For the fiscal year ended June 30, 2008

Board of Supervisors

Bob Buster, 1st District John F. Tavaglione, 2nd District

Jeff Stone, 3rd District Roy Wilson, 4th District

Marion Ashley, 5th District

CountywideElected Officials

Auditor-ControllerRobert E. Byrd

Treasurer-Tax CollectorPaul McDonnell

Assessor-County Clerk-RecorderLarry Ward

Sheriff-Coroner-Public Administrator

Stanley Sniff, Jr.

District AttorneyRod Pacheco

Appointed Officials

County Executive OfficerLarry Parrish

County CounselJoe S. Rank

View County of Riverside Financial Highlights online:www.auditorcontroller.org

FINANCIAL HIGHLIGHTS

County of Riverside Financial Highlights Fiscal Year 2007-2008 3

Auditor-Controller Economic PerspectiveOur County, state, country and world are experiencing a financial crisis. Issues involving mortgages, foreclosures, and the collapse of banking institutions as well as corruption and unethical behavior abound. Riverside County is not an island unto itself; it has been impacted by these global problems. The good news is that our County has continued to grow, thus easing the financial strain locally. Riverside County has been prudent in its fiscal management over the past years. While we are not experiencing double digit property-tax revenue growth as in the past, revenue has not decreased as much as in many other California counties.More, now than ever, it is essential we do everything possible to ensure County operations are efficient and that safeguards are in place to identify and stop wasteful spending. Accordingly, I am initiating a County of Riverside fraud, waste, and abuse program that may save the county millions of dollars. This program, to be launched in early 2009, will provide all employees and citizens of Riverside County with easy and anonymous ways to participate in helping the County of Riverside utilize its financial resources and taxpayer dollars more wisely.

Auditor-ControllerA message from your

Citizens of Riverside County:

As your County Auditor-Controller, I monitor the County’s “checkbook” and serve as your “fiscal overseer” on what the County of Riverside does with your tax dollars. Ethics and integrity are the foundation for all of the technical and financial expertise my staff and I put forth in the execution of our duties on your behalf.

The County Auditor-Controller’s Office delivers a wide range of sound accounting, auditing, financial, and reporting services. We are accountable to the citizens of the County in all that we do. My office continues to raise the bar to a higher standard by providing more timely and useful information to citizens, County management and the County Board of Supervisors to assess the financial condition of the County.

In today’s complex world of governmental financial reporting, it is challenging to analyze financial statements—especially for those who do not have an accounting background. This publication, Financial Highlights, was designed to address this issue by providing a recap of our County’s finances in an easy-to-read format. The financial statements used in this report are simplified and condensed to reflect financial information regarding the County of Riverside’s government-wide information. The County’s government-wide financial statements provide information on revenues, expenses, and net assets of the County of Riverside for the fiscal year ending June 30, 2008.

Most of the information in Financial Highlights is drawn from the Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2008. The CAFR is a 206-page document of detailed financial information including a variety of financial statements, disclosure notes, supplemental schedules and statistical tables. The CAFR is prepared in conformance with Generally Accepted Accounting Principles (GAAP). While the financial data in Financial Highlights conforms with GAAP, the statistical, economic and demographic data are taken from various sources and are not necessarily GAAP based. Both the CAFR and Financial Highlights are available at Riverside County public libraries and online at www.auditorcontroller.org.

Sincerely,

Robert E. Byrd, CGFM County Auditor-Controller

County of Riverside Financial Highlights Fiscal Year 2007-2008 5

The Government Finance Officers Association of the United States and Canada (GFOA) has given an Award for Outstanding Achievement in Popular Annual Financial Reporting to the County of Riverside for its Popular Annual Financial Report for the fiscal year ended June 30, 2007. The Award for Outstanding Achievement in Popular Annual Financial Reporting is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reports.

In order to receive an Award for Outstanding Achievement in Popular Financial Reporting, a government unit must publish a Popular Annual Financial Report, whose contents conform to program standards of creativity, presentation, understandability and reader appeal.

An Award for Outstanding Achievement in Popular Annual Financial Reporting is valid for a period of one year only. The County of Riverside received a Popular Award for last fiscal year ended June 30, 2007. We believe our current report continues to conform to the Popular Annual Financial Reporting requirements, and we have submitted it to GFOA.

Financial Highlights Award

For the scal year ended June 30, 2007

Board of Supervisors

Bob Buster, 1st District John F. Tavaglione, 2nd District

Jeff Stone, 3rd District Roy Wilson, 4th District

Marion Ashley, 5th District

Auditor-Controller Robert E. Byrd

Treasurer-Tax Collector Paul McDonnell

Assessor-County Clerk-RecorderLarry Ward

Sheriff-Coroner-Public Administrator

Bob Doyle

District Attorney Rod Pacheco

County Executive Officer Larry Parrish

County CounselJoe S. Rank

View County of Riverside Financial Highlights online at:

www.auditorcontroller.org

Table of Contents

Auditor-Controller’s message ............... 1 2006 Financial Highlights Award .......... 2 County Profile ....................................... 3 Organizational Structure....................... 4 Countywide Elected Officials ................ 5 Board of Supervisors ............................ 6 Government-wide Financial Statements..................... 7 Capital Assets& Long-term Liabilities ...................... 9 Government-wide Trends ................... 10Revenue Sources ............................... 13 Expenses by Function ........................ 14 Property Taxes ................................... 15 Demographics .................................... 16 Service Operating Indicators .............. 17 County of Riverside Internet Resources ...................... 18

