Assignment 1/Government and Not for Profit Accounting

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C A F R

COMPREHENSIVE ANNUAL FINANCIAL REPORT

COBB COUNTY, GEORGIA COMPREHENSIVE ANNUAL FINANCIAL REPORT

For the Fiscal Year Ended September 30, 2016

James Pehrson, CPA 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, 2016 ____________________________________________________________________________________________ ____________________________________________________________________________________________

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 Auditors’ Report....................................................................................................................1-3 Management’s Discussion and Analysis .................................................................................................4-16

Basic Financial Statements: Government-Wide Financial Statements:

Statement of Net Position..................................................................................................................... 17 Statement of Activities ......................................................................................................................... 18

Governmental Fund Financial Statements: Balance Sheet – Governmental Funds.................................................................................................. 19 Reconciliation of the Governmental Balance Sheet to the Statement of Net Position ........................ 20 Statement of Revenues, Expenditures and Changes in Fund Balances –

Governmental Funds ...................................................................................................................... 21 Reconciliation of the Statement of Revenues, Expenditures and

Changes in Fund Balances of Governmental Funds to the Statement of Activities................................................................................................................... 22

Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual (Budgetary Basis) – General Fund.................................................................. 23

Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual (Budgetary Basis) – Fire District Special Revenue Fund ............................... 24

Proprietary Fund Financial Statements: Statement of Net Position – Proprietary Funds ...............................................................................25-26 Statement of Revenues, Expenses and Changes in Fund Net Position –

Proprietary Funds........................................................................................................................... 27 Statement of Cash Flows – Proprietary Funds ................................................................................28-29

Fiduciary Fund Financial Statements: Statement of Fiduciary Net Position – Fiduciary Funds ...................................................................... 30 Statement of Changes in Fiduciary Net Position – Fiduciary Funds ................................................... 31

Notes to Financial Statements .........................................................................................................32-79

COBB COUNTY, GEORGIA COMPREHENSIVE ANNUAL FINANCIAL REPORT

TABLE OF CONTENTS

Required Supplemental Information: Schedule of Changes in Net Pension Liability and Related Ratios...................................................... 80 Schedule of Pension Contributions ...................................................................................................... 81 Schedule of Pension Investment Returns ............................................................................................. 82 Notes to Required Supplementary Information.................................................................................... 83 OPEB Trust Fund Schedule of Funding Progress ................................................................................ 84 OPEB Trust Fund Schedule of Employer Contributions ..................................................................... 85

Nonmajor Funds: Nonmajor Governmental Fund Descriptions ..................................................................................86-87 Combining Balance Sheet – All Nonmajor Governmental Funds ....................................................... 88 Combining Statement of Revenues, Expenditures and Changes in Fund Balances –

All Nonmajor Governmental Funds............................................................................................... 89 Combining Balance Sheet – Special Revenue Funds......................................................................90-91 Combining Statement of Revenues, Expenditures and Changes in Fund Balances –

Special Revenue Funds .............................................................................................................92-93 Schedule of Revenues, Expenditures and Changes in Fund Balance –

Budget and Actual – CMCEHA Debt Service Fund ..................................................................... 94 Schedule of Revenues, Expenditures and Changes in Fund Balance –

Budget and Actual - BOC Debt Service Fund ............................................................................... 95 Schedule of Revenues, Expenditures and Changes in Fund Balance –

Budget and Actual (Budgetary Basis) – Law Library ................................................................... 96 Schedule of Revenues, Expenditures and Changes in Fund Balance –

Budget and Actual – Community Services .................................................................................... 97 Schedule of Revenues, Expenditures and Changes in Fund Balance –

Budget and Actual – Hotel/Motel Tax .......................................................................................... 98 Schedule of Revenues, Expenditures and Changes in Fund Balance –

Budget and Actual (Budgetary Basis) – Emergency 911 .............................................................. 99 Schedule of Revenues, Expenditures and Changes in Fund Balance –

Budget and Actual (Budgetary Basis) – Parking Deck Facility .................................................. 100 Schedule of Revenues, Expenditures and Changes in Fund Balance –

Budget and Actual (Budgetary Basis) – 800 MHz ...................................................................... 101 Schedule of Revenues, Expenditures and Changes in Fund Balance –

Budget and Actual – Street Light District Fund .......................................................................... 102 Schedule of Revenues, Expenditures and Changes in Fund Balance –

Budget and Actual (Budgetary Basis) – Six Flags Special Service District................................ 103 Schedule of Revenues, Expenditures and Changes in Fund Balance –

Budget and Actual (Budgetary Basis) – Cumberland Special Service District 1 ........................ 104 Schedule of Revenues, Expenditures and Changes in Fund Balance –

Budget and Actual (Budgetary Basis) – Cumberland Special Service District 2 ........................ 105 Schedule of Revenues, Expenditures and Changes in Fund Balance –

Budget and Actual (Budgetary Basis) – CMCEHA .................................................................... 106 Combining Balance Sheet – Nonmajor Enterprise Funds...........................................................107-108 Combining Statement of Revenues, Expenses and Changes in Fund Net Position –

Nonmajor Enterprise Funds ......................................................................................................... 109 Combining Statement of Cash Flows – Nonmajor Enterprise Funds .........................................110-111

COBB COUNTY, GEORGIA COMPREHENSIVE ANNUAL FINANCIAL REPORT

TABLE OF CONTENTS

Combining Statement of Changes in Assets and Liabilities – Agency Funds .......................................................................................................................112-113

Supplemental Information: Schedule of Revenues, Expenditures and Changes in Fund Balance –

Budget and Actual (Budgetary Basis) – General Fund.........................................................114-120

STATISTICAL SECTION

Statistical Section Description .................................................................................................................. 121 Net Position by Component ...................................................................................................................... 122 Changes in Net Position.....................................................................................................................123-124 Fund Balances, Governmental Funds ....................................................................................................... 125 Changes in Fund Balance, Governmental Funds ...............................................................................126-127 Assessed Value and Actual Value ............................................................................................................ 128 Direct and Overlapping Property Tax Rates ............................................................................................. 129 Principal Property Tax Payers .................................................................................................................. 130 Property Tax Levies and Collections........................................................................................................ 131 Largest Retail Water System Accounts .................................................................................................... 132 Existing Water Rates ................................................................................................................................ 133 Existing Sewer Rates ................................................................................................................................ 134 Fire Sprinkler Service Charges ................................................................................................................. 135 Rate Comparison With Other Utilities...................................................................................................... 136 Wholesale Sewer Rates............................................................................................................................. 137 Ratios of General Bonded Debt Outstanding ........................................................................................... 138 Direct and Overlapping Governmental Activities Debt............................................................................ 139 Legal Debt Margin Information ................................................................................................................ 140 Ratios of Outstanding Debt by Type ........................................................................................................ 141 Revenue Bond Coverage........................................................................................................................... 142 Annual Debt Service Requirements.......................................................................................................... 143 Demographic and Economic Statistics ..................................................................................................... 144 Principal Employers.................................................................................................................................. 145 Building Permits and Construction ........................................................................................................... 146 Commercial and Savings Bank Deposits .................................................................................................. 147 Full Time Equivalent Cobb County Government Employees by Function .............................................. 148 Operating Indicators by Function ............................................................................................................. 149 Capital Asset Statistics by Function ......................................................................................................... 150 Existing Authority Water & Sewer Treatment System Capacities ........................................................... 151 Historical System Accounts ...................................................................................................................... 152

COBB COUNTY, GEORGIA COMPREHENSIVE ANNUAL FINANCIAL REPORT

TABLE OF CONTENTS

COMPLIANCE SECTION

Schedule of Projects Constructed with Special Sales Tax Proceeds ........................................................ 153 Water and Sewer Fund Comparative Statement of Revenues and Expenses ........................................... 154 Independent Auditors’ Report on Internal Controls Over Financial Reporting

and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ...............................................155-156

Independent Auditors’ Report on Compliance For Each Major Federal Program and Report on Internal Control Over Compliance in Accordance with the Uniform Guidance.....................................................................................157-158

Schedule of Findings and Questioned Costs......................................................................................159-160 Schedule of Expenditures of Federal Awards....................................................................................161-163 Notes to Schedule of Expenditures of Federal Awards ............................................................................ 164 Summary Schedule of Prior Year Findings ............................................................................................. 165

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: James D. Pehrson, CPA

Director and Comptroller [email protected]

OFFICE OF FINANCE & ECONOMIC DEVELOPMENT

www.cobbcounty.org/finance

100 Cherokee Street, Suite 400

Marietta, GA 30090 Phone: 770.528.1503 Fax: 770.528.1507

Cobb County…Expect the Best! Equal Opportunity Employer www.cobbcounty.org

March 14, 2017 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, 2016, 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, 2016. 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, 2016. 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 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 22% since 2000 when approximately 607,751 people resided in the County. Based on the Woods & Poole Economic 2016 Data Pamphlet, Cobb’s population is estimated to be 741,334. Cobb ranks third in the Atlanta region’s population growth. 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 741,334 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, four 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. The ArtsBridge Foundation was organized for the purpose of receiving contributions and making grants and distributions to the Authority to support the construction and operation of the Performing Arts Centre. 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 twentieth 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 497,160 within its boundaries and currently, there are approximately 30,000 licensed businesses. The County’s unemployment rate was 4.5% which is lower than the State of Georgia (5.1%) and the United States (4.9%).

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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 will be completed by Opening Day 2017. This partnership will bring an estimated 5,227 construction jobs, 3,141 ongoing ballpark jobs, as well as an increase in visitor spending, resulting in 873 jobs to the County. According to Woods & Poole Economics (2016 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 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

11%

6%10%

48%

Financial/Insurance/ Real Estate Government

Manufacturing

Miscellaneous

Construction

Transportation & Utilities

Wholesale

Retail

Sevices

Employment by Job Category Source: Woods & Poole, 2016

total: $43.8 million Transportation Projects; $2.5 million Parks Projects; $3.1 million Support Services Projects and $271.1 million for Public Safety Projects. Additionally, $25.3 million has been disbursed to the six municipalities within Cobb County. Total revenue generated for the SPLOST program since this SPLOST began is $104.9 million with expenditures totaling $83.2 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: $246.4 million Transportation Projects; $72.8 million Parks Projects; $16.9 million Support Services Projects and $11.3 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 $585.3 million with expenditures totaling $488.1 million. In September 2005, voters approved a one cent the Special Purpose Local Option Sales Tax (SPLOST) that ceased collections in December 2011. Since this SPLOST began, the improvements total: $485.3 million Transportation Projects; $195.9 million Public Safety Projects, and $124.2 million has been disbursed to the six municipalities within Cobb County. Total revenue generated for the SPLOST program since this SPLOST began is $876.2 million with expenditures totaling $805.4 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 $0 $0 0.00% 0.00%

Total General

Obligation Direct Debt

$10,490,000 $14.15 0.01% 0.03%

Total Primary Government Debt

$819,669,320 $1,105.69 0.98% 2.45%

Outstanding General Obligation Bonds at September 30, 2016 totaled $10,490,000. Cobb’s legal General Obligation Bond debt limitation by state law is 10% of the taxable digest or $3,341,064,769. Cobb County currently is utilizing 0.31% of this limitation with its $10,490,000 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; 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, 2016, is $138,736,509. 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, recently rebranded as CobbLinc, continues to meet its goals of providing the citizens of Cobb County with a safe, reliable, attractive and cost effective public transportation system. In 2016, CobbLinc riders took nearly 2.7 million trips. CobbLinc continues with the Breeze Fare Collection System which allows passengers to be able to easily transfer between CobbLinc and MARTA. In 2016 CobbLinc replaced 35 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 205 transportation projects that are underway or completed while the 2016 SPLOST program has 60 transportation projects that are underway or completed. SPLOST Transportation Project Highlights from 2016:

 Floyd Road Improvements $4.8M , estimated completion date October 2016  South Barrett Reliever, Phase 2 $5.4M, estimated completion date Fall 2017  Windy Hill Road Corridor Improvements,$15.2M, estimated completion date January

2017  Countywide Resurfacing Projects, contracts of $110.1M, 1,529 roads and 496 miles

SPLOST – Public Safety Public Safety enhancements include adding apparatus/vehicles to increase response capability through-out the county, as well as the renovation of existing facilities. SPLOST Public Safety Project Highlights from 2016:

 Upgraded 800Mhz radio system $13.4M  Purchased vehicles and equipment $10M

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 Park projects completed in 2016: District 1  Fair Oaks Park Tennis Center Building  Lost Mountain Park Upper Hub Restroom Building Renovation  J.T. Anderson Theater Roof Replacement and Interior Lighting System  Civic Center Renovation and Addition, Parking Lot Pavement and Lighting  Perry Parham Park Concession / Restroom Building  Big Shanty Park Field Renovation, Concession/Restroom Renovation

District 2  East Cobb Park Restroom Renovation  Fullers Park Groundwater Well – Exploration and Drilling

District 3  Shaw Park – Association Storage Building Roof Replacement  Bells Ferry Park Field Renovation  Eastern District Office Building at Noonday Creek Park  Sweat Mountain Park Field Renovation, Concession/Restroom Building, Dog Park Improvements, Pedestrian Bridge

District 4

 Wild Horse Creek Park Athletic Field Renovation, Maintenance Building, Concession/Restroom Building, Relocate and

Rebuild BMX Bicycle Track  Hurt Road Park Parking Lot and Access Roadway Repaving  Jim R. Miller Park New Restroom Buildings at Camp Road and at Arena/Plaza  Sweetwater Park New Tennis Center building  Heritage Park Boardwalk Renovation  Milford Park Athletic Field Renovation, New Concession/Restroom  Nickajack Park Athletic Field Renovation, New Concession/Restroom, Parking Lot Repaving  Powder Springs Park Athletic Field Renovation, New Concession/Restroom, New Maintenance Building

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.

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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, 2015. This represented the thirtieth 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. In addition, the County received its nineteenth consecutive GFOA Award for Distinguished Budget Presentation for its biennial operating budget which was presented in the FY 15/16 Biennial Budget document. The FY 17/18 Biennial Budget document is the twentieth consecutive submission for this award and is currently under review by GFOA. 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 FY16. 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 Interim Finance Director

volckw

Volckmann

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, 2015

Executive Director/CEO

gharris

Typewritten Text

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rev 7/08

Elected Office

Department Director

Board of Commissioners

County Manager

Water System Agency Director

Community Development

Agency Director

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

Transportation Agency Director

Police Public Library System

Parks & Recreation

Elections

Economic Development

Senior Services

UGA Extension

Service

Information Services

Property Mgt.

Purchasing

Appointed by the Board of Commissioners

KEY Elected Court 0ffice

Agency Director

County Manager’s Staff

For budget purposes only.

Appointed Court 0ffice

Liaison responsibilities only.

Executive Assistant to County Mgr

Fire & Emergency

Services

Tax Assessor

Human Resources

Internal Audit

Communica- tions

Animal Control

911 Emergency

Govt Service Centers

Cobb County Government Organizational Chart

Cobb EMA

Solid Waste

Finance

gharris

Typewritten Text

COBB COUNTY BOARD OF COMMISSIONERS

County Manager David Hankerson 770-528-2612 [email protected]

Assistant: Judy Humphries

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

Chairman Tim Lee 770-528-3305 [email protected] Assistants: Millie Rogers and Charlotte Collins

District One Commissioner Bob Weatherford 770-528-3313 [email protected] Assistant: Shannon Woody

District Two Commissioner Bob Ott

770-528-3316 [email protected]

Assistant: Thea Powell

District Three Commissioner JoAnn Birrell 770-528-3317

[email protected] Assistant: Inger Eberhart

District Four Commissioner Lisa Cupid 770-528-3311 [email protected] Assistant: Bianca Keaton

gharris

Typewritten Text

Cobb County, Georgia

County Manager David Hankerson

Finance Department

Director of Finance/Comptroller ................................James Pehrson, CPA

Assistant Comptroller .........................................................Bill Volckmann

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

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

Economic Development Division Manager ......................Michael Hughes

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

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

Treasury Division Manager .....................................................Buddy Tesar

Budget Administrator .............................................................. Susan Revill

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

[email protected]

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 | M a r i e t t a | 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 units, each major fund and the aggregate remaining fund information of Cobb County, Georgia, as of and for the year ended September 30, 2016, 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 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 units, each major fund, and the aggregate remaining fund information of Cobb County, Georgia, as of September 30, 2016, and the respective changes in financial position, and, where applicable, cash flows thereof and the respective budgetary comparison for the General Fund and the Fire District Special Revenue Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, the schedule of changes in net pension liability and related ratios, the schedule of pension contributions, schedule of pension investment returns, the OPEB trust fund schedule of funding progress, and the OPEB trust fund schedule of employer contributions, on pages 4 through 16 and pages 80 through 85 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.

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, the water and sewer fund comparative statement of revenues and expenses, and the schedule of expenditures of federal awards 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 schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the audit requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), 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, the water and sewer fund comparative statement of revenues and expenses, and the schedule of expenditures of federal awards 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, the water and sewer fund comparative statement of revenues and expenses, and the schedule of expenditures of federal awards 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 14, 2017, 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 14, 2017

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, 2016

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, 2016. 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 FY16 are as follows:

 The County’s combined net position totaled $4.7 billion. Of this amount, $295.9 million is restricted for renewal and expansion, debt service, and various projects and programs.

 Combined revenue totaled $1.03 billion of which governmental activities totaled $766.9 million and business-type activities totaled $261.1 million.

 Overall expenses totaled $858.1 million of which governmental activities totaled $640.5 million and business-type activities totaled $217.6 million.

 At the end of September 30, 2016, governmental activities expenses exceeded program revenues, resulting in the use of $382.6 million in general revenues (mostly taxes).

 At September 30, 2016, the County’s General Fund reported an unassigned fund balance of $52.9 million.

Overview of the Financial Statements

This is the twelfth 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

COBB COUNTY GOVERNMENT

Management’s Discussion and Analysis

For the Fiscal Year Ended September 30, 2016

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 of the 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 (SCAR), but also a legally separate Arts Bridge Foundation and a separate Board of Health for

which the government is financially accountable. Financial information for the ArtsBridge Foundation and

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.

COBB COUNTY GOVERNMENT

Management’s Discussion and Analysis

For the Fiscal Year Ended September 30, 2016

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 Service District, Cumberland

Special Service District 1, Cumberland Special Service District 2, CMCEHA and 800 MHz); Debt Service

Funds; and the Capital Projects Funds (Public Facilities, SPLOST, SCRA Construction, CMECHA

Stadium Construction and Stadium). 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, Stadium Construction Fund, CMCEHA Stadium Construction 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 19-24.

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 five 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 and the Performing Arts Centre Fund which are considered to be major funds of

the County. The basic proprietary fund financial statements can be found on pages 25-29 of this report.

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

COBB COUNTY GOVERNMENT

Management’s Discussion and Analysis

For the Fiscal Year Ended September 30, 2016

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 30-31 of this report.

Component Units

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

Cobb Redevelopment Authority (SCAR), the ArtsBridge Foundation and the Cobb County Board of

Health. The Cobb-Marietta Coliseum and Exhibit Hall Authority and the South Cobb Redevelopment

Authority (SCAR) are reported as blended component units, and the ArtsBridge Foundation and the Cobb

County Board of Health are discretely presented component units. 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 ArtsBridge Foundation and the Cobb

County Board of Health are as of and for the year ended September 30, 2016 and June 30, 2016,

respectively.

Budgetary Comparisons

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

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

District Special Revenue Fund and can be found on pages 23-24. 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 32-79 of this report.

COBB COUNTY GOVERNMENT

Management’s Discussion and Analysis

For the Fiscal Year Ended September 30, 2016

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, 2016.

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

fiscal years 2016 and 2015:

Cobb County, Georgia

Statement of Net Position

Activities Activities Activities Activities Total Total

Assets:

Current assets $ 524,786,454 $ 746,462,026 $ 122,550,062 $ 117,107,932 $ 647,336,516 $ 863,569,958

Other - noncurrent 9,024,844 8,209,455 893,821 800,551 9,918,665 9,010,006

Capital assets - net 3,796,272,915 3,428,936,371 1,722,849,486 1,711,972,639 5,519,122,401 5,140,909,010

Total assets $ 4,330,084,213 $ 4,183,607,852 $ 1,846,293,369 $ 1,829,881,122 $ 6,176,377,582 $ 6,013,488,974

Deferred Outflows of Resources

Deferred outflows related to pensions $ 104,768,479 $ 61,150,274 $ 9,908,052 $ 5,783,039 $ 114,676,531 $ 66,933,313

Deferred charges on bond refunding 1,298,373 1,584,973 - - 1,298,373 1,584,973

Total deferred outflows $ 106,066,852 $ 62,735,247 $ 9,908,052 $ 5,783,039 $ 115,974,904 $ 68,518,286

Total Assets and Deferred

Outflows of Resources $ 4,436,151,065 $ 4,246,343,099 $ 1,856,201,421 $ 1,835,664,161 $ 6,292,352,486 $ 6,082,007,260

Liabilities

Current liabilities $ 108,878,974 $ 97,650,098 $ 38,156,045 $ 33,013,733 $ 147,035,019 $ 130,663,831

Long-term liabilities (net) 1,052,106,892 994,046,240 369,735,147 393,959,407 1,421,842,039 1,388,005,647

Total liabilities $ 1,160,985,866 $ 1,091,696,338 $ 407,891,192 $ 426,973,140 $ 1,568,877,058 $ 1,518,669,478

Deferred Inflows of Resources

Deferred inflows related to pensions $ - $ 8,650,795 $ - $ 818,113 $ - $ 9,468,908

Deferred gain on bond refunding 457,095 523,300 1,359,556 1,553,779 1,816,651 2,077,079

Total deferred inflows $ 457,095 $ 9,174,095 $ 1,359,556 $ 2,371,892 $ 1,816,651 $ 11,545,987

Total Liabilities and Deferred

Inflows of Resources $ 1,161,442,961 $ 1,100,870,433 $ 409,250,748 $ 429,345,032 $ 1,570,693,709 $ 1,530,215,465

Net Position

Net investment in capital assets $ 3,318,300,453 $ 3,165,004,359 $ 1,420,350,770 $ 1,382,534,953 $ 4,738,651,223 $ 4,547,539,312

Restricted 261,643,812 296,312,716 34,265,586 26,807,385 295,909,398 323,120,101

Unrestricted (305,236,161) (315,844,409) (7,665,683) (3,023,209) (312,901,844) (318,867,618)

Total net position $ 3,274,708,104 $ 3,145,472,666 $ 1,446,950,673 $ 1,406,319,129 $ 4,721,658,777 $ 4,551,791,795

20152016

Governmental Business-type

2015 2015

Governmental

2016

Business-type

2016

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 $190.1

million (4.2%) in FY16.

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. At the end of the

current fiscal year, the County is able to report positive balances in all categories of net position for the

governmental activities.

COBB COUNTY GOVERNMENT

Management’s Discussion and Analysis

For the Fiscal Year Ended September 30, 2016

Changes in Net Position

Governmental and business-type activities increased the County’s net position by $169.9 million in FY16.

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

FY16 and FY15:

Activities Activities Activities Activities Total Total

Revenues:

Program Revenues:

Charges for Services $ 118,888,135 $ 112,212,668 $ 222,735,643 $ 215,460,445 $ 341,623,778 $ 327,673,113

Operating Grants & Contributions 19,455,937 22,416,730 3,443,307 - 22,899,244 22,416,730

Capital Grants & Contributions 119,580,091 41,017,800 34,058,991 17,684,800 153,639,082 58,702,600

General Revenues: - -

Property Taxes 296,940,107 301,401,010 - - 296,940,107 301,401,010

Other Taxes 199,555,237 195,808,570 - - 199,555,237 195,808,570

Other 12,516,515 16,099,912 818,160 356,581 13,334,675 16,456,493

Total Revenues $ 766,936,022 $ 688,956,690 $ 261,056,101 $ 233,501,826 $ 1,027,992,123 $ 922,458,516

Expenses:

General government $ 152,978,160 $ 138,660,902 $ - $ - $ 152,978,160 $ 138,660,902

Public safety 260,257,459 235,115,102 - - 260,257,459 235,115,102

Public works 129,004,776 131,167,118 - - 129,004,776 131,167,118

Health and welfare 6,717,051 6,519,036 - - 6,717,051 6,519,036

Culture and recreation 54,545,427 48,839,786 - - 54,545,427 48,839,786

Housing and development 16,113,070 18,376,639 - - 16,113,070 18,376,639

Interest on long-term debt 20,911,456 15,275,354 - - 20,911,456 15,275,354

Water and Sewer - - 182,120,179 173,041,157 182,120,179 173,041,157

Solid Waste - - 710,965 737,827 710,965 737,827

Transit - - 22,531,352 22,965,800 22,531,352 22,965,800

Cobblestone Golf Course - - 1,623,370 1,449,393 1,623,370 1,449,393

Galleria speciality shops - - 883,963 963,200 883,963 963,200

Performing arts centre - - 9,727,913 9,516,067 9,727,913 9,516,067

Total Expenses: $ 640,527,399 $ 593,953,937 $ 217,597,742 $ 208,673,444 $ 858,125,141 $ 802,627,381

Increase in net position before transfers $ 126,408,623 $ 95,002,753 $ 43,458,359 $ 24,828,382 $ 169,866,982 $ 119,831,135

Transfers 2,826,815 2,706,577 (2,826,815) (2,706,577) - -

Increase in net position $ 129,235,438 $ 97,709,330 $ 40,631,544 $ 22,121,805 $ 169,866,982 $ 119,831,135

Net Position - beginning $ 3,145,472,666 $ 3,047,763,336 $ 1,406,319,129 $ 1,384,197,324 $ 4,551,791,795 $ 4,431,960,660

Net Position - ending $ 3,274,708,104 $ 3,145,472,666 $ 1,446,950,673 $ 1,406,319,129 $ 4,721,658,777 $ 4,551,791,795

Governmental

2016 2016 2015

Governmental Business-type

2015 2015

Business-type

2016

COBB COUNTY GOVERNMENT

Management’s Discussion and Analysis

For the Fiscal Year Ended September 30, 2016

Governmental Activities

Governmental activities increased the County’s net position by $129.2 million thereby accounting for

76.1% of the total growth in net position.

15.5%

64.8%

2.5%

15.6%

1.6%

Revenues - Governmental Activities

FY 2016

Charges for Services

Taxes

Operating Grants &

Contributions

Capital Grants &

Contributions

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

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Expenses - Governmental Activities

FY2016

COBB COUNTY GOVERNMENT

Management’s Discussion and Analysis

For the Fiscal Year Ended September 30, 2016

Business-type Activities

Business-type activities increased the County’s net position by $40.6 million thereby accounting for 23.9%

of the total growth in net position.

Changes in Overall Net Position from Operating Results

Revenues

The County’s total revenue increased 11.4%, or $105.5 million, in FY16. The County’s increase in revenue

was caused by an increase of $14 million in Charges for Services and $94.9 million increase in Capital

Grants.

Expenses

The County’s total expenses increased 6.9%, or $55.5 million, in FY16. $46.6 million of this increase is

related to governmental activities and $8.9 million is related to business-type activities. The three functions

that had the largest increases over the prior year were Public safety ($25.1 million), General government

($14.3 million), and Water and sewer ($9.1 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 of 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 FY16 with strong fund balances in its governmental funds. The combined balance of all

the governmental funds is $386.3 million. Of this total, $46.1 million or 11.9% 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 $52.9 million, and total fund balance was $102.7 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 15.5% of total

general fund operating expenditures and total fund balance represents 30.0% of that same amount.

The fund balance of the General Fund decreased $813 thousand in FY16 for a total of $102.7 million. The

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

financial position. Revenues remained flat while operating expenditures increased approximately $11.2

million (3.4%). The largest increases were in Public Safety and Culture and Recreation.

Total transfers out of the General Fund of $26.9 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 Fund

The Fire Fund is used to account for the operation of the fire department within the County. $35.3 million

of fund balance is reported as restricted for construction and capital outlay while $19.8 thousand is

COBB COUNTY GOVERNMENT

Management’s Discussion and Analysis

For the Fiscal Year Ended September 30, 2016

nonspendable due to inventories and prepaid items. The fund balance increased by $2.5 million during the

current fiscal year mainly due to an increase in tax revenue. While total assets decreased by $11.4 million,

total liabilities decreased by $13.8 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 $186 million all of

which is restricted for specific construction projects. Expenditures exceeded revenues by $13.5 million. Of

the $186.6 million in expenditures, $27 million was spent on facility projects by the County’s Property

Management and Parks Divisions, $24.1 million for Public Safety, $96.6 million was spent on various DOT

safety and improvement road, bridge and sidewalk projects, and $4.1 million was spent on principal and

interest for capital leases. The remaining $34.9 million represents payments to the cities for their portion of

SPLOST proceeds.

Stadium Construction and CMCEHA Stadium Construction Funds

These capital projects funds account for the issuance of the Series 2015 Bonds which were issued to

finance, in part, the acquisition, construction, and equipping of the stadium project.

Non-major 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, and the CMCEHA Fund.

Non-major Special Revenue Funds’ operating revenue totaled $74 million for the fiscal year ended

September 30, 2016. Total operating revenues decreased by $1.9 million (2.5%). This decrease was

attributed primarily to the timing of receipts of grant funds.

Operating expenditures of the non-major Special Revenue Funds totaled $56.1 million for FY16. Total

Non-major Special Revenue Funds’ operating expenditures increased by $1.2 million (2.2%).

The fund balance of the nonmajor Special Revenue Funds totaled $34.5 million. This was a decrease of

$4.5 million from FY15.

BOC and CMCEHA 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 $17.7 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 $10.2 million. $17.0 million is non spendable,

restricted or committed for specific construction and improvement projects and capital acquisitions which

is offset by a negative unassigned fund balance of $6.8 million.

Operating expenditures exceeded operating revenues by $15.3 million for the non-major Capital Project

Funds which was partially offset by transfers in of $7.5 million. In the Capital Project Funds, the primary

COBB COUNTY GOVERNMENT

Management’s Discussion and Analysis

For the Fiscal Year Ended September 30, 2016

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

building construction and renovation projects, and stadium construction projects.

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 amounted to

$27.8 million. The fund had a change in net position of $29.9 million in FY16 mostly due to $17.8 million

in capital contributions.

Performing Arts Centre Fund

The Performing Arts Centre Fund ended the year with negative unrestricted net position of $7.5 million.

The fund had a negative change in net position of $798 thousand in FY16, which included depreciation

expense of $2.7 million.

Non-major Funds:

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 $179 thousand.

According to 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 FY16 landfill liability is $23.7 million.

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

course. It ended FY16 with a net income from operations before depreciation of $159 thousand. However,

overall change in net position (including depreciation, non-operating revenues and expenses) was $(250)

for FY16 due to renegotiations of capital leases. 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 FY16 with a change in net position of $11.6 million which was due

largely to grants received for the purchase of new transit buses. Net position totaled $52 million at the end

of the fiscal year.

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 $55.3 thousand (10.7%) from FY15 and total

operating expenses decreased by $26.7 thousand (3.5%). Net position totaled $3.5 million at the end of the

fiscal year.

COBB COUNTY GOVERNMENT

Management’s Discussion and Analysis

For the Fiscal Year Ended September 30, 2016

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 $12.3 million increase. The final budget is a result of increases in personal services ($3.9 million), operating expenditures ($5.2 million) and capital outlay ($3.0

million). The legislative departments recognized an overall $0.7 million increase in the final

budgets for personal service and operating expenditures. The judicial departments recognized an

overall $5.5 million increase in the final budgets for personal service, operating expenditures, and

capital outlays. The executive and administrative departments recognized an overall $6.0 million

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

Public Safety

 Public Safety had an overall $9.2 million increase. Personnel services increased $4.7 million due to increased positions. Operating expenditures increased by $3.1 million mainly due to increased

inmate medical and dental costs. Capital outlay increased $1.3 million primarily due to police

department vehicle replacements.

Public works:

 Public works had an overall $1.9 million increase. This increase is due mainly to an increase in operating expenditures of $1.3 million for roadway maintenance contracts.

Culture and recreation:

 Culture and recreation had an overall increase of $5.8 million. Personnel services increased $1.7 million due to increased library staff. There was an increase in operating expenditures of $1.7

million to provide increased landscaping and other grounds and maintenance services at the

various park locations. Capital outlay increased by $2.3 million for building and land

improvements.

The County’s final budget less reserves projected a loss of $20.0 million in the General Fund with the fund

reporting an actual decrease of $8.7 million. Overall revenues ended the year $2.8 million over budget

while expenditures ended the fiscal year $8.5 million under budget. Expenditure control was very

important in the FY16 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, 2016 amounts to $4.7 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.

COBB COUNTY GOVERNMENT

Management’s Discussion and Analysis

For the Fiscal Year Ended September 30, 2016

Cobb County's Capital Assets

(Net of Depreciation)

(in thousands)

2016 2015 2016 2015 2016 2015

Land $ 1,074,485 1,060,141 82,878$ 82,552$ 1,157,363$ 1,142,693$

Artwork - - 199 199 199 199

Buildings and structures 418,627 423,553 116,275 120,026 534,902 543,579

Improvements 18,550 17,103 - - 18,550 17,103

Sewerage Plants - - 487,059 500,915 487,059 500,915

Machinery and equipment 80,796 59,098 33,789 14,939 114,585 74,037

Infrastructure 1,565,460 1,551,913 598,518 608,521 2,163,978 2,160,434

Construction in progress 638,355 317,128 404,131 384,821 1,042,486 701,949

Total $ 3,796,273 3,428,936 1,722,849$ 1,711,973$ 5,519,122$ 5,140,909$

Total

Primary Government

Business-type

Activities

Governmental

Activities

The County’s total net increase in capital assets for the current fiscal year was 7.4%.

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

totaled approximately $73.2 million. Some of the major projects for FY16 consisted of the following: road

construction or improvements, pedestrian bridges, and sidewalks. 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 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 $10.0 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, 2016, Cobb County had a net of $1.4 billion in outstanding long-term debt, which

does not include interest expense. Of this amount, $10.5 million (net of bond premium) comprises general

obligation debt backed by the full faith and credit of the government and $639.7 million in revenue bonds

(net of bond premium).

Additional information on Cobb County’s long-term debt can be found in Note 8 of the Basic Financial

Statements section of this report.

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

For the twelfth 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 earned numerous honors from the

Georgia Association of Water Professionals including the 2016 Wastewater Collections Platinum Award

COBB COUNTY GOVERNMENT

Management’s Discussion and Analysis

For the Fiscal Year Ended September 30, 2016

for Outstanding Operation of a Wastewater Collection System in the category of Large Systems. Platinum

awards were also received for fifteen consecutive years of Complete and Consistent NPDES Permit

Compliance at Northwest Water Reclamation Facility, eleven consecutive years at Noonday Water

Reclamation Facility, eight consecutive years at South Cobb Water Reclamation Facility and six

consecutive years at R.L. Sutton Water Reclamation Facility. In October, 2016, the U.S. Environmental

Protection Agency also recognized the Water System as WaterSense Promotional Partner of the Year:

Large Utility for their extraordinary efforts in promoting WaterSense in 2015.

During the last twenty 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 2016 and we expect the

trend to continue in 2017. Tourism revenue showed an increase of 5.1% over the prior year. Additionally

the one percent sales tax (SPLOST) generated $138.8 million in tax revenue which is a $1.2 million

increase compared to FY15. Also, the value of commercial and residential building permits issued

increased by 27.3% from the previous year.

Many factors were taken into consideration when preparing the FY17 budget. The FY17 adopted budget

had a 9.26% increase compared to the FY16 adopted budget. The FY16 budget had significant budget

amendments throughout the year, and these tight controls carried forward into the FY17 budget process

with a few exceptions. As a result, most operating budgets remained the same in preparation for the FY17

budget. Significant adjustments were limited to personnel services, debt service, and transfers-out

categories. Personnel services were largely affected by changes in fringe benefits, mainly increases in

health premiums and pension contributions of $6.1 million and $1.4 million respectively. The debt services

category increased approximately $14.2 million to accommodate the payment of principal and interest on

the Cobb Marietta Coliseum Exhibit Hall Authority Revenue Bonds. Transfers-out were mainly affected by

the increase of the Transit Fund subsidy and DOT local share requirements for future grant awards.

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.

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.

COMPREHENSIVE ANNUAL FINANCIAL REPORT Return to Table of

Contents

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

BASIC FINANCIAL STATEMENTS

Cobb County

Board of

Health

Activities Activities Total June 30, 2016

Assets and Deferred Outflows of Resources

Assets

Cash and cash equivalents $ 45,200,591 $ 25,755,094 $ 70,955,685 $ 283,255 $ 1,707,025

Investments, at fair value 112,298,151 200,000 112,498,151 4,627,039 3,007,775

Receivables 192,866,370 24,834,442 217,700,812 904,038 416,283

Internal balances (26,277,251) 26,277,251 - - -

Due from component unit - 21,353 21,353 - -

Due from other governments and agencies 26,140,127 874,227 27,014,354 - 4,865,145

Due from others 41,212,831 - 41,212,831

Inventories 1,865,518 1,560,702 3,426,220 - 177,439

Prepaid items 1,055,759 113,149 1,168,908 21,796 -

Advance to component unit 1,614,931 - 1,614,931

Restricted cash and cash equivalents 128,809,427 42,913,844 171,723,271 - -

Other assets 9,024,844 893,821 9,918,665 - -

Capital assets not being depreciated 1,712,839,953 487,207,788 2,200,047,741 - -

Capital assets being depreciated, net 2,083,432,962 1,235,641,698 3,319,074,660 2,602 959,994

Total assets 4,330,084,213 1,846,293,369 6,176,377,582 5,838,730 11,133,661

Deferred Outflows of Resources

Deferred outflows related to pensions 104,768,479 9,908,052 114,676,531 - 2,153,600

Deferred charges on bond refunding 1,298,373 - - - -

Total Deferred Outflows of Resources 106,066,852 9,908,052 115,974,904 - 2,153,600

Total Assets and Deferred Outflows of Resources 4,436,151,065 1,856,201,421 6,292,352,486 5,838,730 13,287,261

Liabilities and Deferred Inflows of Resources

Liabilities

Accounts payable 73,618,537 20,029,923 93,648,460 18,571 217,619

Accrued payroll 4,602,375 490,588 5,092,963 - 610,378

Arbitrage liability - 54,882 54,882 - -

Due to primary government - - - 21,353 -

Due to others 864,124 13,516 877,640 - -

Due to other governments and agencies 7,915,458 57,231 7,972,689 - 692,867

Claims and judgments 14,429,604 - 14,429,604 - -

Customer deposits - 8,154,130 8,154,130 - -

Accrued interest payable 5,818,154 1,825,706 7,643,860 - -

Unearned revenue 1,630,722 7,530,069 9,160,791 50,000 -

Advance from primary government - - - 1,614,931 -

Noncurrent liabilities

Due within one year 34,345,768 23,479,630 57,825,398 - 695,655

Due in more than one year 1,017,761,124 346,255,517 1,364,016,641 - 14,786,265

Total liabilities 1,160,985,866 407,891,192 1,568,877,058 1,704,855 17,002,784

Deferred Inflows of Resources

Deferred Inflows Related to Pensions - - - - 1,285,183

Deferred gain on refunding 457,095 1,359,556 1,816,651 - -

Total Deferred Inflows of Resources 457,095 1,359,556 1,816,651 - 1,285,183

Total Liabilities and

Deferred Inflows of Resources 1,161,442,961 409,250,748 1,570,693,709 1,704,855 18,287,967

Net Position

Net investment in capital assets 3,318,300,453 1,420,350,770 4,738,651,223 2,602 959,994

Restricted for:

Renewal and expansion - 33,804,143 33,804,143 - -

Debt service 20,766,456 461,443 21,227,899 - -

Splost projects 175,879,567 - 175,879,567 - -

Completion of projects 35,285,044 - 35,285,044 - -

Special programs 29,712,745 - 29,712,745 36,572 -

Unrestricted (305,236,161) (7,665,683) (312,901,844) 4,094,701 (5,960,700)

Total Net Position $ 3,274,708,104 $ 1,446,950,673 $ 4,721,658,777 $ 4,133,875 $ (5,000,706)

Foundation

Cobb County, Georgia

Statement of Net Position

September 30, 2016

Component Unit

September 30, 2016

Primary Government

Governmental Business-type

ArtsBridge

See accompanying notes to financial statements. 17

Cobb County

Operating Board of

Charges for Grants and Health

Functions/Programs Services Contributions June 30, 2016

Primary Government

Governmental Activities:

General government $ 152,978,160 $ 44,005,094 $ 8,497,804 $ 17,418 $ (100,457,844) $ - $ (100,457,844) $ - $ -

Public safety 260,257,459 18,747,884 1,349,071 323,625 (239,836,879) - (239,836,879) - -

Public works 129,004,776 7,705,165 391,556 53,615,079 (67,292,976) - (67,292,976) - -

Health and welfare 6,717,051 328,014 2,134,219 - (4,254,818) - (4,254,818) - -

Culture and recreation 54,545,427 20,040,564 1,285,849 65,623,969 32,404,955 - 32,404,955 - -

Housing and development 16,113,070 28,061,414 5,797,438 - 17,745,782 - 17,745,782 - -

Interest on long-term debt 20,911,456 - - - (20,911,456) - (20,911,456) - -

Total governmental activities 640,527,399 118,888,135 19,455,937 119,580,091 (382,603,236) - (382,603,236) - -

Business-type Activities:

Water and Sewer 182,120,179 206,248,856 - 17,829,558 - 41,958,235 41,958,235 - -

Solid Waste 710,965 491,337 - - - (219,628) (219,628) - -

Transit 22,531,352 4,839,740 3,443,307 16,229,433 - 1,981,128 1,981,128 - -

Cobblestone Golf Course 1,623,370 1,702,848 - - - 79,478 79,478 - -

Galleria Specialty Shops 883,963 522,800 - - - (361,163) (361,163) - -

Performing Arts Centre 9,727,913 8,930,062 - - - (797,851) (797,851) - -

Total business-type activities 217,597,742 222,735,643 3,443,307 34,058,991 - 42,640,199 42,640,199 - -

Total primary government $ 858,125,141 $ 341,623,778 $ 22,899,244 $ 153,639,082 $ (382,603,236) $ 42,640,199 $ (339,963,037) $ - $ -

Component Units

ArtsBridge Foundation $ 642,162 $ 147,376 $ 568,292 $ - $ 73,506 $ -

Cobb County Board of Health 22,578,781 4,678,645 20,402,110 - - 2,501,974

Total component units $ 23,220,943 $ 4,826,021 $ 20,970,402 $ - $ 73,506 $ 2,501,974

General revenues:

Property taxes $ 296,940,107 $ - $ 296,940,107 $ - $ -

Sales taxes 138,778,010 - 138,778,010 - -

Insurance premium tax 26,709,770 - 26,709,770 - -

Alcoholic beverage tax 5,037,511 - 5,037,511 - -

Hotel/Motel tax 13,918,458 - 13,918,458 - -

Real estate transfer tax 2,372,019 - 2,372,019 - -

Miscellaneous taxes 12,739,469 - 12,739,469 - -

Miscellaneous 10,548,514 464,088 11,012,602 - -

Gain from sale of capital assets - 160,667 160,667 - -

Unrestricted investment earnings 1,968,001 193,405 2,161,406 (995) 9,174

Transfers 2,826,815 (2,826,815) - - -

Total general revenues and transfers 511,838,674 (2,008,655) 509,830,019 (995) 9,174

Change in net position 129,235,438 40,631,544 169,866,982 72,511 2,511,148

Net position beginning of year 3,145,472,666 1,406,319,129 4,551,791,795 4,061,364 (7,511,854)

Net position - end of year $ 3,274,708,104 $ 1,446,950,673 $ 4,721,658,777 $ 4,133,875 $ (5,000,706)

Expenses September 30, 2016Contributions Activities Activities Total

Capital Primary Government ArtsBridge

Grants and Governmental Business-type Foundation

Cobb County, Georgia

Statement of Activities

For the Fiscal Year Ended September 30, 2016

Net (Expense) Revenue and Changes in Net Position

Component Unit

Program Revenues

See accompanying notes to financial statements. 18

CMCEHA

Stadium Stadium Other Total

General Fire District Construction Construction SPLOST Governmental Governmental

Fund Fund Fund Fund Fund Funds Funds

Assets

Cash and cash equivalents $ 16,555,523 $ - $ - $ - $ - $ 1,047,609 $ 17,603,132

Restricted cash and cash equivalents - 286,028 3,049 3,062 81,612,244 46,905,044 128,809,427

Investments, at fair value - - - - 112,298,151 - 112,298,151

Receivables:

Taxes and penalties 124,278,296 52,262,909 - - - 9,587,352 186,128,557

Accrued interest - - - - 248,143 - 248,143

Other 1,309,330 253,523 - - 1,857,468 2,598,732 6,019,053

Due from other funds 487,097 50,254 - - - 8,030,864 8,568,215

Due from other governments and agencies 881,863 - - - 18,214,099 5,196,991 24,292,953

Due from others - - - 41,212,831 - - 41,212,831

Advances to component unit - - - - - 1,614,931 1,614,931

Advances to other funds 3,122,843 - - - - - 3,122,843

Inventories 1,796,933 14,122 - - - 54,463 1,865,518

Prepaid items 37,656 5,678 - - - 314,393 357,727

Total assets $ 148,469,541 $ 52,872,514 $ 3,049 $ 41,215,893 $ 214,230,105 $ 75,350,379 $ 532,141,481

Liabilities, Deferred Inflows of Resources,

and Fund Balances

Liabilities

Accounts payable $ 4,874,689 $ 1,483,012 $ - $ 41,212,831 $ 20,800,906 $ 4,575,554 $ 72,946,992

Accrued payroll 3,274,915 796,718 - - - 523,032 4,594,665

Due to other funds 31,586,376 13,378,232 - - - 936,701 45,901,309

Due to others 414,755 406 - - - 448,963 864,124

Due to other governments and agencies 190,626 - - - 7,452,968 271,864 7,915,458

Accrued interest payable 17,417 3,483 - - - 1,197,306 1,218,206

Matured bonds payable - - - - - 2,995,000 2,995,000

Unearned revenue 61,705 - - - - 1,569,017 1,630,722

Total liabilities 40,420,483 15,661,851 - 41,212,831 28,253,874 12,517,437 138,066,476

Deferred Inflows of Resources

Unavailable revenues 5,330,402 1,928,668 - - - 467,541 7,726,611

Total Liabilities and Deferred

Inflows of Resources 45,750,885 17,590,519 - 41,212,831 28,253,874 12,984,978 145,793,087

Fund Balances

Nonspendable:

Inventories and prepaid items 1,834,589 19,800 - - - 368,856 2,223,245

Advances 3,122,843 - - - - 1,614,931 4,737,774

Restricted for:

Debt Services - - - - - 23,761,456 23,761,456

Construction and capital outlay - 35,262,195 3,049 3,062 185,976,231 5,027,374 226,271,911

Special programs 2,232,590 - - - - 25,576,859 27,809,449

Committed for:

Construction and capital outlay - - - - - 11,922,632 11,922,632

Special programs 40,196,292 - - - - 907,289 41,103,581

Assigned for:

Special programs 2,420,753 - - - - 25,310 2,446,063

Unassigned 52,911,589 - - - - (6,839,306) 46,072,283

Total fund balance 102,718,656 35,281,995 3,049 3,062 185,976,231 62,365,401 386,348,394

Total liabilities, deferred inflows of

resources, and fund balances $ 148,469,541 $ 52,872,514 $ 3,049 $ 41,215,893 $ 214,230,105 $ 75,350,379 $ 532,141,481

Cobb County, Georgia

Balance Sheet

Governmental Funds

September 30, 2016

See accompanying notes to financial statements. 19

Total fund balances - governmental funds $ 386,348,394

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 3,796,195,777

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 7,726,611

Intergovernmental receivable 1,847,174

Net other post employment benefit assets 9,024,844

Unamortized bond insurance costs 105,400

Deferred outflows of resources related to pensions 104,768,479

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. 21,543,767

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 (496,017,373)

Accrued interest payable (4,599,948)

Unmatured bonds (485,105,000)

Unmatured revenue anticipation certificates (6,070,000)

Unamortized deferred charges and deferred loss on refunding 841,278

Unamortized bond premiums (3,463,648)

Unamortized revenue anticipation certificate premium (72,637)

Certificates of participation (8,850,000)

Capital leases payable (25,027,811)

Compensated absences (24,487,203)

Net position of governmental activities $ 3,274,708,104

Cobb County, Georgia

Governmental Funds

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

September 30, 2016

See accompanying notes to financial statements. 20

CMCEHA

Stadium Stadium Other Total

General Fire District Construction Construction SPLOST Governmental Governmental

Fund Fund Fund Fund Fund Funds Funds

Revenues:

Taxes $ 249,188,218 $ 81,134,618 $ - $ - $ 138,778,010 $ 27,897,205 $ 496,998,051

Licenses and permits 28,443,083 2,700 - - - - 28,445,783

Intergovernmental 3,583,815 - 2,500,000 - 22,900,630 20,457,081 49,441,526

Charges for services 40,628,867 2,109,961 - - - 35,351,039 78,089,867

Fines and forfeits 11,855,345 - - - - - 11,855,345

Contributions - - - 62,574,357 - - 62,574,357

Interest earned 464,386 82,856 3,049 175,161 1,232,778 118,343 2,076,573

Miscellaneous 6,966,314 32,878 - - 1,379,171 2,170,151 10,548,514

Total revenues 341,130,028 83,363,013 2,503,049 62,749,518 164,290,589 85,993,819 740,030,016

Expenditures:

Current:

General government 132,531,369 - - - - 7,915,432 140,446,801

Public safety 148,318,969 80,527,264 - - - 13,246,924 242,093,157

Public works 15,469,549 - - - - 5,676,208 21,145,757

Health and welfare 4,078,287 - - - - 3,114,505 7,192,792

Culture and recreation 33,007,853 - - - - 16,194,355 49,202,208

Housing and development 8,751,472 - - - - 5,984,543 14,736,015

Capital outlay - - - 270,662,016 145,876,522 17,663,112 434,201,650

Debt service:

Principal retirement - - - - 3,716,097 14,791,149 18,507,246

Interest and fiscal charges 17,544 7,181 - 12,250,510 410,708 5,896,130 18,582,073

Intergovernmental - - - - 36,614,195 - 36,614,195

Total expenditures 342,175,043 80,534,445 - 282,912,526 186,617,522 90,482,358 982,721,894

Excess (deficiency) of revenues

over (under) other expenditures (1,045,015) 2,828,568 2,503,049 (220,163,008) (22,326,933) (4,488,539) (242,691,878)

Other financing sources (uses):

Transfers in 27,117,424 - - 17,250,446 - 24,621,501 68,989,371

Transfers out (26,913,409) (378,232) (5,000,000) - - (33,455,392) (65,747,033)

Proceeds from sale of capital assets 28,126 8,822 - - - 12,213 49,161

Issuance of capital lease - - - - 8,800,000 - 8,800,000

Total other financing sources (uses) 232,141 (369,410) (5,000,000) 17,250,446 8,800,000 (8,821,678) 12,091,499

Net changes in fund balances (812,874) 2,459,158 (2,496,951) (202,912,562) (13,526,933) (13,310,217) (230,600,379)

Fund balances at beginning of year 103,531,530 32,822,837 2,500,000 202,915,624 199,503,164 75,675,618 616,948,773

Fund balances at end of year $ 102,718,656 $ 35,281,995 $ 3,049 $ 3,062 $ 185,976,231 $ 62,365,401 $ 386,348,394

Cobb County, Georgia

Statement of Revenues, Expenditures and Changes in Fund Balance

Governmental Funds

For the Fiscal Year Ended September 30, 2016

See accompanying notes to financial statements. 21

Amounts reported for governmental activities in the statement of activities are

different because:

Net change in fund balances - total governmental funds $ (230,600,379)

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 (99,891,661)

Capital outlays 440,892,493 341,000,832

The loss on disposition of capital assets is not reported in the fund statements. (2,268,375)

The net effect of various miscellaneous transactions involving capital assets

(donations) is to increase net position. 28,544,834

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 (502,707)

Intergovernmental revenues 1,411,448 908,741

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:

Bond principal payments 13,820,000

Premium on bonds 712,025

Capital lease proceeds (8,800,000)

Capital lease principal payments 4,021,442

Revenue anticipation certificates payments 245,000

Certificates of participation payments 420,000 10,418,467

The current years increase to the net other post employment benefits asset reduced the

net expense of other post employment benefits functions on the statement of activities. 930,389

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 (12,904,648)

Accrued compensated absences (3,169,667)

Amortization for bond deferred amounts and premiums (216,763)

Amortization of bond insurance costs (9,600)

Accrued interest expense (2,823,841) (19,124,519)

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 (574,552)

fund.

Changes in net position of governmental activities. $ 129,235,438

For the Fiscal Year Ended September 30, 2016

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. 22

Cobb County, Georgia

General Fund

Statement of Revenues, Expenditures and

Changes in Fund Balances - Budget and Actual (Budgetary Basis)

For the Fiscal Year Ended September 30, 2016

Variance with

Final Budget -

Positive

Original Final Actual (Negative)

Revenues:

Taxes $ 251,940,142 $ 251,966,611 $ 249,188,218 $ (2,778,393)

Licenses and permits 22,937,921 22,966,030 28,443,083 5,477,053

Intergovernmental 2,873,000 4,771,405 3,583,815 (1,187,590)

Charges for services 38,019,938 38,798,439 40,628,867 1,830,428

Fines and forfeits 9,618,000 12,682,240 11,855,345 (826,895)

Interest earned 470,100 470,100 464,386 (5,714)

Miscellaneous 3,836,100 7,131,291 6,966,314 (164,977)

Total revenues 329,695,201 338,786,116 341,130,028 2,343,912

Expenditures:

Current:

General government 125,930,079 138,165,546 135,476,384 2,689,162

Public safety 140,655,620 149,818,174 149,712,860 105,314

Public works 15,519,504 17,371,731 17,167,347 204,384

Health and welfare 4,068,344 4,339,537 4,103,646 235,891

Culture and recreation 31,407,050 37,183,985 34,816,449 2,367,536

Housing and development 8,563,207 9,133,896 8,754,270 379,626

Debt service:

Interest and fiscal charges 100,000 100,000 17,544 82,456

Total expenditures 326,243,804 356,112,869 350,048,500 6,064,369

Excess (deficiency) of revenues

over (under) other expenditures 3,451,397 (17,326,753) (8,918,472) 8,408,281

Other financing sources (uses):

Transfers in 21,400,209 26,711,908 27,117,424 405,516

Transfers out (15,846,931) (29,360,194) (26,913,409) 2,446,785

Proceeds from sale of capital assets - - 28,126 28,126

Total other financing sources (uses) 5,553,278 (2,648,286) 232,141 2,880,427

Net changes in fund balance $ 9,004,675 $ (19,975,039) (8,686,331) $ 11,288,708

Fund balances at beginning of year 103,531,530

Fund balances at end of year - budgetary basis 94,845,199

Reconciliation to GAAP basis:

Elimination of encumbrances outstanding at

end of year 7,873,457

Fund balance at end of year - GAAP basis $ 102,718,656

Budgeted Amounts

See accompanying notes to financial statements. 23

Cobb County, Georgia

Fire District Special Revenue Fund

Statement of Revenues, Expenditures and

Changes in Fund Balance - Budget and Actual (Budgetary Basis)

Variance with

Final Budget -

Positive

Original Final Actual (Negative)

Revenues:

Taxes $ 77,198,639 $ 77,198,639 $ 81,134,618 $ 3,935,979

Licenses and permits 10,000 10,000 2,700 (7,300)

Intergovernmental 20,000 20,000 - (20,000)

Charges for services 1,621,005 1,621,005 2,109,961 488,956

Interest earned 167,000 167,000 82,856 (84,144)

Miscellaneous 4,000 39,118 32,878 (6,240)

Total revenues 79,020,644 79,055,762 83,363,013 4,307,251

Expenditures:

Current:

Personal services 63,046,101 64,873,512 64,873,512 -

Operating expenditures 11,078,493 12,143,817 11,720,224 423,593

Capital outlay - 9,689,029 7,523,184 2,165,845

Debt service:

Interest and fiscal charges - 65,000 7,181 57,819

Total expenditures 74,124,594 86,771,358 84,124,101 2,647,257

Excess of revenues

over other expenditures 4,896,050 (7,715,596) (761,088) 6,954,508

Other financing sources (uses):

Transfers out (413,133) (544,953) (378,232) 166,721

Proceeds from sale of capital assets - - 8,822 8,822

Total other financing sources (uses) (413,133) (544,953) (369,410) 175,543

Net changes in fund balance $ 4,482,917 $ (8,260,549) (1,130,498) $ 7,130,051

Fund balance at beginning of year 32,822,837

Fund balance at end of year - budgetary basis 31,692,339

Reconciliation to GAAP basis:

Elimination of encumbrances outstanding at

end of year 3,589,656

Fund balance at end of year - GAAP basis $ 35,281,995

Budgeted Amounts

For the Fiscal Year Ended September 30, 2016

See accompanying notes to financial statements. 24

Cobb County, Georgia

Proprietary Funds

Statement of Net Position

September 30, 2016

Other

Water and Performing Arts Enterprise

Sewer Fund Centre Fund Funds

Assets and Deferred Outflows of Resources

Current assets:

Cash $ 22,314,741 $ 304,048 $ 3,136,305 $ 25,755,094 $ 27,597,459

Restricted cash and cash equivalents 40,775,851 2,079,042 58,951 42,913,844 -

Investments, at fair value 200,000 - - 200,000 -

Receivables:

Accounts, net 22,425,635 67,263 21,817 22,514,715 -

Accrued interest 20,941 - - 20,941 -

Other 2,139,142 - 159,644 2,298,786 470,617

Due from other funds 30,012,068 - 5,019 30,017,087 8,000,000

Due from component unit - 21,353 - 21,353 -

Due from other governments and agencies - - 874,227 874,227 -

Inventories 1,528,102 32,600 - 1,560,702 -

Prepaid items 3,036 106,841 3,272 113,149 592,632

Total current assets 119,419,516 2,611,147 4,259,235 126,289,898 36,660,708

Noncurrent assets:

Property, plant and equipment:

Capital assets not being depreciated 464,843,244 198,750 22,165,794 487,207,788 -

Capital assets being depreciated, net 1,105,805,906 82,317,038 47,518,754 1,235,641,698 77,138

Net property, plant and equipment 1,570,649,150 82,515,788 69,684,548 1,722,849,486 77,138

Other assets:

Net OPEB asset 893,821 - - 893,821 -

Total other assets 893,821 - - 893,821 -

Total noncurrent assets 1,571,542,971 82,515,788 69,684,548 1,723,743,307 77,138

Total assets 1,690,962,487 85,126,935 73,943,783 1,850,033,205 36,737,846

Deferred Outflows of Resources:

Deferred outflows of resources related to pension 9,575,490 - 332,562 9,908,052 -

Total assets and deferred outflows of resources $ 1,700,537,977 $ 85,126,935 $ 74,276,345 $ 1,859,941,257 $ 36,737,846

Continued on next page.

Total Fund

Business-type Activities - Enterprise Funds Governmental

Activities -

Internal Service

See accompanying notes to financial statements. 25

Cobb County, Georgia

Proprietary Funds

Statement of Net Position

Other

Water and Performing Arts Enterprise

Sewer Fund Centre Fund Funds

Liabilities and Deferred Inflows of Resources

Liabilities:

Current liabilities (payable from current assets):

Accounts payable $ 15,732,234 $ 376,704 $ 3,920,985 $ 20,029,923 $ 671,545

Accrued payroll 374,859 93,391 22,338 490,588 7,710

Arbitrage liability 54,882 - - 54,882 -

Due to other funds 543,157 34,392 39,444 616,993 67,000

Due to others 1,943 - 11,573 13,516 -

Customer deposits 6,577,228 1,517,951 58,951 8,154,130 -

Due to other governments and agencies 35,023 - 22,208 57,231 -

Accrued interest payable 1,726,058 99,648 - 1,825,706 -

Unearned revenues - 1,138,710 67,589 1,206,299 -

Current portion of revenue bonds 12,330,000 515,000 - 12,845,000 -

Current portion of note payable 9,053,125 - - 9,053,125 -

Current portion of compensated absences 1,161,979 27,457 23,640 1,213,076 18,220

Current portion of closure and post closure care - - 368,429 368,429 -

Estimated liability for claims and judgments - - - - 14,429,604

Total current liabilities 47,590,488 3,803,253 4,535,157 55,928,898 15,194,079

Long-term liabilities:

Revenue bonds (net of current portion and

bond premium) 139,439,486 6,405,000 - 145,844,486 -

Notes payable (net of current portion) 129,683,384 - - 129,683,384 -

Compensated absences (net of current portion) 468,109 6,864 34,858 509,831 -

Closure and post closure care (net of current portion) - - 23,308,992 23,308,992 -

Unearned Revenue - 6,323,770 - 6,323,770 -

Net pension liability 45,334,337 - 1,574,487 46,908,824 -

Advances from other funds - - 3,122,843 3,122,843 -

Total long-term liabilities 314,925,316 12,735,634 28,041,180 355,702,130 -

Total liabilities 362,515,804 16,538,887 32,576,337 411,631,028 15,194,079

Deferred Inflows of Resources:

Deferred gain on refunding 1,359,556 - - 1,359,556 -

Total liabilities and deferred inflows of resources 363,875,360 16,538,887 32,576,337 412,990,584 15,194,079

Net Position

Net investment in capital assets 1,275,089,275 75,595,788 69,665,707 1,420,350,770 77,138

Restricted for:

Capital projects 33,804,143 - - 33,804,143 -

Debt service - 461,443 - 461,443 - Unrestricted 27,769,199 (7,469,183) (27,965,699) (7,665,683) 21,466,629

Total net position $ 1,336,662,617 $ 68,588,048 $ 41,700,008 $ 1,446,950,673 $ 21,543,767

Continued from preceding page.

