginning of year - GAAP basis 8,500,227

Fund balance at end of year - GAAP basis $ 6,905,735

Budgeted Amounts

97

Cobb County, Georgia

Law Library Special Revenue Fund

Schedule of Revenues, Expenditures and

Changes in Fund Balance - Budget and Actual (Budgetary Basis)

For the Fiscal Year Ended September 30, 2018

Original Final Actual

Revenues:

Charges for services $ 565,688 $ 565,688 $ 544,182 $ (21,506)

Interest earned 100 100 435 335

Miscellaneous 5,000 5,000 3,820 (1,180)

Total revenues $ 570,788 $ 570,788 $ 548,437 $ (22,351)

Expenditures:

Current:

Personal services $ 187,671 $ 209,925 $ 209,925 $ -

Operating expenditures 383,117 311,948 284,074 27,874

Total expenditures $ 570,788 $ 521,873 $ 493,999 $ 27,874

Excess of revenues over

expenditures $ - $ 48,915 $ 54,438 $ 5,523

Other financing sources (uses):

Transfers out - (50,000) (50,000) -

Proceeds from sale of capital assets - - 8,463 8,463

Total other financing sources (uses) $ - $ (50,000) $ (41,537) $ 8,463

Net change in fund balance $ - $ (1,085) $ 12,901 $ 13,986

Fund balance at beginning of year - GAAP basis 75,144

Fund balance at end of year - budgetary basis $ 88,045

Reconciliation to GAAP basis:

Elimination of encumbrances outstanding

at end of year -975

Fund balance at end of year-GAAP basis $ 89,020

(Negative)

Budgeted Amounts

Variance with

Final Budget -

Positive

98

Cobb County, Georgia

Community Services Special Revenue Fund

Schedule of Revenues, Expenditures and

Changes in Fund Balance - Budget and Actual

For the Fiscal Year Ended September 30, 2018

Variance with

Final Budget -

Positive

Original Final Actual (Negative)

Revenues:

Intergovernmental $ 691,798 $ 805,389 $ 768,128 $ (37,261)

Total revenues $ 691,798 $ 805,389 $ 768,128 $ (37,261)

Expenditures:

Current:

Operating expenditures $ 691,798 $ 805,389 $ 735,904 $ 69,485

Total expenditures $ 691,798 $ 805,389 $ 735,904 $ 69,485

Excess of revenues over expenditures $ - $ - $ 32,224 $ 32,224

Other financing sources (uses):

Transfers out $ - $ - $ (32,189) $ (32,189)

Net change in fund balance $ - $ - $ 35 $ 35

Fund balance at beginning of year - GAAP basis (69)

Fund balance (deficit) at end of year - GAAP basis $ (34)

Budgeted Amounts

99

Cobb County, Georgia

Hotel/Motel Tax Special Revenue Fund

Schedule of Revenues, Expenditures and

Changes in Fund Balance - Budget and Actual

For the Fiscal Year Ended September 30, 2018

Variance with

Final Budget -

Positive

Original Final Actual (Negative)

Revenues:

Taxes $ 14,500,000 $ 16,885,617 $ 16,861,644 $ (23,973)

Total revenues $ 14,500,000 $ 16,885,617 $ 16,861,644 $ (23,973)

Expenditures:

Current:

Operating expenditures $ 9,259,125 $ 10,602,500 $ 40,000 $ 10,562,500

Debt service:

Principal retirement 2,015,000 2,015,000 2,015,000 -

Interest and fiscal charges 1,525,875 1,525,875 1,525,875 -

Total expenditures $ 12,800,000 $ 14,143,375 $ 3,580,875 $ 10,562,500

Excess of revenues over expenditures $ 1,700,000 $ 2,742,242 $ 13,280,769 $ 10,538,527

Other financing sources (uses):

Transfers out $ (1,700,000) $ (2,742,242) $ (13,280,769) $ (10,538,527)

Total other financing sources (uses) $ (1,700,000) $ (2,742,242) $ (13,280,769) $ (10,538,527)

Net change in fund balance $ - $ - $ - $ -

Fund balance at beginning of year - GAAP basis -

Fund balance at end of year - GAAP basis $ -

Budgeted Amounts

100

Cobb County, Georgia

Emergency 911 Special Revenue Fund

Schedule of Revenues, Expenditures and

Changes in Fund Balance - Budget and Actual (Budgetary Basis)

For the Fiscal Year Ended September 30, 2018

Variance with

Final Budget -

Positive

Original Final Actual (Negative)

Revenues:

Charges for services $ 11,875,000 $ 11,875,000 $ 13,886,600 $ 2,011,600

Interest earned 3,000 3,000 36,181 33,181

Miscellaneous 7,500 7,500 6,143 (1,357)

Total revenues $ 11,885,500 $ 11,885,500 $ 13,928,924 $ 2,043,424

Expenditures:

Current:

Personnel services $ 9,741,630 $ 9,783,150 $ 9,783,150 $ -

Operating expenditures 2,430,551 2,695,845 2,695,820 25

Capital outlay - 284,671 284,671 -

Total expenditures $ 12,172,181 $ 12,763,666 $ 12,763,641 $ 25

Excess (deficiency) of revenues over

(under) expenditures $ (286,681) $ (878,166) $ 1,165,283 $ 2,043,449

Other financing sources (uses):

Proceeds from sale of capital assets $ - $ - $ 1,032 $ -

Total other financing sources (uses) $ - $ - $ 1,032 $ -

Net change in fund balance $ (286,681) $ (878,166) $ 1,166,315 $ 2,044,481

Fund balance at beginning of year - GAAP basis 4,338,974

Fund balance at end of year - budgetary basis $ 5,505,289

Reconciliation to GAAP basis:

Elimination of encumbrances outstanding at

end of year 31,932

Fund balance at end of year - GAAP basis $ 5,537,221

Budgeted Amounts

101

Cobb County, Georgia

Parking Deck Facility Special Revenue Fund

Schedule of Revenues, Expenditures and

Changes in Fund Balance - Budget and Actual (Budgetary Basis)

For the Fiscal Year Ended September 30, 2018

Variance with

Final Budget -

Positive

Original Final Actual (Negative)

Revenues:

Charges for services $ 674,000 $ 674,000 $ 695,722 $ 21,722

Interest earned - - 619 619

Miscellaneous 1,500 1,500 1,154 (346)

Total revenues $ 675,500 $ 675,500 $ 697,495 $ 21,995

Expenditures:

Current:

Personnel services $ 83,546 $ 82,243 $ 43,598 $ 38,645

Operating expenditures 178,845 184,287 184,287 -

Capital outlay - 46,165 46,165 -

Debt service:

Principal retirement 450,000 450,000 450,000 -

Interest and fiscal charges 292,938 292,938 292,938 -

Total expenditures $ 1,005,329 $ 1,055,633 $ 1,016,988 $ 38,645

Excess (deficiency) of revenues over

(under) expenditures $ (329,829) $ (380,133) $ (319,493) $ 60,640

Other financing sources (uses):

Transfers in $ 329,829 $ 329,829 $ 329,829 $ -

Total other financing sources (uses) $ 329,829 $ 329,829 $ 329,829 $ -

Net change in fund balance $ - $ (50,304) $ 10,336 $ 60,640

Fund balance at beginning of year - GAAP basis 101,774

Fund balance at end of year - budgetary basis $ 112,110

Reconciliation to GAAP basis:

Elimination of encumbrances outstanding at

end of year 2,587

Fund balance at end of year - GAAP basis $ 114,697

Budgeted Amounts

102

Variance with

Final Budget -

Positive

Original Final Actual (Negative)

Revenues:

Interest earned $ - $ - $ 145 $ 145

Total revenues $ - $ - $ 145 $ 145

Excess (deficiency) of revenues over

(under) expenditures $ - $ - $ 145 $ 145

Net change in fund balance $ - $ - $ 145 $ 145

Fund balance at beginning of year - GAAP basis 13,638

Fund balance at end of year - GAAP basis $ 13,783

Budgeted Amounts

Cobb County, Georgia

800 MHz Special Revenue Fund

Schedule of Revenues, Expenditures and

Changes in Fund Balance - Budget and Actual

For the Fiscal Year Ended September 30, 2018

103

Cobb County, Georgia

Street Light District Special Revenue Fund

Schedule of Revenues, Expenditures and

Changes in Fund Balance - Budget and Actual

For the Fiscal Year Ended September 30, 2018

Original Final Actual

Revenues:

Charges for services $ 5,931,597 $ 5,931,597 $ 5,913,380 $ (18,217)

Interest earned - - 39,224 39,224

Total revenues $ 5,931,597 $ 5,931,597 $ 5,952,604 $ 21,007

Expenditures:

Current:

Personal services $ 264,776 $ 307,276 $ 205,267 $ 102,009

Operating expenditures 5,639,821 7,997,321 4,833,682 3,163,639

Capital outlay - 24,826 - 24,826

Total expenditures $ 5,904,597 $ 8,329,423 $ 5,038,949 $ 3,290,474

Excess of revenues over

expenditures $ 27,000 $ (2,397,826) $ 913,655 $ 3,311,481

Other financing sources (uses):

Transfers out $ (27,000) $ (27,000) $ (25,468) $ 1,532

Total other financing sources (uses) $ (27,000) $ (27,000) $ (25,468) $ 1,532

Net change in fund balance $ - $ (2,424,826) $ 888,187 $ 3,313,013

Fund balance at beginning of year - GAAP basis 3,531,849

Fund balance at end of year-GAAP basis $ 4,420,036

Variance with

Final Budget -

Budgeted Amounts Positive

(Negative)

104

Cobb County, Georgia

Six Flags Special Service District Special Revenue Fund

Schedule of Revenues, Expenditures and

Changes in Fund Balance - Budget and Actual

For the Fiscal Year Ended September 30, 2018

Variance with

Final Budget -

Positive

Original Final Actual (Negative)

Revenues:

Taxes $ 703,248 $ 703,248 $ 919,418 $ 216,170

Interest earned - - 5,843 5,843

Total revenues $ 703,248 $ 703,248 $ 925,261 $ 222,013

Excess (deficiency) of revenues over

expenditures $ 703,248 $ 703,248 $ 925,261 $ 222,013

Other financing sources (uses):

Transfers out $ - $ - (708,865) (708,865)

Total other financing sources (uses) $ - $ - $ (708,865) $ (708,865)

Net change in fund balance $ 703,248 $ 703,248 $ 216,396 $ (486,852)

Fund balance at beginning of year - GAAP basis 832,080

Fund balance at end of year - GAAP basis $ 1,048,476

Budgeted Amounts

105

Cobb County, Georgia

Cumberland Special Service District 1 Special Revenue Fund

Schedule of Revenues, Expenditures and

Changes in Fund Balance - Budget and Actual

For the Fiscal Year Ended September 30, 2018

Variance with

Final Budget -

Positive

Original Final Actual (Negative)

Revenues:

Charges for services $ 3,600,000 $ 3,600,000 $ 3,708,243 $ 108,243

Interest earned - - 32,302 32,302

Total revenues $ 3,600,000 $ 3,600,000 $ 3,740,545 $ 140,545

Excess (deficiency) of revenues over

expenditures $ 3,600,000 $ 3,600,000 $ 3,740,545 $ 140,545

Other financing sources (uses):

Transfers out $ (2,534,130) $ (3,616,729) $ (3,616,729) $ -

Total other financing sources (uses) $ (2,534,130) $ (3,616,729) $ (3,616,729) $ -

Net change in fund balance $ 1,065,870 $ (16,729) $ 123,816 $ 140,545

Fund balance at beginning of year - GAAP basis 2,989,489

Fund balance at end of year - GAAP basis $ 3,113,305

Budgeted Amounts

106

Cobb County, Georgia

Cumberland Special Service District 2 Special Revenue Fund

Schedule of Revenues, Expenditures and

Changes in Fund Balance - Budget and Actual

For the Fiscal Year Ended September 30, 2018

Variance with

Final Budget -

Positive

Original Final Actual (Negative)

Revenues:

Taxes $ 5,150,000 $ 5,150,000 $ 6,528,008 $ 1,378,008

Interest earned - - 41,282 41,282

Total revenues $ 5,150,000 $ 5,150,000 $ 6,569,290 $ 1,419,290

Excess (deficiency) of revenues over

expenditures $ 5,150,000 $ 5,150,000 $ 6,569,290 $ 1,419,290

Other financing sources (uses):

Transfers out (5,150,000) (5,150,000) (5,150,000) -

Total other financing sources (uses) $ (5,150,000) $ (5,150,000) $ (5,150,000) $ -

Net change in fund balance $ - $ - $ 1,419,290 $ 1,419,290

Fund balance at beginning of year - GAAP basis 6,860,180

Fund balance at end of year - GAAP basis $ 8,279,470

Budgeted Amounts

107

Cobb County, Georgia

CMCEHA Special Revenue Fund

Schedule of Revenues, Expenditures and

Changes in Fund Balance - Budget and Actual

For the Fiscal Year Ended September 30, 2018

Variance with

Final Budget -

Positive

Original Final Actual (Negative)

Revenues:

Intergovernmental $ 1,661,575 $ 2,386,575 $ 2,065,762 $ (320,813)

Charges for services 12,029,210 12,304,210 13,043,682 739,472

Interest earned 65,024 65,024 225,715 160,691

Total revenues $ 13,755,809 $ 14,755,809 $ 15,335,159 $ 579,350

Expenditures:

Current:

Personnel services $ 6,174,424 $ 5,694,489 $ 5,674,286 $ 20,203

Operating expenditures 10,362,007 11,116,942 11,099,497 17,445

Contractual expenditures 1,865,926 2,590,926 2,041,592 549,334

Total expenditures $ 18,402,357 $ 19,402,357 $ 18,815,375 $ 586,982

Excess (deficiency) of revenues over

expenditures $ (4,646,548) $ (4,646,548) $ (3,480,216) $ 1,166,332

Other financing sources (uses):

Transfers in $ 9,948,450 $ 9,948,450 $ 10,993,010 $ 1,044,560

Transfers out (7,084,045) (7,084,045) (7,021,628) 62,417

Total other financing sources (uses) $ 2,864,405 $ 2,864,405 $ 3,971,382 $ 1,106,977

Net change in fund balance $ (1,782,143) $ (1,782,143) $ 491,166 $ 2,273,309

Fund balance at beginning of year - GAAP basis 19,350,986

Fund balance at end of year - GAAP basis $ 19,842,152

Budgeted Amounts

108

Cobb County, Georgia

Stadium Capital Maintenance Special Revenue Fund

Schedule of Revenues, Expenditures and

Changes in Fund Balance - Budget and Actual

For the Fiscal Year Ended September 30, 2018

Variance with

Final Budget -

Positive

Original Final Actual (Negative)

Revenues:

Contributions $ 1,230,000 $ 1,230,000 $ 1,230,000 $ -

Interest earned - - 46,333 46,333

Total revenues $ 1,230,000 $ 1,230,000 $ 1,276,333 $ 46,333

Excess (deficiency) of revenues over

expenditures $ 1,230,000 $ 1,230,000 $ 1,276,333 $ 46,333

Other financing sources (uses):

Transfers in $ 1,230,000 $ 1,230,000 $ 1,230,000 $ -

Total other financing sources (uses) $ 1,230,000 $ 1,230,000 $ 1,230,000 $ -

Net change in fund balance $ 2,460,000 $ 2,460,000 $ 2,506,333 $ 46,333

Fund balance at beginning of year - GAAP basis 2,404,088

Fund balance at end of year - GAAP basis $ 4,910,421

Budgeted Amounts

109

Cobb County, Georgia

Nonmajor Business-Type Enterprise Funds

Combining Statement of Net Position

September 30, 2018

Cobblestone

Golf Course

Fund

Assets and Deferred Outflows of Resources

Current assets:

Cash $ 177,791 $ 75,330 $ 277,186 $ 995,677 $ 493,238 $ 2,019,222

Restricted cash and cash equivalents - - - 3,096,461 46,146 3,142,607

Receivables:

Accounts, net - - - 179,978 26,553 206,531

Other 11,197 1,240 86,228 - - 98,665

Due from other funds - 3,500,014 - - - 3,500,014

Due from others - - - 20,861 - 20,861

Due from other governments and agencies - 8,967,701 - - - 8,967,701

Inventories - - - 29,911 - 29,911

Prepaid items - - - 108,000 - 108,000

Total current assets 188,988 12,544,285 363,414 4,430,888 565,937 18,093,512

Noncurrent assets:

Property, plant and equipment:

Capital assets not being depreciated 5,453,615 12,032,278 3,778,386 198,750 1,805,485 23,268,514

Capital assets being depreciated, net 706,305 51,567,892 2,281,745 78,645,794 1,279,161 134,480,897

Net property, plant and equipment 6,159,920 63,600,170 6,060,131 78,844,544 3,084,646 157,749,411

Total noncurrent assets 6,159,920 63,600,170 6,060,131 78,844,544 3,084,646 157,749,411

Total assets 6,348,908 76,144,455 6,423,545 83,275,432 3,650,583 175,842,923

Deferred Outflows of Resources:

Deferred outflows of resources related to OPEB - 36,302 33,560 - - 69,862

Deferred outflows of resources related to pension - 223,357 70,534 - - 293,891

Total deferred outflows of resources - 259,659 104,094 - - 363,753

Total assets and deferred outflows of resources $ 6,348,908 $ 76,404,114 $ 6,527,639 $ 83,275,432 $ 3,650,583 $ 176,206,676

Continued on next page.

