HANCOCK COUNTY TABLE OF CONTENTS FINANCIAL SECTION_part4 ppt

As Lessee: The following is a schedule by years of future minimum rental payments required under operating leases that have initial or remaining noncancelable lease terms in excess of on

Interfund Interfund Receivables Payables Agency Funds:

Advances to/from Other Funds

Special Revenue Funds:

Debt Service Fund:

(10) Fixed Assets

Activity in the General Fixed Assets Group for the primary government for the year ended September 30, 1995, was as follows:

Oct 1, 1994 Additions Deletions Sept 30, 1995

Activity in the General Fixed Assets Group for the governmental component units for the year ended September 30, 1995, was as follows:

Oct 1, 1994 Additions Deletions Sept 30, 1995

The following is a summary of Proprietary Fund Type fixed assets for the proprietary component units at September 30, 1995:

Port and Harbor Medical

(11) Claims and Judgments

Risk Financing

The county is exposed to risk of loss related to workers' compensation for injuries to its employees On

August 1, 1990, the county decided to stop carrying workers' compensation insurance because of its prohibitive cost and joined the Mississippi Public Entity Workers' Compensation Trust, a public entity risk pool, to cover its exposure to risk of loss The pool was formed on January 1, 1990, by the Mississippi Association of

Supervisors, Inc., pursuant to Section 71-3-75, Miss Code Ann (1972), to provide workers' compensation

insurance for the benefit of participating counties and various other political subdivisions in the State of

Mississippi The county pays premiums to the pool for its workers' compensation insurance coverage and the participation agreement provides that the pool will be self-sustaining through member premiums The retention for the pool is $350,000 for each accident and completely covers all statutory limits set by the Workers'

Compensation Commission Risk of loss is remote for claims exceeding the pool's retention liability However, the pool also has catastrophic reinsurance coverage of $1,000,000 per accident, provided by Employers

Reinsurance Corporation, effective from January 1, 1995 to January 1, 1996 The pool may make an overall supplemental assessment or declare a refund depending on the loss experience of all the entities it insures

The county is also exposed to risk of loss relating to employee health and accident coverage On

September 1, 1990, the county joined the Mississippi Association of Supervisors Employee Benefit Trust, a public entity risk pool, to account for and finance its uninsured risk of loss The pool was formed by the Mississippi Association of Supervisors, Inc., pursuant to Section 25-15-101, Miss Code Ann (1972), to provide health and accident insurance for the benefit of participating counties in the State of Mississippi Premium payments to the pool are determined on an actuarial basis The pool services all claims for risk of loss to which the county is exposed The county purchases commercial insurance to cover all claims in excess of premium contributions Claims expenses and liabilities are reported when it is probable that a loss has occurred and the amount of that loss can be reasonably estimated

At September 30, 1995, there was no liability because the county's cash on deposit in risk pool exceeded the pool's accrued unpaid claims at year end in the amount of $190,773, reported on the combined balance sheet in the following fund types:

(12) Lease Obligations

As Lessee:

The following is a schedule by years of future minimum rental payments required under operating leases that have initial or remaining noncancelable lease terms in excess of one year as of September 30, 1995:

Primary Government

Amounts Year Ended September 30:

Hancock Medical Center

Year Ended September 30:

The total rentals for the primary government amounted to $8,649 for the fiscal year ended September 30, 1995 Capital

As Lessee:

The following is an analysis of property leased under capital leases by major classes as of September 30, 1995:

General Fixed Assets

Leased Property of the Primary Government

The Hancock Medical Center has various capital leases which expire at various dates For capital leases, the equipment

is recorded as mobile equipment subject to depreciation.

The following is a schedule by years of future minimum lease payments payable under capital leases together with the present value of the net minimum lease payables as of September 30, 1995:

Primary Government

General Long-term Debt Group Year Ending September 30:

Later years

Hancock Medical Center

Proprietary Component Unit Year Ending September 30:

(13) Long-term Debt

The following individual liabilities are reported on the combined balance sheet at September 30, 1995:

Final

Primary Government

General Long-term Debt Account Group

A General Obligation Bonds:

B Capital Leases:

C Other Loans:

Component Units - Proprietary

Final

A General Obligation Bonds:

B Capital Leases:

Various mobile equipment leases

C Other Loans:

* Hospital refunding bonds are shown on the balance sheet net of unamortized discounts of $132,120.

Annual requirements to amortize outstanding long-term debt reported in the General Long-term Debt Account Group are as follows:

Annual requirements to amortize outstanding long-term debt reported in proprietary component units are as

follows:

Legal Debt Margin - The amount of general obligation bonded debt that can be incurred by the county is limited

by state statute Total outstanding general obligation bonded debt during a year can be no greater than 15% of assessed value of the taxable property within the county, according to the then last completed assessment for taxation However, the limitation is increased to 20% whenever a county issues bonds to repair or replace

washed out or collapsed bridges on the public roads of the county As of September 30, 1995, the amount of outstanding general obligation bonded debt was equal to 3.38% of the latest property assessments

Prior Year Defeasance of Debt - In prior years, the county defeased certain general obligation bonds by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old

bonds Accordingly, the trust account assets and the liability for the defeased bonds are not included in the

county's financial statements On September 30, 1995, $1.46 million bonds outstanding were considered

defeased

The following changes occurred in liabilities reported at year end:

General Long-term Debt Account Group:

Governmental Component Units:

Proprietary Component Units:

* General obligation bonds payable is shown on the balance sheet net of unamortized discounts in the amount of $132,120. (14) Contingencies