Internal Service

September 30, 2016

Total Fund

Business-type Activities - Enterprise Funds Governmental

Activities -

See accompanying notes to financial statements. 26

Performing Arts

Centre Fund

Operating revenues:

Charges for services $ 206,248,856 $ 8,930,062 $ 7,606,982 $ 222,785,900 $ 63,086,006

Miscellaneous income 386,544 - 77,544 464,088 -

Total operating revenues 206,635,400 8,930,062 7,684,526 223,249,988 63,086,006

Operating expenses:

Personnel services 30,388,430 3,262,141 1,412,872 35,063,443 552,772

Other operating expenses 104,471,589 3,546,089 20,333,798 128,351,476 4,549,162

Benefits and claims - - - - 58,198,314

Total operating expenses 134,860,019 6,808,230 21,746,670 163,414,919 63,300,248

Operating income (loss)

before depreciation 71,775,381 2,121,832 (14,062,144) 59,835,069 (214,242)

Less depreciation (42,221,543) (2,716,886) (4,053,237) (48,991,666) (11,376)

Operating income (loss) 29,553,838 (595,054) (18,115,381) 10,843,403 (225,618)

Nonoperating revenues (expenses):

Interest income 185,519 155 7,731 193,405 66,589

Interest and fiscal charges (5,653,337) (202,797) - (5,856,134) - Amortization 614,720 - - 614,720 -

Gain (loss) on sale of capital assets 229,941 - (69,274) 160,667 -

Total nonoperating revenues (expenses) (4,623,157) (202,642) (61,543) (4,887,342) 66,589

Net income (loss) before transfers

and capital contributions 24,930,681 (797,696) (18,176,924) 5,956,061 (159,029)

Capital contributions 17,829,558 - 19,672,740 37,502,298 -

Total capital contributions 17,829,558 - 19,672,740 37,502,298 -

Transfers:

Transfers in 24,683 - 11,981,814 12,006,497 -

Transfers out (12,857,526) - (1,975,786) (14,833,312) (415,523)

Total transfers (12,832,843) - 10,006,028 (2,826,815) (415,523)

Changes in net position 29,927,396 (797,696) 11,501,844 40,631,544 (574,552)

Total net position - beginning 1,306,735,221 69,385,744 30,198,164 1,406,319,129 22,118,319

Total net position - ending $ 1,336,662,617 $ 68,588,048 $ 41,700,008 $ 1,446,950,673 $ 21,543,767

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, 2016

See accompanying notes to financial statements. 27

Performing Arts

Centre Fund

Cash flows from (to) operating activities:

Cash received from customers $ 205,770,467 $ 7,582,783 $ 14,644,041 $ 227,997,291 $ 65,667,912

Cash payments for goods and services (106,833,473) (3,735,701) (20,052,567) (130,621,741) (4,100,884)

Cash payments for employee services

and fringe benefits (29,117,159) (3,287,163) (1,351,622) (33,755,944) (550,153)

Cash payments for benefits and claims - - - - (56,912,384)

Net cash from (to) operating activities 69,819,835 559,919 (6,760,148) 63,619,606 4,104,491

Cash flows from (to) noncapital financing activities:

Transfers in 24,683 - 11,981,814 12,006,497 -

Transfers out (12,857,526) - (1,975,786) (14,833,312) (415,523)

Net cash from (to) noncapital

financing activities (12,832,843) - 10,006,028 (2,826,815) (415,523)

Cash flows from (to) capital and

related financing activities:

Payments on capital leases - - (52,921) (52,921) -

Proceeds from sale of capital assets 232,630 (87,500) 9,166 154,296 -

Payments for capital acquisitions (29,261,432) - (20,172,402) (49,433,834) (70,629)

Bond principal payments (12,396,499) (495,000) - (12,891,499) -

Capital contributions 11,367,899 - 19,672,740 31,040,639 -

Payments on notes (8,797,230) - - (8,797,230) -

Payments on advances from other funds - - (40,000) (40,000) -

Interest and fiscal charges (9,362,966) (209,925) - (9,572,891) -

Net cash from (to) capital and related

financing activities (48,217,598) (792,425) (583,417) (49,593,440) (70,629)

Cash flows from investing activities:

Interest received 185,519 155 7,731 193,405 66,589

Net cash from investing activities 185,519 155 7,731 193,405 66,589

Net increase (decrease) in cash and

cash equivalents 8,954,913 (232,351) 2,670,194 11,392,756 3,684,928

Cash and cash equivalents at beginning of year 54,135,679 2,615,441 525,062 57,276,182 23,912,531

Cash and cash equivalents at end of year $ 63,090,592 $ 2,383,090 $ 3,195,256 $ 68,668,938 $ 27,597,459

Reconciliation to Statement of Net Position

Cash $ 22,314,741 $ 304,048 $ 3,136,305 $ 25,755,094 $ 27,597,459

Cash (included in restricted assets) 40,775,851 2,079,042 58,951 42,913,844 -

$ 63,090,592 $ 2,383,090 $ 3,195,256 $ 68,668,938 $ 27,597,459

Continued on next page.

Cobb County, Georgia

Proprietary Funds

Statement of Cash Flows

For the Fiscal Year Ended September 30, 2016

EnterpriseWater and

GovernmentalBusiness-type Activities - Enterprise Funds

Internal Service

Other

Fund

Activities -

TotalSewer Fund Funds

See accompanying notes to financial statements. 28

Business-type Activities - Enterprise Funds

Other

Performing Arts

Centre Fund Total

Reconciliation of operating income (loss)

to net cash from operating activities:

Operating income (loss) $ 29,553,838 $ (595,054) $ (18,115,381) $ 10,843,403 $ (225,618)

Adjustments to reconcile operating income

(loss) to net cash from operating activities:

Depreciation 42,221,543 2,716,886 4,053,237 48,991,666 11,376

Change in assets and liabilities:

Decrease (increase) in accounts receivables (1,753,934) (52,945) (21,817) (1,828,696) -

Decrease (increase) in accrued interest receivables (12,158) - - (12,158) -

Decrease (increase) in other receivables 218,798 - (9,698) 209,100 (468,094)

Decrease (increase) in due from other funds (12,068) - 5,637,291 5,625,223 3,050,000

Decrease (increase) in due from other governments 69,883 - 1,324,849 1,394,732 -

Decrease (increase) in due from component unit - 8,892 - 8,892 -

Decrease (increase) in inventories 420,498 (6,662) - 413,836 -

Decrease (increase) in net OPEB asset (93,270) - - (93,270) -

Decrease (increase) in deferred outflows of resources (3,986,558) - (138,455) (4,125,013) -

Decrease (increase) in prepaid items (1,021) (26,091) - (27,112) (17,202)

Increase (decrease) in accounts payable (3,251,718) 177,768 678,197 (2,395,753) 398,480

Increase (decrease) in long-term retainage payable - - - - -

Increase (decrease) in accrued payroll 155,050 (10,522) 7,435 151,963 3,183

Increase (decrease) in accrued compensated absences 30,049 (14,500) 12,850 28,399 (564)

Increase (decrease) in net pension liability 5,956,654 - 206,879 6,163,533 -

Increase (decrease) in due to other funds 543,157 (309,160) (27,188) 206,809 67,000

Increase (decrease) in due to others - (25,467) (11,610) (37,077) -

Increase (decrease) in deposits payable 624,546 (424,459) 2,680 202,767 -

Increase (decrease) in due to

other governments (72,800) - 10,261 (62,539) -

Increase (decrease) in estimated liability

for claims and judgments - - - - 1,285,930

Increase (decrease) in closure/postclosure care - - (368,429) (368,429) -

Increase (decrease) in deferred inflows of resources (790,654) - (27,459) (818,113) -

Increase (decrease) in unearned revenues - (878,767) 26,210 (852,557) -

Total adjustments 40,265,997 1,154,973 11,355,233 52,776,203 4,330,109

Net cash provided (used) by operating activities $ 69,819,835 $ 559,919 $ (6,760,148) $ 63,619,606 $ 4,104,491

Schedule of noncash capital and related financing activities:

Contribution of capital assets $ 6,461,659 $ - $ - $ 6,461,659 $ -

Total noncash capital and related financing activities $ 6,461,659 $ - $ - $ 6,461,659 $ -

Supplemental disclosure of cashflow information:

Interest capitalized $ (4,035,080) - - (4,035,080) -

Continued from preceding page.

Sewer Fund Funds

Water and Enterprise

Fund

Combining Statement of Cash Flows

Internal Service

Cobb County, Georgia

Activities -

Proprietary Funds

For the Fiscal Year Ended September 30, 2016

Governmental

See accompanying notes to financial statements. 29

Cobb County, Georgia

Fiduciary Funds

Statement of Fiduciary Net Position

September 30, 2016

System

Assets:

Cash and cash equivalents $ 125,637 $ - $ 139,041,417

Investments, at fair value

Common stock 155,328,500 - -

Mutual funds 332,082,532 97,319,149 -

Bond Corp. 40,912,988 - -

Government and agency bonds 8,018,102 - -

Money market 15,983,317 460,036

Receivables

Taxes and penalties - - 490,837,154

Accrued interest 631,827 - -

Total assets 553,082,903 97,779,185 $ 629,878,571

Liabilities:

Unremitted tax collections due

to other governments and agencies - - $ 83,826,756

Taxes payable to others upon

collection - - 490,837,154

Unremitted payroll tax and

withholdings - - 11,169,526

Funds held in trust for others - - 44,045,135

Total liabilities - - $ 629,878,571

Net position restricted for:

Pension benefits 553,082,903 -

Other post employment benefits - 97,779,185

Total net position $ 553,082,903 $ 97,779,185

Pension Trust Fund

Employee

Retirement

Agency Funds

OPEB Trust Fund

Other Post Employment Benefits 15 67-70

Property Taxes 10 63

Related Organization 23 79

Restricted Assets 4 47

Risk Management 6 50

Summary of Significant Accounting Policies 1 33-41

COBB COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS

September 30, 2016

0B0B0BNote 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 30

th . 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 30

th .

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, 2016, 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, 2016. 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.

COBB COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS

September 30, 2016

Note 1. Summary of Significant Accounting Policies (Continued)

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 to the provisions of the Georgia Nonprofit Corporation Code, and is qualified as a tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code. The Foundation was organized for the purpose of receiving contributions and making grants and distributions to the Authority to support the construction and operation of the Performing Arts Centre. The Foundation’s Board of Directors are appointed by and are subject to removal by the Authority. The fiscal year of the Foundation is September 30

th . Complete financial statements of the Foundation can be obtained

directly from their administrative offices at ArtsBridge Foundation, Inc., Two Galleria Parkway, Atlanta, Georgia 30339.

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.

COBB COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS

September 30, 2016

Note 1. Summary of Significant Accounting Policies (Continued)

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.

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.

COBB COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS

September 30, 2016

Note 1. Summary of Significant Accounting Policies (Continued)

3. The Stadium Construction Fund is used to account for the stadium construction costs prior to the issuance of the bonds.

4. The CMCEHA Stadium Construction Fund is used to account for the construction of the stadium and the issuance of the Cobb-Marietta Coliseum and Exhibit Hall Authority Series 2015 Revenue Bonds.

5. 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:

1. The Water and Sewer Fund accounts for the operating revenues and expenses of the water distribution system and sewage processing plants.

2. The Performing Arts Centre Fund accounts for the activities of the Performing Arts Centre.

2. Internal Service Fund:

The Claims Internal Service Fund provides self-funding for casualty, liability, medical and dental claims and workmen’s compensation.

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 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.

COBB COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS

September 30, 2016

Note 1. Summary of Significant Accounting Policies (Continued)

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 BOC Debt Service Fund, the CMCEHA 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 Special Revenue Fund. Project-length financial plans are adopted for the Capital Projects Funds. All encumbered appropriations are carried forward in the following year’s budget.

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 21 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."

COBB COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS

September 30, 2016

Note 1. Summary of Significant Accounting Policies (Continued)

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.

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 County’s governmental funds report restricted assets in the CMCEHA Stadium Construction Fund which are bonds proceeds held in a separate account until monies are spent according to bond covenants. The nonmajor special revenue funds’ restricted cash are restricted for the purposes of the fund and also for asset renewals and replacements. The SCRA Construction Fund’s restricted assets are restricted for construction and redevelopment in the Six Flags Special Purpose District. The CMCEHA Debt Service Fund’s and the BOC Debt Service Fund’s restricted assets are accumulated for future debt service requirements. The restricted assets for the County’s Stadium Construction, Fire District, and SPLOST funds includes cash restricted for construction.

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.”

COBB COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS

September 30, 2016

Note 1. Summary of Significant Accounting Policies (Continued)

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.

I. Prepaid Items

Payments made to vendors for services that will benefit periods beyond September 30, 2016 are recorded as prepaid items.

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 estimated fair market value at the date of donation.

4B4B4B

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

COBB COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS

September 30, 2016

Note 1. Summary of Significant Accounting Policies (Continued)

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.

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 9. 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.

COBB COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS

September 30, 2016

Note 1. Summary of Significant Accounting Policies (Continued)

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.

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 two items that qualify for reporting in this category. They are the deferred charge on refunding reported in the government-wide statement of net position and the deferred outflows of resources relating to pension 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 two 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 and the deferred inflows of resources relating to pension 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.

6B6B6BNote 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.

COBB COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS

September 30, 2016

Note 2. Budgetary Information (Continued)

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:

From overtime and part-time to operating and capital or between overtime

and part-time.

Within operating expenditures in a department.

Approval Required

Budget Adminis trator

No budget transfers are to be made between the regular s alaries 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 s alaries 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 Trans fer

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, Cumberland Special Service District, 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, Streetlight District, 800 MHz, Six Flags Special Purpose District, Cumberland Special Service District 1, Cumberland Special Service District 2, CMCEHA 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 of the year in the CMCEHA Debt Service Fund, BOC Debt Service Fund, Community Service Fund, Hotel Motel Fund, 800MHz Fund, Six Flags Special Service District, Cumberland Special Service District 1, Cumberland Special Service District 2, and CMCEHA Fund, the budgets for these funds are presented on a GAAP basis.

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.

COBB COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS

September 30, 2016

Note 2. Budgetary Information (Continued)

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:

$ (8,686,331) $ (1,130,498) $ (3,993,481) 7,873,457 3,589,656 74,243

- - (624,543) $ (812,874) $ 2,459,158 $ (4,543,781)

$ 94,845,199 $ 31,692,339 $ 32,791,698 7,873,457 3,589,656 74,243

- - 1,593,463 $ 102,718,656 $ 35,281,995 $ 34,459,404

Budgetary Basis Encumbrances 9/30/16 Grant-length Plans GAAP Basis

Fund Fund Revenue Funds

Fund Balances at End of Year General Fire Nonmajor Special

Budgetary Basis Encumbrances 9/30/16 Grant-length Plans GAAP Basis

Fund Fund Revenue Funds

Excess (Deficiency) of Revenues and Other Sources Over

Expenditures and Other Uses General Fire Nonmajor Special

Note 3. Cash and Cash Equivalents and Investments

PRIMARY GOVERNMENT AND FIDUCIARY FUNDS:

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 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.

COBB COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS

September 30, 2016

Note 3. Cash and Cash Equivalents and Investments (Continued)

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 has no formal policy, but reduces its exposure to custodial credit risk by requiring deposits and investments to be collateralized in accordance with State law. State statutes require all deposits and investments (other than federal or state government instruments) to be collateralized by depository insurance, obligations of the U.S. government, or bonds of public authorities, counties or municipalities. As of September 30, 2016, $457,046 of the County’s public deposits were exposed to custodial credit risk and were uncollateralized. Subsequent to year end, these funds were 110% collateralized so that none of the public deposits were exposed to custodial credit risk.

Investments are made in accordance with state law and the County’s Investment Policy that requires that bank balances be 110% collateralized and that all investments be acquired on a “delivery vs. payment” basis, thereby providing maximum protection to the County.

As of September 30, 2016, 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 $ 158,232,065 158,232,065$ -$ -$ -$

U.S. Agencies AAA 103,697,963 41,647,902 62,050,061 - -

Money Market Mutual Funds 8,800,188 8,800,188 - - -

Total Primary Government (non-fiduciary) $ 270,730,216 $ 208,680,155 $ 62,050,061 $ - $ -

FIDUCIARY FUNDS

Pension Trust Fund:

Common Stocks $ 155,328,500 n/a n/a n/a n/a

Mutual Funds 332,082,532 332,082,532 - - -

Bond Corp. AAA 1,129,735 - - 1,129,735 -

AA 9,779,921 2,204,270 4,423,835 2,314,034 837,782

A 22,400,176 3,858,017 9,900,739 3,522,023 5,119,397

BBB 7,603,156 677,404 2,984,993 1,310,215 2,630,544

Government and Agency Bonds Not Rated 8,018,102 1,500,765 1,354,599 850,193 4,312,545

Georgia Fund I AAA 125,637 125,637 - - -

Money Market 15,983,317 15,983,317 - - -

Total Pension Trust Fund $ 552,451,076 $ 356,431,942 $ 18,664,166 $ 9,126,200 $ 12,900,268

OPEB Trust Fund:

Mutual Funds $ 97,319,149 $ 97,319,149 -$ -$ -$

Money Market 460,036 460,036 - - -

Total OPEB Trust Fund $ 97,779,185 $ 97,779,185 $ - $ - $ -

Investment Maturities (in Years)

COBB COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS

September 30, 2016

Note 3. Cash and Cash Equivalents and Investments (Continued)

Investments of the primary government and fiduciary funds include $158,232,065 and $125,637 grouped in cash and cash equivalents and exclude $2,200,000 of nonnegotiable certificates of deposits.

Credit Risk – Investments

As of September 30, 2016 the County’s investment in U.S. Agencies that are implicitly guaranteed were as follows: Federal National Mortgage Association $17,576,583, Federal Home Loan Bank $36,300,051, Federal Home Loan Mortgage Corporation $28,495,756, Federal Farm Credit Banks $10,795,468 and United States Treasury $7,033,629. 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.

Discretely Presented Component units

A. Cobb County Board of Health

Custodial credit risk is the risk that in the event of a bank failure, the Board’s deposits may not be returned to it. The Board limits its exposure to custodial credit risk by requiring deposits to be collateralized at 110% in accordance with state law. As of June 30, 2016, the Board was not exposed to custodial credit risk.

The following is a summary of the Board’s investments at June 30, 2016: Weighted

Fair Average UUU Description UUU UUU Rating UUU UUU Value UUU UUU Maturity

13B12B11B Georgia Fund I AAAf $ 6,321 42 days Money Market - $3,001,454 n/a

B. ArtsBridge Foundation

The ArtsBridge Foundation, Inc. maintains deposits which are not public funds, but are subject to F.D.I.C coverage. As of September 30, 2016, the Foundation’s deposits in the amount of $35,915 were in excess of federal deposit insurance and subject to custodial credit risk.

In fiscal year 2016, the County adopted GASB Statement No. 72 (GASB 72), Fair Value Measurement and Application. GASB 72 was issued to address accounting and financial reporting issues related to fair value measurements.

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:

COBB COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS

September 30, 2016

Note 3. Cash and Cash Equivalents and Investments (Continued)

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.

The County’s recurring fair value measurements as of September 30, 2016 are as follows:

13B12B11B

14B

Level 1 Level 2 Level 3

PRIMARY GOVERNMENT

Georgia Fund 1 158,232,065$ 158,232,065$ -$ -$

US Agencies 103,697,963 - 103,697,963 -

Money Market Mutual Funds 8,800,188 8,800,188 - -

Total Primary Government (non-fiduciary) 270,730,216$ 167,032,253$ 103,697,963$ -$

FIDUCIARY FUNDS

Pension Trust Fund:

Common Stocks 155,328,500$ 155,328,500$ -$ -$

Mutual Funds 332,082,532 332,082,532

Bond Corp. 40,912,988 - 40,912,988 -

Government and Agency Bonds 8,018,102 - 8,018,102 -

Georgia Fund I 125,637 125,637 - -

Money Market 15,983,317 15,983,317 - -

Total Pension Trust Fund 552,451,076$ 503,519,986$ 48,931,090$ -$

OPEB Trust Fund:

Mutual Funds 97,319,149$ 97,319,149$ -$ -$

Money Market 460,036 460,036 - -

Total Pension Trust Fund 97,779,185$ 97,779,185$ -$ -$

Fair Value Measurement Using

COBB COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS

September 30, 2016

Note 4. Restricted Assets

Restricted assets at September 30, 2016 are as follows:

Governmental Funds Stadium Construction Fund:

Restricted for construction 3,049$ SPLOST Fund:

Restricted for construction 81,612,244 Fire District Fund:

Restricted for construction 286,028 CMCEHA Stadium Construction Fund:

Restricted for construction 3,062 SCRA Construction Fund:

Restricted for construction 5,041,303 Debt Service Funds:

Restricted for debt service 17,126,292 Nonmajor Special Revenue Funds:

Restricted for renewal and expansion 15,960,683 Restricted for debt service 1,701,477 Restricted for special programs 7,075,289

Total governmental activities 128,809,427$

Enterprise Funds Water and Sewer Fund:

Customer deposits 6,577,228$ Unspent bond proceeds 394,480 Restricted for renewal and expansion 33,804,143

Galleria Mall: Security deposits 58,951

Performing Arts Centre: Ticket sales deposits 1,463,244 Restricted for debt service 615,798

Total enterprise funds 42,913,844$

COBB COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS

September 30, 2016

5B14B13BNote 5. Capital Assets

Capital asset activity for the year ended September 30, 2016 was as follows:

Primary Government:

Governmental activities:

Capital assets, not being depreciated:

Land $ 1,060,140,731 $ 15,260,544 $ (916,245) $ 1,074,485,030

Construction in progress 317,128,266 394,456,978 (73,230,321) 638,354,923

Total capital assets, not being depreciated $ 1,377,268,997 $ 409,717,522 $ (74,146,566) $ 1,712,839,953

Capital assets, being depreciated:

Buildings $ 586,941,790 $ 9,342,399 (2,089,175) $ 594,195,014

Improvements other than buildings 38,201,161 3,342,453 (7,988) 41,535,626

Machinery and equipment 294,247,892 39,158,353 (4,991,578) 328,414,667

Infrastructure 2,671,304,980 81,177,550 - 2,752,482,530

Total capital assets, being depreciated $ 3,590,695,823 $ 133,020,755 $ (7,088,741) $ 3,716,627,837

Less accumulated depreciation for:

Buildings $ (163,388,393) $ (12,980,896) 801,408 $ (175,567,881)

Improvements other than buildings (21,097,983) (1,895,759) 7,988 (22,985,754)

Machinery and equipment (235,149,894) (17,396,624) 4,927,215 (247,619,303)

Infrastructure (1,119,392,179) (67,629,758) - (1,187,021,937)

Total accumulated depreciation $ (1,539,028,449) $ (99,903,037) $ 5,736,611 $ (1,633,194,875)

Total capital assets, being depreciated, net 2,051,667,374 33,117,718 (1,352,130) 2,083,432,962

Governmental activities capital assets, net $ 3,428,936,371 $ 442,835,240 $ (75,498,696) $ 3,796,272,915

Beginning Balance

Ending Increases Decreases Balance

COBB COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS

September 30, 2016

16B15B14BNote 5. Capital Assets (Continued)

Ending

Increases Decreases Balance Business-type activities:

Capital assets, not being depreciated:

Land and improvements $ 82,551,500 $ 326,303 - $ 82,877,803

Artwork 198,750 - - 198,750

Construction in progress 384,821,053 29,352,532 (10,042,350) 404,131,235

Total capital assets, not being depreciated $ 467,571,303 $ 29,678,835 $ (10,042,350) $ 487,207,788

Capital assets, being depreciated:

Buildings and structures $ 158,289,239 $ 29,400 - $ 158,318,639

Sewerage plants 835,402,010 5,191,988 - 840,593,998

Machinery and equipment 93,157,587 23,845,490 (1,519,252) 115,483,825

Infrastructure:

Sewer lines 552,516,448 5,611,473 - 558,127,921

Water lines and meters 457,008,166 5,700,549 - 462,708,715

Total capital assets, being depreciated $ 2,096,373,450 $ 40,378,900 $ (1,519,252) $ 2,135,233,098

Less accumulated depreciation for:

Buildings and structures $ (38,262,743) $ (3,780,759) - $ (42,043,502)

Sewerage plants (334,486,566) (19,048,411) - (353,534,977)

Machinery and equipment (78,219,071) (4,847,710) 1,372,380 (81,694,401) Infrastructure:

Sewer lines (215,741,274) (10,644,901) - (226,386,175)

Water lines and meters (185,262,460) (10,669,885) - (195,932,345)

Total accumulated depreciation $ (851,972,114) $ (48,991,666) $ 1,372,380 $ (899,591,400)

Total capital assets, being depreciated, net 1,244,401,336 (8,612,766) - 1,235,641,698

Business-type activities capital assets, net $ 1,711,972,639 $ 21,066,069 $ (10,189,222) $ 1,722,849,486

Beginning

Balance

Depreciation expense was charged to functions/programs of the primary government as follows:

Governmental activities: General government $ 7,668,324 Public safety 15,464,472 Public works 69,434,258 Health and welfare 70,221 Culture and recreation 6,229,687 Housing and development 1,024,699 Capital assets held by the government's internal service fund are charged to the various function based on their usage of the assets 11,376

Total depreciation expense - governmental activities $ 99,903,037

Business-type activities: Water and Sewer $ 42,221,543 Performing Arts Centre 2,716,886 Galleria Specialty Shops 188,870 Solid Waste 398,954 Golf Course 79,542 Transit System 3,385,871 Total depreciation expense - business-type activities $ 48,991,666

COBB COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS

September 30, 2016

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 $10,000,000 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 $13,143,674 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.

18B17B16

September 30 2007 $ 19,481,501 $ 38,230,339 $ 43,648,895 $ 14,062,945 2008 14,062,945 38,284,749 38,820,784 13,526,910 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

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.

COBB COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS

September 30, 2016

9B1Note 7. Leases (Continued)

The assets acquired through capital leases are as follows:

Total Total Governmental Business-type

Activities Activities Land $ 3,584,101 $ - Building 2,928,867 - Machinery and equipment 13,967,163 - Less: Accumulated depreciation (6,941,301) -

Total $ 13,538,830 $ -

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, 2016:

Total Governmental

Activities

2017 6,029,726$ 2018 5,980,709 2019 5,965,727 2020 5,965,727 2021 1,893,439

Total minimum lease payments 25,835,328$ Less amounts representing interest 807,517 Present value of future minimum lease payments 25,027,811$

In April, 2012, a lease agreement was entered into with Dell Financial Services to finance the replacement of up to 84 personal computers in the third quarter of FY12. The lease agreement is for 48 months. The lease agreement qualifies as a capital lease and has been recorded in the Public Facilities Fund.

In July, 2012, a lease agreement was entered into with Dell Financial Services to finance the replacement of up to 639 personal computers in the third quarter of FY12. The lease agreement is for 48 months. The lease agreement qualifies as a capital lease and has been recorded in the Public Facilities Fund.

In October, 2012, a lease agreement was entered into with Dell Financial Services to finance the replacement of up to 210 personal computers in the first quarter of FY13. The lease agreement is for 48 months. The lease agreement qualifies as a capital lease and has been recorded in the Public Facilities Fund.

In December, 2012, a lease agreement was entered into with Dell Financial Services to finance the replacement of up to 155 personal computers in the second quarter of FY13. The lease agreement is for

COBB COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS

September 30, 2016

48 months. The lease agreement qualifies as a capital lease and has been recorded in the Public Facilities Fund.

In July, 2012, a lease agreement was entered into with John Deere Financial to finance the purchase of nine lawn mowers and associated lawn equipment. The lease agreement is for 48 months. The lease agreement qualifies as a capital lease and has been recorded in the Golf Course Fund.

In April, 2014, a lease agreement was entered into with Dell Financial Services to finance the replacement of up to 106 personal computers in the second quarter of FY14. The lease agreement is for 48 months. The lease agreement qualifies as a capital lease and has been recorded in the Public Facilities Fund.

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.

22B21B20BNote 8. Long-Term Debt

60B58B56BA. Primary Government

Bonds payable at September 30, 2016 are comprised of the following individual issues:

1. General Obligation Bonds

$15,000,000 2008 Park serial bonds due in annual installments of $1,690,000 to $2,185,000 through January 1, 2018; interest at 2.42 to 3.63 percent ($4,160,000 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 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.

$25,000,000 2007 Park serial bonds due in annual installments of $3,060,000 to $4,130,000 through January 1, 2017; interest at 4.25 to 5.00 percent ($4,130,000 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 2007 Bonds remain outstanding and to be used as park land in perpetuity, and paying the costs of the issuance of the Series 2007 Bonds.

$18,345,000 2005 refunding serial bonds due in annual installments of $100,000 to $2,200,000 through January 1, 2017; interest at 3.00 to 5.00 percent ($2,200,000 outstanding). The Bonds were issued for the purpose of advance refunding, defeasing and optionally redeeming the County’s outstanding Park and Recreation Bonds, Series 1996 and paying the cost of issuance of the Series 2005 Bonds.

2. Revenue Bonds

A. Governmental Activities

$47,965,000 1993 serial bonds due in annual installments of $150,000 to $3,445,000 through October 1, 2026; interest at 5.50 to 5.625 percent ($29,280,000 outstanding). The

COBB COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS

September 30, 2016

Note 8. 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.

$2,120,000 2005 serial bonds due in annual installments of $20,000 to $990,000 through October 1, 2016; interest at 5.25 to 5.50 percent ($990,000 outstanding). The Bonds were issued to refund a portion of the series 1999 bonds.

$13,255,000 2005 serial bonds, all of which was outstanding at September 30, 2016, that are 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 $730,000 to $1,130,000 through July 1, 2026; interest at 3.0 to 4.0 percent ($9,530,000 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.

$376,600,000 2015 serial bonds, all of which was outstanding at September 30, 2016. The bonds are due in annual installments of $3,690,000 to $21,270,000 through January 1, 2047; interest at 1.0 to 3.25 percent. 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 $370,000 to $705,000 through July 1, 2035; interest at 3.0 to 4.0 percent ($9,630,000 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.

$41,635,000 2013 refunding serial bonds due in annual installments of $1,730,000 to $4,155,000 through January 1, 2029; interest at 3.0 to 5.00 percent ($38,325,000 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.

B. Business-type Activities

$126,570,000 2009 serial bonds due in annual installments of $3,640,000 to $9,350,000 through July 1, 2029; interest at 3.00 to 4.25 percent ($94,665,000 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 $6,970,000 to $7,800,000 through July 1, 2023; interest at 2.15 percent ($51,300,000 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 $495,000 to $760,000 through January 1, 2027, originally with interest at a fixed rate of 3.99%, which

COBB COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS

September 30, 2016

Note 8. Long-Term Debt (Continued)

was reduced to 2.88% effective June 1, 2012 ($6,920,000 outstanding). The Bonds were issued to provide additional financing for the construction, renovation, equipping, and other such activities for the Performing Arts Centre.

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 $17,603,337 and $72,805,561 respectively. The total principal and interest remaining to be paid on the bonds as of September 30, 2016 was $145,965,000 and $36,526,609 respectively.

The annual requirements to amortize all General Obligation and Revenue bonds outstanding at September 30, 2016 including interest payments of $376,135,790 are as follows:

General Obligation Bonds Year

Ending

September Principal Interest 2017 $ 8,305,000 $ 257,118 2018 2,185,000 35,506

$ 10,490,000 $ 292,624

Governmental Activities

Year

Ending

September Principal Interest 2017 $ 9,720,000 $ 19,757,948 $ 12,845,000 $ 5,560,080 2018 13,795,000 19,418,609 13,260,000 5,151,085 2019 14,270,000 18,997,327 13,705,000 4,727,264 2020 14,820,000 18,507,756 14,165,000 4,287,620 2021 15,425,000 17,968,617 14,670,000 3,800,247

2022-2026 87,635,000 80,192,112 56,555,000 11,853,656 2027-2031 70,320,000 63,501,327 27,685,000 2,320,257 2032-2036 65,110,000 50,224,110 - - 2037-2041 78,035,000 34,387,425 - - 2042-2046 97,485,000 14,940,338 - -

2047 10,995,000 247,388 - - $ 477,610,000 $ 338,142,957 $ 152,885,000 $ 37,700,209

Governmental Activities Business-Type Activities Revenue BondsRevenue Bonds

Principal Interest

The annual requirements to amortize all Water and Sewer Revenue Bonds outstanding at September 30, 2016 are as follows:

COBB COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS

September 30, 2016

Note 8. Long-Term Debt (Continued)

Principal Interest Total 2017 $ 12,330,000 $ 5,368,200 $ 17,698,200 2018 12,725,000 4,974,325 17,699,325 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

2022-2026 53,175,000 11,493,368 64,668,368 2027-2031 26,925,000 2,309,313 29,234,313

$ 145,965,000 $ 36,526,609 $ 182,491,609

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).

1. 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.

$12,049,931 is available in the Debt Service Fund to service the general obligation bonds.

2. Prior Years’ Advance Refundings

On September 30, 2016 there were no bonds outstanding that are considered defeased.

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.

COBB COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS

September 30, 2016

Note 8. Long-Term Debt (Continued)

3. Certificates of Participation

$10,730,000 Series 2010 Certificates of Participation is due in annual installments of $240,000 to $780,000 through January 1, 2031; interest at 2.25 to 4.00 percent ($8,850,000 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.

2017 $ 435,000 $ 305,125 $ 740,125 2018 450,000 292,937 742,937 2019 475,000 279,063 754,063 2020 490,000 264,588 754,588 2021 510,000 249,588 759,588

2022-2026 2,895,000 985,687 3,880,687 2027-2031 3,595,000 385,388 3,980,388

Total $ 8,850,000 $ 2,762,376 $ 11,612,376

Certificate of Participation

Principal Interest Total

4. Revenue Anticipation Certificates

$6,315,000 2014 Revenue Anticipation Certificates is due in annual installments of $245,000 to $410,000 through July 1, 2035; interest at 2.00 to 3.25 percent ($6,070,000 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.

2017 $ 250,000 $ 172,700 $ 422,700 2018 255,000 167,700 422,700 2019 260,000 162,600 422,600 2020 265,000 157,400 422,400 2021 275,000 147,450 422,450

2022-2026 1,495,000 621,325 2,116,325 2027-2031 1,705,000 404,900 2,109,900 2032-2035 1,565,000 127,594 1,692,594

Total $ 6,070,000 $ 1,961,669 $ 8,031,669

Principal Interest Total

Revenue Anticipation Certificates

COBB COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS

September 30, 2016

Note 8. Long-Term Debt (Continued)

5. 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 $24,013,090 outstanding). The loan is financing the construction of various water tunnels and pump stations.

$35,000,000 2009 Notes Payable is due in monthly installments of $194,109 through October 1, 2022 (with one final payment of $76,256.98 payable on November 1, 2022); interest at 3.00 percent (with $13,001,313 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 $7,778.89 payable on February 1, 2030); interest at 3.00 percent (with $4,421,806 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 $18,909,850 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 $19,389,073 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 $194,106 through January 1, 2032; interest at 3.00 percent (with $28,600,344 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 $177,222 through July 1, 2033; interest at 3.00 percent (with $30,401,033 outstanding). The loan is financing the construction of various water tunnels and pump stations.

2017 $ 9,053,125 $ 3,778,720 $ 12,831,845 2018 9,314,257 3,518,017 12,832,274 2019 9,583,749 3,248,525 12,832,274 2020 9,860,311 2,971,962 12,832,273 2021 10,147,331 2,684,942 12,832,273

2022-2026 45,735,493 9,379,003 55,114,496 2027-2031 40,407,102 3,095,043 43,502,145 2032-2033 4,635,141 81,980 4,717,121

Total $ 138,736,509 $ 28,758,192 $ 167,494,701

Note Payable Principal Interest Total

COBB COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS

September 30, 2016

Note 8. Long-Term Debt (Continued)

Amounts

Beginning Ending Due Within

Governmental Activities: Balance Additions Reductions Balance One Year

GO Bonds:

2008 Parks $ 6,085,000 $ - $ (1,925,000) $ 4,160,000 $ 1,975,000

2007 Parks 8,055,000 - (3,925,000) 4,130,000 4,130,000

2005 Refunding 4,300,000 - (2,100,000) 2,200,000 2,200,000

Revenue Bonds:

1993 Refunding 31,180,000 - (1,900,000) 29,280,000 2,005,000

2005 Refunding 1,945,000 - (955,000) 990,000 990,000

2005 Refunding 13,255,000 - - 13,255,000 -

2009 Refunding 10,305,000 - (775,000) 9,530,000 800,000

2013 Refunding 40,055,000 - (1,730,000) 38,325,000 1,875,000

2015 Stadium 376,600,000 - - 376,600,000 3,690,000

2015 South Cobb Redevelopment Authority 10,000,000 - (370,000) 9,630,000 360,000

Total bonds before discounts and premiums $ 501,780,000 $ - $ (13,680,000) $ 488,100,000 $ 18,025,000

Add:

Unamortized bond premiums and discounts $ 4,175,673 $ - $ (712,025) $ 3,463,648 $ -

Total bonds payable $ 505,955,673 $ - $ (14,392,025) $ 491,563,648 $ 18,025,000

Capital leases before discounts $ 20,249,253 $ 8,800,000 $ (4,021,442) $ 25,027,811 $ 4,968,832

Certificate of Participation 9,270,000 - (420,000) 8,850,000 435,000

Revenue Anticipation Certificates 6,315,000 - (245,000) 6,070,000 250,000

Add:

Revenue Anticipation Certificates Premium 76,269 - (3,632) 72,637 -

Total Revenue Anticipation Certificates 6,391,269 - (248,632) 6,142,637 250,000

Net pension liability 430,843,725 65,173,648 - 496,017,373 -

Compensated absences 21,336,320 13,401,845 (10,232,742) 24,505,423 10,666,936

Total other liabilities $ 488,090,567 $ 87,375,493 $ (14,922,816) $ 560,543,244 $ 16,320,768

Governmental Activities Long-term Liabilities $ 994,046,240 $ 87,375,493 $ (29,314,841) $ 1,052,106,892 $ 34,345,768

The Internal Service Fund predominately serves the governmental funds. Accordingly, long-term liabilities for them are included as part of the above totals for governmental activities. At year-end, $18,220 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 and compensated absences are generally liquidated by the General Fund, Fire Fund, Parking Deck Fund, Law Library Fund, E-911 Fund and the Grants Fund. The compensated absences of the component unit are typically liquidated in the general fund.

COBB COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS

September 30, 2016

Note 8. Long-Term Debt (Continued)

30B29B27

Beginning

Balance Ending Due Within

Business-type Activities: (As Revised) Additions Reductions Balance One Year

Revenue Bonds:

2009 Water & Sewer Serial $ 99,910,000 $ - $ (5,245,000) $ 94,665,000 $ 5,480,000

2013 Water & Sewer Serial Bond 58,005,000 - (6,705,000) 51,300,000 6,850,000

2007 Performing Arts Centre 7,415,000 - (495,000) 6,920,000 515,000

Total Bonds before discounts and premiums $ 165,330,000 $ - $ (12,445,000) $ 152,885,000 $ 12,845,000

Add: Bond premiums $ 6,250,985 $ - $ (446,499) $ 5,804,486 $ -

Total bonds payable $ 171,580,985 $ - $ (12,891,499) $ 158,689,486 $ 12,845,000

Capital leases $ 121,352 $ - $ (121,352) $ - $ -

Notes payable 147,533,739 - (8,797,230) 138,736,509 9,053,125

Net pension liability 40,745,291 6,163,533 - 46,908,824 -

Closure and postclosure 24,045,850 - (368,429) 23,677,421 368,429

Compensated absences 1,694,508 1,257,512 (1,229,113) 1,722,907 1,213,076

Total other liabilities $ 214,140,740 $ 7,421,045 $ (10,516,124) $ 211,045,661 $ 10,634,630

Business-type Activities Long-term Liabilities $ 385,721,725 $ 7,421,045 $ (23,407,623) $ 369,735,147 $ 23,479,630

The beginning balance has been revised to exclude retainage that is considered current in fiscal year 2016.

Cobb County Board of Health

Amounts

Ending Due Within

Additions Reductions Balance One Year

Governmental Activities:

Net Pension Liability $ 13,569,023 $ 1,213,718 $ - $ 14,782,741 $ -

Compensated Absences 691,727 655,425 (647,973) 699,179 695,655

Total Long-term Liabilities $ 14,260,750 $ 1,869,143 $ (647,973) $ 15,481,920 $ 695,655

Beginning

Balance

33B

Note 9. Fund Balance Determinations and Classifications

A. Primary Government:

SSpecial revenue fundsU 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.

UCapital projects fundsU 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 fundsU are used to account for and report financial resources that are restricted, committed, or assigned to expenditure for principal and interest.

COBB COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS

September 30, 2016

Note 9. Fund Balance Determinations and Classifications (Continued)

The following classifications are used by the County:

1. General, Special Revenue, Debt Service, and Capital Projects Funds: 34B34B32B

a. UNonspendable Fund BalanceU: 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 BalanceU: 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.

c. UCommitted Fund BalanceU: 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 BalanceU: 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 Commissioner’s have by resolution authorized the County Manager to assign fund balance.

e. UUnassigned Fund BalanceU: 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.

COBB COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS

September 30, 2016

Note 9. Fund Balance Determinations and Classifications (Continued)

The composition of the Special Programs Fund Balance Classification is as follows:

Special Programs: Courts $ 1,496,087 $ - $ 1,496,087 E-911 - 3,345,826 3,345,826 800 MHz - 13,573 13,573 Streetlight District - 1,979,852 1,979,852 Grants - 1,444,772 1,444,772

Housing - 142,671 142,671 Library - 81,105 81,105 Parks 175,050 - 175,050 Cumberland Special Service District - 4,128,398 4,128,398 Sheriff 561,453 - 561,453 CMCEHA - 14,440,662 14,440,662

Total $ 2,232,590 $ 25,576,859 $ 27,809,449

Special Program Classification: Restricted Fund Balance

General Governmental Nonmajor

Funds TotalFund

COBB COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS

September 30, 2016

Note 9. Fund Balance Determinations and Classifications (Continued)

Special Programs: Board of Commissioners $ 81,979 $ - $ 81,979 Community Development 1,177,017 - 1,177,017 Communications 1,618,129 - 1,618,129 County Attorney 3,500 - 3,500 County Manager 2,400 - 2,400 Courts 867,336 - 867,336 General Government 19,659,682 - 19,659,682 Grant 273,270 - 273,270 Elections 92,753 - 92,753 Extension 1,000 - 1,000 Fleet 2,018,855 - 2,018,855 Human Resources 139,719 - 139,719 Information Services 1,515,924 - 1,515,924 Library 345,927 - 345,927 Medical Examiner 84,669 - 84,669 Parks 3,309,373 - 3,309,373 Parking Deck - 18,082 18,082 Property Management 226,282 - 226,282 Public Services 3,090,821 - 3,090,821 Purchasing 300 - 300 Senior Services 272,102 - 272,102 Sheriff 2,020,153 - 2,020,153 Tax Assessor 18,950 - 18,950 Tax Commissioner 18,525 - 18,525 Transportation 3,357,626 - 3,357,626 CMCEHA - 889,207 889,207

Total $ 40,196,292 $ 907,289 $ 41,103,581

Special Program Classification: Committed Fund Balance

Fund

Nonmajor General Governmental

Funds Total

35B34B32

COBB COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS

September 30, 2016

Note 9. Fund Balance Determinations and Classifications (Continued)

Special Programs: Board of Commissioners $ 26 $ - $ 26 Community Development 2,798 - 2,798 Communications 32,420 - 32,420 County Clerk 3,157 - 3,157 County Manager 378 - 378 Courts 92,454 - 92,454 General Government 36,617 - 36,617 Grant 92,704 - 92,704 Elections 16,977 - 16,977 Extension 538 - 538 Finance 2,318 - 2,318 Fleet 122,719 - 122,719 Human Resources 29,765 - 29,765 Information Services 321,842 - 321,842 Library 47,421 - 47,421 Medical Examiner 13,508 - 13,508 Parks 371,368 - 371,368 Parking Deck - 25,310 25,310 Property Management 261,707 - 261,707 Public Safety 318,634 - 318,634 Purchasing 463 - 463 Senior Services 25,357 - 25,357 Sheriff 448,675 - 448,675 Support Services 167 - 167 Tax Assessor 133 - 133 Tax Commissioner 48,398 - 48,398 Transportation 130,209 - 130,209

Total $ 2,420,753 $ 25,310 $ 2,446,063

Special Program Classification: Assigned Fund Balance

Fund Funds Total

Nonmajor General Governmental

5B33BNote 10. 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 1 st

and are due on October 15 th

each year. FY16 property taxes were levied on July 26, 2016 with taxes being due on October 17

th of the

same 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 of October 15

th .

COBB COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS

September 30, 2016

38B36B34BNote 11. Interfund Balances and Transfers

A. Primary Government

Individual fund interfund receivable and payable balances for the fiscal year ended September 30, 2016 are as follows:

General Fund Nonmajor Governmental Funds $ 487,097

Fire District Fund General Fund 50,254

Water and Sewer Fund General Fund 25,012,068

Fire District Fund 5,000,000

30,012,068

Nonmajor Governmental Funds General Fund 6,519,035

Fire District Fund 378,232

Performing Arts Centre Fund 34,392

Internal Service Fund 67,000

Water and Sewer Fund 543,157

Nonmajor Business-Type Funds 39,444

Nonmajor Governmental Funds 449,604

8,030,864

Nonmajor Business-Type Funds General Fund 5,019

Internal Service Fund Fire District Fund 8,000,000

$ 46,585,302

Due to / from other funds:

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, 2016.

$ 3,122,843 General Fund Nonmajor Business-Type Funds

Advance from/to other funds:

Receivable Fund Payable Fund Amount

COBB COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS

September 30, 2016

38B36B34BNote 11. Interfund Balances and Transfers (Continued)

The amounts payable to the General Fund relates to financing for cash purposes and are not subject to be repaid in the subsequent year.

39B36B34B

Transfer out: General Fund $ - $ 12,250,446 $ - $ 4,910,346 $ 9,752,617 $ 26,913,409 Fire District Fund - - - 378,232 - 378,232 Stadium Construction Fund - 5,000,000 - - - 5,000,000 Water and Sewer Fund 12,314,369 - - 543,157 - 12,857,526 Internal Service Fund 348,523 - - 67,000 - 415,523 Nonmajor Governmental Funds 14,454,532 - 24,683 18,715,195 260,982 33,455,392 Nonmajor Business-Type Funds - - - 7,571 1,968,215 1,975,786

Total transfers out $ 27,117,424 $ 17,250,446 $ 24,683 $ 24,621,501 $ 11,981,814 $ 80,995,868

Transfer In Nonmajor

Business-Type Funds

CMCEHA Stadium Water and ConstructionGeneral

Fund Fund Sewer Fund Total

Nonmajor Governmental

Funds

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.

41B39B37B

42B40B38B

43B41B39BNote 12. 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. Although the outcome of these lawsuits is not presently determinable, in the opinion of the County attorney, the resolution of these matters will not have a material adverse effect on the financial condition of the County.

44B42B40BNote 13. Deferred Compensation Plan

Primary Government:

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 employees.

COBB COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS

September 30, 2016

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.

45B43B41BNote 14. Due From Other Governments and Agencies

$ 7,302

1,363

6,116

725,089

6,983

27,818

2,128

8,458

5,493

State of Georgia, Department of Revenue 82,791

8,322

$ 881,863

$ 230,197

$ 39,200

274,637

115,160

26,809

22,214

51,600

32,610

541,108

83,974 $ 1,187,312

$ 699,212

$ 1,203,338

CMCEHA Fund

$ 48,451

78,006 $ 126,457

$ 3,446,516

City of Acworth, Georgia

City of Austell, Georgia

City of Marietta, Georgia

City of Powder Springs, Georgia

City of Kennesaw, Georgia

United States, Department of Treasury

Special Revenue Funds:

City of Smyrna, Georgia

Chattahoochee Tech

State of Georgia, Criminal Justice Coordinating Council

State of Georgia, Department of Human Resources

State of Georgia, Department of Transportation

State of Georgia, Emergency Management Agency

United States, Department of Justice

Atlanta Regional Commission

Grant Fund:

Total General Fund

Housing and Urban Development Fund:

State of Georgia, Public Safety

State of Georgia, Department of Revenue

Total Special Revenue Funds

General Fund:

Cobb County Board of Education

Cobb County Board of Health

Community Services Fund:

State of Georgia, Council of Juvenile Court Judges

State of Georgia, Department of Human Resources

State of Georgia, Department of Revenue

United States, Department of Housing and Urban Development

Emergency 911 Fund

City of Marietta, Georgia

City of Smyrna, Georgia

COBB COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS

September 30, 2016

45B43B41BNote 14. Due From Other Governments and Agencies (Continued)

SPLOST Fund:

$ 11,642,803

6,571,296 $ 18,214,099

$ 266,242

Cobb County Kennestone Hospital Authority 1,047

758,874

657,377

25,000

41,935

$ 1,750,475 $ 19,964,574

Total Due From Other Governments $ 24,292,953

$ 275,138

Georgia Regional Transportation Authority 236,785

Metro Atlanta Rapid Transportation Authority 362,304 $ 874,227

Capital Projects Funds:

Public Facilities Fund:

Cumberland Community Improvement District

State of Georgia, Department of Transportation

State of Georgia, Department of Revenue

State of Georgia, Department of Transportation

Federal Transit Administration

Proprietary Funds:

FEMA

Towncenter Community Improvement District

Total Capital Projects Funds

Total Proprietary Funds 874,227

Public Transit System Fund:

Federal Transit Administration

Note 15. Other Post Employment Benefits

The County implemented GASB 45 prospectively during the fiscal year ending September 30, 2008.

A. 62B60B58BPlan 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 43 and GASB Statement 45. 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 provisions and contribution requirements are established and may be amended by the Cobb County Pension Fund Board of Trustees.

As of January 1, 2016 membership in the plan is comprised of the following:

UUUGroup UUU UUUJanuary 1, 2016 Active participants 4,249 Retirees and beneficiaries UUU 1,486 UUU Total 5,735

The January 1, 2016 valuation is used to determine the recommended contribution for fiscal year 2016.

COBB COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS

September 30, 2016

Note 15. Other Post Employment Benefits (Continued)

Valuation date: 01/01/16 Actuarial cost method: Projected unit credit cost method Amortization method: Level percentage of pay, closed Remaining amortization period: 27 years Asset valuation method: Market value of assets

The amortization period for this plan is open.

Actuarial Assumptions Utilized: Investment rate of return: 7.6% Pre-Medicare Medical cost trend rate: 7.0% Medicare Eligible Medical cost trend rate: 5.0% Ultimate trend rate 5.0% Year of ultimate trend rate: 2021 Includes inflation at: 2.5%

B. Eligibility

Effective January 1, 2007:

All full-time employees with seven or more years of services as of January 1, 2007 will be eligible to continue medical coverage with ten years of service at termination of employment.

All full-time employees with less than seven year of service as of January 1, 2007 will be eligible to continue medical coverage with fifteen years of service at termination of employment.

Effective January 1, 2009

All full-time new hires will be eligible to continue medical coverage with thirty years of service at termination of employment.

C. Funding Policy

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 $129.46 per month for retiree, $348.77 per month for employee and spouse coverage, $331.33 per month for employee and child(ren) coverage, and $489.21 per month for family coverage. Plan members receiving benefits under the EPO/HMO plan contribute $56.37 per month for retiree, $191.34 per month for employee and spouse coverage, $181.78 per month for employee and child(ren) coverage, and $269.25 per month for family coverage Plan members receiving benefits under the CDHP plan contribute $37.20 per month for retiree, $158.19 per month for employee and spouse coverage, $150.29 per month for employee and child(ren) coverage, and $222.95 per month for family coverage. Plan members receiving benefits under the Kaiser Signature plan contribute $29.79 per month for retiree, $140.38 per month for employee and spouse coverage, $133.36 per month for employee and child(ren) coverage, and $196.5 per month for family coverage The County is required to contribute at a rate that is based on an actuarial valuation that is prepared in accordance within certain parameters. The current rate is 6.48% of annual covered payroll.

COBB COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS

September 30, 2016

Note 15. Other Post Employment Benefits (Continued)

D. Contributions

In 2016 Cobb County contributed an actuarially determined amount to the OPEB Plan trust. The annual required contribution amount is determined using actuarial methods and assumptions approved by the Cobb County Pension Fund Board of Trustees. It is intended to satisfy the minimum contribution requirements as set forth in GASB Statement 45.

Fiscal % of Annual Year Annual OPEB Net OPEB

Ended OPEB Cost Contributed Asset (Liability) 9/30/2014 12,682,173$ 121% 7,868,606$ 9/30/2015 12,297,726 108% 8,895,006 9/30/2016 13,738,190 107% 9,918,665

Annual OPEB Percentage of Annual OPEB Cost

The following table shows the components of the annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the net OPEB (obligation) asset:

49B47B45B

Annual required contribution 13,851,605$

Interest on net OPEB obligation (684,915)

Adjustment to annual required contribution 571,500 Annual OPEB cost (expense) 13,738,190

Contributions made 14,761,849 Increase in net OPEB asset 1,023,659

Net OPEB asset - beginning of year 8,895,006 Net OPEB asset - ending balance 9,918,665$

In accordance with the recommendation of its actuary, pursuant to their plan evaluation as of January 1, 2016, the County contributed $14,761,849 to the Plan. This contribution consisted of $5,293,334 (2.42% of covered payroll) for normal costs, $9,468,515 (4.06% of covered payroll) for amortization of the unfunded actuarial accrued liability

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. The accompanying schedules of employer contributions present information about the amounts contributed to the plan by employers in comparison to the ARC, an amount that is actuarially determined in accordance with the parameters of GASB Statement 43. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost for each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits.

COBB COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS

September 30, 2016

Note 15. Other Post Employment Benefits (Continued)

The following is the funding progress of the Plan as of the most recent valuation date:

Unfunded UAL As Actuarial Actuarial Actuarial Annual A % Of

Valuation Value Of Accrued Funded Liability Covered Covered

Date Assets Liability Ratio (UAL) Payroll Payroll

1/1/2014 84,726,947$ 200,118,641$ 42.34% 115,391,694$ 212,799,730$ 54.2%

1/1/2015 91,440,896 224,352,661 40.80% 132,911,765 218,979,561 60.7% 1/1/2016 91,619,032 245,265,481 37.36% 153,646,449 227,955,687 67.4%

OPEB TRUST FUND SCHEDULE OF FUNDING PROGRESS

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.

50B48B46BE. Summary of significant accounting policies

The plan financial statements are prepared on the accrual basis of accounting. Contributions are recognized when due, pursuant to formal commitments, as well as statutory or contractual requirements. Benefit payments and refunds are recognized when due and payable in accordance with the terms of the plan.

Investment income is recognized as earned by the Plan. Investments are reported at fair value. Securities traded on a national or international exchange are valued at the last reported sales price at current exchange rates. Investments that do not have an established market are reported at estimated fair value. The net appreciation (depreciation) in the fair value of investments held by the Plan is recorded as an increase (decrease) to investment income based on the valuation of investments as of the date of the statement of plan net position.

There are no investments in, loans to, or leases with parties related to the Plan. Administrative costs are financed through investment earnings.

51B49B47BNote 16. Employee Retirement System

A. 58B56B54BPrimary Government

Plan Description

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.

COBB COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS

September 30, 2016

Note 16. Employee Retirement System (Continued)

Oversight of the Plan is by a five member 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 2,185 Terminated participants entitled to benefits, but not yet receiving benefits 927 Active participants 4,132 Total 7,244

Number of Participants as of January 1, 2016

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 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

COBB COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS

September 30, 2016

Note 16. Employee Retirement System (Continued)

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, 2016, the traditional active member’s contribution rate was 7.0% and the County’s contribution rate was 19.15% of covered payroll. During the plan year, total pension contributions were $42,300,849 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.

The target asset allocation and best estimate of arithmetic real rates of return for each major asset class as of September 30, 2016 are summarized below:

Target Long-Term Expected Allocation Real Rate of Return

US Fixed Income 30% 0.20% US Equity 33% 5.10% US Equity Mid Cap 6% 5.90% US Equity Small Cap 6% 6.10% Global Equity 10% 5.70% International Equity 15% 6.30%

Total 100%

Asset Class

For the year ended September 30, 2016, the annual money-weighted rate of return on the Pension Plan’s investments, net of pension plan investment expense, was 9.68 percent. The money-weighted rate of return expressed investment performance, net of investment expense, adjusted for the changing amounts actually invested.

51B49B4

COBB COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS

September 30, 2016

Note 16. Employee Retirement System (Continued)

Net Pension Liability of the County

The net pension liability reported by the County at September 30, 2016 is based on the measurement date of September 30, 2015. The total pension liability as of the measurement date, September 30, 2016, was determined by an actuarial valuation as of January 1, 2016. Updated procedures were used to roll forward the total pension liability to the plan’s fiscal year end, September 30, 2016 for disclosure purposes. The components of the net pension liability of the County as of the plan’s fiscal year end, September 30, 2016, were as follows:

Total Pension Liability 1,103,634,874$ Plan Fiduciary Net Position 553,082,903 County's Net Pension Liability 550,551,971$

Plan Fiduciary Net Position as a % of the Total Pension Liability 50.11%

Changes in Net Pension Liability as of the following measurement date:

Total Pension Plan Fiduciary Net Pension Liability Net Position Liability

Balances at September 30, 2014 $ 989,500,404 $ 517,911,388 $ 471,589,016

Changes for the year: Service cost 18,980,543 - 18,980,543 Interest 72,176,032 - 72,176,032 Benefit changes 463,821 - 463,821 Difference between expected actual experience 25,359,233 - 25,359,233 Changes in assumptions - - - Contributions - employer - 39,097,981 (39,097,981) Contributions - employee - 12,083,766 (12,083,766) Net investment income - (5,922,327) 5,922,327 Benefit payments, including refunds of employee contributions (54,262,097) (54,262,097) - Administrative expense - (241,372) 241,372 Other changes - 624,400 (624,400) Net changes $ 62,717,532 $ (8,619,649) $ 71,337,181

Balance at September 30, 2015 $ 1,052,217,936 $ 509,291,739 $ 542,926,197

COBB COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS

September 30, 2016

Note 16. Employee Retirement System (Continued)

Total Pension Plan Fiduciary Net Pension Liability Net Position Liability

Balances at September 30, 2015 $ 1,052,217,936 $ 509,291,739 $ 542,926,197

Changes for the year: Service cost 18,841,425 - 18,841,425

Interest 76,728,937 - 76,728,937 Benefit changes (319,947) - (319,947) Difference between expected actual experience 14,497,396 - 14,497,396 Changes in assumptions - - - Contributions - employer - 42,300,849 (42,300,849) Contributions - employee - 12,981,148 (12,981,148) Net investment income - 46,845,674 (46,845,674) Benefit payments, including refunds of employee contributions (58,330,873) (58,330,873) - Administrative expense - (250,846) 250,846 Other changes - 245,212 (245,212) Net changes $ 51,416,938 $ 43,791,164 $ 7,625,774

Balance at September 30, 2016 $ 1,103,634,874 $ 553,082,903 $ 550,551,971

Actuarial Methods and Assumptions

The following actuarial assumptions used in the January 1, 2016 valuation were based on the results of an actuarial experience study for the period January 1, 2015 through December 31, 2015, and rolled forward to the measurement date of September 30, 2016:

Inflation 2.50% Salary increases 2.5 to 4.0 percent, including inflation

Investment rate of return 7.5 percent, net of pension plan investment expense, and including inflation

Post-retirement benefit increases Not applicable

Mortality rates were based on the RP-2000 Healthy Annuitant Mortality Table for Males or Females, as appropriate, with adjustments for mortality improvements based on Scale AA.

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 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

COBB COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS

September 30, 2016

Note 16. Employee Retirement System (Continued)

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 the measurement date, September 30, 2016, and the plan’s fiscal year end, September 30, 2016, 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:

As of September 30, 2015 1% Current 1%

Decrease Discount Increase (6.5%) (7.5%) (8.5%)

County's Net pension liability 669,204,155$ 542,926,197$ 436,722,895$

As of September 30, 2016 1% Current 1%

Decrease Discount Increase (6.5%) (7.5%) (8.5%)

County's Net pension liability 681,119,989$ 550,551,971$ 440,634,266$

Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions

For the year ended September 30, 2016, the County recognized pension expense of $47,817,347. At September 30, 2016, the County reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources based on a measurement date of September 30, 2015:

Deferred Deferred Outflows of Inflows of Resources Resources

Difference between expected and actual experience $ 21,235,780 $ - Changes in assumptions 22,513,088 - Net difference between projected and actual earnings on plan investments 28,626,814 - Employer contributions subsequent to the Measurement Date 42,300,849 - Total $ 114,676,531 $ -

$42,300,849 reported as deferred outflows of resources related to pensions resulting from County contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended September 30, 2017. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

COBB COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS

September 30, 2016

Note 16. Employee Retirement System (Continued)

Deferred Deferred Outflows of Inflows of Resources Resources

2017 $ 16,010,593 $ - 2018 16,010,593 - 2019 16,010,592 - 2020 18,377,820 - 2021 5,347,569 - 2021 618,515 -

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, 2016, there were 142 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 $502,802. For the year ended September 30, 2016, forfeitures allocated to participant accounts totaled $38,629.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, 2016, there was one 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.

The Authority also maintains a Roth IRA Plan; the Plan is administered by the ICMA-Retirement Corporation. At September 30, 2016, there were 3 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.

COBB COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS

September 30, 2016

Note 16. Employee Retirement System (Continued)

401/457 Defined Contribution Plan - County

Effective January 1, 2010 the County adopted the ICMA Retirement Corporation Deferred Compensation Plan and Trust, a 401/457 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 $749,344 to the plan. Total forfeitures during the year were $61,474.

54B52B50BNote 17. 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 18. Capital Contributions

As reported in Note 1, beginning October 1, 2001, with the implementation of GASB 33, the County now recognizes capital contributions as non-operating revenues in the Proprietary Funds Statement of Revenues, Expenses and Changes in Fund Net Position.

Capital Contributions recognized as revenue in the Proprietary Funds for the fiscal year ending September 30, 2016 are presented below:

Source: Developers 6,461,659$ Grants 19,672,740 Donations 11,367,899

37,502,298$

COBB COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS

September 30, 2016

Note 19. 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, 2016, Cobb County has incurred a liability totaling $23,677,421.

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.

The County will fund the closure and postclosure care costs with subsidies from the General Fund. As of September 30, 2016, 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.

57B55B53BNote 20. Hotel/Motel Lodging Tax

Cobb County has levied an 8% lodging tax. A summary of the transactions for the year ending September 30, 2016 follows:

Lodging tax receipts $ 13,918,458

Debt service payment on refunding revenue bonds, series 2013 (Performing Arts Center Project) UUU (3,424,500)

Balance of lodging tax was expended for the promotion of tourism as required by OCGA 48-13-51 $ 10,493,958

7B7B7B

Note 21. Other Commitments

Commitments for water and sewerage system improvements at September 30, 2016 total approximately $34,942,560.

Encumbrances outstanding at year end are as follows:

Fire Total

Encumbrances $ 7,873,457 $ 3,589,656 $ 101,725,308 $ $ 129,446,51316,258,092

Nonmajor

Fund District Fund SPLOST Governmental

FundsFund General

8B8B8

COBB COUNTY, GEORGIA NOTES TO FINANCIAL STATEMENTS

September 30, 2016

Note 22. Joint Venture

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 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 $731,975 to the ARC for the year ended September 30, 2015. 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, 40 Courtland Street N.E., Atlanta, Georgia 30303.

9B9B9BNote 23. 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.

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, 2016

Schedule of Changes in Net Pension Liability and Related Ratios

2016 2015 (Revised) 2014 Total Pension Liability Service cost $ 18,841,425 $ 18,980,543 $ 16,461,299 Interest 76,728,937 72,176,032 67,327,012 Benefit changes (319,947) 463,821 - Difference between expected actual experience 14,497,396 25,359,233 - Changes in assumptions - - 33,157,574 Benefit payments, including refunds of employee contributions (58,330,873) (54,262,097) (50,322,458) Net change in Total Pension Liability $ 51,416,938 $ 62,717,532 $ 66,623,427 Total Pension Liability - Beginning $ 1,052,217,936 $ 989,500,404 $ 922,876,977 Total Pension Liability - Ending $ 1,103,634,874 $ 1,052,217,936 $ 989,500,404

Plan Fiduciary Net Position Contributions - employer $ 42,300,849 $ 39,097,981 $ 34,397,013 Contributions - employee 12,981,148 12,083,766 11,801,194 Net investment income 46,845,674 (5,922,327) 47,291,379 Benefit payments, including refunds of employee contributions (58,330,873) (54,262,097) (50,322,458) Administrative expense (250,846) (241,372) (239,523) Other changes 245,212 624,400 86,110 Net Change in Plan Fiduciary Net Position $ 43,791,164 $ (8,619,649) $ 43,013,715 Plan Fiduciary Net Position - Beginning $ 509,291,739 $ 517,911,388 $ 474,897,673 Plan Fiduciary Net Position - Ending $ 553,082,903 $ 509,291,739 $ 517,911,388

Net Pension Liability - Ending $ 550,551,971 $ 542,926,197 $ 471,589,016

Plan Fiduciary Net Position as a percentage of the Total Pension Liability 50.11% 48.40% 52.34%

Covered - Employee Payroll 220,949,172 214,354,687 208,332,028

Net Pension Liability as a percentage of Covered Payroll 249.18% 253.28% 226.36%

Note to Schedule:

2014 is the first year that data has been measured in accordance with GASB Statement 68.

COBB COUNTY, GEORGIA EMPLOYEE RETIREMENT SYSTEM Required Supplementary Information

September 30, 2016

Schedule of Pension Contributions

2016 2015 2014

Actuarially determined contribution $ 41,391,890 $ 38,791,424 $ 33,960,537

Contributions in relation to the actuarially determined contribution 42,300,849 39,097,981 34,397,013 Contributions (excess) $ (908,959) $ (306,557) $ (436,476)

Covered - Employee Payroll 220,949,172 214,354,687 208,332,028

Contributions as a percentage of covered -employee payroll 19.15% 18.24% 16.51%

Note to Schedule:

2014 is the first year that data has been measured in accordance with GASB Statement 68.

COBB COUNTY, GEORGIA EMPLOYEE RETIREMENT SYSTEM Required Supplementary Information

September 30, 2016

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%

Note to Schedule:

2014 is the first year that data has been measured in accordance with GASB Statement 68.

COBB COUNTY, GEORGIA EMPLOYEE RETIREMENT SYSTEM Required Supplementary Information

September 30, 2016

NOTES TO REQUIRED SUPPLEMENTARY INFORMATION

The information presented in the required supplementary schedules was determined as part of the actuarial valuations at the dates indicated. Additional information as of the latest actuarial valuation follows:

Valuation date: 01/01/16 Actuarial cost method: Projected unit credit cost method Amortization method: Level percentage of pay Remaining amortization period: 27 years Asset valuation method: Five-year smoothed market value

The amortization period for this plan is closed.

Actuarial Assumptions Utilized: Investment rate of return: 7.5% Projected salary increases: 2.5 % to 4.00% Includes inflation at 2.5% 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%.

COBB COUNTY, GEORGIA EMPLOYEE RETIREMENT SYSTEM Required Supplementary Information

September 30, 2016

Unfunded UAL As

Actuarial Actuarial Actuarial Annual A % Of Valuation Value Of Accrued Funded Liability Covered Covered

Date Assets Liability Ratio (UAL) Payroll Payroll 1/1/2011 40,746,271$ 246,021,834$ 16.56% 205,275,563$ 214,119,567$ 95.87% 1/1/2012 46,486,981 247,611,907 18.77% 201,124,926 208,621,922 96.41% 1/1/2013 58,975,301 186,733,213 31.58% 127,757,912 211,553,134 60.39% 1/1/2014 84,726,947 200,118,641 42.34% 115,391,694 212,799,730 54.23% 1/1/2015 91,440,896 224,352,661 40.76% 132,911,765 218,979,561 60.70% 1/1/2016 91,619,032 245,265,481 37.36% 153,646,449 227,955,687 67.40%

SCHEDULE OF FUNDING PROGRESS OPEB TRUST FUND

COBB COUNTY, GEORGIA EMPLOYEE RETIREMENT SYSTEM Required Supplementary Information

September 30, 2016

% of ARC

Contributed

9/30/2011 19,372,240$ 123% 9/30/2012 18,411,193 101% 9/30/2013 18,531,372 110% 9/30/2014 12,762,508 120% 9/30/2015 12,407,906 107% 9/30/2016 13,851,605 107%

Fiscal Year ARC

OPEB TRUST FUND SCHEDULE OF EMPLOYER CONTRIBUTIONS

Annual Required Contribution (ARC)

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, 2016

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 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.

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.

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.

COBB COUNTY, GEORGIA September 30, 2016

1BDebt Service Fund

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.

The CMCEHA Debt Service Fund accounts for resources accumulated and payments made for principal and interest on the governmental activity revenue 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 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.

Assets

Cash and cash equivalents $ 889,207 $ 158,402 $ - $ - $ - $ 1,047,609

Restricted cash and cash equivalents 24,737,449 - - -5,041,303 -9,857,181 -7,269,111 46,905,044

Receivables:

Taxes 4,630,366 - - - 4,956,986 9,587,352

Other 2,564,812 - 4,874 - - - - - 29,046 2,598,732

Due from other funds -2,912,143 5,118,721 - - - 8,030,864

Due from other governments and agencies 3,446,516 1,750,475 - - - 5,196,991

Advances to component unit 1,614,931 - - - - 1,614,931

Inventories 54,463 - - - - 54,463

Prepaid expenditures 233,902 80,491 - - - 314,393

Total assets $ 41,083,789 $ 7,112,963 $ 5,041,303 $ 9,857,181 $ 12,255,143 $ 75,350,379

Liabilities, Deferred Inflows of Resources,

and Fund Balances

Liabilities:

Accounts payable $ 2,815,939 $ 1,744,173 $ 13,929 $ - $ 1,513 $ 4,575,554

Accrued payroll 523,032 - - - - 523,032

Due to other funds 936,701 - - - - 936,701

Due to others 448,963 - - - - 448,963

Due to other governments and agencies 77,936 193,928 - - - 271,864

Matured bonds payable - - - 2,995,000 - 2,995,000

Accrued interest payable - - - 1,197,306 - 1,197,306

Unearned revenue 1,557,972 11,045 - - - 1,569,017

Total liabilities 6,360,543 1,949,146 13,929 4,192,306 1,513 12,517,437

Deferred inflows of resources

Unavailable revenues 263,842 - - - 203,699 467,541

Total liabilities and deferred inflows

of resources 6,624,385 1,949,146 13,929 4,192,306 205,212 12,984,978

Fund balances:

Nonspendable

Inventories and prepaid items 288,365 80,491 - - - 368,856

Advances 1,614,931 - - - - 1,614,931

Restricted for:

Debt Service 6,046,650 - - 5,664,875 12,049,931 23,761,456

Construction and capital outlay - - 5,027,374 - - 5,027,374

Special programs 25,576,859 - - - - 25,576,859

Committed for:

Construction and capital outlay - 11,922,632 - - - 11,922,632

Special programs 907,289 - - - - 907,289

Assigned for:

Special programs 25,310 - - - - 25,310

Unassigned - (6,839,306) - - - (6,839,306)

Total fund balances 34,459,404 5,163,817 5,027,374 5,664,875 12,049,931 62,365,401

Total liabilities, deferred inflows

of resources, and fund balances $ 41,083,789 $ 7,112,963 $ 5,041,303 $ 9,857,181 $ 12,255,143 $ 75,350,379

SCRA

Construction

Fund

Cobb County, Georgia

All Nonmajor Governmental Funds

Combining Balance Sheet

September 30, 2016

CMCEHATotal Nonmajor

Special Revenue

Funds

Public

Facilities

Fund

Debt Service

Fund Funds

BOC

Debt Service

Fund

Total Nonmajor

Governmental

BOC

Debt Service

Fund

Revenues:

Taxes $ 19,939,059 $ - $ - $ - $ 7,958,146 $ 27,897,205

Intergovernmental 17,571,972 2,885,109 - - - 20,457,081

Charges for services 35,144,646 - - - 206,393 35,351,039

Interest earned 56,767 - 4,159 27,222 30,195 118,343

Miscellaneous 1,331,342 838,809 - - - 2,170,151

Total revenues 74,043,786 3,723,918 4,159 27,222 8,194,734 85,993,819

Expenditures:

Current:

General government 7,716,433 - - - 198,999 7,915,432

Public safety 13,246,924 - - - - 13,246,924

Public works 5,676,208 - - - - 5,676,208

Health and welfare 3,114,505 - - - - 3,114,505

Culture and recreation 16,194,355 - - - - 16,194,355

Housing and development 5,984,543 - - - - 5,984,543

Capital outlay - 12,833,459 4,829,653 - - 17,663,112

Debt Service:

Principal retirement 2,150,000 551,149 370,000 3,770,000 7,950,000 14,791,149

Interest and fiscal charges 2,010,313 188,062 279,541 2,810,802 607,412 5,896,130

Total expenditures 56,093,281 13,572,670 5,479,194 6,580,802 8,756,411 90,482,358

Excess (deficiency) of revenues

over (under) expenditures 17,950,505 (9,848,752) (5,475,035) (6,553,580) (561,677) (4,488,539)

Other financing sources (uses):

Transfers in 10,580,558 6,823,338 649,541 6,568,064 - 24,621,501

Transfers out (33,074,844) (380,548) - - - (33,455,392)

Proceeds from sale of capital assets - 12,213 - - - 12,213

Total other financing sources (uses) (22,494,286) 6,455,003 649,541 6,568,064 - (8,821,678)

Net change in fund balances (4,543,781) (3,393,749) (4,825,494) 14,484 (561,677) (13,310,217)

Fund balances at beginning of year 39,003,185 8,557,566 9,852,868 5,650,391 12,611,608 75,675,618

Fund balances at end of year $ 34,459,404 $ 5,163,817 $ 5,027,374 $ 5,664,875 $ 12,049,931 $ 62,365,401

Cobb County, Georgia

All Nonmajor Governmental Funds

Combining Statement of Revenues, Expenditures and Changes in Fund Balances

For the Fiscal Year Ended September 30, 2016

Total Nonmajor

Governmental

SCRA

FundsFunds

Public

Facilities

Fund

Debt Service

Fund

Construction

Total Nonmajor

Special Revenue

CMCEHA

Fund

Law Community Housing & Urban

Library Services Development Hotel/Motel Emergency

Fund Fund Grant Fund Grant Fund Tax Fund 911 Fund

Assets

Cash and cash equivalents $ - $ - $ - $ - $ - $ -

Restricted cash and cash equivalents 57,821 - 1,221 169,982 - 768,795

Receivables:

Taxes and penalties - - - - - -

Other -31,443 - - 189,168 - - 1,672,422

Due from other funds -15,600 - - 1,150,919 - 443,339 1,062

Due from other governments and agencies - - 230,197 1,187,312 699,212 - -1,203,338

Advances to component unit - - - - - -

Inventories - - - - - -

Prepaid expenditures - - - - 6,020 - - - 74,683

Total assets $ 104,864 $ 230,197 $ 2,534,640 $ 869,194 $ 443,339 $ 3,720,300

Liabilities, Deferred Inflows of

Resources, and Fund Balances

Liabilities:

Accounts payable $ -21,170 $ -218,631 $ -703,741 $ - 725,422 $ - - $ -189,649

Accrued payroll 2,208 - 19,421 - - 110,142

Due to other funds - 11,566 6,238 - 443,339 -

Due to others 381 - 2,530 - - -

Due to other governments

and agencies - - - - - -

Unearned revenue - - 351,918 1,101 - -

Total liabilities 23,759 230,197 1,083,848 726,523 443,339 299,791

Deferred Inflows of Resources

Unavailable revenues - - - - - -

Total Liabilities and Deferred

Inflows of Resources 23,759 230,197 1,083,848 726,523 443,339 299,791

Fund balances:

Nonspendable

Inventories and prepaid items - - 6,020 - - 74,683

Advances - - - - - -

Restricted for:

Debt Service - - - - - -

Special Programs 81,105 - 1,444,772 142,671 - 3,345,826

Committed for:

Special programs - - - - - -

Assigned for:

Special Programs - - - - - -

Total fund balances 81,105 - 1,450,792 142,671 - 3,420,509

Total Liabilities, Deferred Inflows

of Resources, and Fund Balances $ 104,864 $ 230,197 $ 2,534,640 $ 869,194 $ 443,339 $ 3,720,300

September 30, 2016

Combining Balance Sheet

Nonmajor Governmental Funds - Special Revenue Funds

Cobb County, Georgia

Parking Deck Streetlight Cumberland

Facility 800 MHz District Special Service CMCEHA

Fund Fund Fund District 2 Fund Fund

$ - $ - $ - $ - $ - $ - $ 889,207 $ 889,207

21,351 13,600 1,935,472 216,019 4,128,398 1,464,107 15,960,683 24,737,449

- - - 550,900 - 4,079,466 - 4,630,366

29,333 - 270,931 - - - 371,515 2,564,812

- - - - - - - 1,301,223 2,912,143

- - - - - - - 126,457 3,446,516

- - - - - - 1,614,931 1,614,931

- - - - - - 54,463 54,463

- - - - - - - 153,199 233,902

$ 50,684 $ 13,600 $ 2,206,403 $ 766,919 $ 4,128,398 $ 5,543,573 $ 20,471,678 $ 41,083,789

$ -7,199 $ - - $ -222,978 $ - - $ - - $ - - $ -727,149 $ -2,815,939

93 - 2,553 - - - 388,615 523,032

- 27 - - - - 475,531 936,701

- - 1,020 - - - 445,032 448,963

- - - - - - 77,936 77,936

- - - - - - 1,204,953 1,557,972

7,292 27 226,551 - - - 3,319,216 6,360,543

- - - 46,859 - 216,983 - 263,842

7,292 27 226,551 46,859 - 216,983 3,319,216 6,624,385

- - - - - - 207,662 288,365

- - - - - - 1,614,931 1,614,931

- - - 720,060 - 5,326,590 - 6,046,650

- 13,573 1,979,852 - 4,128,398 - 14,440,662 25,576,859

18,082 - - - - - 889,207 907,289

25,310 - - - - - - 25,310

43,392 13,573 1,979,852 720,060 4,128,398 5,326,590 17,152,462 34,459,404

$ 50,684 $ 13,600 $ 2,206,403 $ 766,919 $ 4,128,398 $ 5,543,573 $ 20,471,678 $ 41,083,789

Special Service

Six Flags

Special Service

District Fund

Special Revenue

Total Nonmajor

FundsDistrict 1 Fund

Cumberland

Law Community

Library Services Hotel/Motel Emergency

Fund Fund Grant Fund Tax Fund 911 Fund

Revenues:

Taxes $ - - $ - - $ - - $ - - $ - 13,918,458 $ - -

Intergovernmental - - -636,628 -9,574,713 -5,660,781 - - - -

Charges for services 551,746 - 28,798 - - 11,889,156

Interest earned 127 - 2,373 382 - 4,367

Miscellaneous 5,147 - 903,542 414,089 - 5,126

Total revenues 557,020 636,628 10,509,426 6,075,252 13,918,458 11,898,649

Expenditures:

Current:

General government 613,717 - 7,102,716 - - -

Public safety - - 1,631,403 - - 11,615,521

Public works - - 635,979 - - -

Health and welfare - 615,955 2,498,550 - - -

Culture and recreation - - 599,250 - - -

Housing and development - - 36,934 5,947,609 - -

Debt service:

Principal retirement - - - - 1,730,000 -

Interest and fiscal charges - - - - 1,694,500 -

Total expenditures 613,717 615,955 12,504,832 5,947,609 3,424,500 11,615,521

Excess (deficiency) of revenues

over (under) expenditures (56,697) 20,673 (1,995,406) 127,643 10,493,958 283,128

Other financing sources (uses):

Transfers in - - 1,276,453 46,648 - -

Transfers out - (20,673) (79,881) - (10,493,958) -

Total other financing

sources (uses) - (20,673) 1,196,572 46,648 (10,493,958) -

Net change in fund balances (56,697) - (798,834) 174,291 - 283,128

Fund balances at beginning of year 137,802 - 2,249,626 (31,620) - 3,137,381

Fund balances at end of year $ 81,105 $ - $ 1,450,792 $ 142,671 $ - $ 3,420,509

Grant Fund

Housing & Urban

Development

Nonmajor Governmental Funds - Special Revenue Funds

Cobb County, Georgia

For the Fiscal Year Ended September 30, 2016

Combining Statement of Revenues, Expenditures and Changes in Fund Balances

Parking Deck Streetlight Six Flags Special

Facility 800 MHz District Service District

Fund Fund Fund Fund Fund

$ - - $ - - $ - - $ - 698,232 $ - - $ - 5,322,369 $ - - $ - 19,939,059

- - - - - - - - - - - - -1,699,850 -17,571,972

720,154 - 6,161,808 - 3,578,141 - 12,214,843 35,144,646

85 179 1,516 396 4,276 5,278 37,788 56,767

3,438 - - - - - - 1,331,342

723,677 179 6,163,324 698,628 3,582,417 5,327,647 13,952,481 74,043,786

- - - - - - - 7,716,433

- - - - - - - 13,246,924

224,908 - 4,815,321 - - - - 5,676,208

- - - - - - - 3,114,505

- - - - - - 15,595,105 16,194,355

- - - - - - - 5,984,543

420,000 - - - - - - 2,150,000

315,813 - - - - - - 2,010,313

960,721 - 4,815,321 - - - 15,595,105 56,093,281

(237,044) 179 1,348,003 698,628 3,582,417 5,327,647 (1,642,624) 17,950,505

304,095 - - - - - 8,953,362 10,580,558

- (2,726,616) (24,683) (649,541) (1,946,811) (10,303,635) (6,829,046) (33,074,844)

304,095 (2,726,616) (24,683) (649,541) (1,946,811) (10,303,635) 2,124,316 (22,494,286)

67,051 (2,726,437) 1,323,320 49,087 1,635,606 (4,975,988) 481,692 (4,543,781)

(23,659) 2,740,010 656,532 670,973 2,492,792 10,302,578 16,670,770 39,003,185

$ 43,392 $ 13,573 $ 1,979,852 $ 720,060 $ 4,128,398 $ 5,326,590 $ 17,152,462 $ 34,459,404

Funds

Total Nonmajor

Special Revenue

Fund Fund

Service District 2

Special

CMCEHA

Special

Service District 1

Cumberland Cumberland

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, 2016

Variance with

Final Budget -

Positive

Original Final Actual (Negative)

Revenues:

Interest earned $ 11,300 $ 11,300 $ 27,222 $ 15,922

Total revenues $ 11,300 $ 11,300 $ 27,222 $ 15,922

Expenditures:

Debt service:

Principal retirement $ 3,770,000 $ 3,770,000 $ 3,770,000 $ -

Interest and fiscal charges 2,812,325 2,812,325 2,810,802 1,523

Total expenditures $ 6,582,325 $ 6,582,325 $ 6,580,802 $ 1,523

Excess (deficiency) of revenues over

expenditures $ (6,571,025) $ (6,571,025) $ (6,553,580) $ 17,445

Other financing sources (uses):

Transfers in $ 6,582,325 $ 6,582,325 $ 6,568,064 $ (14,261)

Total other financing sources (uses) $ 6,582,325 $ 6,582,325 $ 6,568,064 $ (14,261)

Net change in fund balance $ 11,300 $ 11,300 $ 14,484 $ 3,184

Fund balance at beginning of year 5,650,391

Fund balance at end of year - GAAP basis $ 5,664,875

Budgeted Amounts

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, 2016

Variance with

Final Budget -

Positive

Original Final Actual (Negative)

Revenues:

Taxes $ 10,155,747 $ 10,155,747 $ 7,958,146 $ (2,197,601)

Charges for services 145,000 145,000 206,393 61,393

Interest earned 23,000 23,000 30,195 7,195

Total revenues $ 10,323,747 $ 10,323,747 $ 8,194,734 $ (2,129,013)

Expenditures:

Current:

General government $ 194,710 $ 199,000 $ 198,999 $ 1

Debt service:

Principal retirement 7,950,000 7,950,000 7,950,000 -

Interest and fiscal charges 607,412 607,412 607,412 -

Total expenditures $ 8,752,122 $ 8,756,412 $ 8,756,411 $ 1

Excess (deficiency) of revenues over

expenditures $ 1,571,625 $ 1,567,335 $ (561,677) $ (2,129,012)

Net change in fund balance $ 1,571,625 $ 1,567,335 $ (561,677) $ (2,129,012)

Fund balance at beginning of year 12,611,608

Fund balance at end of year - GAAP basis $ 12,049,931

Budgeted Amounts

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, 2016

Original Final Actual

Revenues:

Charges for services $ 575,000 $ 575,000 $ 551,746 $ (23,254)

Interest earned 40 40 127 87

Miscellaneous 4,500 4,500 5,147 647

Total revenues $ 579,540 $ 579,540 $ 557,020 $ (22,520)

Expenditures:

Current:

Personal services $ 168,017 $ 190,305 $ 190,305 $ -

Operating expenditures 409,280 425,431 425,431 -

Capital outlay - - - -

Total expenditures $ 577,297 $ 615,736 $ 615,736 $ -

Net change in fund balance $ 2,243 $ (36,196) $ (58,716) $ (22,520)

Fund balance at beginning of year 137,802

Fund balance at end of year - budgetary basis $ 79,086

Reconciliation to GAAP basis:

Elimination of encumbrances outstanding

at end of year -2,019

Fund balance at end of year-GAAP basis $ 81,105

(Negative)

Budgeted Amounts

Variance with

Final Budget -

Positive

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, 2016

Variance with

Final Budget -

Positive

Original Final Actual (Negative)

Revenues:

Intergovernmental $ 555,421 $ 668,452 $ 636,628 $ (31,824)

Total revenues $ 555,421 $ 668,452 $ 636,628 $ (31,824)

Expenditures:

Current:

Operating expenditures $ 555,421 $ 668,452 $ 615,955 $ 52,497

Total expenditures $ 555,421 $ 668,452 $ 615,955 $ 52,497

Excess of revenues over expenditures $ - $ - $ 20,673 $ 20,673

Other financing sources (uses):

Transfers out $ - $ - $ (20,673) $ (20,673)

Net change in fund balance $ - $ - $ - $ -

Fund balance at beginning of year -

Fund balance at end of year - GAAP basis $ -

Budgeted Amounts

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, 2016

Variance with

Final Budget -

Positive

Original Final Actual (Negative)

Revenues:

Taxes $ 13,500,000 $ 13,918,458 $ 13,918,458 $ -

Total revenues $ 13,500,000 $ 13,918,458 $ 13,918,458 $ -

Expenditures:

Current:

Debt service:

Principal retirement $ 1,730,000 $ 1,730,000 $ 1,730,000 $ -

Interest and fiscal charges 1,694,500 1,694,500 1,694,500 -

Total expenditures $ 3,424,500 $ 3,424,500 $ 3,424,500 $ -

Excess of revenues over expenditures $ 10,075,500 $ 10,493,958 $ 10,493,958 $ -

Other financing sources (uses):

Transfers out $ (10,075,500) $ (10,493,958) $ (10,493,958) $ -

Total other financing sources (uses) $ (10,075,500) $ (10,493,958) $ (10,493,958) $ -

Net change in fund balance $ - $ - $ - $ -

Fund balance at beginning of year -

Fund balance at end of year - GAAP basis $ -

Budgeted Amounts

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, 2016

Variance with

Final Budget -

Positive

Original Final Actual (Negative)

Revenues:

Charges for services $ 11,490,110 $ 11,490,110 $ 11,889,156 $ 399,046

Interest earned 3,000 3,000 4,367 1,367

Miscellaneous 4,000 4,000 5,126 1,126

Total revenues $ 11,497,110 $ 11,497,110 $ 11,898,649 $ 401,539

Expenditures:

Current:

Personnel services $ 8,132,528 $ 8,681,188 $ 8,681,188 $ -

Operating expenditures 2,701,165 2,993,963 2,993,963 -

Total expenditures $ 10,833,693 $ 11,675,151 $ 11,675,151 $ -

Excess (deficiency) of revenues over

(under) expenditures $ 663,417 $ (178,041) $ 223,498 $ 401,539

Net change in fund balance $ 663,417 $ (178,041) $ 223,498 $ 401,539

Fund balance at beginning of year 3,137,381

Fund balance at end of year - budgetary basis $ 3,360,879

Reconciliation to GAAP basis:

Elimination of encumbrances outstanding at

end of year 59,630

Fund balance at end of year - GAAP basis $ 3,420,509

Budgeted Amounts

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, 2016

Variance with

Final Budget -

Positive

Original Final Actual (Negative)

Revenues:

Charges for services $ 659,000 $ 659,000 $ 720,154 $ 61,154

Interest earned 50 50 85 35

Miscellaneous 1,500 1,500 3,438 1,938

Total revenues $ 660,550 $ 660,550 $ 723,677 $ 63,127

Expenditures:

Current:

Personnel services $ 83,108 $ 76,074 $ 69,548 $ 6,526

Operating expenditures 145,724 165,103 165,103 -

Debt service:

Principal retirement 420,000 420,000 420,000 -

Interest and fiscal charges 315,813 315,813 315,813 -

Total expenditures $ 964,645 $ 976,990 $ 970,464 $ 6,526

Excess (deficiency) of revenues over

(under) expenditures $ (304,095) $ (316,440) $ (246,787) $ 69,653

Other financing sources (uses):

Transfers in $ 304,095 $ 304,095 $ 304,095 $ -

Total other financing sources (uses) $ 304,095 $ 304,095 $ 304,095 $ -

Net change in fund balance $ - $ (12,345) $ 57,308 $ 69,653

Fund balance at beginning of year (23,659)

Fund balance at end of year - budgetary basis $ 33,649

Reconciliation to GAAP basis:

Elimination of encumbrances outstanding at

end of year 9,743

Fund balance at end of year - GAAP basis $ 43,392

Budgeted Amounts

100

Variance with

Final Budget -

Positive

Original Final Actual (Negative)

Revenues:

Intergovernmental $ 60,652 $ 2,807,006 $ - $ (2,807,006)

Interest earned 8,000 8,000 179 (7,821)

Total revenues $ 68,652 $ 2,815,006 $ 179 $ (2,814,827)

Excess (deficiency) of revenues over

(under) expenditures $ 68,652 $ 2,815,006 $ 179 $ (2,814,827)

Other financing sources (uses):

Transfers in $ 413,992 $ 413,992 $ - $ (413,992)

Transfer out - (2,726,616) (2,726,616) -

Total other financing sources (uses) $ 413,992 $ (2,312,624) $ (2,726,616) $ (413,992)

Net change in fund balance $ 482,644 $ 502,382 $ (2,726,437) $ (3,228,819)

Fund balance at beginning of year 2,740,010

Fund balance at end of year - GAAP basis $ 13,573

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, 2016

101

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, 2016

Original Final Actual

Revenues:

Charges for services $ 5,759,668 $ 5,759,668 $ 6,161,808 $ 402,140

Interest earned - - 1,516 1,516

Total revenues $ 5,759,668 $ 5,759,668 $ 6,163,324 $ 403,656

Expenditures:

Current:

Personal services $ 178,633 $ 183,126 $ 183,126 $ -

Operating expenditures 5,252,811 5,254,636 4,635,046 619,590

Capital outlay 304,613 - - -

Total expenditures $ 5,736,057 $ 5,437,762 $ 4,818,172 $ 619,590

Excess of revenues over

expenditures $ 23,611 $ 321,906 $ 1,345,152 $ 1,023,246

Other financing sources (uses):

Transfers out $ (23,000) $ (24,683) $ (24,683) $ -

Total other financing sources (uses) $ (23,000) $ (24,683) $ (24,683) $ -

Net change in fund balance $ 611 $ 297,223 $ 1,320,469 $ 1,023,246

Fund balance at beginning of year 656,532

Reconciliation to GAAP basis:

Elimination of encumbrances outstanding

at end of year 2,851

Fund balance at end of year-GAAP basis $ 1,979,852

Variance with

Final Budget -

Budgeted Amounts Positive

(Negative)

102

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, 2016

Variance with

Final Budget -

Positive

Original Final Actual (Negative)

Revenues:

Taxes $ 720,000 $ 720,000 $ 698,232 $ (21,768)

Interest earned - - 396 396

Total revenues $ 720,000 $ 720,000 $ 698,628 $ (21,372)

Excess (deficiency) of revenues over

expenditures $ 720,000 $ 720,000 $ 698,628 $ (21,372)

Other financing sources (uses):

Transfers out - $ - (649,541) (649,541)

Total other financing sources (uses) $ - $ - $ (649,541) $ (649,541)

Net change in fund balance $ 720,000 $ 720,000 $ 49,087 $ (670,913)

Fund balance at beginning of year 670,973

Fund balance at end of year - GAAP basis $ 720,060

Budgeted Amounts

103

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, 2016

Variance with

Final Budget -

Positive

Original Final Actual (Negative)

Revenues:

Charges for services $ 3,600,000 $ 3,600,000 $ 3,578,141 $ (21,859)

Interest earned - - 4,276 4,276

Total revenues $ 3,600,000 $ 3,600,000 $ 3,582,417 $ (17,583)

Excess (deficiency) of revenues over

expenditures $ 3,600,000 $ 3,600,000 $ 3,582,417 $ (17,583)

Other financing sources (uses):

Transfers out - (2,106,232) (1,946,811) 159,421

Total other financing sources (uses) $ - $ (2,106,232) $ (1,946,811) $ 159,421

Net change in fund balance $ 3,600,000 $ 1,493,768 $ 1,635,606 $ 141,838

Fund balance at beginning of year 2,492,792

Fund balance at end of year - GAAP basis $ 4,128,398

Budgeted Amounts

104

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, 2016

Variance with

Final Budget -

Positive

Original Final Actual (Negative)

Revenues:

Taxes $ 5,150,000 $ 5,150,000 $ 5,322,369 $ 172,369

Interest earned - - 5,278 5,278

Total revenues $ 5,150,000 $ 5,150,000 $ 5,327,647 $ 177,647

Excess (deficiency) of revenues over

expenditures $ 5,150,000 $ 5,150,000 $ 5,327,647 $ 177,647

Other financing sources (uses):

Transfers out - (10,303,635) (10,303,635) -

Total other financing sources (uses) $ - $ (10,303,635) $ (10,303,635) $ -

Net change in fund balance $ 5,150,000 $ (5,153,635) $ (4,975,988) $ 177,647

Fund balance at beginning of year 10,302,578

Fund balance at end of year - GAAP basis $ 5,326,590

Budgeted Amounts

105

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, 2016

Variance with

Final Budget -

Positive

Original Final Actual (Negative)

Revenues:

Intergovernmental $ 1,491,409 $ 1,491,409 $ 1,699,850 $ 208,441

Charges for services 11,096,780 11,096,780 12,214,843 1,118,063

Interest earned 16,524 16,524 37,788 21,264

Total revenues $ 12,604,713 $ 12,604,713 $ 13,952,481 $ 1,347,768

Expenditures:

Current:

Personnel services $ 5,724,244 $ 5,724,244 $ 5,835,779 $ (111,535)

Operating expenditures 7,534,388 7,534,388 8,032,765 (498,377)

Contractual expenditures 1,630,673 1,630,673 1,726,561 (95,888)

Total expenditures $ 14,889,305 $ 14,889,305 $ 15,595,105 $ (705,800)

Excess (deficiency) of revenues over

expenditures $ (2,284,592) $ (2,284,592) $ (1,642,624) $ 641,968

Other financing sources (uses):

Transfers in $ 13,848,307 $ 13,848,307 $ 8,953,362 $ (4,894,945)

Transfers out (7,438,637) (7,438,637) (6,829,046) 609,591

Total other financing sources (uses) $ 6,409,670 $ 6,409,670 $ 2,124,316 $ (4,285,354)

Net change in fund balance $ 4,125,078 $ 4,125,078 $ 481,692 $ (3,643,386)

Fund balance at beginning of year 16,670,770

Fund balance at end of year - GAAP basis $ 17,152,462

Budgeted Amounts

106

Cobb County, Georgia

Nonmajor Business-Type Enterprise Funds

Combining Statement of Net Position

September 30, 2016

Cobblestone

Golf Course

Fund

Assets and Deferred Outflows of Resources

Current assets:

Cash $ 459,415 $ 2,493,406 $ 49,147 $ 134,337 $ 3,136,305

Restricted cash and cash equivalents - - - 58,951 58,951

Receivables:

Accounts, net - - - 21,817 21,817

Other 6,256 87,623 65,765 - 159,644

Due from other funds - 5,019 - - 5,019 Due from other governments and agencies - 874,227 - - 874,227

Prepaid items 3,272 - - - 3,272

Total current assets 468,943 3,460,275 114,912 215,105 4,259,235

Noncurrent assets:

Property, plant and equipment:

Capital assets not being depreciated 5,453,615 11,128,308 3,778,386 1,805,485 22,165,794

Capital assets being depreciated, net 689,108 42,193,983 3,078,828 1,556,835 47,518,754

Net property, plant and equipment 6,142,723 53,322,291 6,857,214 3,362,320 69,684,548

Total noncurrent assets 6,142,723 53,322,291 6,857,214 3,362,320 69,684,548

Total assets 6,611,666 56,782,566 6,972,126 3,577,425 73,943,783

Deferred Outflows of Resources:

Deferred outflows of resources related to pension - 263,756 68,806 - 332,562

Total assets and deferred outflows of resources $ 6,611,666 $ 57,046,322 $ 7,040,932 $ 3,577,425 $ 74,276,345

Continued on next page.

Galleria

Specialty Shops

Fund

Public

Transit System

Fund Totals

Solid Waste

Disposal

Fund

107

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 $ 107,669 $ 3,766,588 $ 37,476 $ 9,252 $ 3,920,985

Accrued payroll - 10,545 11,793 - 22,338

Due to other funds 1,764 5,807 - 31,873 39,444

Due to others 9,173 - - 2,400 11,573

Customer deposits - - - 58,951 58,951

Due to other governments and agencies 21,208 1,000 - - 22,208

Unearned revenues 67,589 - - - 67,589

Current portion of compensated absences - 14,012 9,628 - 23,640

Current portion of closure and post closure care - - 368,429 - 368,429

Total current liabilities 207,403 3,797,952 427,326 102,476 4,535,157

Long-term liabilities:

Compensated absences (net of current portion) - - 34,858 - 34,858

Closure and postclosure care (net of current portion) - - 23,308,992 - 23,308,992

Net pension liability - 1,248,731 325,756 - 1,574,487

Advances from other funds 3,122,843 - - - 3,122,843

Total long-term liabilities 3,122,843 1,248,731 23,669,606 - 28,041,180

Total liabilities 3,330,246 5,046,683 24,096,932 102,476 32,576,337

Deferred inflows of resources

Deferred inflow related to pension - - - - -

Total liabilities and deferred inflows of resources 3,330,246 5,046,683 24,096,932 102,476 32,576,337

Net Position:

Net investment in capital assets 6,142,723 53,303,450 6,857,214 3,362,320 69,665,707

Unrestricted (2,861,303) (1,303,811) (23,913,214) 112,629 (27,965,699)

Total net position $ 3,281,420 $ 51,999,639 $ (17,056,000) $ 3,474,949 $ 41,700,008

Continued from preceding page.

Disposal

Fund

Specialty Shops

Fund

Galleria

Totals

September 30, 2016

Public

Transit System

Fund

Solid Waste

108

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, 2016

Cobblestone

Golf Course

Fund Totals

Operating revenues:

Charges for services $ 1,702,848 $ 4,839,740 $ 491,337 $ 573,057 $ 7,606,982

Miscellaneous income 250 77,294 - - 77,544

Total operating revenues 1,703,098 4,917,034 491,337 573,057 7,684,526

Operating expenses:

Personnel services - 869,497 289,127 254,248 1,412,872

Other operating expenses 1,543,828 18,275,984 22,884 491,102 20,333,798

Total operating expenses 1,543,828 19,145,481 312,011 745,350 21,746,670

Operating income (loss)

before depreciation 159,270 (14,228,447) 179,326 (172,293) (14,062,144)

Less depreciation (79,542) (3,385,871) (398,954) (188,870) (4,053,237)

Operating income (loss) 79,728 (17,614,318) (219,628) (361,163) (18,115,381)

Nonoperating revenues (expenses):

Interest income 226 7,388 117 - 7,731

Gain (loss) on sale of capital assets (78,440) 9,166 - - (69,274)

Total nonoperating revenues (expenses) (78,214) 16,554 117 - (61,543)

Net income (loss) before transfers

and capital contributions 1,514 (17,597,764) (219,511) (361,163) (18,176,924)

Capital contributions - 19,672,740 - - 19,672,740

Transfers:

Transfers in - 11,518,215 202,617 260,982 11,981,814

Transfers out (1,764) (1,974,022) - - (1,975,786)

Total transfers (1,764) 9,544,193 202,617 260,982 10,006,028

Change in net position (250) 11,619,169 (16,894) (100,181) 11,501,844

Total net position - beginning 3,281,670 40,380,470 (17,039,106) 3,575,130 30,198,164

Total net position - ending $ 3,281,420 $ 51,999,639 $ (17,056,000) $ 3,474,949 $ 41,700,008

Public

Transit System

Fund

Galleria

Specialty Shops

Fund

Solid Waste

Disposal

Fund

109

Cobb County, Georgia

Nonmajor Business-Type Enterprise Funds

Combining Statement of Cash Flows

For the Fiscal Year Ended September 30, 2016

Cobblestone

Golf Course

Fund Totals

Cash flows from operating activities:

Cash received from customers $ 1,729,307 $ 11,852,155 $ 492,789 $ 569,790 $ 14,644,041

Cash payments for goods and services (1,478,246) (17,672,651) (384,517) (517,153) (20,052,567)

Cash payments for employee services

and fringe benefits - (823,039) (274,335) (254,248) (1,351,622)

Net cash from (to) operating activities 251,061 (6,643,535) (166,063) (201,611) (6,760,148)

Cash flows from noncapital financing activities:

Transfers in - 11,518,215 202,617 260,982 11,981,814

Transfers out (1,764) (1,974,022) - - (1,975,786)

Net cash from (to) noncapital

financing activities (1,764) 9,544,193 202,617 260,982 10,006,028

Cash flows from capital and

related financing activities:

Payments on capital leases (52,921) - - - (52,921)

Capital contributions - 19,672,740 - - 19,672,740

Payments on advances from other funds (40,000) - - - (40,000)

Proceeds from sale of capital assets - 9,166 - - 9,166

Payments for capital acquisitions (5,697) (20,138,671) - (28,034) (20,172,402)

Net cash from (to) capital and related

financing activities (98,618) (456,765) - (28,034) (583,417)

Cash flows from investing activities:

Interest received 226 7,388 117 - 7,731

Net cash from investing activities 226 7,388 117 - 7,731

Net increase (decrease) in cash and

cash equivalents 150,905 2,451,281 36,671 31,337 2,670,194

Cash and cash equivalents at beginning of year 308,510 42,125 12,476 161,951 525,062

Cash and cash equivalents at end of year $ 459,415 $ 2,493,406 $ 49,147 $ 193,288 $ 3,195,256

Continued on next page.

Public

Transit System

Fund Fund

Specialty Shops

GalleriaSolid Waste

Disposal

Fund

110

Cobb County, Georgia

Nonmajor Business-Type Enterprise Funds

Combining Statement of Cash Flows

For the Fiscal Year Ended September 30, 2016

Totals

Reconciliation of operating income (loss)

to net cash from operating activities:

Operating income (loss) $ 79,728 $ (17,614,318) $ (219,628) $ (361,163) $ (18,115,381)

Adjustments to reconcile operating income

(loss) to net cash from operating activities:

Depreciation 79,542 3,385,871 398,954 188,870 4,053,237

Change in assets and liabilities:

Decrease (increase) in accounts receivables - - - (21,817) (21,817)

Decrease (increase) in other receivables (1) (27,019) 1,452 15,870 (9,698)

Decrease (increase) in due from other funds - 5,637,291 - - 5,637,291

Decrease in due from restricted assets - - - - -

Decrease (increase) in due from others - - - - -

Decrease (increase) in due from other governments - 1,324,849 - - 1,324,849

Decrease (increase) in other assets - - - - -

Increase (decrease) in bank overdraft - - - - -

Decrease (increase) in deferred outflows of resources - (109,809) (28,646) - (138,455)

Increase (decrease) in accounts payable 55,127 644,822 6,796 (28,548) 678,197

Increase (decrease) in contracts payable - - - - -

Increase (decrease) in prepaid items - - - - -

Increase (decrease) in accrued liabilities - - - - -

Increase (decrease) in accrued payroll - 5,659 1,776 - 7,435

Increase (decrease) in accrued compensated absences - 8,310 4,540 - 12,850

Increase (decrease) in due to other funds 1,764 (41,489) - 12,537 (27,188)

Increase (decrease) in net pension liability - 164,076 42,803 - 206,879

Increase (decrease) in due to others (1,570) - - (10,040) (11,610)

Increase (decrease) in deposits payable - - - 2,680 2,680

Increase (decrease) in due to

other governments 10,261 - - - 10,261

Increase (decrease) in closure/post closure care - - (368,429) - (368,429)

Increase (decrease) in deferred inflows of resources - (21,778) (5,681) - (27,459)

Increase (decrease) in unearned revenues 26,210 - - - 26,210

Total adjustments 171,333 10,970,783 53,565 159,552 11,355,233

Net cash provided (used) by operating activities $ 251,061 $ (6,643,535) $ (166,063) $ (201,611) $ (6,760,148)

Continued from preceding page.

Cobblestone Public GalleriaSolid Waste

Disposal

Fund FundFund Fund

Golf Course Transit System Specialty Shops

111

Cobb County, Georgia

Agency Funds

Combining Statement of Changes in Assets and Liabilities

For the Fiscal Year Ended September 30, 2016

Balance Balance

October 1, 2015 Additions Deductions

Clerk of State Court

Assets

Cash and cash equivalents $ 5,192,950 $ 26,238,707 $ 25,407,598 $ 6,024,059

Liabilities

Funds held in trust for others $ 5,192,950 $ 26,238,707 $ 25,407,598 $ 6,024,059

Clerk of Juvenile Court

Assets

Cash $ 2,312 $ 10,284 $ 10,915 $ 1,681

Liabilities

Funds held in trust for others $ 2,312 $ 10,284 $ 10,915 $ 1,681

Sheriff

Assets

Cash and cash equivalents $ 8,758,240 $ 13,201,202 $ 12,234,587 $ 9,724,855

Liabilities

Funds held in trust for others $ 8,758,240 $ 13,201,202 $ 12,234,587 $ 9,724,855

Clerk of Superior Court

Assets

Cash and cash equivalents $ 30,716,440 $ 77,048,283 $ 79,508,986 $ 28,255,737

Liabilities

Funds held in trust for others $ 30,716,440 $ 77,048,283 $ 79,508,986 $ 28,255,737

Clerk of Probate Court

Assets

Cash $ - $ 2,139,504 $ 2,139,504 $ -

Liabilities

Due to other funds $ - $ 2,139,504 $ 2,139,504 $ -

Tax Commissioner

Assets

Cash $ 36,493,894 $ 1,011,508,161 $ 964,175,299 $ 83,826,756

Taxes and penalties receivable 473,509,799 677,071,181 659,743,826 490,837,154

$ 510,003,693 $ 1,688,579,342 $ 1,623,919,125 $ 574,663,910

Liabilities

Unremitted tax collections $ 36,493,894 $ 1,011,508,161 $ 964,175,299 $ 83,826,756

Taxes payable to others upon collection 473,509,799 677,071,181 659,743,826 490,837,154

$ 510,003,693 $ 1,688,579,342 $ 1,623,919,125 $ 574,663,910

Continued on next page.

September 30, 2016

112

Cobb County, Georgia

Agency Funds

Combining Statement of Changes in Assets and Liabilities

For the Fiscal Year Ended September 30, 2016

Balance Balance

October 1, 2015 Additions Deductions

Accounts Payable Fund

Assets

Accounts receivable $ - $ 56,095,362 $ 56,095,362 $ -

Liabilities

Bank overdraft $ - $ 56,095,362 $ 56,095,362 $ -

Payroll Fund

Assets

Cash and cash equivalents $ 9,930,091 $ 294,862,325 $ 293,622,890 $ 11,169,526

Liabilities

Unremitted payroll tax and withholdings $ 9,930,091 $ 294,862,325 $ 293,622,890 $ 11,169,526

$ 9,930,091 $ 294,862,325 $ 293,622,890 $ 11,169,526

Child Support, Witness and Jurors' Fees

Assets

Cash $ 36,897 $ 2,585,330 $ 2,583,424 $ 38,803 .

Liabilities

Funds held in trust for others $ 36,897 $ 2,585,330 $ 2,583,424 $ 38,803

Total assets $ 564,640,623 $ 2,160,760,339 $ 2,095,522,391 $ 629,878,571

Total liabilities $ 564,640,623 $ 2,160,760,339 $ 2,095,522,391 $ 629,878,571

Continued from preceding page.

September 30, 2016

113

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, 2016

Variance with

Final Budget -

Positive

Original Final Actual (Negative)

Revenues:

Taxes $ 251,940,142 $ 251,966,611 $ 249,188,218 $ (2,778,393)

Licenses and permits 22,937,921 22,966,030 28,443,083 5,477,053

Intergovernmental 2,873,000 4,771,405 3,583,815 (1,187,590)

Charges for services 38,019,938 38,798,439 40,628,867 1,830,428

Fines and forfeits 9,618,000 12,682,240 11,855,345 (826,895)

Interest earned 470,100 470,100 464,386 (5,714)

Miscellaneous 3,836,100 7,131,291 6,966,314 (164,977)

Total revenues $ 329,695,201 $ 338,786,116 $ 341,130,028 $ 2,343,912

Expenditures:

Current

General government:

Legislative:

Board of Commissioners

Personnel services $ 809,559 $ 878,896 $ 878,896 $ -

Operating expenditures 51,350 58,190 58,189 1

860,909 937,086 937,085 1

Other Governmental

Operating expenditures 1,474,466 1,708,548 1,791,139 (82,591)

Non-Profit

Operating expenditures 963,695 1,307,204 1,251,415 55,789

963,695 1,307,204 1,251,415 55,789

Total legislative 3,299,070 3,952,838 3,979,639 (26,801)

Judicial:

Clerk of State Court

Personnel services 4,430,551 4,431,284 -- 4,431,284 -

Operating expenditures 86,511 491,171 226,856 264,315

4,517,062 4,922,455 4,658,140 264,315

Clerk of Superior Court

Personnel services 5,798,530 5,887,624 5,887,624 -

Operating expenditures 234,116 630,430 642,212 (11,782)

Capital outlay - 136,814 136,814 -

6,032,646 6,654,868 6,666,650 (11,782)

District Attorney

Personnel services 6,566,149 7,207,402 7,207,402 -

Operating expenditures 406,410 1,033,232 1,043,228 -(9,996)

6,972,559 8,240,634 8,250,630 (9,996)

Chief Magistrate

Personnel services 3,200,362 3,405,680 3,405,680 -

Operating expenditures 87,739 87,902 98,183 (10,281)

3,288,101 3,493,582 3,503,863 (10,281)

Continued on next page.

Budgeted Amounts

114

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, 2016

Variance with

Final Budget -

Positive

Original Final Actual (Negative)

Budgeted Amounts

Juvenile Court

Personnel services 5,001,021 4,894,649 4,822,652 71,997

Operating expenditures 160,447 205,693 181,302 24,391

5,161,468 5,100,342 5,003,954 96,388

Probate Court

Personnel services 1,363,157 1,354,408 1,341,537 12,871

Operating expenditures 176,452 185,358 185,358 -

1,539,609 1,539,766 1,526,895 12,871

Solicitor

Personnel services 5,227,829 7,110,816 7,110,816 -

Operating expenditures 41,630 87,789 89,778 (1,989)

5,269,459 7,198,605 7,200,594 (1,989)

State Court

Personnel services 6,708,390 6,749,512 6,749,512 -

Operating expenditures 503,425 786,531 751,659 34,872

Capital outlay - 10,000 7,367 2,633

7,211,815 7,546,043 7,508,538 37,505

Superior Court

Personnel services 5,470,707 5,892,542 5,807,617 84,925

Operating expenditures 1,014,408 1,236,378 1,249,886 (13,508)

6,485,115 7,128,920 7,057,503 71,417

Circuit Defender

Personnel services 812,379 794,451 794,451 -

Operating expenditures 4,580,625 4,793,619 4,795,084 (1,465)

5,393,004 5,588,070 5,589,535 (1,465)

Total judicial 51,870,838 57,413,285 56,966,302 446,983

Executive and administrative:

County Manager

Personnel services 819,714 922,214 922,214 -

Operating expenditures 92,880 96,483 96,767 (284)

912,594 1,018,697 1,018,981 (284)

Continued on next page.

115

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, 2016

Variance with

Final Budget -

Positive

Original Final Actual (Negative)

Budgeted Amounts

General Administrative

Personnel services 23,000 23,000 - 23,000

Operating expenditures 8,961,177 9,392,256 9,139,708 252,548

8,984,177 9,415,256 9,139,708 275,548

Information Services

Personnel services 10,930,482 10,864,219 -10,864,219 -

Operating expenditures 6,902,545 7,441,587 -7,139,830 301,757

Capital outlay - 1,173,286 -1,905,545 (732,259)

17,833,027 19,479,092 19,909,594 (430,502)

Drug Treatment

Personnel services 312,610 312,610 291,570 21,040

Operating expenditures 228,300 233,291 117,795 115,496

540,910 545,901 409,365 136,536

Finance

Personnel services 3,221,561 3,221,561 2,807,902 413,659

Operating expenditures 252,550 313,736 214,066 99,670

3,474,111 3,535,297 3,021,968 513,329

Purchasing

Personnel services 2,421,429 2,421,429 2,383,317 38,112

Operating expenditures 1,764,795 2,015,626 1,769,857 245,769

Capital outlay - 687,231 686,611 620

4,186,224 5,124,286 4,839,785 284,501

Fleet

Personnel services -796,283 -865,526 -865,526 - -

Operating expenditures - 28,935 - 30,452 - 30,110 - 342

825,218 895,978 895,636 342

Tax Assessor

Personnel services -3,653,383 -3,679,852 -3,619,284 - 60,568

Operating expenditures -2,131,478 -2,212,784 -2,131,967 - 80,817

5,784,861 5,892,636 5,751,251 141,385

Internal Audit

Personnel services 310,171 333,762 333,762 -

Operating expenditures 5,986 19,986 19,381 605

316,157 353,748 353,143 605

Human Resources

Personnel services 2,007,147 2,097,234 2,097,234 -

Operating expenditures 480,954 795,320 818,784 (23,464)

2,488,101 2,892,554 2,916,018 (23,464)

Ethics Board

Operating expenditures 2,130 2,130 - 2,130

2,130 2,130 - 2,130

Property Management

Personnel services 4,948,240 4,948,240 -4,824,513 123,727

Operating expenditures 5,359,909 5,544,655 -5,186,563 358,092

Capital outlay - 548,266 -517,120 31,146

10,308,149 11,041,161 -10,528,196 512,965

Continued on next page.

116

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, 2016

Variance with

Final Budget -

Positive

Original Final Actual (Negative)

Budgeted Amounts

Tax Commissioner

Personnel services 6,588,712 6,588,712 6,271,867 316,845

Operating expenditures 604,101 695,834 631,394 64,440

Capital outlay - 12,063 7,099 4,964

7,192,813 7,296,609 6,910,360 386,249

Public Services

Personnel services 279,765 286,583 286,583 -

Operating expenditures 19,780 20,780 12,536 8,244

299,545 307,363 299,119 8,244

Communications

Personnel services 958,626 1,104,158 1,104,158 -

Operating expenditures 125,584 141,044 125,662 15,382

Capital outlay - 308,068 306,925 1,143

1,084,210 1,553,270 1,536,745 16,525

Support Services

Personnel services 677,292 677,292 539,402 137,890

Operating Services 12,243 16,759 11,316 5,443

689,535 694,051 550,718 143,333

Elections & Registration

Personnel services 2,240,060 2,612,145 2,612,145 -

Operating expenditures 619,179 999,968 1,016,947 (16,979)

Capital outlay - 151,350 151,350 -

2,859,239 3,763,463 3,780,442 (16,979)

County Clerk

Personnel services 421,281 421,281 353,495 67,786

Operating expenditures 40,520 39,234 35,993 3,241

461,801 462,015 392,488 69,527

Law Department

Personnel services 2,007,667 2,007,667 1,902,454 105,213

Operating expenditures 509,702 509,800 366,023 143,777

2,517,369 2,517,467 2,268,477 248,990

Central Warehouse

Operating expenditures - 8,449 8,449 -

- 8,449 8,449 -

Total executive and administrative 70,760,171 76,799,423 74,530,443 2,268,980

Total general government 125,930,079 138,165,546 135,476,384 2,689,162

Public Safety:

P S Training Center

Personnel services 1,366,181 377,275 366,837 10,438

Operating expenditures 470,278 396,284 435,135 (38,851)

Capital outlay - 63,750 63,008 742

1,836,459 837,309 864,980 (27,671)

Police Department

Personnel services 54,824,886 60,349,128 60,349,128 -

Operating expenditures 3,931,954 5,586,702 5,586,702 -

Capital outlay - 1,008,521 1,010,988 (2,467)

58,756,840 66,944,351 66,946,818 (2,467)

Continued on next page.

117

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, 2016

Variance with

Final Budget -

Positive

Original Final Actual (Negative)

Budgeted Amounts

Countywide-800MHZ

Personnel services 282,543 282,543 276,217 6,326

Operating expenditures 1,435,549 1,373,912 1,369,009 4,903

Capital outlay - 2,940 2,940 -

1,718,092 1,659,395 1,648,166 11,229

Animal Control

Personnel services 2,779,498 2,779,498 2,595,100 184,398

Operating expenditures 536,880 584,076 452,785 131,291

Capital outlay - 46,000 37,283 8,717

3,316,378 3,409,574 3,085,168 324,406

Public Safety

Personnel services 1,533,689 292,749 276,568 16,181

Operating expenditures 92,570 119,637 113,807 5,830

1,626,259 412,386 390,375 22,011

Safety Village

Personnel services 116,469 120,010 120,010 -

Operating expenditures 152,592 151,831 147,295 4,536

Capital outlay - 9,400 - - 9,400

269,061 281,241 267,305 13,936

Sheriff

Personnel services 20,983,928 20,891,949 20,891,949 -

Operating expenditures 1,599,582 1,920,212 1,920,212 -

Capital outlay - 129,463 236,164 -(106,701)

22,583,510 22,941,624 23,048,325 (106,701)

Corrections

Personnel services 34,051,701 35,485,358 35,485,358 -

Operating expenditures 15,244,047 16,368,494 16,368,494 -

Capital outlay - 86,961 219,936 (132,975)

49,295,748 51,940,813 52,073,788 (132,975)

Medical Examiner

Personnel services 1,171,696 1,253,048 1,253,048 -

Operating expenditures 81,577 138,305 134,824 3,481

Capital outlay - 128 63 65

1,253,273 1,391,481 1,387,935 3,546

Total public safety 140,655,620 149,818,174 149,712,860 105,314

Public Works:

Department of Transportation

Personnel services 11,539,311 11,689,591 11,367,008 322,583

Operating expenditures 3,980,193 5,304,941 5,487,727 (182,786)

Capital outlay - 377,199 312,612 64,587

15,519,504 17,371,731 17,167,347 204,384

Total public works 15,519,504 17,371,731 17,167,347 204,384

Culture and Recreation

Extension Service

Personnel services 529,619 476,020 463,667 12,353

Operating expenditures 27,749 82,264 82,411 (147)

557,368 558,284 546,078 12,206

Continued on next page.

118

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, 2016

Variance with

Final Budget -

Positive

Original Final Actual (Negative)

Budgeted Amounts

Library

Personnel services 8,295,205 10,027,969 8,502,641 1,525,328

Operating expenditures 2,824,546 3,102,350 3,148,265 (45,915)

Capital outlay - 18,400 15,030 3,370

11,119,751 13,148,719 11,665,936 1,482,783

Parks and Recreation

Personnel services 13,712,564 13,748,466 13,748,466 -

Operating expenditures 6,017,367 7,423,733 6,373,422 1,050,311

Capital outlay - 2,304,783 2,482,547 (177,764)

19,729,931 23,476,982 22,604,435 872,547

Total culture and recreation 31,407,050 37,183,985 34,816,449 2,367,536

Health and welfare:

Senior Services

Personnel services 2,611,757 2,570,409 2,309,456 260,953

Operating expenditures 478,027 781,434 806,496 (25,062)

Capital outlay - 9,134 9,134 -

3,089,784 3,360,977 3,125,086 235,891

Cobb County Board of Health

Operating expenditures 978,560 978,560 978,560 -

Total health and welfare 4,068,344 4,339,537 4,103,646 235,891

Community Development

Personnel services 8,137,448 8,162,440 8,043,346 119,094

Operating expenditures 425,759 843,956 710,924 133,032

8,563,207 9,133,896 8,754,270 379,626

Total housing and development 8,563,207 9,133,896 8,754,270 379,626

Total current $ 326,143,804 $ 356,012,869 $ 350,030,956 $ 5,981,913

Debt service:

Interest and fiscal charges 100,000 100,000 17,544 82,456

Total debt service $ 100,000 $ 100,000 $ 17,544 $ 82,456

Total expenditures $ 326,243,804 $ 356,112,869 $ 350,048,500 $ 6,064,369

Excess (deficiency) of revenues over

expenditures $ 3,451,397 $ (17,326,753) $ (8,918,472) $ 8,408,281

Continued on next page

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, 2016

Variance with

Final Budget -

Positive

Original Final Actual (Negative)

Budgeted Amounts

Other financing sources (uses):

Transfers in $ 21,400,209 $ 26,711,908 $ 27,117,421 $ 405,513

Proceeds from sale of capital assets - - 28,126 28,126

Transfers out (15,846,931) (29,360,194) (26,913,406) 2,446,788

Total other financing sources (uses) $ 5,553,278 $ (2,648,286) $ 232,141 $ 2,880,427

Net change in fund balance $ 9,004,675 $ (19,975,039) $ (8,686,331) $ 11,288,708

Fund balance at beginning of year 103,531,530

Fund balance at end of year - budgetary basis $ 94,845,199

Reconciliation to GAAP basis:

Elimination of encumbrances outstanding at

end of year 7,873,457

Fund balance at end of year - GAAP basis $ 102,718,656

120

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.

121

COBB COUNTY, GEORGIA STATISTICAL SECTION

September 30, 2016

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. Pages 122-127

Revenue Capacity These schedules contain information to help the user assess the County’s major revenue sources. Pages 128-137

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. Pages 138-143

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. Pages 144-147

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. Pages 148-152

(1)

Governmental activities Net investment in capital asset $ 3,318,300,453 $ 3,165,004,359 $ 3,082,678,386 $ 3,028,553,894 $ 2,993,197,551 Restricted 261,643,812 296,312,716 220,536,169 216,347,412 190,983,262 Unrestricted (305,236,161) (315,844,409) 96,461,368 74,356,405 52,489,843

Total governmental activities net position $ 3,274,708,104 $ 3,145,472,666 $ 3,399,675,923 $ 3,319,257,711 $ 3,236,670,656

Business-type activities Net investment in capital asset $ 1,420,350,770 $ 1,382,534,953 $ 1,270,930,346 $ 1,247,891,037 $ 1,234,745,764 Restricted 34,265,586 26,807,385 65,285,176 71,253,900 68,412,045 Unrestricted (7,665,683) (3,023,209) 10,420,926 6,776,248 5,742,409

Total business-type activities net position $ 1,446,950,673 $ 1,406,319,129 $ 1,346,636,448 $ 1,325,921,185 $ 1,308,900,218

Primary government Net investment in capital asset $ 4,738,651,223 $ 4,547,539,312 $ 4,353,608,732 $ 4,276,444,931 $ 4,227,943,315 Restricted 295,909,398 323,120,101 285,821,345 287,601,312 259,395,307 Unrestricted (312,901,844) (318,867,618) 106,882,294 81,132,653 58,232,252

Total primary government net position $ 4,721,658,777 $ 4,551,791,795 $ 4,746,312,371 $ 4,645,178,896 $ 4,545,570,874

Governmental activities Net investment in capital asset $ 2,964,844,393 $ 2,937,351,872 $ 2,845,141,332 $ 2,697,785,423 $ 2,519,108,757 Restricted 148,602,863 85,902,876 107,900,772 173,324,280 183,127,588 Unrestricted 30,201,143 30,533,812 56,626,064 61,584,531 76,623,771

Total governmental activities net position $ 3,143,648,399 $ 3,053,788,560 $ 3,009,668,168 $ 2,932,694,234 $ 2,778,860,116

Business-type activities Net investment in capital asset $ 1,216,295,546 $ 1,213,125,239 $ 1,214,901,904 $ 1,221,223,766 $ 1,184,655,823 Restricted 57,377,091 41,766,430 - - - Unrestricted 1,243,157 (8,524,185) 18,017,954 7,356,104 26,521,995

Total business-type activities net position $ 1,274,915,794 $ 1,246,367,484 $ 1,232,919,858 $ 1,228,579,870 $ 1,211,177,818

Primary government Net investment in capital asset $ 4,181,139,939 $ 4,150,477,111 $ 4,060,043,236 $ 3,919,009,189 $ 3,703,765,580 Restricted 205,979,954 127,669,306 107,900,772 173,324,280 183,127,588 Unrestricted 31,444,300 22,009,627 74,644,018 68,940,635 103,145,766

Total primary government net position $ 4,418,564,193 $ 4,300,156,044 $ 4,242,588,026 $ 4,161,274,104 $ 3,990,038,934

Source: Basic Financial Statements (1) Fiscal year 2014's ending net position was restated in 2015. The effect of the restatement to 2014 and prior categories of net position have not been determined.

Cobb County, Georgia Net Position by Component

Unaudited

2009 2008 2007

2016 2013 20122014

2011

2015

2010

122

(1)

Expenses

Governmental activities:

General government $ 152,978,160 $ 138,660,902 $ 132,717,871 $ 130,306,036 $ 128,569,788 $ 124,434,470 $ 135,559,677 $ 130,964,498 $ 129,487,420 $ 120,717,451 Public safety 260,257,459 235,115,102 226,274,548 216,746,332 214,304,007 208,553,530 226,008,723 218,818,569 216,428,501 193,571,694

Public works 129,004,776 131,167,118 122,421,838 116,643,350 114,304,649 110,401,097 112,031,838 110,796,058 104,411,823 104,327,448

Health and welfare 6,717,051 6,519,036 6,472,100 5,860,760 4,959,244 6,152,176 8,288,145 6,389,272 7,216,169 13,616,494

Culture and recreation 54,545,427 48,839,786 43,385,617 41,135,156 38,769,474 38,136,019 43,049,762 42,245,820 45,361,751 35,607,314

Housing and development 16,113,070 18,376,639 18,093,093 17,753,689 16,821,511 20,739,086 20,588,418 14,458,129 15,357,027 14,722,882 Interest on long-term debt 20,911,456 15,275,354 3,636,376 4,083,434 4,661,298 4,875,524 5,228,323 5,781,065 6,547,418 6,685,179

Total governmental activities expenses $ 640,527,399 $ 593,953,937 $ 553,001,443 $ 532,528,757 $ 522,389,971 $ 513,291,902 $ 550,754,886 $ 529,453,411 $ 524,810,109 $ 489,248,462

Business-type activities:

Water and Sewer $ 182,120,179 $ 173,041,157 $ 170,145,946 $ 162,598,501 $ 161,143,254 $ 160,087,751 $ 163,448,806 $ 156,686,447 $ 144,220,614 $ 145,833,553 Solid Waste 710,965 737,827 877,279 899,358 1,268,190 1,042,053 2,079,765 10,793,537 12,005,039 11,953,423

Transit 22,531,352 22,965,800 22,845,555 22,708,672 22,105,963 23,823,838 24,765,622 22,227,266 22,799,515 19,686,139

Cobblestone Golf Course 1,623,370 1,449,393 1,560,622 1,595,990 1,702,007 1,628,098 1,537,850 1,673,843 1,778,843 1,741,765

Galleria Speciality Shops 883,963 963,200 - - - - - - - -

Performing Arts Centre 9,727,913 9,516,067 - - - - - - - - Mable House Barnes Amphitheatre - - - - - - - - - -

Total business-type activities expenses $ 217,597,742 $ 208,673,444 $ 195,429,402 $ 187,802,521 $ 186,219,414 $ 186,581,740 $ 191,832,043 $ 191,381,093 $ 180,804,011 $ 179,214,880

Total primary government expenses $ 858,125,141 $ 802,627,381 $ 748,430,845 $ 720,331,278 $ 708,609,385 $ 699,873,642 $ 742,586,929 $ 720,834,504 $ 705,614,120 $ 668,463,342

Program Revenues Governmental activities:

Charges for services:

General government $ 44,005,094 $ 42,541,928 $ 40,623,239 $ 44,282,012 $ 44,083,506 $ 41,456,332 $ 48,147,632 $ 50,767,215 $ 51,978,918 $ 53,256,545

Public safety 18,747,884 18,169,500 18,253,052 17,729,347 15,782,214 15,369,970 15,237,639 15,131,886 14,780,887 14,341,033

Public works 7,705,165 6,943,989 5,890,118 5,592,147 5,686,233 5,226,015 5,168,770 5,282,949 4,949,018 5,582,231 Health and welfare 328,014 304,448 173,728 159,797 125,741 108,067 80,686 82,003 80,917 74,041

Culture and recreation 20,040,564 17,193,210 3,493,384 3,803,850 3,730,765 3,443,827 3,792,402 4,163,871 4,218,145 4,022,119

Housing and development 28,061,414 27,059,593 22,866,032 21,680,727 20,462,563 20,184,412 16,456,025 16,755,918 19,987,871 21,749,780

Operating grants and contributions 19,455,937 22,416,730 20,517,861 24,035,310 30,918,003 36,156,256 33,068,410 17,745,892 17,665,432 17,442,439

Capital grants and contributions 119,580,091 41,017,800 21,479,625 25,934,892 33,672,286 24,297,732 41,288,426 61,489,833 99,891,365 43,962,989 Total governmental activities program revenues $ 257,924,163 $ 175,647,198 $ 133,297,039 $ 143,218,082 $ 154,461,311 $ 146,242,611 $ 163,239,990 $ 171,419,567 $ 213,552,553 $ 160,431,177

Business-type activities:

Charges for services:

Water and Sewer $ 206,248,856 $ 199,209,759 $ 193,284,442 $ 187,171,300 $ 199,908,029 $ 196,795,218 $ 183,146,980 $ 170,690,750 $ 150,084,927 $ 174,833,409 Solid Waste 491,337 466,443 340,960 281,315 319,350 297,272 181,662 5,578,983 6,711,561 6,215,070

Transit 4,839,740 5,677,360 5,817,403 6,050,804 6,334,856 6,061,173 4,997,340 5,347,538 5,095,171 3,704,693

Cobblestone Golf Course 1,702,848 1,638,146 1,627,680 1,825,184 1,940,550 1,790,455 1,027,897 1,710,920 2,076,810 2,146,252

Galleria Speciality Shops 522,800 517,767 - - - - - - - -

Performing Arts Centre 8,930,062 7,950,970 - - - - - - - - Mable House Barnes Amphitheater - - - - - - - - - -

Operating grants and contributions 3,443,307 - - - - - - - 500,989 571,081

Capital grants and contributions 34,058,991 17,684,800 16,786,496 19,821,770 18,250,239 15,225,107 21,178,823 10,517,614 31,341,068 37,980,311

Total business-type activities program revenues $ 260,237,941 $ 233,145,245 $ 217,856,981 $ 215,150,373 $ 226,753,024 $ 220,169,225 $ 210,532,702 $ 194,483,901 $ 195,810,526 $ 225,450,816

Total primary government program revenues $ 518,162,104 $ 408,792,443 $ 351,154,020 $ 358,368,455 $ 381,214,335 $ 366,411,836 $ 373,772,692 $ 365,903,468 $ 409,363,079 $ 385,881,993

Net (Expense)/Revenue

Governmental activities $ (382,603,236) $ (418,306,739) $ (419,704,404) $ (389,310,675) $ (367,928,660) $ (367,049,291) $ (387,514,896) $ (358,033,844) $ (311,257,556) $ (328,817,285)

Business-type activities 42,640,199 24,471,801 22,427,579 27,347,852 40,533,610 33,587,485 18,700,659 3,102,808 15,006,515 46,235,936

Total primary government net (expense)/revenue $ (339,963,037) $ (393,834,938) $ (397,276,825) $ (361,962,823) $ (327,395,050) $ (333,461,806) $ (368,814,237) $ (354,931,036) $ (296,251,041) $ (282,581,349)

Continued on next page

2016

Cobb County, Georgia Changes in Net Position

Unaudited

20072015 2009 20082014 20102012 20112013

123

(1)

General Revenues and Other Changes in Net Position

Governmental activities: Property taxes $ 296,940,107 $ 301,401,010 $ 292,056,548 $ 271,694,680 $ 266,092,328 $ 266,292,261 $ 242,217,484 $ 258,642,957 $ 251,204,278 $ 238,915,529

Sales taxes 138,778,010 137,535,405 133,078,439 128,892,927 130,658,337 126,853,951 121,143,588 113,364,227 132,348,036 134,143,700

Insurance and premium tax 26,709,770 24,942,877 23,663,963 22,768,278 21,312,299 21,696,998 22,308,881 22,633,407 22,094,857 21,012,449

Alcoholic beverage tax 5,037,511 4,921,908 4,822,275 4,735,183 4,611,903 4,724,926 4,766,808 4,743,585 4,896,525 4,786,541

Hotel/Motel tax 13,918,458 13,245,458 12,330,071 11,244,163 10,366,262 9,887,246 9,450,045 9,327,241 11,084,810 10,625,801 Real estate transfer tax 2,372,019 2,102,271 1,864,910 1,372,033 964,058 818,501 735,743 805,210 1,285,897 2,381,465

Miscellaneous taxes 12,739,469 13,060,651 12,971,101 13,110,068 11,736,588 11,257,991 11,846,938 10,946,137 10,982,764 10,213,949

Miscellaneous 10,548,514 13,818,104 12,232,740 10,517,034 7,274,977 8,430,128 9,375,895 10,034,725 6,435,465 7,369,832

Grant and contributions not

restricted to specific programs - - - - - - - - 11,458,132 11,291,129 Gain on sale of capital assets - - 441,383 154,803 11,123 - 967,324 43,858 248,756 160,675

Unrestricted investment earnings 1,968,001 2,281,808 823,219 1,072,135 1,045,701 1,296,604 2,219,575 5,550,704 12,485,150 13,999,773

Special item-Adjustment to

intergovernmental agreement - - 3,555,000 - - - - - - -

Transfers 2,826,815 2,706,577 2,282,967 6,539,853 6,877,341 5,650,524 6,603,007 (1,084,273) 567,004 4,439,403 Total governmental activities $ 511,838,674 $ 516,016,069 $ 500,122,616 $ 472,101,157 $ 460,950,917 $ 456,909,130 $ 431,635,288 $ 435,007,778 $ 465,091,674 $ 459,340,246

Business-type activities:

Miscellaneous $ 464,088 $ 234,810 $ 435,300 $ 228,151 $ 193,332 $ 399,651 $ 615,141 $ 721,233 $ 942,405 $ 913,102 Gain on sale of capital assets 160,667 30,329 59,484 64,731 34,395 90,422 375,196 (1,060,661) 31,240 47,478

Unrestricted investment earnings 193,405 91,442 75,867 110,224 100,428 121,276 359,637 492,335 1,988,896 3,569,886

Transfers (2,826,815) (2,706,577) (2,282,967) (6,539,853) (6,877,341) (5,650,524) (6,603,007) 1,084,273 (567,004) (4,439,403)

Total business-type activities $ (2,008,655) $ (2,349,996) $ (1,712,316) $ (6,136,747) $ (6,549,186) $ (5,039,175) $ (5,253,033) $ 1,237,180 $ 2,395,537 $ 91,063

Total primary government $ 509,830,019 $ 513,666,073 $ 498,410,300 $ 465,964,410 $ 454,401,731 $ 451,869,955 $ 426,382,255 $ 436,244,958 $ 467,487,211 $ 459,431,309

Change in Net Position Governmental activities $ 129,235,438 $ 97,709,330 $ 80,418,212 $ 82,790,482 $ 93,022,257 $ 89,859,839 $ 44,120,392 $ 76,973,934 $ 153,834,118 $ 130,522,961

Business-type activities 40,631,544 22,121,805 20,715,263 21,211,105 33,984,424 28,548,310 13,447,626 4,339,988 17,402,052 46,326,999

Total primary government $ 169,866,982 $ 119,831,135 $ 101,133,475 $ 104,001,587 $ 127,006,681 $ 118,408,149 $ 57,568,018 $ 81,313,922 $ 171,236,170 $ 176,849,960

Restatement Governmental activities $ - $ (351,912,587) $ - $ (203,427) $ - $ - $ - $ - $ - $ -

Business-type activities - 37,560,876 - (4,190,138) - - - - - -

Total primary government $ - $ (314,351,711) $ - $ (4,393,565) $ - $ - $ - $ - $ - $ -

Change in Net Position and Restatement Governmental activities $ 129,235,438 $ (254,203,257) $ 80,418,212 $ 82,587,055 $ 93,022,257 $ 89,859,839 $ 44,120,392 $ 76,973,934 $ 153,834,118 $ 130,522,961

Business-type activities 40,631,544 59,682,681 20,715,263 17,020,967 33,984,424 28,548,310 13,447,626 4,339,988 17,402,052 46,326,999 Total primary government $ 169,866,982 $ (194,520,576) $ 101,133,475 $ 99,608,022 $ 127,006,681 $ 118,408,149 $ 57,568,018 $ 81,313,922 $ 171,236,170 $ 176,849,960

Continued from proceeding page

(1) Fiscal year 2014's ending net position was restated in 2015. The effects of the restatement to previously reported changes in net position has not been determined.

2016

Unaudited Changes in Net Position

2013 20102015 2014 20082011 2009 2007

Cobb County, Georgia

2012

124

(1)

General Fund Nonspendable $ 4,957,432 $ 4,803,886 $ 5,175,239 $ 5,057,876 $ 5,388,509 $ 3,866,278 $ 3,377,881 Restricted 2,232,590 2,161,863 1,630,134 1,652,111 2,003,534 2,142,090 1,909,472 Committed 40,196,292 19,819,502 26,228,765 24,679,900 26,838,346 22,853,051 4,395,900 Assigned 2,420,753 2,508,464 36,617 36,617 38,137 38,137 895,727 Unassigned 52,911,589 74,237,815 61,577,669 54,675,608 44,213,159 35,375,643 29,130,898

Total General Fund $ 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 $ 2,003,587 $ 2,007,201 $ 129,453 $ 127,347 $ 323,167 $ 150,710 $ 1,983 Restricted 275,610,226 502,145,546 218,906,035 213,561,868 188,186,359 145,233,251 93,562,980 Committed 12,829,921 8,482,877 25,890,974 6,692,707 892,897 1,862,719 7,338,797 Assigned 25,310 - - - - 1,566,956 20,576,836 Unassigned (4,777,418) (1,762,062) - - (8,747,169)

Special Revenue Funds - 781,619 - - - - - Capital Projects Funds (6,839,306) - - - - - -

Total all other governmental funds $ 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 $ 6,035,817 $ 7,085,586 Unreserved 42,189,697 40,743,565 51,628,912

Total General Fund 47,934,444 46,779,382 58,714,498

All Other Governmental Funds Reserved $ 133,774,416 $ 136,002,073 $ 90,325,264 Unreserved

Special Revenue Funds 426,956 17,907,147 26,838,435 Capital Projects Funds 17,165,427 72,154,167 142,747,333

Total all other governmental funds $ 151,366,799 $ 226,063,387 $ 162,402,990

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) Fiscal year 2014's ending fund balance was restated in 2015. The effect of the restatement to 2014's and prior categories of fund balance have not been determined.

Unaudited Fund Balances, Governmental Funds

Cobb County, Georgia

2010

2008

2015

2007

2011201220132016 2014

2009

125

(1)

Revenues Taxes $ 496,998,051 $ 497,303,435 $ 482,026,428 $ 455,554,341 $ 446,198,262 Licenses and permits 28,445,783 27,380,512 23,216,980 22,458,136 21,107,725 Intergovernmental 49,441,526 49,462,614 36,254,145 41,040,211 47,026,534 Charges for services 78,089,867 73,384,263 55,346,568 58,421,713 57,801,007 Fines and forfeits 11,855,345 11,447,893 12,736,005 12,368,031 10,963,315 Interest earned 2,076,573 2,244,247 1,483,303 1,348,103 1,337,327 Contributions 62,574,357 - - - Miscellaneous 10,548,514 13,818,104 12,232,740 10,517,034 7,508,969 Total revenues $ 740,030,016 $ 675,041,068 $ 623,296,169 $ 601,707,569 $ 591,943,139

Expenditures General government $ 140,446,801 $ 137,293,964 $ 128,252,106 $ 127,567,454 $ 122,402,883 Public safety 242,093,157 227,385,486 217,489,182 216,546,285 207,712,179 Public works 21,145,757 23,559,916 22,150,532 20,675,829 20,134,131 Health and welfare 7,192,792 6,609,940 6,443,854 6,070,001 5,075,377 Culture and recreation 49,202,208 42,274,216 40,020,320 38,387,445 36,379,623 Housing and development 14,736,015 16,895,956 17,146,174 17,447,786 18,364,641 Debt service

Principal retirement 18,507,246 14,042,574 10,519,015 13,252,657 13,691,395 Interest and fiscal charges 18,582,073 14,810,059 3,917,464 4,293,197 4,834,172

Capital outlay 434,201,650 302,655,447 121,817,341 94,945,037 83,866,243 Intergovernmental 36,614,195 36,746,628 35,103,822 33,970,260 32,479,600 Total expenditures $ 982,721,894 $ 822,274,186 $ 602,859,810 $ 573,155,951 $ 544,940,244

Excess of revenues over (under) expenditures $ (242,691,878) $ (147,233,118) $ 20,436,359 $ 28,551,618 $ 47,002,895

Other financing sources (uses) Transfers in $ 68,989,371 $ 143,992,902 $ 43,470,427 $ 33,104,084 $ 31,780,837 Transfers out (65,747,033) (140,620,103) (40,806,305) (25,876,763) (24,535,492) Capital lease proceeds 8,800,000 19,866,806 110,242 904,122 527,412 Proceeds from sale of capital assets 49,161 126,687 469,872 154,803 19,621 Bonds issued - 386,600,000 - - - Premium on bonds issued - 100,514 79,901 - - Discount on bonds issued - (249,821) - - - Premium on issuance of certificates - - 6,315,000 - - Total other financing sources (uses) $ 12,091,499 $ 409,816,985 $ 9,639,137 $ 8,286,246 $ 7,792,378

Net change in fund balances before restatement $ (230,600,379) $ 262,583,867 $ 30,075,496 $ 36,837,864 $ 54,795,273

Restatement $ - $ 19,567,438 $ - $ - $ -

Net change in fund balances after restatement $ (230,600,379) $ 282,151,305 $ 30,075,496 $ 36,837,864 $ 54,795,273

Debt service as a percentage of noncapital expenditures 6.85% 5.62% 3.03% 3.71% 4.06%

Source: Basic Financial Statements Note: Capital outlay in capital project funds in years prior to 2008 was classified by function (1) Fiscal year 2014's ending fund balance was restated in 2015. The effects of the restatement to previously reported changes in fund balances has not been determined.

2016

Unaudited Changes in Fund Balances, Governmental Funds

Cobb County, Georgia

20142015 20122013

126

$ 443,553,657 $ 415,633,188 $ 420,576,822 $ 430,494,106 $ 421,478,808 20,697,338 16,659,309 16,895,893 20,002,557 21,757,476 44,740,225 50,635,105 41,864,297 47,620,520 43,927,165 52,247,547 58,462,632 59,486,597 58,031,429 59,521,098 12,842,713 13,761,213 15,801,352 17,961,770 17,747,175 1,565,632 2,174,725 5,339,066 11,702,780 13,130,180

- - - - - 8,426,162 10,053,251 10,034,725 6,435,465 7,369,832

$ 584,073,274 $ 567,379,423 $ 569,998,752 $ 592,248,627 $ 584,931,734

$ 117,985,464 $ 125,328,297 $ 123,341,205 $ 125,709,498 $ 133,657,911 201,220,539 216,262,152 207,638,521 205,020,261 199,303,102 21,071,499 19,089,629 37,719,789 30,598,324 89,477,872 6,073,248 8,199,261 7,738,451 7,769,638 7,413,307

35,222,986 39,403,023 39,065,599 42,377,184 52,030,237 24,233,973 20,834,947 14,074,012 15,183,400 15,150,457

15,472,073 10,666,662 12,913,462 13,961,512 16,548,903 5,221,351 5,640,833 6,157,146 6,742,631 6,977,162

85,476,054 177,623,740 218,458,686 207,489,112 - 20,541,070 - - - -

$ 532,518,257 $ 623,048,544 $ 667,106,871 $ 654,851,560 $ 520,558,951

$ 51,555,017 $ (55,669,121) $ (97,108,119) $ (62,602,933) $ 64,372,783

$ 39,754,285 $ 48,899,093 $ 39,580,576 $ 60,545,358 $ 80,462,127 (32,786,823) (41,516,848) (40,312,340) (59,309,482) (82,436,523)

1,778,899 280,310 12,567,168 291,405 6,975,011 344,152 1,871,876 174,369 292,891 310,697

- 10,730,000 - 15,000,000 25,000,000 - - - - 926,933 - - - - - - 103,572 - - -

$ 9,090,513 $ 20,368,003 $ 12,009,773 $ 16,820,172 $ 31,238,245

$ 60,645,530 $ (35,301,118) $ (85,098,346) $ (45,782,761) $ 95,611,028

$ - $ 30,328 $ - $ - $ -

$ 60,645,530 $ (35,270,790) $ (85,098,346) $ (45,782,761) $ 95,611,028

4.64% 3.43% 4.12% 4.50% 5.30%

Cobb County, Georgia Changes in Fund Balances, Governmental Funds

Unaudited

2009 20072011 2010 2008

127

Fiscal Year 2007 $ 19,808,664,015 $ 49,521,660,038 $ 7,250,705,550 $ 18,126,763,875 $ 2,518,491,916 $ 6,296,229,790 $ 2,994,219,975 $ 7,485,549,938 $ 32,572,081,456 9.60 $ 81,430,203,640 40%

2008 20,221,351,894 50,553,379,735 8,105,159,926 20,262,899,815 2,558,206,943 6,395,517,358 2,934,178,648 7,335,446,620 33,818,897,411 9.60 84,547,243,528 40%

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 84,393,984,985 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 74,276,614,085 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 72,500,068,575 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 74,809,157,563 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 78,197,643,565 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 10.51 83,526,619,230 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)

128

2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 Cobb County Direct Rates

General 6.66 7.12 7.32 7.52 7.72 7.72 6.82 6.82 6.82 6.82 Fire District 2.96 3.06 3.06 3.06 3.06 3.06 2.56 2.56 2.56 2.56 Debt Service 0.23 0.33 0.33 0.33 0.33 0.33 0.22 0.22 0.22 0.22

Total direct rates 9.85 10.51 10.71 10.91 11.11 11.11 9.60 9.60 9.60 9.60

Cumberland Special Service District 2.45 2.60 2.70 - - - - - - -

Six Flags Special Service District 3.50 3.50 - - - - - - - -

City Rates Acworth 36.35 37.06 37.31 37.56 37.81 36.47 36.35 36.35 36.35 36.35 Austell 31.81 29.46 29.71 30.90 31.15 30.32 29.31 29.31 29.31 29.31 Kennesaw 38.25 38.96 39.21 39.46 39.71 39.76 38.25 38.25 38.25 38.25 Marietta 30.48 31.51 31.77 30.73 31.45 31.50 30.49 29.94 29.94 29.94 Powder Springs 37.25 37.96 38.21 38.46 38.71 38.76 37.25 37.25 37.25 37.25 Smyrna 34.78 35.39 35.64 35.89 36.14 36.19 35.18 35.18 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 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

129

Percentage Percentage of Total County of Total County

Taxpayer Taxes Levied Taxes Levied Georgia Power Co. $ 14,197,632 5.53% $ 2,826,135 1.25% Home Depot 5,978,842 2.33% 5,650,575 2.51% Ohio Teacher's Retirement Fund 3,007,721 1.17% 3200 Windy Hill Road Investments 1,815,734 0.81% Cobb EMC 2,554,848 1.00% 2,535,366 1.13% Lockheed Martin Corp 2,846,030 1.11% 2,311,856 1.03% CP Venture Five, LLC 1,841,370 0.72% ATT/BellSouth Telecommunication 3,277,531 1.28% 3,400,138 1.51% Post Properties 3,118,884 1.38% Cousins Properties 1,765,120 0.78% Inland Properties 1,989,471 0.88% GC Net Lease 2,082,318 0.81% UK Lasalle Inc. 2,161,589 0.84% Walton Properties 2,218,411 0.86% Wildwood Properties 3,035,124 1.35%

Source: Cobb County Tax Commissioner's Office

Fiscal Year 2016

Taxes Levied

Cobb County, Georgia Principal Property Tax Payers

Unaudited

Fiscal Year 2007

Taxes Levied

130

Fiscal Percentage of Percentage of Year Adjustments Original Levy Adjusted Levy

2007 $ 226,524,907 $ (1,246,479) 225,278,428 $ 37,148,299 $ 16.40% $ 186,898,340 $ 224,046,639 99.45%

2008 240,393,700 (1,195,186) 239,198,514 39,301,350 16.35% 198,061,151 237,362,501 99.23%

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% 160,303,621 219,996,747 99.46%

2011 246,978,483 (2,126,916) 244,851,567 124,618,748 50.46% 118,942,953 243,561,701 99.47%

2012 242,052,858 (4,729,609) 237,323,249 81,038,859 33.48% 153,335,330 234,374,189 98.76%

2013 233,824,893 (2,335,597) 231,489,296 77,847,895 33.29% 152,130,697 229,978,592 99.35%

2014 247,294,515 (2,934,282) 244,360,233 71,107,105 28.75% 172,242,916 243,350,021 99.59%

2015 257,918,079 (2,058,985) 255,859,094 71,060,722 27.55% 183,574,836 254,635,558 99.52%

2016 258,110,165 (1,474,013) 256,636,152 73,434,005 28.45% - 73,434,005 28.61%

Source: Cobb County Tax Commissioner's Office

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

10%

20%

30%

40%

50%

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Collection Percentage within the Fiscal Year of the Levy

131

Percentage Percentage Metered Annual of Total Metered Annual of Total

Customer Flow (Gallons) Revenues Revenues Flow (Gallons) Revenues Revenues

Cobb County Government 319,329,000 $ 2,192,266 1.25% 144,304,000 $ 1,173,969 0.94% Cobb County School System 191,247,000 2,000,025 1.14% 178,144,000 1,449,270 1.16% Kennesaw State University 123,187,000 1,012,883 0.58% 63,821,000 467,807 0.37% Georgia Power 125,303,000 702,204 0.40% - - - Wellstar Health System 74,921,000 658,286 0.38% 55,888,000 381,308 0.31% Home Depot 73,278,000 647,813 0.37% 56,524,000 369,602 0.30% YES Companies EXP2, LLC 67,424,000 645,117 0.37% - - - Walton River LP 56,642,000 556,579 0.32% - - - Cumberland Mall 40,055,000 393,190 0.22% - - - Lynx Chemical Group 34,139,000 386,255 0.22% 41,800,000 483,692 0.39% The Gardens of East Cobb - - - 46,551,000 343,133 0.27% Asian II Jupiter Mill LLC - - - 39,367,000 292,585 0.23% Hickory Lake LP - - - 39,613,000 290,946 0.23% Lakes of Vinings - - - 38,026,000 280,879 0.22% Total 1,105,525,000 $ 9,194,618 5.25% 704,038,000 $ 5,533,191 4.42%

*Information not available prior to 2008

(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. (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

2008*2016

132

Meter Size 2016 2015 2014 2013 2012 2011 2010 2009 2008

5/8 Inch 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 1 Inch 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 2.0 Inch 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 4.0 Inch 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 8.0 Inch 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 12.0 Inch 463.20 463.20 463.20 463.20 463.20 463.20 463.20 463.20 463.20

Source: Cobb County Water System *Information not available prior to 2008

Fiscal Year Minimum Monthly Charges

Unaudited Existing Water Rates

Cobb County, Georgia

133

Usage Block Monthly Usage (gals) 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$ 5.41$ 2.83$ 5.41$ 2.83$ 5.41$ Tier 2 (4,000 to 15,000) 4.36$ 4.36$ 4.36$ 4.36$ 4.36$ Tier 3 (16,000 to 29,000) 5.43$ 5.43$ 5.43$ 5.43$ 5.43$ Tier 4 (30,000 to 49,000) 6.36$ 6.36$ 6.36$ 6.36$ 6.36$ Tier 5 (50,000 and above) 8.25$ 8.25$ 8.25$ 8.25$ 8.25$

Non-Residential: 4.28$ 5.41$ 4.28$ 5.41$ 4.28$ 5.41$ 4.28$ 5.41$ 4.28$ 5.41$

Water Sewer Water Sewer Water Sewer Water Sewer

Residential: Tier 1 (1,000 to 3,000) 2.83$ 5.30$ 2.67$ 5.10$ 2.47$ 4.85$ 2.47$ 4.90$ Tier 2 (4,000 to 15,000) 4.11$ 3.88$ 3.62$ 3.59$ Tier 3 (16,000 to 29,000) 5.12$ 4.83$ 4.09$ 4.47$ Tier 4 (30,000 to 49,000) 6.00$ 5.66$ 4.80$ 5.24$ Tier 5 (50,000 and above) 7.78$ 7.34$ 6.86$ 6.80$

Non-Residential: 4.04$ 5.30$ 3.81$ 5.10$ 3.56$ 4.85$ 3.53$ 4.90$

Source: Cobb County Water System *Information not available prior to 2008

2016 2015 2014 2013 2012

2011 2010 2009

Cobb County, Georgia Existing Sewer Rates

Unaudited

Rate Per 1,000 Gallons Fiscal Year

2008

134

Detector Not Meter Size Meter (1) Metered (2)

6 Inch 50.00$ 200.00$ 8 Inch 60.00$ 250.00$ 10 Inch 80.00$ 300.00$ 12 Inch 110.00$ 350.00$

Permitting Total Fee Fiscal Year CCWS Portion Jurisdiction (3) Collected 2008-2015 2,400.00$ 500.00$ 2,900.00$

Source: Cobb County Water System *Information not available prior to 2008

(1) The actual water used is billed at normal retail user rates.