Solid Waste

Disposal

Fund

Performing Arts

Centre Fund

Public

Transit System

Fund Totals

Galleria

Specialty Shops

Fund

110

Cobb County, Georgia

Nonmajor Business-Type Enterprise Funds

Combining Statement of Net Position

Cobblestone

Golf Course

Fund

Liabilities and Deferred Inflows of Resources

Liabilities:

Current liabilities (payable from current assets):

Accounts payable $ 64,662 $ 12,221,304 $ 41,381 $ 562,918 $ 12,293 $ 12,902,558

Accrued payroll - 7,968 4,631 593,332 - 605,931

Due to other funds - - - 117,104 20,259 137,363

Due to others 1,684 - - - - 1,684

Customer deposits - - - 2,036,226 46,146 2,082,372

Due to other governments and agencies 11,457 1,000 - - - 12,457

Accrued interest payable - - - 84,528 - 84,528

Unearned revenues 33,068 - - 1,109,651 9,000 1,151,719

Current portion of revenue bonds - - - 555,000 - 555,000

Current portion of compensated absences - 13,958 15,741 60,614 - 90,313

Current portion of closure and post closure care - - 443,303 - - 443,303

Total current liabilities 110,871 12,244,230 505,056 5,119,373 87,698 18,067,228

Long-term liabilities:

Revenue bonds (net of current portion and

bond premium) - - - 5,315,000 - 5,315,000

Compensated absences (net of current portion) - - 31,211 15,153 - 46,364

Closure and postclosure care (net of current portion) - - 22,431,543 - - 22,431,543

Unearned revenue - - - 5,200,000 - 5,200,000

Net OPEB liability - 268,569 248,286 - - 516,855

Net pension liability - 1,201,477 379,414 - - 1,580,891

Advances from other funds 2,981,022 - - - - 2,981,022

Total long-term liabilities 2,981,022 1,470,046 23,090,454 10,530,153 - 38,071,675

Total liabilities 3,091,893 13,714,276 23,595,510 15,649,526 87,698 56,138,903

Deferred inflows of resources

Deferred inflow related to OPEB - 12,814 11,846 - - 24,660

Deferred inflow related to pension - 43,867 13,852 - - 57,719

Total deferred inflows of resources - 56,681 25,698 - - 82,379

Total liabilities and deferred inflows of resources 3,091,893 13,770,957 23,621,208 15,649,526 87,698 56,221,282

Net Position:

Net investment in capital assets 6,159,920 63,581,329 6,060,131 72,974,544 3,084,646 151,860,570

Restricted for:

Debt service - - - 975,707 - 975,707

Unrestricted (2,902,905) (948,172) (23,153,700) (6,324,345) 478,239 (32,850,883)

Total net position $ 3,257,015 $ 62,633,157 $ (17,093,569) $ 67,625,906 $ 3,562,885 $ 119,985,394

Continued from preceding page.

Solid Waste

Totals

September 30, 2018

Public

Transit System

Fund

Disposal

Fund

Specialty Shops

Fund

Galleria

Performing Arts

Centre Fund

111

Cobb County, Georgia

Nonmajor Business-Type Enterprise Funds

Combining Statement of Revenues, Expenses and Changes in Net Position

For the Fiscal Year Ended September 30, 2018

Cobblestone

Golf Course

Fund Totals

Operating revenues:

Charges for services $ 1,687,920 $ 4,198,174 $ 550,942 $ 9,733,543 $ 518,232 $ 16,688,811

Miscellaneous income - 72,231 - - - 72,231

Total operating revenues 1,687,920 4,270,405 550,942 9,733,543 518,232 16,761,042

Operating expenses:

Personnel services - 714,783 313,645 3,076,876 261,816 4,367,120

Other operating expenses 1,661,939 21,364,304 22,974 4,639,033 551,345 28,239,595

Total operating expenses 1,661,939 22,079,087 336,619 7,715,909 813,161 32,606,715

Operating income (loss)

before depreciation 25,981 (17,808,682) 214,323 2,017,634 (294,929) (15,845,673)

Less depreciation (32,548) (4,924,831) (399,773) (2,154,007) (191,089) (7,702,248)

Operating income (loss) (6,567) (22,733,513) (185,450) (136,373) (486,018) (23,547,921)

Nonoperating revenues (expenses):

Interest income 2 30,236 2,731 161 - 33,130

Interest and fiscal charges - - - (171,056) - (171,056)

Gain (loss) on sale of capital assets - 4,440 - - - 4,440

Total nonoperating revenues (expenses) 2 34,676 2,731 (170,895) - (133,486)

Net income (loss) before transfers

and capital contributions (6,565) (22,698,837) (182,719) (307,268) (486,018) (23,681,407)

Capital contributions - 12,008,311 - - - 12,008,311

Transfers:

Transfers in - 14,466,160 572,421 - 500,000 15,538,581

Transfers out (3,361) (647,577) - - - (650,938)

Total transfers (3,361) 13,818,583 572,421 - 500,000 14,887,643

Change in net position (9,926) 3,128,057 389,702 (307,268) 13,982 3,214,547

Total net position - beginning, before restatement 3,266,941 59,748,491 (17,258,261) 67,933,174 3,548,903 117,239,248

Restatement - (243,391) (225,010) - - (468,401)

Total net position - beginning, after restatement 3,266,941 59,505,100 (17,483,271) 67,933,174 3,548,903 116,770,847

Total net position - ending $ 3,257,015 $ 62,633,157 $ (17,093,569) $ 67,625,906 $ 3,562,885 $ 119,985,394

Centre Fund

Public

Transit System

Fund

Galleria

Specialty Shops

Fund

Solid Waste

Disposal

Fund

Performing Arts

112

Nonmajor Business-Type Enterprise Funds

Combining Statement of Cash Flows

For the Fiscal Year Ended September 30, 2018

Cobblestone

Golf Course

Fund Totals

Cash flows from operating activities:

Cash received from customers $ 1,644,426 $ 4,310,482 $ 481,944 $ 9,559,419 $ 519,285 $ 16,515,556

Cash payments for goods and services (1,745,394) (13,606,804) (477,286) (4,544,275) (565,651) (20,939,410)

Cash payments for employee services

and fringe benefits - (719,837) (303,971) (2,833,711) (261,816) (4,119,335)

Net cash from (to) operating activities (100,968) (10,016,159) (299,313) 2,181,433 (308,182) (8,543,189)

Cash flows from noncapital financing activities:

Transfers in - 14,466,160 572,421 - 500,000 15,538,581

Transfers out (3,361) (647,577) - - - (650,938)

Net cash from (to) noncapital

financing activities (3,361) 13,818,583 572,421 - 500,000 14,887,643

Cash flows from capital and

related financing activities:

Proceeds from sale of capital assets - 4,440 - - - 4,440

Payments for capital acquisitions - (10,833,026) - (702,181) (74,726) (11,609,933)

Bond principal payments - - - (535,000) - (535,000)

Capital contributions - 7,062,492 - - - 7,062,492

Interest and fiscal charges - - - (178,760) - (178,760)

Net cash from (to) capital and related

financing activities - (3,766,094) - (1,415,941) (74,726) (5,256,761)

Cash flows from investing activities:

Interest received 2 30,236 2,731 161 - 33,130

Net cash from investing activities 2 30,236 2,731 161 - 33,130

Net increase (decrease) in cash and

cash equivalents (104,327) 66,566 275,839 765,653 117,092 1,120,823

Cash and cash equivalents at beginning of year 282,118 8,764 1,347 3,326,485 422,292 4,041,006

Cash and cash equivalents at end of year $ 177,791 $ 75,330 $ 277,186 $ 4,092,138 $ 539,384 $ 5,161,829

Continued on next page.

Solid Waste

Disposal

Fund

Performing Arts

Centre Fund

Cobb County, Georgia

Public

Transit System

Fund Fund

Specialty Shops

Galleria

113

Cobb County, Georgia

Nonmajor Business-Type Enterprise Funds

Combining Statement of Cash Flows

For the Fiscal Year Ended September 30, 2018

Totals

Reconciliation of operating income (loss)

to net cash from operating activities:

Operating income (loss) $ (6,567) $ (22,733,513) $ (185,450) $ (136,373) $ (486,018) $ (23,547,921)

Adjustments to reconcile operating income

(loss) to net cash from operating activities:

Depreciation 32,548 4,924,831 399,773 2,154,007 191,089 7,702,248

Change in assets and liabilities:

Decrease (increase) in accounts receivables - - - (133,086) 433 (132,653)

Decrease (increase) in other receivables (4,941) 40,077 (68,998) - - (33,862)

Decrease (increase) in due from other funds - (700,014) - - - (700,014)

Decrease (increase) in due from others - - - 6,128 - 6,128

Decrease (increase) in inventories - - - 4,392 - 4,392

Decrease (increase) in deferred outflows related to OPEB - (36,302) (33,560) - - (69,862)

Decrease (increase) in deferred outflows related to pension - (149,359) (48,334) - - (197,693)

Decrease (increase) in prepaid items 3,272 - - (46,950) - (43,678)

Increase (decrease) in accounts payable (49,044) 8,807,461 (11,009) 84,395 (25,505) 8,806,298

Increase (decrease) in accrued payroll - (1,407) (7,469) 258,397 - 249,521

Increase (decrease) in accrued compensated absences - 3,233 2,017 (15,232) - (9,982)

Increase (decrease) in due to other funds - (349,947) - - 11,199 (338,748)

Increase (decrease) in due to others (7,900) - - 46,793 - 38,893

Increase (decrease) in deposits payable - - - 721,196 (4,380) 716,816

Increase (decrease) in due to

other governments (29,783) - - - - (29,783)

Increase (decrease) in closure/post closure care - - (443,303) - - (443,303)

Increase (decrease) in deferred inflows related to OPEB - 12,814 11,846 - - 24,660

Increase (decrease) in deferred inflows related to pension - 13,709 4,805 - - 18,514

Increase (decrease) in unearned revenues (38,553) - - (762,234) 5,000 (795,787)

Increase (decrease) in net OPEB liability - 25,178 23,274 - - 48,452

Increase (decrease) in net pension liability - 127,080 57,095 - - 184,175

Total adjustments (94,401) 12,717,354 (113,863) 2,317,806 177,836 15,004,732

Net cash provided (used) by operating activities $ (100,968) $ (10,016,159) $ (299,313) $ 2,181,433 $ (308,182) $ (8,543,189)

Continued from preceding page.

Disposal

Fund FundFund Fund

Golf Course Transit System Specialty ShopsPerforming Arts

Centre Fund

GalleriaSolid Waste Cobblestone Public

114

Cobb County, Georgia

Trust Funds

Combining Statements of Fiduciary Net Position

September 30, 2018

System

Assets:

Cash and cash equivalents $ 228,569 $ - $ 228,569

Investments, at fair value

Common stock 201,577,112 32,613,384 234,190,496

Mutual funds 386,220,489 76,618,014 462,838,503

Corporate Bonds 53,680,078 14,598,625 68,278,703

Government and agency bonds 18,399,681 - 18,399,681

Money market 11,847,029 2,105,330 13,952,359

Receivables

Accrued interest 834,149 75,584 909,733

Total assets 672,787,107 126,010,937 798,798,044

Net position restricted for:

Pension benefits 672,787,107 - 672,787,107

Other post employment benefits - 126,010,937 126,010,937

Total net position $ 672,787,107 $ 126,010,937 $ 798,798,044

TotalBenefits

Pension Trust Fund

Employee

Retirement

OPEB Trust Fund

Other Post

Employment

115

System

Additions

Contributions:

Employer $ 47,521,805 $ 19,574,024 $ 67,095,829

Employee 13,941,429 - 13,941,429

Total contributions 61,463,234 19,574,024 81,037,258

Investment earnings:

Net appreciation (depreciation) in fair value of assets 46,507,933 6,783,588 53,291,521

Interest 11,306,883 2,829,468 14,136,351

Total investment earnings 57,814,816 9,613,056 67,427,872

Less investment expense (1,445,125) (327,223) (1,772,348)

Net investment earnings 56,369,691 9,285,833 65,655,524

Miscellaneous revenue 22,161 - 22,161

Total additions 117,855,086 28,859,857 146,714,943

Deductions

Administrative expenses 374,074 - 374,074

Benefits and claims 67,874,292 15,574,024 83,448,316

Total deductions 68,248,366 15,574,024 83,822,390

Change in net position 49,606,720 13,285,833 62,892,553

Net position

Beginning of year 623,180,387 112,725,104 735,905,491

End of year $ 672,787,107 $ 126,010,937 $ 798,798,044

Retirement

Total

Cobb County, Georgia

Trust Funds

Combining Statements of Changes in Fiduciary Net Position

For the Fiscal Year Ended September 30, 2018

OPEB Trust Fund

Benefits

Other Post

Employment

Pension Trust Fund

Employee

116

Cobb County, Georgia

Agency Funds

Combining Statement of Changes in Assets and Liabilities

For the Fiscal Year Ended September 30, 2018

Balance

October 1, 2017 Additions Deductions

Clerk of State Court

Assets

Cash and cash equivalents $ 6,067,964 $ 24,505,452 $ 25,351,123 $ 5,222,293

Liabilities

Funds held in trust for others $ 6,067,964 $ 24,505,452 $ 25,351,123 $ 5,222,293

Clerk of Juvenile Court

Assets

Cash $ 2,069 $ 10,400 $ 9,268 $ 3,201

Liabilities

Funds held in trust for others $ 2,069 $ 10,400 $ 9,268 $ 3,201

Sheriff

Assets

Cash and cash equivalents $ 10,699,920 $ 15,207,219 $ 14,775,548 $ 11,131,591

Liabilities

Funds held in trust for others $ 10,699,920 $ 15,207,219 $ 14,775,548 $ 11,131,591

Clerk of Superior Court

Assets

Cash and cash equivalents $ 30,277,745 $ 88,037,492 $ 103,349,787 $ 14,965,450

Liabilities

Funds held in trust for others $ 30,277,745 $ 88,037,492 $ 103,349,787 $ 14,965,450

Clerk of Probate Court

Assets

Cash $ - $ 1,922,563 $ 1,922,563 $ -

Liabilities

Due to other funds $ - $ 1,922,563 $ 1,922,563 $ -

Tax Commissioner

Assets

Cash $ 76,321,499 $ 1,075,745,967 $ 1,107,378,111 $ 44,689,355

Taxes and penalties receivable 546,943,315 844,508,173 757,959,465 633,492,023

$ 623,264,814 $ 1,920,254,140 $ 1,865,337,576 $ 678,181,378

Liabilities

Unremitted tax collections $ 76,321,499 $ 1,075,745,967 $ 1,107,378,111 $ 44,689,355

Taxes payable to others upon collection 546,943,315 844,508,173 757,959,465 633,492,023

$ 623,264,814 $ 1,920,254,140 $ 1,865,337,576 $ 678,181,378

Continued on next page.

September 30, 2018

Balance

117

Cobb County, Georgia

Agency Funds

Combining Statement of Changes in Assets and Liabilities

For the Fiscal Year Ended September 30, 2018

Balance

October 1, 2017 Additions Deductions

Accounts Payable Fund

Assets

Cash and cash equivalents $ - $ 42,619,319 $ 42,619,319 $ -

Liabilities

Funds held in trust for others $ - $ 42,619,319 $ 42,619,319 $ -

Payroll Fund

Assets

Cash and cash equivalents $ 5,447,726 $ 315,356,327 $ 314,494,362 $ 6,309,691

Liabilities

Unremitted payroll tax and withholdings $ 5,447,726 $ 315,356,327 $ 314,494,362 $ 6,309,691

Child Support, Witness and Jurors' Fees

Assets

Cash $ 17,411 $ 2,426,849 $ 2,432,720 $ 11,540

.

Liabilities

Funds held in trust for others $ 17,411 $ 2,426,849 $ 2,432,720 $ 11,540

Total assets $ 675,777,649 $ 2,410,339,761 $ 2,370,292,266 $ 715,825,144

Total liabilities $ 675,777,649 $ 2,410,339,761 $ 2,370,292,266 $ 715,825,144

Continued from preceding page.

September 30, 2018

Balance

118

COMPREHENSIVE ANNUAL FINANCIAL REPORT Return to Table of Contents

Cobb County Finance Department, 100 Cherokee Street, Marietta, Georgia 30090

SUPPLEMENTAL INFORMATION

Cobb County, Georgia

General Fund

Schedule of Revenues, Expenditures and

Changes in Fund Balance - Budget and Actual (Budgetary Basis)

For the Fiscal Year Ended September 30, 2018

Variance with

Final Budget -

Positive

Original Final Actual (Negative)

Revenues:

Taxes $ 265,987,119 $ 268,487,119 $ 330,242,874 $ 61,755,755

Licenses and permits 25,330,040 25,361,091 28,512,052 3,150,961

Intergovernmental 3,144,000 3,533,414 3,495,832 (37,582)

Charges for services 45,006,736 45,991,698 48,787,501 2,795,803

Fines and forfeits 7,377,000 9,565,616 9,731,182 165,566

Interest earned 281,551 281,551 1,174,418 892,867

Miscellaneous 3,822,100 2,488,118 6,559,736 4,071,618

Total revenues $ 350,948,546 $ 355,708,607 $ 428,503,595 $ 72,794,988

Expenditures:

Current

General government:

Legislative:

Board of Commissioners

Personnel services $ 980,982 $ 1,022,140 $ 1,022,142 $ (2)

Operating expenditures 51,350 51,560 51,495 65

1,032,332 1,073,700 1,073,637 63

Other Governmental

Operating expenditures 1,474,466 1,762,341 1,696,140 66,201

Non-Profit

Operating expenditures - 921,197 867,293 53,904

- 921,197 867,293 53,904

Total legislative 2,506,798 3,757,238 3,637,070 120,168

Judicial:

Clerk of State Court

Personnel services 5,039,659 4,804,659 -- 4,804,241 418

Operating expenditures 86,511 164,486 140,206 24,280

5,126,170 4,969,145 4,944,447 24,698

Clerk of Superior Court

Personnel services 6,763,681 6,763,681 6,587,229 176,452

Operating expenditures 234,116 314,250 312,205 2,045

Capital outlay - 22,849 - 22,849

6,997,797 7,100,780 6,899,434 201,346

District Attorney

Personnel services 7,200,551 7,719,892 7,719,893 (1)

Operating expenditures 406,410 832,776 834,053 -(1,277)

7,606,961 8,552,668 8,553,946 (1,278)

Chief Magistrate

Personnel services 4,098,870 4,217,591 4,217,593 (2)

Operating expenditures 87,739 112,529 116,060 (3,531)

4,186,609 4,330,120 4,333,653 (3,533)

Continued on next page.

Budgeted Amounts

119

Cobb County, Georgia

General Fund

Schedule of Revenues, Expenditures and

Changes in Fund Balance - Budget and Actual (Budgetary Basis)

For the Fiscal Year Ended September 30, 2018

Variance with

Final Budget -

Positive

Original Final Actual (Negative)

Budgeted Amounts

Juvenile Court

Personnel services 5,526,963 5,386,063 5,386,050 13

Operating expenditures 160,447 209,815 137,227 72,588

5,687,410 5,595,878 5,523,277 72,601

Probate Court

Personnel services 1,561,805 1,555,816 1,466,395 89,421

Operating expenditures 176,452 185,577 185,577 -

Capital outlay - 147,000 173,017 (26,017)

1,738,257 1,888,393 1,824,989 63,404

Solicitor

Personnel services 5,741,599 7,990,765 7,990,767 (2)

Operating expenditures 41,630 79,886 81,291 (1,405)

5,783,229 8,070,651 8,072,058 (1,407)

State Court

Personnel services 7,133,241 7,052,312 7,050,980 1,332

Operating expenditures 503,425 793,848 795,969 (2,121)

7,636,666 7,846,160 7,846,949 (789)

Superior Court

Personnel services 6,117,244 6,358,924 6,358,926 (2)

Operating expenditures 1,014,408 1,297,481 1,304,294 (6,813)

Capital outlay - - - -

7,131,652 7,656,405 7,663,220 (6,815)

Circuit Defender

Personnel services 875,193 875,193 871,340 3,853

Operating expenditures 4,580,625 5,401,738 5,402,539 (801)

5,455,818 6,276,931 6,273,879 3,052

Total judicial 57,350,569 62,287,131 61,935,852 351,279

Executive and administrative:

County Manager

Personnel services 684,325 821,834 821,835 (1)

Operating expenditures 38,680 46,789 46,788 1

723,005 868,623 868,623 -

Continued on next page.

120

Cobb County, Georgia

General Fund

Schedule of Revenues, Expenditures and

Changes in Fund Balance - Budget and Actual (Budgetary Basis)

For the Fiscal Year Ended September 30, 2018

Variance with

Final Budget -

Positive

Original Final Actual (Negative)

Budgeted Amounts

General Administrative

Personnel services 23,000 - - -

Operating expenditures 9,261,177 9,159,124 9,259,727 (100,603)

Capital outlay - 1,998 147,449 (145,451)

9,284,177 9,161,122 9,407,176 (246,054)

Information Services

Personnel services 11,659,396 11,794,823 -11,794,253 570

Operating expenditures 6,943,920 7,937,595 -8,222,913 (285,318)

Capital outlay - 189,615 -322,811 (133,196)

18,603,316 19,922,033 20,339,977 (417,944)

Drug Treatment

Personnel services 209,694 220,810 220,813 (3)

Operating expenditures 228,300 123,684 57,314 66,370

437,994 344,494 278,127 66,367

Finance

Personnel services 3,072,645 2,879,105 2,879,100 5

Operating expenditures 252,550 178,135 177,914 221

3,325,195 3,057,240 3,057,014 226

Purchasing

Personnel services 2,591,148 2,388,620 2,388,620 -

Operating expenditures 1,764,795 2,274,916 2,276,183 (1,267)

Capital outlay - 1,033,461 1,060,461 (27,000)

4,355,943 5,696,997 5,725,264 (28,267)

Fleet

Personnel services -871,072 -905,428 -905,428 - -

Operating expenditures - 28,935 - 33,732 - 33,733 - (1)

900,007 939,160 939,161 (1)

Tax Assessor

Personnel services -4,201,871 -4,078,506 -4,078,475 - 31

Operating expenditures -2,131,478 -2,131,597 -2,049,543 - 82,054

6,333,349 6,210,103 6,128,018 82,085

Internal Audit

Personnel services 432,509 432,509 425,403 7,106

Operating expenditures 5,986 6,367 5,898 469

438,495 438,876 431,301 7,575

Human Resources

Personnel services 2,361,520 2,393,098 2,393,097 1

Operating expenditures 596,302 587,243 457,224 130,019

2,957,822 2,980,341 2,850,321 130,020

Ethics Board

Operating expenditures 2,130 2,130 - 2,130

2,130 2,130 - 2,130

Property Management

Personnel services 5,268,043 5,333,852 -5,333,852 -

Operating expenditures 5,359,909 5,250,222 -5,439,590 (189,368)

Capital outlay - 206,717 -206,717 -

10,627,952 10,790,791 -10,980,159 (189,368)

Continued on next page.

121

Cobb County, Georgia

General Fund

Schedule of Revenues, Expenditures and

Changes in Fund Balance - Budget and Actual (Budgetary Basis)

For the Fiscal Year Ended September 30, 2018

Variance with

Final Budget -

Positive

Original Final Actual (Negative)

Budgeted Amounts

Tax Commissioner

Personnel services 6,789,501 6,340,655 6,340,656 (1)

Operating expenditures 604,101 510,950 511,924 (974)

Capital outlay - - - -

7,393,602 6,851,605 6,852,580 (975)

Public Services

Personnel services 651,877 558,476 499,913 58,563

Operating expenditures 22,423 21,368 12,004 9,364

674,300 579,844 511,917 67,927

Communications

Personnel services 1,112,301 948,306 948,307 (1)

Operating expenditures 125,584 139,657 131,305 8,352

Capital outlay - 132,149 125,360 6,789

1,237,885 1,220,112 1,204,972 15,140

Support Services

Personnel services 303,188 303,188 292,348 10,840

Operating Services 9,600 9,600 8,722 878

312,788 312,788 301,070 11,718

Elections & Registration

Personnel services 2,564,121 2,680,843 2,680,844 (1)

Operating expenditures 619,179 733,140 736,996 (3,856)

3,183,300 3,413,983 3,417,840 (3,857)

County Clerk

Personnel services 389,668 389,668 384,964 4,704

Operating expenditures 40,520 40,520 24,791 15,729

430,188 430,188 409,755 20,433

Law Department

Personnel services 2,182,455 2,154,998 2,154,996 2

Operating expenditures 509,702 448,580 437,184 11,396

2,692,157 2,603,578 2,592,180 11,398

Central Warehouse

Operating expenditures - 727 727 -

Total executive and administrative 73,913,605 75,824,735 76,296,182 (471,447)

Total general government 133,770,972 141,869,104 141,869,104 -

Public Safety:

P S Training Center

Personnel services 315,140 299,540 299,540 -

Operating expenditures 470,278 145,321 145,317 4

Capital outlay - 228,813 228,813 -

785,418 673,674 673,670 4

Police Department

Personnel services 64,083,433 67,210,226 67,210,224 2

Operating expenditures 3,931,954 6,405,319 6,405,319 -

Capital outlay - 2,393,649 2,393,649 -

68,015,387 76,009,194 76,009,192 2

Continued on next page.

122

Cobb County, Georgia

General Fund

Schedule of Revenues, Expenditures and

Changes in Fund Balance - Budget and Actual (Budgetary Basis)

For the Fiscal Year Ended September 30, 2018

Variance with

Final Budget -

Positive

Original Final Actual (Negative)

Budgeted Amounts

Countywide-800MHZ

Personnel services 399,443 386,908 386,906 2

Operating expenditures 1,435,549 1,375,527 1,375,527 -

Capital outlay - 14,190 14,190 -

1,834,992 1,776,625 1,776,623 2

Animal Control

Personnel services 2,916,918 2,822,529 2,822,529 -

Operating expenditures 536,880 493,313 493,313 -

Capital outlay - 72,637 72,637 -

3,453,798 3,388,479 3,388,479 -

Public Safety

Personnel services 193,504 141,085 141,084 1

Operating expenditures 92,570 99,135 99,135 -

Capital outlay - 7,450 7,450 -

286,074 247,670 247,669 1

Emergency Management

Personnel services 148,122 - - -

Operating expenditures 54,200 53,632 53,632 -

202,322 53,632 53,632 -

Safety Village

Personnel services 123,182 124,076 124,075 1

Operating expenditures 152,592 185,917 185,917 -

Capital outlay - 7,375 7,375 - -

275,774 317,368 317,367 1

Sheriff

Personnel services 23,418,690 24,421,065 24,421,063 2

Operating expenditures 1,599,582 1,850,651 1,969,888 (119,237)

Capital outlay - 107,758 146,196 -(38,438)

25,018,272 26,379,474 26,537,147 (157,673)

Corrections

Personnel services 34,854,632 37,050,673 37,050,672 1

Operating expenditures 15,244,047 17,190,595 17,071,357 119,238

Capital outlay 416,923 1,189,983 1,151,545 38,438

50,515,602 55,431,251 55,273,574 157,677

Medical Examiner

Personnel services 1,303,941 1,702,057 1,702,057 -

Operating expenditures 143,734 229,295 229,295 -

Capital outlay - 13,418 13,418 -

1,447,675 1,944,770 1,944,770 -

Total public safety 151,835,314 166,222,137 166,222,123 14

Public Works:

Department of Transportation

Personnel services 13,347,287 12,733,013 12,733,013 -

Operating expenditures 3,980,193 4,224,010 4,224,010 -

Capital outlay - 510,144 510,144 -

17,327,480 17,467,167 17,467,167 -

Total public works 17,327,480 17,467,167 17,467,167 -

Continued on next page.

123

Cobb County, Georgia

General Fund

Schedule of Revenues, Expenditures and

Changes in Fund Balance - Budget and Actual (Budgetary Basis)

For the Fiscal Year Ended September 30, 2018

Variance with

Final Budget -

Positive

Original Final Actual (Negative)

Budgeted Amounts

Housing and Development

Culture and Recreation

Extension Service

Personnel services 582,403 617,545 617,548 (3)

Operating expenditures 27,749 32,199 32,199 -

Capital outlay - 31,901 31,901 -

610,152 681,645 681,648 (3)

Library

Personnel services 9,473,184 9,796,840 9,796,835 5

Operating expenditures 2,824,546 3,026,831 3,028,516 (1,685)

Capital outlay - 194,757 194,757 -

12,297,730 13,018,428 13,020,108 (1,680)

Parks and Recreation

Personnel services 14,922,427 15,564,704 15,564,703 1

Operating expenditures 6,017,367 6,933,416 6,244,943 688,473

Capital outlay - 993,535 934,592 58,943

20,939,794 23,491,655 22,744,238 747,417

Total culture and recreation 33,847,676 37,191,728 36,445,994 745,734

Health and welfare:

Senior Services

Personnel services 2,690,785 2,612,859 2,610,248 2,611

Operating expenditures 478,027 742,099 744,710 (2,611)

Capital outlay - 53,604 53,604 -

3,168,812 3,408,562 3,408,562 -

Cobb County Board of Health

Operating expenditures 978,560 978,560 978,560 -

Total health and welfare 4,147,372 4,387,122 4,387,122 -

Community Development

Personnel services 9,101,232 9,152,492 9,152,495 (3)

Operating expenditures 425,759 615,870 615,866 4

9,526,991 9,768,362 9,768,361 1

Total housing and development 9,526,991 9,768,362 9,768,361 1

Total current $ 350,455,805 $ 376,905,620 $ 376,159,871 $ 745,749

Debt service:

Principal retirement $ 30,888 $ 30,888 $ - $ 30,888

Interest and fiscal charges 100,000 435,480 435,480 -

Total debt service $ 130,888 $ 466,368 $ 435,480 $ 30,888

Total expenditures $ 350,586,693 $ 377,371,988 $ 376,595,351 $ 776,637

Excess (deficiency) of revenues over

expenditures $ 361,853 $ (21,663,381) $ 51,908,244 $ 73,571,625

Continued on next page

124

Cobb County, Georgia

General Fund

Schedule of Revenues, Expenditures and

Changes in Fund Balance - Budget and Actual (Budgetary Basis)

For the Fiscal Year Ended September 30, 2018

Variance with

Final Budget -

Positive

Original Final Actual (Negative)

Budgeted Amounts

Other financing sources (uses):

Transfers in $ 32,821,990 $ 34,776,521 $ 32,502,226 $ (2,274,295)

Proceeds from sale of capital assets - - 225,946 225,946

Transfers out (47,514,761) (50,924,890) (50,798,214) 126,676

Total other financing sources (uses) $ (14,692,771) $ (16,148,369) $ (18,070,042) $ (1,921,673)

Net change in fund balance $ (14,330,918) $ (37,811,750) $ 33,838,202 $ 71,649,952

Fund balance at beginning of year 90,145,537

Fund balance at end of year - budgetary basis 123,983,739

Reconciliation to GAAP basis:

Elimination of encumbrances outstanding at

end of year 6,132,031

Fund balance at end of year - GAAP basis $ 130,115,770

125

COMPREHENSIVE ANNUAL FINANCIAL REPORT Return to Table of Contents

Cobb County Finance Department, 100 Cherokee Street, Marietta, Georgia 30090

STATISTICAL SECTION

The Statistical Section includes selected financial and general information presented on a multi-year comparative basis. The statistics are used to provide detailed date on the physical, economic, social and political characteristics of the County government. They are intended to provide financial report users with a broader and more complete understanding of the government and its financial affairs than is possible from basic financial statements.