County of RiversideCalifornia

June 30, 2007

County of Riverside Financial Highlights Fiscal Year 2007-2008 7

A message from your Auditor-Controller...........................................................................3

2007 Financial Highlights Award ......................................................................................5

County Profile ..................................................................................................................8

Organizational Structure ..................................................................................................9

Countywide Elected Officials .........................................................................................10

Board of Supervisors ..................................................................................................... 11

Government-wide Financial StatementsStatement of Net Assets .................................... .................................................12

Capital Assets & Long-term Liabilities ............................................................................13

Government-wide TrendsCash and Investments, Net Assets ......................................................................14

Government-wide Statistics ............................................................................................15

Government-wide Financial StatementsStatement of Activities .........................................................................................16

Government-wide TrendsRevenues, Expenses ...........................................................................................17

Revenues by Source ......................................................................................................18

Expenses by Function ....................................................................................................19

Property Taxes ................................................................................................................20

Demographics ................................................................................................................22

Service Operating Indicators ..........................................................................................24

Internet Resources .........................................................................................................26

Table of Contents

8 County of Riverside Financial Highlights Fiscal Year 2007-2008

County of Riverside Mission Statement“Provide local government services as mandated by the State and Federal law, and discretionary services as requested by County taxpayers, within the bounds of available fiscal resources, in a manner which reflects favorably upon the profession of public service and the American form of democratic government.”

County of Riverside Vision“Our vision is to be a proactive county that provides community, business, government, and regional leadership. We will set an exemplary standard of performance among counties by providing our citizens with cost-effective, efficient, and reliable government services, and by developing creative solutions to critical community-wide problems confronting all segments of our constituency. We will anticipate and address the challenges of environmental quality, societal change, and economic competitiveness while striving to make Riverside County an even better place to live, work, raise our families, and do business.”

County of Riverside OverviewRiverside County is the state’s fourth largest county by area. It encompasses 7,295 square miles and extends nearly 184 miles across Southern California, from the Arizona border west to within 10 miles of the Pacific Ocean. It is situated immediately east of Los Angeles and Orange Counties, south of San Bernardino County, and north of San Diego and Imperial Counties.

There are 24 incorporated cities located within the County. The largest cities in the County are the cities of Riverside (the county seat) with a population of 296,842, Moreno Valley with a population of 183,860, and Corona with a population of 147,428.

Total County population was 2,088,322 on January 1, 2008, an increase of 2.7% compared to the revised estimate for 2007 from the California State Department of Finance. Estimated population figures are developed by the state as of January 1 of each year with a revised estimate for the prior year. Approximately 27% of the County’s residents live in the unincorporated area. Riverside County has large and rapidly expanding trade, transportation, utilities, distribution and manufacturing industries.

As of June 2008, unemployment in Riverside County was 8.4% compared to 5.7% for the prior fiscal year. The higher unemployment rate in fiscal year 2007-2008 is primarily attributable to the decline in the real estate market, which has resulted in fewer jobs for construction workers and mortgage lender employees. The unemployment rate in the United States as of September 2008 was 6.0%.

County Profile

County of Riverside Financial Highlights Fiscal Year 2007-2008 9

Organizational Structure

Fire

Countywide Elected Official

Sheriff-Coroner-Public Administrator

Countywide Elected Official

District Attorney

Public Defender

Probation

Public Protection Health and Sanitation Public Ways

Education

County Internal Support

Records Management

Public Assistance

Recreation

General Government

Community Health Agency

Public HealthEnvironmental Health

Animal Control

Riverside County Regional Medical Center

Mental Health

Waste Management

Cooperative Extension

PurchasingSupply, Printing, Mail

Fleet Services

Information TechnologyClerk of the Board

County Counsel

Flood Control

Agricultural Commissioner

Facilities Management

Registrar of Voters

Human Resources

Economic Development Agency

Date Festival Housing Authority

Museum

Countywide Elected Official

Treasurer-Tax Collector

Countywide Elected Official

Auditor-Controller

Countywide Elected Official

Assessor-County Clerk-

Recorder

Transportation & Land Management Agency

TransportationPlanning

Building Safety

Public Social Services(DPSS)

Office on Aging

Veterans’ Services

Regional Parks

ElectedBoard of Supervisors

County Executive Officer

CITIZENS OF

RIVERSIDE COUNTY

10 County of Riverside Financial Highlights Fiscal Year 2007-2008

Robert E. ByrdAuditor

Controller

Paul McDonnellTreasurer

Tax Collector

Larry WardAssessor

County ClerkRecorder

Stanley Sniff,JrSheriff

CoronerPublic Administrator

Rod PachecoDistrict Attorney

Countywide Elected Officals

County of Riverside Financial Highlights Fiscal Year 2007-2008 11

Board of Supervisors

Bob Buster - District 1The First Supervisorial District includes areas within the City of Riverside (the La Sierra and Arlington communities), as well as the City of Lake Elsinore. The District also comprises unincorporated communities including Lakeland Village, Lake Mathews, Mead Valley, Wildomar, Santa Rosa Rancho, and portions of Gavilan Hills and Woodcrest.

John F. Tavaglione - District 2The Second Supervisorial District includes the Cities of Corona and Norco; approximately one-third of the City of Riverside, including the Magnolia Center and Municipal Airport areas, Casa Blanca, and the Eastside Community. Unincorporated communities within the Second Supervisorial District include the Jurupa Valley (Rubidoux, Glen Avon, Sunnyslope, Pedley, Mira Loma); and Home Gardens, El Cerrito, Coronita, Eastvale and Green River.

Jeff Stone - District 3The Third Supervisorial District includes Pinyon Pines, Canyon Lake, Hemet, San Jacinto, Murrieta and Temecula. The District also includes the unincorporated areas of Anza, Aguanga, Idyllwild, Meni-fee Valley, Valle Vista, Winchester, and Wine Country.

Roy Wilson - District 4The Fourth Supervisorial District includes the Cities of Palm Springs, Cathedral City, Rancho Mirage, Palm Desert, Indian Wells, La Quinta, Indio, Coachella, and Blythe. Unincorporated communities include: Bermuda Dunes, Sun City, Palm Desert, Thousand Palms, Sky Valley, Hot Springs, Indio Hills, Mecca, Thermal, Oasis, Vista, Santa Rosa, North Shore, Chiriaco Summit, Desert Center, Lake Tamarisk, Mesa Verde, Ripley, and the Colorado River Communities.

Marion Ashley - District 5The Fifth Supervisorial District includes the Cities of Moreno Valley, Perris, Calimesa, Beaumont, Banning, Desert Hot Springs, and northern Palm Springs. Unincorporated Areas include Nuevo, Lakeview, Juniper Flats, Meadowbrook, Good Hope, a portion of Mead Valley, Romoland, Homeland, Green Acres, Highgrove, Box Springs, Pigeon Pass, Reche Canyon, San Timoteo Canyon, Oak Valley, Cherry Valley, Banning Bench, Cabazon, Palm Springs Village, and Palm Springs West. The District also includes the Tribal Governments from the Sovereign Nations of the Morongo Band of Mission Indians and the Agua Caliente Band of Cahuilla Indians, and a portion of March Air Reserve Base.

12 County of Riverside Financial Highlights Fiscal Year 2007-2008

The Statement of Net Assets presents information on all of the County’s assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether or not the financial position of the County is improving.

The County’s total net assets increased by 9.8%, or $304.3 million, during fiscal year 2007-08. $301.6 million of the increase in net assets was from governmental activities and $2.7 million was from business-type activities. Below are the three components of net assets and their respective fiscal year-end balances:

Invested in capital assets, net of related debt

This component of net assets represents the amount that is unavailable for reducing debt or paying for services because it’s the value of the capital assets themselves, not liquid assets like cash or equivalents that could be used to pay the bills. The balance represents 26.03%, or $872.4 million, of the County’s total net assets under this category for fiscal year 2007-08.

Restricted net assets

This component of net assets represents the amount that available for use only as allowed by creditors, grantors, contributors, or laws and regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation. The balance in this category accounts for 24.03%, or $805.4 million of the County’s total net assets for fiscal year 2007-08.

Unrestricted net assets

This component of the County’s total net assets is the amount that is available and may be used to meet the County’s ongoing obligations to citizens and creditors. Of the unrestricted net assets for fiscal year 2007-08, $1.6 billion is from governmental activities and $101.7 million is for business-type activities. The balance in this category is 49.9%, or $1.7 billion of the County’s total net assets for fiscal year 2007-08.

Statement of Net AssetsPrimary Government (in thousands)

Government-wide Financial Statements

2008 2007 VarianceASSETS:

Cash and investments 2,002,532$ 1,655,129$ 347,403$Receivables, net 569,008 473,597 95,411Inventories 13,005 14,284 (1,279)Pension asset, net 409,768 401,321 8,447OPEB asset, net 10,812 10,812Prepaid items and deposits 20,808 14,081 6,727Restricted cash and investments 646,034 527,337 118,697Other noncurrent receivables 30,583 65,899 (35,316)Notes receivable 28,670 24,983 3,687Land held for resale 66,066 43,704 22,362Capital assets :

Depreciable assets, net 1,981,961 1,747,626 234,335Nondepreciable assets 746,868 710,647 36,221

Bond issuance costs 22,777 19,828 2,949Total assets 6,548,892 5,698,436 850,456

LIABILITIES:Current Liabilities:

Accounts payable 186,844 148,648 38,196Salaries and benefits payable 112,002 94,599 17,403Due to other governments 55,432 53,604 1,828Interest payable 16,740 13,835 2,905Deposits payable 295 260 35Notes payable 168,436 86,222 82,214OPEB Obligation, Net 23 23Other liabilities 6,905 5,010 1,895

Noncurrent Liabilities:Unearned revenue 131,098 118,946 12,152Long-term liabilities Due within one year 211,432 194,262 17,170 Due beyond one year 2,307,988 1,935,630 372,358

Total liabilities 3,197,195 2,651,016 546,179

NET ASSETS:

872,422 956,397 (83,975) Restricted for:

Community development 559,815 390,776 169,039 Debt service 115,347 79,631 35,716 Health and sanitation 23,255 23,085 170 Public protection 24,310 52,510 (28,200) Public ways & facilities 75,178 69,988 5,190 Other programs 7,537 4,116 3,421

Unrestricted 1,673,833 1,470,917 202,916

Total net assets 3,351,697$ 3,047,420$ 304,277$

Invested in capital assets, net ofrelated debt

County of Riverside Financial Highlights Fiscal Year 2007-2008 13

As of June 30, 2008, the County’s capital assets for both its governmental and business-type activities amounted to $2.7 billion (net of depreciation). The capital assets include land and easements, land improvements, construction in progress, infrastructure (channels, storm drains, basins, roads, traffic signals, bridges, runways, and parks), structures and improvements, and equipment.

