2019-064C - Laserfiche WebLink

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Indian River County, Florida Management's Discussion and Analysis For the Year Ended September 30, 2018 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. Governmental funds Unassigned fund balance may serve as a useful measure of the County's net resources available for spending at the end of the fiscal year. Approximately 22% ($47.9 million) constitutes unassigned fund balance, which is available for spending at the County's discretion. The remainder of fund balance is presented in classifications that comprise a hierarchy based primarily on the extent to which the County is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. The County had fund balances in 1) a nonspendable category for inventories, prepaid items, and advances to other funds ($1.2 million), 2) a restricted category for resources that are either restricted externally by creditors, grantors, contributors, or laws or regulations of other governments or imposed by law through constitutional provisions or enabling legislation ($154.2 million), 3) a committed category for constraints imposed by approval of ordinances and contracts by the Board of County Commissioners ($3.2 million), and 4) an assigned category for constraints by the County's intent to use for specific purposes ($7.6 million). The two largest restricted amounts are in the Impact Fees Fund with a $19 4 million restricted fund balance and the Optional Sales Tax Fund with a $77.9 million restricted fund balance. Forty-seven percent of the Impact Fees Fund ($9.2 million) and twenty-one percent ($16.0 million) of the Optional Sales Tax Fund is slated for major road expansions throughout the County in fiscal year 2019. The Optional Sales Tax Fund is a principal funding source in the five year Transportation Capital Improvement Program. The County's governmental funds reported a combined fund balance of $214.1 million, which is an increase of $24.1 million over the prior year of $190.0 million. Contributing factors to the $24.1 million increase in fund balance are: • Fund balance in the General Fund increased by $4.2 million. This was due to increased tax revenues and federal grant revenues. • Fund balance in the Impact Fees Fund increased by $4.3 million due to an increase in building permits for construction and decreased expenditures for completed projects. • Fund balance in the Emergency Services District Fund increased by $2 6 million mainly due to an increase in tax revenues because of increasing home values. • Fund balance in the Optional Sales Tax Fund increased by $2 6 million due to increase in sales tax revenues and state and federal grant revenues. 14