System Development Fees Unaudited

(2) Flat monthly charge. Any water that may be used is billed based on the main meter

reading for the building. (3) CCWS's non-regional fee is $500. Some CCWS wholesale customers charge a different

Cobb County, Georgia

2008-2016

Cobb County, Georgia Fire Sprinkler Service Charges

Unaudited

135

Description Water Sewer Total Water Sewer Total

CCWS (Existing 2015) 28.57$ 32.46$ 61.03$ 28.77$ 34.30$ 63.07$ CCWS (Projected 2016) (2) 28.57$ 32.46$ 61.03$ 31.08$ 35.67$ 66.75$

Other Public Utilities: Fulton County 21.57$ 37.89$ 59.46$ 24.59$ 43.63$ 68.22$ Paulding County 47.96$ 44.96$ 92.92$ ** ** ** City of Atlanta 42.78$ 108.32$ 151.10$ 36.01$ 91.40$ 127.41$ Cherokee County 32.20$ 40.40$ 72.60$ 34.20$ 44.60$ 78.80$

Douglas County 40.30$ 45.03$ 85.33$ 35.41$ 39.55$ 74.96$ Gwinnett County 36.60$ 51.92$ 88.52$ 34.32$ 34.37$ 68.69$ Coweta County 47.27$ 50.30$ 97.57$ ** ** ** Rockdale County 36.59$ 52.07$ 88.66$ 27.86$ 34.55$ 62.41$

Clayton County 34.20$ 36.47$ 70.67$ 31.12$ 31.22$ 62.34$ DeKalb County 17.65$ 74.93$ 92.58$ 12.31$ 46.87$ 59.18$

Average of Other Utilities 35.71$ 54.23$ 89.94$ 29.48$ 45.77$ 75.25$

Source: Cobb County Water System

*Information not available prior to 2008

**Information not available

Cobb County, Georgia Rate Comparison With Other Utilities (1)

Unaudited

2016

(2) Based on rate adjustments approved by the Board to become effective on January 1, 2012. The proposed rate adjustments will

only apply to the volumetric rate components.

2008* Fiscal Year

(1) Assumes a residential customer using 6,000 gallons of service per month.

136

Description 2016 2008

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 *Information not available prior to 2008

(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

137

Percentage Percentage Actual Value

Fiscal of Personal of Taxable Year Income Property

2007 $ 59,574,862 $ 9,380,967 $ 50,193,895 0.16% 0.06% $ 74.87

2008 68,024,060 8,732,742 59,291,318 0.19% 0.07% 87.22

2009 61,213,258 6,617,567 54,595,691 0.17% 0.06% 79.73

2010 54,097,458 8,244,274 45,853,184 0.15% 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 0.10% 0.04% 44.01

2013 33,920,141 9,841,774 24,078,367 0.08% 0.03% 33.58

2014 26,436,633 10,930,878 15,505,755 0.05% 0.02% 21.33

2015 18,638,155 12,611,608 6,026,547 0.02% 0.01% 8.21

2016 10,514,647 10,490,000 24,647 0.00% 0.00% -

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

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Cobb County's Net Bonded Debt

138

Estimated Percentage

Governmental Unit Applicable (1)

Cities Austell $ 303,887 100% $ 303,887 Kennesaw 10,105,000 100% 10,105,000 Marietta 90,440,000 100% 90,440,000 Powder Springs 6,290,000 100% 6,290,000

Total cities $ 107,138,887

Development Authorities Acworth $ 9,176,000 100% $ 9,176,000 Marietta 21,320,000 100% 21,320,000 Smyrna 45,375,000 100% 45,375,000

Total development authorities $ 75,871,000

Subtotal, overlapping debt $ 183,009,887

Total direct debt General Obligation Debt, net of premiums, discounts, and adjustments 10,514,647 Certificates of Participation 8,850,000 Revenue Anticipation Certificates, net of premiums 6,142,637 Governmental Revenue Bonds, net of premiums, discounts, and adjustments 481,049,001

Total direct debt $ 506,556,285

Total direct and overlapping debt $ 689,566,172

(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, 2016

Estimated

Unaudited

139

Assessed value of property $ 33,410,647,692 $ 31,279,057,426 $ 29,923,663,025 $ 28,814,578,201 $ 29,000,027,430

Debt limit, 10% of assessed value 3,341,064,769 3,127,905,743 2,992,366,303 2,881,457,820 2,900,002,743

Amount of debt applicable to limit - 5,828,392 15,134,122 23,533,226 31,121,859

General Obligation Bonds 10,490,000 18,440,000 26,065,000 33,375,000 40,370,000

Less: Resources restricted to paying principal (10,490,000) (12,611,608) (10,930,878) (9,841,774) (9,248,141)

Total net debt applicable to limit - 5,828,392 15,134,122 23,533,226 31,121,859

Legal debt margin $ 3,341,064,769 $ 3,122,077,351 $ 2,977,232,181 $ (23,533,226) $ 2,868,880,884

Total net debt applicable to the limit

as a percentage of debt limit 0.00% 0.19% 0.51% 0.82% 1.07%

Assessed value of property $ 29,710,645,634 $ 31,428,353,769 $ 33,757,593,994 $ 33,818,897,411 $ 32,572,081,456

Debt limit, 10% of assessed value 2,971,064,563 3,142,835,377 3,375,759,399 3,381,889,741 3,257,208,146

Amount of debt applicable to limit 38,341,262 45,235,726 53,682,433 58,082,258 48,689,033

General Obligation Bonds 47,070,000 53,480,000 60,300,000 66,815,000 58,070,000

Less: Resources restricted to paying principal (8,728,738) (8,244,274) (6,617,567) (8,732,742) (9,380,967)

Total net debt applicable to limit 38,341,262 45,235,726 53,682,433 58,082,258 48,689,033

Legal debt margin $ 2,932,723,301 $ 3,097,599,651 $ 3,322,076,966 $ 3,323,807,483 $ 3,208,519,113

Total net debt applicable to the limit

as a percentage of debt limit 1.29% 1.44% 1.59% 1.72% 1.49%

Source: Cobb County Tax Commissioner's Office

Fiscal Year

2016

2011

Cobb County, Georgia

2013

Unaudited

Legal Debt Margin Information

2009 2008

2014 2012

20072010

2015

$3,341,064,769

Legal Debt Information - Fiscal Year 2016

Amount of debt applicable to limit Legal debt margin

140

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

2007 $ 58,070,000 $ - $ - $ 144,870,000 $ 18,136,978 $ 135,565,000 $ 108,769 $ - $ * $ 356,750,747 1.11% $ 532.11

2008 66,815,000 - - 141,465,000 11,766,872 116,950,000 190,709 20,759,274 * 357,946,855 1.13% 526.53

2009 60,300,000 - - 137,865,000 19,055,578 236,025,000 102,032 69,257,915 * 522,605,525 1.76% 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 1.75% 762.66

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 1.80% 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 1.77% 784.33

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 1.67% 740.09

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 1.50% 677.65

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 2.55% 1,173.39

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 2.34% 1,118.27

* 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

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Debt Per Capita

141

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

2007 $ 184,031,381 $ 103,915,935 $ 80,115,446 $ 15,950,000 $ 6,103,350 $ 22,053,350 3.63

2008 155,667,100 102,378,852 53,288,248 16,330,000 5,305,850 21,635,850 2.46

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

(1) Depreciation expense not included.

(2) Includes non operating revenues and transfers in.

Cobb County, Georgia

Revenue Bond Coverage

Unaudited

142

General Obligation Bonds Year Ending

September 30 Principal Interest Principal Interest Principal Interest Principal Interest 2017 $ 8,305,000 $ 257,118 $ 9,720,000 $ 19,757,948 $ 12,845,000 $ 5,560,080 $ 30,870,000 $ 25,575,146 2018 2,185,000 35,506 13,795,000 19,418,609 13,260,000 5,151,085 29,240,000 24,605,200 2019 - - 14,270,000 18,997,327 13,705,000 4,727,264 27,975,000 23,724,591 2020 - - 14,820,000 18,507,756 14,165,000 4,287,620 28,985,000 22,795,376 2021 - - 15,425,000 17,968,617 14,670,000 3,800,247 30,095,000 21,768,864

2022-2026 - - 87,635,000 80,192,112 56,555,000 11,853,656 144,190,000 92,045,768 2027-2031 - - 70,320,000 63,501,327 27,685,000 2,320,257 98,005,000 65,821,584 2042-2046 - - 97,485,000 14,940,338 - - 97,485,000 14,940,338

2047 - - 10,995,000 247,388 - - 10,995,000 247,388 $ 10,490,000 $ 292,624 $ 477,610,000 $ 338,142,957 $ 152,885,000 $ 37,700,209 $ 640,985,000 $ 376,135,790

Total Primary Government Bonds

Cobb County, Georgia Annual Debt Service Requirements

Unaudited

Revenue BondsRevenue Bonds Governmental ActivitiesGovernmental Activities Business Type Activities

143

Per Capita County Personal Personal Unemployment

Population Income Income Rate Year (2) (1) (1) (2)

2007 670,440 32,249,690,000$ 48,102$ 3.5%

2008 679,820 31,744,830,000 46,695.93 6.2%

2009 684,780 29,643,900,000 43,289.67 9.6%

2010 689,750 30,144,950,000 43,704.17 9.5%

2011 697,550 30,776,120,000 44,120.31 8.4%

2012 707,170 31,338,650,000 44,315.58 7.3%

2013 716,950 32,029,550,000 44,674.73 7.1%

2014 726,850 32,765,870,000 45,079.27 6.0%

2015 733,860 33,827,430,000 46,095.21 4.9%

2016 741,334 35,410,880,000 47,766.43 4.5%

City Population

Acworth 22,131 Austell 7,107 Kennesaw 33,584 Marietta 59,067 Powder Springs 14,826 Smyrna 56,146

Total 192,861

Source: (1) Woods & Poole Economics 2016 Data Pamphlet (2) Office of Economic Development and Cobb Chamber of Commerce

Cobb County, Georgia Demographic and Economic Statistics

Unaudited

144

Percentage Percentage of Total County of Total County

Employer Industry Employees Employment Employees Employment Brand Energy & Infrastructure Holdings Retail 2,803 0.75% Cobb County Government Government 5,086 1.37% 5,427 1.20% Cobb County Schools Government 14,984 4.03% 15,533 3.43% Home Depot Retail 12,000 3.23% 6,276 1.39% Kennesaw State University Education 5,980 1.61% 3,185 0.70% Kroger Co. Retail 2,523 0.68% 1,898 0.42% Lockheed Martin Aircraft/Defense 5,100 1.37% 6,617 1.46% Publix Super Markets Retail 3,619 0.97% 3,215 0.71% Six Flags Over Georgia Theme Park 2,772 0.75% 2,240 0.49% Walmart Retail 2,660 0.59% Wellstar Health System Healthcare 11,596 3.12% 9,838 2.17%

Source: Office of Economic Development and Cobb Chamber of Commerce

Cobb County, Georgia Principal Employers

Unaudited

20072016

145

Year Permits Values Permits Values Permits Values

2016 939 310,783,719 4,786 1,060,620,960 5,725 1,371,404,679 2015 923 314,159,526 4,673 763,401,075 5,596 1,077,560,601 2014 938 277,097,942 6,414 318,658,575 7,352 595,756,517 2013 1,077 316,049,472 5,243 395,524,902 6,320 711,574,374 2012 734 203,691,614 4,933 377,565,829 5,667 581,257,443 2011 586 157,087,812 5,144 466,193,085 5,730 623,280,897 2010 467 107,288,665 5,041 267,126,934 5,508 374,415,599 2009 248 59,240,178 4,842 183,535,565 5,090 242,775,743 2008 617 159,861,048 7,232 503,751,188 7,849 663,612,236 2007 1,514 388,899,310 8,518 505,347,410 10,032 894,246,720

Source: Cobb County Building Inspections Department

Single Family Residence

Commercial Industrial, Other

Cobb County, Georgia Building Permits and Construction

Unaudited

Total New Construction

146

Total Deposits Year (in thousands)

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$ 2008 10,739,032$ 2007 10,026,064$

Source: Federal Deposit Insurance Corporation

Commercial and Saving Bank Deposit Unaudited

Combined Financial Institutional Statistics

Cobb County, Georgia

147

Function/Program 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 General government 1,102 1,174 1,141 1,148 1,150 1,141 1,143 1,170 1,175 1,169 Public safety 2,240 2,260 2,348 2,304 2,294 2,294 2,294 2,291 2,251 2,174 Public works 153 161 165 165 159 148 148 174 179 179 Health and welfare 45 67 46 45 43 53 53 59 58 57 Culture and recreation 288 447 292 291 318 318 318 331 338 336 Housing and development 93 110 90 88 92 92 93 103 112 112 Water 389 408 434 429 429 429 429 434 439 439 Solid waste 4 4 4 4 6 6 7 58 58 58

Total 4,314 4,631 4,520 4,474 4,491 4,481 4,485 4,620 4,610 4,524

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%

1% 7%

2% 9%

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

148

2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 General government

Vehicle tags issued 632,791 721,751 698,400 698,010 632,813 695,116 681,339 679,519 696,900 717,060 Public safety

E-911 calls 400,401 414,371 399,038 381,924 393,208 380,090 382,357 392,177 358,375 367,507 Police service calls 481,449 506,325 483,756 454,620 458,160 457,878 488,890 502,275 425,049 494,134 Fire/EMS dispatches 84,309 77,386 74,074 68,021 64,823 64,854 61,841 61,763 64,006 64,697

Public works Miles of road resurfacing 83.00 87.00 124.00 124.00 92.00 64.00 35.93 45.00 77.00 71.89

Health and welfare Number of child support cases 5,975 5,988 6,436 6,217 7,500 7,587 7,814 8,108 7,953 8,058

Culture and recreation Golf rounds played 41,334 39,940 38,795 42,014 44,848 40,385 24,198 40,414 46,715 47,242

Housing and development Building permits issued 5,725 5,596 7,352 6,319 5,667 5,730 5,508 9,014 11,912 10,032

Water Water accounts 180,886 179,882 177,969 176,207 174,837 176,406 175,688 175,075 174,709 173,725 Water Purchase 56,906,048 53,144,642 50,166,716 45,611,090 47,698,883 44,919,089 40,513,474 35,430,555 24,963,608 28,851,891 Sales 94,661,829 91,752,406 88,651,958 86,189,236 93,143,253 89,932,972 82,614,026 76,054,675 63,192,343 71,775,004 Daily average consumption

- 1,000 gal units 56,167 54,408 53,104 51,552 56,709 56,909 56,312 54,027 54,100 67,925 Solid waste

Solid waste and compost tonnage ** ** ** ** ** ** ** 144,661 167,642 156,389

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

149

2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 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 30 30 30 30 31 31 29 29 28

Public works Miles of road*** 2,426 3,290 3,228 3,275 3,256 3,451 3,418 3,393 2,434 2,492 Miles of sidewalks 1,227 1,225 1,210 1,186 1,174 1,160 1,146 1,130 1,100 1,080

Health and welfare Senior service centers 6 6 6 6 5 4 5 5 5 5

Culture and recreation County parks 77 77 77 77 77 77 77 75 74 66 County libraries 16 16 17 17 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 6 7 4 28 14 2 1 1 1 2

Water Miles of water mains* 3,282 3,215 2,907 3,150 3,133 3,130 3,121 3,086 3,062 3,023 Miles of sewers* 2,623 2,593 2,607 2,603 2,605 2,596 2,611 2,582 2,576 2,558

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

150

Wyckoff Quarles Wyckoff Quarles Description Plant Plant Plant Plant

Water Treatment (MGD) 72.00 86.00 72.00 86.00 Raw Water Pumping (MGD) 84.00 96.00 84.00 96.00 Treated Water Pumping (MGD) 100.00 125.00 100.00 125.00 Raw Water Storage (MG) - 18.00 - 18.00 Clear Well Storage (MG) 6.00 8.00 6.00 8.00 Potable/Finished Water Storage (MG)

Existing Capacity Existing Capacity Treatment Plant Date in Service Capacity Used (%) Capacity Used (%) R.L. Sutton 1973 60.00 45% 60.00 55% South Cobb 1964 40.00 59% 40.00 58% Noonday 1973 20.00 49% 20.00 45% Northwest 1987 12.00 54% 12.00 58% Total 132.00 132.00

Source: Cobb County Water System

*Information not available prior to 2008

Fiscal Year 2016 2008

Cobb County, Georgia Existing Authority Water & Sewer Treatment System Capacities

Unaudited

2016 2008 Fiscal Year

Combined 35.60

(1) At the Wyckoff Plant, no raw water storage is utilized. The source water is taken directly from the

Allatoona Reservoir.

Combined 35.60

151

Fiscal Year Accounts % Change Accounts % Change

2007 173,725 1.23% 140,717 1.23% 2008 174,709 0.57% 144,135 2.43% 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%

Source: Cobb County Water System

Water Sewer

Cobb County, Georgia Historical System Accounts

Unaudited

152

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 Single Audit with the independent auditor’s report on compliance, a Schedule of Expenditures of Federal Awards with notes and an illustrative Schedule of Findings and Questioned Costs. It also contains 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 15 c2- 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, 2016

Estimated

Original Revised Expenditures Percentage

Estimated Estimated Prior Current of

Project Cost Cost Years Year Total Completion

2005 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 63,000,000 62,358,848 - 62,358,848 98.98%

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 525,324,286 541,263,832 474,611,329 10,686,053 485,297,382 89.66%

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 $ 862,046,324 $ 794,752,668 $ 10,686,053 $ 805,438,721 93.43%

2011 SPLOST:

Facilities $ 16,748,420 $ 24,122,397 $ 15,341,667 $ 1,637,408 $ 16,979,075 70.39%

Parks 82,023,000 87,098,000 55,512,098 17,314,476 72,826,574 83.61%

Public Safety

Equipment 10,931,400 9,615,278 9,293,416 - 9,293,416 96.65%

800Mhz Communication System 1,965,000 1,965,000 1,961,502 - 1,961,502 99.82%

Transportation:

Cobb County 250,885,000 349,541,992 178,617,602 67,831,758 246,449,360 70.51%

City of Acworth 13,323,141 14,468,360 13,484,977 980,039 14,465,016 99.98%

City of Austell 4,672,186 5,073,793 4,728,938 343,682 5,072,620 99.98%

City of Kennesaw 22,107,998 24,008,337 22,376,542 1,626,246 24,002,788 99.98%

City of Marietta 44,799,421 48,650,249 45,343,597 3,295,407 48,639,004 99.98%

City of Powder Springs 10,678,598 9,716,937 8,933,311 660,509 9,593,820 98.73%

City of Smyrna 33,934,318 38,851,214 36,221,516 2,621,179 38,842,695 99.98%

Program Total $ 492,068,482 $ 613,111,557 $ 391,815,166 $ 96,310,704 $ 488,125,870 79.61%

2016 SPLOST:

Facilities $ 23,228,600 $ 23,283,464 $ 49,174 $ 3,017,002 $ 3,066,176 13.17%

Libraries 23,203,167 25,203,167 - 392,569 392,569 1.56%

Technology 30,079,000 30,079,000 - - - 0.00%

Parks 77,508,779 77,508,779 16,177 2,093,440 2,109,617 2.72%

Public Health 6,500,000 6,500,000 130,351 2,485,392 2,615,743 40.24%

Public Safety 115,051,584 144,945,482 2,989,590 28,227,348 31,216,938 21.54%

Senior Services 2,201,580 2,201,580 - - - 0.00%

Transportation:

Cobb County 287,331,467 326,141,979 392,085 18,077,970 18,470,055 5.66%

City of Acworth 21,208,827 21,208,827 - 2,905,187 2,905,187 13.70%

City of Austell 6,725,280 6,725,280 - 921,229 921,229 13.70%

City of Kennesaw 31,602,891 31,602,891 - 4,328,967 4,328,967 13.70%

City of Marietta 58,353,902 58,353,902 - 7,993,322 7,993,322 13.70%

City of Powder Springs 14,231,720 14,231,720 - 1,949,462 1,949,462 13.70%

City of Smyrna 52,773,203 52,773,203 - 7,228,877 7,228,877 13.70%

Program Total $ 750,000,000 $ 820,759,274 $ 3,577,377 $ 79,620,765 $ 83,198,142 10.14%

153

Cobb County, Georgia

Water and Sewer Enterprise Fund

Comparative Statements of Revenues and Expenses

For the Fiscal Years Ended September 30, 2016 and 2015

2016 2015

Operating revenues:

Water sales $ 94,661,829 $ 91,752,406

Sewer sales 104,003,498 100,988,066

Water connection charges 4,937,514 4,469,145

Sewer connection charges 2,187,791 1,609,241

Other 844,768 560,271

Total operating revenues $ 206,635,400 $ 199,379,129

Operating expenses:

Administrative $ 24,049,731 $ 19,772,624

Engineering 2,731,410 2,735,267

Water operations 65,705,185 61,603,567

Sewer operations 42,373,693 42,572,675

Total operating expenses $ 134,860,019 $ 126,684,133

Operating income before depreciation $ 71,775,381 $ 72,694,996

Less depreciation (42,221,543) (40,973,997)

Operating income $ 29,553,838 $ 31,720,999

Nonoperating revenues (expenses):

Interest income $ 185,519 $ 87,135

Interest and fiscal charges (5,653,337) (6,023,749)

Amortization 614,720 640,722

Gain from sale of capital assets 229,941 27,779

Total nonoperating revenues (expenses) $ (4,623,157) $ (5,268,113)

Net income before transfers and capital contributions $ 24,930,681 $ 26,452,886

Capital contributions $ 17,829,558 $ 12,255,060

Total capital contributions $ 17,829,558 $ 12,255,060

Transfers:

Transfers in $ 24,683 $ 27,051

Transfers out (12,857,526) (14,561,185)

Total transfers $ (12,832,843) $ (14,534,134)

Change in net position $ 29,927,396 $ 24,173,812

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).

154

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

Kennesaw, Georgia 30144 770-422-0598 FAX 678-214-2355

[email protected]

155 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 | M a r i e t t a | R o m e | W a r n e r R o b i n s

INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL

STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

The Honorable Mike Boyce, Chairman Members of the Cobb County Board of Commissioners Cobb County, Georgia

We have audited, in accordance with the 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, the financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Cobb County, Georgia as of and for the year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise Cobb County, Georgia’s basic financial statements and have issued our report thereon dated March 14, 2017.

Internal Control Over Financial Reporting

In planning and performing our audit of the financial statements, we considered Cobb County, Georgia’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Cobb County, Georgia’s internal control. Accordingly, we do not express an opinion on the effectiveness of Cobb County, Georgia’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

Compliance and Other Matters

As part of obtaining reasonable assurance about whether Cobb County, Georgia’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

156

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Kennesaw, GA

March 14, 2017

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

Kennesaw, Georgia 30144 770-422-0598 FAX 678-214-2355

[email protected]

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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 | M a r i e t t a | R o m e | W a r n e r R o b i n s

INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE IN

ACCORDANCE WITH THE UNIFORM GUIDANCE

The Honorable Mike Boyce, Chairman Members of the Cobb County Board of Commissioners Cobb County, Georgia

Report on Compliance for Each Major Federal Program

We have audited Cobb County, Georgia’s compliance with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Compliance Supplement that could have a direct and material effect on each of the Cobb County, Georgia’s major federal programs for the year ended September 30, 2016. Cobb County, Georgia’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.

Management’s Responsibility

Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs.

Auditor’s Responsibility

Our responsibility is to express an opinion on compliance for each of Cobb County, Georgia’s major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about Cobb County, Georgia’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances.

We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of Cobb County, Georgia’s compliance.

Opinion on Each Major Federal Program

In our opinion, Cobb County, Georgia, complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended September 30, 2016.

158

Report on Internal Control Over Compliance

Management of Cobb County, Georgia, is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered Cobb County, Georgia’s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of Cobb County, Georgia’s internal control over compliance.

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.

Kennesaw, GA

March 14, 2017

COBB COUNTY, GEORGIA SCHEDULE OF FINDINGS AND QUESTIONED COSTS

For the Fiscal Year Ended September 30, 2016

159

Section I—Summary of Auditor’s Results

Financial Statements

Type of auditor’s report issued: unmodified Internal control over financial reporting: Material weakness identified? yes X no Significant deficiency identified not considered to be material weaknesses? yes X none reported

Noncompliance material to financial statements noted? yes X no

Federal Awards

Internal Control over major programs: Material weakness identified? yes X no Significant deficiency identified not considered to be material weaknesses? yes X none reported

Type of auditor’s report issued on compliance for major programs: unmodified

Any audit findings disclosed that are required to be reported in accordance with

2 CFR section 200.516(a)? yes X no

Identification of major programs:

CFDA Number Name of Federal Programs 14.239 Home 20.507 Federal Transit - Formula Grants 93.667 Social Services Block Grant

Dollar threshold used to distinguish between Type A and Type B programs: $ 976,899

Auditee qualified as low-risk auditee? X yes no

COBB COUNTY, GEORGIA SCHEDULE OF FINDINGS AND QUESTIONED COSTS

For the Fiscal Year Ended September 30, 2016

160

Section II- Financial Statement Findings

None Reported

Section III - Federal Award Findings

None Reported

Federal Pass-Through Passed Federal Grantor/Pass-Through Grantor CFDA Grantor's Through to

Program Title Number Number Subrecipients Expenditures

U. S. Department of the Interior Pass-through: Ga. Office of Treasury and Fiscal Services Payments to States in Lieu of Real Estate Taxes 15.226 UNKNOWN -$ 23,035$

Total for U. S. Department of Interior - 23,035

U. S. Department of Homeland Security Pass-through Georgia Emergency Management Agency:

GA Dept of Homeland Security Grant -EOD Canine Program 97.067 2014-SS-00092-S01 - 1,940 GA Dept of Homeland Security Grant - SHSP Program 97.067 2015-SS-00065-S01 - 51,600

- 53,540

GA Dept of Homeland Security Grant - EMPG Program 97.042 OEM15-034 - 83,124 GA Dept of Homeland Security Grant - EMPG Program 97.042 OEM16-034 - 16,201

- 99,325

GA Dept of Homeland Security Grant - SHSG Program 97.073 2015-SS-00065-S01 - 25,000

Total for U. S. Department of Homeland Security - 177,865

U.S. Department of Health and Human Services Pass-through Georgia Department of Human Resources: Community Services Block Grant 93.569 42700-040-0000009912 - 636,629

Child Support Enforcement 93.563 42700-401-0000040046 - 728,468 Child Support Enforcement 93.563 42700-401-0000049820 - 359,555

- 1,088,023 Pass-through Atlanta Regional Commission: Social Services Block Grant 93.667 AG1608 - 633,203

Aging Cluster Special Programs for the Aging - Title III, Part B 93.044 AG1608 - 635,907 Special Programs for the Aging - Title III, Part C 93.045 AG1608 - 537,493

Nutrition Services Incentive Program 93.053 AG1608 - 408,986 - 1,582,386

National Family Caregiver Support Title III, Part E 93.052 AG1608 - 210,086

Total for U. S. Department of Health and Human Services - 4,150,327

COBB COUNTY, GEORGIA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

For the Fiscal Period Ending September 30, 2016

161

Federal Pass-Through Passed Federal Grantor/Pass-Through Grantor CFDA Grantor's Through to

Program Title Number Number Subrecipients Expenditures

COBB COUNTY, GEORGIA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

For the Fiscal Period Ending September 30, 2016

U.S. Department of Housing and Urban Development Direct Grants: Community Development Block Grant/Entitlement 14.218 B-16-UC-13-0002 - 3,677,952 Community Development Block Grant/Entitlement 14.218 B-08-UN-13-0002 - 918 Community Development Block Grant/Entitlement 14.218 B-12-UN-13-0002 - 300

- 3,679,170

Home Investment Partnership 14.239 M-13-DC-13-201 - 1,849,506

Emergency Solutions Grants Program 14.231 S-13-UC-13-0008 - 317,616

Total for U. S. Department of Housing and Urban Development - 5,846,292

U.S. Department of Justice Direct Grants: Office of Justice Programs:

State Criminal Alien Assistance Program 16.606 -- - 18,023 Equitable Sharing - MCS Asset Forfeiture Program 16.922 -- - 820

Office on Violence Against Women Programs: Sexual Assault Justice Initiative Grant 16.590 2016-SI-AX-K002 - 40,665

Pass-through Administrative Office of the Courts Victims of Crime 16.575 C13-8-103/C14-8-108/C15-8-153 - 132,840

Pass-through Georgia Criminal Justice Coordinating Council: Juvenile Justice and Delinquency Prevention 16.540 2014-JF-FX-0209 - 262,611 Juvenile Justice and Delinquency Prevention 16.540 2015-JF-FX-0001 - 66,216

- 328,827

Veterans Treatment Court 16.744 2014-VV-BX-0058 - 57,391

Pass-through Metro Atlanta Project Pact: Edward Byrne Memorial Justice Assistance Grant Program 16.738 2013-DJ-BX-3491 - 26,418 Edward Byrne Memorial Justice Assistance Grant Program 16.738 2014-DJ-BX-3491 - 7,207 Edward Byrne Memorial Justice Assistance Grant Program 16.738 2015-DJ-BX-3491 - 52,651 Edward Byrne Memorial Justice Assistance Grant Program 16.738 2016-DJ-BX-3491 - 7,900

- 94,176

Total for U. S. Department of Justice - 672,742

162

Federal Pass-Through Passed Federal Grantor/Pass-Through Grantor CFDA Grantor's Through to

Program Title Number Number Subrecipients Expenditures

COBB COUNTY, GEORGIA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

For the Fiscal Period Ending September 30, 2016

U.S. Department of Labor Pass through Governors Office of Workforce Development Workforce Investment Act (WIA)

WIA Cluster Adult Program 17.258 11-14-14-03-004 17,783 17,783

17.258 11-15-15-03-004 109,330 109,330 17.258 11-14-15-03-004 355,149 355,149 17.258 11-15-16-03-004 1,413,066 1,413,066

1,895,328 1,895,328

Youth Program 17.259 15-15-15-03-004 795,856 795,856 17.259 15-16-16-03-004 601,509 601,509

1,397,365 1,397,365

Dislocated Worker Program 17.278 19-13-14-03-004 26,007 26,007 17.278 44-14-14-03-004 292 292 17.278 31-14-14-03-004 4,629 4,629 17.278 31-15-15-03-004 240,868 240,868 17.278 31-14-15-03-004 414,746 414,746 17.278 31-15-16-03-004 270,350 270,350 17.278 21-13-14-03-004 26,164 26,164

983,056 983,056

4,275,749 4,275,749

Total for U. S. Department of Labor 4,275,749 4,275,749

U.S. Department of Transportation Direct Grants: Federal Transit Administration - Formula Grants Operating 20.507 -- - 1,819,732 Planning 20.507 -- - 212,618 Job Access and Reverse Commute Program 20.507 -- - 333,424 Mobility Management 20.507 -- - 12,651,180 Capital Improvements 20.507 -- - 2,177,577

- 17,194,531

Airport Imp Program 20.106 -- - 76,657

Total for U.S. Department of Transportation - 17,271,188

U. S. Department of Treasury Direct Grants:

Social Security-Inmate Reporting Incentives 21.UNKNOWN -- - 69,800 Equitable Sharing/Asset Forfeiture Program 21.UNKNOWN -- - 76,315

Total for U.S. Department of the Treasury - 146,115

Total Schedule of Federal Assistance 4,275,749$ 32,563,313$

163

164

COBB COUNTY, GEORGIA NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

For the Fiscal Year Ended September 30, 2016

Note 1. General

The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal awards received by Cobb County, Georgia (the County). All federal awards received directly from federal agencies, as well as federal awards passed through other government agencies, is included in this schedule.

Note 2. Basis of Accounting

The accompanying Schedule of Expenditures of Federal Awards is presented using the modified accrual basis of accounting which is described in Note 1C to the County’s basic financial statements. Expenditures are recognized following the applicable cost principles contained in either Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”) or the OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments, wherein certain types of expenditures are not allowable or are limited as to reimbursement.

Note 3. Relationship to Federal Financial Reports

Amounts reported in the accompanying schedule agree with the amounts reported in the related federal financial reports.

Note 4. Indirect Cost Rates

The County has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.

165

COBB COUNTY, GEORGIA SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS

For the Fiscal Year Ended September 30, 2016

NONE REPORTED