Major projects under construction in fiscal year 2007-2008 included the following:

Roads and signal infrastructures–$24.6 million. • Cabazon Fire Station and the Lake Riverside • Fire Station–$3.2 million.The Mission Boulevard Streetscape Project • Phase 3–$9.6 million.The Armstrong Road and Sierra Ave Storm • Drain and street improvement projects in the community of Sunnyslope–$6.3 million.Mead Valley Fire Station–$1.8 million.• Siemens Hospital Information System–$1.6 million.• Flood storm drains–$14.1 million.• The Rubidoux Fleet Operations Center–$15.2 million.• Riverside Centre–$56 million.• Cabazon Fleet Facility–5.1 million.•

Land and Easements

363,421 13%

Structures and Improvements

663,01124%

Equipment128,594

5%

Construction in Progress

383,447 14%

Infrastructure1,190,356

44%

Capital Assets, net of depreciation(in thousands)

Capital Assets & Long-Term Liabilities

As of June 30, 2008, the County’s outstanding debt obligation for its government-wide activities amounted to $2.5 billion. Long-term debt incurred by the County of Riverside includes bonds, certificates of participation, loans, and capital leases.

The following are credit ratings maintained by the County

Moody’s Investors Service, Inc.

Standards & Poor’s Corp.

Long-term lease debt A2 AA-Issuer credit Aa3 AA

Outstanding Debt Obligation(in thousands)

Bonds payable1,257,211

50%

Loans payable304,809

12%

Certificate of Participation

408,02419%

Capital Assets

Long-Term Liabilities

14 County of Riverside Financial Highlights Fiscal Year 2007-2008

The Cash and Investments represented in the Government-wide Statement of Net Assets includes Cash and Investments that are available for use as well as Restricted Cash and Investments for both governmental and business-type activities.

Increased cash flow brought on by economic growth and increased demand for government services resulted in increased cash balances from 2004 through 2007. The increase in 2008 is due to new borrowings of $271.4 million from future Tobacco Tax Settlement and $57.6 million as result of issuing the 2007 Series A/B Public Safety Communication and Refunding Project certificates of participation. Increased long-term debt accompanies the new borrowings. Additionally, construction delays have caused a build up of restricted cash.

Net Assets is total assets less total liabilities of the primary government. Net assets serve as a useful indicator of a government’s financial position. At the end of the current fiscal year, the County reported positive net assets balances for both governmental and business-type activities, with total assets exceeding liabilities by $3.4 billion. It is expected that the next fiscal year will result in a reduction to Net Assets due primarily to reduced property tax revenues. Property tax declines are expected to follow the increase in foreclosures. So far, 219,000 residential units have been re-assessed at a value lower than their original acquisition value.

Government-wide Trends

Net Assets(in millions)

Cash and Investments(in millions)

$1,533

$1,807

$2,681

$3,047

$3,352

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$1,716$1,859

$2,182

$2,649

$2,000

$2,500

$3,000

$1,088

$500

$1,000

$1,500

2004 2005 2006 2007 2008

Fiscal Year

Fiscal Year 2004 2005 2006 2007 2008

2004 2005 2006 2007 2008

Cash and Investments

Net Assets

County of Riverside Financial Highlights Fiscal Year 2007-2008 15

Liquidity Ratios

Government-wide Statistics

2008 2007 2006

Current Ratio4.73 times

5.33 times

4.97 times

Quick Ratio6.80 times

6.74 times

6.14 times

Fund Balance

0.53 times

0.51 times

0.41 times

2008 2007 2006

AR Turnover6.16 times

6.90 times

8.53 times

Average Collection Period

59 days

53 days

42 days

The Current ratio and the Quick ratio indicate the County’s ability to pay its bills. The Current ratio trend for 2008 is unfavorable because it decreased to 4.73 times in 2008 from 5.33 times in 2007. The Quick ratio trend is favorable because it rose to 6.8 times in 2008 from 6.74 times in 2007.

The Fund Balance ratio is also favorable. It was 0.41 times in 2006, 0.51 times in 2007, and increased to 0.53 times in 2008. This shows that the County is able to pay its short-term obligations when they come due.

An increase in the Accounts Receivable(AR) Turnover ratio tells us the average number of times our AR balance is fully paid throughout the year. The AR turnover is unfavorable. It was 6.16 times in 2008 as compared to 6.90 times in 2007.

The Average Collection Period is a representation of the AR turnover in terms of days. This ratio is unfavorable. In 2008, it took 59 days to collect (365 days/ 6.16), as compared to 53 days in 2007 (365/6.9).

2008 2007 2006

Long-term Debt/Asset 38.5 % 37.4 % 38.5 %

Debt Service Coverage

11.64 times

11.73times

11.40times

The Long-term Debt/Asset ratio gives an indication of the County’s ability to issue new debt. The lower the organization’s reliance on debt for asset formation, the less risky the organization is, since excessive debt can lead to a heavy repayment burden. In 2008 this ratio is unfavorable at 38.5%, which is increased from 37.4% in 2007. The Debt Service Coverage tells us the resources available to repay the debt already issued. In 2008, this ratio is unfavorable at 11.64 times, compared to 11.73 times in 2007.

Activity Ratios

Debt Ratios

16 County of Riverside Financial Highlights Fiscal Year 2007-2008

The Statement of Activities presents information showing how the County’s net assets changed during the most recent fiscal year. This statement intends to show citizens both the level of resources available to the County for providing services in addition to the costs for providing those services during the current fiscal year ended June 30, 2008.

