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Indian River County, Florida Management’s Discussion and Analysis For the Year Ended September 30, 2019 13  Overall expenses were $6.6 million or 11% higher in 2019 than in 2018. The water and sewer utilities expenses were $6.8 million or about 18% higher in 2019 than in 2018 due to the write-off of several outstanding balances under an amnesty program. The solid waste expenses were $1.0 million or 6% lower in 2019 than in 2018 due to hurricane-related expenses in 2018. The golf course had $0.1 million or 3% higher expenses in 2019 than in 2018 due to increased maintenance and personnel costs. The building department had $0.7 million or 18% higher expenses in 2019 than in 2018 due to increases in personnel and contracted labor services required to meet service level needs of developers and builders.  Business-type activities expenses were charged $1.2 million for their related share of overall net pension/retirement contribution expense as calculated by the Florida Retirement System. The expense was allocated to the following activities: water and sewer $0.8 million, solid waste $0.06 million, golf course $0.05 million, and building $0.3 million. 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 23% ($52.6 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 ($0.8 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 ($167.5 million), 3) a committed category for constraints imposed by approval of ordinances and contracts by the Board of County Commissioners ($2.8 million), and 4) an assigned category for constraints by the County’s intent to use for specific purposes ($8.7 million). The two largest restricted amounts are in the Impact Fees Fund with a $23.8 million restricted fund balance and the Optional Sales Tax Fund with a $87.5 million restricted fund balance. Forty-two percent of the Impact Fees Fund ($10.1 million) and twenty-seven percent ($23.7 million) of the Optional Sales Tax Fund is slated for major road expansions throughout the County in fiscal year 2020. 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 $232.4 million, which is an increase of $18.3 million over the prior year of $214.1 million. Contributing factors to the $18.3 million increase in fund balance are: