2007-096A - Laserfiche WebLink

Home Browse Search

Indian River County, Florida Management's Discussion and Analysis For the Year Ended September 30, 2006 (� Governmental Activities Governmental activities revenues exceeded expenses by $82.8 million, accounting for 75 percent of the Li total growth in the County's net assets. Key elements of this increase are as follows: • Program revenues decreased $7.6 million due to the downturn in construction activity. Y • Operating grants in 2006 were $2.9 million lower than in 2005. FEMA grant revenue was accrued in 2005 and received in 2006. • Capital grants were $7.0 million higher in 2006 largely the result of $4.6 million in revenue from the Beach Restoration Emergency Response grant and receipt of several road improvement/construction grants. • Increases in property values generated a $10.7 million increase in property taxes general revenues due to $2 billion of new construction. • Interest earnings general revenues increased by $7.7 million, the result of higher interest rates in 2006. • The government expenses were $14.1 million higher in 2006 than in 2005. The increase was due to a rise in construction costs, salary and retirement rates, beach erosion costs, participation in subsidy housing programs and the consolidation of our Fire and EMS departments. Business -type activities Business -type activities increased the County's net assets by $27.0 million, accounting for 25 percent of the total growth in the government's net assets. Key elements of this increase are as follows: • Charges for services for business -type activities decreased by $0.4 million or 0.8 percent. This was a net result of the water and sewer revenues increasing by 10 percent resulting from the population increase and solid waste revenues decreasing due to a calm hurricane season. • Operating grants for business -type activities decreased by $7.3 million because 2005 included FEMA grant revenue for the September 2004 hurricanes. • Capital grants and contributions, which were water and sewer utility related, decreased by $11.3 million, which reflects decreased construction activity in the County. Financial Analysis of the Government's Funds As noted earlier, the County uses fund accounting to ensure and demonstrate compliance with finance related legal requirements. u