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Fund Financial Statements (Continued)

• Proprietary Funds report business-type programs and activities that charge fees designed to recover the cost of providing services. The proprietary funds report using full accrual accounting. The County maintains two different types of proprietary funds: enterprise funds and internal service funds. Enterprise funds are those focused on providing County services to the public. Internal service funds are used to accumulate costs and properly allocate those costs internally among the County's various functions. The County uses an internal service fund to account for its Health Insurance program which is a self-insured model.
• Fiduciary Funds are funds for which the County is the trustee or fiduciary. These include certain agency funds or clearing accounts for assets held by the County in its role as custodian until the funds are allocated to the private parties, organizations, or government agencies to which they belong. The County is responsible to ensure the assets reported in these funds are used for their intended purposes. This fiduciary activity is reported in a separate statement of fiduciary net position and a statement of changes in fiduciary net position. These funds are excluded from the County's government-wide financial statements because the County cannot use these assets to finance its operations.

GOVERNMENT-WIDE FINANCIAL STATEMENTS

Net Position

GASB No. 34 requires that all capital assets, including infrastructure, be valued, and reported within the governmental activities column of the government-wide financial statements. In 2007, the County fully adopted the provisions of GASB No. 34.

As of December 31, 2025, the County's total assets were $166,764,335, of which $72,797,394 represented capital assets. Assets and deferred outflow of resources exceeded liabilities and deferred inflows of resources by $89,884,492. Total governmental activities net capital assets decreased by $2.6 million as a result of depreciation on existing capital assets. Other assets increased by $5.4 million mainly due to an increase in the net pension asset as a result of a positive net change in the plan fiduciary net position.

Changes in the assumptions of the pension plan resulted in an increase in deferred inflows of resources of $2.3 million.

The County's current liabilities increased slightly in 2025 primarily due to a higher accounts payable liability in the general fund and the liquid fuels fund, along with a reduction in unearned revenues. Long term liabilities decreased $5.5 million due to scheduled principal payments and lease and subscription payments.

Of the County's net position, 9 percent represents net investment in capital assets net of any related debt outstanding used to acquire those assets. Thirty-nine percent of the County's net position is legally restricted ($35,549,784). The remaining balance of unrestricted net position ($46,589,088) may be used to meet the government's ongoing obligations to citizens and creditors.