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11 Long Term Financial Planning The Facilities Management department has the responsibility of maintaining the County's buildings and other facilities and must plan for the future building space needs of the organization. The current County Administration Building was built in 1966 as a hospital. Due to the building's age, maintenance U costs have increased substantially in recent years. A citizen -based Space Needs Committee LJ recommended to the Board of County Commissioners that the County should proceed with the design and construction of a new administration building. Funding for this facility has been budgeted with a atotal projected cost of over $54 million. As of September 30, 2006, approximately $25.7 million has been spent on construction with most of the funds for the capital costs coming from the optional one - cent sales tax. The project is due for completion during the second quarter of FY 2006-2007. If anecessary, cash forward and other revenues will supplement the sales tax. Operating costs will increase slightly due to the larger size of the new facility and will be funded by ad valorem taxes. In November 2004, the voters of Indian River County approved a referendum authorizing the issuance of $50 million in bond funds to purchase environmental, historical and agricultural lands for preservation. In June 2006, the County issued bonds in the amount of $48.6 million. The Indian River County jail has reached capacity. The existing 453 -bed jail is being expanded to accommodate an additional 256 beds and infirmary space at an estimated cost of $21 million. Optional sales tax and corrections impact fees will provide funding. Operating costs associated with the expansion are estimated at $4 million per year. Relevant Financial Policies In accordance with Section 218.415, Florida Statutes, the County adopted an investment policy, which guides the investment of County surplus funds. This policy establishes investment objectives, maturity and liquidity requirements, portfolio composition, risk and diversification requirements, and authorized investments. The primary objectives of investment activities are to preserve capital and maintain sufficient liquidity to meet anticipated cash flow needs. The secondary objective is to obtain competitive returns on the investment of County surplus funds. During FY 2006, County investments had yields ranging from 1.875% to 5.75%. The average yield of the portfolio as of September 30, 2006 was 4.81 %. Major Initiatives The Board of County Commissioners approved the Comprehensive Beach Preservation Plan (BPP) in 1999. Several areas of County beaches have been listed as critically eroded. The Beach Preservation Plan provides for renourishment of these portions. State grants, local option sales taxes, and tourist tax make up the necessary funding for this project. During FY 2006-2007, the County will complete restoration efforts of the South County Beach (Sector 7). Additionally, FEMA funding of $6.1 million will provide emergency renourishment of Sectors 1 and 2. Construction will also be completed on a FDEP funded $6 million dune restoration to provide storm protection from future hurricanes. Grant applications will also be submitted for construction of additional offshore artificial reefs. During FY 2006, the Fire Rescue and Emergency Medical Services were consolidated, providing personnel trained in both fire rescue and emergency medical care. Construction of Fire/EMS Station 12 (located in the south, central area) will begin during FY 2006-2007 with one -cent sales tax providing $2.2 million for land acquisition and construction costs. Construction of Fire/EMS station 13 (located aon Wabasso beach) is scheduled for FY 2008-2009 at a cost of $2.6 million. Additional stations are needed to provide services to the growing population in Indian River County. In addition, repairs and ill