COBB COUNTY, GEORGIA STATISTICAL SECTION

September 30, 2018

This part of the County’s Comprehensive Annual Financial Report presents detailed information as a context for understanding the financial statements, note disclosures, required supplementary information as well as the overall financial position of the County.

Financial Trends These schedules contain trend information to help the user understand how the County’s financial performance has changed over time.

Revenue Capacity These schedules contain information to help the user assess the County’s major revenue sources.

Debt Capacity These schedules present information to help the user assess the affordability of the County’s current level of outstanding debt and the County’s ability to issue additional debt in the future.

Demographic and Economic Information These schedules present demographic and economic indicators to help the user understand the environment within which the County’s financial activities take place.

Operating Information These schedules contain staffing, key operating and capital statistics comparisons to help the user understand how the information in the County’s financial report relates to the services the County provides and the activities it performs.

126

(2) (1)

Governmental activities

Net investment in capital asset $ 3,597,754,891 $ 3,517,507,657 $ 3,318,300,453 $ 3,165,004,359 $ 3,082,678,386

Restricted 274,860,968 271,896,684 261,643,812 296,312,716 220,536,169

Unrestricted (570,332,326) (585,268,577) (305,236,161) (315,844,409) 96,461,368

Total governmental activities net position $ 3,302,283,533 $ 3,204,135,764 $ 3,274,708,104 $ 3,145,472,666 $ 3,399,675,923

Business-type activities

Net investment in capital asset $ 1,460,332,315 $ 1,442,879,862 $ 1,420,350,770 $ 1,382,534,953 $ 1,270,930,346

Restricted 44,410,711 48,915,925 34,265,586 26,807,385 65,285,176

Unrestricted (60,403,279) (53,670,646) (7,665,683) (3,023,209) 10,420,926

Total business-type activities net position $ 1,444,339,747 $ 1,438,125,141 $ 1,446,950,673 $ 1,406,319,129 $ 1,346,636,448

Primary government

Net investment in capital asset $ 5,058,087,206 $ 4,960,387,519 $ 4,738,651,223 $ 4,547,539,312 $ 4,353,608,732

Restricted 319,271,679 320,812,609 295,909,398 323,120,101 285,821,345

Unrestricted (630,735,605) (638,939,223) (312,901,844) (318,867,618) 106,882,294

Total primary government net position $ 4,746,623,280 $ 4,642,260,905 $ 4,721,658,777 $ 4,551,791,795 $ 4,746,312,371

Governmental activities

Net investment in capital asset $ 3,028,553,894 $ 2,993,197,551 $ 2,964,844,393 $ 2,937,351,872 $ 2,845,141,332

Restricted 216,347,412 190,983,262 148,602,863 85,902,876 107,900,772

Unrestricted 74,356,405 52,489,843 30,201,143 30,533,812 56,626,064

Total governmental activities net position $ 3,319,257,711 $ 3,236,670,656 $ 3,143,648,399 $ 3,053,788,560 $ 3,009,668,168

Business-type activities

Net investment in capital asset $ 1,247,891,037 $ 1,234,745,764 $ 1,216,295,546 $ 1,213,125,239 $ 1,214,901,904

Restricted 71,253,900 68,412,045 57,377,091 41,766,430 -

Unrestricted 6,776,248 5,742,409 1,243,157 (8,524,185) 18,017,954

Total business-type activities net position $ 1,325,921,185 $ 1,308,900,218 $ 1,274,915,794 $ 1,246,367,484 $ 1,232,919,858

Primary government

Net investment in capital asset $ 4,276,444,931 $ 4,227,943,315 $ 4,181,139,939 $ 4,150,477,111 $ 4,060,043,236

Restricted 287,601,312 259,395,307 205,979,954 127,669,306 107,900,772

Unrestricted 81,132,653 58,232,252 31,444,300 22,009,627 74,644,018

Total primary government net position $ 4,645,178,896 $ 4,545,570,874 $ 4,418,564,193 $ 4,300,156,044 $ 4,242,588,026

Source: Basic Financial Statements

(1) The effect of the restatement to 2014's categories of net position have not been determined.

(2) As restated.

Cobb County, Georgia

Net Position by Component

Unaudited

2011 2010 2009

2018 2015 20142016

2013

2017

2012

127

(1) (1)

Expenses

Governmental activities:

General government $ 165,424,633 $ 154,788,215 $ 152,978,160 $ 138,660,902 $ 132,717,871 $ 130,306,036 $ 128,569,788 $ 124,434,470 $ 135,559,677 $ 130,964,498

Public safety 289,469,163 273,691,096 260,257,459 235,115,102 226,274,548 216,746,332 214,304,007 208,553,530 226,008,723 218,818,569

Public works 143,129,556 140,071,410 129,004,776 131,167,118 122,421,838 116,643,350 114,304,649 110,401,097 112,031,838 110,796,058

Health and welfare 7,903,359 7,708,828 6,717,051 6,519,036 6,472,100 5,860,760 4,959,244 6,152,176 8,288,145 6,389,272

Culture and recreation 78,642,971 65,875,330 54,545,427 48,839,786 43,385,617 41,135,156 38,769,474 38,136,019 43,049,762 42,245,820

Housing and development 17,411,304 16,763,846 16,113,070 18,376,639 18,093,093 17,753,689 16,821,511 20,739,086 20,588,418 14,458,129

Interest on long-term debt 20,721,554 20,720,935 20,911,456 15,275,354 3,636,376 4,083,434 4,661,298 4,875,524 5,228,323 5,781,065

Total governmental activities expenses $ 722,702,540 $ 679,619,660 $ 640,527,399 $ 593,953,937 $ 553,001,443 $ 532,528,757 $ 522,389,971 $ 513,291,902 $ 550,754,886 $ 529,453,411

Business-type activities:

Water and Sewer $ 195,603,970 $ 190,668,592 $ 182,120,179 $ 173,041,157 $ 170,145,946 $ 162,598,501 $ 161,143,254 $ 160,087,751 $ 163,448,806 $ 156,686,447

Solid Waste 736,392 773,708 710,965 737,827 877,279 899,358 1,268,190 1,042,053 2,079,765 10,793,537

Transit 27,003,918 27,369,365 22,531,352 22,965,800 22,845,555 22,708,672 22,105,963 23,823,838 24,765,622 22,227,266

Cobblestone Golf Course 1,694,487 1,718,217 1,623,370 1,449,393 1,560,622 1,595,990 1,702,007 1,628,098 1,537,850 1,673,843

Galleria Speciality Shops 1,004,250 930,856 883,963 963,200 - - - - - -

Performing Arts Centre 10,040,972 10,396,336 9,727,913 9,516,067 - - - - - -

Total business-type activities expenses $ 236,083,989 $ 231,857,074 $ 217,597,742 $ 208,673,444 $ 195,429,402 $ 187,802,521 $ 186,219,414 $ 186,581,740 $ 191,832,043 $ 191,381,093

Total primary government expenses $ 958,786,529 $ 911,476,734 $ 858,125,141 $ 802,627,381 $ 748,430,845 $ 720,331,278 $ 708,609,385 $ 699,873,642 $ 742,586,929 $ 720,834,504

Program Revenues

Governmental activities:

Charges for services:

General government $ 49,639,193 $ 45,993,578 $ 44,005,094 $ 42,541,928 $ 40,623,239 $ 44,282,012 $ 44,083,506 $ 41,456,332 $ 48,147,632 $ 50,767,215

Public safety 20,618,775 19,922,346 18,747,884 18,169,500 18,253,052 17,729,347 15,782,214 15,369,970 15,237,639 15,131,886

Public works 7,012,300 7,526,362 7,705,165 6,943,989 5,890,118 5,592,147 5,686,233 5,226,015 5,168,770 5,282,949

Health and welfare 403,046 390,928 328,014 304,448 173,728 159,797 125,741 108,067 80,686 82,003

Culture and recreation 21,964,132 20,022,834 20,040,564 17,193,210 3,493,384 3,803,850 3,730,765 3,443,827 3,792,402 4,163,871

Housing and development 28,151,082 27,645,173 28,061,414 27,059,593 22,866,032 21,680,727 20,462,563 20,184,412 16,456,025 16,755,918

Operating grants and contributions 21,934,660 25,965,261 19,455,937 22,416,730 20,517,861 24,035,310 30,918,003 36,156,256 33,068,410 17,745,892

Capital grants and contributions 49,707,069 172,987,488 119,580,091 41,017,800 21,479,625 25,934,892 33,672,286 24,297,732 41,288,426 61,489,833

Total governmental activities program revenues $ 199,430,257 $ 320,453,970 $ 257,924,163 $ 175,647,198 $ 133,297,039 $ 143,218,082 $ 154,461,311 $ 146,242,611 $ 163,239,990 $ 171,419,567

Business-type activities:

Charges for services:

Water and Sewer $ 200,754,371 $ 202,800,418 $ 206,248,856 $ 199,209,759 $ 193,284,442 $ 187,171,300 $ 199,908,029 $ 196,795,218 $ 183,146,980 $ 170,690,750

Solid Waste 550,942 495,220 491,337 466,443 340,960 281,315 319,350 297,272 181,662 5,578,983

Transit 4,198,174 4,479,084 4,839,740 5,677,360 5,817,403 6,050,804 6,334,856 6,061,173 4,997,340 5,347,538

Cobblestone Golf Course 1,687,920 1,705,705 1,702,848 1,638,146 1,627,680 1,825,184 1,940,550 1,790,455 1,027,897 1,710,920

Galleria Speciality Shops 518,232 504,810 522,800 517,767 - - - - - -

Performing Arts Centre 9,733,543 9,742,996 8,930,062 7,950,970 - - - - - -

Operating grants and contributions - - 3,443,307 - - - - - - 638,096

Capital grants and contributions 30,000,062 31,879,589 34,058,991 17,684,800 16,786,496 19,821,770 18,250,239 15,225,107 21,178,823 10,517,614

Total business-type activities program revenues $ 247,443,244 $ 251,607,822 $ 260,237,941 $ 233,145,245 $ 217,856,981 $ 215,150,373 $ 226,753,024 $ 220,169,225 $ 210,532,702 $ 194,483,901

Total primary government program revenues $ 446,873,501 $ 572,061,792 $ 518,162,104 $ 408,792,443 $ 351,154,020 $ 358,368,455 $ 381,214,335 $ 366,411,836 $ 373,772,692 $ 365,903,468

Net (Expense)/Revenue

Governmental activities $ (523,272,283) $ (359,165,690) $ (382,603,236) $ (418,306,739) $ (419,704,404) $ (389,310,675) $ (367,928,660) $ (367,049,291) $ (387,514,896) $ (358,033,844)

Business-type activities 11,359,255 19,750,748 42,640,199 24,471,801 22,427,579 27,347,852 40,533,610 33,587,485 18,700,659 3,102,808

Total primary government net (expense)/revenue $ (511,913,028) $ (339,414,942) $ (339,963,037) $ (393,834,938) $ (397,276,825) $ (361,962,823) $ (327,395,050) $ (333,461,806) $ (368,814,237) $ (354,931,036)

Continued on next page

20092016

Cobb County, Georgia

Changes in Net Position

Unaudited

2012 2011201320172018 2014 20102015

128

(1) (1)

General Revenues and Other Changes in Net Position

Governmental activities:

Property taxes $ 385,637,151 $ 313,253,222 $ 296,940,107 $ 301,401,010 $ 292,056,548 $ 271,694,680 $ 266,092,328 $ 266,292,261 $ 242,217,484 $ 258,642,957

Sales taxes 148,725,522 144,258,267 138,778,010 137,535,405 133,078,439 128,892,927 130,658,337 126,853,951 121,143,588 113,364,227

Insurance and premium tax 30,414,232 28,405,029 26,709,770 24,942,877 23,663,963 22,768,278 21,312,299 21,696,998 22,308,881 22,633,407

Alcoholic beverage tax 5,293,897 5,184,685 5,037,511 4,921,908 4,822,275 4,735,183 4,611,903 4,724,926 4,766,808 4,743,585

Hotel/Motel tax 16,861,644 15,006,067 13,918,458 13,245,458 12,330,071 11,244,163 10,366,262 9,887,246 9,450,045 9,327,241

Real estate transfer tax 2,587,475 2,278,947 2,372,019 2,102,271 1,864,910 1,372,033 964,058 818,501 735,743 805,210

Miscellaneous taxes 12,667,600 12,606,639 12,739,469 13,060,651 12,971,101 13,110,068 11,736,588 11,257,991 11,846,938 10,946,137

Miscellaneous 9,641,936 9,035,754 10,548,514 13,818,104 12,232,740 10,517,034 7,274,977 8,430,128 9,375,895 10,034,725

Grant and contributions not

restricted to specific programs - - - - - - - - - -

Gain on sale of capital assets - 244,689 - - 441,383 154,803 11,123 - 967,324 43,858

Unrestricted investment earnings 2,712,820 1,371,776 1,968,001 2,281,808 823,219 1,072,135 1,045,701 1,296,604 2,219,575 5,550,704

Special item-Adjustment to

intergovernmental agreement - - - - 3,555,000 - - - - -

Transfers 6,877,775 5,321,598 2,826,815 2,706,577 2,282,967 6,539,853 6,877,341 5,650,524 6,603,007 (1,084,273)

Total governmental activities $ 621,420,052 $ 536,966,673 $ 511,838,674 $ 516,016,069 $ 500,122,616 $ 472,101,157 $ 460,950,917 $ 456,909,130 $ 431,635,288 $ 435,007,778

Business-type activities:

Miscellaneous $ 910,919 $ 851,496 $ 464,088 $ 234,810 $ 435,300 $ 228,151 $ 193,332 $ 399,651 $ 615,141 $ 721,233

Gain on sale of capital assets 144,836 57,998 160,667 30,329 59,484 64,731 34,395 90,422 375,196 (1,060,661)

Unrestricted investment earnings 677,371 363,356 193,405 91,442 75,867 110,224 100,428 121,276 359,637 492,335

Transfers (6,877,775) (5,321,598) (2,826,815) (2,706,577) (2,282,967) (6,539,853) (6,877,341) (5,650,524) (6,603,007) 1,084,273

Total business-type activities $ (5,144,649) $ (4,048,748) $ (2,008,655) $ (2,349,996) $ (1,712,316) $ (6,136,747) $ (6,549,186) $ (5,039,175) $ (5,253,033) $ 1,237,180

Total primary government $ 616,275,403 $ 532,917,925 $ 509,830,019 $ 513,666,073 $ 498,410,300 $ 465,964,410 $ 454,401,731 $ 451,869,955 $ 426,382,255 $ 436,244,958

Change in Net Position

Governmental activities $ 98,147,769 $ 177,800,983 $ 129,235,438 $ 97,709,330 $ 80,418,212 $ 82,790,482 $ 93,022,257 $ 89,859,839 $ 44,120,392 $ 76,973,934

Business-type activities 6,214,606 15,702,000 40,631,544 22,121,805 20,715,263 21,211,105 33,984,424 28,548,310 13,447,626 4,339,988

Total primary government $ 104,362,375 $ 193,502,983 $ 169,866,982 $ 119,831,135 $ 101,133,475 $ 104,001,587 $ 127,006,681 $ 118,408,149 $ 57,568,018 $ 81,313,922

Continued from proceeding page

(1) Fiscal years 2014 and 2017 were restated. The effects of the restatement to previously reported changes in net position has not been determined.