Revenues

The most significant variance in revenue on the Statement of Activities is the $104.8 million increase in operating grants and contributions due to increases of revenue from federal, state, and local governmental agencies. Increases were realized across general government, health and sanitation, public assistance, and public ways. Adding to this was an $43.1 million increase in property taxes, and the $15.7 million increase in investment earnings, in addition to the $28.6 million increase in motor vehicle in-lieu tax, offset somewhat by the $30 million decrease in capital contributions and sales taxes.

Expenses

The most significant variances in expenses on the Statement of Activities are: $186.8 million increase in Public Protection due primarily to increasing staffing levels for the Sheriff, Probation, District Attorney, and Fire departments; $123.9 million decrease in Public Assistance; $34.5 million increase in General Government due to additional funding of Community Improvement projects; and $24.4 million increase in expenses to operate the Riverside County Regional Medical Center.

Statement of ActivitiesPrimary Government (in thousands)

Government-wide Financial Statements

2008 2007 VarianceRevenues:Program revenues:

Charges for services 1,091,084$ 1,084,806$ 6,278$Operating grants and contributions 1,315,716 1,210,941 104,775Capital grants and contributions 25,639 48,447 (22,808)

General revenues:Property taxes 506,327 462,817 43,510Sales and use taxes 40,985 51,093 (10,108)Other taxes 15,898 16,865 (967)Motor vehicle in-lieu taxes 274,282 245,723 28,559Investment earnings 148,460 132,715 15,745Other 85,924 13,191 72,733

Total revenues 3,504,315 3,266,598 237,717

Expenses:General government 331,741 296,917 34,824Public protection 1,122,370 935,550 186,820Public ways and facilities 209,019 57,578 151,441Health and sanitation 330,206 350,082 (19,876)Public assistance 564,318 688,213 (123,895)Education 17,977 14,847 3,130Education 17,977 14,847 3,130Recreation and culture 12,457 11,941 516Interest on long-term debt 96,173 81,197 14,976Regional Medical Center 353,481 329,128 24,353Waste Management Department 64,538 60,772 3,766Housing Authority 74,252 70,218 4,034Flood Control 5,201 6,242 (1,041)County Service Areas 343 329 14

Total expenses 3,182,076 2,903,014 279,062 Change in net assets 322,239 363,584 (41,345)Net Assets, Beginning of Year,

as Restated 3,029,458 2,683,836 345,622

Net Assets, End of Year $ 3,351,697 $ 3,047,420 $ 304,277

County of Riverside Financial Highlights Fiscal Year 2007-2008 17

Expenses

Expenses are a representation of the services we provide to the citizens of Riverside County. As stated above, the increase of 100,000 citizens in population for each of the last four years has resulted in an increase demand for local government services. Add to this the number of major fires and floods that have occurred over this same period. Riverside County is working hard to keep our communities safe. Consequently, our greatest expense continues to be in the area of Public Protection. Expenses in Public protection increased by $186.8 million primarily due to increase in staffing levels for the Sheriff, Probation, District Attorney and Fire Protection departments. Public ways and facilities expense increased by $151.4 million and Public Assistance declined by $123.9 million.

Revenues

Revenue increases over the past five years were brought about by a combination of factors. First and foremost, Riverside County has historically been a source for affordable housing for Californians who cannot afford to buy a home in Orange and Los Angeles counties. Riverside County population has grown from 1.7 million in 2004 to over 2.1 million in 2008. With an increase of 100,000 citizens per year, federal and state grant revenue has grown substantially. Over this same period, the housing boom increased property values, impacting our property tax revenues. Next year, however, a decline in property values is expected to result in a reduction in annual tax revenues.

Government-wide Trends

$2 565$2,785

$3,013

$3,267

$3,504

$3,000

$3,500

$4,000

$2,349

$2,565

$1,500

$2,000

$2,500

2003 2004 2005 2006 2007 2008

$2,187

$2,455 $2,449

$2,628

$2,903

$3,182

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

2003 2004 2005 2006 2007 2008

Five Year Trend - Expenses(in millions)

Five Year Trend - Revenues(in millions)

Fiscal Year

Fiscal Year

18 County of Riverside Financial Highlights Fiscal Year 2007-2008

The statement of activities reports revenue by sources using government-wide reporting standards. To assist the reader in understanding what makes up the various sources referenced, we have provided the following detailed listing:

Program Revenues

Charges for ServicesAssessment and tax collection fees, auditing and accounting fees, communication services, election services, legal services, planning and engineering services, civil process services, estate fees, humane services, law enforcement services, recording fees, road and street services, health fees, mental health services, sanitation services, institutional care and services, animal licenses, business licenses, construction permits, road privileges and permits, zoning permits, franchises and other licenses and permits, vehicle code fines, other court fines, forfeitures and penalties in addition to penalties and costs on delinquent taxes, and parking fees.

Operating GrantsState, federal, other government, and private contributions to fund specific programs.

Capital GrantsState, federal, other government, and private contributions to fund capital purchases for specific programs.

General Revenues

Taxes: Property taxes, sales and use taxes as well as other county levied taxes, investment income, rents and concessions, sale of surplus property, contributions and donations, non-governmental grants and unclaimed money.

Revenues by Source

Charges fori

Capital grantsand

contributions1%

Generalrevenues

37%

services22%Operating

grants andcontributions

40%

Revenues by Source

County of Riverside Financial Highlights Fiscal Year 2007-2008 19

The following list provides details to define the County departments included in each of the functional categories listed in the statement of activities:

General GovernmentAssessor, Auditor-Controller, Treasurer-Tax Collector, Economic Development Agency, Date Festival, Housing Authority, Human Resources, Registrar of Voters, Redevelopment Agency, Public Safety Enterprise Communication, Facilities Management, Board of Supervisors, Executive Office, County Counsel and Purchasing.

Public Protection Sheriff, Coroner, Public Administrator, District Attorney, Public Defender, Probation, Fire, Agricultural Commissioner, Animal Control, County Clerk-Recorder, Flood Control, Planning, Building and Safety, Department of Child Support Services, Juvenile Hall and Code Enforcement.

Public Ways and Facilities Transportation and Land Management Agency, Surveyor, Transportation, County Airports and County Service Areas.

Health and SanitationPublic Health, Environmental Health, Detention Health Services, California Children’s Services, Mental Health, Regional Medical Center and Waste Management.

Public AssistanceDepartment of Public Social Services, Community Action Partnership, Office on Aging, Veteran’s Services and Housing Authority.

Education Cooperative Extension and County Library.

Recreation and Culture Regional Parks and Edward Dean Museum.

Expenses by Function

General Government

12.35%

Public protection

41.82%Public ways and facilities

7.79%

Health and sanitation

12.30%

Public assistance

21.03%

Education 0.67%

Recreation and culture0.46%

Interest on long-term debt

3.58%

Expenses by Function

20 County of Riverside Financial Highlights Fiscal Year 2007-2008

How the Property Tax System Works

Auditor-ControllerAuditor-Controller

Auditor-ControllerAuditor-Controller

Treasurer-Tax CollectorTreasurer-Tax Collector

Assessor-Clerk-RecorderAssessor-Clerk-RecorderAssesses all real estate and personal property

(businesses, manufactured homes, boats & airplanes) located throughout the entire County.

Receives the assessments from the Assessor and applies the appropriate tax rate to determine the

actual amount of property tax owed.

Mails out the property tax bills, collects the money, and deposits it in the County Treasury.

Receives and allocates the money to local taxing agencies, including the County, cities, schools, and

special districts.

Property Taxes

Where did your property tax dollar go in fiscal year 2007-2008?

Schools48 cents

CommunityRedevelopment

25 centsCounty

12 centsCities

7 cents

SpecialDistricts8 cents

CREST Project

The Assessor-County Clerk-Recorder, Auditor-Controller, and Treasurer-Tax Collector teamed up to collectively develop a new integrated property tax management system. Phase I of the project documents the property tax system roles that have been maintained with the current system. This phase identifies the current system’s capabilities, strengths, and weaknesses. Phase II of the project builds on this by defining what needs will be fulfilled by the new property tax system. Phase II will begin during fiscal year ending June 30, 2009.

County of Riverside Financial Highlights Fiscal Year 2007-2008 21

For more property tax information visit the County of Riverside’s Property Tax Portal at: www.riversidetaxinfo.com

$1,537

$1,777

$2,127

$2,597

$2,964

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

2004 2005 2006 2007 2008

$1,493

$1,727

$2,044

$2,564

$2,928

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

2004 2005 2006 2007 2008

Property Taxes

Tax Levies(in millions)

Tax Collections(in millions)

Riverside CountyPrincipal Property Tax Payers

(Property tax in thousands)

Property taxes are levied on both real and personal property and are recorded as receivables at the date of levy. Secured property taxes are levied on or before the first business day of September of each year. These taxes become a lien on real property on January 1 preceding the fiscal year for which taxes are levied. Tax payments can be made in two equal installments; the first is due November 1 and is delinquent with penalties after December 10; the second is due February 1 and is delinquent with penalties after April 10. Secured property taxes that are delinquent and unpaid as of June 30 are declared to be tax defaulted and are subject to redemption penalties, costs, and interest. If the delinquent taxes are not paid at the end of five years, the property is sold at public auction and the proceeds are used to pay the delinquent amounts due and any excess is remitted, if claimed, to the taxpayer.

Fiscal Year

Fiscal Year

22 County of Riverside Financial Highlights Fiscal Year 2007-2008

1. County of Riverside ............................... 19,5952. March Air Reserve Base .......................... 8,4003. U.C. Riverside ......................................... 6,6574. Stater Bros Market................................... 6,4255. Pechanga Resort & Casino ..................... 4,8006. Abbot Vascular ......................................... 4,5007. Riverside Unified School District ............. 4,0418. Riverside Community College District. .... 3,7539. Kaiser Permanente .................................. 3,20010. Temecula Valley Unified School District .. 2,952

5.80%

5.20%

5.10%

5.70%

8.40%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

2004 2005 2006 2007 2008

Demographics

Population (in thousands)

Unemployment Rate

Riverside CountyPrincipal Employers(number of employees)

946

1,3281,441

1,719

2,088

500

900

1,300

1,700

2,100

2,500

1988 1993 1998 2003 2008

$25,337

$26,342

$28,730

$29,393

$30,070

$25,000

$26,000

$27,000

$28,000

$29,000

$30,000

$31,000

2004 2005 2006 2007 2008

Per Capita Income

Year

Year

Year

County of Riverside Financial Highlights Fiscal Year 2007-2008 23

Demographics

Public School Sites in Riverside County Charter Schools .................................................................. 11 Elementary Sites .................................................................265 Middle/Junior High Sites ..................................................... 74 Continuation/Adult Education .............................................. 50 High School Sites ................................................................ 65 Total K-12 ............................................................................465

Number of Riverside County School Districts Elementary .......................................................................... 4 High School ......................................................................... 1 Unified ................................................................................. 18

