2007-096A - Laserfiche WebLink

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Indian River County, Florida Management's Discussion and Analysis For the Year Ended September 30, 2006 Governmental funds aUnreserved fund balance may serve as a useful measure of the County's net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the County's governmental funds reported combined ending fund balances of $266.7 million, an increase of $70.5 million in comparison with the prior year. • The fund balance of the County's General Fund increased by $15.1 million. Key factors in this growth are as follows: (1) an increase of tax revenues of $8.4 million resulting from increased property values and increased franchise taxes, (2) an increase in interest income of $1.6 million resulting from higher interest rates, and (3) transfers in totaling $4.5 million of which $3.8 million is an allocation of hurricane related insurance proceeds. • In the Impact Fees Fund there was a $19.6 million increase driven by $24.6 million in special assessments revenue. The slowdown in construction activity is reflected by special assessments revenue not being as robust in 2006 as in 2005 when special assessments totaled $36.3 million. • The largest portion overall increase in the unreserved funds occurred in the Land Acquisition Fund, with a $43.0 million increase in fund balance. In July 2006, the County issued $46.8 million in Limited General Obligation Bonds. • The Optional Sales Tax Fund decreased by $11.6 million, with $36.1 million of expenditures in capital projects including $24.2 million for the administrative complex and $7.6 million for the jail expansion project. • Total amount of combined ending fund balances, $266.7 million, 86 percent represents n unreserved, undesignated fund balance, which is available for spending at the government's I I discretion. The remainder of fund balance is reserved to indicate that it is not available for new spending. The largest reserved amount is in the Optional Sales Tax Fund, which is reserved for capital projects in the amount of $28.6 million and also for a $.99 million loan to other funds. The Secondary Roads Construction Fund has reserved $0.67 million for capital projects and $0.65 million for advances to other funds. The General Fund is the chief operating fund of the County. At the end of the current fiscal year, unreserved, undesignated fund balance of the general fund was $45.3 million. As a measure of the general fund's liquidity, it may be useful to compare unreserved fund balance to total expenditures. Unreserved, undesignated fund balance represents 55 percent of total general fund expenditures. The impact fees fund had an $85.5 million unreserved, undesignated fund balance which represents 11 percent of total impact fee expenditures indicating future road construction.