2016

Unaudited

Changes in Net Position

2013 2011 20092010

Cobb County, Georgia

201220172018 2015 2014

129

(1)

General Fund

Nonspendable $ 4,401,141 $ 4,165,751 $ 4,957,432 $ 4,803,886 $ 5,175,239 $ 5,057,876 $ 5,388,509 $ 3,866,278 $ 3,377,881

Restricted 1,932,522 2,285,032 2,232,590 2,161,863 1,630,134 1,652,111 2,003,534 2,142,090 1,909,472

Committed 13,199,856 10,966,156 40,196,292 19,819,502 26,228,765 24,679,900 26,838,346 22,853,051 4,395,900

Assigned 1,798,318 1,989,371 2,420,753 2,508,464 36,617 36,617 38,137 38,137 895,727

Unassigned 108,783,933 70,739,227 52,911,589 74,237,815 61,577,669 54,675,608 44,213,159 35,375,643 29,130,898

Total General Fund $ 130,115,770 $ 90,145,537 $ 102,718,656 $ 103,531,530 $ 94,648,424 $ 86,102,112 $ 78,481,685 $ 64,275,199 $ 39,709,878

All Other Governmental Funds

Nonspendable $ 423,029 $ 2,565,251 $ 2,003,587 $ 2,007,201 $ 129,453 $ 127,347 $ 323,167 $ 150,710 $ 1,983

Restricted 269,334,972 302,871,041 275,610,226 502,145,546 218,906,035 213,561,868 188,186,359 145,233,251 93,562,980

Committed 4,655,639 2,800,714 12,829,921 8,482,877 25,890,974 6,692,707 892,897 1,862,719 7,338,797

Assigned 1,595 50,304 25,310 - - - - 1,566,956 20,576,836

Unassigned (4,777,418) (1,762,062) - - (8,747,169)

Special Revenue Funds (34) (69) - 781,619 - - - - -

Capital Projects Funds (1,928,845) (447,675) (6,839,306) - - - - - -

Total all other governmental funds $ 272,486,356 $ 307,839,566 $ 283,629,738 $ 513,417,243 $ 240,149,044 $ 218,619,860 $ 189,402,423 $ 148,813,636 $ 112,733,427

General Fund

Reserved $ 5,744,747

Unreserved 42,189,697

Total General Fund 47,934,444

All Other Governmental Funds

Reserved $ 133,774,416

Unreserved

Special Revenue Funds 426,956

Capital Projects Funds 17,165,427

Total all other governmental funds $ 151,366,799

Source: Basic Financial Statements

Note: The County implemented GASB 54 in FY 2010, thus the fund balance classifications were changed in reporting for 2010 and subsequent years.

(1) The effect of the restatement to 2014's categories of fund balance have not been determined.

Unaudited

Fund Balances, Governmental Funds

Cobb County, Georgia

20102015 2011201220142017

2009

201320162018

130

(1)

Revenues

Taxes $ 599,961,006 $ 521,102,286 $ 496,998,051 $ 497,303,435 $ 482,026,428

Licenses and permits 28,518,752 27,754,843 28,445,783 27,380,512 23,216,980

Intergovernmental 49,988,126 77,916,949 49,441,526 49,462,614 36,254,145

Charges for services 88,712,936 82,490,663 78,089,867 73,384,263 55,346,568

Fines and forfeits 9,731,182 10,569,888 11,855,345 11,447,893 12,736,005

Interest earned 4,444,645 2,393,647 2,076,573 2,244,247 1,483,303

Contributions 2,304,144 92,624,412 62,574,357 -

Miscellaneous 9,641,936 9,035,754 10,548,814 13,818,104 12,232,740

Total revenues $ 793,302,727 $ 823,888,442 $ 740,030,316 $ 675,041,068 $ 623,296,169

Expenditures

General government $ 149,229,751 $ 144,437,701 $ 140,446,801 $ 137,293,964 $ 128,252,106

Public safety 267,706,590 258,749,694 242,093,157 227,385,486 217,489,182

Public works 22,301,790 27,788,869 21,145,757 23,559,916 22,150,532

Health and welfare 7,524,733 7,508,952 7,192,792 6,609,940 6,443,854

Culture and recreation 55,124,845 49,438,397 49,202,208 42,274,216 40,020,320

Housing and development 16,083,539 15,678,995 14,736,015 16,895,956 17,146,174

Debt service

Principal retirement 26,211,095 24,151,419 18,507,246 14,042,574 10,519,015

Interest and fiscal charges 21,827,454 21,265,715 18,582,073 14,810,059 3,917,464

Capital outlay 194,121,129 261,948,186 434,201,650 302,655,447 121,817,341

Intergovernmental 36,664,971 35,563,668 36,614,195 36,746,628 35,103,822

Total expenditures $ 796,795,897 $ 846,531,596 $ 982,721,894 $ 822,274,186 $ 602,859,810

Excess of revenues over (under)

expenditures $ (3,493,170) $ (22,643,154) $ (242,691,578) $ (147,233,118) $ 20,436,359

Other financing sources (uses)

Transfers in $ 95,000,402 $ 85,302,533 $ 68,989,368 $ 143,992,902 $ 43,470,427

Transfers out (87,153,868) (78,957,372) (65,747,030) (140,620,103) (40,806,305)

Capital lease proceeds - - 8,800,000 19,866,806 110,242

Proceeds from sale of capital assets 263,659 353,948 49,161 126,687 469,872

Bonds issued - 24,700,000 - 386,600,000 -

Premium on bonds issued - 2,880,754 - 100,514 79,901

Discount on bonds issued - - - (249,821) -

Premium on issance of certificates - - - - 6,315,000

Total other financing sources (uses) $ 8,110,193 $ 34,279,863 $ 12,091,499 $ 409,816,985 $ 9,639,137

Net change in fund balances

before restatement $ 4,617,023 $ 11,636,709 $ (230,600,079) $ 262,583,867 $ 30,075,496

Restatement $ - $ - $ - $ 19,567,438 $ -

Net change in fund balances

after restatement $ 4,617,023 $ 11,636,709 $ (230,600,079) $ 282,151,305 $ 30,075,496

Debt service as a percentage of

noncapital expenditures 7.98% 7.91% 6.85% 5.62% 3.03%

Source: Basic Financial Statements

Note: Capital outlay in capital project funds in years prior to 2008 was classified by function

(1) Fiscal year 2014 was restated. The effects of the restatement to previously reported changes in fund balances has not been determined.

Unaudited

Changes in Fund Balances, Governmental Funds

Cobb County, Georgia

2018 20162017 2015 2014

131

$ 455,554,341 $ 446,198,262 $ 443,553,657 $ 415,633,188 $ 420,576,822

22,458,136 21,107,725 20,697,338 16,659,309 16,895,893

41,040,211 47,026,534 44,740,225 50,635,105 41,864,297

58,421,713 57,801,007 52,247,547 58,462,632 59,486,597

12,368,031 10,963,315 12,842,713 13,761,213 15,801,352

1,348,103 1,337,327 1,565,632 2,174,725 5,339,066

- - - - -

10,517,034 7,508,969 8,426,162 10,053,251 10,034,725

$ 601,707,569 $ 591,943,139 $ 584,073,274 $ 567,379,423 $ 569,998,752

$ 127,567,454 $ 122,402,883 $ 117,985,464 $ 125,328,297 $ 123,341,205

216,546,285 207,712,179 201,220,539 216,262,152 207,638,521

20,675,829 20,134,131 21,071,499 19,089,629 37,719,789

6,070,001 5,075,377 6,073,248 8,199,261 7,738,451

38,387,445 36,379,623 35,222,986 39,403,023 39,065,599

17,447,786 18,364,641 24,233,973 20,834,947 14,074,012

13,252,657 13,691,395 15,472,073 10,666,662 12,913,462

4,293,197 4,834,172 5,221,351 5,640,833 6,157,146

94,945,037 83,866,243 85,476,054 177,623,740 218,458,686

33,970,260 32,479,600 20,541,070 - -

$ 573,155,951 $ 544,940,244 $ 532,518,257 $ 623,048,544 $ 667,106,871

$ 28,551,618 $ 47,002,895 $ 51,555,017 $ (55,669,121) $ (97,108,119)

$ 33,104,084 $ 31,780,837 $ 39,754,285 $ 48,899,093 $ 39,580,576

(25,876,763) (24,535,492) (32,786,823) (41,516,848) (40,312,340)

904,122 527,412 1,778,899 280,310 12,567,168

154,803 19,621 344,152 1,871,876 174,369

- - - 10,730,000 -

- - - - -

- - - - -

- - - 103,572 -

$ 8,286,246 $ 7,792,378 $ 9,090,513 $ 20,368,003 $ 12,009,773

$ 36,837,864 $ 54,795,273 $ 60,645,530 $ (35,301,118) $ (85,098,346)

$ - $ - $ - $ 30,328 $ -

$ 36,837,864 $ 54,795,273 $ 60,645,530 $ (35,270,790) $ (85,098,346)

3.71% 4.06% 4.64% 3.43% 4.12%

2009

Cobb County, Georgia

Changes in Fund Balances, Governmental Funds

UnauditedUnaudited

Changes in Fund Balances, Governmental Funds

Cobb County, Georgia

201120122013 2010

132

Fiscal

Year

2009 20,135,446,844 50,338,617,110 8,007,177,834 20,017,944,585 2,650,047,807 6,625,119,518 2,964,921,509 7,412,303,773 33,757,593,994 9.60 84,393,984,986 40%

2010 18,078,841,365 45,197,103,413 7,720,793,266 19,301,983,165 2,430,590,424 6,076,476,060 3,198,128,714 7,995,321,785 31,428,353,769 9.60 78,570,884,423 40%

2011 17,078,999,812 42,697,499,530 7,109,351,351 17,773,378,378 2,531,565,795 6,328,914,488 2,990,728,676 7,476,821,690 29,710,645,634 11.11 74,276,614,086 40%

2012 15,982,982,729 39,957,456,823 7,447,369,118 18,618,422,795 2,667,891,919 6,669,729,798 2,901,783,664 7,254,459,160 29,000,027,430 11.11 72,500,068,576 40%

2013 15,811,957,069 39,529,892,673 7,082,047,086 17,705,117,715 2,914,805,850 7,287,014,625 3,005,768,196 7,514,420,490 28,814,578,201 10.91 72,036,445,503 40%

2014 16,907,664,617 42,269,161,543 7,260,294,717 18,150,736,793 2,683,400,022 6,708,500,055 3,072,303,669 7,680,759,173 29,923,663,025 10.71 74,809,157,564 40%

2015 18,169,547,660 45,423,869,150 7,672,250,921 19,180,627,303 2,151,270,171 5,378,175,428 3,285,988,674 8,214,971,685 31,279,057,426 10.51 78,197,643,566 40%

2016 20,204,883,350 50,512,208,375 7,867,423,289 19,668,558,223 1,832,860,034 4,582,150,085 3,505,481,019 8,763,702,548 33,410,647,692 9.85 83,526,619,230 40%

2017 22,049,332,812 55,123,332,030 8,502,663,155 21,256,657,888 1,574,943,474 3,937,358,685 3,073,458,137 7,683,645,343 35,200,397,578 9.85 88,000,993,946 40%

2018 23,858,299,915 59,645,749,788 9,609,046,282 24,022,615,705 1,390,262,911 3,475,657,278 3,230,540,485 8,076,351,213 38,088,149,593 11.45 95,220,373,983 40%

Source: Cobb County Tax Digest

Note: (1) Per $1,000 of assessed value.

Actual Value

Estimated Assessed

Value Value Actual Value

Real Property

Property

Personal

Other

Residential

Property Property

Commercial

Value Actual ValueValue Actual Value

Cobb County, Georgia

Assessed Value and Actual Value

Unaudited

Assessed Estimated Assessed Estimated Assessed Estimated Assessed Estimated

Assessed Value

as of a Percentage

of Actual ValueValue Actual Value

Total Total

Direct

Tax Rate (1)

133

2018 2017 2016 2015 2014 2013 2012 2011 2010 2009

Cobb County Direct Rates

General 8.46 6.76 6.66 7.12 7.32 7.52 7.72 7.72 6.82 6.82

Fire District 2.86 2.96 2.96 3.06 3.06 3.06 3.06 3.06 2.56 2.56

Debt Service 0.13 0.13 0.23 0.33 0.33 0.33 0.33 0.33 0.22 0.22

Total direct rates 11.45 9.85 9.85 10.51 10.71 10.91 11.11 11.11 9.60 9.60

Cumberland Special

Service District 2.45 2.45 2.45 2.60 2.70 - - - - -

Six Flags Special

Service District 3.50 3.50 3.50 3.50 - - - - - -

City Rates

Acworth 37.95 36.35 36.35 37.06 37.31 37.56 37.81 37.86 36.35 36.35

Austell 30.74 29.04 28.85 29.46 29.71 30.90 31.15 30.32 29.31 29.31

Kennesaw 39.85 38.25 38.25 38.96 39.21 39.46 39.71 39.76 38.25 38.25

Marietta 32.18 30.48 30.48 31.51 31.77 30.73 31.45 31.50 30.49 29.94

Powder Springs 39.85 37.25 37.25 37.96 38.21 38.46 38.71 38.76 37.25 37.25

Smyrna 36.48 34.78 34.78 35.39 35.64 35.89 36.14 36.19 35.18 35.18

School District

Cobb County Board

of Education 18.90 18.90 18.90 18.90 18.90 18.90 18.90 18.90 18.90 18.90

State of Georgia - - - 0.05 0.10 0.15 0.20 0.25 0.25 0.25

Source: Cobb County Tax Commissioner's Office

Cobb County, Georgia

Direct and Overlapping Property Tax Rates

Unaudited

Year Taxes Are Payable

134

Percentage Percentage

of Total County of Total County

Taxpayer Taxes Levied Taxes Levied

Georgia Power Co. $ 13,806,028 5.02% $ 4,298,678 1.81%

Home Depot 5,951,564 2.16% 5,786,462 2.44%

ATT/BellSouth Telecommunication 3,616,909 1.31% 2,634,528 1.11%

Ohio Teacher's Retirement Fund 3,285,530 1.19% 2,577,226 1.09%

Diamondrock Waverly Owner, LLC 1,802,886 0.76%

Diversified Development Properties 1,956,292 0.83%

SP4 3,170,295 1.34%

Lockheed Martin Corp 2,840,190 1.03% 2,443,397 1.03%

Cobb EMC 2,739,737 1.00% 2,852,067 1.20%

Walton Properties 2,378,332 0.86%

Piedmont 2,301,356 0.84%

GC Net Lease 2,079,172 0.76%

UK Lasalle Inc. 2,012,662 0.73%

Wildwood Properties 2,207,716 0.93%

Source: Cobb County Tax Commissioner's Office (2018 data was not available, therefore 2017 data was utilized)

Levied

Fiscal Year 2009

Taxes

Levied

Cobb County, Georgia

Principal Property Tax Payers

Unaudited

Fiscal Year 2017

Taxes

135

Fiscal Percentage of Percentage of

Year Adjustments Original Levy Adjusted Levy

2009 $ 239,646,001 $ (2,650,394) $ 236,995,607 $ 79,131,484 33.02% $ 156,800,985 $ 235,932,469 99.55%

2010 224,451,029 (3,263,579) 221,187,450 59,693,126 26.60% 160,313,012 220,006,138 99.47%

2011 246,978,483 (2,126,916) 244,851,567 124,618,748 50.46% 118,958,078 243,576,826 99.48%

2012 242,052,858 (4,729,609) 237,323,249 81,038,859 33.48% 153,356,118 234,394,977 98.77%

2013 233,824,893 (2,335,597) 231,489,296 77,847,895 33.29% 152,185,164 230,033,059 99.37%

2014 247,294,515 (2,934,282) 244,360,233 71,107,105 28.75% 172,395,140 243,502,245 99.65%

2015 257,918,079 (2,058,985) 255,859,094 71,060,722 27.55% 184,183,489 255,244,211 99.76%

2016 258,110,165 (1,474,013) 256,636,152 73,434,005 28.45% 182,391,267 255,825,272 99.68%

2017 277,036,463 (1,907,506) 275,128,957 71,214,299 25.71% 202,145,174 273,359,473 99.36%

2018 349,212,898 (3,421,553) 345,791,345 87,968,704 25.19% 87,968,704 25.44%

Collections

in Subsequent

Years

Taxes Levied

for the

Fiscal Year

(Original Levy)

Cobb County, Georgia

Property Tax Levies and Collections

Unaudited

Amount

Total Collections to DateFiscal Year of the Levy

Collected within the

Total

Adjusted Levy Amount

0%

10%

20%

30%

40%

50%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Collection Percentage within the Fiscal Year of the Levy

136

Percentage Percentage

Metered Annual of Total Metered Annual of Total

Customer Flow (Gallons) Revenues Revenues Flow (Gallons) Revenues Revenues

Cobb County School System 178,797,000 $ 1,859,882 1.08% 170,175,000 $ 1,565,669 1.08%

Cobb County Government 306,671,000 2,139,796 1.25% 258,635,000 1,759,248 1.22%

Kennesaw State University 121,427,000 1,170,407 0.68% 82,878,000 593,618 0.41%

Home Depot 75,623,000 666,598 0.39% - - 0.00%

YES Companies EXP2, LLC 66,129,000 641,448 0.37% - - 0.00%

Wellstar Health System 63,462,000 656,164 0.38% 69,590,000 489,128 0.34%

Walton River LP 62,373,000 616,226 0.36% - - 0.00%

Georgia Power 136,504,000 704,528 0.41% - - 0.00%

Mid-America Apartments 68,253,000 659,820 0.38% - - 0.00%

Compass Chemical 43,668,000 501,580 0.29% - - 0.00%

Lynx Chemical Group - - 0.00% 34,906,000 486,977 0.34%

The Gardens of East Cobb - - 0.00% 45,240,000 385,232 0.27%

Hickory Lake LP - - 0.00% 35,677,000 303,344 0.21%

Stone Ridge @ Vinings - - 0.00% 37,584,000 320,782 0.22%

LSI River Heights, LP - - 0.00% 35,754,000 305,275 0.21%

Cre4scent Square Apts LLC - - 0.00% 35,393,000 302,232 0.21%

Lakes of Vinings - - 0.00% 0.00%

Total 1,122,907,000 $ 9,616,447 5.60% 805,832,000 $ 6,511,505 4.51%

(2) Consists of retail water and sewer operating revenues only (i.e. excludes wholesale revenues, miscellaneous revenues, system development fees, and other non-

operating revenues).

Cobb County, Georgia

Largest Retail Water System Accounts

Unaudited

2018 2009

(1) Provided by the CCWS. All revenues are for combined water and sewer service unless otherwise stated. The listing does not include wholesale sewer

customers.

137

Meter Size 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009

5/8 Inch 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00

3/4 Inch 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00

1 Inch 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00

1.5 Inch 26.00 26.00 26.00 26.00 26.00 26.00 26.00 26.00 26.00 26.00

2.0 Inch 45.00 45.00 45.00 45.00 45.00 45.00 45.00 45.00 45.00 45.00

3.0 Inch 66.00 66.00 66.00 66.00 66.00 66.00 66.00 66.00 66.00 66.00

4.0 Inch 99.60 99.60 99.60 99.60 99.60 99.60 99.60 99.60 99.60 99.60

6.0 Inch 206.40 206.40 206.40 206.40 206.40 206.40 206.40 206.40 206.40 206.40

8.0 Inch 321.60 321.60 321.60 321.60 321.60 321.60 321.60 321.60 321.60 321.60

10.0 Inch 463.20 463.20 463.20 463.20 463.20 463.20 463.20 463.20 463.20 463.20

12.0 Inch 463.20 463.20 463.20 463.20 463.20 463.20 463.20 463.20 463.20 463.20

Source: Cobb County Water System

Fiscal Year

Unaudited

Existing Water Rates

Cobb County, Georgia

Minimum Monthly Charges

138

Usage Block Monthly Usage (gals) Water Sewer Water Sewer Water Sewer Water Sewer Water Sewer

Residential: Tier 1 (1,000 to 3,000) 3.16$ 6.04$ 2.83$ 5.41$ 2.83$ 5.41$ 2.83$ 5.41$ 2.83$ 5.41$

Tier 2 (4,000 to 15,000) 4.87$ 4.36$ 4.36$ 4.36$ 4.36$

Tier 3 (16,000 to 29,000) 6.06$ 5.43$ 5.43$ 5.43$ 5.43$

Tier 4 (30,000 to 49,000) 6.90$ 6.36$ 6.36$ 6.36$ 6.36$

Tier 5 (50,000 and above) 9.21$ 8.25$ 8.25$ 8.25$ 8.25$

Non-Residential: 4.78$ 6.04$ 4.28$ 5.41$ 4.28$ 5.41$ 4.28$ 5.41$ 4.28$ 5.41$

Water Sewer Water Sewer Water Sewer Water Sewer Water Sewer

Residential: Tier 1 (1,000 to 3,000) 2.83$ 5.41$ 2.83$ 5.41$ 2.83$ 5.30$ 2.67$ 5.10$ 2.47$ 4.85$

Tier 2 (4,000 to 15,000) 4.36$ 4.36$ 4.11$ 3.88$ 3.62$

Tier 3 (16,000 to 29,000) 5.43$ 5.43$ 5.12$ 4.83$ 4.09$

Tier 4 (30,000 to 49,000) 6.36$ 6.36$ 6.00$ 5.66$ 4.80$

Tier 5 (50,000 and above) 8.25$ 8.25$ 7.78$ 7.34$ 6.86$

Non-Residential: 4.28$ 5.41$ 4.28$ 5.41$ 4.04$ 5.30$ 3.81$ 5.10$ 3.56$ 4.85$

Source: Cobb County Water System

Cobb County, Georgia

Existing Sewer Rates

Unaudited

Rate Per 1,000 Gallons

Fiscal Year

2018 2017

2013 2012

2016 2015 2014

2011 2010 2009

139

Double Check Domestic or Unmetered

Detector Fire Meter Fire Line

Meter Size Assembly (No Backflow) (1) (No Backflow) (1)

5/8 Inch 19.00$

3/4 Inch 19.00$

1 Inch 19.00$

1 1/2 Inch 19.00$

2 Inch 20.00$ 24.00$

3 Inch 20.00$ 32.00$

4 Inch 20.00$ 40.00$

6 Inch 50.00$ 151.00$ 200.00$

8 Inch 60.00$ 201.00$ 250.00$

10 Inch 80.00$ 251.00$ 300.00$

12 Inch 110.00$ 350.00$

Permitting Total Fee

Fiscal Year CCWS Portion Jurisdiction (3) Collected

2009-2018 2,400.00$ 500.00$ 2,900.00$

Source: Cobb County Water System

Cobb County, Georgia

Cobb County, Georgia

Fire Sprinkler Service Charges

Unaudited

2009-2018

System Development Fees

Unaudited

140

Description Water Sewer Total Water Sewer Total

CCWS (Existing 2015) 28.57$ 32.46$ 61.03$ 25.18$ 29.40$ 54.58$

CCWS (Projected 2019) (2) 31.09$ 36.24$ 67.33$ -$ -$ -$

Other Public Utilities:

Fulton County 23.00$ 40.28$ 63.28$ 21.57$ 37.89$ 59.46$

Paulding County 52.26$ 47.20$ 99.46$ 37.04$ 32.00$ 69.04$

City of Atlanta 33.64$ 82.75$ 116.39$ 33.64$ 82.75$ 116.39$

Cherokee County 37.45$ 47.35$ 84.80$ 30.20$ 38.00$ 68.20$

Douglas County 39.12$ 45.40$ 84.52$ 30.85$ 33.47$ 64.32$

Gwinnett County 37.02$ 52.88$ 89.90$ 30.66$ 29.46$ 60.12$

Coweta County 45.14$ 50.30$ 95.44$ 40.00$ 39.15$ 79.15$

Rockdale County 37.91$ 54.29$ 92.20$ 33.65$ 39.23$ 72.88$

Clayton County 34.20$ 36.47$ 70.67$ 27.39$ 28.53$ 55.92$

DeKalb County 17.66$ 74.93$ 92.59$ 10.63$ 40.71$ 51.34$

Average of Other Utilities 35.74$ 53.19$ 88.93$ 29.56$ 40.12$ 69.68$

Source: Cobb County Water System

Cobb County, Georgia

Rate Comparison With Other Utilities (1)

Unaudited

2018

(2) Based on rate adjustments approved by the Board to become effective on January 1, 2017. The proposed rate adjustments will only apply

to the volumetric rate components.

Fiscal Year

(1) Assumes a residential customer using 6,000 gallons of service per month.

2009

141

Description 2018 2009

General Wholesale Customers 4.22$ 3.83$

Fulton County:

Flows up to 10.32 MGD 2.28$ 2.07$

Flows exceeding 10.32 MGD 4.22$ 3.83$

Source: Cobb County Water System

(1) Fulton County funded 50 percent of the cost of the original Sutton WRF, and

subsequently receives a reduced rate that excludes a capital recovery component up to the

portion of capacity that was funded. A similar provision is in the 2003 agreement between

the County and Fulton County for the Sutton WRF replacement project previously

discussed.

Cobb County, Georgia

Wholesale Sewer Rates

Unaudited

Rate Per 1,000 Gallons

142

Percentage

Percentage Actual Value

Fiscal of Personal of Taxable

Year Income Property

2009 $ 61,213,258 $ 6,617,567 $ 54,595,691 0.19% 0.06% 79.73

2010 54,097,458 8,244,274 45,853,184 0.16% 0.06% 66.48

2011 47,588,653 8,728,738 38,859,915 0.13% 0.05% 55.71

2012 40,370,000 9,248,141 31,121,859 0.11% 0.04% 43.98

2013 33,920,141 9,841,774 24,078,367 0.08% 0.03% 33.59

2014 26,436,633 10,930,878 15,505,755 0.05% 0.02% 21.27

2015 18,638,155 12,611,608 6,026,547 0.02% 0.01% 8.14

2016 10,514,647 10,490,000 24,647 0.00% 0.00% 0.03

2017 29,525,691 8,500,227 21,025,464 0.06% 0.02% 27.64

2018 23,250,565 6,905,735 16,344,830 0.04% 0.02% 21.12

Source: Basic Financial Statements

General Bonded Debt Outstanding

Cobb County, Georgia

Ratios of General Bonded Debt Outstanding

Unaudited

Debt

Net Bonded

Capita

PerPremiums, Discounts, &

Adjustments

Bonds Net of Related

General Obligation

Restricted to

Repaying

Principal

Less: Amounts

$-

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Cobb County's Net Bonded Debt

143

Estimated

Percentage

Governmental Unit Applicable (1)

Cities

Kennesaw $ 8,945,000 100% $ 8,945,000

Marietta 75,635,000 100% 75,635,000

Powder Springs 9,315,000 100% 9,315,000

Total cities $ 93,895,000

Development Authorities

Acworth $ 14,715,000 100% $ 14,715,000

Marietta 16,495,000 100% 16,495,000

Smyrna 44,766,989 100% 44,766,989

Total development authorities $ 75,976,989

Subtotal, overlapping debt $ 169,871,989

Total direct debt

General Obligation Debt, net of premiums, discounts, and adjustments 23,250,565

Certificates of Participation 7,965,000

Capital Lease Payable 13,985,297

Revenue Anticipation Certificates, net of premiums 5,630,373

Governmental Revenue Bonds, net of premiums, discounts, and adjustments 456,450,099

Total direct debt $ 507,281,334

Total direct and overlapping debt $ 677,153,323

(1) Entities are situated entirely within the geographic boundaries of the County

Sources: Assessed value data used to estimate applicable percentages provided by the Cobb County Board of Equalization

and Assessment. Debt outstanding data provided by each governmental unit.

Debt

Debt

Outstanding

Share of

Direct and

Notes: Overlapping governments are those that coincide, at least in part, within the geographic boundaries of the County.

This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents

and businesses of the County. This process recognizes that, when considering the County's ability to issue and repay long-

term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does

not imply that every taxpayer is a resident, and therefore responsible for repaying the debt of each overlapping government.

