December 28, 2016

Mr. McArthur

then touched on some highlights of the audi t. Page 70 of the audit report showed the assets and liabilities of the general fund, and Mr. McArthur pointed to the fund balance area. He reminded the Commissioners of actio n taken to transfer money into this fund from some of the PETT funds for fund stabilizat ion. Under fund balance it showed $5.8 million committed to fund stabilization. The cash balance of the general fund at the end of the year was $6,005,000.00. Page 71 showed a summary of the revenue and expenditu res for the year. The third column showed the variance positive/negative and there were no negative entries, meaning no fund budget violations in the general fund this year. This page also showed operating transfers in of $4,941 ,000.00 from the closure of the PETT funds. The general fund balance had improved from last year to $6,6 89,000.00 with $5.8 million of that committed fund stabilization money.

Mr. McArthur

then turned to page 318 of the report. There was a requirement to review any comments, recommendations or statutory findings that were noted during the audit report. There were no current year comments. The prior year recommendations included timely reconciliation and bank reconciliation, and starting in January the Commissioners had received the Treasurer’s report on a mon thly basis so Mr. McArthur’s comment was that the timely reconciliation bega n in January, 2016. There was also a prior comment regarding the investment of prior income and that had also been timely since 2016.

Mr. McArthur

stated he had to note any deficit fund balance that existed. Last year there were two and this year there was one, the Pahrump town ambulance fund with a deficit of $1,684,769.00. He explained the deficit was caus ed by the estimated net pension liability and would continue indefinitely unless that net pension liability turned around at the State level with the PERS system. Page 319 showed the expenditures in excess of appropria tions. There were two funds that met that, the Public Safety Sales Tax Sheriff Fund and the Gabbs Utility Enterprise Fund. The Gabbs town over-expenditure was basically due to depreciation expense that was budgeted at less than it actually was. A new wate r system went into service causing a significant depreciation increase in the fund, so the correction was to budget a higher depreciation expense. December28, 2076 3. For Possible Action Discussion and deliberation to appr ove the audits of fiscal year 2015-2016 for Nye County and all component units of Nye County conducted by Daniel McArthur, LTD.-Cont’d. Regarding the Sheriff’s fund, Mr. McArthur said last year there was concern about the proper administration of the public safety sales tax. When the budget was prepared for 2016 $867,000.00 was budgeted to be spent from a different fund than what it was spent from. The intent was that during the 15/16 year the Commission was to adopt a resolution to open all the funds, which was done, and then create budgets for the new funds. Mr. McArthur advised that was not done until the 2017 year, so the budget was not in place for the 1 5/76 year creating the violation.

Mr. McArthur

stated another finding was public safety sales tax expend iture compliance. There was a requirement for each town board to approve expenditures of the public safety sales tax money for the year ending June 30, 2016, but there was no approval by some incorporated towns for expenditure of this money. In order to correct this Mr. McArthur advised the expenditure plans had to be taken to the town boards for their approval, but because those did not go before the town boards the expenditures made this year may be non-compliant.

Commissioner Schinhofen

asked who was to send those to the town boards to get their approval.

Mr. McArthur

said the fire people and Sheriff would go.

Commissioner Carbone

commented that some of the town boards had in their board meetings to do something with regard to the safety tax money, but he was not sure how it has been coordinated with the Sheriff.

Mr. McArthur

said based on his discussions with the town boards there had been some talk to combine the funds to use more efficiently. He understood that subsequent to June 30, 2016, plans were submitted to the unincorporated towns so he was looking at the prior year (15/16) expenditures.

Sheriff Wehrly

said in 2015 she want to Amargosa and Beatty. They provided a letter, which was set before the town boards, and agreed to provide x amoun t of money for law enforcement. However, the PSST funds were not available. They went back again this year and did the same thing. They had also done the same thing with Tonopah, which Sheriff Wehrly believed had gone before the town board for an agreement to use some of the PSST money.

Mr. McArthur

clarified that the potential compliance issues he was talking about concerned Pahrump and Tonopah, not Beatty and Amargosa. December28, 2016 3. For Possible Action Discussion and deliberation to approve the audits of fiscal year 2015-2016 for Nye County and all compone nt units of Nye County conducted by Daniel McArthur LTD.-Cont’d.

Mr. McArthur

discussed the capital asset inventory and the requirement the inventory take place every two years, which had not been completed. He knew staff was working on it and he anticipated it being completed in 16/17.

Mr. McArthur

said he specifically wanted to talk today abou t the general fund and directed the Commissioners to page 11 of the report, whic h was a consolidation of all of the activity of the County combined rather than several indiv idual funds. At the end of the year total cash and investments was $60,399,389. and 00 total assets was almost $200 million, including capital assets of $122 million. The net position of the County at the end of the year was $86,075,169.00, an increase from the prior year’s $83,467,000.00, which indicated to Mr. McArthur that thing s were getting better.

Commissioner Schinhofen

asked where the landfill closure costs were at as he had heard conflicting statements about whether there was enou gh.

Mr. McArthur

said the solid waste enterprise fund was show n on page 86 of the report. Under the liability section was the landfill closure and post closure costs with an estimated liability of $1,710,510.00. The restricted asset s cash was shown at $7,542,000.00, so the County had money set aside to close and open landfills. The question would be how much money it would take to open a new landfill, which Mr. McArthur did not know.

Mr. McArthur

talked about the long-term debt of the County shown on page 56. Under governmental activities the net pension liability was show n as $49 million. The estimated liability for retiree insurance payments was $24, 180,000.00. Out of those two liabilities, the retiree insurance obligation would continue to grow. An actuarial study would be done this year to see the status of where that liabilit y may lie.

Commissioner Schinhofen

made a motion to accept; seco nded by Commissioner Wichman; 5 yeas. SITTING AS THE GOVERNING BODY OF THE UNICORPOR ATE D TOWN OF PAHRUMP

Mr. McArthur

said Pahrump town had over 20 funds, but he wanted to talk about the general fund specifically. Page 221 showed revenues for the year, budgeted and actual, and the prior year comparison. There were no budg et violations with the Pahrump town fund. He pointed out the third line from the bottom, net change in fund balance, which increased $1,001,088.00 over last year. The fund balance of the Pahrump town general fund was very strong at $5,153,0 00.00. Expenditures for the December 28, 2016 7. For Possible Action Discussion and deliberation to approve the audits of fiscal year 201 5-2016 for the Town of Pahrump conducted by Daniel McArthur, LTD.-Cont’d. year were $3,455,000.00, resulting in an ending fund balance of more than a year of expenditures. Mr. McArthur also commented that the bad debt expense for the Pahrump ambulance for the year was less this year than it had been for the prior four or five years due to collection efforts.

Commissioner Schinhofen

made a motion to accept; seconded by Commissioner Wichman; 5 yeas. SITTING AS THE BOARD OF TRUSTEES FOR THE PAHRUMP POOL DISTRICT

Mr. McArthur

said the Pahrump Pool District financial statements were shown on pages 228 and 229. The pool district had one fund and there were no budget violations. The pool district had an ending fund balance of $261,000.00, which was $19,500.00 higher than the prior year. Expenditures were $164,000.00, so similar to the Pahrump town general fund this fund and district were in good financial shape.

Commissioner Schinhofen

made a motion to accept; seconded by Commissioner Wichman; 5 yeas. AS THE NORTHERN NYE COUNTY HOSPITAL DISTRICT BOARD OF TRUSTEES

Mr. McArthur

said this was the first year of operations for the district with taxes levied beginning July, 2015, so there was not a lot to talk about. He did issue an opinion on the financial statement indicating they were fairly presented. Revenues for the year were $709,000.00, which included real property tax, personal property tax, and net proceeds of minerals. The investment income was $4,564.00. There were no budget violations.

Commissioner Schinhofen

made a motion to accept; seconded by Commissioner Wichman; 5 yeas. December 28, 2016 SITTING AS THE BOARD OF COUNTY COMMISSIONERS 4. For Possible Action Discussion and deliberation to appr ove an amendment to the Nye County Law Enforcement Association Agre ement.

Commissioner Schinhofen

made a motion to approve; seconded by Commissioner Wichman. Angela Bello stated there were several clerical and grammati cal changes, but nothing substantive. However, on page 42, the discipline matrix, accid ental discharge of a firearm needed to be added as a Category B violation and unlawf ul misuse of force was moved from a D down to an E.

Commissioner Schinhofen

amended his motion to reflect thos e changes; Commissioner Wichman amended her second; 5 yeas. 5. For Possible Action Discussion and deliberation regarding the appointment of a County Health Officer pursuant to NRS 439.290.

Commissioner Carbone

made a motion to appoint Maureen Budahl; seconded by

Commissioner Schinhofen

; 5 yeas. 6. For Possible Action — Discussion and deliberation regarding the jail inma account report. te

Commissioner Carbone

advised this item would be moved to the January 17, 2017, Commission meeting in Pahrump.

Commissioner Carbone

thanked the Board for supporting him and thanked staff for everything they did for him.

Commissioner Carbone

adjourned the meeting. APPROVED this 7 day ATTEST: Of ,2017. c’Pj ‘s—” -c1Q() NyekDoity blerk I Deputy