Riverside County Office of Education Budget 2007-2008

Riverside County Average State Funding Per Pupil

Elementary Districts.............. $6,585 High School Districts ............ $6,880 Unified Districts..................... $6,804

Additional information about the Riverside County Office of Education may be found at their website:www.rcoe.us

516

,229

7,05

5

9,91

0

333,33

0

349,60

7

364,85

7

380,96

4

395,18

3

413,05

9

250

300

350

400

450

ousand

s

285,5

295,

307

31

3

100

150

200

97 98 98 99 99 00 00 01 01 02 02 03 03 04 04 05 05 06 06 07

Th

Kindergarten Through 12th Grade Enrollment Growth 1997-2007

County Schools Facilities 8,973,620

Other4,731,337

Child Development

Fund 89,617,633

General Fund Restricted

108,468,013

General Fund Unrestricted 29,645,418

Total = $241,436,021

24 County of Riverside Financial Highlights Fiscal Year 2007-2008

Service Operating Indicators

Community Health AgencyFacilities inspections...................................33,009Inspections include fixed food facilities, pools, spas, hazardous material generators and miscellaneous food operationsPatient visits .............................................149,223Patient services performed .......................601,889Services include family planning, primary health care, prenatal care, urgent care, breast cancer early detection, child health and disability preventionAnimal impounds ........................................30,305Spays and neuters........................................7,208

Public Social ServicesCalWORKs clients ......................................22,310Food stamp clients .....................................36,339Medi-Cal clients ........................................101,542In-Home supportive services ......................14,845Services include meal preparation and cleanup, food shopping, bathing, dressing, personal care, domestic services (cleaning), assistance with medications, etc.Foster care placements ................................5,057Child welfare services.................................11,912Services include child adoptions and investigations of child abuse, neglect or abandonment

Auditor-ControllerInvoices paid.............................................505,122Warrants issued ........................................255,767Active vendors ............................................59,975Payroll warrants (checks) issued ..............522,215Average paychecks per pay period ............20,085

SheriffNumber of bookings ...................................64,782Coroner case load ........................................9,488Calls for services–Unincorporated areas(contract cities not included) .....................300,000

Veteran’s Services Phone inquiries answered ..........................29,553Client interviews .........................................10,571Claims filed ...................................................5,194

FireMedical assistance .....................................89,404Fires extinguished ........................................5,659Other services ............................................19,472Other services include fire menace standbys (bomb threats, electrical hazards, gas hazards, etc.), public service assists (assisting other agencies, persons, flooding, etc.) and false alarms.Communities served ..........................................78

Assessor-Clerk-RecorderAssessments ............................................938,462Official records recorded ..........................773,308Vital records copies issued .........................97,427Official records copies issued ..................... 34,711

Registrar of VotersVoting precincts ............................................1,403Polling places ..................................................721Voters .......................................................837,389Poll workers ..................................................4,331

Waste ManagementLandfill tonnage .....................................1,220,124Recycling tonnage ........................................3,385

County of Riverside Financial Highlights Fiscal Year 2007-2008 25

Service Operating Indicators

County Regional Medical CenterEmergency room treatments ...............................82,584Emergency room services–Mental Health .............7,867Clinic visits .........................................................124,318Admissions ..........................................................23,433Patient days ....................................................... 115,811Discharges...........................................................23,440

TLMA - Building & SafetyBuilding permits issued..........................................1,800Building plans checked ..........................................1,507Building structures inspected.................................3,158

Community Action PartnershipUtility assistance (households) ..............................9,902Weatherization (households) ....................................853Energy education attendees ................................19,396Disaster relief (residents).....................................16,366Income tax returns prepared .................................1,828After school program (students) ..........................10,905Homeless program (bed nights) ..........................12,822Homeless program (meals) .................................25,644

County LibraryTotal circulation (books, videos, etc.)..............3,280,929Reference questions answered .........................426,533Patron door count ...........................................2,744,576Programs offered ...................................................5,570Programs attendance ........................................103,393

Agricultural CommissionerExport phytosanitary certificates..........................29,288Pesticide use inspections .........................................903Weights and measures regulated ...................... 119,496Agriculture quality inspections ..................................643Plant pest inspections..........................................25,987Nursery acreage inspected....................................7,851

26 County of Riverside Financial Highlights Fiscal Year 2007-2008

I would like to thank the Photo Artist Network and various County employees for providing the photographs used to support our theme of Riverside County Action in this year’s Financial Highlights. Also, I would like to offer a special thanks to Larry Berenato, APR, Bernard Edmonds, Fendy Kao, and Frank Leonard for their team effort in completing this report.

Visit the County of Riverside’s Official Websitewww.countyofriverside.us

Visit the County of RiversideAuditor-Controller’s Official Website

www.auditorcontroller.org

Where you can findinformation about:

Board Agendas• County Agencies and • DepartmentsCounty Employment• County Ordinances• Court Cases• Property Assessments• Public and Official • RecordsRoads and Highways• Voting and Elections•

Online ServicesProvided:

Check your jury duty • statusOnline crime report• Pay your property taxes• Pay your traffic tickets• Report code violations• Request a birth, death, • or marriage certificateSearch the county • library catalogVendor Registration•

Internet Resources

Special Acknowledgement

Where you can find information about:

Auditor-Controller’s Office DivisionsAdministration• Audits & Specialized Accounting• General Accounting• Payroll• Property Tax•

Financial StatementsComprehensive Annual Financial • ReportCounty of Riverside Financial • HighlightsInternal Audit Reports• Single Audit Reports•

Riverside County

ACTION!The County of Riverside provides a variety of

recreational activities through which its residents can participate to help achieve a balanced life.