Overlapping

Cobb County, Georgia

Direct and Overlapping Governmental Activities Debt

As of September 30, 2018

Estimated

Unaudited

144

Assessed value of property $ 38,088,149,593 $ 35,200,397,578 $ 33,410,647,692 $ 31,279,057,426 $ 29,923,663,025

Debt limit, 10% of assessed value 3,808,814,959 3,520,039,758 3,341,064,769 3,127,905,743 2,992,366,303

Amount of debt applicable to limit - - - 5,828,392 15,134,122

General Obligation Bonds 21,090,000 26,885,000 10,490,000 18,440,000 26,065,000

Less: Resources restricted to paying principal (6,905,735) (8,500,227) (10,490,000) (12,611,608) (10,930,878)

Total net debt applicable to limit 14,184,265 18,384,773 - 5,828,392 15,134,122

Legal debt margin $ 3,794,630,694 $ 3,501,654,985 $ 3,341,064,769 $ 3,122,077,351 $ 2,977,232,181

Total net debt applicable to the limit

as a percentage of debt limit 0.37% 0.52% 0.00% 0.19% 0.51%

Assessed value of property $ 28,814,578,201 $ 29,000,027,430 $ 29,710,645,634 $ 31,428,353,769 $ 33,757,593,994

Debt limit, 10% of assessed value 2,881,457,820 2,900,002,743 2,971,064,563 3,142,835,377 3,375,759,399

Amount of debt applicable to limit 23,533,226 31,121,859 38,341,262 45,235,726 53,682,433

General Obligation Bonds 33,375,000 40,370,000 47,070,000 53,480,000 60,300,000

Less: Resources restricted to paying principal (9,841,774) (9,248,141) (8,728,738) (8,244,274) (6,617,567)

Total net debt applicable to limit 23,533,226 31,121,859 38,341,262 45,235,726 53,682,433

Legal debt margin $ 2,867,924,594 $ 2,868,880,884 $ 2,932,723,301 $ 3,097,599,651 $ 3,322,076,966

Total net debt applicable to the limit

as a percentage of debt limit 0.82% 1.07% 1.29% 1.44% 1.59%

Source: Cobb County Tax Commissioner's Office

2016

Fiscal Year

Fiscal Year

2017

2012

Cobb County, Georgia

20142018

Unaudited

Legal Debt Margin Information

2010 2009

2015

2013 2011

$-

$3,794,630,694

Legal Debt Information - Fiscal Year 2018

Amount of debt applicable to limit Legal debt margin

145

General Revenue Total Premiums, Total Percentage

Fiscal Obligation Certificates of Anticipation Revenue Capital Revenue Capital Notes Discounts, & Primary of Personal Per

Year Bonds Participation Certificates Bonds Leases Bonds Leases Payable Adjustments Government Income Capita

2009 $ 60,300,000 $ - $ - $ 137,865,000 $ 19,055,578 $ 236,025,000 $ 102,032 $ 69,257,915 $ * $ 522,605,525 1.86% $ 763.17

2010 53,480,000 10,730,000 - 133,000,000 16,767,946 224,675,000 17,401 87,374,239 * 526,044,586 1.86% 762.72

2011 47,070,000 10,490,000 - 128,460,000 10,766,312 212,490,000 - 132,316,878 12,584,669 554,177,859 1.88% 794.46

2012 40,370,000 10,260,000 - 123,685,000 5,907,329 198,990,000 325,654 163,412,065 11,706,761 554,656,809 1.88% 783.82

2013 33,375,000 9,990,000 - 118,650,000 2,298,794 185,325,000 258,842 164,395,534 9,076,216 523,369,386 1.75% 730.08

2014 26,065,000 9,670,000 6,315,000 101,870,000 1,115,021 179,395,000 190,749 156,084,686 11,843,248 492,548,704 1.55% 675.51

2015 18,440,000 9,270,000 6,315,000 483,340,000 20,249,253 165,330,000 121,352 147,533,739 10,502,927 861,102,271 2.56% 1,163.43

2016 10,490,000 8,850,000 6,070,000 477,610,000 25,027,811 152,885,000 - 138,736,509 9,340,771 829,010,091 2.39% 1,108.08

2017 26,885,000 8,415,000 5,820,000 467,890,000 19,731,392 140,040,000 - 129,682,955 10,898,305 809,362,652 2.22% 1,064.00

2018 21,090,000 7,965,000 5,565,000 454,095,000 13,985,297 126,780,000 - 120,368,698 9,492,525 759,341,520 2.02% 981.15

* Information prior to 2011 is not readily available

Cobb County, Georgia

Governmental Activities

Unaudited

Ratios of Outstanding Debt By Type

Business - Type Activities

$-

$200

$400

$600

$800

$1,000

$1,200

$1,400

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Debt Per Capita

146

Water and Sewer Bonds:

Direct Net Revenue

Fiscal Gross Operating Available for Debt Service Requirements

Year Revenues (2) Expenses (1) Debt Service Principal Interest Total Coverage

2009 $ 173,328,501 $ 111,624,602 $ 61,703,899 $ 5,135,000 $ 5,503,503 $ 10,638,503 5.80

2010 184,733,255 113,271,988 71,461,267 8,915,000 9,202,344 18,117,344 3.94

2011 197,794,263 111,410,679 86,383,584 9,665,000 9,485,689 19,150,689 4.51

2012 201,676,082 114,183,662 87,492,420 10,015,000 9,044,825 19,059,825 4.59

2013 188,229,350 113,474,593 74,754,757 10,395,000 8,588,025 18,983,025 3.94

2014 194,473,101 122,988,407 71,484,694 11,770,000 6,471,112 18,241,112 3.92

2015 200,161,816 126,684,133 73,477,683 11,590,000 6,023,749 17,613,749 4.17

2016 207,690,263 134,860,019 72,830,244 12,330,000 5,679,339 18,009,339 4.04

2017 204,602,109 143,418,500 61,183,609 12,725,000 4,899,075 17,624,075 3.47

2018 203,098,936 136,953,303 66,145,633 13,150,000 4,489,176 17,639,176 3.75

(1) Depreciation expense not included.

(2) Includes non operating revenues and transfers in.

Cobb County, Georgia

Revenue Bond Coverage

Unaudited

147

General Obligation Bonds

Year Ending

September 30 Principal Interest Principal Interest Principal Interest Principal Interest

2019 3,800,000 959,500 14,270,000 18,997,328 13,705,000 4,727,264 31,775,000 24,684,092

2020 4,000,000 764,500 14,820,000 18,507,757 14,165,000 4,287,620 32,985,000 23,559,877

2021 4,210,000 559,250 15,425,000 17,968,618 14,670,000 3,800,247 34,305,000 22,328,115

2022 4,430,000 343,250 16,075,000 17,372,815 15,165,000 3,293,000 35,670,000 21,009,065

2023 4,650,000 116,250 16,760,000 16,742,921 15,690,000 2,765,522 37,100,000 19,624,693

2024-2028 - - 87,745,000 73,086,612 44,035,000 7,718,016 131,780,000 80,804,628

2029-2033 - - 61,970,000 58,313,332 9,350,000 397,375 71,320,000 58,710,707

2034-2038 - - 69,660,000 44,222,771 - - 69,660,000 44,222,771

2039-2043 - - 85,300,000 27,123,750 - - 85,300,000 27,123,750

2044-2047 - - 72,070,000 6,630,525 - - 72,070,000 6,630,525

$ 21,090,000 $ 2,742,750 $ 454,095,000 $ 298,966,429 $ 126,780,000 $ 26,989,044 $ 601,965,000 $ 328,698,223

Total Primary Government

Bonds

Cobb County, Georgia

Annual Debt Service Requirements

Unaudited

Revenue BondsRevenue Bonds

Governmental ActivitiesGovernmental Activities Business Type Activities

148

Per Capita County

Personal Personal Unemployment

Population Income Income Rate

Year (1) (1) (1) (2)

2009 684,780 28,103,110,000 41,039.62 9.6%

2010 689,700 28,272,470,000 40,992.42 9.5%

2011 697,550 29,529,280,000 42,332.85 8.4%

2012 707,630 29,522,180,000 41,719.80 7.3%

2013 716,870 29,987,220,000 41,830.76 7.1%

2014 729,150 31,733,810,000 43,521.65 6.0%

2015 740,140 33,692,030,000 45,521.16 4.9%

2016 748,150 34,647,630,000 46,311.07 4.5%

2017 760,680 36,471,660,000 47,946.13 3.6%

2018 773,930 37,682,170,000 48,689.38 3.2%

(2)

City 2018 Population

Acworth 22,163

Austell 7,227

Kennesaw 33,433

Marietta 60,203

Powder Springs 14,765

Smyrna 55,467

Total 193,258

Source:

(1) Woods & Poole Economics 2018 Data Pamphlet

(2) Office of Economic Development and Cobb Chamber of Commerce

Cobb County, Georgia

Demographic and Economic Statistics

Unaudited

149

Percentage Percentage

of Total County of Total County

Employer Industry Employees Employment Employees Employment

Brand Energy & Infastructure Holdings Retail 2,803 0.52%

Cobb County Government Government 5,086 0.94% 5,288 1.23%

Cobb County Schools Government 14,984 2.77% 20,133 4.70%

Dobbins Air Force Base Government 2,521 0.59%

Home Depot Retail 12,000 2.22%

Kennesaw State University Education 5,980 1.11% 3,107 0.72%

Kroger Co. Retail 2,523 0.47%

Lockheed Martin Aircraft/Defense 5,100 0.94% 7,028 1.64%

Publix Super Markets Retail 3,619 0.67% 4,207 0.98%

Ryla Teleservices Inc. (Alorica) Call Center 3,932 0.92%

Six Flags Over Georgia Theme Park 2,772 0.51% 2,506 0.58%

Walmart Retail 2,750 0.64%

Wellstar Health System Healthcare 11,596 2.15% 9,142 2.13%

Source: Office of Economic Development and Cobb Chamber of Commerce

* Total County Employment per Woods & Poole Economics 2018 Data Pamphlet.

Cobb County, Georgia

Principal Employers

Unaudited

20092018

150

Year Permits Values Permits Values Permits Values

2018 982 296,695,988 9776 679,604,979 10,758 976,300,967

2017 943 290,368,248 8882 703,401,304 9,825 993,769,552

2016 939 310,783,719 4786 1,060,620,960 5,725 1,371,404,679

2015 923 314,159,526 4673 763,401,075 5,596 1,077,560,601

2014 938 277,097,942 6414 318,658,575 7,352 595,756,517

2013 1077 316,049,472 5243 395,524,902 6,320 711,574,374

2012 734 203,691,614 4933 377,565,829 5,667 581,257,443

2011 586 157,087,812 5144 466,193,085 5,730 623,280,897

2010 467 107,288,665 5041 267,126,934 5,508 374,415,599

2009 248 59,240,178 4842 183,535,565 5,090 242,775,743

Source: Cobb County Building Inspections Department

Single Family

Residence

Commerical

Industrial, Other

Cobb County, Georgia

Building Permits and Construction

Unaudited

Total

New Construction

151

Total Deposits

Year (in thousands)

2018 15,215,670$

2017 13,416,881$

2016 13,796,846$

2015 11,935,855$

2014 10,933,235$

2013 10,269,243$

2012 10,102,532$

2011 9,489,929$

2010 9,467,972$

2009 10,542,221$

Source: Federal Deposit Insurance Corporation

Commercial and Saving Bank Deposit

Unaudited

Combined Financial Institutional Statistics

Cobb County, Georgia

152

Function/Program 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009

General government 1,119 1,109 1,102 1,174 1,141 1,148 1,150 1,141 1,143 1,170

Public safety 2,290 2,285 2,240 2,260 2,348 2,304 2,294 2,294 2,294 2,291

Public works 171 159 153 161 165 165 159 148 148 174

Health and welfare 44 46 45 67 46 45 43 53 53 59

Culture and recreation 304 296 288 447 292 291 318 318 318 331

Housing and development 112 109 93 110 90 88 92 92 93 103

Water 377 394 389 408 434 429 429 429 429 434

Solid waste 6 4 4 4 4 4 6 6 7 58

Total 4,423 4,402 4,314 4,631 4,520 4,474 4,491 4,481 4,485 4,620

Source: Cobb County Human Resources Department

Cobb County, Georgia

Full-time Equivalent Cobb County Government Employees by Function

Unaudited

Full-time Equivalent Employees as of September 30

25%

52%

4% 1% 7%

3% 8%

0%

Full-time Equivalent Cobb County Government Employees by Function General government Public safety Public works Health and welfare Culture and recreation Housing and development Water Solid waste

153

2018 2017 2016 2015 2014 2013 2012 2011 2010 2009

General government

Vehicle tags issued 640,101 639,008 632,791 721,751 698,400 698,010 632,813 695,116 681,339 679,519

Public safety

E-911 calls 385,518 388,150 400,401 414,371 399,038 381,924 393,208 380,090 382,357 392,177

Police service calls 471,146 490,607 481,449 506,325 483,756 454,620 458,160 457,878 488,890 502,275

Fire/EMS dispatches 86,708 86,802 84,309 77,386 74,074 68,021 64,823 64,854 61,841 61,763

Public works

Miles of road resurfacing 48.43 69.73 83.00 87.00 124.00 124.00 92.00 64.00 35.93 45.00

Health and welfare

Number of child support cases 5,562 5,782 5,975 5,988 6,436 6,217 7,500 7,587 7,814 8,108

Culture and recreation

Golf rounds played 39,075 38,609 41,334 39,940 38,795 42,014 44,848 40,385 24,198 40,414

Housing and development

Building permits issued 10,758 9,825 5,725 5,596 7,352 6,319 5,667 5,730 5,508 9,014

Water

Water accounts 183,377 182,020 180,886 179,882 177,969 176,207 174,837 176,406 175,688 175,075

Water Purchase 57,607,002 57,831,648 56,906,048 53,144,642 50,166,716 45,611,090 47,698,883 44,919,089 40,513,474 35,430,555

Sales 92,177,941 94,229,181 94,661,829 91,752,406 88,651,958 86,189,236 93,143,253 89,932,972 82,614,026 76,054,675

Daily average consumption

- 1,000 gal units 54,055 55,611 56,167 54,408 53,104 51,552 56,709 56,909 56,312 54,027

Solid waste

Solid waste and compost tonnage ** ** ** ** ** ** ** ** ** 144,661

Source: Department managers within each function/program.

* Information not available

**At the end of FY2009, Solid Waste was privitized

Cobb County, Georgia

Function/Program

Unaudited

Operating Indicators by Function

Fiscal Year

154

2018 2017 2016 2015 2014 2013 2012 2011 2010 2009

General government

Fleet service bays 23 23 23 23 23 23 23 23 23 23

Public safety

Police stations 6 6 6 6 6 6 6 6 6 6

Fire stations 29 29 29 30 30 30 30 31 31 29

Public works

Miles of road*** 2,434 2,431 2,426 3,290 3,228 3,275 3,256 3,451 3,418 3,393

Miles of sidewalks 1,243 1,231 1,227 1,225 1,210 1,186 1,174 1,160 1,146 1,130

Health and welfare

Senior service centers 6 6 6 6 6 6 5 4 5 5

Culture and recreation

County parks 90 78 77 77 77 77 77 77 77 75

County libraries 16 16 16 16 17 17 17 17 17 17

County golf courses 2 2 2 2 2 2 2 2 2 2

Housing and development

HUD homes built 10 13 6 7 4 28 14 2 1 1

Water

Miles of water mains* 3,324 3,286 3,282 3,215 2,907 3,150 3,133 3,130 3,121 3,086

Miles of sewers* 2,646 2,613 2,623 2,593 2,607 2,603 2,605 2,596 2,611 2,582

Solid waste

Landfills 3 3 3 3 3 3 3 3 3 3

Source: Department managers within each function/program.

*In 2010, Water began utilizing Geographical Information System [GIS] to calculate assets. Historical data has been revised based on 2010 GIS quantities

***In 2012, the miles of roads indicator was reduced so as to not include private roads.

Cobb County, Georgia

Function/Program

Unaudited

Capital Asset Statistics by Function

Fiscal Year

155

Wyckoff Quarles Wyckoff Quarles

Description Plant Plant Plant Plant

Water Treatment (MGD) 72.00 86.00 72.00 86.00

Raw Water Pumping (MGD) 99.00 108.00 99.00 108.00

Treated Water Pumping (MGD) 101.00 90.00 101.00 122.00

Raw Water Storage (MG) - 25.00 - 25.00

Clear Well Storage (MG) 6.00 14.00 6.00 8.00

Potable/Finished Water Storage (MG)

Combined Average Daily Production 81.6 MGD 79.0 MGD

Existing Capacity Existing Capacity

Treatment Plant Date in Service Capacity Used (%) Capacity Used (%)

R.L. Sutton 1973 60.00 45% 60.00 39%

South Cobb 1964 40.00 62% 40.00 57%

Noonday 1973 20.00 52% 20.00 46%

Northwest 1987 12.00 56% 12.00 53%

Total 132.00 132.00

Source: Cobb County Water System

2018

Fiscal Year

2009

Fiscal Year

Combined = 36.5

2018

(1) At the Wyckoff Plant, no raw water storage is utilized. The source water is taken directly from the Allatoona Reservoir.

Fiscal Year

Combined = 40.5

Cobb County, Georgia

Existing Authority Water & Sewer Treatment System Capacities

Unaudited

2009

Fiscal Year

156

Fiscal Year Accounts % Change Accounts % Change

2009 175,075 0.21% 144,787 0.45%

2010 175,688 0.35% 146,172 0.96%

2011 176,406 0.41% 147,299 0.77%

2012 174,837 -0.89% 148,332 0.70%

2013 176,207 0.78% 151,161 1.91%

2014 177,969 1.00% 152,399 0.82%

2015 179,882 1.07% 153,480 0.71%

2016 180,886 0.56% 150,042 -2.24%

2017 182,020 0.63% 150,897 0.57%

2018 183,377 0.75% 152,120 0.81%

Source: Cobb County Water System

Water Sewer

Cobb County, Georgia

Historical System Accounts

Unaudited

157

COMPREHENSIVE ANNUAL FINANCIAL REPORT

Return to Table of

Contents

Cobb County Finance Department, 100 Cherokee Street, Marietta, Georgia 30090

COMPLIANCE SECTION

The Compliance Section includes the special report of the 1 percent Sales and Use Tax and the Water System Comparative Statement of Revenues and Expenses as required by the Security and Exchange Commission’s Rule 15c2-12(b)(5).

