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The following major capital projects were completed in FY 2015: • Fire Rescue/EMS Station #13 - $2.2 million station located in the southern part of the County with operating expenses of approximately $1.8 million per year • Osprey Marsh - $8.6 million algal turf scrubber system for the South Relief Canal which removes dissolved nitrogen and phosphorous from the water and returns the treated water back to the Indian River Lagoon. • 66th Avenue Roadway Improvements from State Road 60 to 49th Street - $23 million dollar road widening project to enhance one of the few main arterials connecting the north and south county areas. 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. On September 23, 2008, the County established the OPEB (Other PostEmployment Benefits) Trust. An OPEB investment policy was approved by the Board of County Commissioners in February 2009. The objective was to establish an advisory committee and to provide short-term and long-term investment guidelines. This policy also outlines the same criteria as noted in the County's investment policy, as well as including performance measures. The County's policy is to fund the annual OPEB obligation monthly. The County's goal is to maintain an overall fund balance equal to 30% of the annual budget in all of its taxing funds, which provides a three month cushion for operating expenses. The three month reserve is necessary due to the timing of property tax levies in the State of Florida. Although the fiscal year begins in October, property tax monies are not typically received until mid to late December, which would require the County to operate in a deficit position for the first two months of the fiscal year without this reserve. Reserve funds are needed in order to allow the County to respond to events without facing serious financial burdens. County policy is to maintain fund balance levels and prohibit the use of fund balance to fund recurring expenditures. Information on the County's fund balance policy can be found in County Note 18. In fiscal year 2015, the County advance refunded $19,075,000 of Limited General Obligation Bonds, Series 2006, which saved approximately $217,000 in annual debt service payments and resulted in a net present value savings of$1.2 million. The bonds were refunded by a 1.66% Limited General Obligation Refunding Note, Series 2015. The Board also approved paying off the outstanding balance on the Water and Sewer Revenue Refunding Bonds, Series 2005. Half of the outstanding principal ($7.1 million) was refunded from available utility reserves and the remaining half was refunded by a 1.65% Water and Sewer Revenue Refunding Note, Series 2015. The cash funding of$7.1 million in principal results in a reduction of approximately $1.2 million in annual debt service payments and an estimated net savings of $1.1 million over the remaining life of the bonds. v