The photographs in this publication illustrate just a few of the opportunities available in our County.

County of Riverside Financial Highlights

Robert E. Byrd, CGFMRiverside County Auditor-Controller

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Major-RoadsHighwaysCounty of Riverside BoundaryWaterbodies

Disclaimer: Maps and data are to be used for reference purposes only. Map features are approximate, and are not necessarily accurate to surveying or engineering standards. The County of Riverside makes no warranty or guarantee as to the content (the source is often third party), accuracy, timeliness, or completeness of any of the data provided, and assumes no legal responsibility for the information contained on this map. Any use of this product with respect to accuracy and precision shall be the sole responsibility of the user. Source : County of Riverside

Cities in the County of RiversideCities in the County of Riverside

February 26, 2008

County of RiversideCounty of Riverside

La QuintaLake ElsinoreMurrietaMoreno Valley

BanningBeaumontBlytheCalimesa

Canyon LakeCathedral CityCoachellaCorona

Desert Hot SpringsHemetIndioIndian Wells

NorcoPalm SpringsPalm DesertPerris

Rancho MirageRiversideSan JacintoTemecula

Click on the cities above to go to an enlarged view of each city.

Cities and County Population

Source: California Department of Finance; Population Estimates for Cities, Counties and State, 2001-2008 with 2000 Benchmark

Newly Incorporated Cities Not Included in Chart Above The chart above does not include two new cities which were incorporated after the latest date of 1/1/08 used to identify cities and estimate populations in the list above. The two new cities along with their incorporation dates and approximate populations are noted below. The source of the following is the County of Riverside Comprehensive Annual Financial Report, fiscal year ended June 30, 2008, page 105). City of Wildomar incorporated July 1, 2008 with an estimated population of 29,237 City of Menifee incorporated October 1, 2008 with an estimated population of 60,000

4/1/2000 1/1/2001 1/1/2002 1/1/2003 1/1/2004 1/1/2005 1/1/2006 1/1/2007 1/1/2008 Banning 23,562 23,955 24,618 25,637 27,582 28,022 28,240 28,293 28,348 Beaumont 11,384 11,554 12,260 13,930 16,580 19,031 23,237 28,271 31,477 Blythe 20,465 20,830 21,282 21,350 22,156 22,037 22,232 22,636 21,695 Calimesa 7,139 7,209 7,305 7,412 7,454 7,453 7,444 7,420 7,536 Canyon Lake 9,952 10,157 10,393 10,625 10,813 10,938 10,982 10,979 11,051 Cathedral City 42,647 44,081 45,624 47,799 49,294 50,759 51,284 52,151 52,465 Coachella 22,724 23,353 24,392 27,061 28,055 30,842 35,346 38,515 40,517 Corona 124,966 129,708 134,576 138,478 143,806 144,428 145,235 146,147 147,428 Desert Hot Springs 16,582 16,769 16,962 17,364 19,311 20,796 23,454 24,907 26,068 Hemet 58,812 60,564 62,751 64,001 66,021 68,030 71,315 73,299 74,185 Indian Wells 3,816 4,147 4,368 4,443 4,498 4,791 4,885 4,945 5,025 Indio 49,116 50,430 52,422 55,030 59,983 66,284 71,939 77,208 81,512 Lake Elsinore 28,930 30,024 31,198 33,391 35,872 38,141 41,150 47,669 49,807 La Quinta 23,694 26,079 28,846 30,781 32,997 36,236 38,494 41,125 42,958 Moreno Valley 142,379 144,302 147,100 151,539 157,355 165,742 175,262 180,603 183,860 Murrieta 44,282 46,433 51,865 68,396 78,788 85,312 93,296 97,329 100,173 Norco 24,157 24,483 24,991 25,466 25,790 26,756 27,350 27,375 27,255 Palm Desert 41,155 42,070 43,058 44,388 45,463 49,402 49,735 49,789 50,907 Palm Springs 42,805 43,392 43,909 44,462 44,895 45,824 46,621 46,893 47,251 Perris 36,189 36,901 37,680 38,610 41,912 44,705 47,326 50,701 53,605 Rancho Mirage 13,249 13,840 14,409 15,122 15,738 16,457 16,737 16,957 17,057 Riverside 255,166 262,135 270,574 276,910 280,928 286,239 288,933 291,611 296,842 San Jacinto 23,779 24,610 25,405 26,321 27,111 28,508 31,190 34,371 35,672 Temecula 57,716 61,761 73,045 75,821 78,585 81,602 94,300 98,009 101,057

Total Incorporated Areas 1,124,666 1,158,787 1,209,033 1,264,337 1,320,987 1,378,335 1,445,987 1,497,203 1,533,751 Total Unincorporated Areas 420,721 431,163 443,504 459,639 482,755 504,477 516,814 537,637 554,571 Total County Population 1,545,387 1,589,950 1,652,537 1,723,976 1,803,742 1,882,812 1,962,801 2,034,840 2,088,322

Robert E. Byrd, CGFMAUDITOR-CONTROLLER

Bruce Kincaid, MBA

ASSISTANT AUDITOR-CONTROLLER

RIVERSIDE COUNTY OFFICE OF THE

AUDITOR-CONTROLLER

County Administrative Center 4080 Lemon Street, 11th Floor

P.O. Box 1326 Riverside, CA 92502-1326

(951) 955-3800 Fax (951) 955-3802