Cobb County, Georgia

Road Sales Tax Funds

Schedule of Projects Constructed with Special Sales Tax Proceeds

For the Fiscal Year Ended September 30, 2018

Estimated

Original Revised Expenditures Percentage

Estimated Estimated Prior Current of

Project Cost Cost Years (1) Year Total Completion

2006 SPLOST:

Public Safety

Jail Expansion $ 110,000,000 $ 110,000,000 $ 109,999,999 $ - $ 109,999,999 100.00%

New Court House 55,000,000 63,380,000 62,399,455 913,260 63,312,715 99.89%

800Mhz Communication System:

Cobb County 22,625,636 23,556,090 23,556,090 - 23,556,090 100.00%

City of Acworth 800Mhz 208,728 229,395 229,395 - 229,395 100.00%

City of Austell 800Mhz 160,334 192,681 192,681 - 192,681 100.00%

City of Kennesaw 800 Mhz 353,942 428,767 428,767 - 428,767 100.00%

City of Marietta 800 Mhz 2,519,952 1,409,151 1,409,151 - 1,409,151 100.00%

City of Powder Springs 800 Mhz 281,340 253,476 253,476 - 253,476 100.00%

City of Smyrna 800 Mhz 850,068 930,440 930,440 - 930,440 100.00%

Transportation:

Cobb County 525,324,286 545,586,977 511,230,904 8,598,576 519,829,480 95.28%

City of Acworth 11,090,749 9,974,670 9,974,670 - 9,974,670 100.00%

City of Austell 2,042,132 1,743,270 1,743,270 - 1,743,270 100.00%

City of Kennesaw 9,931,674 7,988,479 7,988,479 - 7,988,479 100.00%

City of Marietta 58,273,797 52,533,354 52,533,354 - 52,533,354 100.00%

City of Powder Springs 13,212,326 11,537,187 11,537,187 - 11,537,187 100.00%

City of Smyrna 42,725,391 37,005,532 37,005,532 - 37,005,532 100.00%

Program Total $ 854,600,355 $ 866,749,469 $ 831,412,850 $ 9,511,836 $ 840,924,686 97.02%

2011 SPLOST:

Facilities $ 16,748,420 $ 24,122,397 $ 18,334,113 $ 1,779,023 $ 20,113,136 83.38%

Parks 82,023,000 87,098,000 76,079,189 5,753,157 81,832,346 93.95%

Public Safety

Equipment 10,931,400 9,615,278 9,359,042 79,658 9,438,700 98.16%

800Mhz Communication System 1,965,000 1,965,000 1,961,502 - 1,961,502 99.82%

Transportation:

Cobb County 250,885,000 350,739,576 286,369,740 19,520,299 305,890,039 87.21%

City of Acworth 13,323,141 14,468,360 14,465,016 - 14,465,016 99.98%

City of Austell 4,672,186 5,073,793 5,072,620 - 5,072,620 99.98%

City of Kennesaw 22,107,998 24,008,337 24,002,788 - 24,002,788 99.98%

City of Marietta 44,799,421 48,650,249 48,639,004 - 48,639,004 99.98%

City of Powder Springs 10,678,598 9,596,499 9,593,820 - 9,593,820 99.97%

City of Smyrna 33,934,318 38,851,214 38,842,695 - 38,842,695 99.98%

Program Total $ 492,068,482 $ 614,188,703 $ 532,719,529 $ 27,132,137 $ 559,851,666 91.15%

2016 SPLOST:

Facilities $ 23,228,600 $ 23,428,447 $ 5,167,346 $ 4,240,977 $ 9,408,323 40.16%

Libraries 23,203,167 28,553,167 10,516,785 2,353,389 12,870,174 45.07%

Technology 30,079,000 30,079,000 492,608 2,045,055 2,537,663 8.44%

Parks 77,508,779 76,158,779 10,789,960 28,396,913 39,186,873 51.45%

Public Health 6,500,000 7,835,728 5,634,341 2,201,422 7,835,763 100.00%

Public Safety 115,051,584 125,300,232 39,661,600 22,507,911 62,169,511 49.62%

Senior Services 2,201,580 2,201,580 1,198,347 955,092 2,153,439 97.81%

Transportation:

Cobb County 287,331,467 364,179,683 80,701,451 56,893,291 137,594,742 37.78%

City of Acworth 21,208,827 21,208,827 6,984,585 4,205,725 11,190,310 52.76%

City of Austell 6,725,280 6,725,280 2,214,798 1,333,628 3,548,426 52.76%

City of Kennesaw 31,602,891 31,602,891 10,407,604 6,266,875 16,674,479 52.76%

City of Marietta 58,353,902 58,353,902 19,217,366 11,571,519 30,788,885 52.76%

City of Powder Springs 14,231,720 14,231,720 4,686,853 2,822,160 7,509,013 52.76%

City of Smyrna 52,773,203 52,773,203 17,379,506 10,768,423 28,147,929 53.34%

Program Total $ 750,000,000 $ 842,632,439 $ 215,053,150 $ 156,562,380 $ 371,615,530 44.10%

(1) As revised

158

Cobb County, Georgia

Water and Sewer Enterprise Fund

Comparative Statements of Revenues and Expenses

For the Fiscal Years Ended September 30, 2018 and 2017

2018 2017

Operating revenues:

Water sales $ 92,177,941 $ 94,229,181

Sewer sales 102,204,599 102,518,286

Water connection charges 4,771,321 4,599,064

Sewer connection charges 1,600,510 1,453,887

Other 838,688 757,125

Total operating revenues 201,593,059 203,557,543

Operating expenses:

Administrative 24,066,707 22,568,926

Engineering 2,837,765 2,697,507

Water operations 66,565,391 72,451,714

Sewer operations 43,483,440 45,700,353

Total operating expenses 136,953,303 143,418,500

Operating income before depreciation 64,639,756 60,139,043

Less depreciation (54,419,095) (42,621,083)

Operating income 10,220,661 17,517,960

Nonoperating revenues (expenses):

Interest income 644,241 356,749

Interest and fiscal charges (4,872,294) (5,269,731)

Amortization 640,722 640,722

Gain from sale of capital assets 140,396 22,183

Total nonoperating revenues (expenses) (3,446,935) (4,250,077)

Net income before transfers and capital contributions 6,773,726 13,267,883

Capital contributions 17,991,751 16,893,523

Total capital contributions 17,991,751 16,893,523

Transfers:

Transfers in 80,518 24,912

Transfers out (21,845,936) (21,648,338)

Total transfers (21,765,418) (21,623,426)

Change in net position $ 3,000,059 $ 8,537,980

Note: The comparative financial statement above has been prepared in order to meet continuing disclosure

requirements as set forth in the Security and Exchange Commission's Rule 15c2-12(b)(5).

159

  • Cover and back.pdf
    • 00-BB20192020 frontcover
    • 00- TOC
    • BB 20192020 draft7
      • Section 1-6 plus Admin CommDev Elected
        • Section1 Intro minus TOC
          • 02-BB20192020 BOC and Map
          • 03-Acknowledgements
          • 04-BB20192020 CAFR cert
          • 05-OrgChart_Aug2018
        • Section 2 TheFinePrint
          • 00-TAB The Fine Print
          • 01-Letter from chairman
          • 02-Budget Message FY2019-2020 Biennial Book-FINAL
          • 03-County Mission
          • 04-County Vision
          • 05-Budget Plan and Process
          • 06-Budget Calendar
          • 07-Strategic Plan
          • 08-Policies and Procedures
          • 09-Destination Success-FY2019-2020-REVISED 11-29-18
          • 10-Understanding Your Cobb County Property Tax Bill
        • Section 3 JusttheFacts
          • 00-TAB Just the Facts
          • 01-History of Cobb (revised 11.28.18)
          • 02-Prior Year Highlights rev 11.29
        • Section 4 OntheJob
          • TAB On the Job
          • 1-Positions and Benefits
          • 2-Full-Time Classification Pay Schedule
          • 3-Part-Time Classification Pay Schedule
        • Section5 BottomLine
          • TAB Bottom Line
          • 1-Operating Budgets Summary-REVIEWED
          • 2-General Fund Overview-REVIEWED
          • 3-Claims Fund Overview-REVIEWED
          • 4-Debt Services Fund--REVISED 11-29-18
          • 5-E911 Fund-REVIEWED
          • 6-Fire Fund Overview-REVIEWED
          • 7-Solid Waste Fund Overview-REVIEWED
          • 8- Transit Operating Fund Overview-REVIEWED 11-27-18
          • 9-Water Fund Overview -REVIEWED
          • 10-Other Operating Funds Summary-REVIEWED
          • 11-Capital Budgets Summary-REVIEWED
          • 12-Capital Projects Fund REVIEWED 11-27-18
          • 13-Water RE&I Fund Overview REVIEWED 11-27-18
          • 14-Water SDF Fund Overview REVIEWED 11-27-18
        • 00-TAB Dept Info
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        • Agency Section 6 Admin
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          • Elected - Law Library
          • Elected - Magistrate Court
          • Elected - Probate Court
          • Elected - Sheriff
          • Elected - Solicitor
          • Elected - State Court DUI
          • Elected - State Court
          • Elected - Superior Court
          • Elected - Tax Commissioner
      • Section7-9
        • Agency Section 6 Public Safety
          • Agency Page - Department of Public Safety
          • DPS - Administration
          • DPS - Animal Services
          • DPS - EMA
          • DPS - E-911
          • DPS - Fire
          • DPS - Police
          • DPS - 800 MHz
          • DPS - Safety Village
        • Agency Section 6 Public Services
          • Agency Page - Public Services (revised 11.28.18)
          • PSA - Public Services Agency - Admin
          • PSA - Elections
          • PSA - Extension Services
          • PSA - Golf Course Fund
          • PSA - Government Service Center
          • PSA - Library
          • PSA - PARKS
          • PSA - Senior Services
          • PSA - SOLID WASTE
        • Agency Section 6 Support Services
          • Agency Page - Support Services (revised 11.28.18)
          • SSA - Support Services Agency
          • SSA - Fleet Management
          • SSA - Information Services
          • SSA - Property Management
          • SSA - Property Management - Parking Deck
          • SSA - Purchasing
          • SSA - Postal Printing Copier & Records Services
          • SSA - Tax Assessor
        • Agency Section 6 Transportation
          • Agency Page - Transportation
          • DOT - Administration
          • DOT - STREET LIGHT DISTRICT
          • DOT - TRANSIT
        • Agency Section 6 Water
          • Agency Page - Water and Sewer
          • Water System
        • Section 7 Capital Ideas
          • TAB Capital Ideas
          • 01 - INTRO AND OVERVIEW
          • 02 - CAPITAL FUNDS SUMMARY
          • 03 - STADIUM CAPITAL MAINTENANCE TRUST
          • 04 - CAPITAL FUND PROJECTS SUMMARY
          • 05 - CAPITAL PROJECTS CRS-CIP-OTHER
          • 06 - WATER RE&I FUND SUMMARY
          • 07 - WATER RE&I ADMINISTRATION
          • 08 - WATER RE&I METER INSTALLATION
          • 09 - WATER RE&I MISC PROJECTS
          • 10 - WATER RE&I SEWER REPLACE
          • 11 - WATER RE&I STORMWATER MGMT
          • 12 - WATER RE&I RELOCATIONS COUNTY ROADS
          • 13 - WATER RE&I RELOCATIONS STATE ROADS
          • 14 - WATER RE&I WATERMAIN REPLACEMENTS
          • 15 - WATER SDF FUND SUMMARY
          • 16 - WATER SDF ADMIN
          • 17 - WATER SDF SEWER CONSTRUCTION
          • 18 - WATER SDF- TREATMENT PLANT.
        • TAB Glossary
        • Glossary (revised - sent 11.28.18)
        • TAB Frequently Asked Questions
        • Frequently asked questions
    • BB20192020 backcover
  • Board of Commish.pdf
    • blank INTENTIONALLY.pdf
      • Blank Page
      • Blank Page
      • Blank Page
      • Blank Page
    • notes 2 pages 3 29 18.pdf
      • 0Note 1. Summary of Significant Accounting Policies
        • A. Reporting Entity
        • ArtsBridge Foundation, Inc. is a discretely presented component unit of the Cobb-Marietta Coliseum and Exhibit Hall Authority. Accordingly, it is also a component unit of Cobb County. The Foundation is a legally separate corporation organized pursuant...
      • 1B1B1B
      • 3B3B3B
      • Note 1. Summary of Significant Accounting Policies (Continued)
      • 4B4B4B
      • Note 1. Summary of Significant Accounting Policies (Continued)
      • 6B6B6B
      • Note 2. Budgetary Information
        • 60B58B56BA. Primary Government and Fiduciary Funds
      • Custodial credit risk – deposits and investments
        • 14B
        • 13B12B11B Georgia Fund I AAAf $ 254,749 26 days
        • Note 4. Restricted Assets
        • 5B14B1Note 5. Capital Assets
        • Note 6. Risk Management
        • 18B17B16
        • 9B1Note 7. Leases
        • 9B1Note 7. Leases (Continued)
        • Note 8. Short-Term Tax Anticipation Notes
        • 22B21B20B Note 8. Short-Term Tax Anticipation Notes (Continued)
        • 22B21B20BNote 9. Long-Term Debt
          • 60B58B56BA. Primary Government
            • B. Business-type Activities
        • Note 9. Long-Term Debt (Continued)
        • 28B27B25B
        • Note 9. Long-Term Debt (Continued)
        • 33B
        • Note 10. Fund Balance Determinations and Classifications
        • Note 10. Fund Balance Determinations and Classifications (Continued)
        • 34B34B32B
        • Note 10. Fund Balance Determinations and Classifications (Continued)
        • 35B34B32
        • Note 10. Fund Balance Determinations and Classifications (Continued)
        • 5B33BNote 11. Property Taxes
        • 38B36B34B Note 12. Tax Abatements
        • Note 13. Interfund Balances and Transfers
        • 39B36B34B
        • 41B39B37B
        • 42B40B38B
        • 43B41B39BNote 14. Contingent Liabilities
        • 44B42B40BNote 15. Deferred Compensation Plan
        • 45B43B41B Note 16. Due From Other Governments and Agencies
        • 45B43B41B Note 16. Due From Other Governments and Agencies (Continued)
        • Note 17. Other Post Employment Benefits
          • Plan Description and Provisions
        • Note 17. Other Post Employment Benefits (Continued)
          • Eligibility
        • 50B48B46BSummary of Significant Accounting Policies
        • Note 17. Other Post Employment Benefits (Continued)
          • Funding Policy
        • Note 17. Other Post Employment Benefits (Continued)
        • 49B47B45B
        • Note 17. Other Post Employment Benefits (Continued)
        • Note 17. Other Post Employment Benefits (Continued)
        • Note 17. Other Post Employment Benefits (Continued)
        • 51B49B47BNote 18. Employee Retirement System
        • 51B49B4
        • 55B53B51BNote 20. Capital Contributions
        • Note 21. Closure and Postclosure Care Costs
      • 7B7B7B
      • Note 23. Other Commitments
      • Note 24. Joint Ventures
      • 9B9B9BNote 25. Related Organization
      • 9B9B9BNote 26. Excess of Expenditure Over Appropriations
      • Note 27. Restatement