Federal Grants - The county has received federal grants for specific purposes that are subject to audit by the

grantor agencies Entitlements to these resources are generally conditional upon compliance with the terms and conditions of grant agreements and applicable federal regulations, including the expenditure of resources for allowable purposes Any disallowance resulting from a grantor audit may become a liability of the county Litigation - The county is party to legal proceedings, many of which occur in the normal course of governmental operations It is not possible at the present time to estimate ultimate outcome or liability, if any, of the county with respect to the various proceedings However, the county's legal counsel believes that ultimate liability resulting from these lawsuits will not have a material adverse effect on the financial condition of the county General Obligation Debt Contingencies - The county is contingently liable for certain obligations which are

repaid by governmental entities The principal amount of such debt outstanding at year end consists of the

following:

Balance Styling September 30, 1995

General obligation hospital bonds and notes $ 9,530,000

(15) No Commitment Debt (Not Included in Financial Statements).

No commitment debt is repaid only by the entities for whom the debt was issued and includes debt that either bears the county's name or for which a moral responsibility may exist that is not an enforceable promise to pay

No commitment debt explicitly states the absence of obligation by the county other than possibly an agreement

to assist creditors in exercising their rights in the event of default Because a default may adversely affect the county's own ability to borrow, the principal amount of such debt outstanding at year end is disclosed as

follows:

Balance Styling September 30, 1995

(16) Related Organization

The county Board of Supervisors is responsible for appointing a voting majority of the members of the board of the Hancock County Wastewater District, but the county's accountability for this organization does not extend beyond making the appointments During the year, the county wrote off a loan receivable in the amount of

$7,500 which was owed by this organization The county provided no financial support to this organization during the year

(17) Joint Ventures

The county participates in the following joint ventures:

Hancock County is a participant with the Cities of Pass Christian and Waveland in a joint venture, authorized by Section 49-17-171, Miss Code Ann (1972), to operate the Southern Regional Wastewater Management District The joint venture was created to provide wastewater management and is governed by a three member board with each entity appointing one board member By contractual agreement, the county's appropriation to the joint venture this year was $377,152 Complete financial statements for the district can be obtained from the director

Hancock County is a participant with the Cities of Bay St Louis and Waveland in a joint venture, authorized by Section 39-3-8, Miss Code Ann (1972), to operate the Hancock County Library System The joint venture was created to provide library services and is governed by a five member board Hancock County and Bay St Louis each appoint two board members and Waveland appoints one board member By contractual agreement, the county's appropriation this year to the joint venture was $367,184 Complete financial statements for the library can be obtained from the Hancock County Library Board

(18) Jointly Governed Organizations

The county participates in the following jointly governed organizations:

Pearl River Community College operates in a district composed of the Counties of Hancock, Pearl River, Lamar, Marion, Jefferson Davis and Forrest The Hancock County Board of Supervisors appoints two of the 16

The South Mississippi Planning and Development District provides services for the following counties:

Hancock, Jefferson Davis, Covington, Jones, Wayne, Marion, Lamar, Forrest, Perry, Greene, Pearl River, Stone, George, Harrison and Jackson The Hancock County Board of Supervisors appoints one of the 27 members of the district's board of directors The county contributed only a small part of the entity's total revenues

The Gulf Regional Planning and Development District provides services for the following counties: Hancock, Harrison and Jackson The Hancock County Board of Supervisors appoints three of the nine members of the district's board of directors The county contributed only a small part of the entity's total revenues

The Region XIII Commission provides services for the following counties: Hancock, Harrison, Pearl River and Stone The Hancock County Board of Supervisors appoints one of the four members of the commission's board

of commissioners The county contributed only a small part of the entity's total revenues

The Mississippi Regional Housing Authority IV provides services for the following counties: Hancock,

Covington, Jones, Wayne, Marion, Lamar, Forrest, Perry, Greene, Pearl River, Stone, George, Harrison and Jackson The Hancock County Board of Supervisors appoints one of the 15 members of the district's board of directors The county provided no financial support to the housing authority in fiscal year 1995

The Gulf Coast Community Action Agency provides services to the following member governments: the Counties of Hancock, Harrison, Greene and George and the Cities of Biloxi, Bay St Louis and Gulfport The Hancock County Board of Supervisors appoints one of the 24 board members The county contributed only a small part of the entity's total revenues

(19) Defined Benefit Pension Plan

Primary Government

Plan Description Hancock County, Mississippi, contributes to the Public Employees' Retirement System of Mississippi (PERS), a cost-sharing, multiple-employer, defined benefit pension plan PERS provides retirement and disability benefits, annual cost-of-living adjustments and death benefits to plan members and beneficiaries Benefit provisions are established by state law and may be amended only by the State of Mississippi Legislature PERS issues a publicly available financial report that includes financial statements and required supplementary information That information may be obtained by writing to Public Employees’ Retirement System, PERS Building, 429 Mississippi Street, Jackson, MS 39201-1005 or by calling 1-800-444-PERS

Funding Policy PERS members are required to contribute 7.25% of their annual covered salary and the county

is required to contribute at an actuarially determined rate The current rate is 9.75% of annual covered payroll The contribution requirements of PERS members are established and may be amended only by the State of Mississippi Legislature The county's contributions (both employer and employee shares) to PERS for the years ending September 30, 1995, 1994 and 1993 were $555,232, $488,304 and $444,747, respectively, equal to the required contributions for each year

Component Units

All component units of the county also participate in the Public Employees' Retirement System Their

(20) Subsequent Events.

Subsequent to September 30, 1995, Hancock County issued the following debt obligations: