Loading...
HomeMy WebLinkAbout2007-096A6 t9 Unit ID and Name: Indian River ` Financial Officer Name: Jeffrey K. Barton c'�, Financial Officer Title: Clerk of Circuit Court Mailing Address: 1840 25th Street City Address: Vero Beach State: FL Zip Code: 32960-3394 Email Address: dbernardo@clerk.indian-river.org Phone Number: (772) 567-8000 Phone Extension: 1205 Contact Person's Name: Diane Bernardo Contact's Phone Number: 772 567-8000 Contact's Extension: 1205 FAX Number: 772 770-5331 Certification We the undersigned certify, to the best of our knowledge, that the information reported herein or submitted electronically is accurate and complete. Gary C. Wheeler Name Chairman -$pard of County Commissioners X Si�`iaat Ghalrr%an; cif Covemment Board (required) _ U Name,.* Clerlc3o Circuit Court X Signure o hief Financial Officer (required) FORM DFS -Al -401 (Rev. 08/03/2006) Was Annual Financial Report filed electronically? ® Yes ❑ No If yes indicate method: ® FTP 0 Diskette Date completed Audit Report was received MW "VA AFR Tracked Audit Tracked Rev/Exp Complete Amount of outstanding long-term debt: $ 138,451,190 Initials Date Have you experienced a financial emergency in fiscal year ended 2006? O Yes (29N. If yes, have you complied with Section 218.503(2), Florida Statutes? 0 Yes 0 No (ie: Have you reported a financial emergency if there has been one?) Use separate page for response if needed. Mail Completed Forms and Required Attach men WEnclosures to::: State of Florida Department of Financial Services Bureau of Accounting Annual Local Government Financial Report Fiscal Year 2005-2006 200 E. Gaines Street Tallahassee, Florida 32399-0354 Enter the utility service tax rates for the following: Electricity Telecommunications Water Natural Gas Cable Vision Fuel Oil Propane Other COMPONENT UNIT REPORTING - Part 1 The special districts listed below are identified by the Department of Community Affairs as dependent on your county. Please indictate whether these districts have been included as component units in your report and the presentation according to the Governmental Accounting Standards Board, Statement 14, The Reporting Entity. "Independently Reported" should include only dependent districts that are not component units of your reporting entity. "No Report Submitted" should include any dependent districts that are component units and should have been included with your reporting entity but did not, or did not within a reasonable time, provide financial information necessary to comply with Section 218.32(1), F.S. Please list any other component units which are included with your reporting entity that are not listed below. Include any independent special districts that are reported by your entity 100031 Indian River County Blended in Independently Discretely Zero Revenues _ No Report Primary Reported Reported Expenditures Submitted Report 300629 Indian River County Emergency Services Dist 300630 Solid Waste Disposal District Wednesday, October 25, 2006 COMPONENT UNIT REPORTING - Part 2 Use this part to report the total revenues and expenditures of each local governmental entity that is a component unit included in the annual finacial report of the reporting entity, either blended or discretely presented 100031 Component Units of Indian River County Total Revenues Total Expenditures 300629 Indian River County Emergency Services Dist 282250,899 26)095,293 300630 Solid Waste Disposal District 16 0115 , 3391 7, Fj_ 84 , 51 h a Wednesday, October 25, 2006 100031 Indian River Countv Fiscal Year Ended: 2006 Revenues Account Code Description General Special Debt Service Capital Projects Revenue 3/6/200-/ 10:42:29AM Funds Permanent Enterprise Internal Pension Trust Component Total Service Units Memorandum 311000 Ad Valorem Taxes -Property Value Taxes 59,402,539 23,046,268 2,465,462 0 0 10,929 0 0 0 84,925,198 312100 Local Option Taxes -Sales, Use and Fuef Taxes 0 1,138,020 379,340 0 0 0 0 0 0 0 1,517,360 312200 Special Act Fuel Tax (Section 206.61,F.S)-Sales, 0 208,141 0 0 0 0 0 0 C 0 208,141 Use and Fuel Taxes 312400 Local Option Fuel Tax/Alternative Fuel Tax 0 3,318,633 0 0 0 0 0 0 0 3,318,633 312600 Discretionary Sales Surtaxes -Discretionary Sales 0 0 0 15,736,078 0 0 0 0 0 0 15,736,078 313100 Electricity -Franchise Fees 7,343,260 0 0 00 0 0 0 0 0 7,343,260 313200 Telecommunications -F ranchise 0 488,064 0 0 0 0 0 0 C 0 488,064 313300 Water -Franchise Fees 1,487,070 0 0 0 0 0 0 1,487,070 315000 Communications Services Tax -Utility Services 1,075,673 0 ::17 0 0 0 0 0 0 0 1,075,673 321000 Occupational Licenses -Licenses 207,008 0 0 0 0 0 0 0 207,008 322000 Building Permits -Permits 553,644 0 0 7 0 4,226,896 ::40 0 0 4,780,540 329000 Other Licenses; Permits, Fees -Other Licenses, Permits, 198,862 315,124 0 - 0 - 57,698 0 0 571,684 Fees 331100 General Government -General Government 33,989 43,389 0 0 0 0 0 0 C 0 77,378 Page Number: I Account Code Description General Special Debt Service Capital Projects Permanent Enterprise Internal Pension Trust Component Total Revenue Service Units Memorandum 331200 Public Safety -Public Safety 105,351 149,149 0 0 0 0 0 0 0 254,500 331310 Water Supply -Physical Environment 0 16,747 0 200,000 0 0 0 0 0 0 216,747 331390 Other Physical Environment -Physical 0 108,854 0 0 0 0 0 0 0 0 108,854 Environment 331410 Airport Development-Transpo 1,579,729 0 0 0 0 0 0 0 0 1,579,729 rtation 331420 Mass Transit -Transportation 0 764,900 0 0 0 0 0 0 0 0 764,900 331490 Other Transportation-Transp 0 22,292 0 0 0 0 0 0 0 0 22,292 ortation 331500 Economic Environment-Economi 21435,833 2,886,097 0 595,878 0 1,235,413 394 0 0 0 7,153,615 c 331620 Public Assistance -Human 0 408,751 0 0 0 0 0 0 • 0 408,751 Services 331690 OtA Se 0 137,973 0 6,95 0 0 0 0 0 144,925 Se 333000 Fen Lieeu 149,067 0 0 0 0 0 0 0 0 149,067 Of 334100 General Government -General 100,000 0 0 0 0 0 0 0 0 0 100,000 Government 334200 Public Safety -Public Safety 115,899 31,709 0 0 0 0 0 0 0 0 147,608 334390 Other Physical Environment -Physical 99,108 6,554,390 0 0 0 0 0 0 6,653,498 Environment 334420 Mass Transit -Transportation 181,651 209,471 0 0 0 0 0 0 0 391,122 334500 Economic Environment-Economi 0 3,490,399 0 0 0 0 0 0 0 3,490,399 c 100031 Indian River County Page Number: Account Code Description General Special Debt Service Capital Projects Permanent Enterprise Internal Pension Revenue Service Trust Component Total Units Memorandum 0 1,209,521 334690 Other Human Services -Human 0 1,209,521 0 X 0 0 0 p Services 334700 Culture/Recreation-Cul 0 ture/Recreation 201,490 0 0 25,000 0 0 0 0 0 335120 State Revenue 0 Sharing 3,117,523 0 0 0 0 0 0 0 Proceeds -General Government 335130 Insurance Agents 0 County 50,408 0 0 0 0 0 0 0 Licenses -General Government 335140 Mobile Home 0 Licenses -General 105,052 0 0 0 0 0 0 Government 335150 Alcoholic Beverage 0 Licenses -General 44,098 0 0 0 0 0 0 Government 335160 pari-Mutuel p Distribution 446,500 0 0 0 0 0 0 Replacement(Sec.212 .20FS)-General 335180 Local Government 0 Half -Cent Sales 8,356,527 0 420,157 0 0 0 0 Tax -General Government 335190 Other General 0 Government -General 0 0 500,004 0 0 0 0 Government 335200 Public Safety -Public 0 Safety 0 326,136 0 0 0 0 0 335420 Mass 0 Transit -Transportation 0 1,728,730 0 0 0 0 0 0 335490 Other 0 Transportation-Transp 0 780,124 0 0 0 0 0 ortation 335610 Health or 0 Hospitals -Human 900 0 0 0 0 0 0 C Services 335690 Other Human Services -Human 8,413 0 0 0 0 0 0 0 Services 100031 Indian River County 226,490 3,117,523 50,408 105,052 44,098 446,500 8,776,684 500,004 326,136 1,728,730 780,124 900 8,413 Page Number: 3 Account Code Description General Special Revenue Debt Service Capital Projects Permanent Enterprise Internal Service Pension Trust Component Total Units Memorandum 335700 Culture/Recreation-Cul ture/Recreation 0 78,425 0 0 0 0 0 0 0 78,425 335900 Other State Shared-Other 3,401 0 0 0 0 0 0 0 0 0 3,401 337100 General Government 42,825 ,825 76,300 0 312,377 0 0 0 0 0 0 431,502 341100 Recording Fees-General Government 1,245,368 1,293,569 0 0 0 0 0 0 0 0 2,538,937 141200 Internal Services Fees and Charges -General Government 0 14,074 0 0 0 0 19,794,073 0 0 0 19,808,147 {41520 Sheriff-General Government 367,589 0 0 0 0 0 0 0 • 0 367,589 41550 Supervisor of Elections-General Government 59,925 0 0 0 0 0 0 • 0 59,925 41800 County Officer Commission and Fees-General 1,422,793 0 0 0 0 0 0 0 0 0 1,422,793 Government 41900 Other General Government Charges and Fees-General 1,289,117 42,775 0 C 0 14,453 0 0 • 0 1,346,345 Government 42100 Police-Public Safety 0 53,585 0 C 0 0 0 0 0 53,585 12200 Fire Protection-Public Safety 0 819,046 0 0 0 0 0 0 0 0 819,046 12600 Ambulance Fees-Public Safety 0 2,889,204 0 0 0 -::: 0 0 0 0 2,889,204 2900 Other Public Safety Charges and Fees-Public Safety 0 0 0 0 9,105 0 0 0 0 9,105 3400 Garbage/Solid Waste-Physical Environment 0 0 OI0 0 5,688,303 0 0 0 5,688,303 100031 Indian River County Page Number: 4 Account Code Description General Special Debt Service Capital Projects Permanent Enterprise Internal Pension Trust Component Total Revenue Service Units Memorandum 343600 Water/Sewer 27,804,416 Combination 0 0 0 1J 0 27,804,416 0 0 0 0 Utility -Physical Environment 344900 Other Transportation 232,873 Charges-Transportatio 38,054 194,819 0 0 0 0 0 0 0 n 345100 Housing -Economic 733,622 Environment 0 0 0 0 0 0 0 0 0 733,622 347200 Parks and Recreation-Culture/Re 694,686 0 0 0 0 3,530,156 0 0 0 0 4,224,842 creation 348110 Filing Fees -County 117,937 Court Criminal 117,937 0 0 0 0 0 0 0 0 348210 Filing Fees -Circuit Court Criminal 67,519 0 0 0 0 0 0 0 0 0 67,519 348310 Filing Fees -County Court Civil 449,828 183,371 0 0 0 0 0 0 0 633,199 348410 Filing Fees -Circuit Court Civil 559,989 9,244 0 0 0 0 0 0 0 569,233 348510 Filing Fees -Traffic 889,063 Court (Criminal and 751,443 137,620 0 0 0 0 0 0 0 Civil) 348610 Filing Fees -Juvenile Court(Dependancy/De 2,043 0 0 0 0 0 0 0 0 0 2,043 linquency) 348710 Filing Fees -Probate 187,888 0 0 0 0 0 0 0 0 0 187,888- 349000 Other Charges for 4,227,991 1,085,123 0 0 0 Services -Other 0 0 0 0 5,313,114 Charges for Services 351000 Judgments and Fines -Fines 451,023 192,433 0 0 0 0 0 C 0 643,456 352000 Library -Fines 101,940 0 0 0 0 0 0 0 0 0 101,940 353000 Pollution Control Violations -Fines 829,419 0 0 0 0 0 0 0 0 829,419 I nnni r l.,,r;a„ P;—, 0,,,, , Page Number: Account Code Description General Special Debt Service Capital Projects Permanent Enterprise Internal Pension TrustComponent Total Revenue Service Units Memorandum 354000 Violations of Local 0 515,778 Ordinances -Fines 231,569 263,209 0 10 :: 0 21,000 0 0 361000 Interest and Other Earnings --- 2,603,284 6,268,166 107,847 1,595,19 0 6,335,240 651,915 0 0 20,241 17,581,885 362000 Rents and 0 330,844 Royalties -Rents and 192,431 0 0 0 0 138,413 0 0 0 Royalties 363110 Capital 0 8,377,210 Improvement -Special 0 377,239 0 0 0 7,999,971 0 0 0 Assessments 363240 Transportation -Impact 24,633,680 Fees 0 24,633,680 0 0 0 0 0 0 0 0 364000 Disposition of Fixed 0 836,054 Assets -Sales 728,319 65,181 0 0 42,554 0 0 0 366000 Contributions and 0 2,746,093 Donations from Private 276,516 2,454,577 0 15,000 0 0 0 0 0 Sources -Contributions 369000 Other Miscellaneous 2,174,839 Revenues-Miscellaneo 372,368 472,125 0 20,852 0 322,678 986,816 0 0 0 us 369300 Settlements-Miscellan 1,104,116 eous 0 0 0 0 0 0 1,104,116 0 C 0 381000 Interfund Transfers _: 0 23,682,562 In -Non -Operating 4,511,356 12,220,992 0 6,387,009 0 563,205 0 0 384000 Debt 49,996,735 Proceeds -Proceeds 0 49,996,735 0 0 0 0 0 0 0 389400 Other Grants and 168,239 Donations -Proprietary- 0 0 0 0 0 0 0 0 168,239 Proprietary Non -Operating 389800 Capital Contributions -Private- 0 0 0 0 26,781,118 0 0 0 0 26,781,118 Proprietary Non -Operating Total 'iZ10OT7F')14 et S1 7()A'21A el V^r 0— min n - -I _ , • —, -., W... , , -.., .nv no'*, i o i,-wo .DGG,JJ /,-114 W 100031 Indian River County 0 $922,102 $397,438,701 Page Number: 6 100031 Indian River County Fiscal Year Ended 2006 Expenditures Account Code Description General Special Revenue 3/6/2001 10:44:13AM . Funds Debt Service Capital Projects Permanent Enterprise Internal Pension Trust Component Total Service Units Memorandum 511 10 Legislative -General Government -Pers Sery 644,538 p 0 0 0 0 0 0 0 644,538 511 30 Legislative -General Government -Op Exp 301,773 0 0 0 0 0 0 0 0 0 301,773 512 10 Executive -General --- __F____ Government -Pers Sery 432,255 0 0 0 0 0 0 0 0 432,255 512 30 Executive -General Government -Op Exp 17,422 0 0 0 0 0 0 0 0 0 17,422 512 60 Executive -General Government -Cap Outlay 803 0 0 0 0 0 0[E- 0 803 513 10 Financial and Administrative-Gener al 7,610,769 p 0 90,099 0 0 195,587 0 0 7,896,455 513 30 Financial and Administrative-Gener al 1,681,616 0 0 993 0 0 2,314,335 0 0 0 3,996,944 513 60 Financial and al 611,727 0 0 25,917,745 0 0 0 0 0 26,529,472 514 10 Legal Counsel -General Government -Pers 598,441 0 0 0 0 0 0 0 0 598,441 514 30 Legal Counsel -General Government -Op Exp 39,821 0 0 0 0 0 0 0 0 39,821 515 10 Comprehensive 0 0 1,410,307 Planning -General Government -Pers 1,178,182 232,125 0 0 0 0 0 0 515 30 Comprehensive 0 0 620,719 Planning -General Government -Op Exp 374,531 246,188 0 0 0 0 0 0 515 60 Comprehensive __-F- 0 0 17,869 Planning-General Government -Cap 5,027 12,842 0 0 0 0 0 0 515 80 Comprehensive 0 0 57,402 Planning -General Government -Grants 57,402 0 0 0 0 0 0 100031 Indian River County Page Number: Account Code Description General Special Debt Service Capital Projects Penn anent Enterprise Internal Pension Trust Component Total Revenue Service Units Memorandum -9-17-10 Debt Service Payments -General 394,902 579,792 3,425,802 0 0 0 Government -Pers 0 0 0 36,965 4,437,461 517 30 Debt Service Payments -General 0 0 5,594 0 0 0 0 Government -Op Exp 0 0 5,594 519 10 Other General Government -General 3,233,599 547,235 0 0 0 0 1,666,532 p Government -Pers 0 0 5,447,366 519 30 Other General Government -General 3,076,202 172,337 0 187,621 0 0 14,328,573 0 0 Government -Op Exp 0 17,764,733 519 60 Other General Government -General 593,556 3,397 0 8,204,217 0 0 0 0 Government -Cap 0 0 8 801,170 519 80 Other General Government -General 160,051 0 0 0 0 0 Government -Grants 0 0 0 160,051 521 10 Law Enforcement -Public 18,790,445 94,015 0 0 0 0 0 Safety -Pers Sery 0 0 18,884,460 521 30 Law —F Enforcement -Public 3,579,138 132,344 0 0 0 0 0 0 Safety -Op Exp 0 0 3,711,482 521 60 Law Enforcement -Public 1,896,653 403,418 0 0 0 0 00 Safety -Cap Outlay 0 0 2,300,071 521 80 Law Enforcement -Public 0 134,794 p 0 0 0 0 Safety -Grants & Aids F 0 0 134,794 522 10 Fire Control -Public --- — Safety -Pers Sery 0 18,707,230 0 0 0 0 C 0 0 0 18,707,230 522 30 Fire Control -Public Safety -Op Exp 0 3,301,587 0 0 0 0 0 0 0 3,301,587 522 60 Fire Control -Public Safety -Cap Outlay 0 4,479,161 0 1,008,550 0 0 C 0 0 0 5,487,711 523 10 Detention/Correction s -Public 9,261,591 108,498 p 0 0 0 0 0 Sery 0 0 9,370,089 523 30 Detention/Correction s -Public 2,284,983 51,706 0 0 0 0 0 0 0 Exp 0 2,336,689 i23 60 Detention/Correction s -Public 546,454 5,637 0 0 0 0 0 Outlay 0 0 552,091 24 10 Protective Inspections -Public 427,706 0 0 0 0 2,652,552 0 0 Safety -Pers Sery 0 3,080,258 100031 Indian River County Page Number: 2 Account Code Description General Special Revenue Debt Service Capital Projects Permanent Enterprise Internal Pension Service Trust Component Units Total Memorandum 524 30 Protective Inspections-Public Safety-Op Exp 52,444 0 0 0 0 1,137,277 0 0 0 1,189,721 524 60 Protective Inspections-Public Safety-Cap Outlay 1,096 0 0 0 0 0 0 0 0 0 1,096 525 10 Emergency and Disaster Relief-Public 489,427 91,915 0 0 0 0 0 0 0 0 581,342 525 30 Emergency and Disaster Relief-Public 93,061 615,404 p 0 0 0 0 0 0 708,465 525 60 Emergency and Disaster Relief-Public 79,414 38,762 0 0 0 0 0 00 0 118,176 527 30 Medical Examiners-Public Safety-Op Exp 288,924 0 0 0 0 0 0 0 0 288,924 529 30 Other Public Safety-Public Safety-Op Exp 20,063 0 0 0 0 0 0 0 0 20,063 533 60 Water Utility Services-Physical Environment-Cap 0 220,429 0 0 0 0 0 0 0 220,429 534 10 Garbage/Solid Waste-Physical Environment-Pers 0 0 0 0 0 2,743,412 0 0 0 2,743,412 534 30 Garbage/Solid Waste-Physical Environment-Op Exp 0 0 0 0 0 8,779,411 0 0 0 8,779,411 534 80 Garbage/Solid 35,500 Waste-Physical 0 0 0 0 0 35,500 0 0 0 0 Environment-Grants 5_3_61 0 Water/Sewer Services-Physical Environment-Pers 0 0 0 0 0 7,036,854 0 0 0 7,036,854 536 30 Water/Sewer Services-Physical Environment-Op Exp 0 0 0 0 0 22,928,705 0 0 0 22,928,705 536 70 Water/Sewer Services-Physical Environment-Debt 0 0 0 0 0 3,422,266 F-0 0 0 0 3,422,266 537 10 Conservation/Resour - - - - - ce Management-Physic 297,749 0 0 0 0 0 C 0 0 0 297,749 i37 30 Conservation/Resour ce Management-Physic 80,630 16,057 0 0 0 0 0 0 0 0 96,687 37 60 Conservation/Resour ce Management-Physic 5,069 1,900 0 0 0 0 0 0 0 0 6,969 100031 Indian River County Page Number: 3 Account Code Description General Special Debt Service Capital Proiects Permanent Enterprise Internal Pension Revenue Service 37 80 Conservation/Resour ce 76,068 C Management -Physic 0 0 0 0 539 10 Other Physical 0 0 Environment-Physica 1 0 237,389 539 30 Other Physical 0 0 Environment-Physica 1 0 426,585 539 60 Other Physical 0 0 0 Environment-Physica 1 0 7,593,386 541 10 Road/Street D 0 0 Facilities-Transportati 0 7,778,042 on -Pers 0 0 541 30 Road/Street 0 0 Facilities-Transportati 448,650 7,190,117 on -Op 0 I 0 541 60 Road/Street 0 C Facilities-Transportati 0 13,2.55,814 on -Cap 0 0 541 80 Road/Street 0 i 0 Facilities-Transportati 1,912,601 25,189 on -Grants 0 0 552 80Industry 0 Development-Econo 162,742 0 mic 0 C 553 10 Veterans 0 0 Services -Economic 197,797 0 Environment -Pers 0 0 553 30 Veterans 0 C Services -Economic 11,894 0 Environment -Op Exp p 553 80 Veterans 0 0 Services -Economic 69,300 0 Environment -Grants 0 554 10 Housing and Urban Development-Econo 0 0 mic 554 30 Housing and Urban Development-Econo 0 0 mic 559 30 Other Economic Development-Econo 0 444,267 mic i59 80 Other Economic Development-Econo 168,239 0 mic i62 10 Health -Human Services -Pers Sery 333,176 0 100031 Indian River County 0 0 0 0 76,068 0 0 0 0 0 0 0 0 0 45,720 0 0 0 0 0 497,991 0 p 0 0 0 0 0 0 C 0 D 0 0 0 0 0 1,356,513 0 0 C 0 0 0 0 0 0 0 I 0 0 0 C 444,267 0 1 0 0 0 0 333,176 0 i 0 0 0 C 0 0 0 0 0 0 0 0 C 0 0 0 0 0 0 0 0 0 C 0 0 0 p 0 0 p 0 0 Trust Component Total Units Memorandum 0 0 76,068 0 0 237,389 0 0 472,305 0 0 8,091,377 0 0 7,778,042 0 0 7,638,767 0 0 14,612,327 0 0 1,937,790 0 0 162,742 0 0 197,797 0 0 11,894 0 0 69,300 0 262,597 262,597 0 557,903 557,903 0 0 444,267 0 0 168,239 or—_10 333,176 Page Number: 4 Account Code Description General Special Debt Service Capital Projects Permanent Enterprise Internal Pension Trust Component Total Revenue Service Units Memorandum 562 30 Health-Human Services-Op Exp 75,475 0 0 0 0 0 0 0 0 0 75,475 562 60 Health-Human Services-Cap Outlay 90,016 0 0 0 0 0 0 0 0 0 90,016 562 80 Health-Human Services-Grants & 379,740 17,411 0 0 0 0 0 Aids 0 0 397,151 563 80 Mental Health-Human 446,313 0 0 0 0 0 0 Services-Grants & 0 0 446,313 564 10 Public Assistance-Human 176,614 161,681 0 0 0 0 Services-Pers Sery 0 0 0 338,295 564 30 Public Assistance-Human 760,490 1,340,964 0 0 0 0 0 Services-Op Exp 0 0 2,101,454 564 60 Public Assistance-Human 2,940 0 0 0 0 0 0 0 0 Services-Cap Outlay 0 2,940 564 80 Public Assistance-Human 51,611 0 0 0 0 0 0 Services-Grants & 0 0 51,611 569 10 Other Human Services-Human 0 80,761 0 0 0 0 0 Services-Pers Sery 0 0 80,761 569 30 Other Human Services-Human 81,020 329,798 0 0 0 0 Services-Op Exp 0 0 0 0 410,818 569 60 Other Human Services-Human 0 15,584 0 0 0 0 0 Services-Cap Outlay 0 0 15,584 569 80 Other Human Services-Human 1,987,944 6,138,684 0 0 0 0 0 0 Services-Grants & 00 8 126,628 571 10 Libra ries-Culture/Rec reation-Pers 2,389,302 0 0 0 0 0 0 0 0 F 0 2,389,302 571 30 Libraries-Culture/Rec reation-Op 1,755,209 0 0 0 0 0 0 0 0 0 1,755,209 i71 60 Libra ries-Culture/Rec reation-Cap 38,767 0 0 0 0 0 0 0 0 38,767 72 10 Parks/Recreation-Cul ture/Recreation-Pers 4,014,093 199,849 0 0 0 1,101,152 0 0 0 0 Sery 5,315,094 72 30 Parks/Recreation-Cul ture/Recreation-Op 1,327,703 158,789 0 0 0 2,085,119 0 0 0 0 ExP 3,571611 100031 Indian River County Page Number: 5 Account Code Description General Special Debt Service Capital Projects Permanent Enterprise Internal Pension Trust Component Total Revenue Service Units Memorandum 572 60 Parks/Recreation-Cul ture/Recreation-Cap 367,794 5,886,434 0 539,026 0 0 0 0 0 6,793,254 Outlay 572 70 Parks/Recreation-Cul ture/Recreation-Debt 0 0 0 0 0 284,795 0 0 0 0 284,795 Sery 572 80 Parks/Recreation-Cul ture/Recreation-Gran 242,498 0 0 0 0 0 0 0 0 242,498 is 581 90 Interfund Transfers Out -Other 12,240,959 869,678 61,968 114,831 0 5,624,051 4,771,075 0 0 0 23,682,562 Uses -Other Uses 602 30 State Attorney Administration-Gener 0 406,861 0 0 0 0 0 0 0 406,861 al 602 80 State Attorney Administration-Gener 28,928 248,019 0 0 0 0 0 0 0 0 276,947 al 603 80 Public Defender Administration-Gener 5,440 98,322 0 0 0 0 0 0 0 0 103,762 al 604 10 Clerk of Court Administration-Gener 672,051 0 0 0 0 0 0 0 0 0 672,051 al 604 30 Clerk of Court Administration-Gener 94,539 0 0 0 0 0 0 0 0 94,539 al 605 30 Judicial Support -General 162 0 0 0 0 0 0 0 0 162 Administration -Op 608 10 Jury Management -Genera I 84,503 0 0 0 0 0 0 0 0 84,503 608 30 Jury I Management -Genera 6,125 0 0 0 0 0 0 0 0 0 6,125 614 10 Clerk of Court -Circuit 544,500 0 0 0 0 0 C 0 0 0 544,500 Court -Criminal -Pers 614 30 Clerk of Court -Circuit 26,675 0 0 0 0 00 0 0 0 26,675 Court -Criminal -Op 616 30 Clinical Evaluations -Circuit 1,975 0 0 0 0 0 0 0 0 0 1,975 Court -Criminal -Op 634 10 Clerk of Court -Circuit Court -Civil -Pers Sery 215,236 0 0 0 0 0 0 0 0 215,236 634 30 Clerk of Court -Circuit Court -Civil -Op Exp 29,475 0 0 0 0 0 0 0 0 29,475 100031 Indian River County Page Number: Account Code Description General Special Debt Service Capital Protects Permanent Enterprise Internal Pension Revenue Service Court -Family -Pers 375,217 0 Sery C 0 0 654 30 Clerk of Court -Circuit 0 0 0 00 0F c Court -Family -Op Exp 44,170 83,762 C 0 662 30 Alternative Dispute 0 0 p Resolutions -Circuit 24,000 0 0 Court -Family -Op Exp 0 0 667 80 Court -Based Victim 0 0r _____O Services -Circuit 67,726 0 0 Court -Family -Grants 0 0 674 10 Clerk of Court -Circuit 0 0 Court -Juvenile -Pers 208,313 0 0 Sery 0 0 0 674 30 Clerk of Court -Circuit 0 0 0 Court -Juvenile -Op 11,123 0 i Exp 0 C 0 681 30 Public Defender 0 0 0 0 Conflicts -Circuit 10,283 17,424 0 Court -Juvenile -Op 0 694 10 Clerk of Court -Circuit Court -Probate -Pers 172,219 0 t Sery 694 30 Clerk of Court -Circuit Court -Probate -Op 2,969 0 C Exp 703 30 Attorneys Fees -Circuit 7,803 0 0 Court -Probate -Op 711 10 Courthouse Security -General 1,282,234 0 0 Operations (Court 711 30 Courthouse Security -General 95,050 0 0 Operations (Court 714 10 Public Law Library -General 62,969 0 0 Operations (Court 714 30 Public Law Library -General 71,797 0 0 Operations (Court 724 10 Clerk of Court -County 305,080 0 0 Court -Criminal -Pers F24 30 Clerk of Court -County 16,252 0 0 Court -Criminal -Op '44 10 Clerk of Court -County 130,670 0 0 Court -Civil -Pers Sery 100031 Indian River County 0 0 0 _0 C 0 0 0 127,932 0 0 0 00 0F c 0 0 0 C 0 0 0 0 0 p 0 0 0 0 0 0 0 0 0r _____O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 C 0 0 0 0 0 0 0 0 0 0 0 0 p 0 Trust Component Total Units Memorandum 0 0 375,217 0 0 127,932 0 0 24,000 0 0 67,726 0 0 208,313 0 0 11,123 0 0 27,707 0 0 172,219 0 0 2,969 0 0 7,803 0 0 1,282,234 0 0 95,050 0 0 62,969 0 0 71,797 0 0 305,080 0 0 16,252 0 0 130,670 Page Number: 7 Account Code Description General Special Debt Service Capital Projects Permanent Revenue Court -County 3,000 Court -Civil -Op Exp Clerk of Court -County 435,266 Court -Traffic -Pers Legislative -General Government -Op Exp 25,589 Total $94,077,75$ 01 0 1,583 $3,493,364 $37,963,306 Enterprise Internal Pension Service 0 0 0 0 0 0 0 0 :.. :: 0 0 $0 $57,831,094 $23,276,102 $0 Trust Component Total Units Memorandum 0 0 3,000 0 0 435,266 01 01 25,589 $0 $857,465 $300,700,672 100031 Indian River County Page Number: 8 J 7� INDIAN RIVER COUNTY, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR OCTOBER 1, 2005 THROUGH SEPTEMBER 30, 2006 Jeffrey K. Barton Clerk of the Circuit Court Prepared By: Clerk of the Circuit Court Finance Department Diane Bernardo Finance Director Indian River County, Florida COMPREHENSIVE ANNUAL FINANCIAL REPORT Fiscal Year Ended September 30, 2006 Board of County Commissioners as of September 30, 2006 Arthur R. Neuberger Sandra L. Bowden Chairman Wesley S. Davis Gary C. Wheeler Thomas S. Lowther Vice -Chairman Current Board of County Commissioners (after November 21, 2006) Gary C. Wheeler Joseph E. Flescher Chairman Wesley S. Davis Sandra L. Bowden Peter D. O'Bryan Vice -Chairman Elected Constitutional Officers Jeffrey K. Barton Charles W. Sembler David C. Nolte Clerk of the Circuit Court Tax Collector Property Appraiser Kay Clem Roy Raymond Supervisor of Elections Sheriff County Management Joseph Baird County Administrator Jason Brown Budget Director John W. King Director of Emergency Services Robert M. Keating Director of Community Development Thomas W. Frame Director of General Services Robert J. Komarinetz Director of Golf Course William G. Collins II County Attorney James W. Davis Director of Public Works Erik Olson Director of Utilities Cliff Crawford Director of Recreation James Sexton Director of Human Resources a Indian River County, Florida a COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS Fiscal Year Ended September 30, 2006 INTRODUCTORY SECTION Page g Number LETTEROF TRANSMITTAL........................................................................................................ i ORGANIZATIONCHART..............................................................................................................v CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE INFINANCIAL REPORTING................................................................................................. vi FINANCIAL SECTION INDEPENDENTAUDITORS' REPORT..........................................................................................1 MANAGEMENT'S DISCUSSION AND ANALYSIS.....................................................................3 BASIC FINANCIAL STATEMENTS: L�l Government -wide Financial Statements: Statementof Net Assets........................................................................................................17 Statementof Activities..........................................................................................................18 Fund Financial Statements: Balance Sheet - Governmental Funds...................................................................................20 Statement of Revenues Expenditures, and Changes in p g Fund Balances - Governmental Funds............................................................................22 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities ......................24 DStatement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - General Fund.................................................................................25 Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - Impact Fees Fund...........................................................................26 Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - Secondary Roads Construction Fund............................................27 Statement of Revenues, Expenditures, and Changes in Fund Balances - n Budget and Actual -Transportation Fund.......................................................................28 �J Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - Emergency Services District Fund................................................29 Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual — Land Acquisition Fund.................................................................30 DStatement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual — Federal/State Grants Fund.............................................................31 Indian River County, Florida COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS - CONTINUED Fiscal Year Ended September 30, 2006 Page Number Statement of Net Assets - Proprietary Funds........................................................................33 Statement of Revenues, Expenses, and Changes in Fund Net Assets - Proprietary Funds ..........34 Statement of Cash Flows - Proprietary Funds......................................................................36 Statement of Fiduciary Net Assets - Agency Fund...............................................................40 Notes to the Financial Statements...............................................................................................41 Combining and Individual Fund Statements and Schedules: N • Governmental Funds .........................................100 nm Combining Balance Sheet - oa�or Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds......................................108 Budgetary Comparison Schedules..........116 .............. Combining Statement of Net Assets - Nonmajor Enterprise Funds ...................................150 Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets - Nonmajor Enterprise Funds .........................................151 Combining Statement of Cash Flows - Nonmajor Enterprise Funds..................................152 Combining Statement of Net Assets - Internal Service Funds ...........................................155 Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets - Internal Service Funds..................................................156 Combining Statement of Cash Flows - Internal Service Funds ..........................................157 Statement of Changes in Assets and Liabilities - Agency Fund.........................................160 Capital Assets Used in the Operation of Governmental Activities: Comparative Schedules By Source.....................................................................................162 Schedule by Function and Activit ..................................163 Schedule of Changes by Function and Activity..................................................................164 a Indian River County, Florida COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS- CONTINUED Fiscal Year Ended September 30, 2006 STATISTICAL SECTION Page Number SCHEDULE 1 Net Assets by Component - Last Six Fiscal Years ...........................................166 SCHEDULE 2 Changes in Net Assets - Last Six Fiscal Years .................................................168 SCHEDULE 3 Fund Balances, Governmental Funds - Last Ten Fiscal Years .........................172 SCHEDULE 4 Changes in Fund Balances, Governmental Funds — LastTen Fiscal Years..................................................................................174 SCHEDULE 5 Tax Revenues by Source, Governmental Funds — LastTen Fiscal Years..................................................................................176 SCHEDULE 6 Assessed Value and Actual Values of Taxable Property - LastTen Fiscal Years..................................................................................177 SCHEDULE 7 Property Tax Rates - Direct and Overlapping Tax Rates - LastTen Fiscal Years..................................................................................178 SCHEDULE 8 Principal Property Taxpayers - Year 2006 and Year 1997 ...............................180 SCHEDULE 9 Property Tax Levies and Collections - Last Ten Fiscal Years ..........................181 SCHEDULE 10 Ratios of Outstanding Debt by Type -Last Ten Fiscal Years ..........................182 SCHEDULE 11 Ratio of Net General Bonded Debt Outstanding to Taxable Value and Net Bonded Debt Per Capita - Last Ten Fiscal Years ..........................184 SCHEDULE 12 Computation of Legal Debt Margin..................................................................185 SCHEDULE 13 Direct and Overlapping Governmental Activities Debt....................................186 SCHEDULE 14 Pledged Revenue Coverage - Water and Sewer Revenue Bonds - nLast Ten Fiscal Years..................................................................................188 Indian River County, Florida COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS- CONTINUED Fiscal Year Ended September 30, 2006 Page Number SCHEDULE 15 Pledged Revenue Coverage - Recreational Revenue Refunding Bonds - LastTen Fiscal Years..................................................................................190 SCHEDULE 16 Pledged Revenue Coverage - Housing Authority Component Unit LastTen Fiscal Years..................................................................................191 SCHEDULE 17 Demographic and Economic Statistics - Last Ten Years..................................192 SCHEDULE 18 Principal Employers - Year 2006 and Nine Years Ago ....................................193 SCHEDULE 19 Building Permits — Last Ten Fiscal Years .......................................................194 SCHEDULE 20 Operating Indicators by Function/Program — Last Ten Fiscal Years ...............196 SCHEDULE 21 Full Time Equivalent County Government Employees by Function/Program - Last Six Fiscal Years ............................................200 SCHEDULE 22 Capital Asset Statistics by Function/Program - Last Ten Fiscal Years ............202 SCHEDULE 23 Department of Utility Services - Historical Rate Structure — LastNine Fiscal Years................................................................................206 SCHEDULE 24 Water and Wastewater Customers - Last Ten Fiscal Years..............................208 SCHEDULE 25 Top 10 High Volume Customers of Utility Service .........................................209 SCHEDULE 26 Capacity Charges - Utilities Department - Last Eight Fiscal Years .................210 SCHEDULE 27 Pledged Revenues for Recreational Revenue Refunding Bonds, Series 2003 — LastTen Fiscal Years..................................................................................211 SCHEDULE 28 Pledged Revenues for Spring Training Facility Revenue Bonds, Series 2001 — LastTen Fiscal Years..................................................................................212 Indian River County, Florida COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS- CONTINUED Fiscal Year Ended September 30, 2006 COMPLIANCE SECTION Page Number Federal and State Grants: Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards.................................................213 Independent Auditors' Report on Compliance with Requirements Applicable to Each Major Federal Program and Major State Project and on Internal Control over Compliance in Accordance with OMB Circular A-133 and the Executive Office of the Governor's State Projects Compliance Supplement.....................................214 Schedule of Expenditures of Federal Awards and State Projects.............................................216 Notes to Schedule of Expenditures of Federal Awards and State Projects...............................220 Schedule of Findings and Questioned Costs - Federal Awards and State Projects ..................221 O Indian River County, Florida COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS- CONTINUED �J Fiscal Year Ended September 30, 2006 n AUDITOR GENERAL REPORTS SECTION Page Number COUNTY MANAGEMENT COMMENTS ............................ .....................................................223 BOARD OF COUNTY COMMISSIONERS Independent Auditor's Report ...................................................................................................227 Special Purpose Financial Statements ......••........• .............••••••228 Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards .......................................................283 ManagementComments...........................................................................................................284 Response to Management Comments.......................................................................................287 CLERK OF THE CIRCUIT COURT IndependentAuditor's Report ...................................................................................................290 Special Purpose Financial Statements ......................................291 Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards .......................................................299 ManagementComments.....................................................................................................300 PROPERTY APPRAISER Independent Auditor's Report ...................................................................................................304 Special Purpose Financial Statements ..........................................305 Report on Compliance and Other Matters and on Internal Control over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards .......................................................311 Management Comments.312 .......................................................................................................... U Indian River County, Florida a COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS -CONTINUED Fiscal Year Ended September 30, 2006 Page Number SHERIFF IndependentAuditor's Report ...................................................................................................316 Special Purpose Financial Statements......................................................................................317 Report on Compliance and Other Matters and on Internal Control over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards .......................................................325 ManagementComments...........................................................................................................326 SUPERVISOR OF ELECTIONS Independent Auditor's Report ...................................................................................................330 Special Purpose Financial Statements......................................................................................331 a Report on Compliance and Other Matters and on Internal Control over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards .......................................................339 aManagement Comments...........................................................................................................340 aTAX COLLECTOR Independent Auditor's Report ...................................................................................................344 Special Purpose Financial Statements......................................................................................345 aReport on Compliance and Other Matters and on Internal Control over Financial Reporting Based on an Audit of Financial Statements Performed in aAccordance with Government Auditing Standards .......................................................354 ManagementComments...........................................................................................................355 �ORI�% 1 JEFFREY K. BARTON Clerk of Circuit Court and Comptroller P.O. Box 1028 Vero Beach, Florida 32961-1028 Telephone (772) 770-5185 March 12, 2007 To the Citizens of Indian River County: The Comprehensive Annual Financial Report of Indian River County, Florida for the fiscal year ended September 30, 2006, is respectfully submitted. State law requires that every general-purpose government publish a complete set of audited financial statements within six months of the close of each fiscal year. This report was prepared by the Finance Department under the supervision of the Clerk of the Circuit Court. Responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the Finance Department and is contingent upon the internal control established for this purpose. Since the cost of internal control should not exceed anticipated benefits, the objective of the financial statements is to provide reasonable, rather than absolute, assurance that they are free of any material misstatements. Section 11.45, Florida Statutes, requires an annual audit of all County agencies. The County has adirected that the annual audit be more extensive than that required by Florida Statutes by requiring that the annual audit be a single audit covering all the funds and account groups of the County. The unqualified opinion of the auditors, Harris, Cotherman, Jones, Price and Associates, Certified Public Accountants — Chartered, of the County's financial statements for the year ended September 30, 2006 has been included in this report. The independent auditors' report is located at the front of the financial a section of this report. The audit was also designed to meet the requirements of Government Auditing Standards, the Florida Single Audit Act, the Federal Single Audit Act of 1984, the Single Audit Act Amendments of 1996, and revised OMB Circular A-133. Readers of this report are encouraged to read Management's Discussion and Analysis (MD&A), which provides basic financial information about the County and an overview of the County's activities. The MD&A immediately follows the independent auditors' report. Profile of the Government Indian River County, established on June 29, 1925, by an act of the Florida Legislature, is on the central Atlantic coast of Florida, approximately 100 miles southeast of Orlando and 135 miles north of Miami. The County is bordered by Brevard County to the north, St. Lucie County to the south, and Osceola and Okeechobee Counties on the west. There are approximately 100 miles of waterfront land in the County, including 23 miles of Atlantic beaches. The City of Vero Beach is the seat of County government. The functional (seasonal plus resident) population reaches approximately 160,000. Like the rest of the State of Florida, the County has experienced significant population growth. Retail trade and the service industries remain the largest sectors of employment in the County. Other major sources of jobs are found in government and agriculture. Indian River citrus is a well-recognized name and product throughout the United States and internationally. I I Indian River County is a Non -Charter County established under the Constitution and the Laws of the State of Florida. This Comprehensive Annual Financial Report (CAFR) includes the funds of the primary government (the Board of County Commissioners, the Clerk of the Circuit Court, the Property Appraiser, the Sheriff, the Supervisor of Elections and the Tax Collector), the blended component units consisting of the Emergency Services District and the Solid Waste Disposal District and one discretely presented component unit, the Indian River County Housing Authority. These component units were included because generally accepted accounting principles require that organizations for which the County is financially accountable be reported with the primary government (the County) as the reporting entity. This CAFR does not include the Indian River County School District, the Indian River County Mosquito Control District or the Indian River County Memorial Hospital. Local Economy Strong growth in the County continued and has provided the County the opportunity to lower tax rates while still providing a high level of services to County residents and visitors. Property tax values increased 17% from $12.1 billion in 2005 to $14.2 billion in 2006. Construction activity in 2006 was strong with 4,586 permits being issued for new construction with a value of $940.4 million. This was a slight decrease of 2.7% from last year. Just slightly less than 10% of the total County acreage is dedicated to citrus production. The County is a major producer of citrus in the state with citrus production increasing from 4.2 million boxes in 2005 to 7.5 million boxes in 2006. Total employment for FY 2006 was 56,664 and the average unemployment rate in 2006 reflected a decrease of .1 % from FY 2005. Population growth, which was averaging about 2.15% per year in the 1990s, was 3.9% in 2006. Indian River County's estimated population for 2006 was 135,262. In accordance with Florida Statute 163.3177(3)(a), Indian River County maintains a Capital Improvements Plan that covers a five-year period. Indian River County's Capital Improvement Program consists of many projects with the majority pertaining to road improvements and utility (water and sewer) expansion. The Public Works Department projects consist of road widening, secondary roads construction, bridge improvements, right-of-way acquisition and intersection improvements. The costs of these projects over a five-year period of time are estimated at $311,250,539. Several revenue sources are utilized to fund the various transportation infrastructure needs of the County. Some of these sources are road impact fees, one -cent sales tax, various gas taxes and fund transfers from the General Fund and Municipal Service Taxing Unit Fund (MSTU) of ad valorem taxes. The Utilities Department has planned on the addition of several new water distribution and wastewater collection lines to serve new customers. Expansion of the West Regional Wastewater Plant is set to begin during the 2007/2008 fiscal year at an estimated cost of $12 million. Additionally, an expansion is planned for the North R/O Water Plant at an estimated cost of $27 million. All of these improvements will be funded by Utility capacity charges from the additional customer base they will serve. ii 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 o renovations will be made t several of the Fire/EMS stations that were damaged by the September 2004 hurricanes with an estimated cost of about $11 million. Indian River County has entered into an agreement with Indian River Community College to start construction of a joint -use library for both Indian River County and the college. This additional facility will provide a resource to serve the County's growing population and students of the college and is projected to open in fall 2008. Public Works, Utilities and Community Development are currently proceeding with the design and construction of storm water projects in Vero Lake Estates, East Gifford and Roseland areas. Local funds will be used to match several State grants awarded for these storm water projects. The East Gifford Storm Water Watershed M.S.B.U. was created to account for local non -ad valorem assessments collected as a local match to receive a State grant for a comprehensive storm water improvement project for this area. Implementation of the Storm Water Master Plan as required by The National Pollutant Discharge Elimination System Requirements (NPDES) will reduce the amount of freshwater runoff and chemicals (fertilizers, pesticides, herbicides) entering the Indian River Lagoon. Awards and Acknowled e� ments The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to Indian River County for its comprehensive annual financial report (CAFR) for the fiscal year ended September 30, 2005. This was the 23rd consecutive year that the County has received this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. In addition, Indian River County also received the GFOA's Distinguished Budget Presentation Award for its annual budget document for the 2005-2006 fiscal year. This was the 15th consecutive year that the County has received this prestigious award. In order to qualify for the Distinguished Budget Presentation Award, the County's budget document had to be judged proficient as a policy document, financial plan, operations guide, and communications device. Summary I would like to thank the entire staff of the Finance Department for their invaluable assistance in the preparation of this report. I would also like to thank the Board of County Commissioners and their staff, and the other Constitutional Officers for their personal interest and unfailing support in planning and conducting the financial operations of the County in a responsible and progressive manner. Respectfully submitted, Jeffrey K. Barton L Clerk of the Circuit Court and Comptroller JKB/ms iv Indian River County BCC Departmental Organization Residents of Indian River County Clerk of Circuit Sheriff Board of Supervisor of Property Tax Court Elections County Appraiser Collector Commissioners Finance Department County Attorney County Administrator Executive Aide LC aAssistant County Administrator General Utility Emergency Community Office of Services Public Works Services Services Development Management &Budget Youth Leisure Services Geographic Info. Human Guidance (Golf Course) System (GIS) Recreation Resources Libraries Wastewater County Risk Engineering Treatment Emergency Planning Management Management Purchasing Roads & Bridges Water Environmental Computer Production Planning/ Services Facilities Fire /Rescue Management Code Enforcement Traffic General & Engineering IRCLHAP/ Mailroom/ Radiological Switchboard parks Emergency SHIP Division Biosolids Preparedness Program Operations Veterans Services Fleet Metropolitan Management Customer Emergency Planning Service Base Grant Organization Telecommunications Secondary Road Wastewater Building Shooting Construction Collection Animal Division Range Control Soil & Water Stormwater Water Conservation Distribution 911 Coordinator rdi Housing Solid Waste Beach Authority/ Restoration Disposal District Rental Assist. AG , Extension Human Services V Certificate of Achievement for Excellence in Financial Reporting Presented to Indian River County Florida For its Comprehensive Annual Financial Report for the Fiscal Year Ended September 30, 2005 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. ON r M Vkrz Arm "°'President TWIN Executive Director vi Indian River County, Florida Capital Assets Used in the Operation of Governmental Activities Schedule of Changes By Function and Activity September 30, 2006 Public safety Law enforcement Governmental 3,261,877 (1,080,006) 122,477 (90,978) Governmental Fire control Activities 2,136,916 (395,688) 21,000 (849) Activities Detention/Corrections Capital Assets 149,667 (44,362) Transfers Transfers Capital Assets Function and Activity October 1, 2005 Additions Deletions In Out September 30, 2006 General government: 2,390,554 155,250 (87,000) 196,580,310 (7,818) 2,450,986 Executive $ 103,296 $ 2,315 $ (9,389) $ - $ (5,072) $ 91,150 Financial and administrative 57,108,995 12,779,833 (639,022) 32,641 (45,673) 69,236,774 Legal counsel 26,086 - - 16,648 26,086 Comprehensive planning 209,469 28,231 (24,738) - (8,181) 204,781 Other general governmental services 4,380,563 1,767,278 (139,734) 35,587 (3,202) 6,040,492 Subtotal 61,828,409 14,577,657 (812,883) 68,228 (62,128) 75,599,283 Public safety Law enforcement 13,547,513 3,261,877 (1,080,006) 122,477 (90,978) 15,760,883 Fire control 9,711,340 2,136,916 (395,688) 21,000 (849) 11,472,719 Detention/Corrections 15,576,694 149,667 (44,362) 90,978 (122,477) 15,650,500 Emergency and disaster relief service: 5,033,527 155,939 (9,362) - (6,346) 5,173,758 Ambulance and rescue services 2,390,554 155,250 (87,000) 196,580,310 (7,818) 2,450,986 Other public safety 62,218 989 (32,155) - 8,401,398 31,052 Subtotal 46,321,846 5,860,638 (1,648,573) 234,455 (228,468) 50,539,898 Physical environement: Soil conservation Telecommunications Stormwater Subtotal Transportation: Road and street facilities IRC - Council on Aging Subtotal Economic environment: Veterans services Housing and urban development Subtotal Human services: Health Welfare Substance abuse council Subtotal Culture/Recreation: Libraries Parks and recreation Subtotal Court Related: Judicial Subtotal Construction in progress Total 63,231 984 (3,047) - 61,168 4,082 4,085 10,708 18,875 279,012 - - 279,012 346,325 5,069 (3,047) 10,708 359,055 188,832,025 8,158,956 (479,849) 72,458 (3,280) 196,580,310 1,541,439 242,442 (483,770) - (72,458) 1,227,653 190,373,464 8,401,398 (963,619) 72,458 (75,738) 197,807,963 6,955 - (1,622) - 5,333 16,648 16,648 23,603 (1,622) - 21,981 813,343 335,016 (447,746) 2,836 (22,613) 680,836 46,914 2,940 (21,209) - 28,645 5,123 - (2,226) - 2,897 865,380 337,956 (471,181) 2,836 (22,613) 712,378 9,988,784 38,767 (48,550) - 9,979,001 69,827,957 2,570,213 (105,494) 2,408 (2,146) 72,292,938 79,816,741 2,608,980 (154,044) 2,408 (2,146) 82,271,939 759,950 155,972 (71,400) 2,538 (2,538) 844,522 759,950 155,972 (71,400) 2,538 (2,538) 844,522 53,786,742 55,546,900 (12,485,317) - 96,848,325 $ 434,122,460 $ 87,494,570 $ (16,611,686) $ 393,631 $ (393,631) $ 505,005,344 164 Indian River County, Florida Capital Assets Used in the Operation of Governmental Activities Schedule By Function and Activity September 30, 2006 Buildings and Function and Activity Total Land Improvements Equipment Infrastructure General government: Executive $ 91,150 $ - $ $ 91,150 $ Financial and administrative 69,236,774 31,956,194 32,763,265 4,517,315 - Legal counsel 26,086 - - 26,086 - Comprehensive planning 204,781 204,781 - Other general governmental services 6,040,492 6,040,492 Subtotal 75,599,283 31,956,194 32,763,265 10,879,824 Public safety: Law enforcement 15,760,883 - 3,628,624 12,132,259 Fire control 11,472,719 477,345 3,005,105 7,990,269 - Detention/Corrections 15,650,500 1,052,241 13,357,800 1,240,459 a Emergency and disaster relief services 5,173,758 5,173,758 Ambulance and rescue services 2,450,986 - - 2,450,986 Other public safety 31,052 - 31,052 Subtotal 50,539,898 1,529,586 19,991,529 29,018,783 - Physical environment Soil conservation 61,168 - - 61,168 - Telecommunications 18,875 - 18,875 Stormwater 279,012 - - - 279,012 Subtotal 359,055 - - 80,043 279,012 Transportation: Road and street facilities 196,580,310 15,943,627 - 7,513,456 173,123,227 IRC - Council on Aging 1,227,653 - - 1,227,653 - Subtotal 197,807,963 15,943,627 8,741,109 173,123,227 Economic environment: Veterans services 5,333 - 5,333 - Housing and urban development 16,648 16,648 Subtotal 21,981 - 21,981 - Human services: Health 680,836 - - 680,836 - Welfare 28,645 - - 28,645 Substance abuse council 2,897 - - 2,897 - Subtotal 712,378 712,378 Culture/Recreation: Libraries 9,979,001 1,275,181 7,913,785 790,035 - Parks and recreation 72,292,938 48,690,352 18,711,692 1,594,839 3,296,055 Subtotal 82,271,939 49,965,533 26,625,477 2,384,874 3,296,055 Court Related: Judicial 844,522 - 3,013 841,509 - Subtotal 844,522 - 3,013 841,509 Total 408,157,019 $ 99,394,940 $ 79,383,284 $ 52,680,501 $ 176,698,294 96,848,325 Construction in progress Total $ 505,005,344 163 Indian River County, Florida Capital Assets Used in the Operation of Governmental Activities Comparative Schedules By Source September 30, 2006 Governmental activities capital assets: Land Right-of-way Buildings and improvements Equipment Infrastructure Construction in progress Total governmental activities capital assets FY 2005 FY 2006 $ $74,109,790 $ 83,451,313 12,479,094 15,943,627 72,864,290 79,383,284 48,306,305 52,680,501 172,576,239 176,698,294 53,786,742 96,848,325 $ 434,122,460 $ 505,005,344 Investment in governmental activities capital assets by sources: General revenue $ 324,188,007 $ Federal revenue sharing/grants 7,422,923 General obligation debt 48,460,071 Capital projects funds 50,403,678 Contributions 3,647,781 Total investment in governmental activities capital assets by sources 162 349,086,853 7,555,980 56,020,780 88,693,950 3,647,781 $ 434,122,460 $ 505,005,344 Q s CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL ACTIVITIES 161 Indian River County, Florida Combining Statement of Changes in Assets and Liabilities Agency Fund September 30, 2006 Balance Balance October 1, September 30, 2005 Additions Deductions 2006 a ASSETS Cash and cash equivalents $ 12,957,440 $ 347,728,995 $ 345,339,823 $ 15,346,612 Accounts receivable 22,603 81,842 88,371 16,074 Total assets $ 12,980,043 $ 347,810,837 $ 345,428,194 $ 15,362,686 LIABILITIES Accounts payable $ 69,478 $ 42,384,966 $ 42,170,945 $ 283,499 Due to other governments 4,536,812 302,907,926 302,771,831 4,672,907 Other deposits held in escrow 8,373,753 32,266,522 30,233,995 10,406,280 Total liabilities $ 12,980,043 $ 377,559,414 $ 375,176,771 $ 15,362,686 a 0 0 0 a o 0 0 0 D 160 O FIDUCIARY FUND Agency Fund- To account for the assets held solely in a custodial capacity by the County. L� 159 Indian River County, Florida Combining Statement of Cash Flows Internal Service Funds For the Year Ended September 30, 2006 RECONCILIATION OF OPERATING INCOME(LOSS) TO NET CASH PROVIDED BY OPERATING ACTIVITIES Operating income (loss) Adjustments to reconcile operating income to net cash provided by (used in) operating activities: Depreciation (Increase) Decrease in assets: Accounts receivable Due from other governments Inventories Deposits Increase (Decrease) in liabilities: Accounts payable Claims payable Accrued compensated absences Total adjustments Net cash provided by operating activities NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES Geographic Fleet Self Information Management Insurance Systems Totals $ 2,479 $ 2,263,297 $ 10,086 $ 2,275,862 6,371 1,813 3,036 11,220 (71,461) (1,251,739) - (1,323,200) (1,656) - - (1,656) (6,092) - - (6,092) - (821,643) - (821,643) 18,792 163,792 46,943 229,527 - 536,000 - 536,000 (4,819) 630 - (4,189) (58,865) (1,371,147) 49,979 (1,380,033) $ (56,386) $ 892,150 $ 60,065 $ 895,829 Change in fair value of investments $ (828) $ (49,960) $ - $ (50,788) 158 OIndian River County, Florida Combining Statement of Cash Flows Internal Service Funds For the Year Ended September 30, 2006 Geographic Fleet Self Management Insurance Information Systems Totals CASH FLOWS FROM: OPERATING ACTIVITIES Cash received from customers $ 3,365,144 $ 16,024,526 $ 66,363 $ 19,456,033 Cash paid to suppliers for goods and services (2,906,425) (13,781,173) (6,298) (16,693,896) Cash paid to employees for services (515,105) (1,351,203) (1,866,308) Net cash provided by (used in) operating activities (56,386) 892,150 60,065 895,829 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers Insurance recoveries Operating grants Net cash provided by noncapital financing activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchase of capital assets Proceeds from advances from other funds Net cash provided by (used in) capital and related financing activities CASH FLOWS FROM INVESTING ACTIVITIES Interest and dividends on investments Net cash provided by investing activities Net increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year Classified as: Current assets Totals IN 0 (4,771,075) - (4,771,075) - 1,104,116 - 1,104,116 40 354 -394 40 (3,666,605) - (3,666,565) (28,987) (15,590) (60,065) (104,642) 114,000 - 114,000 (28,987) 98,410 (60,065) 9,358 11,040 640,875 - 651,915 11,040 640,875 - 651,915 (74,293) (2,035,170) - (2,109,463) 400,919 15,050,738 - 15,451,657 $ 326,626 $ 13,015,568 $ - $ 13,342,194 $ 326,626 $ 13,015,568 $ - $ 13,342,194 $ 326,626 $ 13,015,568 $ - $ 13,342,194 157 Indian River County, Florida Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets Internal Service Funds For the Year Ended September 30, 2006 OPERATING REVENUES Charges for services Vehicle maintenance Self Insurance Geographic Information Systems Total revenues Geographic Fleet Self Information Management Insurance Systems Totals $ 3,438,261 $ - $ - $ 3,438,261 - 17,276,265 - 17,276,265 - - 66,363 66,363 3,438,261 17,276,265 66,363 20,780,889 OPERATING EXPENSES Personal services Material, supplies, services and other operating Depreciation Total operating expenses Operating income (loss) NONOPERATING REVENUES (EXPENSES; Interest income Operating grants Insurance recoveries Total nonoperating revenues (expenses) Income before transfers Transfers out Change in net assets Total net assets - beginning Total net assets - ending 510,286 1,351,833 - 1,862,119 2,919,125 13,659,322 53,241 16,631,688 6,371 1,813 3,036 11,220 3,435,782 15,012,968 56,277 18,505,027 - (4,771,075) - (4,771,075) 2,479 2,263,297 10,086 2,275,862 11,040 6405875 - 651,915 40 354 - 394 - 1,104,116 - 1,104,116 11,080 1,745,345 - 1,756,425 13,559 4,008,642 10,086 4,032,287 - (4,771,075) - (4,771,075) 13,559 (762,433) 10,086 (738,788) 536,860 9,768,865 - 10,305,725 $ 550,419 $ 9,006,432 $ 10,086 $ 9,566,937 156 0 in in Indian River County, Florida Combining Statement of Net Assets Internal Service Funds September 30, 2006 ASSETS Current assets: Cash and cash equivalents Accounts receivable - net Due from other governments Inventories Prepaid expenses Total current assets Non-current assets: Capital assets- non -depreciable Accumulated depreciation Total non-current assets Total assets LIABILITIES Current liabilities (payable from current assets): Accounts payable Claims payable Accrued compensated absences Total current liabilities (payable from current assets) Non-current liabilities: Accrued compensated absences Total non-current liabilities Total liabilities NET ASSETS Invested in capital assets, net of related debt Unrestricted Total net assets 108,356 225,853 Geographic 381,152 Fleet Self Information 5,866,000 Management Insurance Systems Totals 141,610 6,100,445 46,943 6,288,998 $ 326,626 $ 13,015,568 $ - $ 13,342,194 203,921 1,267,536 - 1,471,457 18,378 - - 18,378 111,560 - - 111,560 - 822,150 - 822,150 660,485 15,105,254 - 15,765,739 9,462,674 166,282 25,381 60,066 251,729 (132,825) (11,604) (3,037) (147,466) 33,457 13,777 57,029 104,263 693,942 15,119,031 57,029 15,870,002 108,356 225,853 46,943 381,152 - 5,866,000 - 5,866,000 33,254 8,592 - 41,846 141,610 6,100,445 46,943 6,288,998 1,913 12,154 - 14,067 1,913 12,154 - 14,067 143,523 6,112,599 46,943 6,303,065 33,457 13,777 57,029 104,263 516,962 8,992,655 (46,943) 9,462,674 $ 550,419 $ 9,006,432 $ 10,086 $ 9,566,937 155 INTERNAL SERVICE FUNDS Fleet Management- To account for the expenses incurred to repair and maintain the County's vehicles and equipment. Revenues are generated by charging user departments for maintenance of their vehicles and equipment. Self Insurance- To account for the expenses incurred for worker's compensation claims, general and auto liability and property damage, and employee health insurance claims. Revenues are generated by charges to the various departments and funds based on past experience and actuarial estimates. Geographic Information System- To account for the expenses incurred for maintaining the County's geographic information system. 154 Indian River County, Florida Statement of Cash Flows Nonmajor Enterprise Funds For the Year Ended September 30, 2006 Total adjustments Net cash provided by operating activities NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES Change in fair value of investments Contributed property, plant and equipment 153 38,246 (532,416) (494,170) $ (147,794) $ 197,704 $ 49,910 $ (1,147) $ (24,900) $ (26,047) 258,354 - 258,354 Shooting County Range Building Totals RECONCILIATION OF OPERATING INCOME(LOSS) TO NET CASH PROVIDED BY OPERATING ACTIVITIES Operating income (loss) $ (186,040) $ 730,120 $ 544,080 Adjustments to reconcile operating income to net cash provided by (used in) operating activities: Depreciation 35,100 110,259 145,359 (Increase) Decrease in assets: Accounts receivable - 335 335 Due from other governments - - - Inventories (1,217) - (1,217) Increase (Decrease) in liabilities: Accounts payable (667) (45,449) (46,116) Due to other governments 273 (12,442) (12,169) Other deposits held in escrow - (609,332) (609,332) Accrued compensated absences 4,757 24,213 28,970 Total adjustments Net cash provided by operating activities NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES Change in fair value of investments Contributed property, plant and equipment 153 38,246 (532,416) (494,170) $ (147,794) $ 197,704 $ 49,910 $ (1,147) $ (24,900) $ (26,047) 258,354 - 258,354 Indian River County, Florida Combining Statement of Cash Flows Nonmajor Enterprise Funds For the Year Ended September 30, 2006 CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers Cash paid to suppliers for goods and services Cash paid to employees for services Net cash provided by (used in) operating activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers Net cash provided by noncapital financing activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchase of capital assets Net cash provided by (used in) capital and related financing activities CASH FLOWS FROM INVESTING ACTIVITIES Interest and dividends on investments Net cash provided by investing activities Net increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year Classified as: Current assets Restricted assets Totals 152 Shooting County (133,104) Range Building Totals $ 226,719 $ 3,910,952 $ 4,137,671 (101,332) (1,084,909) (1,186,241) (273,181) (2,628,339) (2,901,520) (147,794) 197,704 49,910 415,629 (2,352,593) (1,936,964) 415,629 (2,352,593) (1,936,964) (11,553) (121,551) (133,104) (11,553) (121,551) (133,104) 8,657 245,420 254,077 8,657 245,420 254,077 264,939 (2,031,020) (1,766,081) 194,635 6,723,828 6,918,463 $ 459,574 $ 4,692,808 $ 5,152,382 $ 419,151 $ 4,620,238 $ 5,039,389 40,423 72,570 112,993 $ 459,574 $ 4,692,808 $ 5,152,382 Indian River County, Florida Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets Nonmajor Enterprise Funds For the Year Ended September 30, 2006 OPERATING REVENUES Charges for services Total revenues OPERATING EXPENSES Personal services Material, supplies, services and other operating Depreciation Total operating expenses Operating income (loss) NONOPERATING REVENUES (EXPENSES) Interest income Total nonoperating revenues (expenses) Income before transfers and capital contributions Capital contributions Transfers in Transfers out Change in net assets Total net assets - beginning Total net assets - ending Shooting County Range Building Totals 258,354 $ 226,719 $ 4,519,949 $ 4,746,668 226,719 4,519,949 4,746,668 (2,352,593) (2,352,593) 277,938 2,652,552 2,930,490 99,721 1,027,018 1,126,739 35,100 110,259 145,359 412,759 3,789,829 4,202,588 (186,040) 730,120 544,080 151 (177,383) 975,540 798,157 258,354 - 258,354 415,629 - 415,629 - (2,352,593) (2,352,593) 496,600 (1,377,053) (880,453) 1,479,201 6,110,793 7,589,994 $ 1,975,801 $ 4,733,740 $ 6,709,541 Indian River County, Florida Combining Statement of Net Assets Nonmajor Enterprise Funds September 30, 2006 ASSETS Current assets: Cash and cash equivalents Accounts receivable - net Inventories Current restricted assets: Cash and cash equivalents Total current assets Non-current assets: Capital assets- non -depreciable Accumulated depreciation Total non-current assets Total assets LIABILITIES Current liabilities (payable from current assets): Accounts payable Retainage payable Due to other governments Accrued compensated absences Current liabilities (payable from restricted assets): Customer deposits Total current liabilities Non-current liabilities: Accrued compensated absences Total non-current liabilities Total liabilities NET ASSETS Invested in capital assets, net of related debt Unrestricted Total net assets Shooting County 138,441 Range Building Totals 1,438 10,203 $ 419,151 $ 4,620,238 $ 5,039,389 - 77 77 35,955 - 35,955 40,423 72,570 112,993 495,529 4,692,885 5,188,414 17,259 1,682,282 793,008 2,475,290 (167,274) (396,480) (563,754) 1,515,008 396,528 1,911,536 2,010,537 5,089,413 7,099,950 12,837 125,604 138,441 - 758 758 1,438 10,203 11,641 3,202 91,661 94,863 - 72,571 72,571 17,477 300,797 318,274 17,259 54,876 72,135 17,259 54,876 72,135 34,736 355,673 390,409 1,515,008 396,528 1,911,536 460,793 4,337,212 4,798,005 $ 1,975,801 $ 4,733,740 $ 6,709,541 150 ®NNIAJ®R ENTERPRISE FUNDS Shooting Range - To account for the revenues, expenses, assets, and liabilities associated with the County Shooting Range. County Building - To account for the revenues, expenses, assets, and g liabilities associated with the building permit and ainspection program. D 0 a 0 a 0 0 0 0 a 0 0 O 149 Indian River County, Florida Budgetary Comparison Schedule Optional Sales Tax For the Year Ended September 30, 2006 REVENUES Taxes Intergovernmental Interest Miscellaneous Total revenues EXPENDITURES Capital projects Total expenditures Excess of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) Transfers in Total other financing sources (uses) Net change in fund balances Final Budget $ 14,202,500 $ 7,671,448 574,750 22,448,698 73,106,529 73,106,529 (50,657,831) 6,387,009 6,387,009 (44,270,822) 36,062,152 Variance Actual Positive Amounts (Negative) 15,736,078 $ 1,533,578 954,787 (6,716,661) 1,341,877 767,127 33,087 33,087 18,065,829 (4,382,869) 36,062,152 37,044,377 36,062,152 37,044,377 (17,996,323) 32,661,508 6,387,009 - 6,387,009 - (11,609,314) 32,661,508 Fund balances at beginning of year 44,270,822 41,207,052 (3,063,770) Fund balances at end of year $ - $ 29,597,738 $ 29,597,738 148 Indian River County, Florida Budgetary Comparison Schedule Fellsmere Old School For the Year Ended September 30, 2006 REVENUES Intergovernmental Interest Miscellaneous Total revenues EXPENDITURES Capital projects Total expenditures Net change in fund balances Fund balances at beginning of year Fund balances at end of year 147 Variance Final Actual Positive Budget Amounts (Negative) $ - $ 25,000 $ 25,000 - 49 49 20,000 2,765 (17,235) 20,000 27,814 7,814 129,375 129,375 - 129,375 129,375 - (109,375) (101,561) 7,814 109,375 101,561 (7,814) 147 Indian River County, Florida 0 n Budgetary Comparison Schedule 0 L Homeless Assistance Center a For the Year Ended September 30, 2006 �I 146 Variance Final Actual Positive Budget Amounts (Negative) REVENUES Intergovernmental $ 5,000 $ 6,952 $ 1,952 Interest - 959 959 Total revenues 5,000 7,911 2,911 EXPENDITURES a Capital projects 5,000 - 5,000 Total expenditures 5,000 - 5,000 Excess of revenues over (under) expenditures - 7,911 7,911 OTHER FINANCING SOURCES (USES) Transfers out (74,408) (74,408) - Total other financing sources (uses) (74,408) (74,408) - Net change in fund balances (74,408) (66,497) 7,911 Fund balances at beginning of year 74,408 66,497 (7,911) Fund balances at end of year $ _ $ _ $ _ 0 n 0 L �I �I 146 Indian River County, Florida Budgetary Comparison Schedule Dodgertown Facility For the Year Ended September 30, 2006 REVENUES Interest Total revenues EXPENDITURES Capital projects Total expenditures Net change in fund balances Fund balances at beginning of year Fund balances at end of year 145 Variance Final Actual Positive Budget Amounts (Negative) $ - $ 27,365 $ 27,365 - 27,365 27,365 648,004 485,417 162,587 648,004 485,417 162,587 (648,004) (458,052) (189,952) 648,004 717,153 (69,149) $ - $ 259,101 $ (259,101) 145 Indian River County, Florida Budgetary Comparison Schedule Shooting Range For the Year Ended September 30, 2006 REVENUES Intergovernmental Interest Total revenues EXPENDITURES Capital projects Total expenditures Excess of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year Variance Final Actual Positive Budget Amounts (Negative) $ 162,000 $ 153,468 $ (8,532) - 216 216 162,000 153,684 (8,316) 144 162,000 153,684 (8,316) (40,423) (40,423) - (40,423) (40,423) 121,577 113,261 (8,316) (121,577) (113,261) 8,316 Indian River County, Florida Budgetary Comparison Schedule Gifford Road Construction For the Year Ended September 30, 2006 REVENUES Interest Total revenues EXPENDITURES Capital projects Total expenditures Net change in fund balances Fund balances at beginning of year Fund balances at end of year 143 Variance Final Actual Positive Budget Amounts (Negative) $ - $ 127,244 $ 127,244 - 127,244 127,244 2,500,000 1,171,531 1,328,469 2,500,000 1,171,531 1,328,469 (2,500,000) (1,044,287) 1,455,713 2,500,000 3,503,943 1,003,943 $ - $ 2,459,656 $ 2,459,656 143 Indian River County, Florida O Budgetary Comparison Schedule Dodgertown Capital Reserve For the Year Ended September 30, 2006 Variance a Final Actual Positive Budget Amounts (Negative) REVENUES Interest $ - $ 97,482 $ 97,482 Total revenues - 97,482 97,482 EXPENDITURES Capital projects 2,000,000 - 2,000,000 Total expenditures 2,000,000 - 2,000,000 Net change in fund balances (2,000,000) 97,482 2,097,482 Fund balances at beginning of year 2,000,000 2,115,124 115,124 Fund balances at end of year $ - $ 2,212,606 $ 2,212,606 n �.l a a a a 0 0 142 Indian River County, Florida Budgetary Comparison Schedule Land Acquisition Bonds For the Year Ended September 30, 2006 REVENUES Taxes Interest Total revenues EXPENDITURES Debt service: Principal Interest Total expenditures Excess of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year Final Budget $ 2,426,423 $ 18,648 2,445,071 Actual Amounts 2,465,462 $ 74,545 2,540,007 Variance Positive (Negative) 39,039 55,897 94,936 1,730,000 1,730,000 - 498,081 478,555 19,526 2,228,081 2,208,555 19,526 216,990 331,452 114,462 (116,883) (61,968) 54,915 (116,883) (61,968) 54,915 100,107 269,484 169,377 (100,107) 1,106,353 1,206,460 $ - $ 1,3752837 $ 1,375,837 141 Indian River County, Florida Budgetary Comparison Schedule Spring Training Facility Bonds For the Year Ended September 30, 2006 EXPENDITURES Debt service: Principal Interest Total expenditures Net change in fund balances Fund balances at beginning of year Fund balances at end of year 505,000 505,000 - 741,233 717,841 23,392 1,246,233 1,222,841 23,392 - 109,962 109,962 739,550 739,550 $ - $ 849,512 $ 849,512 140 Variance Final Actual Positive Budget Amounts (Negative) REVENUES Taxes $ 357,834 $ 379,340 $ 21,506 Intergovernmental 874,149 920,161 46,012 Interest 14,250 33,302 19,052 Total revenues 1,246,233 1,332,803 86,570 EXPENDITURES Debt service: Principal Interest Total expenditures Net change in fund balances Fund balances at beginning of year Fund balances at end of year 505,000 505,000 - 741,233 717,841 23,392 1,246,233 1,222,841 23,392 - 109,962 109,962 739,550 739,550 $ - $ 849,512 $ 849,512 140 Indian River County, Florida Budgetary Comparison Schedule Street Lighting Districts For the Year Ended September 30, 2006 REVENUES Special assessments Interest Miscellaneous Total revenues EXPENDITURES Transportation Total expenditures Excess of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year 139 Variance Final Actual Positive Budget Amounts (Negative) $ 174,764 $ 173,296 $ (1,468) 8,681 18,559 9,878 - 2,256 2,256 183,445 194,111 10,666 189,907 185,252 4,655 189,907 185,252 4,655 (6,462) 8,859 15,321. 9,500 - (9,500) (7,435) (6,326) 1,109 2,065 (6,326) (8,391) (4,397) 2,533 6,930 4,397 456,108 451,711 $ - $ 458,641 $ 458,641 139 Indian River County, Florida Budgetary Comparison Schedule Supervisor of Elections Special Revenue For the Year Ended September 30, 2006 Variance Final Actual Positive Budget Amounts (Negative) REVENUES Intergovernmental $ - $ 43,389 $ 43,389 Total revenues - 43,389 43,389 EXPENDITURES General government - 50,521 (50,521) Total expenditures - 50,521 (50,521) Excess of revenues over (under) expenditures - (7,132) (7,132) OTHER FINANCING SOURCES (USES) Transfers in - 7,132 7,132 Total other financing sources (uses) - 7,132 7,132 Net change in fund balances _ _ Fund balances at beginning of year - Fund balances at end of year $ _ $ _ $ _ a 0 a a 138 Indian River County, Florida Budgetary Comparison Schedule Sheriff Special Revenue For the Year Ended September 30, 2006 REVENUES Intergovernmental Charges for services Fines and forfeitures Interest Total revenues EXPENDITURES Public safety Total expenditures Excess of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) Transfers in Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year 137 Variance Final Actual Positive Budget Amounts (Negative) $ 100,000 $ 130,449 $ 30,449 283,602 350,337 66,735 175,000 245,501 70,501 50,000 113,015 63,015 608,602 839,302 230,700 803,000 795,618 7,382 803,000 795,618 7,382 (194,398) 43,684 238,082 194,398 194,398 - 194,398 194,398 - - 238,082 238,082 - 1,945,166 1,945,166 $ - $ 2,183,248 $ 2,183,248 137 Indian River County, Florida Budgetary Comparison Schedule Clerk Special Revenue For the Year Ended September 30, 2006 REVENUES Charges for services Interest Total revenues EXPENDITURES General government Court related Total expenditures Net change in fund balances Fund balances at beginning of year Fund balances at end of year Final Budget $ 775,000 $ 136 775,000 225,000 550,000 775,000 1,573,710 1,573,710 $ 2,397,823 $ 2,397,823 Variance Actual Positive Amounts (Negative) 763,808 $ (11,192) 90,676 90,676 854,484 79,484 30,371 194,629 - 550,000 30,371 744,629 824,113 824,113 1,573,710 1,573,710 $ 2,397,823 $ 2,397,823 Indian River County, Florida Budgetary Comparison Schedule Traffic Education Program For the Year Ended September 30, 2006 REVENUES Fines and forfeitures Interest Total revenues EXPENDITURES Transportation Total expenditures Net change in fund balances Fund balances at beginning of year Fund balances at end of year Variance Final Actual Positive Budget Amounts (Negative) $ 29,349 $ 48,372 $ 19,023 - 5,797 5,797 29,349 54,169 24,820 135 29,349 (29,349) 25,189 (25,189) 25,189 (25,189) 28,980 (369) 129,621 158,970 158,601 $ 158,601 Indian River County, Florida Budgetary Comparison Schedule Community Development Block Grant For the Year Ended September 30, 2006 REVENUES Intergovernmental Total revenues EXPENDITURES Economic environment Total expenditures Net change in fund balances Fund balances at beginning of year Fund balances at end of year 134 Variance Final Actual Positive Budget Amounts (Negative) $ 500,968 $ 153,248 $ (347,720) 500,968 153,248 (347,720) 500,968 293,091 207,877 500,968 293,091 207,877 - (139,843) (139,843) - (45,641) (45,641) $ - $ (185,484) $ (185,484) 134 Indian River County, Florida Budgetary Comparison Schedule East Gifford Stormwater For the Year Ended September 30, 2006 Final Budget REVENUES Taxes $ - $ Intergovernmental - Special assessments 1,995 Interest - Total revenues 1,995 EXPENDITURES Transportation 1,925 Total expenditures 1,925 Excess of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year 70 Variance Actual Positive Amounts (Negative) 4 $ 4 16,747 16,747 1,439 (556) 545 545 18,735 16,740 18,735 1,925 1,925 18,665 (70) (67) 3 (70) (67) 3 - 18,668 18,668 - 6,164 6,164 $ - $ 24,832 $ 24,832 133 Indian River County, Florida Budgetary Comparison Schedule Disabled Access Program For the Year Ended September 30, 2006 REVENUES Fines and forfeitures Interest Total revenues EXPENDITURES Human services Total expenditures Net change in fund balances Fund balances at beginning of year Fund balances at end of year Final Budget 20,000 20,000 Variance Actual Positive Amounts (Negative) 2,299 $ 2,299 1,734 1,734 4,033 4,033 20,000 20,000 (20,000) 4,033 24,033 20,000 43,394 23,394 $ - $ 47,427 $ 47,427 132 Indian River County, Florida Budgetary Comparison Schedule Library Bequests For the Year Ended September 30, 2006 Variance Final Budget Actual Amounts Positive (Negative) REVENUES Interest $ $ 1,575 $ 1,575 Total revenues _ 1,575 1,575 EXPENDITURES Culture/recreation - - Total expenditures - - - Net change in fund balances - 1,575 1,575 Fund balances at beginning of year - 40,874 40,874 Fund balances at end of year $ - $ 42,449 $ 42,449 131 Indian River County, Florida Budgetary Comparison Schedule Florida Boating Improvement Program For the Year Ended September 30, 2006 REVENUES Intergovernmental Interest Total revenues EXPENDITURES Culture/recreation Total expenditures Excess of revenues over (under) expenditures Fund balances at beginning of year Fund balances at end of year 130 674,023 $ 674,023 Variance Final Actual Positive Budget Amounts (Negative) $ 35,000 $ 78,425 $ 43,425 - 23,768 23,768 35,000 102,193 67,193 65,000 1,270 63,730 65,000 1,270 63,730 (30,000) 100,923 130,923 30,000 573,100 543,100 130 674,023 $ 674,023 Indian River County, Florida Budgetary Comparison Schedule Vero Lake Estates For the Year Ended September 30, 2006 REVENUES Special assessments Interest Total revenues EXPENDITURES Physical environment Transportation Total expenditures Excess of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year Final Budget $ 73,661 $ 4,361 78,022 118,147 40,125 141,037 Variance Actual Positive Amounts (Negative) 94,976 $ 21,315 23,171 18,810 118,147 40,125 141,037 - 141,037 306,088 5,116 300,972 447,125 55116 442,009 (369,103) 113,031 482,134 (5,195) (3,634) 1,561 (5,195) (3,634) 1,561 (374,298) 109,397 483,695 374,298 529,071 154,773 $ - $ 638,468 $ 638,468 129 Indian River County, Florida Budgetary Comparison Schedule Beach Restoration For the Year Ended September 30, 2006 REVENUES Taxes Intergovernmental Interest Miscellaneous Total revenues EXPENDITURES Culture/recreation Total expenditures Excess of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) Transfers in Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year 19,044,690 19,044,690 5,714,273 5,714,273 (3,103,622) 1,288,794 13,330,417 13,330,417 4,392,416 153,622 153,622 - Variance Final Actual Positive Budget Amounts (Negative) $ 536,750 $ 569,010 $ 32,260 14,694,500 5,708,501 (8,985,999) 74,907 90,645 15,738 634,911 634,911 - 15,941,068 7,003,067 (8,938,001) 19,044,690 19,044,690 5,714,273 5,714,273 (3,103,622) 1,288,794 13,330,417 13,330,417 4,392,416 153,622 153,622 - 153,622 153,622 - (2,950,000) 1,442,416 4,392,416 2,950,000 1,273,825 (1,676,175) - $ 2,716,241 $ 2,716,241 128 Indian River County, Florida Budgetary Comparison Schedule Native Uplands Land Acquisition For the Year Ended September 30, 2006 REVENUES Charges for services Interest Total revenues EXPENDITURES Physical environment Total expenditures Net change in fund balances Fund balances at beginning of year Fund balances at end of year 127 Variance Final Actual Positive Budget Amounts (Negative) $ - $ 2,600 $ 2,600 - 29,500 29,500 - 32,100 32,100 55,000 16,057 38,943 55,000 16,057 38,943 (55,000) 16,043 71,043 55,000 768,299 713,299 $ - $ 784,342 $ 784,342 127 Indian River County, Florida a Budgetary Comparison Schedule Multi -Jurisdictional Law Enforcement a For the Year Ended September 30, 2006 Variance a Final Actual Positive Budget Amounts (Negative) REVENUES Fines and forfeitures $ 182,303 $ 21,240 $ (161,063) Interest - 1,829 1,829 a Total revenues 182,303 23,069 (159,234) EXPENDITURES Public safety 29,805 29,803 2 Total expenditures 29,805 29,803 2 Excess of revenues over (under) expenditures 152,498 (6,734) (159,232) OTHER FINANCING SOURCES (USES) Transfers out (152,498) (152,498) - Total other financing sources (uses) (152,498) (152,498) - Net change in fund balances - (159,232) (159,232) a Fund balances at beginning of year - 209,192 209,192 Fund balances at end of year $ - $ 49,960 $ 49,960 a a a O 126 Indian River County, Florida Budgetary Comparison Schedule Metropolitan Planning Organization For the Year Ended September 30, 2006 REVENUES Intergovernmental Charges for services Interest Total revenues EXPENDITURES General government Total expenditures Net change in fund balances Fund balances at beginning of year Fund balances at end of year Final Budget $ 780,340 $ 780,340 782,054 401,136 782,054 401,136 (1,714) 137,207 380,918 380,918 138,921 1,714 (119,514) (121,228) $ - $ 17,693 $ 17,693 125 Variance Actual Positive Amounts (Negative) 532,311 $ (248,029) 1,750 1,750 4,282 4,282 538,343 (241,997) 782,054 401,136 782,054 401,136 (1,714) 137,207 380,918 380,918 138,921 1,714 (119,514) (121,228) $ - $ 17,693 $ 17,693 125 Indian River County, Florida Budgetary Comparison Schedule SHIP -Low Income Housing a For the Year Ended September 30, 2006 REVENUES Intergovernmental Charges for services Interest Miscellaneous Total revenues EXPENDITURES Human services Total expenditures Net change in fund balances Fund balances at beginning of year Fund balances at end of year 124 Variance Final Actual Positive Budget Amounts (Negative) $ 1,200,769 $ 1,209,670 $ 8,901 500,000 631,404 131,404 - 61,368 61,368 18,644 11,003 (7,641) 1,719,413 1,913,445 194,032 2,877,465 2,579,237 298,228 2,877,465 2,579,237 298,228 (1,158,052) (665,792) 492,260 1,158,052 2,444,815 1,286,763 $ - $ 1,779,023 $ 1,779,023 124 0 0 �J 0 0 Indian River County, Florida Budgetary Comparison Schedule Drug Abuse For the Year Ended September 30, 2006 EXPENDITURES Public safety 104,991 Human services 69,123 Total expenditures 174,114 Excess of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) Transfers in Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year (33,433) 33,433 33,433 Actual Amounts 137,973 $ 15,426 1,493 154,892 104,991 69,123 174,114 (19,222) 28,500 28,500 9,278 Variance Positive (Negative) 13,917 5,926 1,493 (7,125) 14,211 14,211 (4,933) (4,933) 9,278 - 52,253 52,253 $ - $ 61,531 $ 61,531 123 Final Budget REVENUES Intergovernmental $ 124,056 $ Fines and forfeitures 9,500 Interest - Miscellaneous 7,125 Total revenues 140,681 EXPENDITURES Public safety 104,991 Human services 69,123 Total expenditures 174,114 Excess of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) Transfers in Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year (33,433) 33,433 33,433 Actual Amounts 137,973 $ 15,426 1,493 154,892 104,991 69,123 174,114 (19,222) 28,500 28,500 9,278 Variance Positive (Negative) 13,917 5,926 1,493 (7,125) 14,211 14,211 (4,933) (4,933) 9,278 - 52,253 52,253 $ - $ 61,531 $ 61,531 123 Indian River County, Florida Budgetary Comparison Schedule 911 Surcharge For the Year Ended September 30, 2006 REVENUES Taxes Intergovernmental Interest Total revenues EXPENDITURES Public safety Total expenditures Excess of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year 5 122 Variance Final Actual Positive Budget Amounts (Negative) $ 446,411 $ 488,064 $ 41,653 152,058 304,088 152,030 - 34,668 34,668 598,469 826,820 228,351 852,955 746,081 106,874 852,955 746,081 106,874 (254,486) 80,739 335,225 (110,961) (110,961) - (110,961) (110,961) - (365,447) (30,222) 335,225 365,447 980,882 615,435 $ - $ 950,660 $ 950,660 122 Indian River County, Florida Budgetary Comparison Schedule Tourist Development For the Year Ended September 30, 2006 REVENUES Taxes Interest Total revenues EXPENDITURES Culture/recreation Total expenditures Net change in fund balances Fund balances at beginning of year Fund balances at end of year 121 Variance Final Actual Positive Budget Amounts (Negative) $ 536,750 $ 569,010 $ 32,260 21,375 59,761 38,386 558,125 628,771 70,646 605,001 522,632 82,369 605,001 522,632 82,369 (46,876) 106,139 153,015 46,876 1,471,210 1,424,334 $ - $ 1,577,349 $ 1,577,349 121 Indian River County, Florida Budgetary Comparison Schedule Tree Ordinance Fines For the Year Ended September 30, 2006 REVENUES Fines and forfeitures Interest Total revenues EXPENDITURES Culture/recreation Total expenditures Net change in fund balances Fund balances at beginning of year Fund balances at end of year 120 Variance Final Actual Positive Budget Amounts (Negative) $ - $ 42,700 $ 42,700 - 7,761 7,761 - 50,461 50,461 25,000 6,897 18,103 25,000 6,897 18,103 (25,000) 43,564 68,564 25,000 174,287 149,287 $ - $ 217,851 $ 217,851 120 Indian River County, Florida Budgetary Comparison Schedule Parks Development For the Year Ended September 30, 2006 REVENUES Interest Miscellaneous Total revenues EXPENDITURES Culture/recreation Total expenditures Net change in fund balances Fund balances at beginning of year Fund balances at end of year Final Budget 25,000 - 25,000 25,000 - 25,000 (25,000) 22,764 47,764 25,000 60,799 35,799 $ - $ 83,563 $ 83,563 119 Variance Actual Positive Amounts (Negative) 2,764 $ 2,764 20,000 20,000 22,764 22,764 25,000 - 25,000 25,000 - 25,000 (25,000) 22,764 47,764 25,000 60,799 35,799 $ - $ 83,563 $ 83,563 119 Indian River County, Florida Budgetary Comparison Schedule Special Law Enforcement For the Year Ended September 30, 2006 REVENUES Fines and forfeitures Interest Total revenues EXPENDITURES Public safety Total expenditures Excess of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year 118 Variance Final Actual Positive Budget Amounts (Negative) $ 105,450 $ 73,104 $ (32,346) - 6,419 6,419 105,450 79,523 (25,927) 63,550 - 63,550 63,550 - 63,550 41,900 79,523 37,623 (41,900) (41,900) - (41,900) (41,900) - - 37,623 37,623 - 142,224 142,224 $ - $ 179,847 $ 179,847 118 Indian River County, Florida Budgetary Comparison Schedule DSection 8 Rental Assistance For the Year Ended September 30, 2006 a Variance Final Actual Positive Budget Amounts (Negative) REVENUES Intergovernmental $ 2,201,882 $ 1,578,041 $ (623,841) a Charges for services 3,550 3,550 Interest - 7,224 7,224 aTotal revenues 2,201,882 1,588,815 (613,067) EXPENDITURES a Human services 2,201,882 1,502,645 699,237 Total expenditures 2,201,882 1,502,645 699,237 Net change in fund balances - 86,170 86,170 Fund balances at beginning of year - 228,495 228,495 Fund balances at end of year $ - $ 314,665 $ 314,665 a 0 0 0 a a o 0 a 117 Indian River County, Florida Budgetary Comparison Schedule Court Facilities For the Year Ended September 30, 2006 Variance Final Actual Positive Budget Amounts (Negative) REVENUES Charges for services $ 733,412 $ 902,771 $ 169,359 Interest - 33,240 33,240 Total revenues 733,412 936,011 202,599 EXPENDITURES Court related 960,509 854,388 106,121 Total expenditures 960,509 854,388 106,121 Excess of revenues over (under) expenditures (227,097) 81,623 308,720 OTHER FINANCING SOURCES (USES) Transfers out (40,500) (40,500) - Total other financing sources (uses) (40,500) (40,500) - Net change in fund balances (267,597) 41,123 308,720 Fund balances at beginning of year 267,597 817,392 549,795 Fund balances at end of year $ - $ 858,515 $ 858,515 a a a 0 0 0 O 116 Capital Proiects 485,417 - 129,375 - 485,417 - 129,375 153,684 (458,052) 7,911 (101,561) (40,423) - (74,408) - (40,423) - (74,408) - 113,261 (458,052) (66,497) (101,561) (113,261) 717,153 66,497 101,561 $ - $ 259,101 $ - $ - 115 Total Nonmajor Governmental Funds $ 4,470,890 10,998,423 2,656,220 448,642 269,711 980,956 670,935 20,495,777 482,028 1,676,493 16,057 215,557 293,091 4,151,005 6,245,072 854,388 2,235,000 1,196,396 1,786,323 19,151,410 1,344,367 383,652 (532,685) (149,033) 1,195,334 21,992,646 $ 23,187,980 Homeless Shooting Dodgertown Assistance Fellsmere Range Facility Center Old School 153,468 - 6,952 25,000 216 27,365 959 49 - - - 21765 153,684 27,365 7,911 27,814 485,417 - 129,375 - 485,417 - 129,375 153,684 (458,052) 7,911 (101,561) (40,423) - (74,408) - (40,423) - (74,408) - 113,261 (458,052) (66,497) (101,561) (113,261) 717,153 66,497 101,561 $ - $ 259,101 $ - $ - 115 Total Nonmajor Governmental Funds $ 4,470,890 10,998,423 2,656,220 448,642 269,711 980,956 670,935 20,495,777 482,028 1,676,493 16,057 215,557 293,091 4,151,005 6,245,072 854,388 2,235,000 1,196,396 1,786,323 19,151,410 1,344,367 383,652 (532,685) (149,033) 1,195,334 21,992,646 $ 23,187,980 Indian River County, Florida Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended September 30, 2006 Debt Service Capital Projects REVENUES Taxes Intergovernmental Charges for services Fines and forfeitures Special assessments Interest Miscellaneous Total revenues EXPENDITURES Current: General government Public safety Physical environment Transportation Economic environment Human services Culture/Recreation Court related Debt service: Principal Interest and other fiscal charges Capital projects Total expenditures Excess of Revenues Over (Under) Expenditures OTHER FINANCING SOURCES (USES) Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year 505,000 Land Dodgertown - Spring Training Acquisition Capital Gifford Road Facility Bonds Bonds Reserve Construction $ 379,340 $ 2,465,462 $ - $ - 920,161 - 331,452 97,482 33,302 74,545 97,482 127,244 1,332,803 2,540,007 97,482 127,244 505,000 1,730,000 - - 717,841 478,555 - - - - - 1,171,531 1,222,841 2,208,555 - 1,171,531 109,962 331,452 97,482 (1,044,287) - (61,968) - - - (61,968) - - 109,962 269,484 97,482 (1,044,287) 739,550 1,106,353 2,115,124 3,503,943 $ 849,512 $ 1,375,837 $ 2,212,606 $ 2,459,656 114 Continued 113 Special Revenue Traffic Clerk Sheriff Supervisor of Street Education Special Special Elections Lighting Program Revenue Revenue Special Revenue Districts a$ _$ _$ -$ -$ - - - 130,449 43,389 - - 763,808 350,337 - = 48,372 - 245,501 - - - - 173,296 5,797 90,676 113,015= 18,559 _ _ 2,256 54,169 854,484 839,302 43,389 194,111 a - 30,371 - 50,521 - - - 795,618 25,189 - - = 185,252 25,189 185,252 50,521 795,618 30,371 28,980 824,113 43,684 (7,132) 8,859 a - - 194,398 7,132 - _ _ - - (6,326) - - 194,398 7,132 (6,326) 28,980 824,113 238,082 - 2,533 129,621 1,573,710 1,945,166 - 456,108 a$ 158,601 $ 2,397,823 $ 2,183,248 $ - $ 458,641 Continued 113 Indian River County, Florida Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended September 30, 2006 REVENUES Taxes Intergovernmental Charges for services Fines and forfeitures Special assessments Interest Miscellaneous Total revenues EXPENDITURES Current: General government Public safety Physical environment Transportation Economic environment Human services Culture/Recreation Court related Debt service: Principal Interest and other fiscal charges Capital projects Total expenditures Excess of Revenues Over (Under) Expenditures OTHER FINANCING SOURCES (USES) Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year 112 Special Revenue Disabled East Community Access Gifford Development Program Stormwater Block Grant $ - $ 4 $ - - 16,747 153,248 2,299 - - - 1,439 - 1,734 545 - 153,248 4,033 18,735 - - 293,091 293,091 - - 4,033 18,735 (139,843) - (67) - - (67) - 4,033 18,668 (139,843) 43,394 6,164 (45,641) $ 47,427 $ 24,832 $ (185,484) 112 Native Uplands Land Acquisition 2,600 29,500 32,100 16,057 Beach Restoration Revenue Florida Vero Lakes Boating Improv. Library Estates Program Bequests 569,010 $ - $ - $ - 5,708,501 - 78,425 - - 94,976 - - 90,645 23,171 23,768 1,575 634,911 - - - 7,003,067 118,147 102,193 1,575 5,714,273 16,057 5,714,273 16,043 1,288,794 5,116 1,270 = 5,116 1,270 - 113,031 100,923 1,575 153,622 - - - (3,634) - - - 153,622 (3,634) - - 16,043 1,442,416 109,397 100,923 1,575 768,299 1,273,825 529,071 573,100 40,874 $ 784,342 $ 2,716,241 $ 638,468 $ 674,023 $ 42,449 Continued 111 Indian River County, Florida Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended September 30, 2006 REVENUES Taxes Intergovernmental Charges for services Fines and forfeitures Special assessments Interest Miscellaneous Total revenues EXPENDITURES Current: General government Public safety Physical environment Transportation Economic environment Human services Culture/Recreation Court related Debt service: Principal Interest and other fiscal charges Capital projects Total expenditures Excess of Revenues Over (Under) Expenditures OTHER FINANCING SOURCES (USES) Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year Special Revenue SHIP Metropolitan Multi - Low Income Planning Jurisdictional Housing Organization Law Enforce 1,209,670 532,311 - 631,404 1,750 - - - 21,240 61,368 4,282 1,829 11,003 - - 1.913A45 538.343 23.069 - 401,136 - - - 29,803 2,579,237 - - 2,579,237 401,136 29,803 (665,792) 137,207 (6,734) - - (152,498) - - (152,498) (665,792) 137,207 (159,232) 2,444,815 (119,514) 209,192 $ 1,779,023 $ 172693 $ 49,960 110 a DSpecial Revenue a Tree Parks Ordinance Tourist 911 Drug Development Fines Development Surcharge Abuse $ - $ - $ 569,010 $ 488,064 $ - _ - - 304,088 137,973 - 42,700 - - 15,426 2,764 7,761 59,761 34,668 1,493 20,000 22,764 50,461 628,771 826,820 154,892 a _ - - 746,081 104,991 _ _ _ - 69,123 = 6,897 522,632 = _ a- 174,114 746,081 522,632 6,897 22,764 43,564 106,139 80,739 (19,222) _ _ - - 28,500 (110,961) - (110,961) 28,500 22,764 43,564 106,139 (30,222) 9,278 60,799 174,287 1,471,210 980,882 52,253 $ 83,563 $ 217,851 $ 1,577,349 $ 950,660 $ 61,531 Continued 109 REVENUES Taxes Intergovernmental Charges for services Fines and forfeitures Special assessments Interest Miscellaneous Total revenues Indian River County, Florida Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended September 30, 2006 Special Revenue Section 8 Court Rental Special Law Facilities Assistance Enforcement 902,771 33,240 936,011 EXPENDITURES Current: General government - Public safety - Physical environment - Transportation - Economic environment - Human services - Culture/Recreation - Court related 854,388 Debt service: Principal - Interest and other fiscal charges - Capital projects - Total expenditures 854,388 Excess of Revenues Over (Under) Expenditures 81,623 OTHER FINANCING SOURCES (USES) Transfers in - Transfers out (40,500) Total other financing sources (uses) (40,500) Net change in fund balances 41,123 Fund balances at beginning of year Fund balances at end of year 1,578,041 - 3,550 - - 73,104 7,224 6,419 1,588,815 79,523 1,502,645 1,502,645 86,170 86,170 79,523 (41,900) (41,900) 37,623 817,392 228,495 142,224 $ 858,515 $ 314,665 $ 179,847 108 $ - $ 358,869 $ 64,991 $ 1,591,364 117,025 - 207,789 29,734 - 137,750 _ 3,498 62,876 475,894 64,991 2,033,011 2,212,606 2,459,656 259,101 2,212,606 2,459,656 259,101 $ 2,212,606 $ 2,935,550 $ 324,092 107 16,031,268 2,225,349 4,931,363 23,187,980 $ 25,220,991 Capital Projects Dodgertown Gifford Total Nonmajor Capital Road Dodgertown Governmental Reserve Construction Facility Funds $ 2,203,428 $ 2,935,550 $ 324,092 $ 24,966,263 - _ _ 58,834 9,178 - - 9,178 _ - - 32,423 _ _ _ 153,793 _ _ _ 500 $ 2,212,606 $ 2,935,550 $ 324,092 $ 25,220,991 $ - $ 358,869 $ 64,991 $ 1,591,364 117,025 - 207,789 29,734 - 137,750 _ 3,498 62,876 475,894 64,991 2,033,011 2,212,606 2,459,656 259,101 2,212,606 2,459,656 259,101 $ 2,212,606 $ 2,935,550 $ 324,092 107 16,031,268 2,225,349 4,931,363 23,187,980 $ 25,220,991 ASSETS Cash and cash equivalents Accounts receivable Interest receivable Due from other funds Due from other governments Prepaid expenses Total Assets LIABILITIES AND FUND EQUITY Liabilities: Accounts payable Retainage payable Accrued interest payable Due to other funds Due to other governments Unearned revenues Total Liabilities Fund Equity: Fund balances: Unreserved (Deficit) Reserved for debt service Reserved for capital projects Total Fund Equity Total Liabilities and Fund Equity Indian River County, Florida Combining Balance Sheet Nonmajor Governmental Funds September 30, 2006 106 Debt Service Spring Land Training Acquisition Facility Bonds Bonds $ 814,499 $ 1,376,341 - 29,230 35,013 - 1,405,571 $ 849,512 $ 29,734 29,734 849,512 1,375,837 849,512 1,375,837 $ 849,512 $ 1,405,571 aSpecial Revenue Traffic Clerk Sheriff Supervisor Street Education Special Special of Elections Lighting Program Revenue Revenue Special Revenue District $ 166,967 $ 2,411,675 $ 2,182,994 $ 4,236 $ 464,320 - - 12,063 - - - _ - 2,053 - 325 - - a$ 166,967 $ 2,412,000 $ 2,195,057 $ 4,236 $ 466,373 8,366 $ 1,427 $ 7,822 $ - $ 7,732 - - 12,750 - - _ - 3,498 - - _ - 489 4,236 - 8,366 14,177 11,809 4,236 7,732 158,601 2,397,823 2,183,248 - 458,641 158,601 2,397,823 2,183,248 - 458,641 $ 166,967 $ 2,412,000 $ 2,195,057 $ 4,236 $ 466,373 O Continued 105 Indian River County, Florida Combining Balance Sheet Nonmajor Governmental Funds September 30, 2006 LIABILITIES AND FUND EQUITY Liabilities: Accounts payable $ - $ - $ 61,183 Retainage payable _ _ - Accrued interest payable _ _ - Due to other funds - - 125,000 Due to other governments _ _ - Unearned revenues Total Liabilities - - 186,183 Fund Equity: Fund balances: Unreserved (Deficit) 47,427 24,832 (185,484) Reserved for debt service _ _ Reserved for capital projects _ _ _ Total Fund Equity 47,427 24,832 (185,484) Total Liabilities and Fund Equity $ 47,427 $ 24,832 $ 699 104 Special Revenue Disabled East Community Access Gifford Development Program Stormwater Block Grant ASSETS Cash and cash equivalents $ 47,427 $ 20,065 $ 699 Accounts receivable _ Interest receivable _ Due from other funds _ 17 - Due from other governments - 4,750 - Prepaid expenses _ _ - Total Assets $ 47,427 $ 24,832 $ 699 LIABILITIES AND FUND EQUITY Liabilities: Accounts payable $ - $ - $ 61,183 Retainage payable _ _ - Accrued interest payable _ _ - Due to other funds - - 125,000 Due to other governments _ _ - Unearned revenues Total Liabilities - - 186,183 Fund Equity: Fund balances: Unreserved (Deficit) 47,427 24,832 (185,484) Reserved for debt service _ _ Reserved for capital projects _ _ _ Total Fund Equity 47,427 24,832 (185,484) Total Liabilities and Fund Equity $ 47,427 $ 24,832 $ 699 104 a 0 Special Revenue Native Uplands Florida a Land Beach Vero Lakes Boating Improv. Library Acquisition Restoration Estates Program Bequests 0 $ 786,342 $ 3,551,371 $ 637,395 $ 674,023 $ 42,449 _ - 1,123 - 58,151 - $ 786,342 $ 3,609,522 $ 638,518 $ 674,023 $ 42,449 $ 2,000 $ 744,366 $ 50 $ - $ - - 90,764 - - - _ 58,151 - 2,000 893,281 50 784,342 2,716,241 638,468 674,023 42,449 784,342 2,716,241 638,468 674,023 42,449 a$ 786,342 $ 3,609,522=$ 638,518 $ 674,023 $ 42,449 a 0 a Continued 103 Indian River County, Florida Combining Balance Sheet Nonmajor Governmental Funds September 30, 2006 LIABILITIES AND FUND EQUITY Liabilities: Accounts payable $ 25,529 $ 56,609 $ - Retainage payable - _ _ Accrued interest payable _ _ _ Due to other funds _ _ _ Due to other governments _ _ _ Unearned revenues - _ _ Total Liabilities 25,529 56,609 - Fund Equity: Fund balances: Unreserved (Deficit) Reserved for debt service Reserved for capital projects Total Fund Equity Total Liabilities and Fund Equity 1,779,023 17,693 49,960 1,779,023 17,693 49,960 $ 1,804,552 $ 74,302 $ 49,960 102 Special Revenue SHIP Metropolitan Multi - Low Income Planning Jurisdictional Housing Organization Law Force ASSETS Cash and cash equivalents $ 1,804,458 $ 66,898 $ 49,960 Accounts receivable 94 7,404 - Interest receivable _ Due from other funds _ Due from other governments _ Prepaid expenses _ - _ Total Assets $ 1,804,552 $ 74,302 $ 49,960 LIABILITIES AND FUND EQUITY Liabilities: Accounts payable $ 25,529 $ 56,609 $ - Retainage payable - _ _ Accrued interest payable _ _ _ Due to other funds _ _ _ Due to other governments _ _ _ Unearned revenues - _ _ Total Liabilities 25,529 56,609 - Fund Equity: Fund balances: Unreserved (Deficit) Reserved for debt service Reserved for capital projects Total Fund Equity Total Liabilities and Fund Equity 1,779,023 17,693 49,960 1,779,023 17,693 49,960 $ 1,804,552 $ 74,302 $ 49,960 102 Special Revenue Tree Parks Ordinance Tourist 911 Drug Development Fines Development Surcharge Abuse $ 83,563 $ 221,769 $ 1,663,343 $ 907,602 $ 64,974 _ _ - 39,273 - 51,023 4,531 _ 83,563 $ - 221,769 500 $ 1,663,843 $ - 997,898 $ - 69,505 $ $ - $ 3,918 $ 86,494 $ 47,238 $ 7,974 _ 3,918 86,494 47,238 7,974 83,563 217,851 1,577,349 950,660 61,531 83,563 217,851 1,577,349 950,660 61,531 a$ 83,563 $ 221,769 $ 1,663,843 $ 997,898 $ 69,505 a 0 n I�JI Continued 101 Indian River County, Florida Combining Balance Sheet Nonmajor Governmental Funds September 30, 2006 100 Special Revenue Section 8 Court Rental Special Law Facilities Assistance Enforcement ASSETS Cash and cash equivalents $ 959,097 $ 320,879 $ 179,847 Accounts receivable Interest receivable Due from other funds _ Due from other governments Prepaid expenses _ _ Total Assets $ 959,097 $ 320,879 $ 179,847 LIABILITIES AND FUND EQUITY Liabilities: Accounts payable $ 100,582 $ 6,214 $ _ Retainage payable _ _ Accrued interest payable Due to other funds _ Due to other governments Unearned revenues _ Total Liabilities 100,582 6,214 _ Fund Equity: Fund balances: Unreserved (Deficit) 858,515 314,665 179,847 Reserved for debt service _ Reserved for capital projects _ _ _ Total Fund Equity 858,515 314,665 179,847 Total Liabilities and Fund Equity $ 959,097 $ 320,879 $ 179,847 100 n Dodgertown Facility- To account for expenditures incurred to acquire and refurbish the Dodgertown Spring Training Facility. Financing is provided by proceeds from the Spring Training Facility Bond issue. Homeless Assistance Center- To account for expenditures incurred in the renovation and expansion of the Homeless Assistance Center. Financing is provided by the Department of Housing and Urban Development and transfers from other funds. Fellsmere Old School- To account for expenditures incurred by the restoration of the Fellsmere Old School. Financing is provided by the Department of Environmental Protection and the Department of State. MAJOR CAPITAL PROJECTS FUND Optional Sales Tax- To account for revenues generated by the local option 1 cent sales tax. Monies are used for various capital projects. u 0 0 u 99 Traffic Education Program- To account for the proceeds of an additional $3 add-on to traffic - fines authorized by County Ordinance. Proceeds must be used for traffic education programs. Clerk Special Revenue- To account for the proceeds from a special recording fee to be used O for modernizing the Clerk of the Circuit Courts' public records system. a Sheriff Special Revenue- To account for the expenditure of grants, fines and restricted revenues received by the Sheriff. Supervisor of Elections LJ Special Revenue- To account for revenues and expenditures from state grants for voter education and pollworker activities. Street Lighting Districts- To account for the costs of providing street lights. Financing is provided by the levying of special assessments. DEBT SERVICE FUNDS Spring Training Facility Bonds- To account for the accumulation of State assistance and tourist tax monies pledged to pay the principal, interest, and fiscal charges on the Spring Training Facility Bonds. Land Acquisition Bonds- To account for the accumulation of ad valorem taxes to pay the principal, interest and fiscal charges related to the Land Acquisition Bonds. CAPITAL PROJECTS FUNDS Dodgertown Capital Reserve- To provide additional improvements to the Dodgertown Spring Training Facility. The City of Vero Beach contributed $1,400,000 and the County contributed $600,000. (7 Gifford Road Construction- To account for expenditures incurred to improve the Gifford area. Financing is provided by a transfer from the Secondary Roads Construction Special Revenue Fund. Shooting Range- To account for expenditures incurred to construct a public shooting range. Financing is provided by the Florida Game and Freshwater Fish Commission and transfers from other funds. 98 a Metropolitan Planning Organization - Multi -Jurisdictional Task Force - nNative Uplands Land Acquisition - EBeach Restoration - DVero Lake Estates - Florida Boating Improvement Program - Library Bequest - Disabled Access Program - EEast Gifford Stormwater- a Community Development Block Grant - 11 To account for expenditures incurred for planning community transportation in the County. Financing is provided by grants. To account for expenditures incurred in connection with the cooperative drug enforcement task force established by the County, the City of Vero Beach and the City of Sebastian. Funds are provided by grants and program generated income. To account for expenditures related to the acquisition of native habitat preserve areas and for the management of such lands. Funding is provided by developers of property who pay to mitigate native uplands destruction where native upland plant communities will be destroyed. To account for the expenditure of funds to preserve and improve County beaches. Funds are provided by the levy of a local option tourist development tax. To account for the expenditure of funds to improve roads in the Vero Lake Estates subdivision. Funds are provided by the levying of special assessments. To account for boat registration fees which may be used for providing recreational channel marking, public launching facilities, and other boating -related activities. To account for bequests to the Indian River County Library to be used for improvements to the Main and North County Libraries. To account for fines assessed against individuals for illegal use of handicapped parking spaces. To account for expenditures of funds for stormwater improvements in the East Gifford Watershed. Funds are provided by non -ad valorem taxes. To account for the rehabilitation or replacement of housing units in the Gifford area. Funding is provided by a housing rehabilitation Community Development Block Grant. 97 NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS Court Facilities- To account for the court facility surcharge, additional court costs, the additional recording fee for court technology, and improvements made to court facilities. Section 8 Rental Assistance- To account for the provision of rental assistance for low income housing. Financing is provided by grants from the U.S. Department of Housing and Urban Development. Special Law Enforcement To account for the expenditures a p rtures of providing law enforcement equipment. Financing is provided by confiscation of monies and property in accordance with Section 932.704 of the Florida Statutes. Parks Development To account for expenditures for improvements 0 p provements made to County parks. Financing is provided by the sale of surplus County property. Tree Ordinance Fines- To account for fines assessed against individuals for illegal removal of protected trees. Funds are used for park improvements. Tourist Development- To account for the proceeds from the levy of a local option Tourist Development tax. Funds are used to attract tourism trade and for the benefit of County residents. 911 Surcharge- To account for the receipt of the 911 surcharge on all telephone bills of the County. Monies are used to pay the operating costs of the 911 Emergency Center. a Drug Abuse- To account for the collection of fines on criminal drug cases. Monies are used for drug prevention and education programs. I I State Housing Initiatives a Partnership- To account for State funds distributed under the State Housing Initiatives Partnership Act. The purpose of this program is to provide for the creation and preservation of affordable housing. Funds are provided by the documentary stamp taxes. 96 rJ N COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES a Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2006 NOTE 19 - COMMITMENTS AND CONTINGENCIES — Continued B. Contracts and Other Commitments — Continued In the Enterprise Funds, contracts are for the North County Reverse Osmosis Plant Expansion, Central Regional Wastewater Treatment Facility Capacity Enhancement, South County Reverse Osmosis Clearwell Addition, Utility Services Operations Center, Biosolids Collection and Dewatering Facility and various other water and sewer projects. A summary of these projects at September 30, 2006, is as follows: C. Grants Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies. If any expenditures are disallowed as a result of these audits, the claims for reimbursement to the grantor agency would become a liability of the County. In the opinion of management, any such adjustments would not be significant. NOTE 20 - SUBSEQUENT EVENTS In December 2006 and February 2007 the County received their final settlements of insurance recoveries from Hurricanes Frances and Jeanne totaling $1.1 million. Plans for moving into the new administration complex are scheduled for June 2007. Both buildings encompass 170,000 square feet and will house the Property Appraiser and Tax Collector, as well as the Board of County Commissioners departments. The Supervisor of Elections, Animal Control, Facilities Management and Coastal Engineering departments moved into their new 30,000 square foot complex on 43`d Avenue in November 2006. Both complexes were funded by the one -cent local option sales tax. In January 2007, a major developer filed a lawsuit against the County. The developer is requesting a reservation of road capacity for their development and not a monetary award. At this time, the outcome is undeterminable. t 94 D Special Capital General Revenue Projects Enterprise Total Total contact price $ 1,053,907 $ 62,589,652 $ 74,227,529 $ 32,916,619 $ 170,787,707 Total paid as of September 30, 2006 (867,197) (28,856,945) (33,334,116) (25,677,438) (88,735,696) Remaining Balance at September 30, 2006 186 710 33,732,707 40,893,413 $IaL9,181 $ 82,052,011 C. Grants Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies. If any expenditures are disallowed as a result of these audits, the claims for reimbursement to the grantor agency would become a liability of the County. In the opinion of management, any such adjustments would not be significant. NOTE 20 - SUBSEQUENT EVENTS In December 2006 and February 2007 the County received their final settlements of insurance recoveries from Hurricanes Frances and Jeanne totaling $1.1 million. Plans for moving into the new administration complex are scheduled for June 2007. Both buildings encompass 170,000 square feet and will house the Property Appraiser and Tax Collector, as well as the Board of County Commissioners departments. The Supervisor of Elections, Animal Control, Facilities Management and Coastal Engineering departments moved into their new 30,000 square foot complex on 43`d Avenue in November 2006. Both complexes were funded by the one -cent local option sales tax. In January 2007, a major developer filed a lawsuit against the County. The developer is requesting a reservation of road capacity for their development and not a monetary award. At this time, the outcome is undeterminable. t 94 D Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2006 NOTE 18 - RISK MANAGEMENT —Continued General Liability, Property, Worker's Compensation and Medical — Continued aChanges in the fund's claim liability amount during the current and prior three fiscal years are as follows: Balance at Claims Balance Fiscal Year and Changes Claim at Fiscal Beginning in Estimates Payments Year End 2002-2003 $ 4,261,000 $ 9,440,074 $ (9,120,074) $ 4,581,000 2003-2004 4,581,000 11,597,947 (10,847,947) 5,331,000 2004-2005 5,331,000 10,657,797 (10,658,797) 5,330,000 2005-2006 5,330,000 13,026,906 (12,490,906) 5,866,000 r Included in the charges to other funds is an amount to fund future catastrophic losses not actuarially LJ determined and at September 30, 2006, unreserved net assets of $8,992,655 has been designated for this purpose. The County has elected to accrue the larger of the discounted liability or undiscounted liability. At September 30, 2006, the undiscounted liability was the greater of the two amounts. The discount rate used in the calculation was 2.5 percent. NOTE 19 - COMMITMENTS AND CONTINGENCIES A. Litigation J Various suits and claims are currently pending against the County. It is impossible for the County to naccurately quantify the exposure involved given the jury's latitude in assessing compensatory and LJ punitive damages, and the court's latitude in awarding attorney's fees. The County intends to vigorously defend against these lawsuits and believes it has a good chance of prevailing on their merits. The County is contingently liable with respect to lawsuits and other claims incidental to the ordinary course of its operations. In the opinion of management and based on the advice of legal counsel, the ultimate disposition of lawsuits will not have a material adverse effect on the financial position of the County. B. Contracts and Other Commitments The County has various contracts and commitments outstanding at September 30, 2006. In the General Fund, contracts are for custodial services, maintenance of the 800 Mhz radio system, Indian River County Code Review and various other general services. In the Special Revenue Funds, contracts are for the Beach Preservation Plan, Dune Restoration Project, Pelican Island Upland Restoration Project, Jungle Trail Shoreline Stabilization, renovation of several Fire/EMS stations, numerous environmental protection services and a variety of road paving and drainage projects. In the Capital Projects Funds, contracts are for the North County Regional Park, New County Administration Building, 43rd Avenue OSub -Complex, Indian River County Jail Expansion and several stormwater projects throughout the County. 93 Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2006 NOTE 18 - RISK MANAGEMENT General Liability, Property, Worker's Compensation and Medical The County is exposed to various risks of loss related to torts, theft of, damage to and destruction of assets, errors or omissions, injuries to employees, and natural disasters. The County established a Self Insurance Fund (an internal service fund) to account for and finance its uninsured risk of loss. Under this program, the Self Insurance Fund provides coverage as follows: The County purchases excess insurance to cover claims in excess of the amounts listed above. The County has not incurred any settlements in excess of the insurance coverage listed above in the past three fiscal years. All departments of the County participate in the program. Payments are made by various funds to the Self Insurance Fund based on past experience and actual estimates of the amounts needed to pay current year claims. The County is also self insured for medical claims covering employees and their eligible dependents. As required by Section 112.081, Florida Statutes, retirees and their eligible dependents are provided the same health care coverage as is offered to active employees, however, the retirees are responsible for payment of the premiums. Medical claims are paid from premiums contributed by employees, retirees and by the County. Premiums and contributions are determined by projected claims based on historical and actuarial experience. The self insurance plan assumes all risk for claims up to $100,000 per individual/$200,000 per occurrence, and has purchased a reinsurance policy to cover claims in excess of this amount. There were no claims in excess of this limit for the 2004, 2005, and 2006 fiscal years. The claims liability of $5,866,000 reported at September 30, 2006, is based on the requirements of generally accepted governmental accounting standards, which require that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements, and the amount of the loss can be reasonably estimated. Estimates for claims incurred but not reported are actuarially determined and recorded. Based on the actuary's report, $3,518,628 will be liquidated over the next twelve months. A 92 D Prior to 10/1/03 to 10/1/04 to 10/1/03 10/1/04 Present Worker's Compensation $ 350,000 $ 500,000 $ 600,000 General Liability 200,000 200,000 200,000 Auto Liability 200,000 200,000 200,000 Property Damage 500-25,000 500-25,000 500-25,000 Error or Omissions 200,000 200,000 200,000 O Annual Aggregate 1,000,000 1,000,000 1,000,000 Annual Aggregate 1,000,000 1,000,000 1,000,000 n The County purchases excess insurance to cover claims in excess of the amounts listed above. The County has not incurred any settlements in excess of the insurance coverage listed above in the past three fiscal years. All departments of the County participate in the program. Payments are made by various funds to the Self Insurance Fund based on past experience and actual estimates of the amounts needed to pay current year claims. The County is also self insured for medical claims covering employees and their eligible dependents. As required by Section 112.081, Florida Statutes, retirees and their eligible dependents are provided the same health care coverage as is offered to active employees, however, the retirees are responsible for payment of the premiums. Medical claims are paid from premiums contributed by employees, retirees and by the County. Premiums and contributions are determined by projected claims based on historical and actuarial experience. The self insurance plan assumes all risk for claims up to $100,000 per individual/$200,000 per occurrence, and has purchased a reinsurance policy to cover claims in excess of this amount. There were no claims in excess of this limit for the 2004, 2005, and 2006 fiscal years. The claims liability of $5,866,000 reported at September 30, 2006, is based on the requirements of generally accepted governmental accounting standards, which require that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements, and the amount of the loss can be reasonably estimated. Estimates for claims incurred but not reported are actuarially determined and recorded. Based on the actuary's report, $3,518,628 will be liquidated over the next twelve months. A 92 D Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2006 NOTE 16 - FUND EQUITY B. Net Assets Restricted by Enabling Legislation The government -wide statement of net assets for the primary government and component unit report $247,886,506 of restricted net assets, of which $60,788,391 is restricted by enabling legislation. C. Reserved Fund Balances The County has established certain reserves within the fund equity section of the governmental funds. Reserved fund balances at September 30, 2006, consist of the following: Special Revenue Funds: Reserved for Advances to Other Funds: Secondary Roads Construction $ 654,000 Reserved for Capital Projects: Secondary Roads Construction 666,667 Total 1,320.667 Debt Service Funds: Reserved for Debt Service: Land Acquisition Bonds $ 1,375,837 Spring Training Facility Revenue Bonds 849,512 Total 2 225 349 Capital Projects Funds: Reserved for Capital Projects: Optional Sales Tax $ 28,610,633 Dodgertown Capital Reserve 2,212,606 Gifford Road Construction 2,459,656 Dodgertown Facility 259,101 Subtotal 33,541,996 Reserved for Advances to Other Funds: Optional Sales Tax 987,105 Total 34,529,101 NOTE 17 - FUND EQUITY DEFICIT The following funds had a deficit in fund balance at September 30, 2006: Fund Deficit Major governmental fund: Federal/State Grants $ 455,991 Nonmajor governmental fund: Community Development Block Grant 185,484 Total Deficit 641 475 The deficits for these two funds will be eliminated by grant proceeds in the fiscal year 2007. 91 Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2006 NOTE 15 - OPERATING LEASES — Continued B. Future Minimum Lease Payments The following is a schedule of minimum future rentals to be paid by the County for various noncancelable operating leases of office space, park land, and office equipment as of September 30, 2006: Year Amount 2007 $ 377,033 2008 303,167 2009 166,713 2010 135,292 2011 21,333 2012-2016 106,665 2017-2021 106,665 2022-2026 106,665 2027-2031 12,017 2032-2036 1,500 2037-2041 1,500 2042-2046 1,500 2047-2051 1,200 Total future minimum lease payments: 1 341 250 NOTE 16 - FUND EQUITY A. Restricted Net Assets The County has established certain restrictions within the net assets section of the proprietary funds. Restricted net assets at September 30, 2006, consist of the following: Component 0t, Primary Government Unit Total Primary Housing Golf Course County Utilities Government Authori Restricted for debt service $ 39,583 $ 208,750 $ 248,333 $ 238,002 Restricted for renewal and replacement 468,664 Restricted for capital projects - 88,823,634 88,823,634 - Restricted for insurance and property tax - - - 60,907 Total 39 583 89.032,384 89,071.967 767 573 0t, Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2006 NOTE 14 - PENSION PLANS - Continued A. Florida Retirement System - Continued Contributions to the FRS for the fiscal year ended September 30, 2006, were equal to 12.68% of the annual covered payroll. Contributions to the FRS for the fiscal years ended September 30, 2004, 2005, and 2006 were $7,365,648, $7,723,502, and $ 8,783,863 respectively, which are equal to 100% of the required contribution for each year. NOTE 15 - OPERATING LEASES The County has entered into noncancelable operating leases, both as lessor and lessee. Lease terms vary from 2 to 49 years. Lease revenues totaled $348,800 and lease expenditures totaled $293,198 for the year ended September 30, 2006. The County also leases other equipment and office facilities as both lessor and lessee on a month-to-month basis. A. Future Minimum Lease Receipts Year Amount 2007 $ 366,818 2008 381,206 2009 391,569 2010 400,328 2011 412,669 2012-2016 1,651,153 2017-2021 1,650,529 2022-2026 924,279 2027-2031 193,905 2032-2036 800 Total future minimum lease receipts: $6,373,256 The property being leased is included in the statement of net assets governmental activities and business -type activities columns and has a cost of $7,670,895 and a carrying value of $2,805,419. All depreciable property being leased has been fully depreciated. J Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2006 NOTE 14 - PENSION PLANS - Continued A. Florida Retirement System - Continued L In addition to the above benefits, the FRS administers a Deferred Retirement Option Program (DROP). This program allows eligible employees to defer receipt of monthly retirement benefit payments while continuing employment with a FRS employer for a period not to exceed five years after electing to participate. Deferred monthly benefits are held in the FRS Trust Fund and accrue interest. F Florida Statutes Chapter 121, as may be amended from time to time by the state legislature, determines contribution rates for the various membership classes of the FRS. The FRS issues a publicly available financial report that includes financial statements, ten-year historical trend information and other required supplementary information. That report may be obtained by writing to the Department of Administration, Division of Retirement, Cedars Executive Center, Building C, 2639 North Monroe Street, Tallahassee, Florida 32399-1560. Funding Policy: The FRS has six classes of membership with descriptions and contribution rates in effect during the period ended September 30, 2006, as follows (contribution rates are in agreement with the actuarially determined rates): 10/1/05 7/1/06 to 6/30/06 to 9/30/06 Regular Class - Members not qualifying for other classes. 7.83% 9.85% Senior Management Service Class - Members of senior management who do not elect the optional annuity management program. 10.45% 13.12% Special Risk Class - Members employed as law enforcement officers, firefighters, or correctional officers and meet the criteria set to qualify for this class. 18.53% 20.92% Special Risk Administrative Support Class - Special risk members who are transferred or reassigned to non -special risk and meet the criteria. 9.92% 12.55% n Elected County Officer's Class - Certain elected county officials. 15.23% 16.53% Deferred Retirement Option Program - - Members who are eligible for normal retirement that have elected to participate in the deferred retirement option program. 9.33% 10.91% n !�1 88 H Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2006 NOTE 13 — PROVISION FOR CLOSURE COSTS - Continued Required closure and post -closure obligations per segment: All amounts recognized are based on what it would cost to perform all closure and post -closure functions in current dollars. Actual costs may be different due to inflation, changes in technology, or changes in laws and regulations. The SWDD is required by FDEP to annually show proof of ability to finance closure and post -closure costs, and has done so by fulfilling the requirements of the financial test provision of the regulation. At the same time, the SWDD is making annual deposits to a closure and post -closure cost account to provide for the financing of future closure -related expenditures. All funds are on deposit at the Florida Local Government Investment Trust. NOTE 14 - PENSION PLANS A. Florida Retirement System Plan Description: The County's employees participate in the Florida Retirement System (FRS), a cost- sharing multiple -employer public employee retirement system, administered by the Florida Department of Administration. The FRS is noncontributory for all members; all contributions are made by the employer. Employees elect participation in either the defined benefit plan (Pension Plan) or the defined contribution plan (Investment Plan). The Pension Plan provides for vesting of benefits after six years of credible service. Normal retirement benefits are available to employees who retire at or after age 62 with six or more years of service. Early retirement is available after six years of service with a five percent reduction in benefits for each year prior to the normal retirement age. Retirement benefits are based on age, average compensation, and years -of -service credit where average compensation is computed as the average of an individual's five highest years of earnings. For those employees who elect participation in the Investment Plan rather than the Pension Plan, vesting occurs after one year of service and there is no "normal retirement age". These participants receive a defined contribution for self-direction in an investment product with a third party administrator selected by the State Board of Administration. H87 Closure and LJ Capacity Estimated Post -Closure Date Used Closing Obligation Closed Active Segment I addition - C & D 59% 2007 $ 480,000 N/A Segment II -B addition - household waste 75% 2007 2,110,328 N/A Segment II -C addition - household waste 75% 2011 2,864,016 N/A Construction & Demolition 76% 2010 1,005,854 Inactive Segment I - household waste N/A N/A 478,000 1993 aSegment II -A class 1 - household waste N/A N/A 2,806,400 1998 Total account balance at 9/30/06: $9,744,598 All amounts recognized are based on what it would cost to perform all closure and post -closure functions in current dollars. Actual costs may be different due to inflation, changes in technology, or changes in laws and regulations. The SWDD is required by FDEP to annually show proof of ability to finance closure and post -closure costs, and has done so by fulfilling the requirements of the financial test provision of the regulation. At the same time, the SWDD is making annual deposits to a closure and post -closure cost account to provide for the financing of future closure -related expenditures. All funds are on deposit at the Florida Local Government Investment Trust. NOTE 14 - PENSION PLANS A. Florida Retirement System Plan Description: The County's employees participate in the Florida Retirement System (FRS), a cost- sharing multiple -employer public employee retirement system, administered by the Florida Department of Administration. The FRS is noncontributory for all members; all contributions are made by the employer. Employees elect participation in either the defined benefit plan (Pension Plan) or the defined contribution plan (Investment Plan). The Pension Plan provides for vesting of benefits after six years of credible service. Normal retirement benefits are available to employees who retire at or after age 62 with six or more years of service. Early retirement is available after six years of service with a five percent reduction in benefits for each year prior to the normal retirement age. Retirement benefits are based on age, average compensation, and years -of -service credit where average compensation is computed as the average of an individual's five highest years of earnings. For those employees who elect participation in the Investment Plan rather than the Pension Plan, vesting occurs after one year of service and there is no "normal retirement age". These participants receive a defined contribution for self-direction in an investment product with a third party administrator selected by the State Board of Administration. H87 Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2006 NOTE 12 - LONG-TERM LIABILITIES - Continued G. Conduit Debt Obligations From 1986 until 1999, Indian River County issued Industrial Revenue Bonds to provide financial assistance to private -sector entities for the acquisition, construction and equipping of industrial and commercial facilities deemed to be in the public interest. These facilities included an expanded processing facility and an educational facility, for a total of two series of Industrial Revenue Bonds. The bonds are secured by the property financed and are payable solely from payments received on the underlying mortgage loans. Upon repayment of the bonds, ownership of the acquired facilities transfers to the private -sector entity served by the bond issuance. Neither the County, the State, nor any political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. Original Principal Bond Issue Outstanding Year Bonds and Project Description $ 18,000,000 $ 16,300,000 1999 St. Edward's School, Inc. — Upper School educational facilities 4,080,000 2,400,000 1997 Ocean Spray Cranberries, Inc. — expansion of 23,000 sq. ft. processing facility Total 18.700.000 NOTE 13 - PROVISION FOR CLOSURE COSTS Current regulations of the U.S. Environmental Protection Agency (EPA) and the Florida Department of Environmental Protection (FDEP) require the Solid Waste Disposal District (SWDD) to place a final cover on closed landfill areas, and to maintain those areas for up to thirty years after closure. The SWDD recognized the expenses associated with the final closure and post -closure maintenance of the landfill areas over the active life of those areas. These costs are recognized in each operating period based on the amount of capacity used during that period, regardless of when cash disbursements are made for these costs. The SWDD annually obtains updated and revised estimates of total future closure and post -closure costs from its consulting engineers. The provision for closure costs reported in the financial statements as operating expense represents the portion of these estimated future outlays which are allocable to the current year based on the amount of capacity used. The total unrecognized closure and post -closure costs attributable to the currently active landfill areas Segment I, Segment II, and Construction and Demolition are approximately $1.64 million. These costs will be recognized in future periods as the remaining capacity is filled. The County's policy is to fund 100% of the current year's allocation (based upon the consulting engineer's report) of both closure and post -closure care. :. Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2006 NOTE 12 - LONG-TERM LIABILITIES - Continued F. Changes in Long-term Liabilities Long-term liability activity for the year ended September 30, 2006, was as follows: Governmental Activities: Bonds payable: Limited General Obligation Bonds - 2006 Series General Obligation Bonds - 2001 Series Spring Training Facility Revenue Bonds - Series 2001 General Obligation Refunding Bonds - Series 2003 Total bonds payable Other liabilities: Compensated absences Capital leases Total other liabilities Governmental activities long-term liabilities Business -type Activities: Bonds payable: Recreational Refunding Revenue Bonds - Series 2003 Water & Sewer Refunding Revenue Bonds - Series 1993A - Series 2005 Water & Sewer Revenue Bonds - Series 1996 Add: Unamortized bonds premium Less: Unamortized bonds discount Total bonds payable Other liabilities: Compensated absences Capital leases Total other liabilities Business -type activities long-term liabilities Beginning - $ 460,000 $ 5,135,000 $ Ending Due Within Balance 'Additions Retirements Balance One Year 27,255,000 1,275,000 875,000 $ - $ 48,600,000 $ - $ 48,600,000 $ 2,320,000 8,685,000 - 650,000 8,035,000 670,000 15,025,000 - 505,000 14,520,000 520,000 5,700,000 - 1,080,000 4,620,000 1,105,000 29,410,000 48,600,000 2,235,000 75,775,000 4,615,000 193,786 80,338 1,148,092 441,157 446,408 5,007,775 5,103,273 4,693,465 5,417,583 3,107,456 380,275 - 380,275 - - 5,388,050 5,103,273 5,073,740 5,417,583 3,107,456 $ 34,798,050 $ 53,703,273 $ 7,308,740 $ 81,192,583 $ 7,722,456 $ 5,595,000 $ - $ 460,000 $ 5,135,000 $ 475,000 36,405,000 - 1,170,000 35,235,000 1,230,000 27,600,000 - 345,000 27,255,000 1,275,000 875,000 - 875,000 - - 70,475,000 - 2,850,000 67,625,000 2,980,000 1,041,293 - 61,554 979,739 - 1,162,690 - 63,165 1,099,525 - 70,353,603 - 2,848,389 67,505,214 2,980,000 884,855 434,892 370,692 949,055 606,654 263,237 6,265 75,716 193,786 80,338 1,148,092 441,157 446,408 1,142,841 686,992 $ 71,501,695 $ 441,157 $ 3,294,797 $ 68,648,055 $ 3,666,992 M Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2006 a NOTE 12 - LONG-TERM LIABILITIES - Continued D. Capital Leases and Notes Payable Business -Type Activities The County has entered into lease -purchase agreements to purchase golf carts and an ice machine for Sandridge Golf Course with lease terms of 36-48 months. Monthly payments for the leases are made by the Golf Course Fund. The value of the golf carts at the time of the lease was $311,302. The value of the ice machine at the time of the lease was $6,265. The following is a schedule of future minimum lease payments under the capital leases, together with the present value of the net minimum lease payments, as of September 30, 2006: Fiscal Year Ending September 30, 2007 $ 87,421 2008 87,421 2009 29,704 Total Minimum Lease Payment 204,546 Less Amount Representing Interest 10,760 Present Value of Net Minimum Lease Payment 193 786 E. Compensated Absences Governmental activities compensated absences are paid by the fund which normally pays the personnel services costs of the employee. I R 84 E Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2006 NOTE 12 - LONG-TERM LIABILITIES - Continued B. Discretely Presented Component Unit - Continued Annual Debt Service Payments - Housing Authority The annual debt service payments for bonds outstanding at September 30, 2006, are as follows: Fiscal Year Ending_ September 30 Payment Amount 2007 $ 439,488 2008 219,084 2009 218,994 2010 219,064 2011 219,114 2012-2016 1,096,220 2017-2021 880,5404 2022-2023 150,628 3,443,132 Less: Amount representing interest (274,732) Total principal 3,168,400 Less: Current principal (378,000) a Total 400 &Z-790,400 C. Summary of Defeased Debt Outstanding The following outstanding revenue bonds are legally defeased. Since governmental obligations are held in escrow for the payment of principal and interest, the bonds are not liabilities of the County. Outstanding Retired Outstanding at During at September 30, Fiscal Year September 30, 2005 2006 2006 Capital Improvement Revenue Bonds: Series 1980 $ 1,890,00.0 $250,000 1,640,000 Water and Sewer Revenue Bonds: Series 1996 $ 31,680,000 31,680,000 $ - a83 Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2006 NOTE 12 - LONG-TERM LIABILITIES - Continued B. Discretely Presented Component Unit Housing Authority Revenue Bonds On April 1, 1986, August 23, 1988, and July 16, 1991, the Housing Authority adopted resolutions authorizing the issuance of revenue bonds payable to the U.S. Department of Agriculture, Farmers Home Administration, for the purpose of financing a part of the cost of acquiring, erecting and constructing low -rent, multi -family housing facilities (Victory Park Apartments - Phase I and Phase II and Orangewood Park Apartments), including the repayment of certain notes payable to the State of Florida for the acquisition of land. The bond and interest thereon are payable solely from and collateralized by a prior lien upon and a pledge of the gross revenues to be derived from the projects. The revenue bond resolution provides for the following: Bonds Issued - The revenue bond obligation consists of- Description £ Description Indian River County Housing Authority Revenue Bonds: Original Revenue Interest Bond Rates and Date Commitment 1 % per annum on the unpaid balance payable September 1 each year Victory Park, Phase I Victory Park, Phase II Orangewood Park Apartments Less: Current Portion of Bonds Long-term Portion of Bonds $ 1,908,000 1,908,000 2,006,400 5 822 400 Outstanding at September 30, 2006 $ 934,000 996,000 1,238,400 3,168,400 378,000 2,790,400 Optional Redemption - Each revenue bond is redeemable at the option of the Housing Authority at par plus accrued interest and plus a premium ranging between 0% and 5% depending on the year of redemption and the holder of the bond at the time of redemption. The Housing Authority may redeem, in whole or in part, at any time, the principal portion of each revenue bond on any interest payment date, at the price of par plus accrued interest, without premium if the bond is held by the U.S. Department of Agriculture, Farmers Home Administration. 82 D aIndian River County, Florida Notes To Financial Statements Year Ended September 30, 2006 n NOTE 12 - LONG-TERM LIABILITIES - Continued A. Primary Government - Continued Term Bonds due April 1, 2027 Date Principal Amount April 1, 2022 $ 305,000 April 1, 2023 320,000 April 1, 2024 340,000 April 1, 2025 355,000 April 1, 2026 375,000 April 1, 2027 390,000 Term Bonds due April 1, 2031 Date Principal Amount April 1, 2028 $ 410,000 April 1, 2029 430,000 April 1, 2030 455,000 April 1, 2031 435,000 Annual Debt Service Payments - Governmental Activities The annual debt service payments for bonds outstanding at September 30, 2006, are as follows: LIMITED GENERAL GENERAL OBLIGATION GENERAL SPRING TRAINING FISCAL YEAR OBLIGATION BONDS REFUNDING BONDS OBLIGATION BONDS FACH-ITY BONDS ENDING SERIES 2006 SERIES 2003 1 SERIES 2001 Interest SERIES 2001 Principal Interest SEPT. 30 Principal Interest Principal Interest Principal 2007 $ 2,320,000 $ 2,140,863 $ 1,105,000$ 124,638 $ 670,000 $ 312,417 $ 520,000 $ 704,062 2008 2,565,000 2,048,063 1,135,000 99,775 690,000 290,643 545,000 685,343 2009 2,670,000 1,945,463 1,170,000 71,400 720,000 266,493 560,000 664,633 2010 2,775,000 1,838,663 1,210,000 36,300 745,000 240,572 585,000 642,232 2011 2,885,000 1,727,663 - - 780,000 213,008 605,000 618,833 2012-2016 16,310,000 6,711,915 - - 4,430,000 575,425 3,455,000 2,662,305 2017-2021 19,075,000 2,667,765 - - 4,435,000 1,676,413 - - 1,695,000 793,000 2022-2026 - - - - - 2,120,000 324,750 2027-2031 Total - 48,600,000 - 19,080,395 4,620,000 332,113 8,035,000 1,898,558 14,520,000 8,771,571 Less: Cl fent portion 2,320,000 - 1,105,000 - 670,000 - 520,000 - Unamortized bond discount - - - - - Add: Unamortized bond premium Total $ 1,375,060 47,655,060 $ - 19,080,395 $ - 3,515,000 $ 332,113 $ - 1,898,558 $ 14,000,000 $ 8,771,571 7,365,000 $ 81 Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2006 NOTE 12 - LONG-TERM LIABILITIES - Continued A. Primary Government - Continued The Fourth Cent Tourist Development Tax and the Local Government Half -Cent Sales Tax pledged to the payment of debt service on the Series 2001 Bonds are automatically released as a pledged revenue for the Series 2001 Bonds immediately following the April 1, 2021 principal payment on the Series 2001 Bonds. Bonds Issued - At September 30, 2006, Spring Training Facility Revenue Bonds consisted of the following: Interest Rates and Description Date Maturity Outstanding at September 30, Issue 2006 Spring Training 3.30%-5.25% Facility 4/1 and 10/1 2031 $ 16.810,000 $ 14,520,000 Optional Redemption - The Series 2001 Bonds maturing on or after April 1, 2012, are subject to Li redemption at the option of the County in whole or in part, on April 1, 2011, or on any date thereafter at par plus accrued interest and plus a premium ranging between 0% to 1% depending on the year of the redemption. Mandatory Redemption - The Series 2001 Term Bonds are subject to mandatory redemption prior to maturity, by lot, at par plus accrued interest, according to the following schedule: Term Bonds due April 1; 2015 Date Principal Amount April 1, 2014 $ 685,000 April 1, 2015 725,000 Term Bonds due April 1, 2017 Date Principal Amount April 1, 2016 $ 760,000 April 1, 2017 795,000 Term Bonds due April 1, 2021 Date Principal Amount April 1, 2018 $ 840,000 April 1, 2019 890,000 April 1, 2020 930,000 April 1, 2021 980,000 80 a Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2006 NOTE 12 - LONG-TERM LIABILITIES - Continued A. Primary Government - Continued Bonds Issued - At September 30, 2006, General Obligation bonds consisted of the following: aInterest Outstanding at Rates and September 30, Description Date Maturity Issue 2006 General Obligation 2.50%-4.30% 2001 Series 1/1 and 7/1 2016 $ 11.000,000 $8,0350,00 a General Obligation 1.50%-3.00% Refunding 2003 Series 1/1 and 7/1 2010 $7,800-000 $4,620,000 Optional Redemption - The General Obligation Bonds, Series 2001, maturing on or after July 1, 2013, are subject to redemption prior to maturity, at the option of the County on and after July 1, 2012, in whole or in part, at any time, on any date at par plus accrued interest and plus a premium ranging between 0% to 1% depending on the year of redemption. The General Obligation Refunding Bonds, Series 2003, are not subject to redemption prior to their maturities. Spring Training Facility Revenue Bonds Purpose - On August 15, 2001, the Board issued $16,810,000 of Spring Training Facility Revenue Bonds, Series 2001. The Series 2001 Bonds are being issued by the County to provide funds, together with other available funds, to (1) finance a portion of the cost of acquisition and expansion of a spring training facility known as "Dodgertown"; (2) pay a premium for a municipal bond insurance policy and a debt service reserve account surety bond, and (3) pay certain costs and expenses incurred in connection with the issuance of the Series 2001 Bonds. LJ Pledge of Revenues - The principal and interest on the Series 2001 Bonds will be payable from and secured by a first lien upon and pledge of the following, together with any investment income realized on any funds held under the Resolution, except the Cost of Issuance Account and the Rebate Fund: (1) Payments received by the County from the State of Florida pursuant to Section 212.20, Florida Statutes; and (2) The Fourth Cent Tourist Development Tax levied by the County in Ordinance No. 2000-029, enacted pursuant to Section 125.0104(3)(1), Florida Statutes; and (3) Eighty-six percent (86%) of the Local Government Half -Cent Sales Tax distributed to the County, pursuant to Chapter 218, part VI, Florida Statutes. The foregoing are collectively referred to herein as the "pledged revenues". a 0 79 Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2006 NOTE 12 - LONG-TERM LIABILITIES - Continued A. Primary Government - Continued Pledge of revenues — The principal and interest on the bonds are payable from ad valorem taxes not O exceeding '/z mil and having a maturity not exceeding fifteen years, which are levied by the County upon the taxable real and personal property of the County. n Bonds Issued - At September 30, 2006, General Obligation bonds consisted of the following: Interest Outstanding at L Rates and September 30, Description Date Maturity Issue 2006 Limited General 4.00%-5.00% Obligation 2006 Series 1/1 and 7/1 2001 48,600.000 48.600,000 n Optional Redemption — The Limited General Obligation Bonds, Series 2006, maturing on or after July 1, 2017, are subject to redemption prior to maturity, at the option of the County on and after July 1, 2016, in whole or in part, at any time, on any date at a redemption price of 100% of the principal amount thereof, together with accrued interest thereon to the redemption date. General Obligation Bonds Purpose - On November 29, 2001, the Board issued the additional $11,000,000 of General Obligation Bonds Series 2001. The issuance of the Series 1995 bonds and the Series 2001 bonds were approved by a majority of votes cast in a bond referendum held on November 2, 1992, by the qualified electors of the County. The referendum authorized a total of $26,000,000 aggregate principal amount of general obligation bonds, in one or more series, of which the Series 1995 bonds are the first (in the amount of $15,000,000) and the Series 2001 bonds are the second. The proceeds of this issue will provide funds to acquire environmentally sensitive lands, together with the necessary restoration, remediation and reclamation activities to preserve and enhance such property. On July 1, 2003, the Board issued $7,800,000 of General Obligation Refunding Bonds, Series 2003. The bonds were issued to provide funds, together with $600,000, to refund and redeem all of the outstanding principal amount of the County's $15,000,000 General Obligation Bonds Series 1995. Proceeds of the bonds will also be used to pay cost of issuance of the Bonds, including the premiums for guaranty insurance. Pledge of Revenues - The principal and interest on the bonds are payable from ad valorem taxes levied by the County upon the taxable real and personal property of the County. 11 78 H Indian River County, Florida n Notes To Financial Statements Year Ended September 30, 2006 NOTE 12 - LONG-TERM LIABILITIES - Continued A. Primary Government - Continued Annual Debt Service Payments — Business -type Activities aThe annual debt service payments for bonds outstanding at September 30, 2006 are as follows: 0 FISCAL YEARS ENDING SEPTEMBER 2007 2008 2009 2010 2011 2012-2016 2017-2021 2022-2026 Total Less: Current portion Unamortized bond discount Add: Unamortized bond premium Total RECREATIONAL REVENUE SERIES 2003 Principal $ 475,000 485,000 490,000 510,000 520,000 2,655,000 5,135,000 475,000 45,901 $ 4,614,099 Interest $ 170,858 160,764 148,639 135,164 119,864 304,251 1,039,540 $ 1,039,540 WATER AND SEWER REFUNDING BONDS SERIES 1993 Principal $ 1,230,000 1,310,000 1,395,000 1,475,000 1,555,000 9,150,000 11,870,000 7,250,000 35,235,000 1,230,000 1,053,624 $ 32,951,376 Interest $ 1,910,450 1,830,500 1,745,350 1,668,625 1,587,500 6,557,000 3,836,700 699,563 19,835,688 WATER AND SEWER REFUNDING BONDS SERIES 2005 Principal $ 1,275,000 1,310,000 1,350,000 1,395,000 1,435,000 8,035,000 10,145,000 2,310,000 27,255,000 1,275,000 Interest $ 1,130,700 1,092,450 1,053,150 1,012,650 970,800 3,992,450 1,878,300 92,400 11,222,900 - 979,739 - $ 19,835,688 $ 26,959,739 $ 11,222,900 Governmental Activities Limited General Obligation Bonds Purpose — On July 6, 2006, the Board issued $48,600,000 of Limited General Obligation Bonds Series 2006. The issuance of the Series 2006 bonds was approved by a majority of votes cast in a bond referendum held on November 2, 2004, by the qualified electors of the County. The referendum authorized a total of $50,000,000 aggregate principal amount of limited general obligation bonds. The proceeds of this issue will provide funds to acquire by purchase, interest in lands to protect water resources and/or drinking water sources, environmentally sensitive lands, historic sites, and/or aagricultural lands together with the necessary restoration, remediation and reclamation activities to preserve and enhance such property and customary and necessary costs incurred in the acquisition. r 77 Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2006 NOTE 12 - LONG-TERM LIABILITIES -Continued A. Primary Government - Continued Water and Sewer Revenue Refunding Bonds, Series 2005 Purpose - The Series 2005 Bonds were issued to legally defease $31,680,000 of the County's outstanding Water and Sewer Revenue Bonds, Series 1996. These bonds were issued by the County to provide funds, together with $5,000,000, to retire 95 percent of the 1996 Series and to pay for all bond issuance costs. The September 1, 2005 and 2006 principal installments were not subject to early call and consequently paid at their respective maturity dates. The aggregate difference in debt service between the Series 1996 ($40,585,193) and Series 2005 ($39,619,193) is $966,000. The net economic gain was $2,944,661, which included shortening the term of the bonds by four years and lowering average annual debt service by $242,000. Pledge of Revenues - The revenue bonds are collateralized by a pledge of all net revenues derived from L the operation of the system and certain surcharges and special assessments. Bonds Issued - At September 30, 2006, the revenue bonds consisted of the following: O Interest Outstanding at Rates and September 30, Description Date Maturity Issue 2006 Water and Sewer 3-5% Revenue Bonds, 3/1 and 9/1 2022 $ 27,675,000 $ 27,255,000 Series 2005 Less: Current Portion of Bonds 1,275,000 Add: Unamortized Bond Premium 979,739 Long -Term Portion $ 26,959.739 Outstanding In -Substance Defeased Debt - The proceeds from the refunding have been invested in Federal Securities and placed in an escrow account with J.P. Morgan. All of the defeased bonds ($31,680,000) were called on September 1, 2006 at 102% of the outstanding principal amount. Optional Redemption - The Series 2005 Bonds maturing after September 1, 2015, are subject to redemption by the County on or after September 1, 2015, in whole or in part, at par, plus accrued interest to date of redemption. 76 a Indian River County, Florida a Notes To Financial Statements Year Ended September 30, 2006 NOTE 12 - LONG-TERM LIABILITIES - Continued A. Primary Government - Continued aWater and Sewer Revenue Bonds Series 1993A - Continued Term Bonds Due September 1, 2008 Date September 1, 2007 September 1, 2008 Term Bonds due September 1, 2011 Date — September 1, 2009 September 1, 2010 aSeptember 1, 2011 1 1 Term Bonds due September 1, 2015 Date September 1, 2012 September 1, 2013 September 1, 2014 September 1, 2015 Term Bonds due September 1, 2018 Date September 1, 2016 September 1, 2017 September 1, 2018 Term Bonds due September 1, 2020 Date September 1, 2019 September 1, 2020 Term Bonds due September 1, 2024 Date September 1, 2021 September 1, 2022 September 1, 2023 September 1, 2024 Principal Amount $ 1,230,000 1,310,000 Principal Amount $ 1,395,000 1,475,000 1,555,000 Principal Amount $ 1,640,000 1,730,000 1,825,000 1,925,000 Principal Amount $ 2,030,000 2,135,000 2,250,000 Principal Amount $ 2,370,000 2,490,000 Principal Amount $ 2,625,000 2,760,000 2,905,000 1,585,000 Optional Redemption - The revenue bonds, Series 1993A, maturing on or after September 1, 2009, are subject to redemption prior to maturity, at the option of the County on and after September 1, 2008, in whole or in part, at any time, on any interest payment date at par plus accrued interest and plus a premium ranging between 0% and 2% depending on the year of redemption. 75 Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2006 NOTE 12 - LONG-TERM LIABILITIES - Continued A. Primary Government - Continued The aggregate difference in debt service between the Series 1993 debt ($9,284,290) and Series 2003 debt (8,060,911) is $1,223,379. The net economic gain was $348,450. Bonds Issued - At September 30, 2006, the revenue bonds consisted of the following: Interest Rates and Description Date 2003 Recreational Revenue 2.00-4.125% Refunding Bonds 3/1 and 9/1 Less: Current Portion Unamortized Bond Discount Long -Term Portion Outstanding at September 30, Maturity Issue 2006 9/1/16 $ 6,455,000 $ 5,135,000 475,000 45,901 4 614 099 Optional Redemption - The revenue bonds, maturing on or after September 1, 2014, are subject to redemption prior to maturity, at the option of the County on and after September 1, 2013, in whole or in part, at any time thereafter at the redemption price of par, plus interest accrued to the date of redemption. Water and Sewer Revenue Bonds, Series 1993A Purpose - The Series 1993 bonds were issued to legally defease all of the County's outstanding Water and Sewer Revenue and Refunding Bonds, Series 1986 and 1986A, Series 1989, Series 1991, and Special Assessment Revenue Bonds, Series 1989 and Series 1990, and to provide funds to make certain capital improvements to the utility system. Pledge of Revenues - The revenue bonds are collateralized by a pledge of all net revenues derived from the operation of the system, and certain surcharges and special assessments. Bonds Issued - At September 30, 2006, the revenue bonds consisted of the following: Interest Outstanding at Rates and September 30, Description Date Maturity Issue 2006 Water and Sewer 2.60-6.50% Revenue Bonds, 3/1 and 9/1 2024 $ 47,190,000 $ 35,235,000 Series 1993A Less: Current Portion 1,230,000 Unamortized Bond Discount 1,053,624 Long -Term Portion 32.951.376 Mandatory Redemption - The Series 1993A Term Bonds are subject to mandatory redemption by lot, prior to maturity, at par plus accrued interest to date of redemption, based on the following schedule: 74 A t Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2006 NOTE 11- RECEIVABLE AND PAYABLE BALANCES - Continued Payables Payables at September 30, 2006, were as follows: Salaries and Total Governmental Activities: Vendors Benefits Retainage $ 1,575 Payables $ 2,608,038 General $ 1,524,242 1,051,535 $ 1,082,221 1,324 426,123 1,478,982 Impact Fees Secondary Roads Construction 1,588,324 9,445 198,163 704 1,795,932 369,773 Transportation 177,034 416,038 192,035 397,093 141 813,272 Emergency Services 55,017 Land Acquisition 55017 570,698 - - 22,035 592,733 Federal/State Grants Optional Sales Tax 4,257,789 2,115 2,044,578 6,304,482 Other governmental 1,965,273 $11,605,950 36.977 $ 1,721.210 207,789 $ 2,901.108 2,210,039 $ 16.228.268 Total Governmental Activities Business -Type Activities Payable from current assets: $ 1,101,605 $ .59,210 $ _ $ 1,160,815 Solid Waste Golf Course 198,304 16,495 - 214,799 1,360,903 Utilities 1,1 93,482 74,889 167,421 63,552 - 758 139,199 Other Payable from restricted assets: _ 3,173 3,173 Solid Waste _ 1 678,189 - 245,254 1,923,443 Utilities Total Business -Type Activities $ 4,246,469 3066 8 249185 $ 4.802,332 The County has not engaged in any short-term debt activity during the year other than that listed in Note 9. NOTE 12 - LONG-TERM LIABILITIES A. Primary Government Business -type Activities Recreational (Golf Course) Revenue Refunding Bonds Series 2003 Purpose - On October 15, 2003, the Series 2003 bonds were issued to legally redeem $6,735,000 of the County's outstanding Recreational Revenue Bonds, Series 1993. The Series 2003 bonds are being issued by the County to provide funds, together with $583,790, to retire all of the outstanding 1993 Series bonds and to pay, for all bond issuance costs. Pledge of Revenues -The revenue bonds and nd Jail AlailizedFronton funds and seven percentn the net revenuesderived thhalf-cent operations of the golf course, racetrack sales tax accruing annually to the County. 73 Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2006 NOTE 11 - RECEIVABLE AND PAYABLE BALANCES Receivables Receivables at September 30, 2006, were as follows: Due from Governmental Activities: Accounts Other Governments Total General $ 563,436 $ 2,346,150 $ 2,909,586 Impact Fees - 331,330 331,330 Secondary Roads Construction 76,300 508,972 585,272 Transportation 783 1,654,254 1,655,037 Emergency Services - 16,250 16,250 Land Acquisition - 2,194,630 2,194,630 Federal/State Grants - 780,702 780,702 Optional Sales Tax 26,175 1,329,885 1,356,060 Other governmental 1,530,291 2,848,826 4,379,117 Total Governmental Activities $ 2.196.985 $ 12.010.999 $ 14.207.984 Business -Type Activities: Solid Waste $ 405,081 $ 1,100,947 $ 1,506,028 Golf Course - 10,500 10,500 Utilities 3,177,064 - 3,177,064 Other proprietary 77 - 77 Total Business -Type Activities $ 3.582.222 $ 1.111.447 $ 4.693.669 On May 2, 2006, the Board approved an incentive loan agreement with Adrian Investments regarding their development of the Indian River Park of Commerce. This agreement resulted in a total $1.5 million note receivable due to the Board and will be repaid by Adrian Investments in payments upon closing of the conveyance of each lot in the park. The total balance will be repaid over ten years. During fiscal year 2006, the Board loaned the initial $1.0 million on the above project. The remaining $500,000 will be paid to Adrian Investments upon final plat approval or issuance of a certificate of completion. Funding for the $1.0 million note receivable was from the following funds: $666,667 from the Secondary Roads Construction Fund and $333,333 from the Utilities Fund. 11, 72 U Indian River County, Florida n Notes To Financial Statements (I Year Ended September 30, 2006 NOTE 10 - INTERFUND TRANSFERS Transfers are used to 1) move revenues from the fund that state law requires to collect them to the fund that state law requires to expend them, 2) provide matching funds for grants, 3) use unrestricted general fund revenues to finance transportation activities which must be accounted for in another fund, 4) use unrestricted general fund revenues for beach restoration activities which must be accounted for in another fund, 5) use unrestricted general fund revenues to subsidize a business activity, the Shooting Range, 6) allocate hurricane insurance proceeds to the appropriate fund, 7) transfer balance of completed capital projects funds, and 8) provide funding for construction of the County Administration Building. 71 Interfund transfers for the year ended September 30, 2006, consisted of the following: Transfers to General Fund from: Emergency Services District Fund $ 513,792 Golf Course Fund 44,530 Nonmajor governmental funds 441,595 Internal service fund 3,705,837 Transfers to Transportation Fund from: General Fund 11,048,573 Transfers to Emergency Services District Fund from: Internal Service Fund 738,100 Transfers to Optional Sales Tax Fund from: General Fund 807,488 Solid Waste Disposal District Fund 126,193 Utilities Fund 3,100,735 Nonmajor enterprise funds 2,352,593 Transfers to Solid Waste Disposal District Fund from: Internal Service Fund 15,514 Transfers to Utilities Fund from: Internal Service Fund 132,062 Transfers to Nonmajor governmental funds from: General Fund 189,254 All other transfers 50,667 aTransfers to nonmajor enterprise funds from: General Fund 195,644 Internal Service Fund 179,562 All other transfers 40,423 Total transfers 23,682,562 Transfers are used to 1) move revenues from the fund that state law requires to collect them to the fund that state law requires to expend them, 2) provide matching funds for grants, 3) use unrestricted general fund revenues to finance transportation activities which must be accounted for in another fund, 4) use unrestricted general fund revenues for beach restoration activities which must be accounted for in another fund, 5) use unrestricted general fund revenues to subsidize a business activity, the Shooting Range, 6) allocate hurricane insurance proceeds to the appropriate fund, 7) transfer balance of completed capital projects funds, and 8) provide funding for construction of the County Administration Building. 71 Indian River County, Florida O Notes To Financial Statements Year Ended September 30, 2006 NOTE 9 - INTERFUND BALANCES Interfund balances at September 30, 2006, consisted of the following: Due to General Fund from: Major governmental fund: Federal/State Grants Fund $ 105,207 Nonmajor governmental funds: Community Development Block Grant Fund 125,000 Clerk Special Revenue Fund 12,750 Total 242 957 Amounts due from the above funds represent short-term cash loans that will be repaid within the next a twelve months. Due from General Fund to: Major governmental fund: Optional Sales Tax Fund $ 18,000 Emergency Services District Fund 273,316 Total 291 316 Due from General Fund to: Major enterprise fund: Solid Waste Disposal District Fund $ 87,859 Total 87 859 Nonmajor governmental funds: Land Acquisition Bond Fund $ 29,230 Street Lighting Districts 2,053 Vero Lake Estate Fund 1,123 East Gifford Stormwater 17 a Total 32 423 Amounts due from the General Fund represent excess fees and payments of the constitutional officers remitted to various funds subsequent to September 30, 2006. Interfund advances at September 30, 2006, consisted of the following: Due to Secondary Roads Fund from: Golf Course Fund $ 654,000 Due to Optional Sales Tax Fund from: General Fund 987,105 Total 1 641 105 Both amounts are considered long-term advances expected to be paid over the course of several years. Reservations of fund balance have been established for these amounts. 70 Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2006 NOTE 7 - RESTRICTED CASH AND CASH EQUIVALENTS AND INVESTMENTS Various bond covenants, resolutions and state regulations require that the County restrict cash and cash equivalents and investments within the Enterprise Funds. Restricted cash and cash equivalents and investments are as follows: Solid Waste Government Other Component Unit Disposal Golf County Enterprise Housing District Course Utilities Funds Total Authori Sinking Funds $ - $ 53,821 $ 4,449,904 $ - $ 4,503,725 $ 238,002 Renewal and Replacement 3,3475112 - 3,485,928 - 6,833,040 468,664 Customer Deposits 224,928 - 2,973,271 72,570 3,270,769 40,197 Capital Construction - - 72,457,434 40,423 72,497,857 Closure and Maintenance Authority 9,744,598 - Cost 9,744,598 - _ - 60,907 Tax Escrow - - Total $ 13.316, $ 53,821 $ 83 366,537 $ —112993 $ 96 84 98 $ K7-73-0- 077 0Cash Cashtotaling $8,160,589 is restricted for current liabilities in various governmental activities for retainage payable, accrued interest payable, and the current year portion of bonds payable. NOTE 8, - PAYABLE FROM RESTRICTED ASSETS Liabilities payable from the County's Enterprise Funds restricted assets are as follows: Component Primary Government Unit Solid Waste Disposal Golf County Other Enterprise Housing District Course Utilities Funds Total Authority Accounts payable $ - $ - $ 1,678,189 $ - $ 1,678,189 $ _ Retainage payable 3,173 - 245,254 - 248,427 Accrued interest payable - 14,238 253,429 - 267,667 42,683 Bonds payable (current portion) - 475,000 2,505,000 - 2,980,000 378,000 Closure and Maintenance - 9,744,598 - Costs payable Customer deposits 9,744,598 224,928 - - - 2,973,271 72,571 3,270.770 40,197 Total $9,972,699-$ 489 238 $ 7.655.143 $ 72,571 $ 18,189,651 $ 460,880 Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2006 NOTE 6 - CAPITAL ASSETS — Continued Land additions include $1,650,655 of land parcels contributed to the County by developers for future use as mitigation, emergency services, and public school sites. Depreciation expense was charged to functions/programs of the primary government as follows: Governmental activities: General government Public safety Physical environment Transportation Economic environment Human service Culture/recreation Court related Capital assets held by the government's internal service funds are Charged to the various functions based on their usage of the assets Total depreciation expense — governmental activities Business -type activities: Solid Waste Disposal District Shooting Range Golf Course County Building County Utilities Total depreciation expense — business -type activities $ 2,030,605 2,829,619 8,372 6,767,510 5,767 134,157 1,069,799 265,607 $ 11,220 13,122,656 $ 608,782 35,100 216,572 110,259 12,499,658 13,470,371 G 11 68 H J 11 1 Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2006 NOTE 6 - CAPITAL ASSETS Primary Government Governmental activities: Capital assets, not being depreciated: Land Construction in progress Right-of-way PEP Reef/Stormwater ponds Total capital assets, not being depreciated Beginning Balance $ 74,109,790 $ 53,786,742 12,479,094 3,575,067 143,950,693 Capital assets, being depreciated: Buildings and Improvements Equipment Infrastructure Total capital assets, being depreciated Less accumulated depreciation for: Buildings and improvements Equipment Infrastructure Total accumulated depreciation Total capital assets, being depreciated, net Governmental activities capital assets, net $ 72,864,290 48,306,305 169,001,172 290,171,767 Ending Additions Deletions Balance 9,557,822 $ (216,299) $ 83,451,313 55,546,900 (12,485,317) 96,848,325 3,464,533 - 15,943,627 - - 3,575,067 68,569,255 (12,701,616) 199,818,332 6,518,994 - 79,383,284 8,284,266 (3,910,070) 52,680,501 4,122,055 - 173,123,227 18,925,315 (3,910,070) 305,187,012 (15,690,252) (1,498,039) - (17,188,291) (22,102,692) (5,876,915) 4,092,639 (23,886,968) (102,714,699) (5,747,702) - (108,462,401) (140,507,643) (13,122,656) 4,092,639 (149,537,660) 149,664,124 5,802,658 182,569 155,649,351 293,614,817 $ 74,371,914 $ (12,519,047) $ 355,467,684 Business -type activities: Capital assets, not being depreciated: Land $ 17,037,502 $ 1,618,006 $ (287,381) $ 18,368,127 Construction in progress 23,158,207 12,195,777 (15,236,663) 20,117,321 Total capital assets, not being depreciated 40,195,709 13,813,783 (15,524,044) 38,485,448 Capital assets, being depreciated: Buildings, distribution systems, & improvements 261,343,691 Equipment 17,887,530 Total capital assets, being depreciated 279,231,221 Less accumulated depreciation for: Buildings, distribution systems, & improvements (103,150,494) Equipment (11,519,888) Total accumulated depreciation (114,670,382) Total capital assets, being depreciated, net 164,560,839 Business -type activities capital assets, net $ 204,756,548 $ 67 27,040,036 - 288,383,727 3,066,644 (1,127,475) 19,826,699 30,106,680 (1,127,475) 308,210,426 (11,482,818) - (114,633,312) (1,987,553) 1,118,228 (12,389,213) (13,470,371) 1,118,228 (127,022,525) 16,636,309 (9,247) 181,187,901 30,450,092 $ (15,533,291) $ 219,673,349 Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2006 NOTE 4 - CASH AND CASH EQUIVALENTS - Continued C. Investments - Continued Concentration Risk The County's investment policy has established asset allocation and issuer limits to reduce concentration of credit risk in the County's investment portfolio. All investments are stated at fair value. The County's investment policy does not allow for more than 20% of the entire portfolio to be invested in any one issuer, with the exception of United States Treasury Obligations and state authorized pools. No more than 10% of the portfolio may be placed in certificates of deposit (CD) and no more than $3 million of the portfolio may be placed in certificates of deposit with any one financial institution. With the exception of state authorized pools, nor more than 10% of the portfolio may be placed in any one money market fund. The Tax Collector does allow 25% of the portfolio to be invested in CDs and/or money market funds. See investment list and percentages on previous page. Custodial Credit Risk The County's investment policy pursuant to Section 218.415 (18), Florida Statutes requires securities to be registered and shall be held with a third party custodian and all securities purchased by, and all collateral obtained by, the County shall be held in the name of the County. The securities must by held in an account separate and apart from the assets of the financial institution. As of September 30, 2006, the County's investment portfolio in U.S. Treasuries and U.S. Agencies was held by the Bank of New York. NOTE 5 - PROPERTY TAX REVENUES Taxable values for all property are established as of January 1, which is the date of lien, for the fiscal L year starting October 1. Property tax revenues recognized for the 2005-2006 fiscal year were levied in October 2005. All taxes are due and payable on November 1 or as soon as the assessment roll is certified and delivered to the Tax Collector. Discounts are allowed for early payment at the rate of 4% in November, 3% in December, 2% in January, and 1% in February. Taxes paid in March are without discount. All unpaid taxes become delinquent as of April 1. Virtually all unpaid taxes are collected via the sale of tax certificates on or prior to June 1; therefore, there were no material taxes receivable at fiscal year end. 0 66 n Indian River County, Florida n Notes To Financial Statements I I Year Ended September 30, 2006 NOTE 4 - CASH AND CASH EQUIVALENTS - Continued a C. Investment - Continued Interest Rate Risk The County's investment policy limits interest rate risk by attempting to match investment maturities with known cash needs and anticipated cash flow requirements. All investments must have stated maturities to ten (10) years or less and no more than 25% of the portfolio shall be invested in instruments with stated final maturities greater than five (5) years. The portfolio shall have securities with varying maturity and at least 10% of the portfolio shall be invested in readily available funds. All constitutional officers with the exception of the Tax Collector follow this policy. The Tax Collector's policy is to limit maturities to 12 months or less and maintain 95% of the portfolio in readily available funds. Credit Risks State law (Section 218.415 of the Florida State Statutes) and the County's investment policy limit investments to the following: 1. Direct obligations of the United States Treasury; 2. State of Florida Local Government Surplus Trust Fund (SBA); 3. Florida Local Government Investment Trust Fund (FLGIT); 4. Interest-bearing time deposits or savings in qualified public depositories as defined in Section 280.02 Florida Statutes; 5. Federal agencies and instrumentalities; 6. Securities of, or other interests in, any open-end or closed-end management -type investment company or investment trust registered under the Investment Company Act of 1940, 15 U.S.C. ss. 80a-1 et seq., as amended from time to time, provided that the portfolio of such investment company or investment trust is limited to obligations of the United States Government or any agency or instrumentality thereof and to repurchase agreements fully collateralized by such United States Government obligations, and provided that such investment company or investment trust takes delivery of such collateral either directly or through an authorized custodian; 7. Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency; 8. Repurchase agreements with a term of one year or less collateralized by direct obligations of the United States Government which have maturities of three (3) years or less and a market value 103% or more of the repurchase amount. Upon issuance of the Water and Sewer Bonds, Series 1993A and 1993B, the Board invested the required sinking fund reserve monies, $3,139,285, in a guaranteed investment contract with AIG Matched Funding Corporation. This contract is for the life of the bonds and has a rate of earnings slightly less athan the arbitrage yield of the bonds. 65 Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2006 NOTE 4 - CASH AND CASH EQUIVALENTS - Continued B. Accrued Interest Interest earnings on U.S. Treasury Notes and government agency bonds are recorded in the cash and investment pool and then allocated to each fund based on each fund's average monthly balance. Interest received within 45 days of September 30, in the amount of $1,861,432, was accrued and allocated to the funds based on their average monthly balance for September. In addition, accrued interest on special assessments receivable totaled $72,211 and on a capital projects reserve account totaled $9,178. C. Investments On August 17, 2004, the County and the constitutional officers, with the exception of the Tax Collector, formally adopted an investment policy pursuant to Section 218.415, Florida Statutes, that established permitted investments, asset allocation limits, issuer limits, credit ratings requirements and maturity limits to protect the County's cash and investments. The Tax Collector adopted his formal policy in February 2005. As of September 30, 2006, the County had the following investments: Investment Type Fixed Rate Debt Investments: U.S. Treasuries U.S. Agencies:** Federal Farm Credit Bureau Federal Home Loan Bank Federal Home Loan Mortgage Corp Federal National Mortgage Assoc. Guaranteed Investment Contact Other Fixed Rate Investments: Local Governmental Surplus Funds Trust Funds Florida Local Government Investment Trust Fund Other Market Rate Investment: U.S. Treasury Money Market Total Fair Value Portfolio weighted average maturity 16,302,582 143,132 $ 443.317.036 .08 3.7 AAA and S-1 * 25 0.03 100.00 Will * AAA credit quality, S-1 Market Volatility * * The weighted calculation considers the investments are carried until full maturity (i.e. call dates are not considered). u� 1 64 a Weighted Average Fair Maturity Portfolio Credit Value In Years Percentage Risks $ 65,723,535 1.11 14.8% None 82,273,908 1.20 18.6 AAA 80,714,994 0.98 18.2 AAA 55,771,848 1.18 12.6 AAA 69,719,810 1.43 15.7 AAA 3,139,285 17.92 0.77 AA -/A1+ 69,527,942 .08 15.6 Not Rated 16,302,582 143,132 $ 443.317.036 .08 3.7 AAA and S-1 * 25 0.03 100.00 Will * AAA credit quality, S-1 Market Volatility * * The weighted calculation considers the investments are carried until full maturity (i.e. call dates are not considered). u� 1 64 a aIndian River County, Florida Notes To Financial Statements n Year Ended September 30, 2006 u Component Unit Housing Authority 810,784 857,465 (46,681) NOTE 4 - CASH AND CASH EQUIVALENTS The County maintains a cash and investment pool that is available for use by all funds except those whose cash and investments must be segregated due to bond covenants or other legal restrictions. A. Deposits At September 30, 2006, the carrying amount of the primary government's deposits was $20,772,435 and the bank balance was $27,736,493. The County's policy requires all deposits with financial institutions to be 100% insured by federal depository insurance or by collateral provided by qualified public a depositories to the State Treasurer, in accordance with Section 280.01, Florida Statutes also known as the Florida Security for Public Deposit Act. The Act established a Trust Fund, maintained by the State Treasurer, which is a multiple financial institution pool with the ability to assess its member financial institutions for collateral shortfalls if a member fails. The carrying amount of the component unit's deposits totaled $936,485 and the bank balance was $933,900. As of September 30, 2006, the component unit had $52,312 in a certificate of deposit that will mature in January 2007 with an annual yield of 4.89%. The component unit had a second certificate of deposit in the amount of $10,044 that will mature in March 2007 with an annual yield of 5.22%. U63 NOTE 3 - STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY Budgets and Budgetary Accounting — Continued (9) The following is a comparison of the total appropriations to gross expenses for the proprietary funds for the fiscal year ended September 30, 2006: Variance Total Positive Appropriations Ecpenses (Negative) a Primary Government Enterprise Funds: Solid Waste Disposal District $ 12,940,224 $ 11,689,045 $ 1,251,179 Shooting Range 413,454 3,352,742 412,759 3,103,050 695 249,692 Golf Course County Building 6,510,416 6,142,422 367,994 County Utilities 42,946,200 36,491,470 6,454,730 Internal Service Funds: Fleet Management 3,546,011 3,435,782 110,229 a Self Insurance 23,241,464 19,784,043 3,457,421 GIS 395,000 56,277 338,723 u Component Unit Housing Authority 810,784 857,465 (46,681) NOTE 4 - CASH AND CASH EQUIVALENTS The County maintains a cash and investment pool that is available for use by all funds except those whose cash and investments must be segregated due to bond covenants or other legal restrictions. A. Deposits At September 30, 2006, the carrying amount of the primary government's deposits was $20,772,435 and the bank balance was $27,736,493. The County's policy requires all deposits with financial institutions to be 100% insured by federal depository insurance or by collateral provided by qualified public a depositories to the State Treasurer, in accordance with Section 280.01, Florida Statutes also known as the Florida Security for Public Deposit Act. The Act established a Trust Fund, maintained by the State Treasurer, which is a multiple financial institution pool with the ability to assess its member financial institutions for collateral shortfalls if a member fails. The carrying amount of the component unit's deposits totaled $936,485 and the bank balance was $933,900. As of September 30, 2006, the component unit had $52,312 in a certificate of deposit that will mature in January 2007 with an annual yield of 4.89%. The component unit had a second certificate of deposit in the amount of $10,044 that will mature in March 2007 with an annual yield of 5.22%. U63 Indian River County, Florida a Notes To Financial Statements Year Ended September 30, 2006 NOTE 3 - STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY Budgets and Budgetary Accounting The County uses the following procedures in establishing the budgetary data reflected in the financial statements: (1) The constitutional officers submit, at various times, to the Board and to certain divisions within the Department of Revenue, State of Florida, a proposed operating budget for the fiscal year commencing the following October 1. The operating budget includes proposed expenditures and the means of financing them, as set forth in Chapter 129 of the Florida Statutes. (2) The Department of Revenue, State of Florida, has the final authority on the operating budgets for the Tax Collector and the Property Appraiser included in the General Fund. (3) Constitutional officers, all departments controlled by the Board, and outside state and local agencies submit their proposed budgets to the Office of Management and Budget for assistance, review and compilation. The County Administrator then reviews all County departments, state agencies and nonprofit organization's budgets and makes his budget recommendation to the Board. (4) On or before July 15 of each year, the County Administrator and the Director of the Office of Management and Budget, as the Board's designated budget officer, submit to the Board a tentative budget for the ensuing fiscal year. The tentative budget includes proposed expenditures and the means of financing them. The Board then holds workshops to review the tentative budget by fund on a departmental level. (5) During September, public hearings are held pursuant to Section 200.065 of the Florida Statutes in order for the Board to receive public input on the tentative budget. At the end of the last public hearing, the Board enacts ordinances to legally adopt the budgets at the fund level for all but two governmental and proprietary fund types. The budgets legally adopted by the Board set forth the anticipated revenues by source and the appropriations by function. (6) Formal budgetary integration on an object level is used as a management control device for the governmental and proprietary funds of the County. Management is authorized to transfer budgeted amounts between objects and departments in any fund as long as management does not exceed the total appropriations of a fund. Board approval to amend the budget is only required when unanticipated revenues are received that management wishes to have appropriated, thereby increasing the total appropriations of a fund. (7) Budgets for the governmental and proprietary fund types are adopted on a basis consistent with generally accepted accounting principles. (8) Appropriations for the County lapse at the close of the fiscal year. E 62 D a 0 0 Accrued Internal Accrued Accrued Reclassifications Statement aExpenses Interest Unearned Service Grant and Tax Funds Revenues Interest Revenues and Eliminations of Activities Revenue $ _ $ _ $ - $ 116,088,548 1,274,638 394 (1,214,724) 37,047,159 _ _ - (2,767,560) 15,437,040 _ _ 2,069,593 a = = = 24,975,026 - (35,893) - - 651,916 - 937,590 - 12,163,995 1,104,116 - - - 5,701,485 35,893 1,756,426 (1,214,724) 937,590 (2,767,560) 214,757,484 a_ - (313,810) - - 34,400,675 14,642,124 _ - (950,852) - - (122,450) 58,578,985 _ - - 543,711 (24,064) 8,490,570 22,011,006 (756,313) - 1,077,731 (1,073) - - - 12,270,899 _ - (253,813) - - 318,165 11,546,217 (35,122) 6,014,793 2,315,372 524,941 - _ _ _ (37,848,475) - a524,941 - (2,275,861) - - (2,767,560) 136,947,697 (524,941) (35,893) 4,032,287 (1,214,724) 937,590 - 77,809,787 _ _ - (17,495,306) 5,624,051 _ - (4,771,075) - - 17,495,306 (563,205) - _ - (4,771,075 - _ - 5,060,846 (524,941) (35,893) (738,788) (1,214,724) 9375590 - 82,870,633 (119,540) 132,042 10,305,725 8,537,899 996,053 - 474,951,083 $ (644,481) $ 96,149 $ 9,566,937 $ 7,323,175 $ 1,933,643 $ - $ 557,821,716 a 61 Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2006 NOTE 2 - RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS — Continued B. Explanation of Differences Between Governmental Fund Operating Statements and the Statement of Activities REVENUES Taxes Licenses and Permits Intergovernmental Charges for services Fines and forfeitures Special assessments Interest Miscellaneous Total revenues EXPENDITURES Current: General government Public safety Physical environment Transportation Economic environment Human services Culture/Recreation Court related Debt service: Principal Intet Total assets Capital projects Total expenditures Total Capital Long-term Governmental Related Debt Compensated Funds Items Tansactions Absences $ 1161088,548 $ - $ - $ - 1,274,638 - - - 38,261,489 - - - 18,204,600 - - - 2,069,593 - - - 25,010,919 - - - 10,574,489 - - - 4,597,369 - - - 216,081,645 - - - Excess of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) Transfers in Transfers out Debt issuance Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year 21,831,839 (41,259,205) 384 (17,759) 65,975,870 (6,515,042) - 191,459 8,955,262 (993,688) (21,675) 6,960 30,610,413 (7,946,788) - 127,758 1,054,239 5,767 - 17,725 12,470,222 (180,085) - (18,165) 16,380,438 (4,980,039) - 81,466 5,915,727 109,635 - 24,553 2,615,659 - (2,615,659) - 1,790,431 - - - 37,848,475 - - - 205,448,575 (61,759,445) (2,636,950) 413,997 10,633,070 61,759,445 2,636,950 (413,997) 23,119,357 - - - (13,287,436) - - - 49,996,735 - (49,996,735) - 59,828,656 - (49,996,735) - 70,461,726 61,759,445 (47,359,785) (413,997) 196,232,876 293,312,414 (33,151,937) (1,294,449) $ 266,694,602 $ 355,071,859 $ (80,511,722) $ (1,708,446) 0 The accompanying notes are an integral part of the financial statements. 60 L1 Indian River County, Florida n Notes To Financial Statements lul Year Ended September 30, 2006 NOTE 2 - RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL nSTATEMENTS - Continued B. Explanation of Differences Between Governmental Fund Operating Statements and the Statement of Activities - Continued Long -Term Debt Transactions — Continued Governmental funds report interest expenditures based on when they are paid. The statement of activities reports interest expense as it is incurred. This is the net number of the previous year accrual and the current year accrual. Interest payable: Net accrued bond interest payable $(524,941) Special assessment revenues Revenues collected on special assessments are reported in the governmental funds. However, in the statement of activities, the assessment revenues are recognized when they are earned. U Special assessment revenues $(35,89 0 Internal service funds operating loss The assets and liabilities of the internal service funds are included in governmental activities in the n statement of net assets because they primarily serve governmental activities of the County. The net costs I I of the internal service funds are reported with governmental activities. Internal service funds operating gain $(738,788) Accrued grant revenues Some grant revenues are not recognized in the current period because the resources are not available; therefore, these revenues are not reported in the fund. This number is a net number of prior year accrual and current year accrual. nNet accrued grant revenues (1,214.724) Accrued interest revenues Some interest revenues are not recognized in the current period because the resources are not available; therefore, these revenues are not reported in the fund. This number is a net number of prior year accrual aand current year accrual. Net accrued interest revenues $937,590 aReclassification and Eliminations The general fund recognizes revenues in the amount of $2,767,560 for the general administrative charges to the public safety and transportation functions. These revenues and expenditures must be eliminated to avoid double counting. Transfers in and transfers out in the amount of $17,495,306 between governmental activities should be eliminated. Capital projects costs in the amount of $37,848,475 must be distributed to the related expenditure functions. 59 Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2006 NOTE 2 - RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS - Continued B. Explanation of Differences Between Governmental Fund Operating Statements and the Statement of Activities The "net change (decrease) in fund balances" for governmental funds ($70,461,726) differs from the "change in net assets" for governmental activities ($82,870,633) reported in the statement of activities. The differences arise primarily from the long-term economic focus of the statement of activities versus the current financial resources focus of the governmental funds. The effect of the differences is illustrated below. Capital related items When capital assets that are to be used in governmental activities are purchased or constructed, the resources expended for those assets are reported as expenditures in governmental funds. However, in the statement of activities, the costs of those assets is allocated over their estimated useful lives and reported as depreciation expense. As a result, fund balances decrease by the amount of financial resources expended, whereas net assets decrease by the amount of depreciation expense charged for the year. Capital outlay $ 74,904,612 Depreciation expense (13,111,435) Loss on assets (33,732) Difference X61,759,445 Long -Term Debt Transactions In the statement of activities, issuance of debt increases long-term liabilities. However, in the governmental funds, issuance of debt is treated as an other financing source since it provides current financial resources to the governmental funds. Debt issuance — net of premium (49,996,7351 Repayments of bond principal and capital lease principal are reported as an expenditure in the governmental funds and, thus, have the effect of reducing fund balance because current financial resources have been used. However, the principal payments reduce the liabilities in the statement of net assets and do not result in an expense in the statement of activities. Bond principal payments made $ 2,235,000 Bond premium payments made 21,675 Capital lease principal payments made 380,275 Total 2.636.950 Some expenses reported in the statement of activities do not require the use of current financial resources, therefore, are not reported as expenditures in governmental funds. Net change in compensated absences (413,997) 58 a 57 Internal Accrued Accrued Reclassifications Statement - - Unearned Service Funds Grant Revenues Interest Revenues and Eliminations of Net Assets Revenue (654,555) - $ 13,342,194 $ - $ - $ - $ 301,304,849 - - _ - 143,132 _ _ 5,417,583 - - 2,196,985 - 1,471,457 - 77,150,060 (555) 566,141 (987,105) _ _ 18,378 6,929,528 - - 12,010,999 - - 1,933,643 - 1,942,821 6,929,528 1,933,643 - 557,821,716 - 121,661 - 111,560 - - 929,148 _ 822,150 _ _ (1,641,105) - _ 96,149 _ - 666,667 - 355,467,684 _ 104,263 $ - $ 15,870,002 $ - 6,929,528 $ - 1,933,643 $ (1,641,660) $ 675,446,236 a 57 $ - $ 381,152 $ - $ - $ - $ - 13,297,426 5,866,000 - 5,866,000 - - 2,901,108 674,215 (654,555) - 482,430 - _ _ _ 729,722 - - 11,105,976 _ (489,796) _ _ 5,417,583 _ 55,913 - _ 77,150,060 (987,105) (489,796) 6,303,065 - - (1,641,660) 117,624,520 489,796 9,566,937 6,929,528 1,933,643 - 557,821,716 675,446,236 - $ 15,870,002 $ 6,929,528 $ 1,933,643 $ (1,641,660) $ a 57 Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2006 NOTE 2 - RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS - Continued A. Explanation of Differences Between the Governmental Fund Balance Sheet and the Government -wide Statement of Net Assets - Continued ASSETS Cash and cash equivalents Investments Accounts receivable - net Due from other funds Due from other governments Interest receivable Inventories Prepaid expenses Advance to other funds Special assessments receivable Liens receivable Capital assets - net Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Claims payable Retainage payable Accrued interest payable Due to other funds Due to other governments Other deposits held in escrow Unearned revenues Accrued compensated absences Capital leases Bonds payable Advance from other funds Total liabilities Fund balances/net assets Total liabilities and fund balances/net assets Total Capital Long-term Governmental Related Debt Interest Funds Items Tansactions Payable $ 287,962,655 $ - $ _ $ _ 143,132 725,528 566,696 5,063,093 9,178 10,101 106,998 1,641,105 96,149 666,667 355,363,421 $ 296,991,302 $ 355,363,421 $ - $ _ $ 12,916,274 $ 2,901,108 29,734 - - 644,481 654,555 - _ _ 482,430 729,722 11,595,772 - - 5,361,670 - - - 77,150,060 987,105 - _ - 30,296,700 - 82,511,730 644,481 266,694,602 355,363,421 (82,511,730) (644,481) $ 296,991,302 $ 355,363,421 $ - $ _ The accompanying notes are an integral part of the financial statements. 56 D Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2006 NOTE 2 - RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS - Continued A. Explanation of Differences Between the Governmental Fund Balance Sheet and the Government-wide Statement of Net Assets - Continued Accrued interest revenues Some interest revenues are not recognized in the current period because the resources are not available; therefore, these revenues are not reported in the fund. $ 1,933.643 Accrued Interest Revenues Elimination of interfund receivables/payables Interfund receivables and payables in the amount of $1,641,660 between governmental funds must be eliminated for the statement of net assets. a 55 Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2006 NOTE 2 - RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS - Continued A. Explanation of Differences Between the Governmental Fund Balance Sheet and the Government -wide Statement of Net Assets - Continued Accrued interest Accrued liabilities in the statement of net assets differs from the amount reported in governmental funds due to accrued interest on General Obligation Bonds, Series 2003, General Obligation Bonds, Series 2001, and Limited General Obligation Bonds, Series 2006. 644 481 Unearned revenues Unearned revenues in the statement of net assets differs from the amount reported in governmental funds due to special assessment and FEMA receivables. Governmental fund financial statements report revenues, which are measurable but not available as unearned revenues. However, unearned revenues in governmental funds are susceptible to full accrual on government -wide financial statements. Unearned revenues reduced 489 796 Internal service funds Internal service funds are used by management to charge the costs of fleet management, insurance activities, and GIS services to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the statement of net assets because they primarily serve governmental activities of the County. Internal Service Fund9 566 937 D Accrued grant revenues Some grant revenues are not recognized in the current period because the resources are not available; therefore, these revenues are not reported in the fund. Accrued Grant Revenues 6 929 528 11 54 U Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2006 NOTE 2 - RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS A. Explanation of Differences Between the Governmental Fund Balance Sheet and the Government -wide Statement of Net Assets "Total fund balances" of the County's governmental funds ($266,694,602) differs from "net assets" of governmental activities ($557,821,716) reported in the statement of net assets. This difference primarily results from the long-term economic focus of the statement of net assets versus the current financial resources focus of the governmental fund balance sheet. Capital related items When capital assets (property, plant, equipment) that are to be used in governmental activities are purchased or constructed, the cost of those assets are reported as expenditures in governmental funds. However, the statement of net assets included those capital assets among the assets of the County as a whole. Cost of capital assets $ 504,753,615 Accumulated depreciation (149 390,194) $ 355,363.421 Net Total Long-term debt transactions Long-term liabilities applicable to the County's governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. All liabilities (both current and long- term) are reported in the statement of net assets. Balances at September 30, 2006 were: Bonds Payable: General Obligation Bonds, Series 2001 $ (8,035,000) General Obligation Refunding Bonds, Series 2003 (4,620,000) Limited General Obligation Bonds, Series 2006 (48,600,000) Spring Training Facility Bonds, Series 2001 (14,520,000) Bond Premium Payable: Limited General Obligation Bonds, Series 2006 (1,375,060) Compensated absences (5,361,670) $ (82,511,730) Total D CI v 53 Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2006 NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued D. Assets, Liabilities, and Net Assets or Equity - Continued 14. Landfill Closure Costs Under the terms of current state and federal regulations, the Solid Waste Disposal District (SWDD) is required to place a final cover on closed landfill areas, and to perform certain monitoring and maintenance functions for a period of up to thirty years after closure. The SWDD recognizes these costs of closure and post -closure maintenance over the active life of each landfill area, based on landfill capacity used during the period. Required obligations for closure and post -closure costs are recognized in the Solid Waste Disposal District Enterprise Fund. 15. Unamortized Bond Costs Bond issuance costs and legal fees associated with the issuance of Proprietary Fund revenue bonds are amortized over the life of the bonds using the straight-line method of accounting. 16. Unamortized Bond Discounts and Premiums n Bond discounts and premiums associated with the issuance of Proprietary Fund revenue bonds are amortized according to the straight-line method. For financial reporting, unamortized bond discounts a and premiums are netted against the applicable_ long-term debt. 17. Capital Contributions D The capital contributions accounted for in the proprietary fund types represent contributions from other funds, developers, state and federal grant programs, and impact fees charged to new customers for their anticipated burden on the existing system. The contributions amount is reported after non-operating revenues and expenses on the statement of revenues, expenses, and changes in fund assets in accordance with GASB Statement 33. 1 11 52 E Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2006 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued D. Assets, Liabilities, and Net Assets or Equity - Continued 9. Capital Assets - Continued Property, plant, and equipment of the primary government, as well as the component units, are depreciated using the straight-line method over the following estimated useful lives: Assets Year Building and improvements 25-50 Machinery and equipment 3-10 a Utility distribution system 25-50 Road and bridge infrastructure 20-50 10. Capitalization of Interest Interest costs related to bond issues are capitalized during the construction period. These costs are netted against applicable interest earnings on construction fund investments. During the current period, the County did not have any capitalized interest. D11. Unearned Revenues Unearned revenues reported in government -wide financial statements would be recognized as revenue in a the fiscal year they are earned in accordance with the accrual basis of accounting. In accordance with the modified accrual basis of accounting, unearned revenues reported in governmental fund financial statements represent revenues, which are measurable but not available. 12. Accrued Compensated Absences The County accrues accumulated unpaid vacation and sick leave when earned by the employee. The current portion is the amount estimated to be used in the following year. The non-current portion is the amount estimated to be used in subsequent fiscal years. Both the current and non-current estimated- accrued stimatedaccrued compensated absences amounts for governmental funds are maintained separately and represent a reconciling item between the fund and government -wide presentations. n13. Obligation for Bond Arbitrage Rebate Pursuant to Section 148(f) of the U. S. Internal Revenue Code, the County must rebate to the United States Government the excess of interest earned from the investment of certain debt proceeds and pledged revenues over the yield rate of the applicable debt. The County uses the "revenue reduction" approach in accounting for rebatable arbitrage. This approach treats excess earnings as a reduction of revenue. The County has no arbitrage liability outstanding as of September 30, 2006. 1 E51 Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2006 NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued D. Assets, Liabilities, and Net Assets or Equity - Continued 7. Restricted Assets Certain net assets of the County are classified as restricted assets on the statement of net assets because their use is limited either by law through constitutional provisions or enabling legislation; or by restrictions imposed externally by creditors, grantors, contributors, or laws or regulations of other governments. In a fund with both restricted and unrestricted assets, qualified expenses are considered to be paid first from restricted net assets and then from unrestricted net assets. 8. Intangible Assets Leachate disposal rights were purchased by the Solid Waste Disposal District Fund from the County Utilities Fund for removal and transportation of leachate from the County landfill to the sewer system. These assets are being amortized using the straight-line method over the estimated useful life of 20 years. 9. Capital Assets Capital Assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, r right-of-ways, water and sewer distribution systems and similar items), are reported in the applicable l� governmental or business -type activities column in the government -wide financial statements. The County defines capital assets as assets with an initial, individual cost of $750 or more and an estimated useful life in excess of one year. Except for roads and bridges constructed prior to October 1, 1981, assets are recorded at historical cost. Roads and bridges constructed prior to October 1, 1981 are reported at estimated historical cost. Donated capital assets are recorded at estimated fair market value at the date of donations. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend its useful life are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business -type activities is included as part of the capitalized value of the assets constructed. The Board holds legal title to the capital assets used in the operations of the Board, Clerk of the Circuit Court, Property Appraiser, Supervisor of Elections and Tax Collector, and is accountable for them under Florida Law. The Sheriff is accountable for and thus maintains capital asset records pertaining only to equipment used in his operations. These assets have been combined with the Board's governmental activities capital assets in the statement of net assets. 11 50 a Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2006 NOTE I — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued a D. Assets, Liabilities, and Net Assets or Equity - Continued 2. Investments Investments consist of U.S. Treasury Securities, U.S. Government Agency Securities, a guaranteed investment contract, the Local Government Surplus Funds Trust Fund Investment Pool (Pool) and the Florida Local Government Investment Trust Fund (Trust). Except for the Pool and the Trust, investments are reported at their fair value based on the average price obtained from three brokers/dealers. Fair value of the Pool and the Trust are based on the fair value per share of the underlying portfolio. 3. Allowance for Doubtful Accounts The County provides an allowance for water and sewer accounts receivables that may become uncollectible. At September. 30, 2006, this allowance was $498,324. No other allowances for doubtful accounts are maintained since other accounts receivable are considered collectable as reported at September 30, 2006. 4. Receivables and Payables Activities between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as "due to/from other funds". Any residual balances outstanding between the governmental activities and business -type activities are reported in the government -wide financial statements as "internal balances". All receivables are shown net of allowance for doubtful accounts. Receivables in excess of 120 days comprise the trade accounts receivable allowance for doubtful accounts. 5. Inventories Inventories are valued at cost, which approximates market, using the "first -in, first -out" method of accounting. Inventories of governmental funds are recorded as expenditures when consumed rather than when purchased. 6. Prepaid Expenses Prepaid expenses in the governmental funds represent prepayments for services that will be used in future periods. The County's policy is to record the expenditure for the services when they are used rather than when the cash is disbursed. D49 Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2006 NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued C. Basis of Presentation - Continued 2. Proprietary Major Funds: Solid Waste Disposal District Fund — The Solid Waste Disposal District Fund accounts for the revenues, expenses, assets and liabilities associated with the County landfill. Golf Course Fund — The Golf Course Fund accounts for the revenues, expenses, assets and liabilities associated with the Golf Course. County Utilities Fund — The County Utilities Fund accounts for the revenues, expenses, assets and liabilities associated with the County water and sewer system. 3. Other Fund Types: Internal Service Funds — Internal Service Funds account for Fleet Management, Self Insurance and GIS services provided to other departments of the County on a cost reimbursement basis. il The Agency Fund - The County uses the Agency Fund to account for the collection and disbursement of monies on behalf of other governments and individuals for such purposes as cash bonds, traffic fines, child support payments and ad valorem taxes. 4. Non-current Governmental Assets/Liabilities: GASB Statement 34 requires non-current governmental assets, such as land and buildings, and non- current governmental liabilities, such as general obligation bonds and capital leases, be reported in the governmental activities column in the government -wide statement of net assets. D. Assets, Liabilities, and Net Assets or Equity 1. Cash and Cash Equivalents The County maintains a cash and investment pool that is available for use by all funds. Earnings from the pooled investments are allocated to the respective funds based on applicable cash participation by each fund. The investment pool is managed such that all participating funds have the ability to deposit and withdraw cash as if they were demand deposit accounts. Therefore, all balances representing participants' equity in the investment pools are classified as cash and cash equivalents for financial statement purposes. In addition, longer-term investments are held by several of the County's funds and are reported as investments on these statements. Cash and cash equivalents of the constitutional officers are maintained in separate accounts, but have been combined with Board's cash and cash equivalents for n financial statement purposes. I I 48 n Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2006 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued C. Basis of Presentation GASB Statement 34 sets forth minimum criteria (percentage of the assets, liabilities, revenues or expenditures/expenses of either fund category and the governmental and enterprise combined) for the determination of major funds. The County has used GASB 34 minimum criteria for major fund determination and has also electively disclosed funds that either had debt outstanding or specific community focus as major funds. The non -major funds are combined in a column in the fund financial statements and detailed in the combining section. 1. Governmental Major Funds: aGeneral Fund — The General Fund is the general operating fund of the County. It is used to account for all financial resources, except those required to be accounted for in another fund. Impact Fees Fund — The Impact Fees Fund accounts for the receipt of various impact fees. Funds are used for the construction of roads and bridges, correctional, public safety, library, park, public building, and solid waste facilities. Secondary Roads Construction Fund — The Secondary Roads Construction Fund accounts for the expenditures of road and bridge construction. Financing is provided by collections of the local option gas tax. Transportation Fund — The Transportation Fund accounts for expenditures incurred for the maintenance and repair of County roads. Financing is provided by the 5th and 6th cent gas taxes, county gas tax and transfers from the General Fund. Emergency Services District Fund — The Emergency Services District Fund accounts for the expenditures of providing fire protection and advanced life support to the entire County. Financing is provided by ad valorem taxes. Land Acquisition Fund — To account for expenditures incurred in the purchase of environmentally sensitive land, preservation of water sources, historic sites and agricultural lands. Financing is provided by bond proceeds and state grants. Federal/State Grants Fund — To account for revenues and expenditures of various grants from Federal and State agencies, including those grants designated for disaster recovery. aOptional Sales Tax Fund — The Optional Sales Tax Fund accounts for revenues generated by the local option one -cent sales tax and some capital grants that use the local option one -cent sales tax as matching funds. Monies are used for various capital projects. a47 Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2006 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued B. Measurement Focus And Basis Of Accounting - Continued 2. Fund Financial Statements - Continued Governmental Funds — Continued Non-current portions of special assessments due to governmental fu nds are reported on their balance sheets in spite of their spending measurement focus. Non-current portions of notes receivable and n advances to other funds are offset by fund balance reserve accounts. I I Because of their spending measurement focus, expenditure recognition for governmental fund types exclude amounts represented by noncurrent liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities. Amounts expended to acquire capital assets are recorded as expenditures in the year that resources were expended, rather than as fund assets. The proceeds of long-term debt are recorded as another financing source rather than as a fund liability. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Proprietary Funds The County's enterprise funds and internal service funds are proprietary funds. In the fund financial statements, proprietary funds are presented using the accrual basis of accounting. Revenues are a recognized when they are earned and expenses are recognized when the related goods or services are delivered. In the fund financial statements, proprietary funds are presented using the economic resources measurement focus. This means that all assets and all liabilities (whether current or noncurrent) a associated with their activity are included on their balance sheets. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in total net assets. The Board applies all GASB pronouncements as well as all FASB Statements and Interpretations, APB Opinions and Accounting Research Bulletins; issued after November 30, 1989, which do not conflict with or contradict GASB pronouncements. Proprietary fund operating revenues result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Non-operating revenues result from non-exchange transactions or ancillary activities. Operating expenses are costs incurred to provide services where as non-operating expenses are costs of debt financings, amortization of intangible assets and losses on the sale of assets. Amounts paid to acquire capital assets are capitalized as assets in the fund financial statements, rather LJ than reported as expenditures. Proceeds of long-term debt are recorded as a liability in the fund financial statements, rather than as another financing source. Amounts paid to reduce long-term indebtedness are reported as a reduction of the related liabilities, rather than as an expense. 46 Indian River County, Florida Notes To Financial Statements U Year Ended September 30, 2006 U NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued D B. Measurement Focus and Basis of Accounting - Continued 2. Fund Financial Statements The underlying accounting system of the County is organized and operated on the basis of separate afunds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self -balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. aFund financial statements for the primary government's governmental, proprietary, and fiduciary funds are presented after the government -wide financial statements. These statements display information about major funds individually and nonmajor funds in the aggregate for governmental and enterprise a funds. The fiduciary statement includes financial information for the agency fund. The agency fund of the County primarily represents assets held by the County in a custodial capacity for other individuals or n governments. Governmental Funds aGovernmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collected within the a current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the County considers revenues to be available if they are collected within 45 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. Franchise fees, licenses, sales taxes, gas taxes, operating and capital grants, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be D measurable only when the County receives cash. Under the current financial resources measurement focus, only current assets and current liabilities are generally included on the balance sheet. The reported fund balance is considered to be a measure of "available spendable resources". Governmental funds operating statements present increases (revenues a and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of "available spendable resources" during a period. D45 Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2006 NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued B. Measurement Focus and Basis of Accounting - Continued 1. Government -wide Financial Statements Government -wide financial statements display information about the reporting government as a whole, except for its fiduciary activities. These statements include separate columns for the governmental and a business -type activities of the primary government (including its blended component units), as well as its discreetly presented component unit. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business -type activities, which rely, to a significant extent, on fees and charges for support. Likewise, the primary government is reported separately from the legally separate component unit for which the primary government is financially n accountable. Government -wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Under the accrual basis of accounting, revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and exchange like transactions are recognized when the exchange takes place. Revenues, expenses, gains, losses, assets, and liabilities resulting from nonexchange transactions are recognized in accordance with the requirements of GASB Statement 33 — Accounting and Financial Reporting for Nonexchange Transactions. Program revenues include charges for services, special assessments, and payments made by parties outside of the reporting government's citizenry if that money is restricted to a particular program. Program revenues are netted with program expenses in the statement of activities to present the net expense of each program. Amounts paid to acquire capital assets are capitalized as assets in the government -wide financial statements, rather than reported as expenditure. Proceeds of long-term debt are recorded as liabilities in the government -wide financial statements, rather than as an other financing source. Amounts paid to reduce long-term indebtedness of the reporting government are reported as a reduction of the related liability, rather than as expenditure. As a general rule, the effect of interfund activity has been eliminated from the government -wide U financial statements. The County chooses to eliminate the indirect costs between governmental activities to avoid a "doubling up" effect. However, interfund services provided and used, such as the sale of gas 0 and diesel from Fleet Management to the government, are not eliminated in the statement of activities. s 1 44 a Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2006 NOTE 1— SUMMARY OF SIGNIFCANT ACCOUNTING POLICIES — Continued A. Reporting Entity — Continued aBlended Component Units rdinance 87-67, the of Solid Waste Disposal District (SWDD) a —a Created SWDD and sets the noon ad valorem assessment fees County Commissioners serves as the Boar for the SWDD. Although legally separate, the SWDD is appropriately blended as a proprietary fund type (enterprise) component unit into the primary government. Emergency Services District (EMS) — Created pursuant to County Ordinance 90-25, the Board of County Commissioners serves as the Board appropriately e bleS and nded as sntalfund type (special revenue) r Although legally separate, the EMS is approp ynded asagovernmental component unit into the primary government. U Discretely Presented Component Unit Indian River County Housing Authority (IRCHA) — Created pursuant to Chapter 421, Florida Statutes, a the IRCHA, whose Board is appointed by the State of Florida, provides subsidized public housing in accordance with federal legislation. The County provides the primary funding for the operations of the IRCHA, maintains budgetary control over the operating costs of the IRCHA, and provides use of certain a furniture and equipment at no charge. Appropriations from the County totaled $178,080 and the related actual operating costs totaled $168,239 for the fiscal year. Since the IRCHA is fiscally dependent on the County, it has been reported in a separate column in the government -wide financial statements to emphasize that it is legally separate from the government. The IRCHA is presented as a proprietary fund type. Separate financial statements for the Solid Waste Disposal District and the Emergency Services District are not available. Separate financial statements for the Indian River County Housing Authority are available in the administrative office located at 1028 20th Place, Vero Beach, Florida 32960. Because the component units have been reported as if they are part of the County, there are limited a instances where special note reference or separation will be required. If no separate note reference or categorization is made, the user should assume that information presented is equally applicable. B. Measurement Focus And Basis Of Accounting n The basic financial statements of the County are composed of the following: Government -wide financial statements (� • Fund financial statements �J . Notes to the financial statements 1 a43 Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2006 NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Indian River County, Florida, (the "County") is a political subdivision of the State pursuant to Article VIII, Section 1(a) of the Constitution of the State of Florida. Created on June 29, 1925 by an act of Legislature, separating it from St. Lucie County, the County encompasses approximately 497 square miles of land with an estimated population of 135,262. The County is governed by the Board of County Commissioners and five elected constitutional officers (Clerk of the Circuit Court, Property Appraiser, Sheriff, Supervisor of Elections, and Tax Collector) in accordance with state statutes and regulations. The constitutional officers maintain separate accounting records and budgets for the Board of County Commissioners. The Constitution of the State of Florida, Article VIII, Section 1(d) created the constitutional officers and Article VIII, Section 1(e), created the Board of County Commissioners. The financial statements of the County have been prepared in accordance with generally accepted accounting principles (GAAP) as applied to governmental units. The Governmental Accounting O Standards Board (GASB) is the standard-setting body for governmental accounting and financial reporting. Pronouncements of the Financial Accounting Standards Board (FASB) issued after November a 30, 1989 are not applied in the preparation of the financial statements of the enterprise funds in accordance with GASB Statement 20. The GASB periodically updates its codification of the existing Governmental Accounting and Financial Reporting Standards which, along with subsequent GASB pronouncements (Statements and Interpretations), constitutes GAAP for governmental units. A. Reporting Entity The concept underlying the definition of the reporting entity is that elected officials are accountable to their constituents for their actions. The reporting entity's financial statements should allow users to distinguish between the primary government (the County) and its component units. However, some component units, because of the closeness of their relationships with the County, should be blended as though they are part of the County. Otherwise, most component units should be discretely presented. As required by generally accepted accounting principles, the financial reporting entity consists of (1) the primary government (the County), (2) organizations for which the County is financially accountable, and (3) other organizations for which the nature and significance of their relationship with the County are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete. The County is financially accountable if it appoints a voting majority of the organization's governing body and (a) it is able to impose its will on that organization or (b) there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on, the County. The County may be financially accountable if an organization is fiscally dependent on the County regardless of whether the organization has (a) a separately elected governing board, (b) a governing board appointed by a higher level of government, or (c) a jointly appointed board. Based on these criteria, County management examined all organizations, which are legally separate in order to determine which organizations, if any, should be included in the County's financial statements. Management determined that the Solid Waste Disposal District, the Emergency Services District, and the Indian River County Housing Authority were the only organizations that should be included in the County's financial statements as component units. 42 , D a 0 Note Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2006 Page Note Page 1. Summary of Significant Accounting Policies..................................................42-52 Reporting Entity.................................42-43 Measurement Focus and Basis of Accounting ..................... 43-46 Basis of Presentation ..........................47-48 Assets, Liabilities and Net Assets or Equity .......... .. ..........................48-52 Cash and Cash Equivalents.............48 Investments.....................................49 Allowance for Doubtful Accounts ..49 Receivables and Payables ...............49 Inventories.......................................49 Prepaid Expenses ............................49 Restricted Assets .............................50 Intangible Assets .............................50 Captial Assets..................................50-51 Capitalization of Interest.................51 Unearned Revenues ........................51 Accrued Compensated Absences ....51 Obligation for Bond Arbitrage Rebate..........................................51 Landfill Closure Costs ....................52 Unamortized Bond Costs ................52 Unamortized Bond Discounts and Premiums...............................52 Captial Contributions ......................52 2. Reconciliation of Government -wide and Fund Financial Statements ..........53-61 3. Stewardship, Compliance and Accountability ........ ..........................62-63 Budget and Budgetary Accounting .62-63 4. Cash and Cash Equivalents ................... 63-66 Deposits...........................................63 Accrued Interest..............................64 Investments.....................................64-66 5. Property Tax Revenues .........................66 6. Capital Assets........................................67-68 7. Restricted Cash and Cash Equivalents and Investments.................................69 8. Payable from Restricted Assets ............69 41 9. Interfund Balances................................70 10. Interfund Transfers................................71 11. Receivable and Payable Balances .........72-73 12. Long-term Liabilities............................73-86 Business -type Activities ..................... 73-77 Recreational Revenue Refunding Bonds, Series 2003 ....................... 73-74 Water and Sewer Revenue Bonds, Series 1993A ....................74-75 Water and Sewer Revenue Bonds, Series 2005 .......................76 Annual Debt Service Payments — Business -type Activities...............77 Governmental Activities ....................77-81 Limited General Obligation Bonds.77-78 General Obligation Bonds...............78-79 Spring Training Facility Revenue Bonds...........................................79-81 Annual Debt Service Payments — Governmental Activities ..............81 Housing Authority Revenue Bonds ......82-83 Summary of Defeased Debt Outstanding........................................83 Captial Leases and Notes Payable ........84 Compensated Absences ........................84 Changes in Long-term Liabilities .........85 Conduit Debt Obligations .....................86 13. Provision for Closure Costs ..................86-87 14. Pension Plans........................................87-89 Florida Retirement System ................87-89 15. Operating Leases...................................89-90 16. Fund Equity...........................................90-91 17. Fund Equity Deficit...............................91 18. Risk Management.................................92-93 19. Commitments and Contingencies .........93-94 Litigation............................................93 Contracts and Other Commitments..................................94 Grants.................................................94 20. Subsequent Events................................94 Indian River County, Florida Statement of Fiduciary Assets and Liabilities Agency Fund September 30, 2006 ASSETS Cash and cash equivalents $ 15,346,612 Accounts receivable - net 16,074 Total assets 15,362,686 LIABILITIES Accounts payable 283,499 Due to other governments 4,668,881 Other deposits held in escrow 10,410,306 Total liabilities $ 15,362,686 The accompanying notes are an integral part of the financial statements. 40 J C Governmental Other Activities Enterprise Internal Funds Total Service Funds a$ 544,080 $ 1,351,203 $ 2,275,862 - 1,170,424 - 145,359 13,470,371 11,220 - (498,105) - 335 (398,854) (1,323,200) (5,821) - - 88,547 (1,656) (1,217) (33,081) (6,092) 982,601 _ = 11,308 _ (16,887) (821,643) a46116 896,536 229,527 (12,169) (609,332) (10,322) (609,332) - _ - (37,648) - 231,580 _ = 835,000 - 3,530 - 536,000 a 28,970 64,200 (4,189) (494,170) 16,144,047 (1,380,033) $ 49,910 $ 17,495,250 $ 895,829 $ (26,047) $ (627,643) $ (50,788) $ 258,354 $ 13,093,232 $ $ - $ 6,265 $ - $ - $ 234,889 $ _ $ - $ 2,944,661 $ 39 Indian River County, Florida Statement of Cash Flows Proprietary Funds For the Year Ended September 30, 2006 Business -type Activities Enterprise Funds Solid Waste Disposal Golf County RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY OPERATING ACTIVITIES Operating income (loss) $ 2,193,408 $ 535,212 $ (1,921,497) Adjustments to reconcile operating income to net cash provided by (used in) operating activities: Work in progress reclassified as expense Depreciation Capitalized self -incurred expenses (Increase) Decrease in assets: Accounts receivable Due from other funds Due from other governments Inventories Impact fees receivable Liens receivable Prepaid expenses Increase (Decrease) in liabilities: Accounts payable Due to other governments Other deposits held in escrow Due to other funds Retainage payable Customer deposits Closure and maintenance costs payable Unearned revenues Claims payable Accrued compensated absences Total adjustments Net cash provided by operating activities NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES 485,056 - 685,368 608,782 216,572 12,499,658 - - (498,105) 134,901 - (534,090) (5,821) 88,547 - - - (12,153) (19,711) 982,601 - - 11,308 (626) (16,261) 401,456 89,225 451,971 - 1,847 - (37,648) - - 7,728 - 223,852 835,000 - - - 1,030 2,500 25,489 7,648 2,093 2,543,490 303,543 13,791,184 $ 4,7364898 $ 838,755 $ 11,869,687 Change in fair value of investments $ (124,704) $ (1,236) $ (475,656) Contributed property, plant and equipment $ - $ - $ 12,834,878 Capital assets received from capital lease $ - $ 6,265 $ - Capital assets purchased through accounts payable $ - $ - $ 234,889 Deferred interest on refunding bonds $ - $ - $ 2,944,661 The accompanying notes are an integral part of the financial statements. 38 $ 5,039,389 $ 52,306,321 $ 13,342,194 112,993 96,849,989 - $ 5,152,382 $ 149,156,310 $ 13,342,194 Continued a37 254,077 Governmental Other (4,771,075) Activities Enterprise 651,915 Internal Funds Total Service Funds $ 4,137,671 $ 50,127,577 $ 19,456,033 (1,186,241) (18,664,452) (16,693,896) (2,901,520) (13,967,875) (1,866,308) 49,910 17,495,250 895,829 $ 5,039,389 $ 52,306,321 $ 13,342,194 112,993 96,849,989 - $ 5,152,382 $ 149,156,310 $ 13,342,194 Continued a37 254,077 (1,936,964) (5,060,846) (4,771,075) 6,398,871 651,915 3,509,855 394 13,339,257 _ - 1,104,116 135,817,053 (1,936,964) (1,550,991) (3,666,565) 149,156,310 $ 13,342,194 - (2,850,000) - - (69,451) - - (3,257,226) (333,333) - - 334,154 - (133,104) (16,025,271) (104,642) (90,485) _ (71,387) - 13,519,126 - = (160,000) 114,000 F1 (133,104) (9,003,873) 9,358 $ 5,039,389 $ 52,306,321 $ 13,342,194 112,993 96,849,989 - $ 5,152,382 $ 149,156,310 $ 13,342,194 Continued a37 254,077 6,398,871 651,915 a254,077 6,398,871 651,915 (1,766,081) 13,339,257 (2,109,463) a6,918,463 135,817,053 15,451,657 $ 5,152,382 $ 149,156,310 $ 13,342,194 $ 5,039,389 $ 52,306,321 $ 13,342,194 112,993 96,849,989 - $ 5,152,382 $ 149,156,310 $ 13,342,194 Continued a37 Indian River County, Florida Statement of Cash Flows Proprietary Funds For the Year Ended September 30, 2006 CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers Cash paid to suppliers for goods and services Cash paid to employees for services Net cash provided by operating activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers Operating grants Insurance recoveries Net cash provided by (used in) noncapital financing activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Principal payments - bonds/notes Principal payments - capital leases Interest paid on long-term debt Payment to developer for long term loan Proceeds from sales of fixed assets Purchase of capital assets Bond paying agent fees Bond issuance costs Capital contributed by others Proceeds from advance from other funds Net cash provided by (used in) capital and related financing activities CASH FLOWS FROM INVESTING ACTIVITIES Interest and dividends on investments Net cash provided by investing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year Classified as: Current assets Restricted assets Totals Business -type Activities Enterprise Funds Solid Waste Disposal Golf County District CA.—. $ 13,967,219 $ 3,307,454 $ 28,715,233 (6,512,398) (1,653,133) (9,312,680) (2,717,923) (815,566) (7,532,866) 4,736,898 838,755 11,869,687 (110,679) (44,530) (2,968,673) 3,113,864 118,722 277,269 3,003,185 74,192 (2,691,404) - (460,000) (2,390,000) - (69,451) - - (99,966) (3,157,260) - - (333,333) 16,100 213 317,841 (4,899,221) (42,996) (10,949,950) - (90,485) _ - - (71,387) - - 13,519,126 - (160,000) - (4,883,121) (922,685) (3,064,963) 1,506,691 17,703 4,620,400 1,506,691 17,703 4,620,400 4,363,653 7,965 10,733,720 25,157,107 56,155 103,685,328 $ 29,520,760 $ 64,120 $ 114,419,048 $ 16,204,122 $ 10,299 $ 31,052,511 13,316,638 53,821 83,366,537 $ 29,520,760 $ 64,120 $ 114,419,048 The accompanying notes are an integral part of the financial statements. 36 Ci I 11 Other Enterprise Funds Governmental Activities Internal Total Service Funds $ 4,746,668 $ 18,488,532 $ 20,780,889 - 31,335,486 4,746,668 49,824,018 20,780,889 2,930,490 13,533,970 1,862,119 1,126,739 21,468,474 16,631,688 145,359 13,470,371 11,220 4,202,588 48,472,815 18,505,027 72589,994 268,041,195 544,080 1,351,203 2,275,862 254,077 1,760,768 651,915 - 4,574,472 - - 1,235,413 394 - 42,554 - - (3,337,266) - - (369,795) - - (24,867) - - (2,300) - _ - 1,104,116 254,077 3,878,979 1,756,425 798,157 5,230,182 4,032,287 258,354 4,409,536 - 22,371,582 - 415,629 563,205 - (2,352,593) (5,624,051) (4,771,075) (880,453) 26,950,454 (738,788) 72589,994 268,041,195 10,305,725 $ 6,709,541 $ 294,991,649 $ 9,566,937 35 Indian River County, Florida Statement of Revenues, Expenses, and Changes in Fund Net Assets Proprietary Funds For the Year Ended September 30, 2006 Business -type Activities - Enterprise Funds Solid Waste Disposal Golf County District Course Utilities OPERATING REVENUES Charges for services Charges for services pledged as security for revenue bonds Total operating revenues OPERATING EXPENSES Personal services Material, supplies, services and other operating Depreciation Total operating expenses Operating income (loss) NONOPERATING REVENUES (EXPENSES) Interest income Interest income pledged as security for revenue bonds Operating grants Gain on disposal of equipment Interest expenses Bond amortization expense Intangible amortization expense Loss on disposal of equipment Insurance recoveries Total nonoperating revenues (expenses) Income before transfers and capital contributions Capital contributions Capital contributions pledged as security for revenue bonds Transfers in Transfers out Change in net assets Total net assets - beginning Total net assets - ending $ 13,741,864 $ - $ - - 3,306,424 28,029,062 13,741,864 3,306,424 28,029,062 4,430,823 340,012 2,743,412 823,214 7,036,854 8,196,262 1,731,426 10,414,047 608,782 216,572 12,499,658 11,548,456 2,771,212 29,950,559 2,193,408 535,212 (1,921,497) 1,506,691 - 839,699 11,571 (9,867) 17,703 118,722 (189,682) (95,113) (2,300) 2,348,094 (150,670) 4,556,769 276,992 30,983 (3,147,584) (274,682) (15,000) 1,427,478 4,541,502 384,542 (494,019) 4,151,182 - - 22,371,582 15,514 - 132,062 (126,193) (44,530) (3,100,735) 4,430,823 340,012 23,060,072 38,362,124 1,476,051 220,613,026 $ 42,792,947 $ 1,816,063 $ 243,673,098 The accompanying notes are an integral part of the financial statements. 34 t The accompanying notes are an integral part of the financial statements. 33 Indian River County, Florida Statement of Net Assets Proprietary Funds September 30, 2006 Business -type Activities - Enterprise Funds Governmental Solid Waste Other Activities Disposal Golf County Enterprise Internal District Course Utilities Funds Total Service Fund ASSETS Current assets: $ 16,204,122 $ 10,299 $ 31,052,511 $ 5,039,389 $ 52,306,321 $ 13,342,194 Cash and cash equivalents 405,081 3,177,064 77 3,582,222 1,471,457 Accounts receivable- net 87,859 fu Due from other nds 87,859 1,100,947 - 10,500 - - 1,111,447 18,378 Due from other governments 564,988 564,988 Interest receivable 51,433 843,496 35,955 930,884 111,560 Inventories _ 822,150 Prepaid expenses Current restricted assets:_ 13,316,638 53,821 83,366,537 1]2,993 96,849,989 Cash and cash equivalents 31,114,647 126,053 119,004,596 5,188,414 155,433,710 15,765,739 Total current assets Non-current assets: -3,679,739 3,311,815 - Unamortized bond costs367,924 50,149 Intangible assets - net Capital assets - non -depreciable 50,149 14,878,804 669,630 22,937,014 38,485,448 308,210,426 251,729 Capital assets - depreciable 16,566,826 8,574,112 (1,607,291) 280,594,198 (116,346,864) 2,475,290 (563,754) (127,022,525) (147,466) Capital assets - accumulated depreciation (8,504,616) Non-current restricted assets: 2291,821 2,291,821 _ Special assessments receivable , 333,333 333,333 Notes receivable - 798,521 ,521 Impact fees receivable 161,920 161,920 161 _ Liens receivable 1,001 16,261 17,887 Deposits 22,991,163 8,006,001 194,098,019 1,911,536 227,006,719 104,263 Total non-current assets 54,105,810 8,132,054 313,102,615 7;099,950 382,440,429 15,870,002 Total assets LIABILITIES Current liabilities (payable from current assets): 1,160,815 214,799 1,360,903 138,441 2,874,958 381,152 Accounts payable _ 758 758 Retainage payable - - 5,866,000 Claims payable 8,889 5;931 11,641 26,461 Due to other governments - 32,397 2,500 34,897 Unearned revenues 80,338 80,338 - Capital leases Accrued compensated absences 109,369 37,355 365,067 94,863 245,703 606,654 3,624,066 41,846 6,288,998 Total current liabilities (payable from current assets) 1,270,184 373,778 1,734,401 Current liabilities (payable from restricted assets) 1,678,189 - 1,678,189 - Accounts payable 3,173 - 245,254 248,427 Retainage payable Accrued interest payable _ 14,238 475,000 253,429 2,505,000 267,667 2,980,000 Bonds payable Closure and maintenance costs payable 9,744,598 72,571 9,744,598 3,270,770 Customer deposits Total current liabilities (payable from restricted asset: 224,928 9,972,699 - 489,238 2,973,271 7,655,143 72,571 18,189,651 Non-current liabilities: 69,980 71,428 128,858 72,135 342,401 14,067 Accrued compensated absences - 654,000 Advance from other funds - 113,000 113,448 - - 113,448 Capital leases Bonds payable - net of unamortized discount/premium 4,6]4,099 59,911,115 64,525,2]4 65,635,063 ]4,067 Total non-current liabilities 69,980 5,452,975 6,315,991 60,039,973 69,429,517 72,135 390,409 87,448,780 6,303,065 Total liabilities 11,312,863 a NET ASSETS Invested in capital assets, net of related debt 22,941,014 2,547,352 124,768,233 1,911,536 152,168,135 104,263 Restricted for: - 39;583 208,750 248,333 Debt service 88,823,634 88,823,634 Capital projects Unrestricted 19,851,933 $ 42,792,947 (770,872) $ 1,816,063 $ 29,872,481 4,798,005 53,751,547 9,462,674 $ 9,566,937 $ 294,991,649 $ 6,709,541 243,673,098 I I Total net assets t The accompanying notes are an integral part of the financial statements. 33 EA �OR 32 Indian River County, Florida Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Federal/State Grants Fund For the Year Ended September 30, 2006 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Intergovernmental $ 7,715,664 $ 12,463,402 $ 4,451,454 $ (8,011,948) - 326,509 326,509 Interest 24,837 108,500 83,663 Miscellaneous Total revenues 7,715,664 12,488,239 4,886,463 (7,601,776) EXPENDITURES Current: Public safety 1,894,194 1,370,101 906,477 463,624 Physical environment 5,605,806 4,647,294 222,329 4,424,965 Economic environment - 1,686,905 151,176 1,535,729 Human services 215,664 4,783,939 3,933,878 850,061 Total expenditures 7,715,664 12,488,239 5,213,860 7,274,379 Excess of revenues over (under) expenditure - - (327,397) (327,397) OTHER FINANCING SOURCES (USES) - - 50,667 50,667 Transfers in Total other financing sources (uses) - - 50,667 50,667 - - (276,730) $ (276,730) Net change in fund balances Fund balances at beginning of year - - (179,261) Fund balances at end of year $ - $ - $ (455,991) a 0 0 a The accompanying notes are an integral part of the financial statements. 31 Indian River County, Florida Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Land Acquisition Fund For the Year Ended September 30, 2006 n I The accompanying notes are an integral part of the financial statements. 30 U I Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Intergovernmental $ - $ 626,629 $ 902,991 $ 276,362 Interest - - 599,391 599,391 Total revenues - 626,629 1,502,382 875,753 EXPENDITURES Current: Physical environment 1,400,000 21,497,963 7,958,903 13,539,060 Debt service: Interest and fiscal charges - - 579,792 (579,792) Total expenditures 1,400,000 21,497,963 8,538,695 12,959,268 Excess of revenues over (under) expenditures (1,400,000) (20,871,334) (7,036,313) 13,835,021 OTHER FINANCING SOURCES (USES) Debt issuance - 20,000,000 49,996,735 29,996,735 Total other financing sources (uses) - 20,000,000 49,996,735 29,996,735 Net change in fund balances (1,400,000) (871,334) 42,960,422 $ 43,831,756 Fund balances at beginning of year 1,400,000 871,334 562,054 Fund balances at end of year $ - $ - $ 43,522,476 n I The accompanying notes are an integral part of the financial statements. 30 U I A C IN I H 1 Indian River County, Florida Statement of Revenues, Expenditures, and Changes in.Fund Balances - Budget and Actual Emergency Services District Fund For the Year Ended September 30, 2006 REVENUES Taxes Intergovernmental Charges for services Fines and forfeitures Interest Miscellaneous Total revenues EXPENDITURES Current: Public safety Debt service: Principal Interest and fiscal charges Total expenditures Excess of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year a 89,043 89,043 - Variance with 90,210 76,824 - Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) (5,711,949) $ 22,669,913 $ 22,669,913 $ 23,046,264 $ 376,351 11,875 176,396 186,850 10,454 2,540,280 2,620,281 3,708,250 1,087,969 - - 7,000 7,000 128,250 128,250 529,362 401,112 11,105 457,721 35,073 (422,648) 25,361,423 26,052,561 27,512,799 1,460,238 $ 10,509,532 21,819,347 31,598,643 25,581,501 6,017,142 OTHER FINANCING SOURCES (USES) Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year a 89,043 89,043 - 89,043 90,210 76,824 - 76,824 21,998,600 31,764,510 25,581,501 6,183,009 3,362,823 (5,711,949) 1,931,298 7,643,247 - - 738,100 738,100 (5002407) (513,793) (513,792) 1 (500,407) (513,793) 224,308 738,101 2,862,416 (6,225,742) 2,155,606 $ 82381,348 (2,862,416) 6,225,742 8,353,926 $ - $ - $ 10,509,532 The accompanying notes are an integral part of the financial statements. 29 Indian River County, Florida Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Transportation Fund For the Year Ended September 30, 2006 REVENUES Licenses and permits Intergovernmental Charges for services Special assessments Interest Miscellaneous Total revenues EXPENDITURES Current: General government Physical environment Transportation Total expenditures Excess of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) Transfers in Transfers to constitutional officers Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 142,500 $ 313,032 $ 315,124 $ 2,092 2,582,240 2,609,348 3,258,039 648,691 518,225 174,475 240,672 66,197 142,500 142,500 107,528 (34,972) 36,100 36,100 181,511 145,411 23,750 733,500 409,498 (324,002) 3,445,315 4,008,955 4,512,372 503,417 593,591 1,055,605 642,077 413,528 649,799 657,613 298,457 359,156 13,266,487 13,938,931 12,408,095 1,530,836 14,509,877 15,652,149 13,348,629 2,303,520 (11,064,562) (11,643,194) (8,836,257) 2,806,937 11,048,573 11,048,573 11,048,573 - - (1,000) - 1,000 11,048,573 11,047,573 11,048,573 1,000 (15,989) (595,621) 2,212,316 $ 2,807,937 15,989 595,621 3,254,027 $ - $ - $ 5,466,343 0 L 0 D , The accompanying notes are an integral part of the financial statements. 28 n � Indian River County, Florida Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Secondary Roads Construction Fund For the Year Ended September 30, 2006 REVENUES Taxes Intergovernmental Charges for services Interest Miscellaneous Total revenues EXPENDITURES Current: Transportation Total expenditures Net change in fund balances Fund balances at beginning of year Fund balances at end of year 3,812,894 25,734,755 6,066,829 19,667,926 3,812,894 25,734,755 6,066,829 19,667,926 13,017 (21,824,734) (966,767) $ 20,857,967 (13,017) 21,824,734 25,073,992 $ - $ - $ 24,107,225 The accompanying notes are an integral part of the financial statements. 27 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 3,493,411 $ 3,493,411 $ 3,526,774 $ 33,363 - 84,110 308,889 224,779 - - 117,288 117,288 332,500 332,500 912,633 580,133 - - 234;478 234,478 3,825,911 3,910,021 5,100,062 1,190,041 3,812,894 25,734,755 6,066,829 19,667,926 3,812,894 25,734,755 6,066,829 19,667,926 13,017 (21,824,734) (966,767) $ 20,857,967 (13,017) 21,824,734 25,073,992 $ - $ - $ 24,107,225 The accompanying notes are an integral part of the financial statements. 27 Indian River County, Florida Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Impact Fees Fund For the Year Ended September 30, 2006 REVENUES Intergovernmental Special assessments Interest Miscellaneous Total revenues EXPENDITURES Current: General government Transportation Total expenditures Excess of revenues over (under) expdenitures OTHER FINANCING SOURCES (USES) Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ - $ - $ 22,292 $ 22,292 19,834,047 20,834,047 24,633,680 3,799,633 148,200 148,200 3,098,966 2,950,766 - - 1,536,164 1,536,164 19,982,247 20,982,247 29,291,102 8,308,855 - 1,068,467 90,019 978,448 32,924,171 56,246,893 9,558,681 46,688,212 32,924,171 57,315,360 9,648,700 47,666,660 (12,941,924) (36,333,113) 19,642,402 55,975,515 - (350,000) - 350,000 - (350,000) - 350,000 (12,941,924) (36,683,113) 19,642,402 $ 56,325,515 12,941,924 36,683,113 65,816,015 85,458,417 The accompanying notes are an integral part of the financial statements. 26 s u Indian River County, Florida Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual General Fund For the Year Ended September 30, 2006 REVENUES Taxes Licenses and permits Intergovernmental Charges for services Fines and forfeitures Interest Miscellaneous Total revenues EXPENDITURES Current: General government Public safety Physical environment Transportation Economic environment Human services Culture/recreation Court related Debt service: Principal Interest and fiscal charges Total expenditures Excess of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) Transfers in 151,461 564,196 4,511,356 3,947,160 Transfers out (11,429,701) (12,237,189) (12,240,959) (3,770) Total other financing sources (uses) (11,278,240) (11,672,993) (7,729,603) 3,943,390 Net change in fund balances Fund balances at beginning of year Fund balances at end of year (298,067) (3,653,276) 15,148,457 $ 18,801,733 298,067 3,653,276 30,152,425 $ 45,300,882 The accompanying notes are an integral part of the financial statements. 25 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 65,473,426 $ 65,473,425 $ 69,308,542 $ 3,835,117 730,587 730,587 959,514 228,927 11,824,933 14,468,256 17,177,764 2,709,508 12,465,967 10,525,288 11,482,170 956,882 1,158,958 1,158,958 1,613,951 454,993 581,500 729,134 2,603,284 1,874,150 185,962 1,220,243 1,569,634 349,391 92,421,333 94,305,891 104,714,859 10,408,968 20,476,386 21,941,908 20,617,715 1,324,193 38,968,221 38,816,433 37,811,399 1,005,034 431,241 613,292 459,516 153,776 931,004 3,029,614 2,361,251 668,363 441,130 625,990 609,972 16,018 4,612,948 4,608,707 4,385,339 223,368 10,203,852 11,139,212 10,135,366 1,003,846 5,324,134 5,116,115 5,061,339 54,776 47,201 380,660 380,659 1 5,043 14,243 14,243 - 81,441,160 86,286,174 81,836,799 4,449,375 10,980,173 8,019,717 22,878,060 14,858,343 OTHER FINANCING SOURCES (USES) Transfers in 151,461 564,196 4,511,356 3,947,160 Transfers out (11,429,701) (12,237,189) (12,240,959) (3,770) Total other financing sources (uses) (11,278,240) (11,672,993) (7,729,603) 3,943,390 Net change in fund balances Fund balances at beginning of year Fund balances at end of year (298,067) (3,653,276) 15,148,457 $ 18,801,733 298,067 3,653,276 30,152,425 $ 45,300,882 The accompanying notes are an integral part of the financial statements. 25 Indian River County, Florida Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year Ended September 30, 2006 Net change in fund balances -total governmental funds Lj $ 70,461,726 Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlay as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense. Expenditures for capital assets 74,904,612 Less current year loss on assets (33,732) Less current year depreciation (13,111,435) 61,759,445 The issuance of debt provides current financial resources to governmental funds, but debt increases liabilities in the statement of net assets. (49,996,735) Repayments of bond principal and capital lease principal are expenditures in the governmental funds, but the repayment reduces long-term liabilities in the statement of net assets. Bond principal payment 2,235,000 Bond premium payment 21,675 Capital lease principal payment 380,275 2,636,950 Changes in accrued compensated absences do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. (413,997) Governmental funds report interest expenditures based on when they are paid. The statement of activities reports interest expense as it is incurred. This is the net number of the previous year accrual and the current year accrual. 0 Accrued bond interest expense (524,941) Some revenues reported in the governmental funds have been recognized as revenues in prior fiscal year in the statement of activities. (35,893) Internal service funds are used by management to charge the costs of insurance and fleet services to individual funds. The net costs of the internal service funds are reported with governmental activities. (738,788) Governmental funds report non-exchange transactions when the applicable eligibility requirements have been met and resources are available. However, in the statement of activities, non-exchange transactions are recognized when the eligibility requirements are met. This is the net number of prior year accrual and current year accrual. (1,214,724) a Some interest revenues reported in the statement of activities do not provide current financial resources, therefore, are not reported as revenues in governmental funds. This is the net number of prior year accrual and current year accrual. 937,590 Change in net assets of governmental activities $ 82,870,633 11 The accompanying notes are an integral part of the financial statements. a 24 LJ 738,100 - 50,667 6,387,009 Optional Other Total U Emergency Services Land Federal/State Sales Governmental Governmental - District Acquisition Grants Tax Funds Funds 48,600,000 1,396,735 $ 23,046,264 $ $ $ 15,736,078 $ 4,470,890 $ 116,088,548 1,274,638 49,996,735 186,850 902,991 4,451,454 954,787 10,998,423 38,261,489 42,960,422 (276,730) (11,609,314) - - 2,656,220 18,204,600 562,054 (179,261) 3,708,250 - 196,232,876 448,642 2,069,593 $ (455,991) $ 29,597,738 7,000 - 269,711 25,010,919 529,362 599,391 326,509 1,341,877 980,956 10,574,489 35,073 - 108,500 33,087 670,935 4,597,369 27,512,799 1,502,382 4,886,463 18,065,829 20,495,777 216,081,645 0 _ _ 482,028 21,831,839 25,581,501 906,477 1,676,493 65,975,870 _ 7,958,903 222,329 16,057 8,955,262 _ 215,557 30,610,413 _ 151,176 293,091 4,151,005 1,054,239 12,470,222 3,933,878 _ 6,245,072 16,380,438 854,388 5,915,727 _ _ 2,235,000 2,615,659 579,792 - 1,196,396 1,790,431 - - 36,062,152 1,786,323 37,848,475 25,581,501 8,538,695 5,213,860 36,062,152 19,151,410 205,448,575 1,931,298 (7,036,313) (327,397) (17,996,323) 1,344,367 10,633,070 LJ 738,100 - 50,667 6,387,009 383,652 23,119,357 - - (532,685) (13,287,436) (513,792) - 48,600,000 48,600,000 1,396,735 - - - - 1,396,735 59,828,656 224,308 49,996,735 50,667 6,387,009 (149,033) 2,155,606 42,960,422 (276,730) (11,609,314) 1,195,334 70,461,726 8,353,926 562,054 (179,261) 41,207,052 21,992,646 196,232,876 $ 10,509,532 $ 43,522,476 $ (455,991) $ 29,597,738 $ 23,187,980 $ 266,694,602 a 0 23 The accompanying notes are an integral part of the financial statements. 22 Indian River County, Florida a Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds For the Year Ended September 30, 2006 Secondary Impact Roads L I (� General Fees Construction Transportation REVENUES Taxes $ 69,308,542 $ - $ 3,526,774 $ Licenses and permits 959,514 - - 315,124 Intergovernmental 17,177,764 22,292 308,889 3,258,039 Charges for services 11,482,170 - 117,288 240,672 Fines and forfeitures 1,613,951 - - - Special assessments - 24,633,680 - 107,528 Interest 2,603,284 3,098,966 912,633 181,511 Miscellaneous 1,569,634 1,536,164 234,478 409,498 Total revenues 104,714,859 29,291,102 5,100,062 4,512,372 EXPENDITURES Current: General government 20,617,715 90,019 - 642,077 a Public safety 37,811,399 - - Physical environment 459,516 - - 298,457 Transportation 2,361,251 9,558,681 6,066,829 12,408,095 Economic environment 609,972 - - - a Human services 4,385,339 Culture/recreation 10,135,366 Court related 5,061,339 Debt service: Principal 380,659 Interest and fiscal charges 14,243 Capital projects - - - - Total expenditures 81,836,799 9,648,700 6,066,829 13,348,629 a Excess of revenues over (under) expenditures 22,878,060 19,642,402 (966,767) (8,836,257) OTHER FINANCING SOURCES (USES) a Transfers in 4,511,356 - - 11,048,573 Transfers out (12,240,959) - - - Debt issuance - - Debt premium - - - - a Total other financing sources (uses) (7,729,603) - 11,048,573 Net change in fund balances 15,148,457 19,642,402 (966,767) 2,212,316 Fund balances at beginning of 30,152,425 65,816,015 25,073,992 3,254,027 a year Fund balances at end of year $ 45,300,882 $ 85,458,417 $ 24,107,225 $ 5,466,343 r-, The accompanying notes are an integral part of the financial statements. 22 Emergency Optional Other Total u Services Land Federal/State Sales Governmental Governmental District Acquisition Grants Tax Funds Funds $ 11,055,147 $ 43,577,493 $ 10,817,686 $ 33,863,522 $ 24,966,263 $ 287,962,655 143,132 26,175 58,834 725,528 _ - 96,149 273,316 - 18,000 32,423 566,696 16,250 416,557' 1,007,418 153,793 5,063,093 _ _ - 10,101 9,178 9,178 _ _ - 666,667 _ - 10,189 25,967 500 106,998 _ - 987,105 - 1,641,105 $ 11,354,902 $ 43,577,493 $ 11,260,210 $ 35,902,220 $ 25,220,991 $ 296,991,302 $ 813,131 $ 55,017 $ 570,698 $ 4,259,904 $ 1,591,364 $ 12,916,274 141 - 22,035 2,044,578 207,789 2,901,108 105,207 137,750 654,555 3,498 482,430 32,098 11,009,625 62,876 11,595,772 _ 29,734 29,734 a 8,636 - 729,722 987,105 845,370 55,017 11,716,201 6,304,482 2,033,011 30,296,700 _ _ - 2,225,349 21225,349 28,610,633 4,931,363 34,208,663 a987,105 - 1,641,105 45,300,882 10,509,532 43,522,476 (455,991) 16,031,268 183,318,603 10,509,532 43,522,476 (455,991) 29,597,738 23,187,980 266,694,602 $ 11,354,902 $ 43,577,493 $ 11,260,210 $ 35,902,220 $ 25,220,991 Amounts reported for governmental activities in the statement of net assets are different because: Capital assets used in governmental activities are not financial resources, therefore, are not reported in the fund. 355,363,421 Long-term liabilities, including bonds payable ($77,150,060) and accrued compensated absences ($5,361,670) are not due and payable in the current (82,511,730) period and, therefore, are not reported in the funds. Accrued general long-term debt interest expenses are not financial uses and, therefore, are not reported in the fund. (644,481) D Special assessment receivables are not financial resources in the current period and, therefore, are reported as unearned revenues. 96,149 Accrued interest on special assessments is not recognized in the current n period because the resources are not available, therefore, not ILII reported in the fund. 72,211 Internal service funds are used by management to charge the costs of certain activities, such as insurance and fleet services, to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the statement of net assets. 9,566,937 Grant revenues are not recognized in current period because the resources are not available, therefore, are not reported in the fund. 7,323,175 Interest revenues are not recognized in current period because the resources not available, therefore, are not reported in the fund. 1,861,432 are Net assets of governmental activities $ 557,821,716 Indian River County, Florida Balance Sheet Governmental Funds September 30, 2006 The accompanying notes are an integral part of the financial statements. 20 Secondary Impact Roads General Fees Construction Transportation ASSETS Cash and cash equivalents $ 47,668,970 $ 86,679,736 $ 24,095,703 $ 5,238,135 Investments 143,132 - - - Accounts receivable - net 563,436 76,300 783 Special assessments receivable - - 96,149 Due from other funds 242,957 - - - Due from other governments 1,923,633 257,663 410,487 877,292 Inventories 10,101 - - - Interest receivable - - - Note receivable - 666,667 Prepaid expenses 70,342 - Advance to other funds - - 654,000 - Total assets $ 50,622,571 $ 86,937,399 $ 25,903,157 $ 6,212,359 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ 2,606,463 $ 1,052,859 $ 1,597,769 $ 369,069 Retainage payable 1,575 426,123 198,163 704 Due to other funds 411,598 - - - Due to other governments 478,932 - Unearned revenues 115,430 375,743 Interest payable - - Other deposits held in escrow 720,586 500 Advance from other funds 987,105 - - - Totalliabilities 5,321,689 1,478,982 1,795,932 746,016 Fund balances: Reserved for: Debt service - - - - Capital projects 666,667 Other purposes - 654,000 Unreserved, reported in: General fund 45,300,882 - - - Special revenue funds - 85,458,417 22,786,558 5,466,343 Total fund balances 45,300,882 85,458,417 24,107,225 5,466,343 Total liabilities and fund balances $ 50,622,571 $ 86,937,399 $ 25,903,157 $ 6,212,359 The accompanying notes are an integral part of the financial statements. 20 a Net (Expense) Revenue and 82,448,807 - Changes in Net Assets a 2,465,462 Primary Government 21,855,885 9,318,394 - Governmental Business -type Component a Activities Activities Total Unit 1,104,116 - (3,765,592) $ - $ (3,765,592) $ ul (49,574,100) 18,499,233 (49,574,100) _ (4,206,958) - (4,206,958) - 61,673 1,407,004 5,450,079 - - 1,407,004 - 5,450,079 _ 150,867,661 (9,755,761) (9,755,761) (5,060,846) (371,469) - (371,469) - 149,550,713 1,316,948 (3,547,911) - (3,547,911) _ —5,060,846 82,870,633 26,950,454 (2,315,372) 64,637 (2,315,372) 474,951,083 (66,680,080) - (66,680,080) - $ 557,821,716 $ 294,991,649 $ 852,813,365 $ 3,407,064 - 21,440,993 21,440,993 - - 3,023,240 3,023,240 - (� - 366,839 366,839 _ U802,434 802,434 - 25,633,506 25,633,506 - (66,680,080) 25,633,506 (41,046,574) - n(17,277) a82,448,807 - 82,448,807 - 2,465,462 - 2,465,462 - 21,855,885 9,318,394 - 21,855,885 9,318,394 - 13,043,670 13,043,670 1,104,116 - 1,104,116 - 12,163,993 6,335,240 18,499,233 20,241 2,089,540 42,554 2,132,094 61,673 144,489,867 6,377,794 150,867,661 81,914 (5,060,846) - - a 149,550,713 1,316,948 150,867,661 81,914 —5,060,846 82,870,633 26,950,454 109,821,087 64,637 474,951,083 268,041,195 742,992,278 3,342,427_ $ 557,821,716 $ 294,991,649 $ 852,813,365 $ 3,407,064 � n J 19 Indian River County, Florida Statement of Activities For the Year Ended September 30, 2006 Total primary government Component Unit: Housing authority $ 189,154,740 $ 93,589,628 $ 14,656,304 $ 39,862,234 $ 857,465$ 671,949 $ 168,239 $ General Revenues: Taxes: Property taxes, levied for general purposes Program Revenues Property taxes, levied for debt service Sales and use taxes Franchise fees, levied on gross receipts State shared tax revenues Operating Capital Interest earnings Miscellaneous Charges for Grants and Grants and Change in net assets Expenses Services Contributions Contributions Functions/Programs Primary Government: Governmental activities: General government $ 14,642,124 $ 10,437,774 $ 104,791 $ 333,967 Public safety 58,578,985 7,151,354 1,540,190 313,341 Physical environment 8,490,570 854,219 80,713 3,348,680 Transportation 22,011,006 16,619,853 3,976,299 2,821,858 Economic environment 1,077,731 - 5,182,982 1,344,828 Human services 12,270,899 754,916 1,753,270 6,952 Culture/Recreation 11,546,217 5,480,612 782,646 4,911,490 Court related 6,014,793 2,466,882 - - Interest and fiscal charges 2,315,372 - - - Total governmental activities 136,947,697 43,765,610 13,420,891 13,081,116 Business -type activities: Water and sewer 33,387,825 28,029,062 276,992 26,522,764 Solid waste 11,558,323 13,741,864 839,699 - Golf course 3,058,307 3,306,424 118,722 Others 4,202,588 4,746,668 - 258,354 a Total business -type activities 52,207,043 49,824,018 1,235,413 26,781,118 Total primary government Component Unit: Housing authority $ 189,154,740 $ 93,589,628 $ 14,656,304 $ 39,862,234 $ 857,465$ 671,949 $ 168,239 $ General Revenues: Taxes: Property taxes, levied for general purposes Property taxes, levied for debt service Sales and use taxes Franchise fees, levied on gross receipts State shared tax revenues Insurance recoveries Interest earnings Miscellaneous Total general revenues Transfers Total general revenues and transfers Change in net assets Net assets - beginning Net assets - ending The accompanying notes are an integral part of the financial statements. 18 e N 0 Indian River County, Florida Statement of Net Assets September 30, 2006 ASSETS Current assets: Cash and cash equivalents Investments Accounts receivable - net Internal balances Due from other governments Interest receivable Inventories Prepaid expenses Current restricted assets: Cash and cash equivalents Total current assets Non-current assets: Unamortized bond costs Intangible assets - net Capital assets - non -depreciable Capital assets - depreciable Capital assets - accumulated depreciation Non-current restricted assets: Special assessments receivable Notes receivable Impact fees receivable Liens receivable Deposits Total non-current assets Total assets LIABILITIES AND FUND BALANCES Current liabilities (payable from current assets): Accounts payable Retainage payable Claims payable Due to other governments Other deposits held in escrow Unearned revenues Accrued compensated absences Capital leases Current liabilities (payable from current restricted assets): Accounts payable Retainage payable Accrued interest payable Closure and maintenance costs payable Customer deposits Bonds payable Total current liabilities Non-current liabilities: Accrued compensated absences Capital leases Bonds payable, net of premium and discount Total long-term liabilities Total liabilities NET ASSETS Invested in capital assets, net of related debt Restricted for: Capital projects Debt service Road projects Other purposes Unrestricted Total net assets Primary Government Governmental Business -type Component Activities Activities Total Unit $ 293,144,260 $ 52,306,321 $ 345,450,581 $ 128,715 143,132 - 143,132 62,356 2,196,985 3,582,222 5,779,207 8,313 566,141 (566,141) - - 12,010,999 1,111,447 13,122,446 16,302 1,942,821 564,988 2,507,809 - 121,661 930,884 1,052,545 - 929,148 16,261 945,409 - 8,160,589 96,849,989 105,010,578 807,770 319,215,736 154,795,971 474,011,707 1,023,456 3,679,739 3,679,739 - 50,149 50,149 - 199,818,332 38,485,448 238,303,780 430,496 305,187,012 308,210,426 613,397,438 9,715,064 (149,537,660) (127,022,525) (276,560,185) (4,492,926) 96,149 2,291,821 2,387,970 666,667 333,333 1,000,000 - 798,521 798,521 161,920 161,920 - 1,626 1,626 894 356,230,500 226,990,458 583,220,958 5,653,528 675,446,236 381,786,429 1,057,232,665 6,676,984 13,327,160 2,874,958 16,202,118 18,640 - 758 758 - 5,866,000 - 5,866,000 482,430 26,461 508,891 729,722 - 729,722 11,105,976 34,897 11,140,873 - 3,107,456 606,654 3,714,110 - - 80,338 80,338 - - 1,678,189 1,678,189 - 2,901,108 248,427 3,149,535 - 644,481 267,667 912,148 42,683 9,744,598 9,744,598 - - 31270,770 3,270,770 40,197 4,615,000 2,980,000 7,595,000 378,000 42,779,333 21,813,717 64,593,050 479,520 2,310,127 342,401 2,652,528 - - 113,448 113,448 - 72,535,060 64,525,214 137,060,274 2,790,400 74,845,187 64,981,063 139,826,250 2,790,400 117,624,520 86,794,780 204,419,300 3,269,920 278,213,361 152,168,135 430,381,496 2,484,234 46,399,595 88,823,634 135,223,229 - 1,580,868 248,333 1,829,201 238,002 109,079,398 - 109,079,398 - 987,105 - 987,105 529,571 121,561,389 53,751,547 175,312,936 155,257 $ 557,821,716 $ 294,991,649 $ 852,813,365 $ 3,407,064 The accompanying notes are an integral part of the financial statements. 17 R 16 BASIC FINANCIAL STATEMENTS 1 1 11 14 Indian River County, Florida Management's Discussion and Analysis For the Year Ended September 30, 2006 Series 2006 Limited General Obligation Bonds with a par of $48.6 million were issued in order to purchase environmentally sensitive land, historic sites, and lands that preserve our water resources. The County's General Obligation and Revenue Bonds maintain a "AAA" rating from Standard & Poor's. It is the County's policy to receive two bond ratings for each issue. Standard & Poor's rating is required on all issues. A second rating from Fitch or Moody's is also required. Additional information on the County's long-term debt can be found in Note 12 on pages 73-86 of this report. Economic Factors and Next Year's Budgets and Rates The County's staff and elected officials considered many factors in developing the fiscal year 2006-2007 budget. One major factor impacting the budget process is the economic outlook for the upcoming year. Indian River County's local economy consists of construction, tourism, retail, agriculture, and light manufacturing. Construction activity has slowed down in recent months, and it is expected to have a lower level of activity in 2006-2007 than last year. Retail activity has remained steady. The tourist tax revenue decreased 9.5 percent in 2005-2006 compared to the previous year. The population grew by an estimated 5,219 residents in 2005-2006. The unemployment rate during 2005-2006 was 4.7 percent. These factors indicate an overall healthy economy throughout Indian River County. u The tax roll is increasing 25.6 percent in 2006-2007 compared to 16.9 percent last year, largely resulting from a change in the existing property value. The impact of the increased revenue more than offsets the decrease in niillage rates. State shared tax revenues are projected to increase 10.6 percent, half -cent sales tax by 15.5 percent, interest earnings by 61.6 percent. Together these increases provide the additional tax revenue to support a 5.6 percent budget increase. This budget has been formulated to continue LJ providing a high quality level of service to the residents of our growing community. u The Solid Waste Disposal District (SWDD) residential rates are reduced slightly by 0.4 percent, and the commercial assessment rates will decrease 0.8 percent for the fiscal year 2006-2007. The SWDD rate cuts were allowed by the area's growth and the department's cost cutting measures. The golf course increased its 18 -hole summer rates by $1.00 and winter rates by $2.00. All other rates and user's fees remain unchanged from fiscal year 2005-2006. Request for Information This financial report is designed to provide a general overview of the County's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to: Clerk of the Circuit Court Attention: Finance Department 1840 25`" Street Vero Beach, FL 32960 LJ 13 Indian River County, Florida Management's Discussion and Analysis For the Year Ended September 30, 2006 a Indian River County Capital Assets (Net of Depreciation, In Millions) Additional information on the County's capital assets can be found in Note 6 on page 67 of this report. Long-term debt At the end of the current fiscal year, the County had total bonded debt outstanding of $144.7 million. Of this amount, $77.2 million is debt backed by the full faith and credit of the government. The revenue bonds represent bonds secured solely by specified revenue sources. Indian River County's Outstanding Debt General Obligation and Revenue Bonds (In Millions) General Obligation Debt: General Obligation, 2001 Series General Obligation Ref., 2003 Series Limited General Oblig., 2006 Series Revenue Bonds: Spring Training Facility, 2001 Series Recreational Revenue Ref., 2003 Series Water and Sewer Ref. Rev., 1993A Series Water and Sewer Rev., 1996 Series Water and Sewer Ref. Rev., 2005 Series Total Governmental Activities 2006 2005 $ 8.0 $ 8.7 4.7 5.7 50.0 - Business -type L J Activities Total 2006 2005 2006 2005 a $ - $ - $ 8.0 $ 8.7 - - 4.7 5.7 50.0 - a' 14.5 15.0 - Governmental Business -type 15.0 Activities Activities 5.1 Total 2006 2005 2006 2005 2006 2005 Land $ 83.5 $ 74.1 $ 18.4 $ 17.0 $ 101.9 $ 91.1 Right-of-way 15.9 12.5 - - 15.9 12.5 Buildings and improvements 62.2 57.1 173.8 158.2 236.0 215.3 Equipment 28.8 26.2 7.4 6.4 36.2 32.6 Infrastructure 68.2 69.9 - - 68.2 69.9 Construction in progress 96.9 53.8 20.1 23.2 117.0 77.0 Total $ 355.5 $ 293.6 $ 219.7 $ 204.8 $ 575.2 $ 498.4 Additional information on the County's capital assets can be found in Note 6 on page 67 of this report. Long-term debt At the end of the current fiscal year, the County had total bonded debt outstanding of $144.7 million. Of this amount, $77.2 million is debt backed by the full faith and credit of the government. The revenue bonds represent bonds secured solely by specified revenue sources. Indian River County's Outstanding Debt General Obligation and Revenue Bonds (In Millions) General Obligation Debt: General Obligation, 2001 Series General Obligation Ref., 2003 Series Limited General Oblig., 2006 Series Revenue Bonds: Spring Training Facility, 2001 Series Recreational Revenue Ref., 2003 Series Water and Sewer Ref. Rev., 1993A Series Water and Sewer Rev., 1996 Series Water and Sewer Ref. Rev., 2005 Series Total Governmental Activities 2006 2005 $ 8.0 $ 8.7 4.7 5.7 50.0 - Business -type L J Activities Total 2006 2005 2006 2005 a $ - $ - $ 8.0 $ 8.7 - - 4.7 5.7 50.0 - a' 14.5 15.0 - - 14.5 15.0 - - 5.1 5.6 5.1 5.6 - - 34.2 35.3 34.2 35.3 - - - 0.9 - 0.9 - - 28.2 28.6 28.2 28.6 $ 77.2 $ 29.4 $ 67.5 $ 70.4 $ 144.7 $ 99.8 aIndian River County, Florida Management's Discussion and Analysis n For the Year Ended September 30, 2006 Actual expenditures were lower than anticipated for the following reasons: a .Hurricane expenses budgeted but not incurred. p g U • Positions budgeted but not filled. Various budgeted capital improvements expenditures were deferred until the next fiscal year. The General Fund Statement of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual is shown on page 25. a Capital Assets and Debt Administration Capital assets The County's investment in capital assets for its governmental and business -type activities as of September 30, 2006, amounts to $575.2 million (net of accumulated depreciation). This investment in capital assets includes land, right-of-way, buildings and improvements, equipment, infrastructure and construction in progress. The overall increase in the County's investment in capital assets for the current fiscal year was 15 percent (a 21 percent increase for governmental activities and a 7 percent increase for business -type activities). U Governmental activities had the following major increases during the fiscal year: An increase in buildings primarily due to the capitalization of the road and bridge/traffic complex. An increase in land primarily due to the purchase of properties for purposes of environmental conservation including the $4.8 million Russell Grove River Buffer and the $2.8 million Oslo DRiverfront. • An increase in equipment primarily due to the installation of new computers, equipment and furnishings in the new facilities management and Supervisor of Elections buildings. Business -type activities had the following major increases during the fiscal year: aa An increase in land mainly due to the purchase of several parcels of land for the expansion of the Central Regional Wastewater Treatment Plant. An increase in equipment due to the purchase of new software for the Building Department and the GIS Department. Furnishings were purchased for the new Utility Operations Center. 11 n11 Indian River County, Florida Management's Discussion and Analysis For the Year Ended September 30, 2006 Proprietary funds Unrestricted net assets in the solid waste disposal district at the end of the year amounted to $19.9 million, for the golf course ($0.8) million, and for the County utilities $29.9 million. Other factors concerning the finances of these funds have already been addressed in the discussion of the County's business -type activities. General Fund Budgetary Highlights During the year there was a $4.8 million increase in appropriations between the original and final amended budget. Following are the main components of the increase: • $2,093,610 supplemental appropriation to the Community Transportation Coordinator to provide countywide public transportation. • $807,488 supplemental appropriation of reserved funds to the new county administration building. These funds were held in reserve for this project from the sale of the old county courthouse. • $374,361 supplemental appropriation for acquisition of a new integrated public safety information system. n • $250,000 supplemental appropriation to the Tax Collector's office due to commissions and excess fees. r_1 • $329,370 supplemental appropriation to various departments for damages to facilities, equipment, and overtime resulting from the three major hurricanes that affected Indian River County in 2004 and 2005. Actual revenues exceeded budget for the following reasons: • Property tax value and revenue increased due to increased building activity and rising property values. • Actual intergovernmental revenue exceeded budgeted FEMA and state hurricane recovery grants. • Revenue sharing and half -cent sales tax exceeded projections due to population growth. • Rising interest rates resulted in increased interest earnings. • Transfers in for $3.8 million which distributed insurance proceeds to proper funds. 10 D Indian River County, Florida Management's Discussion and Analysis For the Year Ended September 30, 2006 Governmental funds aUnreserved fund balance may serve as a useful measure of the County's net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the County's governmental funds reported combined ending fund balances of $266.7 million, an increase of $70.5 million in comparison with the prior year. • The fund balance of the County's General Fund increased by $15.1 million. Key factors in this growth are as follows: (1) an increase of tax revenues of $8.4 million resulting from increased property values and increased franchise taxes, (2) an increase in interest income of $1.6 million resulting from higher interest rates, and (3) transfers in totaling $4.5 million of which $3.8 million is an allocation of hurricane related insurance proceeds. • In the Impact Fees Fund there was a $19.6 million increase driven by $24.6 million in special assessments revenue. The slowdown in construction activity is reflected by special assessments revenue not being as robust in 2006 as in 2005 when special assessments totaled $36.3 million. • The largest portion overall increase in the unreserved funds occurred in the Land Acquisition Fund, with a $43.0 million increase in fund balance. In July 2006, the County issued $46.8 million in Limited General Obligation Bonds. • The Optional Sales Tax Fund decreased by $11.6 million, with $36.1 million of expenditures in capital projects including $24.2 million for the administrative complex and $7.6 million for the jail expansion project. • Total amount of combined ending fund balances, $266.7 million, 86 percent represents n unreserved, undesignated fund balance, which is available for spending at the government's I I discretion. The remainder of fund balance is reserved to indicate that it is not available for new spending. The largest reserved amount is in the Optional Sales Tax Fund, which is reserved for capital projects in the amount of $28.6 million and also for a $.99 million loan to other funds. The Secondary Roads Construction Fund has reserved $0.67 million for capital projects and $0.65 million for advances to other funds. The General Fund is the chief operating fund of the County. At the end of the current fiscal year, unreserved, undesignated fund balance of the general fund was $45.3 million. As a measure of the general fund's liquidity, it may be useful to compare unreserved fund balance to total expenditures. Unreserved, undesignated fund balance represents 55 percent of total general fund expenditures. The impact fees fund had an $85.5 million unreserved, undesignated fund balance which represents 11 percent of total impact fee expenditures indicating future road construction. 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 Indian River County, Florida Management's Discussion and Analysis For the Year Ended September 30, 2006 Indian River County Changes in Net Assets (In Millions) U Governmental Business -type Activities Activities Total 2006 2005 2006 2005 2006 2005 Revenues: Program revenues: Charges for services $ 43.8 $ 55.5 $ 49.8 $ 50.2 $ 93.6 $ 105.7 Operating grants/contributions 13.4 16.9 1.2 8.5 14.6 25.4 Capital grants and contributions 13.1 5.5 26.8 38.1 39.9 43.6 General revenues 84.9 74.2 Property taxes 84.9 74.2 - - 21.9 21.9 a Sales taxes 21.9 21.9 - - 7.9 Franchise taxes 9.3 7.9 - - 13.0 3. 14.0 a State shared revenues 13.0 14.0 - - 3.0 21.8 12.3 Other 15.4 9.3 6.4 Total revenues 214.8 205.2 84.2 99.8 299.0 305.0 Expenses: 14.6 18.2 - - 14.6 18.2 General government 58.6 54.3 Public safety 58.6 54.3 - - 2.9 Physical environment 8.5 2.9 - - 222..77 2 Transportation 22.0 21.7 - - .0 1.1 0. Economic environment 1.1 0.7 - - 12.3 7.4 Human services 12.3 11.5 7.4 10.7 - - - 11.5 10.7 Culture/Recreation = 6.0 5.7 Court related 6.0 5.7 2.5 1.2 Interest on long-term debt 2.5 1.2 - - 30.3 33.4 30.3 Water and sewer - - - 33.4 11.5 19.2 11.5 19.2 Solid waste - 3.0 2.9 3.0 2.9 Golf course - - - 4.2 3.8 4.2 3.8 Other - 137.1 122.8 52.1 56.2 189.2 179.0 Total expenses Increase in net assets before transfers 77.7 82.4 32.1 43.6 109.8 126.0 Transfers 5.1 (0.2) (5.1) 0.2 - - Increase in net assets 82.8 82.2 27.0 43.8 109.8 126.0 Net assets - October 1, 2005 475.0 392.8 268.0 224.2 743.0 617.0 Net assets - September 30, 2006 $ 557.8 $_475.0 $ 295.0 $ 268.0 $ 852.8 $ 743.0 7 Indian River County, Florida Management's Discussion and Analysis For the Year Ended September 30, 2006 Government -wide Financial Analysis As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. In the case of the County, assets exceeded liabilities by $852.8 million at the close of the fiscal year. By far, the largest portion of the County's net assets (50 percent) reflects its investment in capital assets (e.g., land, buildings, machinery, and equipment), less any related debt used to acquire those assets that is still outstanding. The County uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the County's investment in its capital assets is reported as net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. At the end of the current fiscal year, the County is able to report positive balances in all three categories of net assets, both for the government as a whole, as well as for its separate governmental and business - type activities. The same situation held true for the prior fiscal year. The government's net assets increased by $109.8 million during the current fiscal year. This increase was the result of. (1) $31.8 million increase in net assets invested in capital assets, net of related debt resulting from the construction of roads, an administration complex, outreach administration buildings, and a major jail expansion, (2) $15.9 million increase in restricted assets resulting from impact fees projects budgeted but not completed, and (3) $62.1 million increase in the unrestricted net assets, primarily resulting from an increase in ad valorem taxes due to new construction and the rise in interest earnings. 6 Indian River County Net Assets (In Millions) Governmental Business -type Activities Activities Total 2006 2005 2006 2005 2006 2005 Current and other assets $ 319.9 $ 235.3 $ 162.1 $ 151.3 $ 482.0 $ 386.6 Capital assets 355.5 293.6 219.7 204.8 575.2 498.4 Total assets 675.4 528.9 381.8 356.1 1057.2 885.0 Long-term liabilities 76.6 30.3 65.0 68.1 141.6 98.4 Other liabilities 41.0 23.6 21.8 20.0 62.8 43.6 a Total liabilities 117.6 53.9 86.8 88.1 204.4 142.0 a Net assets: Invested in capital assets, net of related debt 278.2 264.2 152.2 134.4 430.4 398.6 Restricted 158.0 150.1 89.0 81.1 247.0 231.2 Unrestricted 121.6 60.7 53.8 52.5 175.4 113.2 O Total net assets $ 557.8 $ 475.0 $ 295.0 $ 268.0 $ 852.8 $ 743.0- A portion of the County's net assets (29.0%) represents resources that are subject to external restrictions on how they may be used. The remaining balance of the unrestricted net assets ($175.3 million) may be used to meet the government's ongoing obligations to citizens and creditors. (1 At the end of the current fiscal year, the County is able to report positive balances in all three categories of net assets, both for the government as a whole, as well as for its separate governmental and business - type activities. The same situation held true for the prior fiscal year. The government's net assets increased by $109.8 million during the current fiscal year. This increase was the result of. (1) $31.8 million increase in net assets invested in capital assets, net of related debt resulting from the construction of roads, an administration complex, outreach administration buildings, and a major jail expansion, (2) $15.9 million increase in restricted assets resulting from impact fees projects budgeted but not completed, and (3) $62.1 million increase in the unrestricted net assets, primarily resulting from an increase in ad valorem taxes due to new construction and the rise in interest earnings. 6 Indian River County, Florida Management's Discussion and Analysis For the Year Ended September 30, 2006 combined into a single, aggregated presentation. Individual fund data for each of these non -major governmental funds is provided in the form of combining statements located behind the notes to the financial statements. The combining statements referred to earlier in connection with nonmajor governmental funds and internal service funds can be found on pages 100-158 of this report. The County adopts an annual appropriated budget for its general fund. A budgetary comparison statement has been provided for the general fund to demonstrate compliance with this budget. The basic governmental fund financial statements can be found on pages 20-31 of this report. Proprietary funds The County maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business -type activities in the government -wide financial statements. The County uses enterprise funds to account for its water and sewer utility, solid waste disposal district, shooting range, golf course, and building department. Internal service funds are an accounting device used to accumulate and allocate costs internally among the County's various functions. The County uses internal service funds to account for its fleet management, self insurance, and geographic information systems. Because these services predominantly benefit governmental rather than business -type functions, they have been included within governmental activities in the government -wide financial statements. Proprietary funds provide the same type of information as the government -wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the water and sewer utility, solid waste disposal district and golf course, which are considered to be major funds of the County. Conversely, internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements behind the notes to the financial statements. The basic proprietary fund financial statements can be found on pages 33-39 of this report. O Fi rJ'.f 'ducia unds Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government -wide financial statements because the resources of those funds are not available to support the County's own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The basic fiduciary fund financial statement can be found on page 40 of this report. Notes to the financial statements The notes provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. The notes to the financial statements can be found on pages 41-94 of this report. A Indian River County, Florida Management's Discussion and Analysis For the Year Ended September 30, 2006 The statement of activities presents information showing how the government's net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned, but unused, vacation leave). n Both of the government -wide financial statements distinguish functions of the County that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business -type activities). The governmental activities of the County include general government, public safety, physical environment, transportation, economic environment, human services, and culture and recreation. The major business -type activities of the County include a water and sewer utility, a solid waste disposal district and a golf course. The government -wide financial statements include not only the Board of County Commissioners, but also the Clerk of the Circuit Court, Tax Collector, Property Appraiser, Sheriff and Supervisor of Elections. In addition, financial information is reported in a separate column for the Indian River County Housing Authority (the Authority). The Authority is not part of the primary government of Indian River County. The government -wide financial statements can be found on pages 17-19 of this report. Fund financial statements A fund is a grouping of related accounts that is used to maintain control over resources that have been Ll segregated for specific activities or objectives. The County, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. All of the funds of the County can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental funds D Governmental funds are used to account for essentially the same functions reported as governmental activities in the government -wide financial statements. However, unlike the government -wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financial requirements. Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental funds with similar �J information presented for governmental activities in the government -wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financial decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The County maintains 40 individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund, six special revenue funds, and the optional (one -cent) sales tax funds. All are considered to be major funds. Data from the other 32 governmental funds are 4 11 Indian River County, Florida Management's Discussion and Analysis For the Year Ended September 30, 2006 We offer readers of the County's financial statements this narrative overview and analysis of the financial activities of the County for the fiscal year ended September 30, 2006. We encourage readers to consider the information presented here, in conjunction with additional information that we have furnished in our letter of transmittal, which can be found on pages i -v of this report. All amounts, unless otherwise indicated, are expressed in millions of dollars. Financial Highlights • The County's overall financial position improved over 2005. • The assets of the County exceeded its liabilities at the close of the most recent fiscal year by $852.8 million (net assets). Of this amount, $175.3 million (unrestricted net assets) may be used to meet the government's ongoing obligations to citizens and creditors. • The government's total net assets increased by $109.8 million. A substantial portion of this increase is attributable to impact fees collected and unspent and capital contributions received by utilities. These increases reflect the construction boom that was taking place in the County. • As of the close of the current fiscal year, the County's governmental activities reported combined ending fund balances of $557.8 million, an increase of $82.8 million in comparison with the prior year. Of this total amount, $121.6 million is available for spending at the government's discretion (unreserved, undesignated fund balance). • At the end of the current fiscal year, unreserved, undesignated fund balance for the general fund alone was $45.3 million, or 55 percent of total general fund expenditures. • Limited General Obligation bonds were issued in the par amount of $46.8 million for the purpose of acquiring environmentally sensitive land, historic sites, and lands to protect water resources. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the County's basic financial statements. The County's basic financial statements are composed of three elements: 1) government - wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government -wide financial statements The government -wide financial statements are designed to provide readers with a broad overview of the County's finances, in a manner similar to a private -sector business. The statement of net assets presents information on all of the County's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the County is improving or deteriorating. 3 Harris, Cotherman, Jones, Price & Associates (: rrslcd Public A •cuu mmnt, • C;hanerrd The Honorable County Commissioners and Constitutional Officers Indian River County, Florida Page two The Management's Discussion and Analysis and required supplementary information, as listed in the table of contents, are not a required part of the basic financial statements but are supplementary information required by the Governmental Accounting Standards Board, We have applied certain limited procedures which consisted principally of inquiries of management regarding the methods of measurement and presentation of the supplementary information; however, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying information identified in the table of contents as combining and individual fund statements and schedules is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements n taken as a whole. I I The information identified in the table of contents as the Introductory and Statistical Sections is presented for purposes of additional analysis and is not a required part of the basic financial statements of Indian River County, Florida. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we express no opinion on them. •f�.�.i.PrLtc�i QL��.vu�f�x�d. - G'Iau.Q/Lcto� Vero Beach, Florida February 9, 2007 11 Farris, Cotherman, Jones, Price & Associates Certified Public Accountants - Chartered 5070 Borth Highway Al A, Suite 250 Vero Beach, FL 32963 Tel 772.234.8484 Fax 772.234.8488 Independent Auditors' Report The Honorable County Commissioners and Constitutional Officers Indian River County, Florida We have audited the accompanying financial statements of governmental activities, the business - type activities, each major fund and the aggregate remaining fund information of the Indian River County, Florida (the "County") as of and for the year ended September 30, 2006, which collectively comprise the County's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the County's management. Our responsibility is to express opinions on these financial statements based on our audit. OWe conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and the significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of governmental activities, the business -type activities, each major fund and the aggregate remaining fund information of the County as of September 30, 2006, and the respective changes in financial position and cash flows, where applicable, thereof for the year ended in conformity with accounting principles generally accepted in the United States of America. Li In accordance with Government Auditing Standards, we have also issued a report dated February 4, 2007 on our consideration of the County's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of the report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. "Providing Vision and Direction to our Clients" Member F[CPA Member AICPA Member AICPA Division For CPA F— Private Companies Practice Section O Statistical Section This part of the Indian River County Comprehensive Annual Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures and required supplementary information says about the County's overall financial health. Contents Financial Trends (Schedules 1 - 5) These schedules contain trend information to help the reader understand how the County's financial performance and well-being have changed over time. Revenue Capacity (Schedules 6 — 9) These schedules contain information to help the reader assess the County's most significant local revenue source, the property tax. Debt Capacity (Schedules 10 —16) These schedules present information to help the reader assess the affordability of n the County's ability to issue additional debt in the future. Demographic and Economic Information (Schedules 17 —18) These schedules contain service and infrastructure data to help the reader understand how the information in the County's financial report relates to the services the County provides and the activities it performs. Page(s) 166-176 177-181 182-191 192-193 Operating Information (Schedules 19 — 22) 194-205 These schedules contain service and infrastructure data to help the reader understand how the information in the County's financial report relates to the services the County provides and the activities it performs. Additional Bond Disclosures (Schedules 23 — 28) These schedules provide information for required continuing disclosure for the water and sewer, golf course and spring training bonds. Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. The County implemented GASB Statement 34 in 2001; schedules presenting government - wide information include information beginning in that year. 165 206-212 n Indian River County, Florida Net Assets by Component Last Six Fiscal Years (accrual basis of accounting) 2001 2002 2003 Governmental activities Invested in capital assets, net of related debt Restricted Unrestricted Total governmental activities net assets Business -type activities Invested in capital assets, net of related debt Restricted Unrestricted Total business -type activities net assets Primary government Invested in capital assets, net of related debt Restricted Unrestricted Total primary government net assets $ 214,622,489 $ 225,179,898 $ 227,795,289 100,742,230 113,252,580 112,083,712 17,953,280 17,559,989 20,389,245 $ 333,317,999 $ 355,992,467 $ 360,268,246 $ 97,701,866 $ 106,004,641 $ 113,354,198 26,758,894 31,179,151 42,971,494 43,816,852 45,137,431 47,079,296 $ 168,277,612 $ 182,321,223 $ 203,404,988 $ 312,324,355 $ 331,184,539 $ 341,149,487 127,501,124 144,431,731 155,055,206 61,770,132 62,697,420 67,468,541 $ 501,595,611 $ 538,313,690 $ 563,673,234 (A) Limited General Obligation Bonds issued for $48,600,000. (B) Utility developer contributions and customer base significantly increased due to population growth. 166 Schedule 1 2004 2005 2006 $ 242,057,257 $ 264,193,976 $ 278,213,361 128,024,220 150,019,583 158,046,966 22,697,741 60,737,524 121,561,389 (A) $ 392,779,218 $ 474,951,083 $ 557,821,716 $ 122,280,348 $ 134,402,945 $ 152,168,135 (B) 57,825,011 81,084,337 89,071,967 44,084,834 52,553,913 53,751,547 $ 224,190,193 $ 268,041,195 $ 294,991,649 $ 364,337,605 $ 398,596,921 $ 430,381,496 185,849,231 231,103,920 247,118,933 66,782,575 113,291,437 175,312,936 $ 616,969,411 $ 742,992,278 $ 852,813,365 167 Indian River County, Florida Changes in Net Assets Last Six Fiscal Years (accrual basis of accounting) Expenses Governmental activities: General government Public safety Physical environment Transportation Economic development Human service Cultural/Recreation Court related Interest on long-term debt Total governmental activities expenses Business -type activities: Water and sewer Solid waste Golf course Other Total business -type activities expenses Total primary government expenses Program Revenues Governmental activities: Charges for services: General government Public safety Physical environment Transportation Human service Cultural/Recreation Court related Operating grants and contributions Capital grants and contributions Total governmental activities program revenues Business -type activities: Charges for services: Water and sewer Solid waste Golf course Other Operating grants and contributions Capital grants and contribution Total business -type activities program revenues Total primary government program revenues 2001 13,756,310 $ 42,896,286 2,145,214 13,525,659 1,358,025 4,612,841 10,631,008 5,151,347 587,004 94,663,694 2002 2003 17,942,122 $ 45,186,455 1,648,446 14,878,771 357,911 5,975,775 8,157,505 5,472,095 1,710,405 101,329,485 20,323,241 46,409,761 791,383 16,264,468 587,227 6,165,603 8,711,251 6,144,728 1,549,957 106,947,619 22,459,042 23,240,123 25,015,125 8,245,056 8,043,106 8,589,141 2,894,314 2,777,519 2,842,907 1,409,610 1,882,038 2,033,754 35,008,022 35,942,786 38,480,927 $ 129,671,716 $ 137,272,271 $ 145,428,546 6,357,015 $ 3,626,767 97,687 3,893,294 69,594 1,094,588 901,485 5,122,151 3,756,327 24,918,908 5,349,797 $ 4,120,093 64,314 4,476,914 186,290 473,043 1,515,840 5,425,369 4,818,626 26,430,286 6,513,557 4,288,357 29,260 5,584,999 302,998 776,829 1,458,688 5,175,499 19,908,254 (A) 44,038,441 18,917,518 19,962,496 21,210,935 9,628,155 9,897,222 10,187,432 3,033,997 2,897,502 3,112,087 1,673,916 2,009,737 2,432,420 111,252 - 271,662 9,973,352 11,256,039 19,796,906 (B) 43,338,190 46,022,996 57,011,442 $ 68,257,098 $ 72,453,282 $ 101,049,883 168 0 0 Continued 169 Schedule 2 Notes: (A) County received grants for the purchase of environmentally sensitive lands and beach erosion; recorded as capital assets (B) Contributions for water and sewer services by developers due to significant increase in County population (C) Increase in revenue and related expenses due to hurricanes Frances and Jeanne in 2004; and hurricane Wilma in 2005. (D) Impact fees increased with building boom (E) Environmentally sensitive lands purchased with bond proceeds. (F) Significant increase in SHIP programs due to population growth and building boom in 2005. (G) Issued new Limited G.O.B. debt for $48,600,000. 2004 2005 2006 $ 23,287,533 (C) $ 18,165,441 $ 14,642,124 54,052,726 (C) 54,271,542 58,578,985 1,039,550 21,335,262 (C) 2,850,738 21,726,741 8,490,570 22,011,006 (E) 639,826 696,448 1,077,731 7,664,422 (C) 7,385,726 12,270,899 (F) 9,616,323 (C) 10,775,291 11,546,217 6,221,983 5,704,361 6,014,793 1,313,340 1,246,237 2,315,372 (G) 125,170,965 122,822,525 136,947,697 26,907,959 30,260,577 33,387,825 14,103,641 (C) 19,156,896 (C) 11,558,323 2,806,115 2,939,321 3,058,307 2,532,617 3,768,301 4,202,588 46,350,332 $ 171,521,297 $ 56,125,095 52,207,043 189,154,740 178,947,620 $ $ 7,593,486 $ 8,779,557 $ 10,437,774 3,927,664 4,712,594 7,151,354 92,354 631,456 854,219 11,182,015 37,384,003 (D) 16,619,853 604,379 821,811 754,916 813,827 800,555 5,480,612 1,449,771 2,294,908 2,466,882 9,270,478 16,310,024 (C) , 13,420,891 11,784,511 (C) 6,069,586 13,081,116 46,718,485 77,804,494 70,267,617 22,984,883 25,579,512 28,029,062 11,160,368 16,874,618 13,741,864 3,099,287 3,247,815 3,306,424 3,202,380 4,535,869 4,746,668 5,760,512 8,518,757 1,235,413 19,138,278 (B) 38,112,182 (B) 26,781,118 (B) 65,345,708 96,868,753 77,840,549 $ 112,064,193 $ 174,673,247 $ 148,108,166 Continued 169 Schedule 2 Notes: (A) County received grants for the purchase of environmentally sensitive lands and beach erosion; recorded as capital assets (B) Contributions for water and sewer services by developers due to significant increase in County population (C) Increase in revenue and related expenses due to hurricanes Frances and Jeanne in 2004; and hurricane Wilma in 2005. (D) Impact fees increased with building boom (E) Environmentally sensitive lands purchased with bond proceeds. (F) Significant increase in SHIP programs due to population growth and building boom in 2005. (G) Issued new Limited G.O.B. debt for $48,600,000. (H) Hurricanes Frances and Jeanne FEMA reimbursements had not yet been received. (I) Growth in water and sewer services due to expansion of County population (J) Taxable values increased by $2 billion. (K) Transfers for proportionate share of new county administration building. 170 a Iver County, Florida Indian R ty, Changes in Net Assets Last Six Fiscal Years (accrual basis of accounting) 2001 2002 2003 Net (Expense)/Revenue $ Governmental activities $ (69,744,826) $ (74,899,199) (62,909,178) Business -type activities 8,330,168 10,080,210 18,530,515 (I) Total primary government net expense $ (61,414,658) $ (64,818,989) $ (44,378,663) General Revenue and Other Changes in Net Assets Governmental activities: Property taxes, levied for general purposes $ 50,825,605 $ 55,407,180 $ 60,139,514 Property taxes, levied for debt service 1,570,336 1,581,362 2,595,265 Sales and use taxes 15,620,653 16,983,678 17,162,979 a Franchise fees 6,255,747 5,797,407 6,222,326 State shared revenues 12,228,528 12,914,452 10,605,656 Insurance recoveries - - - Interest earnings 10,637,239 5,189,432 2,787,928 Miscellaneous 697,932 1,103,457 1,761,754 Transfers (240,665) (1,403,301) (157,870) Total governmental activities 97,595,375 97,573,667 101,117,552 Business -type activities: 2,332,013 Interest earnings 6,2 93,439 3,790,253 Miscellaneous 85,496 15,100 63,367 Transfers 117,130 158,048 157,870 Total business -type activities 6,496,065 3,963,401 2,553,250 Total primary government $ 104,091,440 $ 101,537,068 $ 103,670,802 Change in Net Assets Governmental activities $ 27,850,549 $ 22,674,468 $ 38,208,374 Business -type activities 14,826,233 14,043,611 21,083,765 Total primary government change in net assets $ 42,676,782 $ 36,718,079 $ 59,292,139 I I (H) Hurricanes Frances and Jeanne FEMA reimbursements had not yet been received. (I) Growth in water and sewer services due to expansion of County population (J) Taxable values increased by $2 billion. (K) Transfers for proportionate share of new county administration building. 170 a 2004 2005 Schedule 2 2006 $ (78,452,480) (I) $ (45,018,031) $ (66,680,080) 18,995,376 (I) 40,743,658 (I) 25,633,506 $ (59,457,104) $ (4,274,373) $ (41,046,574) $ 67,701,525 2,427,908 18,825,771 6,720,166 11,608,557 2,536,347 1,336,789 (193,611) 110,963,452 1,590,203 6,015 193,611 1,789,829 $ 112,753,281 $ 71,698,850 $ 2,480,497 21,892,558 7,941,020 14,022,896 3,666,960 4,444,772 1,235,708 (193,365) 127,189, 896 82,448,807 (J) 2,465,462 21,855,885 9,318,394 13,043,670 1,104,116 12,163,993 2,089,540 5,060,846 (K) 149,550,713 2,861,308 6,335,240 52,671 42,554 193,365 (5,060,846) (K) 3,107,344 1,316,948 $ 130,297,240 $ 150,867,661 $ 32,510,972 $ 82,171,865 $ 82,870,633 20,785,205 43,851,002 26,950,454 $ 53,296,177 $ 126,022,867 $ 109,821,087 171 General Fund Reserved Unreserved Total general fund All other governmental funds Reserved Unreserved, reported in: Special revenue funds Debt service funds Capital projects funds Trust funds (A) (B) Total all other governmental funds Total governmental funds Indian River County, Florida Fund Balances, Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) 1997 1998 1999 2000 $ 34,154 $ 34,154 $ 34,154 $ - 14,310,165 16,465,867 17,509,428 16,785,009 $ 14,344,319 $ 16,500,021 $ 17,543,582 $ 16,785,009 $ 15,894,491 $ 21,661,688 $ 29,515,156 $ 32,004,421 36,871,452 38,148,520 39,174,856 46,426,470 - (7,847) (5,404) (73,536) _ - - 337,915 272,989 3,555,156 428,687 452,492 $ 53,038,932 $ 63,357,517 $ 69,113,295 $ 79,147,762 $ 67,383,251 $ 79,857,538 $ 86,656,877 $ 95,932,771 (A) Inmate Welfare Trust Fund became a special revenue fund in FY 2001 with the implementation of GASB 34. (B) Deferred Compensation Trust Fund totaling $3,259,708 in FY 1998 was subsequently classified as an agency. 172 Schedule 3 2001 2002 2003 2004 2005 2006 166,080,451 $ 221,393,720 $ 123,101,811 $ 134,137,677 $ 130,088,531 $ 142,425,949 $ 196,232,876 17,481,844 18,244,725 20,104,115 20,623,340 30,152,425 45,300,882 $ 17,481,844 $ 18,244,725 $ 20,104,115 $ 20,623,340 $ 30,152,425 $ 45,300,882 $ 49,037,252 $ 40,013,059 $ 40,667,031 $ 47,458,489 $ 50,257,972 $ 38,075,117 56,582,715 75,879,893 69,317,385 74,344,120 115,822,479 183,318,603 $ 105,619,967 $ 115,892,952 $ 109,984,416 $ 121,802,609 $ 166,080,451 $ 221,393,720 $ 123,101,811 $ 134,137,677 $ 130,088,531 $ 142,425,949 $ 196,232,876 $ 266,694,602 173 Indian River County, Florida Changes in Fund Balances, Governmental Funds Last Ten Fiscal Years a (modified accrual basis of accounting) Other Financing Sources (Uses) Debt issuance Payments to escrow agent - - - Payments from capital leases 729,854 157,626 1,310,055 78,516 Transfers out (102,796) (107,326) (120,668) (118,275) Transfers in Total other financing sources (uses) 627,058 50,300 1,189,387 (39,759) Net changes in fund balance $ (2,186,428) $ 9,595,960 $ 10,059,047 $ 9,170,377 Debt service as a percentage of noncapital expenditures 7.1% * 3.1% * 3.1% * 7.2% * Not possible to determine capital expenditures in functional expenditure categories. D 174 a 1997 1998 1999 2000 LJ Revenue Taxes $ 58,955,069 $ 61,740,699 $ 64,470,143 $ 69,537,158 Licenses and permits 403,849 327,978 480,408 520,813 Intergovernmental 13,329,351 16,392,327 16,431,926 18,908,166 Charges and services 9,295,204 9,316,954 10,125,675 9,659,007 Fines and forfeitures 1,026,303 1,286,672 1,164,084 1,332,950 Special assessments 3,045,913 2,549,184 3,288,159 3,483,557 Interest 3,812,323 5,130,526 4,297,530 6,562,067 Miscellaneous 1,779,362 1,470,974 2,126,436 1,292,825 Total Revenue 91,647,374 98,215,314 102,384,361 111,296,543 Expenditures Current: General government 16,055,730 13,245,171 13,261,058 14,069,358 Public safety 35,000,454 36,758,303 39,399,375 39,734,506 Physical environment 8,700,803 3,084,834 1,170,707 4,780,305 Transportation 10,570,818 14,229,923 18,067,215 12,663,766 Economic environment 266,849 281,879 278,191 259,354 O Human service 4,972,494 3,989,075 5,048,135 4,928,117 Cultural/Recreation 5,671,461 6,137,785 6,578,053 7,326,459 Court related - 3,866,441 4,375,340 4,565,674 Debt service: Principal 4,908,252 1,632,543 1,913,762 5,305,502 Interest and fiscal charges 1,271,178 956,288 906,665 890,236 Capital outlay 7,042,821 4,487,412 2,516,200 7,563,130 Total Expenditures 94,460,860 88,669,654 93,514,701 102,086,407 Excess of revenues over (under) expenditures (2,813,486) 9,545,660 8,869,660 9,210,136 Other Financing Sources (Uses) Debt issuance Payments to escrow agent - - - Payments from capital leases 729,854 157,626 1,310,055 78,516 Transfers out (102,796) (107,326) (120,668) (118,275) Transfers in Total other financing sources (uses) 627,058 50,300 1,189,387 (39,759) Net changes in fund balance $ (2,186,428) $ 9,595,960 $ 10,059,047 $ 9,170,377 Debt service as a percentage of noncapital expenditures 7.1% * 3.1% * 3.1% * 7.2% * Not possible to determine capital expenditures in functional expenditure categories. D 174 a Schedule 4 O2001 2002 2003 2004 2005 2006 14,834,937 $ 73,553,625 $ 80,488,343 $ 86,120,084 $ 95,675,370 $ 104,012,925 $ 116,088,548 45,352,323 493,585 515,653 567,403 1,033,394 1,354,282 1,274,638 17,613,489 18,764,102 20,802,982 35,213,140 26,588,303 35,973,818 38,261,489 15,779,577 11,037,594 11,368,399 13,683,108 14,282,587 18,151,546 18,204,600 IL JI 1,251,098 1,421,542 1,584,737 1,508,786 1,715,875 2,069,593 12,239,467 3,799,994 4,230,519 4,932,130 10,754,774 36,688,964 25,010,919 9,333,122 5,007,150 2,999,915 1,999,574 4,083,164 10,574,489 a 1,594,863 2,362,780 1,964,177 1,791,613 1,398,166 4,597,369 - 119,827,983 126,197,368 147,064,694 153,634,401 203,378,740 216,081,645 14,834,937 16,979,694 18,446,787 19,996,339 20,107,020 21,831,839 42,872,181 45,352,323 47,565,048 55,792,130 57,045,359 65,975,870 1,312,972 1,473,749 17,613,489 1,751,551 2,989,117 8,955,262 11,801,892 16,686,374 19,442,909 21,928,790 21,285,597 30,610,413 1,351,831 347,096 583,850 627,914 713,019 1,054,239 4,317,086 5,756,579 6,178,917 7,185,411 7,270,391 12,470,222 a 8,781,914 9,117,900 18,378,068 13,179,751 15,062,134 16,380,438 5,323,388 5,802,798 5,998,260 6,210,614 5,630,734 5,915,727 i 1 175 1,255,352 2,229,201 2,881,492 2,394,142 2,239,663 2,615,659 604,358 1,621,178 1,639,145 1,333,392 1,255,837 1,790,431 17,075,909 20,767,383 12,228,005 10,994,900 15,779,577 37,848,475 109,531,820 126,134,275 150,955,970 141,394,934 149,378,448 205,448,575 10,296,163 63,093 (3,891,276) 12,239,467 54,000,292 10,633,070 O 16,952,777 11,000,000 7,800,000 - - 49,996,735 - - (7,800,000) - - 160,765 275,000 291,562 = - (240,665) (302,227) (157,870) (193,611) (193,365) (236,067) - - - - - 10,067,988 16,872,877 10,972,773 (157,870) 97,951 (193,365) 59,828,656 D$ 27,169,040 $ 11,035,866 $ (4,049,146) $ 12,337,418 $ 53,806,927 $ 70,461,726 2.2% 4.1% 4.4% 3.2% 2.9% 3.3% i 1 175 Indian River County, Florida Tax Revenues by Source, Governmental Funds Last Ten Fiscal Years (A) The County's primary source of revenue is property taxes, amounting to 73 percent of Governmental Fund tax revenues in 2006. Consequently, supplemental required schedules are provided only for property tax revenues. 176 (modified accrual basis of accounting) Schedule5, Fiscal Year Property (A) Sales & Use Tourist Franchise Gasoline Other Total 1997 $ 42,629,759 $ 8,109,003 $ 982,022 $ 4,488,437 $ 2,745,848 $ - $ 58,955,069 1998 43,631,196 9,061,297 1,000,084 5,363,354 2,684,768 - 61,740,699 1999 45,117,451 9,849,114 1,058,843 5,544,164 2,900,571 - 64,470,143 2000 49,233,150 10,546,759 1,114,916 5,615,427 3,026,906 - 69,537,158 2001 52,395,941 11,142,006 1,408,046 6,255,747 2,351,885 - 73,553,625 2002 56,988,542 11,399,491 1,410,409 5,797,407 3,967,345 925,149 80,488,343 2003 62,734,779 11,678,272 1,286,885 6,222,326 3,222,742 975,080 86,120,084 2004 70,129,433 12,850,023 1,443,271 6,720,166 3,497,894 1,034,583 95,675,370 2005 74,179,347 15,582,689 1,675,781 7,941,020 3,573,036 1,061,052 104,012,925 2006 84,914,269 15,736,078 1,517,360 9,318,394 3,526,774 1,075,673 .116,088,548 (A) The County's primary source of revenue is property taxes, amounting to 73 percent of Governmental Fund tax revenues in 2006. Consequently, supplemental required schedules are provided only for property tax revenues. 176 Indian River County, Florida Assessed Value and Actual Value of Taxable Property Last Ten Fiscal Years Schedule 6 177 Total Direct Tax Rate 5.9224 5.8080 5.7369 5.5487 5.5408 5.5234 5.4713 5.5181 5.1563 4.9173 Real Personal Less: Total Taxable Fiscal Property Property Total Tax -Exempt Assessed Year Actual Value Actual Value Actual Value Property Value 1997 $ 7,589,071,741 $ 554,667,039 $ 8,143,738,780 $ 2,202,873,963 $ 5,940,864,817 1998 7,807,203,863 622,046,910 8,429,250,773 2,269,305,899 6,159,944,874 1999 8,080,247,333 652,698,708 8,732,946,041 2,312,730,608 6,420,215,433 2000 8,670,864,496 764,851,686 9,435,716,182 2,440,619,325 6,995,096,857 2001 9,109,672,314 725,390,231 9,835,062,545 2,394,165,810 7,440,896,735 2002 10,539,705,283 707,941,621 11,247,646,904 2,706,441,764 8,541,205,140 2003 11,985,128,952 694,305,280 12,679,434,232 3,178,543,019 9,500,891,213 2004 13,547,372,018 693,374,322 14,240,746,340 3,556,717,407 10,684,028,933 2005 15,716,463,269 699,716,008 16,416,179,277 4,236,183,618 12,179,995,659 2006 19,265,033,998 712,011,582 19,977,045,580 5,734,060,645 14,242,984,935 Source: Indian River County Property Appraiser; values are established as of January 1 of the previous calendar year, i.e., January 1, 2005 taxable values apply to the fiscal year ending in 2006. This is a restatement of the prior year's schedule. Total taxable values are also presented on schedules 8 and 11. 177 Total Direct Tax Rate 5.9224 5.8080 5.7369 5.5487 5.5408 5.5234 5.4713 5.5181 5.1563 4.9173 Indian River County, Florida Property Tax Rates Direct and Overlapping Tax Rates Last Ten Fiscal Years 1997 1998 1999 2000 County direct rate General fund 4.2999 4.2783 4.2210 4.0855 Municipal service 1.6236 1.5297 1.5159 1.4632 Total direct rate (A) 5.9235 5.8080 5.7369 5.5487 County -wide district school board rate 10.3190 10.1400 10.1500 9.6140 a Other County=wide rates Emergency Management Services District 2.3129 2.2259 2.3360 2.4553 Land acquisition bond 0.2897 0.2710 0.2587 0.2396 a Total other County -wide rate 2.6026 2.4969 2.5947 2.6949 a Total County -wide rate 18.8451 18.4449 18.4816 17.8576 City rates Fellsmere 5.9000 5.7507 5.7507 5.7500 Indian River Shores 1.3771 1.4760 1.4480 1.3890 Sebastian 6.9000 6.9000 6.5000 5.0000 Orchid 2.7979 2.5921 2.5635 2.1998 Vero Beach 2.2645 2.21.90 2.1425 2.1425 Average of cities rates 3.8479 3.7876 3.6809 3.2963 O Other special district rates 1.7022 1.5185 1.7364 1.6290 a 0 (A) Per Florida State Statute 200.071, no ad valorem tax millage shall be levied against real property and tangible personal property by counties in excess of 10 mills, except for voted levies. Source: Indian River County Property Appraiser 178 O Schedule 7 2001 2002 2003 2004 2005 2006 D4.1014 4.0501 3.8729 3.8377 3.6233 3.5204 1.4394 1.4733 1.5984 1.6804 1.5330 1.3969 5.5408 5.5234 5.4713 5.5181 5.1563 4.9173 9.5570 9.0820 8.7320 8.7100 8.4990 8.2400 2.4913 2.3660 2.2750 2.1871 1.9836 1.9911 0.2165 0.1947 0.2839 0.2344 0.2106 0.1789 2.7078 2.5607 2.5589 2.4215 2.1942 2.1700 17.8056 17.1661 16.7622 16.6496 15.8495 15.3273 0 5.7500 5.7500 5.7500 5.7500 5.7500 5.7500 1.4280 1.4284 1.4370 1.4730 1.4730 1.4730 5.0000 4.5904 4.5904 4.5904 4.5904 3.9325 1.6793 1.3430 0.9354 0.8954 0.7508 0.6900 2.1425 2.1425 2.1425 2.1425 2.1425 2.2925 3.2000 3.0509 2.9711 2.9703 2.9413 2.8276 O1.6290 1.6105 1.9008 2.1548 1.8923 1.6082 a 0 0 a 0 a O179 Indian River County, Florida Principal Property Taxpayers Source: Indian River County Property Appraiser 180 Year 2006 and Year 1997 Schedule 8 2006 1997 Real Percentages Real Percentages Property of Total Property of Total Assessed Assessed Assessed Assessed Taxpayer Valuation Rank Valuation Valuation Rank Valuation Disney Vacation Development, Inc. $ 86,931,558 1 0.61% $ 61,846,629 1 1.04% Florida Power & Light 83,146,300 2 0.58% 43,996,733 3 0.74% BellSouth Communications 60,663,012 3 0.43% 57,700,000 2 0.97% I.R. Mall Association, Ltd. 56,938,710 4 0.40% - - John's Island Club, Inc. 40,002,227 5 0.28% 27,329,903 7 0.46% Windsor Properties 39,820,277 6 0.28% 32,289,052 6 0.54% Adult Communities Total Services 32,836,850 7 0.23% 34,665,881 5 0.58% The New Piper Aircraft 30,705,574 8 0.22% 18,800,020 10 0.32% Wal-Mart Stores, Inc. 28,541,120 9 0.20% 24,025,153 8 0.40% Fellsmere Joint Venture 25,388,284 10 0.18% 43,653,003 4 0.73% Orchid Island Properties - - 20,550,627 9 0.35% Total Principal Property Taxpayers Real Property Assessed Valuation $ 484,973,912 3.41% $ 364,857,001 6.13% Total County Taxable Valuation $ 14,242,984,935 $ 5,940,864,817 (from schedule 6) Source: Indian River County Property Appraiser 180 Indian River County, Florida Property Tax Levies And Collections Last Ten Fiscal Years Total Current Percent of Tax Tax Year Levy Collections 1997 $ 43,767,639 $ 42,474,085 1998 45,087,396 43,498,326 1999 47,178,979 44,985,116 2000 50,599,662 48,936,993 2001 53,727,318 52,148,971 2002 59,184,019 56,856,770 2003 65,289,186 62,668,552 2004 72,306,331 69,906,761 2005 76,748,078 73,991,702 2006 87,754,823 84,736,835 Indian River County, Florida Property Tax Levies And Collections Last Ten Fiscal Years Schedule 9 Percent of Percent of Current Tax Delinquent Total Total Tax Collections Tax Tax Collections To Tax Levy Collections (1) Collections To Tax Levy 97.04% $ 93,054 $ 42,567,139 97.26% 96.48% 65,517 43,563,843 96.62% 95.35% 132,335 45,117,451 95.63% 96.71% 108,698 49,045,691 96.93% 97.06% 158,661 52,307,632 97.36% 96.07% 95,364 56,952,134 96.23% 95.99% 7,797 62,676,349 96.00% 96.68% 176,345 70,083,106 96.93% 96.41% 111,220 74,102,922 96.55% 96.56% 34,344 84,771,179 96.60% All taxes are due and payable on November 1 of each year or as soon thereafter as the assessment roll is certified and delivered to the Tax Collector. All unpaid taxes become delinquent on April I following the year in which they are assessed. Discounts are allowed for early payment at the rate of 4% in the month of November, 3% in the month of December, 2% in the month of January and 1% in the month of February. The taxes paid in March are without discount. (1)On or prior to June 1 following the tax year, certificates are sold for all delinquent taxes on real property. After the sale, tax certificates bear interest of 18% per year or at any lower rate bid by the buyer. Application for a tax deed on any unredeemed tax certificates may be made by the certificate holder after a period of two years. Unsold certificates are held by the County. Delinquent taxes on personal property bear interest of 18% per year until the tax is satisfied either by seizure and sale of the property or by the five year statute of limitations. The County does not accrue its portion of the County -held certificates due to the immaterial amount. Source: Indian River County Property Appraiser and Tax Collector provided the above information; consequently, the reported collections on this schedule will vary from the actual collections as reported on schedule 5. The Tax Collector does not report the interest earnings on the collections however, the Board includes those interest earnings as part of the total tax collection. 181 Indian River County, Florida Ratios of Outstanding Debt by Type Last Ten Fiscal Years (A) General Obligation Bonds include Series 1995, Series 2001, Refunding Series 2003, and Limited General Obligation Bonds, Series 2006. This information is also presented on Schedule 11. (B) Refunding Revenue Bonds include Series 1985 and Series 1992 (C) Recreational Revenue Bonds, Series 1993 and Recreational Revenue Refunding Bonds, Series 2003. (D) Water & Sewer bonds include Series 1993, Series 1996, and Refunding Series 2005. In year 1996, this column also includes Solid Waste Revenue bonds, Series 1988. (E) Information not available Source for per capita income is University of Florida, Bureau of Economic and Business Research. 182 Governmental Activities Business -type General Refunding Spring Training Recreational Obligation Revenue Facility Bonds Revenue Capital Year Bonds (A) Capital Leases Bonds (B) 2001 Series Bonds (C) Leases 1997 $ 13,535,000 $ 798,408 $ 5,225,000 $ - $ 8,755,000 $ - 1998 12,755,000 648,491 4,680,000 - 8,455,000 - 1999 11,945,000 1,429,784 4,105,000 - 8,140,000 240,648 2000 11,100,000 1,313,562 - - 7,815,000 165,105 2001 10,215,000 943,210 - 16,810,000 7,470,000 84,981 2002 19,810,000 754,009 - 16,450,000 7,110,000 - 2003 17,725,000 417,518 - 15,990,000 6,735,000 - 2004 16,080,000 434,938 - 15,515,000 6,045,000 - 2005 14,385,000 380,275 - 15,025,000 5,595,000 263,237 2006 61,255,000 - - 14,520,000 5,135,000 193,786 (A) General Obligation Bonds include Series 1995, Series 2001, Refunding Series 2003, and Limited General Obligation Bonds, Series 2006. This information is also presented on Schedule 11. (B) Refunding Revenue Bonds include Series 1985 and Series 1992 (C) Recreational Revenue Bonds, Series 1993 and Recreational Revenue Refunding Bonds, Series 2003. (D) Water & Sewer bonds include Series 1993, Series 1996, and Refunding Series 2005. In year 1996, this column also includes Solid Waste Revenue bonds, Series 1988. (E) Information not available Source for per capita income is University of Florida, Bureau of Economic and Business Research. 182 Activities Schedule 10 Component Unit Percentage of Total Debt Percentage to Personal Per Housing of Personal Per Income Total Water & Sewer Primary Bonds (D) Government 2.87 1,015 $ 83,525,000 $ 111,838,408 81,690,000 108,228,491 79,795,000 105,655,432 77,830,000 98,223,667 76,215,000 111,738,191 74,525,000 118,649,009 72,760,000 113,627,518 70,905,000 108,979,938 64,880,000 100,528,512 62,490,000 143,593,786 Schedule 10 Component Unit Percentage of Total Debt Percentage to Personal Per Housing of Personal Per Income Capita Authority 3.20% $ 1,069 $ 4,605,400 2.87 1,015 4,432,400 2.65 964 4,257,400 2.33 870 4,080,400 2.45 966 3,901,400 2.54 1,004 3,720,400 2.35 938 3,538,400 2.15 859 3,354,400 (E) 773 3,168,400 (E) 1,062 3,168,400 183 ncome Capita 0.13% $ 44 0.12 42 0.11 39 0.10 36 0.09 34 0.08 31 0.07 29 0.07 26 (E) 24 (E) 23 Indian River County, Florida Ratio of Net General Bonded Debt Outstanding to Taxable Value and Net Bonded Debt per Capita Last Ten Fiscal Years Schedule 11 (A) Columns are provided as additional information for General Obligation Bonds, Series 2001 and 2003 and Limited General Obligation Bonds, Series 2006. Total taxable values are also presented in Schedule 6. Gross G.O.B. debt is also presented on Schedule 10. Source of population data is the University of Florida, Bureau of Economic and Business Research. 184 Ratio Of Gross General Debt Service Net Bonded Net Bonded Fiscal Taxable Obligation Monies Net Bonded Debt To Debt Per Year Population (A) Value (A) Bonded Debt Available (A) Debt Taxable Value Capita 1997 104,605 $ 5,940,864,817 $ 13,535,000 $ 661,037 $ 12,873,963 0.0022 $ 123.0700 1998 106,675 6,159,944,874 12,755,000 885,904 11,869,096 0.0019 111.2600 1999 109,579 6,420,215,433 11,945,000 1,072,959 10,872,041 0.0017 99.2200 2000 112,947 6,995,948,262 11,100,000 1,357,461 9,742,539 0.0014 86.2600 2001 115,716 7,440,896,735 10,215,000 1,609,998 8,605,002 0.0012 74.3600 2002 118,149 8,541,205,140 19,810,000 1,085,999 18,724,001 0.0022 158.4800 2003 121,274 9,500,891,213 17,725,000 684,016 17,040,984 0.0018 140.5200 2004 126,829 10,684,028,933 16,080,000 867,776 15,212,224 0.0014 119.9400 2005 130,043 12,179,995,659 14,385,000 1,106,353 13,278,647 0.0011 102.1100 2006 135,262 14,242,984,935 61,255,000 1,375,837 59,879,163 0.0042 442.6902 (A) Columns are provided as additional information for General Obligation Bonds, Series 2001 and 2003 and Limited General Obligation Bonds, Series 2006. Total taxable values are also presented in Schedule 6. Gross G.O.B. debt is also presented on Schedule 10. Source of population data is the University of Florida, Bureau of Economic and Business Research. 184 Indian River County, Florida Computation of Legal Debt Margin September 30, 2006 Schedule 12 Computation of the Legal Debt Margin is omitted because the Constitution of the State of Florida (F.S. 200.181) and Indian River County set no legal debt limit. O D 0 O185 Indian River County, Florida Direct and Overlapping Government Activities Debt September 30, 2006 Governmental Unit Debt repaid with property taxes: Indian River County General Obligation Bonds, Series 2001 Indian River County General Obligation Bonds, Refunding Series 2003 Indian River County Limited General Obligation Bonds, Series 2006 Indian River County School District General Obligation Bonds, 2002 Refunding Indian River County School District General Obligation Bonds, 2003 Refunding Other debt: a Indian River County School District Certificates of Participation Indian River County School District Capital Lease Payable Indian River County School District Estimated Long -Term Claims Payable Indian River County School District State School Bonds, Series 1996-B Indian River County School District State School Bonds, Series 2005-A (A) Ending General Obligation, Series 2001 balance $ 8,035,000 Less: Fund balance available in debt service fund (873,136) Net Debt Outstanding $ 7,161,864 (B) Ending General Obligation, Refunding Series 2003 balance $ 4,620,000 Less: Fund balance available in debt service fund (501,881) Net Debt Outstanding $ 4,118,119 (C) Ending Limited General Obligation, Series 2006 balance $ 48,600,000 Less: Fund balance available in debt service fund (820) Net debt outstanding $ 48,599,180 Total direct debt of county $ 59,879,163 (D) Indian River County School District, as of June 30, 2006 Source: Information on outstanding debt provided by the Indian River County Li School District Finance Department. Note: Overlapping debt is borne by all property owners within the County O boundaries. 186 a Debt 80,050,000 Outstanding 329,818 100 $ 7,161,864 (A) 4,118,119 (B) 48,599,180 (C) 17,550,000 (D) 11,435,000 (D) 80,050,000 (D) 329,818 (D) 231,006 (D) 75,000 (D) 6,295,000 (D) Percentage Applicable 100% $ 100 100 100 100 Share of Overlapping Debt 7,161,864 4,118,119 48,599,180 17,550,000 11,435,000 100 80,050,000 100 329,818 100 231,006 100 75,000 100 6,295,000 $ 175,844,987 187 Schedule 13 Uniform Charges Water sales Wastewater sales Other Total uniform charges Septage/Sludge Surcharges Interest Earnings 1989/1990 Special assessments 1996 Special assessments Gross revenue Direct expense Net revenues available for debt service Annual debt service Principal Interest Total debt service payment Debt service coverage Indian River County, Florida Pledged Revenue Coverage Water and Sewer Revenue Bonds (Series 1993A, 1996, 2005) Last Ten Fiscal Years $ 7,112,979 $ 7,424,615 1,985,179 16,522,773 88,267 122,936 1,637,156 633,974 190,610 19,195,716 8,144, 867 1998 1999 2000 14,856,193 $ 1,785,000 $ 7,576,145 $ 8,105,703 $ 8,680,435 7,488,529 7,913,884 7,991,280 1,462,839 1,162,098 1,443,978 6,247,069 $ 16,527,513 17,181,685 18,115,693 127,544 118,633 223,384 345,390 234,729 231,478 1,964,251 1,845,469 2,938,338 496,944 53,386 166,239 1,458,337 741,707 1,542,906 20,919,979 20,175,609 23,218,038 8,565,905 7,868,098 8,361,845 $ 11,050,849 $ 12,354,074 $ 12,307,511 $ 14,856,193 $ 1,785,000 $ 1,835,000 $ 1,895,000 $ 1,965,000 4,501,771 4,411,549 4,352,069 4,267,654 $ 6,286,771 $ 6,246,549 $ 6,247,069 $ 6,232,654 1.76x 1.97x 1.97x 2.38x Note: In accordance with Water and Sewer Revenue Refunding Bonds, Series 2005 bond covenants, there are items included in the debt service coverage calculation other than normal operating revenues. These items include surcharges and collections on special assessments, which are considered contributions of capital. 188 Schedule 14 $ 9,101,553 $ 9,373,866 $ 10,108,045 $ 11,037,623 $ 12,146,416 $ 13,336,623 8,154,933 8,534,228 8,940,200 9,439,597 10,437,091 11,634,181 1,367,291 1,684,506 1,314,453 1,426,112 1,685,502 1,744,486 18,623,777 19,592,600 20,362,698 21,903,332 24,269,009 26,715,290 293,741 381,741 348,320 278,897 269,575 332,329 238,079 247,137 243,342 234,746 242,451 244,166 4,577,350 2,983,032 1,797,260 1,269,838 2,264,132 4,554,419 37,235 9,409 11,650 1,564 - 60,229 870,629 2,619,805 2,752,661 1,539,600 722,922 350,712 24,640,811 25,833,724 25,515,931 25,227,977 27,768,089 32,257,145 9,388,472 9,662,508 10,723,548 12,507,398 12,853,872 14,270,414 $ 15,252,339 $ 16,171,216 $ 14,792,383 $ 12,720,579 $ 14,914,217 $ 17,986,731 $ 1,615,000 $ 1,690,000 $ 1,765,000 $ 1,855,000 $ 2,020,000 $ 2,390,000 4,177,559 4,102,839 4,021,989 3,936,019 3,525,573 3,157,260 $ 5,792,559 $ 5,792,839 $ 5,786,989 $ 5,791,019 $ 5,545,573 $ 5,547,260 2.63x 2.79x 2.56x 2.20x 2.69x 3.24x 189 Indian River County, Florida Pledged Revenue Coverage Recreational Revenue Refunding Bonds, Series 2003 Last Ten Fiscal Years Schedule 15 (A) Gross revenues include charges for services of the golf course as well as interest income. Grant revenues and gain on disposal of equipment are excluded. (B) Operating expenses include all expenses except depreciation, amortization, and interest expense. Loss on disposal of equipment is excluded. Note: Details regarding the County's outstanding debt can be found in the Notes to the Financial Statements. 190 Golf Course Operations Less: Net Fiscal Revenues Expenses Available Debt Service Operations Year Gross (A) Operating (B) Revenues Principal Interest Total Coverage 1997 $ 2,562,967 $ 1,843,526 $ 719,441 $ 290,000 $ 442,417 $ 732,417 0.98 r 1998 2,842,342 2,068,075 774,267 300,000 430,818 730,818 1.06 1999 2,928,530 2,063,359 865,171 315,000 418,518 733,518 1.18 2000 2,998,955 2,110,920 888,035 325,000 404,973 729,973 1.22 2001 3,095,768 2,190,943 904,825 345,000 390,673 735,673 1.23 2002 2,928,157 2,188,791 739,366 360,000 375,148 735,148 1.01 2003 3,135,478 2,326,179 809,299 375,000 357,103 732,103 1.11 2004 3,105,806 2,474,969 630,837 410,000 202,155 612,155 1.03 2005 3,252,414 2,590,759 661,655 450,000 188,307 638,307 1.04 2006 3,324,127 2,554,640 769,487 460,000 179,291 639,291 1.20 (A) Gross revenues include charges for services of the golf course as well as interest income. Grant revenues and gain on disposal of equipment are excluded. (B) Operating expenses include all expenses except depreciation, amortization, and interest expense. Loss on disposal of equipment is excluded. Note: Details regarding the County's outstanding debt can be found in the Notes to the Financial Statements. 190 Indian River County, Florida Pledged Revenue Coverage Housing Authority - Component Unit Last Ten Fiscal Years Schedule 16 Housing Authority Activity Less: Net Revenue Direct Available Fiscal Revenues Expenses For Debt Debt Service Requirements Year Gross (A) Operating (B) Service Principal Interest Total Coverage 1997 $ 629,888 $ 447,148 $ 182,740 $ 172,000 $ 47,774 $ 219,774 0.83 1998 637,191 416,078 221,113 173,000 46,054 219,054 1.01 1999 630,100 409,647 220,453 175,000 44,293 219,293 1.01 2000 666,946 402,612 264,334 177,000 42,705 219,705 1.20 a2001 716,796 449,220 267,576 179,000 40,655 219,655 1.22 2002 712,236 465,551 246,685 181,000 39,014 220,014 1.12 2003 690,645 494,031 196,614 182,000 37,052 219,052 0.90 2004 615,450 538,808 76,642 184,000 32,903 216,903 0.35 2005 599,074 664,806 (65,732) 186,000 33,388 219,388 (0.30) 2006 671,949 504,885 167,064 188,000 36,965 224,965 0.74 A Gross revenue includes rental assistance ( ) subsidy, tenant rental income, and other income. Y Interest income is excluded. (B) Operating expenses include all expenses except depreciation and interest expense. f Note: Details regarding the outstanding debt can be found in the Notes to the Financial Statements. Even through the Housing Authority is not continuing disclosure. a part of the primary government, this schedule is required for O a D191 Indian River County, Florida Demographic and Economic Statistics Last Ten Years Schedule 17 Total Per Capita 0 Personal Personal Unemployment Year Population (A) Income (B) Income (B) Rate (C) 1997 104,605 $ 3,494,957,000 $ 32,881 8.4% 1998 106,675 3,770,896,000 34,608 8.1 1999 109,579 3,983,019,000 35,788 7.6 2000 112,947 4,207,683,000 37,110 7.0 2001 115,716 43552,238,000 39,470 6.5 2002 118,149 4,680,414,000 39,683 7.7 2003 121,274 4,831,037,000 40,162 8.2 a 2004 126,829 5,071,395,000 40,677 6.9 4.7 2005 130,043 (D) (D) 2006 135,262 (D) (D) 4.7 lJ Sources: (A) University of Florida, Bureau of Economic and Business Research (B) US Department of Commerce, Bureau of Economic Analysis (C) Florida Agency for Workforce Innovation n (D) Information not available ILJI a a 0 0 192 1997 Employer School District of Indian River County Indian River Memorial Hospital Indian River County Publix Supermarkets The New Piper Aircraft City of Vero Beach Wal-Mart Sun Ag. Inc. Hale Indian River Groves John's Island Total Total County Employees Number of Employees 1,959 1,331 1,326 715 700 681 672 550 500 475 8,909 34,536 Percentage of Total County Employment 5.67% 3.85% 3.84% 2.07% 2.03% 1.97% 1.95% 1.59% 1.45% 1.38% 25.80% Source: Indian River County, Florida Annual Budgets for individual employers. Florida Agency for Workforce Innovation - Labor Market Statistics, and Bureau of Economic and Business Research at University of Florida for total County employment figures. * This includes the Board of County Commissioners, Clerk of the Court, Supervisor of Elections, Property Appraiser, and the Sheriff. a 193 Indian River County, Florida Principal Employers Year 2006 and Nine Years Ago Schedule 18 2006 Percentage Number of of Total County Employer Employees Employment School District of Indian River County 2,125 3.75% Indian River County * 1,693 2.99% Indian River Memorial Hospital 1,549 2.73% The New Piper Aircraft 974 1.72% Publix Supermarkets 950 1.68% City of Vero Beach 600 1.06% Sebastian River Med. 525 0.93% John's Island 475 0.84% Hale Groves 470 0.83% Wal-Mart 462 0.82% Total 9,823 17.34% Total County Employees 56,664 1997 Employer School District of Indian River County Indian River Memorial Hospital Indian River County Publix Supermarkets The New Piper Aircraft City of Vero Beach Wal-Mart Sun Ag. Inc. Hale Indian River Groves John's Island Total Total County Employees Number of Employees 1,959 1,331 1,326 715 700 681 672 550 500 475 8,909 34,536 Percentage of Total County Employment 5.67% 3.85% 3.84% 2.07% 2.03% 1.97% 1.95% 1.59% 1.45% 1.38% 25.80% Source: Indian River County, Florida Annual Budgets for individual employers. Florida Agency for Workforce Innovation - Labor Market Statistics, and Bureau of Economic and Business Research at University of Florida for total County employment figures. * This includes the Board of County Commissioners, Clerk of the Court, Supervisor of Elections, Property Appraiser, and the Sheriff. a 193 Indian River County, Florida Building Permits Last Ten Fiscal Years Indian River County Fiscal # of New # of Additions & Year Permits Construction Permits Alterations Munici- # of New Permits Construction 1997 908 $ 137,713,256 1,781 $ 23,838,749 409 $ 92,552,325 1998 1,039 180,336,969 1,699 17,333,346 452 90,073,878 1999 1,236 191,181,886 1,778 23,376,870 498 110,112,805 2000 1,336 248,523,923 1,710 20,345,326 482 151,128,071 2001 1,518 259,705,809 1,664 24,332,468 503 112,404,111 2002 1,658 291,543,816 1,334 32,118,404 599 142,231,044 2003 2,084 386,495,461 1,382 28,817,520 770 128,376,076 2004 3,889 642,032,168 1,935 46,173,846 773 182,843,901 2005 4,770 703,972,409 4,409 57,549,895 1,147 262,135,977 2006 3,760 754,817,641 5,630 43,898,675 826 185,556,022 Source: Building Departments - Indian River County (including the City of Vero Beach), Town of Orchid, Town of Indian River Shores, City of Sebastian, and City of Fellsmere. 194 Schedule 19 apalities Countywide # of Permits Additions & Alterations # of Permits New Construction # of Permits Additions & Alterations 2,643 $ 18,544,614 1,317 $ 230,265,581 3,098 $ 42,383,363 3,024 28,195,353 1,491 270,410,847 4,723 45,528,699 O3,023 21,622 464 1,734 301,294,691 4,801 44,999,334 a3,213 23,510,426 1,818 399,651,994 4,923 43,855,752 3,364 30,274,210 2,021 372,109,920 5,028 54,606,378 3,588 27,333,128 2,257 433,774,860 4,922 59,451,532 4,141 37,578,377 2,854 514,871,537 5,523 66,395,897 4,395 47,075,876 4,662 824,876,069 6,330 93,249,722 13,062 119,403,505 5,917 966,108,386 17,471 176,953,400 7,072 65,822,951 4,586 940,373,663 12,702 109,721,626 a 0 0 a a 195 Indian River County, Florida Operating Indicators by Function/Program Last Ten Fiscal Years Function/Program General Government Purchasing Purchase orders issued Probation New cases received Public Safety Fire department Vehicle fire rescue response Fire code inspections Advanced life support Advanced life support calls Basic life support calls (transport only) Sheriff Arrests Violent crimes Non-violent crimes Total calls for service Building department Construction permits issued Estimated value of construction (millions) Physical Environment Solid waste Waste stream tonnage received Total recycled material (tons) Utilities - water & sewer Number of water customer Number of wastewater customers Water ERUs Wastewater ERUs Water consumption (Average Daily Demand) 1997 1998 1999 2000 4,388 3,277 2,839 2,850 1,170 1,296 1,114 932 6,797 7,775 8,569 10,897 1,734 1,545 1,932 2,219 4,980 5,308 5,640 6,400 3,746 3,929 3,745 4,054 3,530 4,448 3,369 1,837 318 318 368 180 3,212 3,101 3,251 1,450 53,484 63,111 74,471 67,701 908 1,039 1,236 1,336 $ 137.7 $ 180.3 $ 191.2 $ 248.5 205,023 219,243 220,849 244,419 52,816 70,238 75,932 104,384 19,681 20,670 22,642 24,058 13,485 14,000 14,603 15,173 31,898 33,747 35,418 36,999 27,724 28,406 28,065 28,544 N/A N/A 5,378,000 5,778,000 196 Schedule 20 2001 2002 2003 2004 2005 2006 1,097 1,156 731 N/A N/A N/A 10,270 10,671 10,700 11,467 10,602 6,880 2,431 1,886 2,497 2,514 2,215 2,420 6,569 6,681 6,697 7,222 5,623 10,728 3,611 3,788 4,090 4,340 4,606 11,105 3,817 2,648 4,181 4,979 5,172 5,211 301 305 290 359 300 652 3,482 2,870 2,979 2,805 3,930 3,462 N/A 156,179 149,202 130,847 122,893 131,489 1,518 1,658 2,084 3,889 4,770 3,760 $ 259.7 $ 291.5 $ 386.5 $ 642.0 $ 704.0 $ 754.8 245,000 274,604 277,622 349,538 529,238 380,109 111,075 79,362 81,006 72,568 129,869 91,676 26,218 _ 27,632 27,849 33,793 34,867 43,477 16,169 16,737 17,293 19,786 20,237 25,943 39,404 41,242 44,420 46,254 53,032 54,070 29,644 30,297 32,432 33,250 38,387 41,351 6,528,000 6,897,000 7,586,000 7,660,000 7,780,000 8,370,000 Continued 197 Indian River County, Florida Operating Indicators by Function/Program Last Ten Fiscal Years Function/Program Transportation Public works Projects under design Projects awarded for construction Construction projects completed County engineer Roads designed Miles of roads designed Traffic engineer Site plans reviewed Culture/Recreation Library Circulation (County -wide) Recreation department Participants in adult programs Participants in youth programs Aquatic centers attendance Shooting range Safety/Registration cards issued Golf course Rounds played Court Related Law library Circulation 1997 1998 1999 2000 2,200 6 15 11 11 3 8 5 5 3 10 6 6 5 10 9 17 3.25 6.00 3.00 4.00 658 675 608 771 831,636 846,773 852,511 853,637 2,200 2,350 3,000 3,500 3,050 3,500 4,500 5,000 N/A N/A N/A N/A N/A N/A N/A N/A 108,415 115,531 115,526 116,940 18,038 198 17,147 16,937 22,071 2001 11 4.00 659 852,567 4,000 5,500 1,500 2,969 115,927 21,491 Schedule 20 2002 2003 2004 2005 2006 8 8 3 4 5 5 2 3 0 4 3 3 5 0 4 11 12 12 6 11 4.00 6.40 6.50 1.71 6.50 916 1,053 1,103 1,274 1,135 862,783 1,012,852 1,012,241 1,079,206 1,140,904 4,300 5,000 5,500 5,400 8,000 5,700 6,500 7,000 7,000 7,000 21,369 101,182 95,711 89,000 104,000 5,961 4,929 4,616 3,718 6,036 110,514 108,684 106,871 97,465 107,048 21,529 21,172 25,627 26,481 26,255 199 Indian River County, Florida Full -Time Equivalent County Government Employees by Function/Program Last Six Fiscal Years General Government Board of County Commissioners County Attorney Administration Financial/Administrative Service Comprehensive Planning Other Clerk of Circuit Court Property Appraiser Supervisor of Elections Tax Collector Public Safety Fire Department Advanced Life Support Sheriff - Corrections Sheriff - Court Service Sheriff - Law Enforcement Building Department Other Physical Environment Solid Waste Utilities - water and sewer Other Transportation Road and Bridges County Engineer Traffic Engineer Economic Environment Human Services Culture/Recreation Libraries Parks Recreation Department Coastal Engineering Shooting Range Golf Course Court Related Law Library Total 2001 2002 2003 2004 10 10 10 10 6 6 6 6 3 3 3 3 21.5 22.5 23.5 23.5 19 19 19 20 50 51 50 46 98 99.5 104.5 106 45 47 47 47 9.5 10 10 11.5 35 35 35 40 141.5 141.5 142.5 142.5 75 82 82 82 121 128 121 128 26 26.5 3 7. 5 25.5 262 265 261 273 19 21.5 23 29 22 22 22 19.5 51 53 54 54 115 120 122 125 8 8 8 8 98 98 98 99 26 27 28 29 19 19 20 20 6 6 6 6 14 14 14 15 46.5 50.5 51 51 35 35 37 37 27.5 28.5 54 55 0 0 0 0 6 6 6 6 26.5 26.5 26.5 22.5 1 1 1 1 1,443 1,482 1,523 1,541 200 2005 2006 10 10 6 6 3 3 23.5 24.5 23 23 42 50 108 113 47 49 11.5 11.5 40 40 144.5 233 82 - (A) 130 200 25.5 26 276 276 45 49 17.5 11 53 53 126 131 11 13 100 103 33 39 22 24 6 6 15 17 51 51 39 43 56.5 56 3 3 6 6 22 21.5 1,579 1,693 Schedule 21 Source: Indian River County, Florida Annual Budgets Method: Using 1.0 for each full-time employee, and 0.50 for each part-time/seasonal employee. Information provided since 2001, the year of GASB 34 implementation. (A) The fire department and advanced life support unions were consolidated on September 18, 2006. 201 Indian River County, Florida Capital Asset Statistics by Function/Program Last Ten Fiscal Years Function/Program 1997 1998 1999 General Government Buildings and grounds Total square footage maintained 437,700 437,700 452,270 Number of facilities and sites maintained 35 32 42 Vehicles 5 7 7 General government Vehicles 9 11 12 Planning Vehicles - - 2 Public Safety Fire department Vehicles 16 20 26 Fire stations 5 5 8 Advanced life support Vehicles 1 1 8 Sheriff Vehicles N/A 197 204 Building department Vehicles 4 5 6 Physical Environment Solid waste Vehicles 6 12 14 Utilities - water and sewer Vehicles 13 14 14 Water treatment plants 2 2 2 Wastewater treatment facilities 6 6 6 Water main - miles N/A N/A N/A Force main - miles N/A N/A N/A Transportation Road and bridges Miles maintained (paved & unpaved) 654 654 656 Bridges maintained 78 78 78 Vehicles 22 28 31 202 Schedule 22 2000 2001 2002 2003 2004 2005 2006 468,470 468,470 483,470 493,270 493,270 493,270 496,270 42 42 42 42 43 43 44 10 11 12 13 17 18 18 15 20 23 26 34 39 44 2 3 3 3 3 6 6 27 28 30 35 41 43 49 8 11 11 11 11 11 11 9 10 16 19 21 25 24 209 212 214 227 241 252 274 7 8 8 13 16 27 29 21 23 26 28 32 32 33 24 39 54 62 74 84 90 2 2 2 2 2 2 2 6 7 7 7 7 7 7 N/A N/A N/A N/A N/A N/A 737 N/A N/A N/A N/A N/A N/A 188 656 656 658 601 602 609 614 78 78 78 78 78 78 78 40 44 48 51 59 61 66 Continued 203 Indian River County, Florida Capital Asset Statistics by Function/Program Last Ten Fiscal Years' Function/Program 1997 1998 1999 Transportation - continued: Council on Aging Vehicles 1 1 2 Engineering Vehicles 3 4 4 Traffic engineering Traffic signals operated 94 98 99 Beacons operated 35 36 35 Vehicles 2 3 3 Traffic operations Vehicles 4 5 6 Economic Environment Rental Vehicles - 1 1 Human Services Health department Vehicles 7 8 11 Housing Vehicles - - 1 Culture/Recreation Libraries Locations 2 2 2 Parks Number of neighborhood parks 10 10 10 Number of County parks 24 24 27 Acreage 1,500 1,528 1,645 Picnic shelters maintained 46 48 49 Boats ramps maintained 8 8 8 Vehicles 4 5 6 Recreation Vehicles - - - Shooting range Vehicles N/A N/A N/A Rifle range stations N/A N/A N/A Pistol range stations N/A N/A N/A Golf Course Holes maintained 36 36 36 Vehicles 1 1 1 204 L J Schedule 22 LJ 2000 2001 2002 2003 2004 2005 2006 4 4 7 9 10 20 22 5 5 6 8 9 9 11 101 104 110 114 119 122 125 36 39 36 41 42 37 42 4 5 5 5 6 6 6 6 6 9 10 10 10 10 a1 1 1 1 1 1 1 11 13 13 14 14 17 16 1 1 1 1 1 2 2 2 2 2 2 2 2 2 12 31 12 31 12 35 12 37 12 35 12 47 12 47 2,681 2,681 3,857 3,869 3,857 3,994 4,004 51 8 51 8 59 8 62 8 59 8 64 8 66 8 11 13 15 16 20 22 23 - 1 2 4 4 4 5 N/A N/A 1 1 1 1 0 aN/A 29 29 29 29 29 29 N/A 35 35 35 35 35 35 36 36 36 36 36 36 36 1 1 1 1 2 2 2 Indian River County, Florida Department of Utility Services Historical Rate Structure Last Nine Fiscal Years In addition to the charges shown above, users of the North Beach Water System are subject to a $13 per ERU per month surcharge. 206 1998 1999 2000 WATER RATES Billing charges Base facilities charges (per ERU) $ 2.00 $ 2.00 $ 1.29 Single-family or commercial 9.20 9.20 7.76 Multi -family or manufactured home 9.20 9.20 6.60 Volume charge -per 1,000 gallons (per ERU) 0-3,000 gallons 1.75 1.75 2.20 3,000-7,000 gallons 2.15 2.15 2.42 7,001 gallons and over 2.55 2.55 3.85 Excess volume surcharge - greater than 13,000 gallons per month (per ERU) 2.30 2.30 7.70 Base facilities charge where capacity is Reserved but lines are not yet available (per ERU) Single-family or commercial 4.60 4.60 3.88 Multi -family or manufactured home 4.60 4.60 3.30 SEWER RATES Billing charges 2.00 2.00 1.29 Base facility charge (per ERU) Single-family or commercial 13.50 13.50 14.48 Multi -family or manufactured home 13.50 13.50 12.40 Volume charge -per 1,000 gallons Single-family & manufactured home (1,000-12,000) 3.35 3.35 . 2.86 Multi -family & commercial (0-13,000) 3.35 3.35 2.86 Multi -family & commercial (>13,000) 4.45 4.45 4.29 Base facility charge where capacity is Reserved but lines are not yet available (per ERU) Single-family or commercial 6.75 6.75 7.29 Multi -family or manufactured home 6.75 6.75 6.20 In addition to the charges shown above, users of the North Beach Water System are subject to a $13 per ERU per month surcharge. 206 Schedule 23 O2001 2002 2003 2004 2005 2006 $ 1.29 $ 1.29 $ 1.29 $ 1.29 $ 1.29 $ 1.29 7.76 7.76 7.76 7.76 7.76 7.76 6.60 6.60 6.60 6.60 6.60 6.60 2.20 2.42 2.20 2.42 2.20 2.42 2.20 2.42 2.20 2.42 2.20 2.42 3.85 3.85 3.85 3.85 3.85 3.85 7.70 7.70 7.70 7.70 7.70 7.70 3.88 3.88 3.88 3.88 3.88 3.88 3.30 3.30 3.30 3.30 3.30 3.30 1.29 1.29 1.29 1.29 1.29 1.29 0 14.58 14.58 14.58 14.58 14.58 14.58 12.40 12.40 12.40 12.40 12.40 12.40 2.86 2.86 2.86 2.86 2.86 2.86 2.86 2.86 2.86 2.86 2.86 2.86 4.29 4.29 4.29 4.29 4.29 4.29 7.29 7.29 7.29 7.29 7.29 7.29 6.20 6.20 6.20 6.20 6.20 6.20 O 207 Indian River County, Florida Water and Wastewater Customers Last Ten Fiscal Years Schedule 24 The number of County water and wastewater customers, expressed as the number of equivalent residential units ("ERUs"), for the years 1997 through 2006 as set forth below: Fiscal Year 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Source: Indian River County Utilities Department Water ERUs 31,898 33,747 35,418 36,999 39,404 41,242 44,420 46,254 53,032 54,070 PION Wastewater ERUs 27,724 28,406 28,065 28,544 29,644 30,297 32,432 33,250 38,387 41,351 Indian River County, Florida Top 10 High Volume Customers of Utility Service Fiscal Year 2006 Schedule 25 Below is a table depicting the ten highest volume customers of the utility system for the fiscal year ended September 30, 2006: Customer 1. Village Green Manufactured Housing Park 2. Fl Dept of Corrections 3. City of Fellsmere ( Wastewater Only) 4. Disney's Vero Beach Resort 5. Vero Beach Resort 6. Sebastian River Medical Center 7. Isles of Vero Beach 8. ACTS Inc 9. Tandem Health Care 10. Florida Convalescent Center Source: Indian River County Utilities Department 209 Annual Water Annual Wastewater Volume Volume (x 1,000 gals.) (x 1,000 gals.) 27,024 27,024 25,461 25,461 No Water 16,818 14,343 14,343 9,607 9,607 9,141 9,141 7,118 7,118 7,049 7,049 6,307 6,307 6,190 6,190 Indian River County, Florida Capacity Charges - Utilities Department Last Eight Fiscal Years Schedule 26 The County also receives capacity charges in connection with the system. Capacity charges are not pledged as a security for the bonds. While the County may pledge the capacity charges in the future, the County presently has no intention to pledge capacity charges as security for the bonds. Capacity charges for the last eight fiscal years ended September 30 are as follows: Fiscal Year 1999 2000 2001 2002 2003 2004 2005 2006 Water Capacity Charges $ 2,308,711 2,668,482 2,780,120 2,687,997 4,182,272 5,464,809 11,036,369 4,758,320 Wastewater Capacity Charges $ 1,547,731 2,916,529 2,392,169 2,423,583 5,448,827 7,559,916 19,109,246 8,287,244 (A) Large increase in capacity charges due to construction boom. 210 Total Charges $ 3,856,442 5,585,011 5,172,289 5,111,580 9,631,099 13,024,725 30,145,615 (A) 13,045,564 Indian River County, Florida Pledged Revenues for Recreational Revenue Refunding Bonds, Series 2003 Last Ten Fiscal Years Schedule 27 Racetrack and Jai alai fronton funds and 7% of the Half -Cent Sales Tax are pledged as security for payment on these bonds. This is in addition to the net revenues of the golf course. Refer to pledged revenue coverage ratio on Schedule 15. 211 Racetrack 7% of Fiscal and Jai Alai Half -Cent Year Fronton Funds Sales Tax 1997 $ 446,500 $ 286,786 1998 446,500 379,806 1999 446,500 411,014 2000 446,500 434,410 2001 446,500 456,472 2002 446,500 483,509 2003 446,500 490,138 2004 446,500 529,488 2005 446,500 612,279 2006 446,500 614,368 Racetrack and Jai alai fronton funds and 7% of the Half -Cent Sales Tax are pledged as security for payment on these bonds. This is in addition to the net revenues of the golf course. Refer to pledged revenue coverage ratio on Schedule 15. 211 Indian River County, Florida Pledged Revenues for Spring Training Facility Revenue Bonds, Series 2001 Last Ten Fiscal Years Schedule 28 Year Professional Total Ended Sports State Tourist One Cent Half Cent September 30 Subsidy Tax Collected Tourist Tax (A) Sales Tax (B) 1997 $ - $ 982,023 $ - $ 4,755,099 1998 - 1,000,084 - 5,425,803 1999 - 1,058,842 - 5,871,632 2000 - 1,114,916 - 6,205,862 2001 291,649 1,408,046 (A) 244,623 6,521,024 2002 500,004 1,410,409 347,710 6,917,278 2003 500,004 1,286,885 321,721 7,001,976 2004 500,004 1,443,272 360,818 7,564,109 2005 500,004 1,675,781 418,945 8,746,849 2006 500,004 1,517,360 379,340 8,776,684 (A) A 4th cent was imposed effective February 1, 2001. (B) This amount represents 100% of the half -cent sales tax received. Eighty-six percent of this amount is pledged to the payment of debt service on the Series 2001 bonds. 212 Harris, Cotherman, Jones, Price & Associates Certified Public Accountants - Chartered 5070 North Highway AIA, Suite 250 Vero Beach, FL 32963 Tel 772-234-8484 Fax 772-234-8488 Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards The Honorable Board of County Commissioners Indian River County, Florida We have audited the financial statements of governmental activities, the business -type activities, the aggregate discretely presented component unit, each major fund and the aggregate remaining fund information of the Indian River County, Florida (the "County"), as of and for the year ended September 30, 2006, which collectively comprise the County's basic financial statements and have issued our report thereon dated February 9, 2007. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control over Financial Reporting In planning and performing our audit, we considered Indian River County, Florida's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the fmancial statements and not to provide an opinion on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. A material weakness is a reportable condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements caused by error or fraud in amounts that would be material in relation to the financial statements being audited may occur and may not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses. Compliance and Other Matters As part of obtaining reasonable assurance about whether Indian River County, Florida's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, grant agreements and contracts, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. This report is intended solely for the information of the Board of County Commissioners, management, and the State (� of Florida Office of the Auditor General and is not intended to be and should not be used by anyone other than these IuI specified parties, �1.� �rLGCi41: :Jna7�gryc— Vero Beach, Florida February 9, 2007 "Providing Vision and Direction to our Clients" Member AICPA Member AICPA Division For CPA Firms Member FICPA (� Private Companies Practice Section U 213 11 Harris, Cotherman, Jones, Price & Associates 0 Certified Public Accountants - Chartered 5070 North Highway AIA, Suite 250 Vero Beach, FL 32963 Tel 772.234.8484 Fax 772-234-8488 L Independent Auditors' Report on Compliance with Requirements Applicable to Each Major Federal Program and Major State Project and on Internal Control over Compliance in Accordance with OMB Circular A-133 and the Department of Financial Services' State Projects Compliance Supplement The Honorable Board of County Commissioners Indian River County, Florida Compliance We have audited the compliance of Indian River County, Florida with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement and the requirements described in the Department of Financial Services' State Projects Compliance Supplement that are applicable to each of its major federal programs and major state projects for the year ended September 30, 2006. Indian River County, Florida's major federal programs and major state projects are identified in the summary of auditors' results section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major federal programs and major state projects is the responsibility of Indian River County, Florida's management. Our responsibility is to express an opinion on Indian River County, Florida's compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; OMB Circular A-133, Audits of States, Local Governments, and Non - Profit Organizations; Chapter 691-5, Rules of the Department of Financial Services, and Chapter 10.550, Rules of the Auditor General. Those standards, OMB Circular A-133, Chapter 691-5 and Chapter 10.550, Rules of the Auditor General, require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program or major state project occurred. An audit includes examining, on a test basis, evidence about Indian River County, Florida's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Indian River County, Florida's compliance with those requirements. In our opinion, Indian River County, Florida complied, in all material respects, with the requirements referred to above that are applicable to each of its major federal programs and major state projects for the year ended September 30, 2006. Internal Control over Compliance The management of Indian River County, Florida is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to federal programs and state projects. In planning and performing our audit, we considered Indian River County, Florida's internal control over compliance with requirements that could have a direct and material effect on a major federal program or state project in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133, Chapter 691-5, Rules of the Department of Financial Services, and Chapter 10.550, Rules of the Auditor General. "Providing Vision and Direction to our Clients"1 Member AICPA Member AICPA Division For CPA Firms Member FICPA Private Companies Practice Section a 214 1 o Harris, Cotherman, 0 Jones, Price & Associates Certified Public Accountants - Chartered Report on Compliance February 9, 2007 Page Two Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a reportable condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that noncompliance with applicable requirements of laws, regulations, contracts and grants caused by error or fraud that that would be material in relation to a major federal program or state project being audited may occur and may not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material aweaknesses. Schedule of Expenditures of Federal Awards and State Financial Assistance We have audited the compliance of Indian River County, Florida with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement, and the requirements described in the Department of Financial Services' State Projects Compliance Supplement, that are applicable to its major federal programs and state projects for the year ended September 30, 2006 as indicated above. The accompanying schedule of expenditures of federal awards and state projects is presented for purposes of additional analysis as required by OMB Circular A-133, Chapter 691-5, Rules of the Department of Financial Services, and Chapter 10.550, Rules of the Auditor General, and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. This `report is intended solely for the information and use of the Board of County Commissioners, management, and specific legislative or regulatory bodies and is not intended to be and should not be used by anyone other than these specified parties. Vero Beach, Florida February 9, 2007 215 Indian River County, Florida Schedule of Expenditures of Federal Awards and State Projects For the Fiscal Year Ended September 30, 2006 Federal/State Agency CFDA Contract/ Pass-through Entity CSFA Grant Transfers to 16JI Federal Program/State Project No. No. Expenditures Subrecipients Department of Housing and Urban Development: Direct Programs: Section 8 Housing Choice Vouchers 14.871 FL -132 -VO -014 to 017 $ 1,483,080 Supportive Housing Program -Transitional Housing 14.235 FL29B009001 1,885 Supportive Housing Program -Transitional Housing 14.235 FL29B409003 17,939 Shelter Plus Care 14.238 FL29C109001 103,828 Shelter Plus Care 14.238 FL29C209002 55,002 Shelter Plus Care 14.238 FL29C309002 81,741 Shelter Plus Care 14.238 FL29C509001 15,834 Supportive Housing Program -Youth Crisis Center 14.235 FL29B109002 91,106 Supportive Housing Program - Homeless Management Information Systems 14.235 FL29B409002 18,184 Homeless Management Information Systems 14.235 FL29B509002 8,298 Homeless Management Information Systems 14.235 FL29B309003 19,935 Indirect Programs: Passed through Florida Dept. of Community Affairs: Community Dev. Block Grant/State's Program 14.228 03DB- IA- 10-40-01-H-12 248,398 Disaster Recovery Initiative Grant 14.228 06DB-3C-10-40-01-W-14 858,880 Passed through Florida Housing Finance Corp.: Tenant Based Rental Assistance 14.857 2005-102TBRA 19,565 Total Department of Housing and Urban Development: 3,023,675 Federal Transit Administration: Direct Programs: Federal Transit Formula Section 5307 Grant 20.507 FL -90-X568 $ 664,213 Federal Transit Formula Section 5307 Grant 20.507 FL -90-X533 47,930 Federal Transit Formula Section 5307 Grant 20.507 FL -90-X500 3,380 Federal Transit Formula Section 5307 Grant 20.507 FL -90-X472 306,226 Total Federal Transit Administration: 1,021,749 Federal Highway Administration: Indirect Programs: Passed through Florida Department of Transportation: Joint Participation Agreement with FDOT- Hurricane Jeanne 20.205 ANX78 295,629 Hurricane Frances 20.205 ANX75 467,235 r Hurricane Wilma 20.205 AOE44 110,547 II` Metropolitan Planning Organization 20.205 AA080 345,188 Metropolitan Planning Organization 20.205 ANR93 3,633 Total Federal Highway Administration: 1,222,232 Environmental Protection Agency: Indirect Programs: Passed through Florida Department of Environmental Protection: Pelican Island Upland Restoration 15.614 RM026 51,752 * prior year's costs Nonpoint Source Implementation Grants - East Gifford Stormwater 66.460 WM836 16,747 Total Environmental Protection Agency: 68,499 216 n Indian River County, Florida Schedule of Expenditures of Federal Awards and State Projects For the Fiscal Year Ended September 30, 2006 a 217 Federal/State Agency CFDA Contract/ Pass-through Entity CSFA Grant Transfers to Federal Program/State Project No. No. Expenditures Subrecipients Department of Justice: Disaster Relief Funding -Hurricane Frances 97.036 05 -PA -G%-10-41-01-800 1,063,761 Direct Programs: Disaster Relief Funding -Hurricane Jeanne 97.036 05 -PA -E=-10-41-01-864 Local Law Enforcement Block Grant 16.592 2004-LBBX-1214 22,584 05 -WL -&K-10-41-01-522 Local Law Enforcement Block Grant 16.592 2003-LBBX-1710 43 06-B6-04-10-40-01-031 Bureau of Justice Assistance Bulletproof Vest Partnership Edward Bryne Memorial Justice Assistance Grant 16.607 16.738 NA 2005 -DJ -BX -2005 3,836 30,100 97.067 Indirect Programs: 12,500 Total Federal Emergency Management Agency: Passed through Florida Department of Law Enforcement: 3,085,096 TOTAL EXPENDITURES OF FEDERAL AWARDS: $ Bryne Formula Grant Program a Multi -Agency Drug Enforcement Unit 16.579 2006-JAGC-INRI-3-M8-188 78,743 Substance Abuse Advisory Council 16.579 2006-JAGC-INRI-2-M8-185 13,058 Drug Testing I 16.579 2006-JAGC-INRI-1-M8-154 38,784 Law Enforcement Terrorism Prevention 97.004 05 -CJ -L2-05-40-23-099 3,752 IRCSO - Level A Suit With Boots and SCBA 97.004 2006-SHSP-INRI-N9-034 6,342 Livescan Workstation Grant 16.579 06-043-10-40-01-294 38,431 Passed through Office of the Attorney General: Crime Victim Assistance Program 16.575 V5118 33,261 Total Department of Justice: 268,934 General Services Administration: Indirect Programs: Passed through Florida Department of State: Federal HSS Vote Program Grant 93.617 N/A 12,537 Poll Worker Recruitment and Training Grant 90.401 N/A 23,777 Voter Education Program Grant 39.011 N/A 23,777 Voter Education Program Grant 39.011 N/A 71 Total General Services Administration: 60,162 Office of Child Support Enforcement: Indirect Programs: Passed through Florida Department of Revenue: Child Support Enforcement -Title IV D - Sheriff Service of Notices 93.563 00331 9,614 Child Support Enforcement -Title IV D - Sheriff Service of Notices 93.563 CC331 429,670 Total Office of Child Support Enforcement: 4.39,284 a 217 Federal Emergency Management Agency: Indirect Programs: Passed through Florida Dept. of Community Affairs: Disaster Relief Funding -Hurricane Frances 97.036 05 -PA -G%-10-41-01-800 1,063,761 Disaster Relief Funding -Hurricane Jeanne 97.036 05 -PA -E=-10-41-01-864 443,020 Disaster Relief Funding -Hurricane Wilma 97.036 05 -WL -&K-10-41-01-522 1,532,102 Emergency Management Performance Grant 97.042 06-B6-04-10-40-01-031 33,713 Emergency Mgmt. Homeland Security 97.067 06FS-3W-10-40-01 12,500 Total Federal Emergency Management Agency: 3,085,096 TOTAL EXPENDITURES OF FEDERAL AWARDS: $ 8,167,882 $ 1,021,749 a 217 Indian River County, Florida Schedule of Expenditures of Federal Awards and State Projects For the Fiscal Year Ended September 30, 2006 Federal/State Agency CFDA Contract/ Pass-through Entity CSFA Grant Transfers to Federal Program/State Project No. No. Expenditures Subrecipients STATE OF FLORIDA Department of Community Affairs: Direct Projects: Hazardous Materials Emergency Planning 52.023 06 -CP -11-10-40-01-033 $ 3,137 Emergency Operations Center Grant 52.037 06CP-4Z-10-40-01 321,967 State Funded Subgrant - School Concurrency 52.003 06 -DR -73-10-40-01-007 96,045 Emergency Management Programs- Emergency Management Base Grant 52.008 06 -BG -04-10-40-01-085 102,959 Indirect Projects: Passed through Florida Communities Trust: Florida Forever Act - Russell Grove River Buffer 52.002 05-39-FF5 2,194,630 Total Department of Community Affairs: 2,718,738 Florida Housing Finance Agency: Direct Project: Local Hurricane Housing Recovery Plan 52.902 N/A 3,490,399 State Housing Initiatives Partnership 52.901 N/A 2,516,699 Total Florida Housing Finance Agency: 6,007,098 Department of Environmental Protection: Direct Projects: Beach Restoration Emergency Response 37.065 H51R1 4,631,629 Beach Erosion Control Program 37.003 98IR1 281,233 Total Department of Environmental Protection: 4,912,862 Department of State: Division of Historical Resources: Direct Project: Old Fellsmere School 45.031 SC250 25,000 * prior year's costs Division of Library Services: Direct Project: State Aid to Libraries 45.030 06 -ST -24 201,490 Total Department of State: 226,490 Department of Transportation: Direct Projects: Transportation Disadvantaged Planning Grant 55.002 AOE307 18,580 Transit Corridor Grant 55.013 AN_83 141,876 Access Improvements to Aviation Boulevard 55.014 ANP77 95,961 County Incentive - Cr 512 Widening 55.008 AL879 187,892 Downtown Vero & Gifford Transit Centers 55.014 AM917 5,320 Public Transit Block Grant 55.010 ANT19 252,101 Total Department of Transportation: 701,730 218 Indian River County, Florida Schedule of Expenditures of Federal Awards and State Projects For the Fiscal Year Ended September 30, 2006 Federal/State Agency CFDA Contract/ Pass-through Entity CSFA Grant Transfers to Federal Program/State Project No. No. Expenditures Subrecipients STATE OF FLORIDA - Continued Department of Agriculture and Consumer Services: Direct Project: Water Policy Best Management Practices 42.017 006800 33,244 Total Department of Agriculture and Consumer Services: 33,244 Department of Management Services: Direct Project: Wireless 911 Emergency Telephone System 72.001 N/A 302,574 Total Department of Management Services: 302,574 Department of Health and Rehabilitative Services: Direct Project: County Awards Grant -Emergency Medical Svc 64.005 C5031 31,709 Total Department of Health and Rehabilitative Services: 31,709 Department of Revenue: Direct Project: Facilities for Retained Spring Training Franchise- Dodgertown 73.016 N/A 500,004 Total Department of Revenue: 500,004 TOTAL EXPENDITURES OF STATE FINANCIAL ASSISTANCE: $ 15,434,449 $ - United States Department of Agriculture: FHA Acquisition and Construction Revenue Bonds Victory Park Phase I 10.405 09-031-59600674-01-5 $ 996,000 Victory Park Phase II 10.405 09-031-59600674-01-5 934,000 Orangewood Park Apartments 10.405 09-031-59600674-01-2 1,238,400 n TOTAL BONDS PAYABLE (FEDERALLY GUARANTEED): $ 3,168,400 219 Indian River County, Florida Notes to Schedule of Expenditures of Federal Awards and State Projects For the Fiscal Year Ended September 30, 2006 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies and presentation of the Single Audit Report of Indian River County, Florida, (the "County") have been designed to conform to generally accepted accounting principles as applicable to governmental units, including the reporting and compliance requirements of the Audits of States, Local Governments, and Non -Profit Organizations and Office of Management and Budget Circular A-133. A. Reporting Entity The reporting entity consists of Indian River County, the primary government, and each of its component units. The County includes a Schedule of Expenditures of Federal Awards and State Projects in the Compli- ance Section. B. Basis of Accounting Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus. The modified accrual basis of accounting is followed in the Schedule of Expenditures of Federal Awards and State Projects. Under the modified accrual basis, revenues are recognized when they become measurable and available. Revenues are considered to be available when they are collectible within the current period n or soon enough thereafter to pay liabilities of the current period. For this purpose, the County considers rev- Il�1l enues to be available if they are collected within 45 days after the end of the current fiscal period. Expendi- tures generally are recorded when a liability is incurred, as under accrual accounting. n Actual disaster relief expenditures exceed the amount allowed by the Federal Emergency Management Agency for many projects. Future Schedules of Expenditures of Federal Awards and State Projects may be adjusted to reflect additional expenditures from current and prior fiscal years. 220 C. DIndian River County, Florida Schedule of Findings and Questioned Costs — Federal Awards and State Projects a Year Ended September 30, 2006 Section I — Summary of Auditor's Results Financial Statements a Type of auditor's report issued Unqualified Internal control over financial reporting: Material weakness(es) identified? Yes X Reportable condition(s) identified not No considered to be material weaknesses? Yes X None reported Noncompliance material to financial statements noted? Yes X No Federal Awards and State Projects Internal control over major programs: Material weakness(es) identified? Yes X No Reportable condition(s) identified not considered to be material weaknesses? Yes X None reported Type of auditor's report issued on compliance for major federal programs and state projects Unqualified Any audit findings disclosed that are required to be reported in regards to the major federal programs or state projects Yes X No Identification of major programs: DCFDANumber Name of Federal Program or Cluster 14.228 HUD Community Development Block Grant 14.871 HUD Section 8 Rental Assistance 20.205 DOT Highway Planning and Construction 20.507 DOT Federal Transit Grant 93.563 HHS Child Support Enforcement 97.036 FEMA Disaster Relief Funding 10.405 FHA Acquisition & Construction Revenue Bonds: Victory Park Phase I Victory Park Phase 1I Orangewood Park Apartments CSFA Number Name of State Project 37.065 FDEP Beach Restoration Emergency Response 52.002 DCA Ansin Tract 52.037 DCA Emergency OPS Center 52.901 FHFA — State Housing Initiatives Partnership 52.902 FHFA Hurricane Housing Recovery 73.016 FDOR — Dodgertown Spring Training Facility Dollar threshold used to distinguish between Type A and Type B programs $300,000 (Federal) $463,033 (State) Auditee qualified as low-risk auditee? X Yes No Section II — Financial Statement Findings There were no reportable conditions, material weaknesses, or instances of noncompliance related to the financial statements. Section III — Federal Award Findings and Questioned Costs There were no audit findings related to federal awards required to be reported by Circular A-133, Section 510(A). LJ Section IV — Prior Year Findings and Questioned Costs No matters were reported. D221 I - %w6w- ' , ,� 222 Harris, Cotherman, Jones, Price & Associates Certified Public Accountants - Chartered 5070 North Highway AlA, Suite 250 Vero Beach, FL 32963 Tel 772-234-8484 Fax 772-234-8488 Management Comments The Honorable Board of County Commissioners Indian River County, Florida We have audited the basic financial statements of Indian River County, Florida as of and for the year ended September 30, 2006, and have issued our report thereon dated February 9, 2007. We conducted our audit in accordance with United States generally accepted auditing standards; the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non -Profit Organizations. We have issued our Independent Auditor's Report on Compliance and Internal Control over Financial Reporting, Independent Auditor's Report on Compliance and Internal Control over Compliance Applicable to each Major Federal Program and State Project, and Schedule of Findings and Questioned Costs. Disclosures in those reports and schedule, which are dated February 9, 2007, should be considered in conjunction with this management letter. We have also issued separate management letters dated February 9, 2007 for each county agency not included in this letter, which should also be considered in conjunction with this management letter. a Additionally, our audit was conducted in accordance with Chapter 10.550, Rules of the Auditor General, which govern the conduct of local government entity audits performed in the State of Florida and require that certain items be addressed in this letter. In accordance with the Rules of the Auditor General (Section 10.554(1)(h) 1.), it is noted that there were no recommendations made in the preceding audit report. The Rules of the Auditor General (Section 10.554 (1)(h) 3.) require that we address in the management letter any findings and recommendations to improve financial management, accounting procedures, and internal control. In connection with our audit, we did not have any such findings. The Rules of the Auditor General (Section 10.554(1)(h) 4.) require disclosure in the management letter of the following matters if not already addressed in the auditor's reports on compliance and internal controls or schedule of findings and questioned costs: (1) violations of laws, rules, regulations, and contractual provisions that have occurred, or are likely to have occurred; (2) improper or illegal expenditures; (3) improper or inadequate accounting procedures; (4) failures to properly record financial transactions; and (5) other inaccuracies, shortages, defalcations, and instances of fraud discovered by, or that come to the attention of, the auditor. There were no such matters noted during the current year. We have also tested your operations for compliance with applicable laws and have provided additional comments required to be included by reason of the Rules of the Auditor General of the State of Florida. "Providing Vision and Direction to our Clients" Member AICPA Member AICPA Division For CPA Firms Member FICPA Private Companies Practice Section 223 Harris, Cotherman, a Jones, Price & Associates Certified Public Accountants - Chartered The Honorable County Commissioners Indian River County, Florida Management Comments Page Two COMMENTS REQUIRED BY THE RULES OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA Financial Condition Assessment As required by the Rules of the Auditor General (Sections 10.554(h)(6)c and 10.556 (7).), we applied financial condition assessment procedures relating to Indian River County. It is management's responsibility to monitor the entity's financial condition, and our financial condition assessment was done as of the fiscal year end and was based in part on representations made by management and the review of financial information provided by same. Determination of Financial Emergency - F.S. Section 218.503(1) As required by the Rules of the Auditor General (Section 10.554(1)(h)6.a.), none of the conditions described in Section 218.503(1), Florida Statutes, were met during the fiscal year ended September 30, 2006. Florida Department of Financial Services As required by the Rules of the Auditor General (Section 10.554(1)(h)6.b.), the annual financial report required to be filed with the Florida Department of Financial Services pursuant to Section 218.32(1)(a) of the Florida Statutes has been completed. We agreed this report with the annual financial audit report and noted no exceptions for the fiscal year ended September 30, 2006. Compliance With Section 218.415 As required by the Rules of the Auditor General (Section 10.554(1)(h)2.), the scope of our audit included a review of the provisions of Section 218.415, Florida Statutes, regarding the investment of public funds. In connection with our audit, we determined that the Board of County Commissioners complied with Section 218.415, Florida Statutes. This report is intended for the information of management, the Board of County Commissioners, and the Auditor General of the State of Florida, and is not intended to be and should not be used by anyone other than hese specified parties. Vero Bleach, n February 9, 2007 I I 224 E 225 226 Harris, Cotherman, ED Jones, Price & Associates Certified Public Accountants - Chartered 5070 North Highway AIA, Suite 250 a Vero Beach, FL 32963 Tel 772-234-8484 Fax 772.234-8488 Report on Special Purpose Financial Statements Prepared in Compliance with a Regulatory Provision That Results in an Incomplete Presentation But One That is Otherwise in Conformity with Generally Accepted Accounting Principles The Honorable Board of County Commissioners Indian River County, Florida We have audited the accompanying fund financial statements of Indian River County, Florida Board of County Commissioners as of and for the fiscal year ended September 30, 2006, as listed in the table of contents. These financial statements are the responsibility of the Board of County Commissioners' I I management. Our responsibility is to express an opinion on the financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the fund financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the fund financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As described in Note 1, the accompanying fund financial statements referred to above present fairly only the financial position of the Board of County Commissioners at September 30, 2006, and the results of operations for the year then ended in conformity with generally accepted accounting principles. In our opinion, the fund financial statements referred to above present fairly, in all material respects, the financial position of the Board of County Commissioners as of September 30, 2006, and the results of operations for the year then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated February 9, 2007 on our consideration of the Board of County Commissioners' internal control over financial reporting and on our tests of compliance with certain provisions of laws, regulations, contracts, and grants. r-, H This report is intended solely for the information and use of management, the Board of County Commissioners, the Auditor General, and applicable Federal and State agencies, and is not intended to be Z hould nottJJb`�e/jused by anyone other than these specified parties. =, (�7"i'G? lmY i q aVero B ach, Florida February 9, 2007 "Providing Vision and Direction to our Clients" Member AICPA Member AICPA Division For CPA Firms Member FICPA Private Companies Practice Section 227 Indian River County, Florida Board of County Commissioners a Balance Sheet Governmental Funds September 30, 2006 ^ The accompanying notes are an integral part of the financial statements. 228 Secondary Impact Roads General Fees Construction Transportation a ASSETS Cash and cash equivalents $ 41,771,670 $ 86,679,736 $ 24,095,703 $ 5,238,135 783 Accounts receivable A 506,994 - _ 76,300 - 96,149 Special assessments receivable Due from other funds 230,207 5,230,915 - 257,663 - 410,487 877,292 Due from other governments Interest receivable _ Inventories 9,036 - Prepaid expenses 44,121 - - - 654,000 - Advances to other funds - - 666,667 - Notes receivable $ 47,792,943 $ 86,937,399 $ 25,903,157 $ 6,212,359 Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ 1,176,181 $ 1,052,859 $ 1,597,769 $ 369,069 Retainage payable 1,575 426,123 198,163 _ 704 - Due to other funds - Due to other governments 1,354 - _ 375,743 Unearned revenues 115,430 - 500 Other deposits held in escrow 210,416 - _ - Accrued interest payable -- Advances from other funds 987,105 2,492,061 - - 746,016 1,478,982 1,795,932 Total liabilities Fund balances: Reserved for: _ _ Debt service 666,667 - Capital projects _ 654,000 - Advances to other funds - Unreserved, reported in: - General fund General 45,300,882 - 85,458,417 - 22,786,558 5,466,343 revenue funds Total fund balances 45,300,882 85,458,417 24,107,225 5,466,343 Total liabilities and fund balances $ 47 792 943 $ 86,937,399 $ 25,903,157 $ 6,212,359 The accompanying notes are an integral part of the financial statements. 228 Emergency Optional Other Total Services Land Federal/State Sales Governmental Governmental District Acquisition Grants Tax Funds Funds $ 11,052,965 $ 43,577,493 $ 10,817,686 $ 33,863,522 $ 20,195,834 $ 277,292,744 - - - 26,175 46,771 657,023 - - - - - 96,149 - - - - - 230,207 291,748 - 416,557 1,025,418 357,415 8,867,495 - - - - 9,178 9,178 - - - - - 9,036 10,189 - 25,967 - 500 80,777 - - - 987,105 - 1,641,105 - - - - - 666,667 $ 11,354,902 $ 43,577,493 $ 11,260,210 $ 35,902,220 $ 20,609,698 $ 289,550,381 $ 813,131 $ 55,017 $ 570,698 $ 4,259,904 $ 1,582,115 $ 11,476,743 141 - 22,035 2,044,578 207,789 2,901,108 - - 105,207 - 125,000 230,207 - - - - - 1,354 32,098 - 11,009,625 - 58,151 11,591,047 - - 8,636 - - 219,552 - - - - 29,734 29,734 - - - - - 987,105 845,370 55,017 11,716,201 6,304,482 2,002,789 27,436,850 - - - - 2,225,349 2,225,349 - - - 28,610,633 4,931,363 34,208,663 - - - 987,105 - 1,641,105 - - - - - 45,300,882 10,509,532 43,522,476 (455,991) - 11,450,197 178,737,532 10,509,532 43,522,476 (455,991) 29,597,738 18,606,909 262,113,531 $ 11,354,902 $ 43,577,493 $ 11,260,210 $ 35,902,220 $ 20,609,698 $ 289,550,381 229 Indian River County, Florida Board of County Commissioners Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds For the Year Ended September 30, 2006 REVENUES Taxes Licenses and permits Intergovernmental Charges for services Fines and forfeitures Special assessments Interest Miscellaneous Total revenues EXPENDITURES Current: General government Public safety Physical environment Transportation Economic environment Human services Culture/recreation Court related Debt service: Principal Interest and other fiscal charges Capital projects Total expenditures Excess of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) Transfers in Transfers out Transfers to constitutional officers Debt issuance Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year 9,711,155 90,019 - 642,077 2,973,824 - - 459,516 - - 298,457 2,361,251 9,55 8,681 6,066,829 12,408,095 609,972 - - 4,385,339 - - 10,135,366 - - 281,083 - - Secondary 13,348,629 Impact Roads 30,917,506 General Fees Construction Transportation $ 69,308,542 $ - $ 3,526,774 $ - 959,514 - - 315,124 17,168,275 22,292 308,889 3,258,039 5,506,909 - 117,288 240,672 443,626 - - - 24,633,680 - 107,528 2,006,519 3,098,966 912,633 181,511 1,305,167 1,536,164 234,478 409,498 96,698,552 29,291,102 5,100,062 4,512,372 Transfers in Transfers out Transfers to constitutional officers Debt issuance Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year 9,711,155 90,019 - 642,077 2,973,824 - - 459,516 - - 298,457 2,361,251 9,55 8,681 6,066,829 12,408,095 609,972 - - 4,385,339 - - 10,135,366 - - 281,083 - - The accompanying notes are an integral part of the financial statements. 230 D I H � 11 13,348,629 6,066,829 9,648,700 30,917,506 65,781,046 19,642,402 (966,767) (8,836,257) 3,774,108 - - 11,048,573 (12,233,827) - - (42,172, 870) - - (50,632,589) - - 11,048,573 15,148,457 19,642,402 (966,767) 2,212,316 30,152,425 65,816,015 25,073,992 3,254,027 $ 45,300,882 $ 85,458,417 $ 24,107,225 $ 5,466,343 The accompanying notes are an integral part of the financial statements. 230 D I H � 11 O Emergency Optional Other Total Services District Land Acquisition Federal/State Grants Sales Tax Governmental Funds Governmental Funds $ 23,046,264 $ - $ - $ 15,736,078 $ 4,470,890 $ 116,088,548 - - - - - 1,274,638 186,850 902,991 4,451,454 954,787 10,824,585 38,078,162 3,708,250 - - - 1,542,075 11,115,194 7,000 - - 203,141 653,767 269,711 25,010,919 529,362 599,391 326,509 1,341,877 777,265 9,774,033 35,073 - 108,500 33,087 670,935 4,332,902 a27,512,799 11502,382 4,886,463 18,065,829 18,758,602 206,328,163 - - - - 401,136 10,844,387 25,581,501 - 906,477 - 880,875 30,342,677 - 7,958,903 222,329 - 16,057 215,557 8,955,262 30,610,413 151,176 293,091 1,054,239 - - 3,933,878 - 4,151,005 12,470,222 - - - - 6,245,072 16,380,438 854,388 1,135,471 - - - 2,235,000 2,235,000 579,792 1,196,396 1,776,188 - - - 36,062,152 1,786,323 37,848,475 25,581,501 8,538,695 5,213,860 36,062,152 18,274,900 153,652,772 1,931,298 483,702 52,675,391 (7,036,313) (327,397) (17,996,323) 738,100 - 50,667 6,387,009 182,122 22,180,579 - - - - (114,831) (12,348,658) (513,792) - 49,996,735 - - (417,854) (43,104,516) 49,996,735 224,308 49,996,735 50,667 6,387,009 (350,563) 16,724,140 2,155,606 42,960,422 (276,730) (11,609,314) 133,139 69,399,531 8,353,926 562,054 (179,261) 41,207,052 18,473,770 192,714,000 $ 10,509,532 $ 43,522,476 $ (455,991) $ 29,597,738 $ 18,606,909 $ 262,113,531 O O 231 Indian River County, Florida Board of County Commissioners Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual General Fund For the Year Ended September 30, 2006 REVENUES Taxes Licenses and permits Intergovernmental Charges for services Fines and forfeitures Interest Miscellaneous Total revenues EXPENDITURES Current: General government Public safety Physical environment Transportation Economic environment Human services Culture/recreation Court related Total expenditures Excess of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) 9,714,792 10,881,135 9,711,155 Variance with 2,564,449 3,234,194 2,973,824 Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) 668,363 441,130 $ 65,473,426 $ 65,473,425 $ 69,308,542 $ 3,835,117 730,587 730,587 959,514 228,927 11,824,933 14,458,767 17,168,275 2,709,508 4,807,691 4,540,345 5,506,909 966,564 157,320 157,320 443,626 286,306 408,500 556,134 2,006,519 1,450,385 185,962 955,776 1,305,167 349,391 83,588,419 86,872,354 96,698,552 9,826,198 9,714,792 10,881,135 9,711,155 1,169,980 2,564,449 3,234,194 2,973,824 260,370 431,241 613,292 459,516 153,776 931,004 3,029,614 2,361,251 668,363 441,130 625,990 609,972 16,018 4,612,948 4,608,707 4,385,339 223,368 10,203, 852 11,13 9,212 10,13 5,3 66 1,003, 846 628,947 418,881 281,083 137,798 29,528,363 34,551,025 30,917,506 3,633,519 54,060,056 52,321,329 65,781,046 13,459,717 Transfers in - - 3,774,108 3,774,108 Transfers out (11,429,701) (12,237,189) (12,233,827) 3,362 Transfers to constitutional officers (42,928,422) (43,737,416) (42,172,870) 1,564,546 Total other financing sources (uses) (54,358,123) (55,974,605) (50,632,589) 5,342,016 Net change in fund balances Fund balances at beginning of year Fund balances at end of year (298,067) (3,653,276) 15,148,457 $ 18,801,733 298,067 3,653,276 30,152,425 $ - $ - $ 45,300,882 The accompanying notes are an integral part of the financial statements. 232 v � E u Indian River County, Florida Board of County Commissioners Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Impact Fees Fund For the Year Ended September 30, 2006 REVENUES Intergovernmental Special assessments Interest Miscellaneous Total revenues EXPENDITURES Current: General government Transportation Total expenditures Excess of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ - $ - $ 22,292 $ 22,292 19,834,047 20,834,047 24,633,680 3,799,633 148,200 148,200 3,098,966 2,950,766 - - 1,536,164 1,536,164 19,982,247 20,982,247 29,291,102 8,308,855 - 1,068,467 90,019 978,448 32,924,171 56,246,893 9,558,681 46,688,212 32,924,171 57,315,360 9,648,700 47,666,660 (12,941,924) (36,333,113) 19,642,402 55,975,515 - (350,000) - 350,000 - (350,000) - 350,000 (12,941,924) (36,683,113) 19,642,402 $ 56,325,515 12,941,924 36,683,113 65,816,015 85,458,417 The accompanying notes are an integral part of the financial statements. 233 Indian River County, Florida Board of County Commissioners Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Secondary Roads Construction Fund For the Year Ended September 30, 2006 REVENUES Taxes Intergovernmental Charges for services Interest Miscellaneous Total revenues EXPENDITURES Current: Transportation Total expenditures Net change in fund balances Fund balances at beginning of year Fund balances at end of year 3,812,894 25,734,755 6,066,829 19,667,926 3,812,894 25,734,755 6,066,829 19,667,926 13,017 (21,824,734) (966,767) $ 20,857,967 (13,017) 21,824,734 25,073,992 $ _ $ - $ 24,107,225 0 The accompanying notes are an integral part of the financial statements. 234 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 3,493,411 $ 3,493,411 $ 3,526,774 $ 33,363 - 84,110 308,889 224,779 _ - 117,288 117,288 332,500 332,500 912,633 580,133 - - 234,478 234,478 3,825,911 3,910,021 5,100,062 1,190,041 3,812,894 25,734,755 6,066,829 19,667,926 3,812,894 25,734,755 6,066,829 19,667,926 13,017 (21,824,734) (966,767) $ 20,857,967 (13,017) 21,824,734 25,073,992 $ _ $ - $ 24,107,225 0 The accompanying notes are an integral part of the financial statements. 234 IJ N Indian River County, Florida Board of County Commissioners Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Transportation Fund For the Year Ended September 30, 2006 REVENUES Licenses and permits Intergovernmental Charges for services Special assessments Interest Miscellaneous Total revenues EXPENDITURES Current: General government Physical environment Transportation Total expenditures Excess of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) Variance with 593,591 1,055,605 642,077 Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) 1,530,836 14,509,877 15,652,149 $ 142,500 $ 313,032 $ 315,124 $ 2,092 2,582,240 2,609,348 3,258,039 648,691 518,225 174,475 240,672 66,197 142,500 142,500 107,528 (34,972) 36,100 36,100 181,511 145,411 23,750 733,500 409,498 (324,002) 3,445,315 4,008,955 4,512,372 503,417 593,591 1,055,605 642,077 413,528 649,799 657,613 298,457 359,156 13,266,487 13,938,931 1.2,408,095 1,530,836 14,509,877 15,652,149 13,348,629 2,303,520 (11,064,562) (11,643,194) (8,836,257) 2,806,937 Transfers in 11,048,573 11,048,573 11,048,573 - Transfers to constitutional officers - (1,000) - 1,000 Total other financing sources (uses) 11,048,573 11,047,573 11,048,573 1,000 Net change in fund balances (15,989) (595,621) 2,212,316 $ 2,807,937 Fund balances at beginning of year 15,989 595,621 3,254,027 Fund balances at end of year $ - $ - $ 5,466,343 The accompanying notes are an integral part of the financial statements. 235 Indian River County, Florida Board of County Commissioners Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Emergency Services District Fund For the Year Ended September 30, 2006 REVENUES Taxes Intergovernmental Charges for services Fines and forfeitures Interest Miscellaneous Total revenues EXPENDITURES Current: Public safety Debt service: Principal Interest and other fiscal charges Total expenditures Excess of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) Transfers in Transfers to constitutional officers Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year The accompanying notes are an integral part of the financial statements. 236 E � Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 22,669,913 $ 22,669,913 $ 23,046,264 $ 376,351 11,875 176,396 186,850 10,454 2,540,280 2,620,281 3,708,250 1,087,969 - - 7,000 7,000 128,250 128,250 529,362 401,112 11,105 457,721 35,073 (422,648) 25,361,423 26,052,561 27,512,799 1,460,238 21,819,347 31,598,643 25,581,501 6,017,142 89,043 89,043 - 89,043 90,210 76,824 - 76,824 21,998,600 31,764,510 25,581,501 6,183,009 3,362,823 (5,711,949) 1,931,298 7,643,247 - - 738,100 738,100 (500,407) (513,793) (513,792) 1 (500,407) (513,793) 224,308 738,101 2,862,416 (6,225,742) 2,155,606 $ 8,381,348 (2,862,416) 6,225,742 8,353,926 $ - $ - $ 10,509,532 The accompanying notes are an integral part of the financial statements. 236 E � Indian River County, Florida Board of County Commissioners Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Land Acquisition Fund For the Year Ended September 30, 2006 REVENUES Intergovernmental $ Interest Miscellaneous Total revenues EXPENDITURES Current: Physical environment Debt service: Interest and other fiscal charges Total expenditures Excess of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) Debt issuance Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year Budgeted Amounts Original Final $ 626,629 $ Variance with 1,400,000 Final Budget Actual Positive Amounts (Negative) 902,991 $ 276,362 599,391 599,391 1,400,000 21,497,963 7,958,903 13,539,060 580,243 579,792 451 1,400,000 22,078,206 8,538,695 13,539,511 (1,400,000) (21,451,577) (7,036,313) 14,415,264 - 20,000,000 49,996,735 29,996,735 - 20,000,000 49,996,735 29,996,735 (1,400,000) (1,451,577) 42,960,422 $ 44,411,999 1,400,000 1,451,577 562,054 $ - $ - $ 43,522,476 The accompanying notes are an integral part of the financial statements. 237 REVENUES Intergovernmental Interest Miscellaneous Total revenues EXPENDITURES Current: Public safety Physical environment Economic environment Human services Culture/recreation Total expenditures Excess of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) Transfers in Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year a County, Florida Indian River C y, i Board of County Commissioners Statement of Revenues, Expenditures, and a Changes in Fund Balances Budget and Actual Final Budget Federal/State Grants Fund For the Year Ended September 30, 2006 n REVENUES Intergovernmental Interest Miscellaneous Total revenues EXPENDITURES Current: Public safety Physical environment Economic environment Human services Culture/recreation Total expenditures Excess of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) Transfers in Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year The accompanying notes are an integral part of the financial statements. a 238 0 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 7,715,664 $ 12,463,402 $ 4,451,454 $ (8,011,948) _ - 326,509 326,509 - 24,837 108,500 83,663 7,715,664 12,488,239 4,886,463 (7,601,776) 1,894,194 1,370,101 906,477 463,624 5,605,806 4,647,294 222,329 4,424,965 - 1,686,905 151,176 1,535,729 215,664 4,783,939 3,933,878 850,061 7,715,664 12,488,239 5,213,860 7,274,379 _ - (327,397) (327,397) _ - 50,667 50,667 _ - 50,667 50,667 _ - - (276,730) $ (276,730) _ - (179,261) (455,991) The accompanying notes are an integral part of the financial statements. a 238 0 A N A e A iL Indian River County, Florida Board of County Commissioners Statement of Net Assets Proprietary Funds September 30, 2006 LIABILITIES Current liabilities (payable from current assets) Accounts payable 1,160,815 214,799 Enterprise Funds 138,441 2,874,958 381,152 Retainage payable Solid Waste - - Other 758 Claims payable Disposal Golf County Enterprise - Internal Due to other governments District Course Utilities Funds Total Service Funds ASSETS 32,397 2,500 - 34,897 Current assets: - 80,338 - 80,338 - Cash and cash equivalents $ 16,204,008 $ 10,299 $ 31,052,511 $ 5,039,389 $ 52,306,207 $ 13,342,194 Accounts receivable - net 405,081 - 3,177,064 77 3,582,222 1,471,457 Due from other governments 1,188,920 10,500 - - 1,199,420 18,378 Interest receivable - - 564,988 - 564,988 - Inventories 3,173 51,433 843,496 35,955 930,884 111,560 Prepaid expenses - - - - - 822,150 Current restricted assets: - 475,000 2,505,000 - Cash and cash equivalents 13,316,638 53,821 83,366,537 112,993 96,849,989 Total current assets 31,114,647 126,053 119,004,596 5,188,414 155,433,710 15,765,739 Non-current assets: 9,972,699 489,238 7,655,143 72,571 18,189,651 Unamortized bond costs - 367,924 3,311,815 - 3,679,739 Intangible assets - net 50,149 - - 72,135 50,149 14,067 Capital assets- non -depreciable 14,878,804 669,630 22,937,014 - 38,485,448 - Capital assets -depreciable 16,566,826 8,574,112 280,594,198 2,475,290 308,210,426 251,729 Accumulated depreciation (8,504,616) (1,607,291) (116,346,864) (563,754) (127,022,525) (147,466) Non-current restricted assets: 69,980 5,452,975 60,039,973 72,135 - 14,067 Special assessments receivable 11,312,863 6,315,991 2,291,821 390,409 2,291,821 6,303,065 Note receivable 333,333 333,333 Impact fees receivable 22,941,014 2,547,352 798,521 1,911,536 798,521 104,263 Liens receivable 161,920 161,920 Deposits - 1,626 16,261 - 17,887 - Total non-current assets 22,991,163 8,006,001 194,098,019 1,911,536 227,006,719 104,263 Total assets 54,105,810 8,132,054 313,102,615 7,099,950 382,440,429 15,870,002 LIABILITIES Current liabilities (payable from current assets) Accounts payable 1,160,815 214,799 1,360,903 138,441 2,874,958 381,152 Retainage payable - - - 758 758 Claims payable - - - 5,866,000 Due to other governments 8,889 5,931 11,641 26,461 - Unearned revenues 32,397 2,500 - 34,897 Capital leases - 80,338 - 80,338 - Accrued compensated absences 109,369 37,355 365,067 94,863 606,654 41,846 Total current liabilities (payable from current assets) 1,270,184 373,778 1,734,401 245,703 3,624,066 6,288,998 Current liabilities (payable from restricted assets) Accounts payable - - 1,678,189 - 1,678,189 - Retainage payable 3,173 - 245,254 248,427 Accrued interest payable - 14,238 253,429 267,667 Bonds payable - 475,000 2,505,000 2,980,000 Closure and maintenance costs payable 9,744,598 - - 9,744,598 Customer deposits 224,928 2,973,271 72,571 3,270,770 Total current liabilities (payable from restricted assets) 9,972,699 489,238 7,655,143 72,571 18,189,651 Non-current liabilities: Accrued compensated absences 69,980 71,428 128,858 72,135 342,401 14,067 Advance from other funds - 654,000 - - 654,000 - Capital leases 113,448 - 113,448 Bonds payable - net of discount and premium 4,614,099 59,911,115 64,525,214 Total non-current liabilities 69,980 5,452,975 60,039,973 72,135 65,635,063 14,067 Total liabilities 11,312,863 6,315,991 69,429,517 390,409 87,448,780 6,303,065 NET ASSETS Invested in capital assets, net of related debt 22,941,014 2,547,352 124,768,233 1,911,536 152,168,135 104,263 Restricted for: Debt service - 39,583 208,750 - 248,333 - Capital projects - - 88,823,634 - 88,823,634 - Unrestricted 19,851,933 (770,872) 29,872,481 4,798,005 53,751,547 9,462,674 Total net assets $ 42,792,947 $ 1,816,063 $ 243,673,098 $ 6,709,541 $ 294,991,649 $ 9,566,937 The accompanying notes are an integral part of the financial statements. 239 Indian River County, Florida Board of County Commissioners Statement of Revenues, Expenses, and Changes in Fund Net Assets Proprietary Funds For the Year Ended September 30, 2006 Enterprise Funds Solid Waste Disposal Golf County District Course Utilities OPERATING REVENUES Charges for services Charges for services pledged as security for revenue bonds Total operating revenues OPERATING EXPENSES Personal services Material, supplies, services and other operating Depreciation Total operating expenses Operating income (loss) NONOPERATING REVENUES (EXPENSES) Interest income Interest income pledged as security for revenue bonds Operating grants Gain on disposal of equipment Interest expenses Bond amortization expense Intangible amortization expense Loss on disposal of equipment Insurance recoveries Total nonoperating revenues (expenses) Income before transfers and capital contributions Capital contributions Capital contributions pledged as security for revenue bonds Transfers in Transfers out Change in net assets Total net assets - beginning Total net assets - ending $ 13,741,864 $ - $ - - 3,306,424 28,029,062 13,741,864 3,306,424 28,029,062 - (189,682) (3,147,584) 2,743,412 823,214 7,036,854 8,196,262 1,731,426 10,414,047 608,782 216,572 12,499,658 11,548,456 2,771,212 29,950,559 4,541,502 384,542 (494,019) 2,193,408 535,212 (1,921,497) 1,506,691 - - - 17,703 4,556,769 839,699 118,722 276,992 11,571 - 30,983 - (189,682) (3,147,584) - (95,113) (274,682) (9,867) - (15,000) - (2,300) - 2,348,094 (150,670) 1,427,478 4,541,502 384,542 (494,019) _ - 4,151,182 _ - 22,371,582 15,514 - 132,062 (126,193) (44,530) (3,100,735) 4,430,823 340,012 23,060,072 38,362,124 1,476,051 220,613,026 $ 42,792,947 $ 1,816,063 $ 243,673,098 The accompanying notes are an integral part of the financial statements. 240 J u Other Enterprise Funds Total Internal Service Funds $ 4,746,668 $ 18,488,532 $ 20,780,889 - 31,335,486 - 4,746,668 49,824,018 20,780,889 2,930,490 13,533,970 1,862,119 1,126,739 21,468,474 16,631,688 145,359 13,470,371 11,220 4,202,588 48,472,815 18,505,027 544,080 1,351,203 2,275,862 254,077 1,760,768 651,915 - 4,574,472 - - 1,235,413 394 - 42,554 - - (3,337,266) - - (369,795) - - (24,867) - - (2,300) - - - 1,104,116 254,077 3,878,979 1,756,425 798,157 5,230,182 4,032,287 258,354 4,409,536 - - 22,371,582 - 415,629 563,205 - (2,352,593) (5,624,051) (4,771,075) (880,453) 26,950,454 (738,788) 7,589,994 268,041,195 10,305,725 $ 6,709,541 $ '294,991,649 $ 9,566,937 241 Indian River County, Florida Board of County Commissioners Statement of Cash Flows Proprietary Funds For the Year Ended September 30, 2006 Enterprise Funds Solid Waste Disposal Golf County District Course Utilities CASH FLOWS FROM OPERATING ACTIVITIES (44,530) (2,968,673) 3,113,864 Cash received from customers $ 13,967,299 $ 3,307,454 $ 28,715,233 Cash paid to suppliers for goods and services (6,512,398) (1,653,133) (9,312,680 Cash paid to employees for services (2,717,923) (815,566) (7,532,866 Net cash provided by operating activities 4,736,978 838,755 11,869,687 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers Operating grants Insurance recoveries Net cash provided by (used in) noncapital financing activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Principal payments - bonds/notes Principal payments - capital leases Interest paid on long-term debt Payment to developer for long term loan Proceeds from sales of fixed assets Purchase of fixed assets Bond paying agent fees Bond issuance costs Capital contributed by others Proceeds from advance to other funds Payment for advance from other fund Net cash provided by (used in) capital and related financing activities CASH FLOWS FROM INVESTING ACTIVITIES Interest and dividends on investments Net cash provided by investing activities (110,679) (44,530) (2,968,673) 3,113,864 118,722 277,269 3,003,185 74,192 (2,691,404) - (460,000) (2,390,000) - (69,451) - - (99,966) (3,157,260) _ - (333,333) 16,100 213 317,841 (4,899,221) (42,996) (10,949,950) - (90,485) - _ - (71,387) _ - 13,519,126 - (160,000) - (4,883,121) (922,685) (3,064,963) 1,506,691 17,703 4,620,400 1,506,691 17,703 4,620,400 Net increase (decrease) in cash and cash equivalents 4,363,733 7,965 10,733,720 Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year Classified as: Current assets Restricted assets Totals 25,156,913 56,155 103,685,328 $ 29,520,646 $ 64,120 $ 114,419,048 $ 16,204,008 $ 10,299 $ 31,052,511 13,316,638 53,821 83,366,537 $ 29,520,646 $ 64,120 $ 114,419,048 1 0 0 The accompanying notes are an integral part of the financial statements. a 242 O Other Enterprise Internal Funds Total Service Funds $ 4,137,671 $ 50,127,657 $ 19,456,033 (1,186,241) (18,664,452) (16,693,896) (2,901,520) 49,910 (13,967,875) 17,495,330 (1,866,308) 895,829 (1,936,964) (5,060,846) (4,771,075) - 3,509,855 394 - - 1,104,116 (1,936,964) (1,550,991) (3,666,565) a - (2,850,000) - (69,451) - (3,257,226) - - (333,333) - 334,154 (133,104) (16,025,271) (104,642) - (90,485) a (71,387) _ - 13,519,126 - _ - 114,000 (160,000) (133,104) (9,003,873) 9,358 254,077 6,398,871 651,915 254,077 6,398,871 651,915 (1,766,081) 13,339,337 (2,109,463) 6,918,463 135,816,859 15,451,657 $ 5,152,3 82 $ 149,156,196 $ 13,342,194 $ 5,039,389 $ 52,306,207 $ 13,342,194 112,993 96,849,989 - $ 5,152,382 $ 149,156,196 $ 13,342,194 Continued 243 RECONCILIATION OF NET OPERATING INCOME(LOSS) NET CASH PROVIDED BY OPERATING ACTIVITIES Operating income (loss) $ 2,193,408 $ 535,212 $ (1,921,497) Adjustments to reconcile operating income to net cash provided by operating activities: Work in progress reclassified as expense Depreciation Capitalized self -incurred expenses (Increase) Decrease in assets: Accounts receivable Due from other governments Inventories Impact fees receivable Liens receivable Deposits Increase (Decrease) in liabilities: Accounts payable Claims payable Due to other governments Due to other funds Other deposits held in escrow Retainage payable Customer deposits Closure and maintenance costs payable Unearned revenues Accrued compensated absences Total adjustments Net cash provided by operating activities 485,056 - 685,368 608,782 216,572 12,499,658 - - (498,105) 134,901 - (534,090) Ll 82,806 - - - (12,153) (19,711) a - 982,601 - 11,308 (626) (16,261) n 401,456 a Indian River County, Florida - Board of County Commissioners - Statement of Cash Flows a Proprietary Funds 7,728 For the Year Ended September 30, 2006 223,852 Enterprise Funds - Solid Waste - Disposal Golf County 2,500 District Course Utilities 7,648 RECONCILIATION OF NET OPERATING INCOME(LOSS) NET CASH PROVIDED BY OPERATING ACTIVITIES Operating income (loss) $ 2,193,408 $ 535,212 $ (1,921,497) Adjustments to reconcile operating income to net cash provided by operating activities: Work in progress reclassified as expense Depreciation Capitalized self -incurred expenses (Increase) Decrease in assets: Accounts receivable Due from other governments Inventories Impact fees receivable Liens receivable Deposits Increase (Decrease) in liabilities: Accounts payable Claims payable Due to other governments Due to other funds Other deposits held in escrow Retainage payable Customer deposits Closure and maintenance costs payable Unearned revenues Accrued compensated absences Total adjustments Net cash provided by operating activities 485,056 - 685,368 608,782 216,572 12,499,658 - - (498,105) 134,901 - (534,090) Ll 82,806 - - - (12,153) (19,711) a - 982,601 - 11,308 (626) (16,261) n 401,456 89,225 451,971 - 1,847 - (37,648) - - 7,728 - 223,852 835,000 - - - 1,030 2,500 25,489 7,648 2,093 2,543,570 303,543 13,791,184 $ 4,736,978 $ 838,755 $ 11,869,687 NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES Change in fair value of investments $ (124,704) $ (1,236) $ (475,656) Contributed property, plant and equipment $ - $ - $ 12,834,878 Capital assets received from capital lease $ - $ 6,265 $ - a Capital assets purchased through accounts payable $ - $ - $ 234,889 Deferred interest on refunding bonds $ - $ - $ 2,944,661 The accompanying notes are an integral part of the financial statements. a 244 Other Enterprise Internal Funds Total Service Funds $ 544,080 $ 1,351,203 $ 2,275,862 - 1,170,424 - 145,359 13,470,371 11,220 - (498,105) - 335 (398,854) (1,323,200) - 82,806 (1,656) (1,217) (33,081) (6,092) - 982,601 - - 11,308 - - (16,887) (821,643) (46,116) 896,536 229,527 - - 536,000 (12,169) (10,322) - (609,332) (609,332) - - (37,648) - - 231,580 - - 835,000 - - 3,530 - 28,970 64,200 (4,189) (494,170) 16,144,127 (1,380,033) $ 49,910 $ 17,495,330 $ 895,829 $ (26,047) $ (627,643) $ (50,788) $ 258,354 $ 13,093,232 $ - $ - $ 6,265 $ - $ - $ 234,889 $ - $ - $ 2,944,661 $ - 245 Indian River County, Florida Board of County Commissioners Statement of Fiduciary Assets and Liabilities September 30, 2006 ASSETS Cash and cash equivalents Total assets LIABILITIES Accounts payable Other deposits held in escrow Total liabilities $ 4,522,661 $ 4,522,661 $ 283,499 4,239,162 $ 4,522,661 The accompanying notes are an integral part of the financial statements. 246 1 Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30, 2006 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Board of County Commissioners (the Board") is a County agency and a local governmental entity pursuant to Article VIII, Section 1(e) of the Constitution of the State of Florida. For financial statement and reporting purposes, the Board does not meet the definition of a legally separate organization and is not considered to be a component unit. The Board is considered to be a part of the primary government of Indian River County. The financial statements contained herein represent the financial transactions of the Board only. Li The following is a summary of the significant accounting principles and policies used in the preparation of the accompanying financial statements. A. Reporting Entity The concept underlying the definition of the reporting entity is that elected officials are accountable to their constituents for their actions. The reporting entity's financial statements should allow users to distinguish between the primary government (the Board) and its component units. However, some component units, because of the closeness of their relationship with the Board, should be blended as though they are part of the Board. Otherwise, most component units should be discretely presented. As required by generally accepted accounting principles, the financial reporting entity consists of (1) the primary government (the Board), (2) organizations for which the Board is financially accountable, and (3) other organizations for which the nature and significance of their relationship with the Board are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete. The Board is financially accountable if it appoints a voting majority of the organization's governing body and (a) it is able to impose its will on that organization or (b) there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on, the Board. The Board is financially accountable if an organization is fiscally dependent on the Board regardless of whether the organization has (a) a separately elected governing board, (b) a governing board appointed by a higher level of government, or (c) a jointly appointed board. Based on these criteria, Board management examined all organizations, which are legally separate in order to determine which organizations, if any should be included in the Board's financial statements. Management determined that the Solid Waste Disposal District and the Emergency Services District were the only organizations that should be included in the Board's financial statements as component units. t w Blended Component Units Solid Waste Disposal District (SWDD) — Created pursuant to County Ordinance 87-67, the Board of County Commissioners serves as the Board for the SWDD and sets the non ad valorem assessment fees for the SWDD. Although legally separate, the SWDD is appropriately blended as a proprietary fund type (enterprise) component unit into the primary government. 247 Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30, 2006 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued A. Reporting Entity — Continued Emergency Services District (EMS) — Created pursuant to County Ordinance 90-25, the Board of County Commissioners serves as the Board for the EMS and sets the millage rate for EMS. Although legally separate, the EMS is appropriately blended as a governmental fund type (special revenue) component unit into the primary government. B. Fund Financial Statements The underlying accounting system of the Board is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self -balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. Fund financial statements for the Board's governmental, proprietary, and fiduciary funds are presented. Governmental accounting standards set forth minimum criteria (percentage of the assets, liabilities, revenues or expenditures/expenses of either fund category and the governmental and enterprise combined) for the determination of major funds. These statements display information about major funds individually n and nomajor funds in the aggregate for governmental and enterprise funds. The Statement of Fiduciary Net Assets presents assets held by the Board in a custodial capacity for other individuals or organizations. When both restricted and unrestricted resources are combined in a fund, expenses are considered to be paid first from restricted resources, and then from unrestricted resources. Governmental Funds O Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectable within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the Board considers revenues to be available if they are collected within 45 days after the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. Franchise fees, licenses, sales taxes, gas taxes, operating and capital grants, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable only when cash is received by the Board. 248 Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30, 2006 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued B. Fund Financial Statements — Continued Under the current financial resources measurement focus, only current assets and current liabilities are generally included on the balance sheet. The reported fund balance is considered to be a measure of "available spendable resources". Governmental funds operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of "available spendable resources" during a period. Non-current portions of long-term receivables due to governmental funds are reported on their balance sheets in spite of their spending measurement focus. Non-current portions of notes long-term advances and notes to other funds are offset by fund balance reserve accounts. Because of their spending measurement focus, expenditure recognition for governmental fund types excludes amounts represented by non-current liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities. Amounts expended to acquire capital assets are recorded as expenditures in the year that resources were expended, rather than as fund assets. The proceeds of long-term debt are recorded as another financing source rather than as a fund liability. Debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Proprietary Funds The County's enterprise and internal service funds are proprietary funds. In the fund financial statements, proprietary funds are presented using the accrual basis of accounting. Revenues are recognized when they are earned and expenses are recognized when the related goods or services are delivered. In the fund financial statements, proprietary funds are presented using the economic resources measurement focus. This means that all assets and all liabilities (whether current or non-current) associated with their activity are included on their balance sheets. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in total net assets. The Board applies all GASB Pronouncements as well as all FASB Statements and Interpretations, APB Opinions and Accounting Research Bulletins, issued after November 30, 1989, which do not conflict with or contradict GASB Pronouncements. Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Non-operating revenues, such as subsidies, taxes, and investment earnings result from nonexchange transactions or ancillary activities. Ii Amounts paid to acquire capital assets are capitalized as assets in the fund financial statements, rather than reported as an expenditure. Proceeds of long-term debt are recorded as a liability in the fund financial statements, rather than as another financing source. Amounts paid to reduce long-term indebtedness are reported as a reduction of the related liabilities, rather than as an expense. 249 Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30, 2006 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued B. Fund Financial Statements - Continued Fiduciary Fund Agency Fund — The Agency Fund is custodial in nature and does not involve measurement of the results of operations. It is accounted for on the accrual basis. Governmental Maior Funds General Fund — The General Fund is the general operating fund of the County. It is used to account for all financial resources, except those required to be accounted for in another fund. Impact Fees Fund — The Impact Fees Fund accounts for the receipt of various impact fees. Funds are used a for the construction of roads and bridges, correctional, public safety, library, park, public building, and solid waste facilities. Secondary Roads Construction Fund — The Secondary Roads Constructions Fund accounts for the expenditures of road and bridge construction. Financing is provided by collections of the local option gas n tax. I I Transportation Fund — The Transportation Fund accounts for expenditures incurred for the maintenance and repair of County roads. Financing is provided by the Stn and 6th cent gas tax, County gas tax and transfers from the General Fund. Emergency Services District Fund — The Emergency Services District Fund accounts for the expenditures of providing fire protection and advanced life support to the County. Ad valorem taxes are the primary source of revenue. Land Acquisition Fund — To account for expenditures incurred in the purchase of environmentally sensitive land, preservation of water sources, historic sites and agricultural lands. Financing is provided by bond proceeds and state grants. Federal/State Grants Fund — To account for revenues and expenditures of various grants from Federal and State agencies, including those grants designated for disaster recovery. Optional Sales Tax Fund — The Optional Sales Tax Fund accounts for revenue generated by the local option one- cent sales tax and some capital grants that use the local option one -cent sales tax as matching funds. Monies are used for various capital projects. Proprietary Major Funds Solid Waste Disposal District — The Solid Waste Disposal District Fund accounts for the revenue, expenses, assets and liabilities associated with the County landfill. u 250 i Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30, 2006 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued B. Fund Financial Statements - Continued Golf Course Fund — The Golf Course Fund accounts for the revenues, expenses, assets and liabilities aassociated with the Golf Course. County Utilities Fund — The County Utilities Fund accounts for the revenues, expenses, assets and (� liabilities associated with the County water and sewer system. Other Fund Types Internal Service Funds — Internal Service Funds account for Fleet Management, Self Insurance and GIS services provided to other departments of the County on a cost reimbursement basis. Agency Fund — The Agency Fund is used to account for assets held in a custodial capacity on behalf of other governments and individuals. C. Cash and Cash Equivalents The Board maintains a cash and investment pool that is available for use by all funds. Earnings for the pooled investments are allocated to the respective funds based on applicable cash participation by each fund. The investment pool is managed such that all participating funds have the ability to deposit and withdraw cash as if they were demand deposit accounts. Therefore, all balances representing participants' equity in the investment pools are classified as cash and equivalents for financial statement purposes. In addition, longer-term investments are held by several of the Board's funds and are, therefore, reported as current restricted cash and cash equivalents on these statements. D. Investments Investments consist of U.S. Treasury Securities, U.S. Government Agency Securities, a guaranteed investment contract, the Local Government Surplus Funds Trust Fund Investment Pool and the Florida Local Government Investment Trust Fund. Investments are reported at fair value in the balance sheet. E. Allowance for Doubtful Accounts The Board provides an allowance for water and sewer accounts receivables that may become uncollectable. At September 30, 2006, this allowance was $498,324. No other allowances for doubtful accounts are maintained since other accounts receivable are considered collectable as reported at September 30, 2006. F. Inventories D Inventories are valued at cost, which approximates market, using the "first -in, first -out" method of accounting. Inventories of governmental funds are recorded as expenditures when consumed rather than when purchased. 251 Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30, 2006 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued G. Prepaid Expenses This account represents prepayments for services that will be used in future periods. The Board's policy is to record the expenditure for the services when they are used rather than when the cash is disbursed. H. Intangible Assets Leachate disposal rights were purchased by the Solid Waste Disposal District Fund from the County Utilities Fund for removal and transportation of leachate from the County landfill to the sewer system. These assets are being amortized using the straight-line method over the estimated useful life of 20 years. I. Capital Assets Capital Assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, l J right-of-ways, water and sewer distribution systems and similar items), are reported in the applicable governmental or business -type activities column in the government -wide financial statements. The County defines capital assets as assets with an initial, individual cost of $750 or more and an estimated useful life in excess of one year. Except for roads and bridges constructed prior to October 1, 1981, assets are recorded at historical cost. Roads and bridges constructed prior to October 1, 1981 are reported at estimated historical cost. Donated capital assets are recorded at estimated fair market value at the date of donations. r, The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend its useful life are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business -type activities is included as part of the capitalized value of the assets constructed. The Board holds legal title to the capital assets used in the operations of the Board, Clerk of the Circuit Court, Property Appraiser, Supervisor of Elections and Tax Collector, and is accountable for them under Florida Law. Capital assets used by the Board's governmental funds are reported in the financial statements of the u County. Capital assets of the Board's enterprise and internal service funds are reported in the Proprietary Funds financial statements. 252 a Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30, 2006 ONOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued I. Capital Assets — Continued Property, plant, and equipment of the primary government, as well as the component units, are depreciated n using the straight-line method over the following estimated useful lives: Assets Year Building and improvements 25-50 Machinery and equipment 3-10 Utility distribution systems 25-50 Road and bridge infrastructure 20-50 J. Capitalization of Interest Li Interest costs related to bond issues are capitalized during the construction period. These costs are netted against applicable interest earnings on construction fund investments. During the current period, the aCounty did not have any capitalized interest. K. Unamortized Bond Costs Bond issuance costs and legal fees associated with the issuance of Proprietary Fund revenue bonds are amortized over the life of the bonds using the straight-line method of accounting. L. Unamortized Bond Discounts and Premiums Bond discounts and premiums associated with the issuance of Proprietary Fund revenue bonds are amortized according to the straight-line method. For financial reporting, unamortized bond discounts and premiums are netted against the applicable long-term debt. M. Landfill Closure Costs Under the terms of current state and federal regulations, the Solid Waste Disposal District (SWDD) is required to place a final cover on closed landfill areas, and to perform certain monitoring and maintenance functions for a period of up to thirty years after closure. The SWDD recognizes these costs of closure and post -closure maintenance over the active life of each landfill area, based on landfill capacity used during the period. Required obligations for closure and post -closure costs are recognized in the Solid Waste n Disposal District Enterprise Fund. N. Unearned Revenues In accordance with the modified accrual basis of accounting for governmental fund types, revenues which are measurable but not available, are reported as unearned revenues. The unearned revenues will be recognized as revenue in the fiscal year they are earned or become available. 253 Indian River County, Florida Board of County Commissioners a Notes To Financial Statements Year Ended September 30, 2006 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued O. Accrued Compensated Absences The Board records compensated absences in the governmental fund types as an expenditure for the amount accrued during the year that would normally be liquidated with expendable available financial resources. The liability is reported in the financial statements of the County. Proprietary fund types accrue compensated absences in the period they are earned. P. Obligation for Bond Arbitrage Rebate Pursuant to Section 148(f) of the U.S. Internal Revenue Code, the Board must rebate to the United States Government the excess of interest earned from the investment of certain debt proceeds and pledged revenues over the yield rate of the applicable debt. The Board has no arbitrage liability outstanding as of September 30, 2006. Q. Budgets and Budgetary Accounting The Board uses the following procedures in establishing the budgetary data reflected in the financial statements: 1. The constitutional officers submit, at various times, to the Board and to certain divisions within the Department of Revenue, State of Florida, a proposed operating budget for the fiscal year commencing the following October 1. The operating budget includes proposed expenditures and the means of financing them, as set forth in Chapter 129 of the Florida Statutes. 2. The Department of Revenue, State of Florida, has the final authority on the operating budgets for the Tax Collector and the Property Appraiser included in the General Fund. 3. Constitutional officers, all departments controlled by the Board, and outside state and local agencies submit their proposed budgets to the Office of Management and Budget for assistance, review and compilation. The County Administrator then reviews all County departments, state agencies, and nonprofit organization's budgets and makes his budget recommendation to the Board. 4. On or before July 15 of each year, the County Administrator and the Director of the Office of Management and Budget, as the Board's designated budget officer, submit to the Board a tentative budget for the ensuing fiscal year. The tentative budget includes proposed expenditures and the means of financing them. The Board then holds workshops to review the tentative budget by fund on a departmental level. 5. During September, public hearings are held pursuant to Section 200.065 of the Florida Statutes in order for the Board to receive public input on the tentative budget. At the end of the last public hearing, the Board enacts ordinances to legally adopt the budgets at the fund level for all governmental and proprietary fund types. The budgets legally adopted by the Board set forth the anticipated revenues by source and the appropriations by function. 254 a Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30, 2006 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued Q. Budgets and Budgetary Accounting - Continued 6. Formal budgetary integration on an object level is used as a management control device for the governmental and proprietary funds of the County. Management is authorized to transfer budgeted amounts between objects and departments in any fund as long as management does not exceed the total appropriations of a fund. Board approval to amend the budget is only required when unanticipated revenues are received that management wishes to have appropriated, thereby increasing the total appropriations of a fund. 7. Budgets for the governmental and proprietary fund types are adopted on a basis consistent with generally accepted accounting principles. NOTE 2 - CASH AND CASH EQUIVALENTS The Board maintains a cash and investment pool that is available for use by all funds except those whose cash and investments must be segregated due to bond covenants or other legal restrictions. A. Deposits At September 30, 2006, the carrying value of the Board's deposit with banks was $9,757,013 and the bank balance was $15,315,351. All the deposits were covered by the FDIC or collateralized in accordance with Section 280.01, Florida Statutes, also known as the "Florida Security for Public Deposits Act". 255 8. Appropriations for the Board lapse at the close of the fiscal year. 9. The following is. a comparison of the appropriations to total expenses for the proprietary funds for the fiscal year ended September 30, 2006: Variance 0 Appropriations Total Expenses Positive (negative Primary Government Enterprise Funds: Solid Waste Disposal District $ 12,940,224 $ 11,689,045 $ 1,251,179 Shooting Range 413,454 412,759 695 Golf Course County Building 3,352,742 6,510,416 3,103,050 6,142,422 249,692 367,994 County Utilities 42,946,200 36,491,470 6,454,730 Internal Service Funds: Fleet Management 3,546,011 3,435,782 110,229 Self Insurance 23,241,464 19,784,043 3,457,421 GIS 395,000 56,277 338,723 NOTE 2 - CASH AND CASH EQUIVALENTS The Board maintains a cash and investment pool that is available for use by all funds except those whose cash and investments must be segregated due to bond covenants or other legal restrictions. A. Deposits At September 30, 2006, the carrying value of the Board's deposit with banks was $9,757,013 and the bank balance was $15,315,351. All the deposits were covered by the FDIC or collateralized in accordance with Section 280.01, Florida Statutes, also known as the "Florida Security for Public Deposits Act". 255 Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30, 2006 NOTE 2 - CASH AND CASH EQUIVALENTS - Continued B. Accrued Interest Interest earnings on U.S. Treasury Notes and government agency bonds are recorded in the cash and investment pool and then allocated to each fund based on each fund's average monthly balance. Interest received within 45 days of September 30, in the amount of $1,861,432, was accrued and allocated to the funds based on their average monthly balance for September. C. Investments On August 17, 2004, the Indian River County Board of County Commissioners formally adopted an investment policy pursuant to Section 218.415, Florida Statutes, that established permitted investments, asset allocation limits, issuer limits, credit ratings requirements and maturity limits to protect the County's cash and investments. As of September 30, 2006, the Board had the following investments: Weighted Average Maturity Portfolio Credit Investment Type Fair Value In Years Percentage Risks Fixed Rate Debt Investments: U.S. Treasuries $ 65,723,535 1.11 15.2 None U.S. Agencies:** Federal Farm Credit Bureau 82,273,908 1.20 19.1 AAA Federal Home Loan Bank 80,714,994 0.98 18.7 AAA Federal Home Loan Mortgage 55,771,848 1.18 12.9 AAA Federal National Mortgage Assoc. 69,71.9,810 1.43 16.1 AAA Guaranteed Investment Contact 3,139,285 17.92 0.7 AA -/Al+ Other Fixed Rate Investments: Local Governmental Surplus Funds Trust Funds 59,049,388 .08 13.6 Not Rated Florida Local Government Investment Trust Fund 16,302,582 .08 3.7 AAA and S-1 * Total Fair Value 432.695.350 100.0 Portfolio weighted average maturity 1.09 * AAA credit quality, S-1 Market Volatility * * The weighted calculation considers the investments are carried until full maturity (i.e. call dates are not considered). 256 U Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30, 2006 NOTE 2 - CASH AND CASH EQUIVALENTS - Continued C. Investments - Continued Interest Rate Risk The Board's investment policy limits interest rate risk by attempting to match investment maturities with known cash needs and anticipated cash flow requirements. All investments must have stated maturities to ten (10) years or less and no more than 25% of the portfolio shall be invested in instruments with stated final maturities greater than five (5) years. The portfolio shall have securities with varying maturity and at least 10% of the portfolio shall be invested in readily available funds. Credit Risks State law (Section 218.415 of the Florida State Statutes) and the Board's investment policy limit investments to the following: l 1 1 Upon issuance of the Water and Sewer Bonds, Series 1993A and 1993B, the Board invested the required sinking fund reserve monies, $3,139,285, in a guaranteed investment contract with AIG Matched Funding Corporation. This contract is for the life of the bonds and has a rate of earnings slightly less than the arbitrage yield of the bonds. 257 1. Direct obligations of the United States Treasury; l l 2. State of Florida Local Government Surplus Trust Fund (SBA); 3. Florida Local Government Investment Trust Fund (FLGIT); 4. Interest-bearing time deposits or savings in qualified public depositories as defined in Section 280.02, Florida Statutes; 5. Federal agencies and instrumentalities; 6. Securities of, or other interests in, any open-end or closed-end management -type investment company or investment trust registered under the Investment Company Act of 1940, 15 U.S.C. ss. 80a-1 et seq., as amended from time to time, provided that the portfolio of such investment company aor investment trust is limited to obligations of the United States Government or any agency or instrumentality thereof and to repurchase agreements fully collateralized by such United States Government obligations, and provided that such investment company or investment trust takes delivery of such collateral either directly or through an authorized custodian; 7. Securities and Exchange Commission registered money market funds with the highest credit quality 8. rating from a nationally recognized rating agency; Repurchase agreements with a term of one year or less collateralized by direct obligations of the United States Government which have maturities of three (3) years or less and a market value 103% n or more of the repurchase amount. l 1 1 Upon issuance of the Water and Sewer Bonds, Series 1993A and 1993B, the Board invested the required sinking fund reserve monies, $3,139,285, in a guaranteed investment contract with AIG Matched Funding Corporation. This contract is for the life of the bonds and has a rate of earnings slightly less than the arbitrage yield of the bonds. 257 Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30, 2006 NOTE 2 - CASH AND CASH EQUIVALENTS - Continued C. Investments - Continued Concentration Risk The Board's investment policy has established asset allocation and issuer limits to reduce concentration of credit risk in the Board's investment portfolio. The Board's investment policy does not allow for more than 20% of the entire portfolio to be invested in any one issuer, with the exception of United States Treasury Obligations and state authorized pools. No more than 10% of the portfolio may be placed in certificates of deposit and no more than $3 million of the portfolio may be placed in certificates of deposit with any one financial institution. With the exception of state authorized pools, nor more than 10% of the portfolio may be placed in any one money market fund. Custodial Credit Risk The Board's investment policy pursuant to Section 218.415 (18), Florida Statutes requires securities to be a registered and shall be held with a third party custodian and all securities purchased by, and all collateral obtained by the Board shall be held in the name of the Board. The securities must be held in an account separate and apart from the assets of the financial institution. As of September 30, 2006, the Board's investment portfolio in U.S. Treasuries and U.S. Agencies was held by the Bank of New York. NOTE 3 - PROPERTY TAX REVENUES Taxable values for all property are established as of January 1, which is the date of lien, for the fiscal year starting October 1. Property tax revenues recognized for the 2005-2006 fiscal year were levied in October, 2005. All taxes are due and payable on November 1 or as soon as the assessment roll is certified and delivered to the Tax Collector. Discounts are allowed for early payment at the rate of 4% in November, 3% in December, 2% in January, and 1% in February. Taxes paid in March are without discount. All unpaid taxes become delinquent as of April 1. Virtually all unpaid taxes are collected via the sale of tax certificates on or prior to June 1; therefore, there were no material taxes receivable at fiscal year end. i A A 258 O Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30, 2006 NOTE 4 — CAPITAL ASSETS A. Governmental Fund Type Capital Assets A summary of changes in the governmental fund type capital assets is as follows: Depreciation expense for governmental fund type capital assets is not reported in the financial statements of the Board. Depreciation expense is reported in the financial statements of the County. Please refer to the County notes for a more detailed explanation of the County's policy on depreciation. Land additions include $1,650,655 of land parcels contributed to the Board by developers for future use as mitigation, emergency services, and public school sites. B. Proprietary Fund Type Capital Assets A summary of changes in the proprietary fund type capital assets is as follows: Building Oand Construction Land Improvements Equipment In Progress Balance at October 1, 2005 Additions Deletions Less: Buildings Accumulated 1,618,007 27,040,236 Total 11,756,363 Balance at and Impr- September 30, 2006 Construction Capital 18,368,128 288,383,727 Land ovements Equipment In Progress Infrastructure Assets Balance at 10/1/2005 $ 74,109,790 $ 72,864,290 $ 36,345,514 $ 43,912,851 $ 3,575,067 $ 230,807,512 Additions 9,557,822 6,518,994 5,478,168 45,615,122 - 67,170,106 Deletions (216,299) - (2,765,843) (8,592,355) - (11,574,497) Balance at 9/30/2006 $ 83,451,313 $ 79,383,284 $ 39,057,839 $ 80,935,618 $ 3,575,067 $ 286,403,121 Depreciation expense for governmental fund type capital assets is not reported in the financial statements of the Board. Depreciation expense is reported in the financial statements of the County. Please refer to the County notes for a more detailed explanation of the County's policy on depreciation. Land additions include $1,650,655 of land parcels contributed to the Board by developers for future use as mitigation, emergency services, and public school sites. B. Proprietary Fund Type Capital Assets A summary of changes in the proprietary fund type capital assets is as follows: Building Oand Construction Land Improvements Equipment In Progress Balance at October 1, 2005 Additions Deletions Total Capital Assets $ 17,037,502 $ 261,343,491 Less: $ 23,158,207 Accumulated 1,618,007 27,040,236 depreciation 11,756,363 Balance at (287,381) - September 30, 2006 Total Capital Assets $ 17,037,502 $ 261,343,491 $ 18,054,544 $ 23,158,207 $ 319,593,744 1,618,007 27,040,236 3,171,289 11,756,363 43,585,895 (287,381) - (1,147,405) (14,797,250) (16,232,036) 18,368,128 288,383,727 20,078,428 20,117,320 346,947,603 - (114,636,122) (12,533,869) - (127,169,991) $ 18,368,128 $ 173,747,605 $ 7,544,559 $ 20,117,320 $ 219,777,612 259 Indian River County, Florida Board of County Commissioners Notes To Financial Statements a Year Ended September 30, 2006 NOTE 5 — RESTRICTED CASH AND CASH EQUIVALENTS AND INVESTMENTS a Various bond covenants, resolutions and state regulations require that the Board restrict cash and cash a equivalents and investments within the Enterprise Funds. Restricted cash and cash equivalents and invest- ments are as follows: Solid Waste Other Disposal Golf County Enterprise District Course Utilities Funds Total Sinking Funds $ - $ 53,821 $ 4,449,904 $ - $ 4,503,725 Renewal and Replacement 3,347,112 - 3,485,928 - 6,833,040 Customer Deposits 224,928 - 2,973,271 72,570 3,270,769 Capital Construction - - 72,457,434 40,423 72,497,857 Closure and Maintenance Cost 9,744,598 - - - 9,744,598 Total $ 13,316,638 $=53,821 $ 83,366,537 $ 112,993 $ 96,849,989 Solid Waste Other Disposal Golf County Enterprise District Course Utilities Funds Total Accounts payable $ - $ - $1,678,189 $ - $1,678,189 Retainage payable 3,173 - 245,254 - 248,427 a Accrued interest payable - 14,238 253,429 - 267,667 Bonds payable (current portion) - 475,000 2,505,000 - 2,980,000 a Closure & maintenance - 9,744,598 costs payable 9,744,598 - - Customer deposits 224,928 - 2,973,271 72,571 3,270,770 Total $9,972,699 $489,238 $7,655,143 $72,571 $18,189,651 a 0 0 260 O Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30, 2006 aNOTE 7 INTERFUND BALANCES - Interfund balances at September 30, 2006, consisted of the following: Amounts due from the above funds represent short-term cash loans that will be repaid within the next twelve months. Due to General Fund from: a Major governmental fund: Federal/State Grants $ 105,207 Nonmajor governmental fund: Community Development Block Grant 125,000 Total 230 207 aInterfund advances at September 30, 2006, consisted of the following: a Due to Secondary Roads Fund from: Golf Course Fund $ 654,000 Due to Optional Sales Tax Fund from: General Fund 987,105 Total 105 SL641._105 0 Both amounts are considered long-term advances expected to be aid g p p over the course of several ears. Y Reservations of fund balance have been established for these amounts. a 261 Indian River County, Florida a Board of County Commissioners Notes To Financial Statements a Year Ended September 30, 2006 NOTE 8 - INTERFUND TRANSFERS Interf ind transfers for the year ended September 30, 2006, consisted of the following: Transfers to General Fund from: Self Insurance Fund $ 3,705,837 Golf Course Fund 44,530 Homeless Assistance Center Fund 23,741 Subtotal 3,774,108 a Transfers to Transportation Fund from: General Fund Transfers to Emergency Services District Fund from: 11,048,573 Self Insurance Fund 738,100 Transfers to Federal/State Grants Fund from: Homeless Assistance Center Fund 50,667 Transfers to Optional Sales Tax Fund from: General Fund 807,488 Solid Waste Disposal District Fund 126,193 Building Department Fund 25352,593 Utilities Fund 3,100,735 Subtotal 6,387,009 Transfers to Solid Waste Disposal District Fund from: Self Insurance Fund 15,514 Transfers to Utilities Fund from: Self Insurance Fund 132,062 Transfers to Nonmajor governmental funds from: General Fund 182,122 a Transfers to Nonmajor enterprise funds from: General Fund 195,644 Shooting Range Capital Project Fund 40,423 Self Insurance Fund 179,562 Total transfers 22,743.784 (� Transfers are used to 1) provide matching funds for grants, 2) use unrestricted general` fund revenues to finance transportation activities which must be accounted for in another fund, 3) use unrestricted general fund revenues for beach restoration activities which must be accounted for in another fund, and 4) use unrestricted general fund revenues to subsidize a business activity, the Shooting Range, and 5) allocate hurricane insurance proceeds to the appropriate fund, 6) transfer balance of completed capital projects funds, and 7) provide funding for construction of the County Administration Building. 7 262 a Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30, 2006 NOTE 9 — RECEIVABLE AND PAYABLE BALANCES Receivables Receivables at September 30, 2006 Proprietary Funds: Solid Waste Various Due from other $ 1,594,001 Governmental Funds Accounts Government Total General $ 506,994 $ 5,230,915 $ 5,737,909 Impact Fees - 257,663 257,663 Secondary Roads Construction 76,300 410,487 486,787 Transportation 783 877,292 878,075 Emergency Services - 291,748 291,748 Federal/State Grants - 416,557 416,557 Optional Sales Tax 26,175 1,025,418 1,051,593 Other Government 46,771 357,415 404,186 Total Government Funds 657 023 8.867.495 9.524,518 Proprietary Funds: Solid Waste $ 405,081 $ 1,188,920 $ 1,594,001 Golf Course - 10,500 10,500 Utilities 3,177,064 - 3,177,064 Other Proprietary 1,471,534 18,378 1,489,912 Total Proprietary Funds 5 053 079 1 217 798 6 271 477 On May 2, 2006, the Board approved an incentive loan agreement with Adrian Investments regarding their development of the Indian River Park of Commerce. This agreement resulted in a total $1.5 million note receivable due to the Board and will be repaid by Adrian Investments in payments upon closing of the conveyance of each lot in the park. The total balance will be repaid over ten years. During FY 2006, the Board loaned the initial $1.0 million on the above project. The remaining $500,000 will be paid to Adrian Investments upon final plat approval or issuance of a certificate of completion. Funding for the $1.0 million note receivable was from the following funds: $666,667 from the Secondary Roads Construction Fund and $333,333 from the Utilities Fund. The Board has not engaged in any short-term debt activity during the year other than that listed in Note 7. 11 263 Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30, 2006 NOTE 9 - RECEIVABLE AND PAYABLE BALANCES - Continued Payables Payables at September 30, 2006, were as follows: Governmental Funds: General Impact Fees Secondary Roads Construction Transportation Emergency Services Land Acquisition Federal/State Grants Optional Sales Tax Other Government Total Government Funds Proprietary Funds Payable from current assets: Solid Waste Golf Course Utilities Other Payable from restricted assets: Solid Waste Utilities Total Proprietary Funds Accounts Payable $ 59,210 $ - $ 1,160,815 Salaries and Retainage Total Vendors Benefits Pa able Payables $ 855,770 $ 320,441 $ 1,575 $ 1,177,756 1,051,535 1,324 426,123 1,478,982 1,588,324 9,445 198,163 1,795,932 177,034 192,035 704 369,773 416,038 397,093 141 813,272 55,017 - - 55,017 570,698 - 22,035 592,733 4,257,789 2,115 2,044,578 6,304,482 1,565,733 16,382 207,789 1,789,904 10,537,938 93&805 2,901,108 $ 14,377,851 n I n � $ 1,101,605 $ 59,210 $ - $ 1,160,815 198,305 16,494 - 214,799 1,193,483 167,420 - 1,360,903 439,435 80,158 758 520,351 O - - 3,173 3,173 1,678,189 - 245,254 $ 249,185 1,923,443 $5,1 3,484 4,611,017 $323,282 264 a Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30, 2006 NOTE 10 — LONG-TERM LIABILITIES A. Enterprise Fund Bonds Payable Recreational (Golf Course) Revenue Refunding Bonds, Series 2003 Purpose - On October 15, 2003, the Series 2003 bonds were issued to legally redeem $6,735,000 of the County's outstanding Recreational Revenue Bonds, Series 1993. The Series 2003 bonds are being issued by the County to provide funds, together with $583,790, to retire all of the outstanding 1993 Series bonds and to pay for all bond issuance costs. Pledge of Revenue - The revenue bonds are collateralized by a lien on the .net revenues derived from the operations of the golf course, racetrack and Jai Alai Fronton funds, and seven percent of the half -cent sales tax accruing annually to the County. The aggregate difference in debt service between the Series 1993 debt ($9,284,290) and Series 2003 debt (8,060,911) is $1,223,379. The net economic gain was $348,450. Bonds Issued - At September 30, 2006, the revenue bonds consisted of the following: Water and Sewer Revenue Bonds Series 1993A Purpose - The Series 1993 bonds were issued to legally decrease all of the County's outstanding Water and Sewer Revenue and Refunding Bonds, Series 1986 and 1986A, Series 1989, Series 1991, and Special Assessment Revenue Bonds, Series 1989 and Series 1990, and to provide funds to make certain capital improvements to the utility system. Pledge of Revenues - The revenue bonds are collateralized by a pledge of all net revenues derived from the operation of the system, and certain surcharges and special assessments. 265 Outstanding at Interest Rates September 30, Description 2003 Recreational Revenue and Date Maturity Issue 2006 2.00 — 4.125% 9/1/16 $ 6,455,000 $ 5,135,000 Refunding Bonds 3/1 and 9/1 Less: Current Portion of bonds Unamortized Bond Discount 475,000 45,901 Long -Term Portion of bonds $ 4,614,099 Optional Redemption - The revenue bonds, maturing on or after September 1, 2014, are subject to redemption prior to maturity, at the 'option of the County on and after September 1, 2013, in whole or in part, at any time thereafter at the redemption price of par, plus interest accrued to the date of redemption. Water and Sewer Revenue Bonds Series 1993A Purpose - The Series 1993 bonds were issued to legally decrease all of the County's outstanding Water and Sewer Revenue and Refunding Bonds, Series 1986 and 1986A, Series 1989, Series 1991, and Special Assessment Revenue Bonds, Series 1989 and Series 1990, and to provide funds to make certain capital improvements to the utility system. Pledge of Revenues - The revenue bonds are collateralized by a pledge of all net revenues derived from the operation of the system, and certain surcharges and special assessments. 265 Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30, 2006 NOTE 10 - LONG-TERM LIABILITIES - Continued A. Enterprise Fund Bonds Payable — Continued Water and Sewer Revenue Bonds Series 1993A - Continued Bonds Issued — At September 30, 2006 the revenue bonds consisted of the following: Description Water and Sewer Revenue Bonds, Series 1993A Less: Current Portion of bonds Unamortized Bond Discount Long -Term Portion of bonds Interest Rates and Date Maturity 2.60-6.50% 3/1 and 9/1 2024 Outstanding at September 30, Issue 2006 $ 47,190,000 $ 35,235,000 1,230,000 1,053,624 $ 32,951,376 Mandatory Redemption - The Series 1993A term bonds are subject to mandatory redemption by lot, prior to maturity, at par plus accrued interest to date of redemption, based on the following schedule: Term Bonds Due September 1, 2008 Date Principal Amount a September 1, 2007 $ 1,230,000 September 1, 2008 1,310,000 Term Bonds due September 1, 2011 Date Principal Amount September 1, 2009 $ 1,395,000 September 1, 2010 1,475,000 September 1, 2011 1,555,000 Term Bonds due September 1, 2015 LJ Date Principal Amount September 1, 2012 $ 1,640,000 September 1, 2013 1,730,000 September 1, 2014 1,825,000 September 1, 2015 1,925,000 n Term Bonds due September 1, 2018 Date Principal Amount September 1, 2016 $ 2,030,000 September 1, 2017 2,135,000 September 1, 2018 2,250,000 1 r 1 Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30, 2006 NOTE 10 - LONG-TERM LIABILITIES - Continued A. Enterprise Fund Bonds Payable — Continued Water and Sewer Revenue Bonds, Series 1993A - Continued Term Bonds due September 1, 2020 Date September 1, 2019 September 1, 2020 Term Bonds due September 1, 2024 Date September 1, 2021 September 1, 2022 September 1, 2023 September 1, 2024 Principal Amount $ 2,370,000 2,490,000 Principal Amount $ 2,625,000 2,760,000 2,905,000 1,585,000 Optional Redemption - The revenue bonds, Series 1993A, maturing on or after September 1, 2009, are subject to redemption prior to maturity, at the option of the County on and after September 1, 2008, in whole or in part, at any time, on any interest payment date at par plus accrued interest and plus a premium ranging between 0% and 2% depending on the year of redemption. Water and Sewer Revenue Refunding Bonds, Series 2005 Purpose - The Series 2005 Bonds were issued to legally defease $31,680,000 of the County's outstanding Water and Sewer Revenue Bonds, Series 1996. These bonds were issued by the County to provide funds, together with $5,000,000, to retire 95 percent of the 1996 Series and to pay for all bond issuance costs. n The September 1, 2005 and 2006 principal installments were not subject to early call and consequently paid at their respective maturity dates. s The aggregate difference in debt service between the Series 1996 ($40,585,193) and Series 2005 ($39,619,193) is $966,000. The net economic gain was $2,944,661, which included shortening the term of the bonds by four years and lowering average annual debt service by $242,000. Pledge of Revenues — The revenue bonds are collateralized by a pledge of all net revenues derived from the operation of the system, certain surcharges and special assessments. 267 a Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30, 2006 NOTE 10 - LONG-TERM LIABILITIES - Continued A. Enterprise Fund Bonds Payable — Continued f �J Water and Sewer Revenue Refunding Bonds Series 2005 - Continued following: Bonds Issued - At September 30, 2006, the revenue bonds consisted of the a Outstanding at Interest Rates September 30, Description and Date Maturity Issue 2006 a Water and Sewer 3-5% Revenue Bonds, 3/1 and 9/1 2022 $27,675,000 $ 27,255,000 Series 2005 1,275,000 Less: Current Portion of Bonds Add: Unamortized Bond Premium Long -Term Portion of bonds 979,739 $ 26,959,739 l l Outstanding In -Substance Defeased Debt - The proceeds from the refunding have been invested in Federal Securities and placed in an escrow account with J.P. Morgan. All of the defeased bonds ($31,680,000) were called on September 1, 2006 at 102% of the outstanding principal amount. Optional Redemption - The Series 2005 Bonds maturing after September 1, 2015, are subject to redemption by the County on or after September 1, 2015, in whole or in part, at par, plus accrued interest to date of redemption. n 0 In 19 C Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30, 2006 NOTE 10 - LONG-TERM LIABILITIES - Continued A. Enterprise Fund Bonds Payable — Continued Annual Debt Service Payments The annual debt service payments for bonds outstanding at September 30, 2006 are as follows: Fiscal Year Fading September 30 2007 2008 2009 2010 2011 2012-2016 2017-2021 2022-2026 Total Less: Current portion Unamortized bond discount Add: Unamortized bond premium Total Recreational Water and Sewer Water and Sewer Revenue Refunding Bonds Refunding Bonds Series 2003 Series 1993 Series 2005 Principal Interest Principal Interest Principal Interest $475,000 $170,858 $1,230,000 $1,910,450 $1,275,000 $1,130,700 485,000 160,764 1,310,000 1,830,500 1,310,000 1,092,450 490,000 148,639 1,395,000 1,745,350 1,350,000 1,053,150 510,000 135,164 1,475,000 1,668,625 1,395,000 1,012,650 520,000 119,864 1,555,000 1,587,500 1,435,000 970,800 2,655,000 304,251 9,150,000 6,557,000 8,035,000 3,992,450 - - 11,870,000 3,836,700 10,145,000 1,878,300 - - 7,250,000 699,563 2,310,000 92,400 5,135,000 1,039,540 35,235,000 19,835,688 27,255,000 11,222,900 475,000 - 1,230,000 - 1,275,000 - 45,901 - 1,053,624 - - - 979,739 - $4,614,099 $1,039,540 $32,951,376 $19,835,688 $26,959,739 $11,222,900 B. Enterprise Fund Capital Leases The Board has entered into lease -purchase agreements to purchase golf carts and an ice machine for Sandridge Golf Course with lease terms of 36-48 months. Monthly payments for the leases are made by the Golf Course Fund. The value of the golf carts at the time of the lease was $311,302. The value of the ice machine at the time of the lease was $6,265. The following is a schedule of future minimum lease payments under the capital leases, together with the present value of the net minimum lease payments, as of September 30, 2006: Fiscal Year Ending September 30, 2007 2008 2009 rj Total Minimum Lease Payment �J Less Amount Representing Interest Present Value of Net Minimum Lease Payment 269 $ 87,421 87,421 29.704 204,546 10,760 193 786 Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30, 2006 NOTE 10 - LONG-TERM LIABILITIES - Continued C. Changes in Governmental Long -Term Liabilities Balance October 1, 2005 Additions Accrued Compensated Absences: $ 3,575,929 $ 1,394,544 Balance September 30, Deletions 2006 $ 1,123,060 $ 3,847,413 1 Bonds Payable: Limited General Obligation Bonds - 2006 Series - 48,600,000 - 48,600,000 General Obligation Bonds - 2001 Series 8,685,000 - 650,000 8,035,000 General Obligation Refunding Bonds - 2003 Series 5,700,000 - 1,080,000 4,620,000 a Spring Training Facility Revenue Bonds - 2001 Series 15,025,000 - 505,000 14,520,000 Total Bonds Payable 29,410,000 48,600,000 2,235,000 75,775,000 Total $ 32,985,929 $ 49,994,544 $ 3,358,060 $ 79,622,413 Of the $3,847,413 liability for accrued compensated, management estimates that $2,230,610 will be due and payable within one year. The long-term liabilities are not reported in the financial statements of the Board since they are not payable from available spendable resources. They are reported in the financial statements of the County by the fund which normally pays the personnel service costs of the employee. a D. Governmental Long -Term Debt r-, Limited General Obligation Bonds Purpose — On July 6, 2006, the Board issued $48,600,000 of Limited General Obligation Bonds Series 2006. The issuance of the Series 2006 bonds was approved by a majority of votes cast in a bond referendum held on November 2, 2004, by the qualified electors of the County. The referendum authorized a total of $ 50,000,000 aggregate principal amount of limited general obligation bonds. The proceeds of this issue will provide funds to acquire interest in lands to protect water resources and/or drinking water sources, environmentally sensitive lands, historic sites, and/or agricultural lands together with the necessary preservation, restoration, remediation and reclamation activities to preserve and enhance such property. Pledge of revenues - The principal and interest on the bonds are payable from ad valorem taxes not exceeding '/z mil and having a maturity not exceeding fifteen years, which are levied by the Board upon the taxable real and personal property of the Board. a 270 Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30, 2006 NOTE 10 - LONG-TERM LIABILITIES - Continued D. Governmental Long -Term Debt - Continued Bonds Issued - At September 30, 2006, General Obligation bonds consisted of the following: nOutstanding at Interest Rates September 30, a Description and Date Maturity Issue 2006 Limited General 4.00%-5.00% Obligation 2006 Series 1/1 and 7/1 2021 48,600,000 $48,600,000 Optional Redemption - The Limited General Obligation Bonds, Series 2006, maturing on or after July 1, 2017, are subject to redemption prior to maturity, at the option of the County on and after July 1, 2016, in whole or in part, at any time, on any date at a redemption price of par, together with accrued interest to the redemption date. General Obligation Bonds Purpose — On November 29, 2001, the Board issued the additional $11,000,000 of General Obligation Bonds Series 2001. The issuance of the Series 1995 bonds and the Series 2001 bonds were approved by a majority of votes cast in a bond referendum held on November 2, 1992, by the qualified electors of the County. The referendum authorized a total of $ 26,000,000 aggregate principal amount of general obligation bond, in one or more series, for which the Series 1995 bonds are the first (in the amount of $15,000,000) and the Series 2001 bonds are the second. The proceeds of this issue will provide funds to acquire environmentally sensitive lands, together with the necessary restoration, remediation and reclamation activities to preserve and enhance such property. On July 1, 2003, the Board issued $7,800,000 of General Obligation Refunding Bonds, Series 2003. The bonds were issued to provide funds, together with $600,000, to refund and redeem, all of the outstanding principal amount of the County's $15,000,000 General Obligation Bonds Series 1995. Proceeds of the n bonds will also be used to pay cost of issuance of the Bonds, including the premiums for guaranty insurance. u Pledge of Revenues - The principal and interest on the bonds are payable from ad valorem taxes levied by the Board upon the taxable real and personal property of the Board. 271 Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30, 2006 NOTE 10 - LONG-TERM LIABILITIES - Continued D. Governmental Long -Term Debt - Continued Bonds Issued - At September 30, 2006, General Obligation bonds consisted of the following: Description General Obligation 2001 Series General Obligation Refunding 2003 Series Outstanding at Interest Rates September 30, and Date Maturity Issue 2006 2.50%-4.30% 1/1 and 7/1 2016 $ 11.000,000 $8,035,000 1.50%-3.00% 1/1 and 7/1 2010 $ 7.800.000 $ 4.620.000 Optional Redemption - The General Obligation Bonds, Series 2001, maturing on or after July 1, 2013, are subject to redemption prior to maturity, at the option of the County on and after July 1, 2012, in whole or in part, at any time, on any date at par plus accrued interest and plus a premium ranging between 0% to 1% depending on the year of redemption. The General Obligation Refunding Bonds, Series 2003, are not subject to redemption prior to their maturities. Spring Training Facility Revenue Bonds Purpose - On August. 15, 2001, the Board issued $16,810,000 of Spring Training Facility Revenue Bonds, Series 2001. The Series 2001 Bonds are being issued by the County to provide funds, together with other available funds, to (1) finance a portion of the cost of acquisition and expansion of a spring training facility known as "Dodgertown"; (2) pay a premium for a municipal bond insurance policy and a debt service reserve account surety bond, and (3) pay certain costs and expenses incurred in connection with the issuance of the Series 2001 Bonds. Pledge of Revenues - The principal and interest on the Series 2001 Bonds will be payable from and secured by a first lien upon and pledge of the following, together with any investment income realized on any funds held under the Resolution, except the Cost of Issuance Account and the Rebate Fund: 1. Payments received by the County from the State of Florida pursuant to Section 212.20, Florida Statutes; and 2. The Fourth Cent Tourist Development Tax levied by the County in Ordinance No. 2000-029, enacted pursuant to Section 125.0104(3)(1), Florida Statutes; and 3. Eighty-six percent (86%) of the Local Government Half -Cent Sales Tax distributed to the County, pursuant to Chapter 218, part VI, Florida Statutes. The foregoing are collectively referred to herein as the "pledged revenues". 272 Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30, 2006 NOTE 10 - LONG-TERM LIABILITIES - Continued D. Governmental Long -Term Debt - Continued Spring_ Training Facility Revenue Bonds - Continued Li The Fourth Cent Tourist Development Tax and the Local Government Half -Cent Sales Tax pledged to the payment of debt service on the Series 2001 Bonds are automatically released as a pledged revenue for the Series 2001 bonds immediately following the April 1, 2021 principal payment on the Series 2001 bonds. Bonds Issued - At September 30, 2006, Spring Training Facility Revenue Bonds consisted of the following: Outstanding at Interest Rates September 30, Description and Date Maturity Issue 2006 Spring Training 3.30%-5.25% Facility 4/1 and 10/1 2031 16.810.000 $14,520,000 Optional Redemption - The Series 2001 Bonds maturing on or after April 1, 2012, are subject to redemption at the option of the County in whole or in part, on April 1, 2011, or on any date thereafter at par plus accrued interest and plus a premium ranging between 0% to 1% depending on the year of the redemption. Mandatory Redemption - The Series 2001 Term Bonds are subject to mandatory redemption prior to maturity, by lot, at par plus accrued interest, according to the following schedule: Term Bonds due April 1, 2015 Date April 1, 2014 April 1, 2015 Term Bonds due April 1, 2017 Date April 1, 2016 April 1, 2017 Term Bonds due April 1, 2021 Date April 1, 2018 April 1, 2019 April 1, 2020 aApril 1, 2021 �I u 273 Principal Amount $ 685,000 725,000 Principal Amount $ 760,000 795,000 Principal Amount $ 840,000 890,000 930,000 980,000 a Indian River County, Florida Board of County Commissioners a Notes To Financial Statements Year Ended September 30, 2006 NOTE 10 - LONG-TERM LIABILITIES - Continued D. Governmental Long -Term Debt - Continued n Term Bonds due April 1, 2027 Date Principal Amount April 1, 2022 $ 305,000 April 1, 2023 320,000 April 1, 2024 340,000 April 1, 2025 355,000 April 1, 2026 375,000 April 1, 2027 390,000 Term Bonds due April 1, 2031 Date Principal Amount April 1, 2028 $ 410,000 April 1, 2029 430,000 April 1, 2030 455,000 April 1, 2031 435,000 Annual Debt Service Payments The annual debt service payments for bonds outstanding at September 30, 2006, are as follows: Fiscal Year Ending September 30 2007 2008 2009 2010 2011 2012-2016 2017-2021 2022-2026 2027-2031 Total Less: Current portion Unamortized bond discount Add: Unamortized bond premium Total Limited General General Obligation General Obligation Spring Training Obligation Bonds Refunding Bonds Bonds Facility Bonds Series 2006 Series 2003 Series 2001 Series 2001 Principal Interest Principal Interest Principal Interest Principal Interest $ 2,320,000 $2,140,863 . $ 1,105,000 $ 124,638 $ 670,000 $ 312,417 $ 520,000 $ 704,062 2,565,000 2,048,063 1,135,000 99,775 690,000 290,643 545,000 685,343 2,670,000 1,945,463 1,170,000 71,400 720,000 266,493 560,000 664,633 2,775,000 1,838,663 1,210,000 36,300 745,000 240,572 585,000 642,232 2,885,000 1,727,663 - - 780,000 213,008 605,000 618,833 16,310,000 6,711,915 - - 4,430,000 575,425 3,455,000 2,662,305 19,075,000 2,667,765 - - - - 4,435,000 1,676,413 _ _ _ _ - - 1,695,000 793,000 2,120,000 324,750 48,600,000 19,080,395 4,620,000 332,113 8,035,000 1,898,558 14,520,000 8,771,571 2,320,000 - 1,105,000 - 670,000 - 520,000 - 1,375,060 - - - - - O $ 47,655,060 $ 19,080,395 $ 3,515,000 $ 332,113 $ 7,365,000 $ 1,898,558 $ 14,000,000 $ 8,771,571 O 274 w Indian River County, Florida l� Board of County Commissioners �J Notes To Financial Statements Year Ended September 30, 2006 NOTE 10 - LONG-TERM LIABILITIES - Continued D. Governmental Long -Term Debt - Continued The General Obligation Bonds and Spring Training Facility Bonds are not reported in the governmental fund statements since they are not current liabilities payable from available spendable resources. They are reported in the financial statements of the County. E. Summary of Defeased Debt Outstanding The following outstanding revenue bonds are legally defeased. Since governmental obligations are held in escrow for the payment of principal and interest, the bonds are not liabilities of the Board. Retired Outstanding at During Outstanding at September 30, Fiscal Year September 30, Description 2005 2006 2006 Capital Improvement Revenue Bonds: Series 1980 $j,890,000 250 000 1,640000 Water and Sewer Revenue Bonds: Series 1996 31,680.000 31 680 000 -� F. Conduit Debt Obligations From 1986 until 1999, Indian River County issued Industrial Revenue Bonds to provide financial assistance to private -sector entities for the acquisition, construction and equipping of industrial and commercial facilities deemed to be in the public interest. These facilities included an expanded processing facility and an educational facility, for a total of two series of Industrial Revenue Bonds. The bonds are secured by the property financed and are payable solely from payments received on the underlying mortgage loans. Upon repayment of the bonds, ownership of the acquired facilities transfers to the private - sector entity served by the bond issuance. Neither the County, the State, nor any political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. Original Principal Bond Issue Outstanding Year Bonds and Project Description $ 18,000,000 $ 16,300,000 1999 St. Edward's School, Inc. - Upper School educational facilities 4,080,000 2,400,000 1997 Ocean Spray Cranberries, Inc. - expansion of 23,000 sq. ft. processing facility Total 18,700.000 275 J Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30, 2006 NOTE 11- PROVISION FOR CLOSURE COSTS Protection Agency (EPA) and the FloridaDepartment a Current regulations of the U.S. Environmental e final Protection (FDEP) require the Solid Waste Disposal District Environmental thirty years cover on closed landfill areas, and to maintain those areas fora to final closure ma maintenance of the landfill recognizes the expenses associated with the e reco m ed in each operating period based on the the active life of those areas. These cost g are made for these areas over amount of capacity used during that period, regardless of when cash disbursements costs. updated and revised estimates of future and sts as The SWDD annually obtains ostst el orted n theefinanpaltstatements from its consulting engineers. The provision for closure future outlays which are allocable to the a operating expense represents the portion of these estimated current year based on the amount of capacity used. a Required closure and post -closure obligations per segment: Closure and a Capacity Estimated Post -Closure Date Closed Used _ Closing Obligation Active 480,000 N/A 59% 2007 $ N/A Segment Iaddition - C & D 2007 Segment II B addition — household waste 750% 2007 2,864,016 N/A 16 75% Segment II C addition — household waste Seg 76% 2010 1,005,854 Construction and Demolitionr InactiveN/A N/A 478,000 1993 Segment I - household waste N/A 2 806,400 1998 r Segment II -A class 1 - household waste N/A I Total account balance at 9/30/06: $9.744,598 The total unrecognized closure and post -closure costs attributable Xomately $1 13 million. currently active These costs dfill areas Segment I, Segment II, and Construction and Demolition pp will be recognized in future period as the remaining capacity its filled. ThThe of both closure and County's Policy is to fund 100% of the current year's allocation (based upon the consultingengineers' postclosre care. All amounts recognized are based on what it would cost to perform at ochaall nges esuin technology, or chane and post -closure ges li inflation, in current dollars. Actual costs may be different due to laws and regulations. The SWDD is required by FDEP toannu elmesri ° of the financialw proof of t t provision of he and post -closure costs, and has done so by fulfilling the requirements q regulation. At the same time, the SWDD is making annual deposits to a closure and post -closure cost account to provide for the financing of future closure -related expenditures. 276 Indian River County, Florida a Board of County Commissioners Notes To Financial Statements Year Ended September 30, 2006 NOTE 12 — PENSION PLANS Florida Retirement System Plan Description: The Board's employees participate in the Florida Retirement System (FRS), a cost- sharing multiple -employer public employee retirement system, administered by the Florida Department of Administration. The FRS is noncontributory for all members; all contributions are made by the employer. Employees elect participation in either the defined benefit plan (Pension Plan) or the defined contribution plan (Investment Plan). The Pension Plan provides for vesting of benefits after six years of creditable service. Normal retirement benefits are available to employees who retire at or after age 62 with six or more years of service or thirty years of service regardless of age. Early retirement is available after six years of service with a five percent reduction in benefits for each year prior to the normal retirement age. Retirement benefits are based on age, average compensation, and years -of -service credit where average compensation is computed as the average of an individual's five highest years of earnings. For those employees who elect participation in the Investment Plan rather than the Pension Plan, vesting occurs after one year of service and there is no "normal retirement age". These participants receive a defined contribution for self-direction in an investment product with a third party administrator selected by the State Board of Administration. In addition to the above benefits, the FRS administers a Deferred Retirement Option Program (DROP). This program allows eligible employees to defer receipt of monthly retirement benefit payments while continuing employment with a FRS employer for a period not to exceed five years after electing to participate. Deferred monthly benefits are held in the FRS Trust Fund and accrue interest. Contributions to the FRS for the fiscal year ended September 30, 2006, were equal to 11.69% of the annual covered payroll. Contributions to the FRS for the fiscal years ended September 30, 2004, 2005, and 2006, were $3,924,720, $4,215,935, and $4,741,594 respectively, which are equal to 100% of the required contribution for each year. Florida Statutes Chapter 121, as may be amended from time to time by the state legislature, determines contribution rates for the various membership classes of the FRS. The FRS issues a publicly available financial report that includes financial statements, ten-year historical trend information and other required supplementary information. That report may be obtained by writing to the Department of Administration, Division of Retirement, Cedars Executive Center, Building C, 2639 North Monroe Street, Tallahassee, n Florida 32399-1560. The funding policy is described in detail in the Florida Retirement System note in the County -wide financial statements. NOTE 13 - OPERATING LEASES The Board has entered into noncancelable operating leases, both as lessor and lessee. Lease terms vary from 2 to 49 years. Lease revenues totaled $348,800 and lease expenditures totaled $52,465 for the year ended September 30, 2006. The Board also leases other equipment and office facilities as both lessor and lessee on a month-to-month basis. 277 Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30, 2006 NOTE 13 - OPERATING LEASES - Continued A. Future Minimum. Lease Receipts Year Amount 2007 $ 366,818 2008 381,206 2009 391,569 2010 400,328 2011 412,669 2012-2016 1,651,153 2017-2021 1,650,529 2022-2026 924,279 2027-2031 193,905 2032-2036 800 Total future minimum lease receipts: $ 6,373,256 The property being leased is reported in the financial statements of County and has a cost of $7,670,895, and a carrying value of $2,805,419. All depreciable property being leased has been fully depreciated. B. Future Minimum Lease Payments The following is a schedule, by years, of minimum future rentals to be paid by the Board for various noncancelable operating leases as of September 30, 2006: Year Amount 2007 $ 63,656 2008 62,432 2009 60,146 2010 61,583 2011 21,333 2012-2016 106,665 2017-2021 106,665 2022-2026 106,665 2027-2031 12,017 2032-2036 1,500 2037-2041 1,500 2042-2046 1,500 2047-2051 1,200 Total future minimum lease payments: 60$ 6.862 278 1i1 Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30, 2006 NOTE 14 - FUND EQUITY EReserved Fund Balances The Board has established certain reserves within the fund equity section of the governmental funds. Reserved fund balances at September 30, 2006, consist of the following: Special Revenue Funds: Reserved for Capital Projects: Secondary Roads Construction $ 666,667 Reserved for Advances to Other Funds: Secondary Roads Construction 654,000 Total 1,320,667 NOTE 15 - FUND EQUITY DEFICIT The following funds had a deficit in fund balance at September 30, 2006: Fund Deficit Major Governmental Fund: Federal/State Grants $ 455,991 Non -major Governmental Fund: Community Development Block Grant 185,484 n Total Deficit641 475 The deficit for these two funds will be eliminated by grant proceeds in the fiscal year 2007. 279 Debt Service Funds: Reserved for Debt Service: Land Acquisition Bonds $ 1,375,837 Spring Training Facility Revenue Bonds 849,512 Total 2,225,349 Capital Projects Funds: Reserved for Capital Projects: Optional Sales Tax $28,610,633 Dodgertown Capital Revenue 2,212,606 Gifford Road Construction 2,459,656 Dodgertown Facility 259,101 Subtotal 33,541,996 Reserved for Advances to Other Funds: Optional Sales Tax 987,105 r, Total $34,529,101 Special Revenue Funds: Reserved for Capital Projects: Secondary Roads Construction $ 666,667 Reserved for Advances to Other Funds: Secondary Roads Construction 654,000 Total 1,320,667 NOTE 15 - FUND EQUITY DEFICIT The following funds had a deficit in fund balance at September 30, 2006: Fund Deficit Major Governmental Fund: Federal/State Grants $ 455,991 Non -major Governmental Fund: Community Development Block Grant 185,484 n Total Deficit641 475 The deficit for these two funds will be eliminated by grant proceeds in the fiscal year 2007. 279 ill; Indian River County, )Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30, 2006 NOTE 16 — RESTRICTED NET ASSETS The Board has established certain restrictions within the net assets section of the proprietary funds Restricted net assets at September 30, 2006, consist of the following: Restricted for debt service: $ 350,000 $500,000 Golf Course Fund $ 39,583 General Liability County Utilities Fund 208,750 200,000 Total $ 248,333 a Restricted for capital projects: 200,000 County Utilities Fund $88,823,634 500-25,000 500-25,000 Error or Omissions NOTE 17- RISK MANAGEMENT 200,000 200,000 A. General Liability, Property, Worker's Compensation and Medical The Board is exposed to various risks of loss related to torts, theft of, damage to and destruction of assets, errors or omissions, injuries to employees, and natural disasters. The Board established a Self Insurance Fund (an internal service fund) to account for and finance its uninsured risk of loss. Under this program, the Self Insurance Fund provides coverage as follows: Prior to 10/1/03 to 10/1/04 to 10/1/03 10/1/04 Present Worker's Compensation $ 350,000 $500,000 $ 600,000 General Liability 200,000 200,000 200,000 Auto Liability 200,000 200,000 200,000 Property Damage 500-25,000 500-25,000 500-25,000 Error or Omissions 200,000 200,000 200,000 Annual Aggregate 1,000,000 1,000,000 1,000,000 Liquor Liability 1,000,000 1,000,000 1,000,000 The Board purchases excess insurance to cover claims in excess of the coverage listed above. The Board has not incurred any settlements in excess of the insurance coverage listed above in the past three fiscal years. All departments of the Board participate in the program. Payments are made by various funds to the Self Insurance Fund based on past experience and actual estimates of the amounts needed to pay current year claims. The Board is also self-insured for medical claims covering employees and their eligible dependents. As a required by Section 112.081, Florida Statutes, retirees and their eligible dependents are provided the same health care coverage as is offered to active employees, however, the retirees are responsible for payment a of the premiums. Medical claims are paid from premiums contributed by employees, retirees and by the Board. Premiums and contributions are determined by projected claims based on historical and actuarial experience. The self-insurance plan assumes all risk for claims up to $100,000 per individual/$200,000 per occurrence, and has purchased a reinsurance policy to cover claims in excess of this amount. There were no claims in excess of this limit for the 2004, 2005, and 2006 fiscal years. a 280 NOTE 17- RISK MANAGEMENT - Continued A. General Liability, Property and Worker's Compensation — Continued The claim liability of $5,866,000 reported at September 30, 2006, is based on the requirements of generally accepted governmental accounting standards, which require that a liability for claims be reported if information prior to the issuance of the financial statements, and the amount of the loss can be reasonably estimated. Estimates for claims incurred but not reported are actuarially determined and recorded. Based on the actuary's report, $3,518,628 will be liquidated over the next twelve months. Changes in the fund's claims liability amount during the current and prior three fiscal years are as follows: Balance at Claims Indian River County, Florida Fiscal Year Board of County Commissioners Notes To Financial Statements Claims Year Ended September 30, 2006 NOTE 17- RISK MANAGEMENT - Continued A. General Liability, Property and Worker's Compensation — Continued The claim liability of $5,866,000 reported at September 30, 2006, is based on the requirements of generally accepted governmental accounting standards, which require that a liability for claims be reported if information prior to the issuance of the financial statements, and the amount of the loss can be reasonably estimated. Estimates for claims incurred but not reported are actuarially determined and recorded. Based on the actuary's report, $3,518,628 will be liquidated over the next twelve months. Changes in the fund's claims liability amount during the current and prior three fiscal years are as follows: Balance at Claims Balance Fiscal Year and Changes Claims at Fiscal Beginning in Estimates Payments Year End 2002-2003 $ 4,261,000 $ 9,440,074 $ (9,120,074) $ 4,581,000 2003-2004 4,581,000 11,597,947 (10,847,947) 5,331,000 2004-2005 5,331,000 10,657,797 (10,658,797) 5,330,000 2005-2006 5,330,000 13,026,906 (12,490,906) 5,866,000 Included in the charges to other funds is an amount to fund future catastrophic losses not actuarially determined; and at September 30, 2006, unreserved net assets of $8,992,655 have been designated for this purpose. The Board has elected to accrue the larger of the discounted liability or undiscounted liability. At September 30, 2006, the undiscounted liability was the greater of the two amounts. The discount rate used in the calculation was 2.5 percent. NOTE 18 - COMMITMENTS AND CONTINGENCIES A. Litigation Various suits and claims are currently pending against the Board. It is impossible for the Board to accurately quantify the exposure involved given the jury's latitude in assessing compensatory and punitive damages, and the court's latitude in awarding attorney's fees. The Board intends to vigorously defend against these lawsuits and believes it has a good chance of prevailing on their merits. The Board is contingently liable with respect to lawsuits and other claims incidental to the ordinary course of its operations. In the opinion of management and based on the advice of legal counsel, the ultimate disposition of lawsuits will not have a material adverse effect on the financial position of the Board. B. Contracts and Other Commitments The Board has various contracts and commitments outstanding at September 30, 2006. In the General Fund, contracts are for custodial services, maintenance of the 800 Mhz radio system, Indian River County Code Review and various other general services. In the Special Revenue Funds, contracts are Jungle Trail Shoreline Stabilization Project, renovation and construction of several Fire/EMS stations, numerous environmental protection services and a variety of road paving and drainage projects. 281 Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30, 2006 NOTE 18 - COMMITMENTS AND CONTINGENCIES - Continued B. Contracts and Other Commitments - Continued In the Capital Projects Funds, contracts are for the North County Regional Park, New County Administration Building, 43rd Avenue Sub -Complex, Indian River County Jail Expansion and several storm water projects throughout the County. In the Enterprise Funds, contracts are for the North County Reverse Osmosis Plant Expansion, Central Regional Wastewater Treatment Facility Capacity Enhancement, South County Reverse Osmosis Clearwell Addition, Utility Services Operations Complex, Biosolids Collection and Dewatering Facility and various other water and sewer projects. A summary of these projects at September 30, 2006, is as follows: Special Capital General Revenue Projects Enterprise Total contact price $ 1,053,907 $ 62,589,652 $ 74,227,529 $ 32,916,619 Total $ 170,787,707 Total paid as of September 30, 2006 (867,197) (28,856,945) (33,334,116) (25,677,438) (88,735,696) Remaining Balance at September 30, 2006 $ 186,710 $ 33,732,707 $ 40,893,413 $ 7,239,181 $ 82,052,011 C. Grants Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies. If any expenditures are disallowed as a result of these audits, the claims for reimbursement to the grantor agency would become a liability of the Board. In the opinion of management, any such adjustments would not be significant. NOTE 19 — SUBSEQUENT EVENTS In December 2006 and February 2007 the County received their final settlements of insurance recoveries from Hurricanes Frances and Jeanne totaling $11 million. Plans for moving into the new administration complex are scheduled for June 2007. Both buildings encompass 170,000 square feet and will house the Property Appraiser and Tax Collector, as well as the Board of County Commissioners departments. The Supervisor of Elections, Animal Control, Facilities Management and Coastal Engineering departments moved into their new 30,000 square foot complex on 43rd Avenue in November 2006. Both complexes were funded by the one -cent local option sales tax. In January 2007, a major developer filed a lawsuit against the County. The developer is requesting a reservation of road capacity for their development and not a monetary award. At this time, the outcome is undeterminable. 282 XI s ,. Harris, Cotherman, (� Jones, Price & Associates l� Certified Public Accountants - Chartered 5070 North Highway AIA, Suite 250 Vero Beach, FL 32963 Tel 772-234-8484 Fax 772-234-8488 Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards The Honorable Board of County Commissioners Indian River County, Florida We have audited the basic financial statements Indian River County, Florida including the fund financial statements of the Board of County Commissioners, as of and for the year ended September 30, 2006, and issued our report thereon dated February 9, 2007. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Internal Control over Financial Reporting In planning and performing our audit, we considered the Board of County Commissioners' internal control over fmancial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the fund financial statements and not to provide an opinion on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over fmancial reporting that might be material weaknesses. A material weakness is a reportable condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements caused by error or fraud in amounts that would be material in relation to the fmancial statements being audited may occur and may not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over fmancial reporting and its operation that we consider to be material weaknesses. Compliance and Other Matters O As part of obtaining reasonable assurance about whether the Board of County Commissioners' fund fmancial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, grant agreements and contracts, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those a provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. This report is intended solely for the information and use of the Board of County Commissioners, management, and the State of Florida Office of the Auditor General and is not intended to be and should not be used by anyone other than ese specified parties. Cr ��CL(�,u�i (� i`iiiYf7lQiX�— �1Ctlf�lQP� Vero Be9ch, Florida February 9, 2007 "Providing Vision and Direction to our Clients" Member AICPA Member AICPA Division For CPA Firms Member FICPA Private Companies Practice Section 283 Harris, Cotherman, Jones, Price & Associates Certified Public Accountants - Chartered 5070 North Highway Al A, Suite 250 Vero Beach, FL 32963 Tel 772.234-8484 Fax 772-234-8488 a Management Comments The Honorable Board of County Commissioners Indian River County, Florida We have audited the basic financial statements of Indian River County, Florida, including the individual fund financial statements of the Board of County Commissioners, as of and for the year ended September J 30, 2006, and have issued our report thereon dated February 9, 2007. We conducted our audit in accordance with United States generally accepted auditing standards; the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non -Profit Organizations. We have issued our Independent Auditor's Report on Compliance and Internal Control over Financial Reporting, Independent Auditor's Report on Compliance and Internal Control over Compliance Applicable to each Major Federal Program and State Project, and Schedule of Findings and Questioned Costs. Disclosures in those reports and schedule, which are dated February 9, 2007, should be considered in conjunction with this management letter. Additionally, our audit was conducted in accordance with Chapter 10.550, Rules of the Auditor General, which govern the conduct of local government entity audits performed in the state of Florida and require that certain items be addressed in this letter. The Rules of the Auditor General (Section 10.554(1)(h)4) require disclosure in the management letter of the following matters if not already addressed in the auditor's reports on compliance and internal controls or schedule of findings and questioned costs: (1) violations of laws, rules, regulations, and contractual provisions that have occurred, or are likely to have occurred; (2) improper or illegal expenditures; (3) improper or inadequate accounting procedures; (4) failures to properly record financial transactions; and (5) other inaccuracies, shortages, defalcations, and instances of fraud discovered by, or that come to the attention of, the auditor. There were no such matters noted during the current year. In accordance with Rules of the Auditor General (Section 10.554(1)(h)3.), in addition, we are submitting for your consideration the following recommendations designed to help the Board of County Commissioners improve the internal control structure and achieve operational efficiencies. We have also tested your operations for compliance with applicable laws and have provided additional comments required to be included by reason of the Rules of the Auditor General of the State of Florida. U "Providing Vision and Direction to our Clients" IJ Member AICPA Member AICPA Division For CPA Firms Member FICPA Private Companies Practice Section 284 Il�lil L� Harris, Cotherman, Jones, Price & Associates Certified Public Accountants -Chartered The Honorable County Commissioners Indian River County, Florida Management Comments Page Two FINDINGS AND RECOMMENDATIONS TO IMPROVE THE ORGANIZATION'S INTERNAL CONTROL AND OPERATING PROCEDURES DISPOSITION OF PRIOR YEAR FINDINGS AND RECOMMENDATIONS: In accordance with the Rules of the Auditor General (Section 10.554(1)(h)1), we have noted that all findings and recommendations made in the preceding annual financial audit have been corrected. CURRENT YEAR FINDINGS AND RECOMMENDATIONS: Accounts Receivable Aging and Lien Receivables (Utilities Department) During the current year we noted that the accounts receivable aging analysis detail did not agree to the summary accounts receivable reports. The variance appears to have occurred since the time of a MUNIS upgrade in August 2006. For utilities receivables, the aging analysis assists in determining the balances required in the allowance for doubtful accounts. Additionally, this aging provides useful and timely information to determine which accounts should be liened. We recommend the Utilities Department work with their current software vendor to resolve discrepancies in the 120 day aging report and meanwhile develop a process for monitoring aged receivables for purposes of liens and the allowance reserve activity. We also recommend the Utilities Department review their software options to determine the adequacy of the current software to meet utilities department needs. Often it appears that upgrades and enhancements with the current software often result in other problems and issues that then require computer fixes later. Often the corrections are either inadequate or do not occur in a timely fashion. COMMENTS REQUIRED BY THE RULES OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA Compliance With Section 218.415 As required by the Rules of the Auditor General (Section 10.554(1)(h)2.), the scope of our audit included a review of the provisions of Section 218.415, Florida Statutes, regarding the investment of public funds. In connection with our audit, we determined that the Board of County Commissioners complied with Section 218.415, Florida Statutes. 285 Cl Harris, Cotherman, (� Jones, Price & Associates) Certified Public Accountants -Chartered The Honorable County Commissioners Indian River County, Florida Management Comments Page Three This report is intended for the information of management, the Board of County Commissioners, and the Li Auditor General of the State of Florida, and is not intended to be and should not be used by anyone other than these specified parties. a 0544 c4.) Q _ 11) C(g110 to t� Vero Beach, Florida February 9, 2007 1 March 12, 2007 INDIAN RIVER COUNTY DEPARTMENT OF UTILITY SERVICES 1840 25th Street, Vero Beach, Florida 32960 Harris, Cotherman, Jones, Price & Associates 5070 North A1A, Suite 250 Vero Beach, FL 32963 Dear Harris, Cotherman, Jones, Price & Associates: Please find below our response to the management comment resulting from the audit of the general-purpose financial statements of Indian River County for the fiscal year ended September 30, 2006. Accounts Receivable Aqing and Liens Receivables — Utilities Department While there is no functioning aging report available in the Munis software, last year we enlisted Munis to provide an aging report that included a 120 -day column. Presently, the 120 day aging report does not balance to the Detail Receivables report. To date, Munis support technicians have been unable to identify where the discrepancies lie. However, we will diligently work with Munis technicians to identify and correct these discrepancies. Along with continuing the quest with Munis support staff, we will sample detail receivables data monthly and try to use that data to update the lien list. We can also obtain receivable data on active accounts using the shut off lists. However, since those reports do not address inactive accounts it will be limited in scope. In addition, we are reviewing other software options to see if another company may be able to better meet our needs. Sincerely, W. Erik Olson, Director of Utility Services Indian River County 287 A mi 289 Harris, Cotherman, Jones, Price & Associates Certified Public Accountants - Chartered 5070 North Highway AIA, Suite 250 Vero Beach, FL 32963 Tel 772-234-8484 Fax 772-234-8488 Report on Special Purpose Financial Statements Prepared in Compliance with a Regulatory Provision That Results in an Incomplete Presentation But One That is Otherwise in Conformity with Generally Accepted Accounting Principles The Honorable Jeffrey K. Barton Clerk of the Circuit Court Indian River County, Florida We have audited the accompanying fund financial statements of Indian River County, Florida Clerk of the Circuit Court as of and for the fiscal year ended September 30, 2006, as listed in the table of contents. �J These financial statements are the responsibility of the Clerk of the Circuit Court's management. Our responsibility is to express an opinion on the financial statements based on our audit. a We conducted our audit in accordance with U.S. generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the fund financial statements are free of material misstatement. An disclosures in the fund audit includes examining, on a test basis, evidence supporting the amounts and ng financial statements. An audit also management, as wellasevaluating es assessing overall fithe nancial statement preciples used sentat�onifica�ne estimates made by manag , believe that our audit provides a reasonable basis for our opinion. As described in Note 1, the accompanying fund financial statements referred to above present the financial position ofe only the r ,hese statements are not intended to be Circuit Court at September e a complete presentatioand the n of the of its operations for the year then ended. financial position of Indian River County. In our opinion, the fund financial statements referred to above present fairly, in all material respects, the financial position of the Supervisor of Elections as of September 30, 2006, and the results of its operations for the year then ended in conformity with U.S.. generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated February 9, 2007 on our consideration of the Clerk of the Circuit Court's internal control over financial reporting and on our tests of compliance with certain provisions of laws, regulations, contracts, and grant agreements. This report is intended solely for the information and use of management, the Clerk of the Circuit Court, Indian River County, the Auditor General of the State of Florida, and applicable federal and state agencies, and is not intended to be and should -not be used by anyone other than these specified parties. Vero 4ach, Florida February 9, 2007 r "Providing Vision and Direction to our Clients" Member FICPA Member AICPA Member AICPA Division For CPA Firms Private Companies Practice Section 290 Indian River County, Florida Clerk of the Circuit Court Balance Sheet Governmental Funds September 30, 2006 ASSETS Cash and cash equivalents Accounts receivable Prepaid expenses Due from other funds Due from other governments Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Due to other funds Due to other governments Other deposits held in escrow Total liabilities Fund Balances: Unreserved Total fund balances Total liabilities and fund balances General Public Records Modernization Fund Total Governmental Funds 1,178,704 $ 2,411,675 $ 3,590,379 8 - 8 4,212 - 4,212 12,750 - 12,750 165,496 325 165,821 $ 1,361,170 $ 2,412,000 $ 3,773,170 $ 157,980 $ 1,427 $ 159,407 - 12,750 12,750 711,396 - 711,396 491,794 - 491,794 1,361,170 14,177 1,375,347 2,397,823 2,397,823 - 2,397,823 2,397,823 $ 1,361,170 $ 2,412,000 $ 3,773,170 The accompanying notes are an integral part of the financial statements. 291 Indian River County, Florida Clerk of the Circuit Court Statement of Revenues, Expenditures, and Changes in Fund Balance Governmental Funds For the Year Ended September 30, 2006 Public Records Total Modernization Governmental General Fund Funds REVENUES $ 4,348,040 763,808 $ 5,111,848 Charges for services $ 1,170,325 - 1,170,325 Fines and forfeitures 454,666 363,990 90,676 Interest Total revenues 5,882,355 854,484 6,736,839 EXPENDITURES 2,826,410 30,371 2,856,781 General government 3,402,972 - 3,402,972 Court related 6,229,382 30,371 6,259,753 Total expenditures Excess of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) Transfers from Board of County Commissioners Transfers to Board of County Commissioners Transfer to other governments Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year (347,027) 1,076,240 (545,216) (183,997) 347,027 824,113 477,086 1,076,240 (545,216) (183,997) 347,027 824,113 824,113 1,573,710 1,573,710 $ _ $ 2,397,823 $ 2,397,823 The accompanying notes are an integral part of the financial statements. 292 Indian River County, Florida Clerk of the Circuit Court Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual General Fund For the Year Ended September 30, 2006 Budgeted Amount Original Final REVENUES Variance with Final Budget - Positive Actual (Negative) Charges for services $ 4,083,346 $ 4,083,346 $ 4,348,040 $ 264,694 Fines and forfeitures 1,001,638 1,001,638 1,170,325 168,687 Interest 77,000 77,000 363,990 286,990 Total revenues 5,161,984 5,161,984 5,882,355 720,371 EXPENDITURES General government 2,850,941 2,930,247 2,826,410 103,837 Court related 3,387,283 3,307,977 3,402,972 (94,995) Total expenditures 6,238,224 6,238,224 6,229,382 8,842 Excess of revenues over (under) expenditures (1,076,240) (1,076,240) (347,027) 729,213 OTHER FINANCING SOURCES (USES) Transfers from Board of County Commissioners 1,076,240 1,076,240 1,076,240 - Transfers to Board of County Commissioners - - (545,216) (545,216) Transfers to other governments - - (183,997) (183,997) Total other financing sources (uses) 1,076,240 1,076,240 347,027 (729,213) Net change in fund balances $ - $ _ _ $ Fund balances at beginning of year Fund balances at end of year The accompanying notes are an integral part of the financial statements. 293 Indian River County, Florida Clerk of the Circuit Court Statement of Fiduciary Net Assets Agency Fund September 30, 2006 ASSETS Cash and cash equivalents Accounts receivable - net Total assets LIABILITIES Due to other governments Escrow deposits Total liabilities $ 7,167,299 16,074 $ 7,183,373 $ 1,186,097 5,997,276 $ 7,183,373 The accompanying notes are an integral part of the financial statements. 294 Indian River County, Florida Clerk of the Circuit Court Notes To Financial Statements Year Ended September 30, 2006 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Clerk of the Circuit Court is a County agency and a local governmental entity pursuant to Article VIII, Section 1(d) of the Constitution of the State of Florida. For financial statement and reporting purposes, the Clerk of the Circuit Court does not meet the definition of a legally separate organization and is not considered to be a component unit. The Clerk of the Circuit Court is considered to be a part of the primary government of Indian River County. The financial statements contained herein represent the financial transactions of the Clerk of the Circuit Court only. The format of the Clerk of the Circuit Court's statements has been prepared in accordance with the presentation requirements of GASB 34 for fund financial statements. The following is a summary of the significant accounting principles and policies used in the preparation of the accompanying financial statements. EA. Description of Funds The accounting records are organized for reporting purposes on the basis of governmental funds and a fiduciary fund. Governmental Funds General Fund — The General Fund, which is a governmental fund, is used to account for all revenues and expenditures applicable to the general operations of the Clerk of the Circuit Court which is not accounted for in another fund. All general operating revenues, which are not restricted or designated as to use by outside sources, are recorded in the General Fund. The governmental fund measurement focus is based upon determination of financial position and changes in financial position (sources, uses and balances of financial resources) rather than upon net income determination. Public Records Modernization Fund — The Public Records Modernization Fund accounts for the proceeds from recording fees to be used for modernizing the Clerk of the Circuit Court's public records systems. Fiduciary Fund Agency Fund — The Agency Fund is used to account for assets held by the Clerk of the Circuit Court in a trustee capacity or as an agent. These funds cannot be used to support the Clerk's own program. B. Basis of Accounting, Measurement Focus and Presentation The accounts of the governmental funds are maintained on the modified accrual basis. Under the modified accrual basis, expenditures are recorded at the time liabilities are incurred. Revenues are recorded when received in cash or when they are considered both measurable and available. The Clerk only considers revenue to be available if collected within the current fiscal year, except for Title IV -D grant revenue. This grant revenue is subject to accrual and has been recognized as revenue of the current fiscal period. Revenues collected in excess of expenditures are not considered earned and are reflected as liabilities. The fiduciary fund is accounted for on the accrual basis. 295 Notes To Financial Statements Year Ended September 30, 2006 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued C. Budgetary Requirements State statutes require the Clerk of the Circuit Court to prepare his budget in two parts: the budget relating to the state court system, including recording; and the budget relating to the requirements of the Clerk as Clerk to the Board of County Commissioners, County auditor, and custodian of all County funds and other County -related duties. The budget relating to the state court system, including recording is prepared and adopted by the Clerk prior to September 1. The budget relating to the requirements of the Clerk as Clerk to the Board of County Commissioners is prepared prior to June 1 and is reviewed, modified if required, and approved by the Board. Both budgets are adopted on a basis consistent with generally accepted accounting principles. The budget legally adopted by the Clerk must be balanced; that is, the total of estimated receipts, including funding from the Board, shall equal the total estimated expenditures. Management is authorized to transfer budgeted amounts between objects and departments in any fund as long as management does not exceed the total appropriations of a fund. Clerk approval is only required when unanticipated revenues are received that management wishes to have appropriated, thereby increasing the total appropriations of a fund. D. Cash and Cash Equivalents Cash and cash equivalents include deposits and all highly liquid investments with maturities of ninety days or less when purchased. E. Prepaid Expenses This account represents prepayments for services that will be used in future periods. The Clerk's policy is to record the expenditure for the services when they are used rather than when the cash is disbursed. F. Capital Assets Acquisitions of equipment are recorded as expenditures at the time of purchase for governmental fund financial statements. Tangible personal property used by the Clerk of the Circuit Court in operations is reported in the financial statements of the County. Refer to the County -wide note on capital assets for capitalization threshold, depreciation methodology and useful lives. G. Compensated Absences The Clerk of the Circuit Court accrues a liability for employees' rights to receive compensation for future absences when certain conditions are met. The Clerk of the Circuit Court does not, nor is he legally required to, accumulate expendable available financial resources to liquidate this obligation. Accordingly, the liability for compensated absences is not reported on the Clerk of the Circuit Court financial statements. Additional information on the liability is reflected in subsequent Note 5. 296 Indian River County, Florida Clerk of the Circuit Court Notes To Financial Statements Year Ended September 30, 2006 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued C. Budgetary Requirements State statutes require the Clerk of the Circuit Court to prepare his budget in two parts: the budget relating to the state court system, including recording; and the budget relating to the requirements of the Clerk as Clerk to the Board of County Commissioners, County auditor, and custodian of all County funds and other County -related duties. The budget relating to the state court system, including recording is prepared and adopted by the Clerk prior to September 1. The budget relating to the requirements of the Clerk as Clerk to the Board of County Commissioners is prepared prior to June 1 and is reviewed, modified if required, and approved by the Board. Both budgets are adopted on a basis consistent with generally accepted accounting principles. The budget legally adopted by the Clerk must be balanced; that is, the total of estimated receipts, including funding from the Board, shall equal the total estimated expenditures. Management is authorized to transfer budgeted amounts between objects and departments in any fund as long as management does not exceed the total appropriations of a fund. Clerk approval is only required when unanticipated revenues are received that management wishes to have appropriated, thereby increasing the total appropriations of a fund. D. Cash and Cash Equivalents Cash and cash equivalents include deposits and all highly liquid investments with maturities of ninety days or less when purchased. E. Prepaid Expenses This account represents prepayments for services that will be used in future periods. The Clerk's policy is to record the expenditure for the services when they are used rather than when the cash is disbursed. F. Capital Assets Acquisitions of equipment are recorded as expenditures at the time of purchase for governmental fund financial statements. Tangible personal property used by the Clerk of the Circuit Court in operations is reported in the financial statements of the County. Refer to the County -wide note on capital assets for capitalization threshold, depreciation methodology and useful lives. G. Compensated Absences The Clerk of the Circuit Court accrues a liability for employees' rights to receive compensation for future absences when certain conditions are met. The Clerk of the Circuit Court does not, nor is he legally required to, accumulate expendable available financial resources to liquidate this obligation. Accordingly, the liability for compensated absences is not reported on the Clerk of the Circuit Court financial statements. Additional information on the liability is reflected in subsequent Note 5. 296 Indian River County, Florida Clerk of the Circuit Court Notes To Financial Statements Year Ended September 30, 2006 ONOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued H. Transfer Out In accordance with Florida Statutes, all non -court related revenues in excess of expenditures as of year- end are owed to the Board of County Commissioners before November 1. These "excess fees" totaled $545,216 and are reported as a transfer to the Board of County Commissioners at year-end. Court - related revenues in excess of expenditures at year-end were $183,997 and are reported as a transfer to other governments. This amount is due to the Florida Department of Revenue before February 1. The difference between the two transfer -to amounts ($729,213) on the Statement of Revenue, Expenditures and Changes in Fund Balance and the amount reflected as Due to other governments on the Balance Sheet ($711,396) is the advance payment of $17,817 to the Florida Clerk of Court Operations Corporation. NOTE 2 - CASH AND INVESTMENTS A. Deposits At September 30, 2006, the carrying value of the Clerk's deposit was $4,588,740, and the bank balance was $4,832,155. All deposits with financial institutions were 100% insured by federal depository insurance or by collateral provided by qualified public depositories to the State Treasurer in accordance with Section 280.01, Florida Statutes, also known as the Florida Security for Public Deposits Act. The Clerk's office adopted the Board of County Commissioners' investment policy. This policy requires the Clerk's office to follow the above state law (governing custodial credit risk) for cash deposits. Refer to the County -wide Note 4, Cash and Cash Equivalents, for definition of custodial credit risk. B. Investments At September 30, 2006, the Clerk had $6,167,138 in investments with the Local Government Surplus Funds Trust Fund. This State authorized pool is specifically permitted in the Clerk's investment policy and in Section 218.415 (18), Florida Statutes. This statute, the County -wide investment policy, and credit risks are explained in Note 4 of the County wide financial statements. The local Government Surplus Trust Fund investment pool was unrated as of September 30, 2006. NOTE 3 — PENSION PLAN Florida Retirement System Plan Description: The Clerk's employees participate in the Florida Retirement System (FRS), a cost- sharing multiple -employer public employee retirement system, administered by the Florida Department of Administration. The FRS is noncontributory for all members; the employer makes all contributions. The FRS provides for vesting of benefits after six years of creditable service. Normal retirement benefits are available to employees who retire at or after age 62 with six or more years of service. Early retirement is available after six years of service with a five percent reduction in benefits for each year prior to the normal retirement age. 297 Indian River County, Florida Clerk of the Circuit Court Notes To Financial Statements Year Ended September 30, 2006 NOTE 3 — PENSION PLAN - Continued Florida Retirement System - Continued Retirement benefits are based on age, average compensation, and years -of -service credit where average compensation is computed as the average of an individual's five highest years of earnings. For further information concerning the Florida Retirement System and contribution rates, please read the County- wide note on the Florida Retirement System. Contributions to the FRS for the fiscal year ended September 30, 2006, were equal to 8.52% of the annual covered payroll. Contributions to the FRS for the fiscal years ended September 30, 2004, 2005, 2006 were $243,570, $256,965, and $316,964 respectively. These amounts are equal to 100% of the required contribution for each year. NOTE 4 — RISK MANAGEMENT Indian River County maintains a risk management program that provides for coverage of risks of loss related to torts, theft of, damage to and destruction of assets, errors or omissions, injuries to employees, natural disasters, and medical and life insurance coverage for employees and their eligible dependents. Various excess catastrophe insurance policies with a commercial carrier are also in force for claims exceeding the amount chargeable against the Self-insurance Fund. The Clerk of the Circuit Court participated in the County's self-insurance program during fiscal year 2006 at an annual cost of approximately $705,101. Further details of this self-insurance program are discussed in the risk management note in the County wide financial statements. NOTE 5 — LONG-TERM LIABILITIES Changes in Long -Term Liabilities The following is a schedule of changes in long-term liabilities as of September 30, 2006: Beginning Ending Balance Balance 10/01/05 Additions Deletions 9/30/06 Accrued Compensated Absences 171 829 264 505 242 615 193,719 Of the $193,719 liability for accrued compensated absences, management estimates that $30,000 will be due and payable within one year. The long-term liabilities are not reported in the financial statements of the Clerk since they are not payable from available spendable resources. They are reported in the financial statements of the County. ME Harris, Cotherman, Jones, Price & Associates Certified Public Accountants - Chartered 5070 North Highway AIA, Suite 250 a Vero Beach, FL 32963 Tel 772-234-8484 Fax 772-234-8488 Report on Internal Control over Financial Reporting and on Compliance and Other Matters Required by Government Auditing Standards The Honorable Jeffery K. Barton Clerk of the Circuit Court Indian River County, Florida We have audited the basic financial statements of Indian River County, Florida including the fund financial statements of the Clerk of the Circuit Court, as of and for the year ended September 30, 2006, and issued our report thereon dated February 9, 2007. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Internal Control over Financial Reporting In planning and performing our audit, we considered the Clerk of the Circuit Court's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide an opinion on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. A material weakness is a reportable condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the a risk that misstatements caused by error or fraud in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control financial reporting and its operation that we consider to be material weaknesses. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Clerk of the Circuit Court's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. This report is intended solely for the information and use of management, the Clerk of the Circuit Court, Indian River County, the Auditor General of the State of Florida, and applicable federal and state agencies, and is not intended to be and should not be used by anyone other than these specified parties. Vero Be(ach, Florida February 9, 2007 "Providing Vision and Direction to our Clients" Member AICPA Member AICPA Division For CPA Firms Member FICPA Private Companies Practice Section 9 Harris, Cotherman, Jones, Price & Associates Certified Public Accountants - Chartered R 5070 North Highway AlA, Suite 250 Vero Beach, FL 32963 Tel 772.234-8484 Fax 772-234-8488 Manal4ement Letter The Honorable Jeffrey K. Barton Clerk of the Circuit Court Indian River County, Florida We have audited the basic financial statements of Indian River County, Florida, including the fund financial statements of the Clerk of the Circuit Court, as of and for the year ended September 30, 2006, and have issued our report thereon dated February 9, 2007. We conducted our audit in accordance with United States generally accepted auditing standards, and Government Auditing Standards issued by the Comptroller General of the United States. We have issued our Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters Required by Government Auditing Standards dated February 9, 2007, which should be considered in conjunction with this management letter. Additionally, our audit was conducted in accordance with the provisions of Chapter 10.550, Rules of the Auditor General, which govern the conduct of local governmental entity audits performed in the State of Florida and require that certain items be addressed in this letter. The Rules of the Auditor General (Section 10.554(1)(h)1.) require that we address in the management letter, if not already addressed in the auditors' report on compliance and internal controls or schedule of findings and questioned costs, whether or not recommendations made in the preceding annual financial audit report have been followed. No recommendations were made in the prior year. As required by the Rules of the Auditor General (Section 10.554(1)(h)2.), the scope of our audit included a review of the provisions of Section 218.415, Florida Statutes, regarding the investment of public funds. In connection with our audit, we determined that the Clerk of the Circuit Court, Indian River County, Florida, complied with Section 218.415, Florida Statutes. The Rules of the Auditor General (Section 10.554(1)(h)3.) require that we address in the management letter any findings and recommendations to improve financial management, accounting procedures, and internal controls. In connection with our audit, we did not have any such findings or recommendations. The Rules of the Auditor General (Section 10.554(1)(h)4.) require disclosure in the management letter of the following matters is not already addressed in the auditors' reports on compliance and internal controls or schedule of findings and questioned costs and are not clearly inconsequential: (1) violations of laws, rules, regulations, and contractual provisions that have occurred, or are likely to have occurred; (2) improper or illegal expenditures; (3) improper or inadequate accounting procedures (e.g., the omission of required disclosures from the financial statements); (4) failures to properly record financial transactions; and (5) other inaccuracies, shortages, defalcations, and instances of fraud discovered by, or that come to the attention of, the auditors. Our audit did not disclose any of these matters. "Providing Vision and Direction to our Clients" Member AICPA Member AICPA Division For CPA Firms Member FICPA Private Companies Practice Section 300 1-1 4 Harris, Cotherman, Jones, Price & Associates Certified Public Accountants - Chartered Clerk of the Circuit Court Page Two As required by Rules of the Auditor General (Section 10.554(1)(h)7.), the scope of our audit included a review of the provisions of Section 28.35, Florida Statutes, regarding the budget and performance standards certified by the Florida Clerk of Courts Operations Corporation. In connection with our audit, we determined that the Clerk complied with the budget and performance standards pursuant to Section 28.35, Florida Statutes. This management letter is intended solely for the information and use of management, the Clerk of Circuit Court, Indian River County, the State of Florida Office of the Auditor General, and applicable federal and state agencies, and is not intended to be and should not be used by anyone other than these specified parties. Ver each, Florida February 9, 2007 301 0 I 1 .6 �%- �%v 0 P -A 302 303 t Harris, Cotherman, Jones, Price &. Associates Certified Public Accountants - Chartered 5070 North Highway AIA, Suite 250 Vero Beach, FL 32963 Tel 772-234-8484 Fax 772-234-8488 Report on Special Purpose Financial Statements Prepared in Compliance with a 4l Regulatory Provision That Results in an Incomplete Presentation But One That is Otherwise in Conformity with Generally Accepted Accounting Principles The Honorable David C. Nolte Property Appraiser Indian River County, Florida We have audited the accompanying fund financial statements of Indian River County, Florida Property Appraiser as of and for the fiscal year ended September 30, 2006, as listed in the table of contents. These �f financial statements are the responsibility of the Property Appraiser's management. Our responsibility is to express an opinion on the financial statements based on our audit. We conducted our audit in accordance with U.S. generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the fund financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the fund financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. n As described in Note 1, the accompanying fund financial statements referred to above present the Li financial position of only the Property Appraiser at September 30, 2006, and the results of its operations for the year then ended. These statements are not intended to be a complete presentation of the financial position of Indian River County. In our opinion, the fund financial statements referred to above present fairly, in all material respects, the financial position of the Property Appraiser as of September 30, 2006, and the results of its operations for the year then ended in conformity with U.S. generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued our report dated February 9, 2007 on our consideration of the Property Appraiser's internal control over financial reporting and on our tests of compliance with certain provisions of laws, regulations, contracts, and grant agreements. This report is intended solely for the information and use of management, the Property Appraiser, Indian River County, the Auditor General of the State of Florida, and applicable federal and state agencies, and is n t intende//d�I to be and should not be used by anyone �other �ythan these specified parties. 42C�7�j�-i� Vero 13ach, Florida February 9, 2007 "Providing Vision and Direction to our Clients" Member AICPA Member AICPA Division For CPA Firms Member FICPA Private Companies Practice Section 304 Indian River County, Florida Property Appraiser Balance Sheet General Fund September 30, 2006 ASSETS Cash and cash equivalents Accounts receivable Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Due to other governments Deposits Total liabilities Fund Balances: Fund balance Total fund balances Total liabilities and fund balances $ 24,878 10,000 $ 34,878 $ 15,882 1,099 17,897 34,878 $ 34,878 The accompanying notes are an integral part of the financial statements. 305 Indian River County, Florida Property Appraiser Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual General Fund For the Year Ended September 30, 2006 REVENUES Charges for services Interest Total revenues EXPENDITURES General government Debt service: Principal Interest Total expenditures Excess of revenues over (under) expenditures OTHER FINANCING USES Excess fees to Board of County Commissioners Excess fees to other governments Total other financing uses Net change in fund balances Fund balances at beginning of year Fund balances at end of year Variance with Final Budget - Budgeted Amount Positive Original Final Actual (Negative) $ 3,610,446 $ 4,116,113 $ 4,116,113 $ - - - 1,012 1,012 3,610,446 4,116,113 4,117,125 1,012 3,610,446 3,861,158 3,861,071 87 - 245,845 245,845 - - 9,110 9,110 - 3,610,446 4,116,113 4,116,026 87 - - 1,099 1,099 (994) (994) (105) (105) (1,099) (1,099) The accompanying notes are an integral part of the financial statements. 306 O Indian River County, Florida Property Appraiser Notes To Financial Statements Year Ended September 30, 2006 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Property Appraiser is a County agency and a local governmental entity pursuant to Article VIII, Section l (d) of the Constitution of the State of Florida. For financial statement and reporting purposes, the Property Appraiser does not meet the definition of a legally separate organization and is not considered to be a component unit. The Property Appraiser is considered to be a part of the primary government of Indian River County. The financial statements contained herein represent the financial transactions of the Property Appraiser only. The format of the Property Appraiser's statements has been prepared in accordance with the presentation requirements of GASB 34 for fund financial statements The following is a summary of the significant accounting principles and policies used in the preparation of the accompanying financial statements. A. Description of Funds The accounting records are organized for reporting purposes on the basis of governmental fund. Governmental Fund General Fund — The General Fund, which is a governmental fund, is used to account for all revenues and expenditures applicable to the general operations of the Property Appraiser. All general operating revenues, which are not restricted or designated as to use by outside sources, are recorded in the General Fund. The governmental fund measurement focus is based upon determination of financial position and changes in financial position (sources, uses and balances of financial resources) rather than upon net income determination. B. Basis of Accounting, Measurement Focus and Presentation The accounts of the governmental funds are maintained on the modified accrual basis. Under the modified accrual basis, expenditures are recorded at the time liabilities are incurred. Revenues are recorded when received in cash or when they are considered both measurable and available. Revenues collected in excess of expenditures are not considered earned and are reflected as liabilities. C. Budgetary Requirements State statutes require the Property Appraiser to prepare an annual budget, which clearly reflects the revenues available to his office and the functions for which money is to be expended. The budgeted a revenues and expenditures are subject to the review and approval of the Department of Revenue. Management is authorized to transfer budgeted amounts between objects and departments as long as management does not exceed the total appropriations of a fund. Department of Revenue approval is only required when unanticipated revenues are received that management wishes to have appropriated, thereby increasing the total appropriations. The budget is prepared on a basis consistent with generally accepted accounting principles. 307 Indian River County, Florida Property Appraiser Notes To Financial Statements Year Ended September 30, 2006 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued D. Capital Assets Acquisitions of equipment are recorded as expenditures at the time of purchase for governmental fund financial statements. Tangible personal property used by the Property Appraiser in operations is reported in the financial statements of the County. Refer to the County -wide note on capital assets for capitalization threshold, depreciation methodology and useful lives. E. Compensated Absences The Property Appraiser accrues a liability for employees' rights to receive compensation for future absences when certain conditions are met. The Property Appraiser does not, nor is he legally required to, accumulate expendable available financial resources to liquidate this obligation. Accordingly, the liability for compensated absences is not reported on the Property Appraiser's financial statements. a Additional information on the liability is reflected in subsequent Note 5. F. Transfer Out a In accordance with Florida Statutes, all revenues in excess of expenditures as of year-end are owed to the Board of County Commissioners and other governments. These "excess fees" totaled $1,099 and are reported as transfers out. These transfers are also reflected as Due to other governments on the balance sheet. NOTE 2 - CASH Deposits At September 30, 2006, the carrying amount of the Property Appraiser's deposits was $24,708 and the bank balance was $206,362. All deposits with financial institutions were 100% insured by federal �J depository insurance or by collateral provided by qualified public depositories to the State Treasurer in accordance with Section 280.01, Florida Statutes, also known as the Florida Security for Public Deposits a Act. The Property Appraiser adopted the Board of County Commissioners' investment policy. This policy requires the Property Appraiser's office to follow the above state law (governing custodial credit risk) for cash deposits. Refer to the County -wide Note 2, Cash and Investments, for definition of a custodial credit risk. 308 Indian River County, Florida Property Appraiser Notes To Financial Statements Year Ended September 30, 2006 ONOTE 3 — PENSION PLAN Florida Retirement System Plan Description: The Property Appraiser's employees participate in the Florida Retirement System (FRS), a cost-sharing multiple -employer public employee retirement system, administered by the Florida Department of Administration. The FRS is noncontributory for all members; all contributions are made by the employer. The FRS provides for vesting of benefits after six years of creditable service. Normal retirement benefits are available to employees who retire at or after age 62 with six or more years of service. Early retirement is available after six years of service with a five percent reduction in benefits for each year prior to the normal retirement age. Retirement benefits are based on age, average compensation, and years -of -service credit where average compensation is computed as the average of an individual's five highest years of earnings. For further information concerning the Florida Retirement System and contribution rates, please read the County- wide note on the Florida Retirement System. Contributions to the FRS for the fiscal year ended September 30, 2006, were equal to 8.98% of the annual covered payroll. Contributions to the FRS for the fiscal years ended September 30, 2004, 2005, 2006 were $173,453, $177,128 and $206,358 respectively. These amounts are equal to 100% of the required contribution for each year. NOTE 4 — RISK MANAGEMENT Indian River County maintains a risk management program that provides for coverage of risks of loss related to torts, theft of, damage to and destruction of assets, errors or omissions, injuries to employees, natural disasters, and medical and life insurance coverage for employees and their eligible dependents. Various excess catastrophe insurance policies with a commercial carrier are also in force for claims exceeding the amount chargeable against the Self-insurance Fund. The Property Appraiser participated in the County's self-insurance program during fiscal year 2006 at an annual cost of approximately $355,456. NOTE 5 — LONG-TERM LIABILITIES Changes in Long -Term Liabilities A summary of changes in long-term liabilities is as follows: Beginning Ending Balance Balance 10/01/05 Additions Deletions 09/30/06 n Accrued Compensated Absences 92 988 i2Q,3423 $204,914 $91,497 Ll 309 Indian River County, Florida Property Appraiser a Notes To Financial Statements Year Ended September 30, 2006 NOTE 5 — LONG-TERM LIABILITIES - Continued Of the $91,497 liability for accrued compensated absences, management estimates that $15,000 will be due and payable within one year. The long-term liabilities are not reported in the financial statements of the Property Appraiser since they are not payable from available spendable resources. They are reported in the financial statements of the County. NOTE 6 — COMMITMENTS AND CONTINGENCIES D Litigation Various suits and claims are currently pending against the Property Appraiser. It is impossible for the Property Appraiser to accurately quantify the exposure involved given the jury's latitude in assessing compensatory and punitive damages, and the court's latitude in awarding attorney's fees. The Property Appraiser intends to vigorously defend against these lawsuits and believes he has a good chance of prevailing on their merits. In the opinion of management and based on the advice of legal counsel, the ultimate disposition of these lawsuits will not have a material adverse effect on the financial position of the Property Appraiser. OR Harris, Cotherman, Jones, Price & Associates aCertified Public Accountants - Chartered 5070 North Highway AIA, Suite 250 Vero Beach, FL 32963 a Tel 772-234-8484 Fax 772-234-8488 Report on Internal Control over Financial Reporting and on Compliance and Other Matters Required by Government Auditing Standards The Honorable David C. Nolte Property Appraiser Indian River County, Florida We have audited the basic financial statements of Indian River County, Florida including the fund financial statements of the Property Appraiser, as of and for the year ended September 30, 2006, and issued our report thereon dated February 9, 2007. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Internal Control Over Financial Reporting In planning and performing our audit, we considered the Property Appraiser's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. Our consideration of the D internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. A material weakness is a reportable condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements caused by error or fraud in amounts that would be material in relation to the financial a statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Property Appraiser's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no n instances of noncompliance that are required to be reported under Government Auditing Standards. This report is intended solely for the information and use of management, the Property Appraiser, Indian River County, the Auditor General of the State of Florida, and applicable federal and state agencies, and is not intended to be and should not be used by anyone other than these specified parties. Vero 13 ch, Florida February 9, 2007 a"Providing Vision and Direction to our Clients" Member A1CPA Member AICPA Division For CPA Firms Member FICPA Private Companies Practice Section 311 Harris, Cotherman, Jones, Price & Associates Certified Public Accountants - Chartered 5070 North Highway AIA, Suite 250 Vero Beach, FL 32963 Tel 772-234-8484 Fax 772-234-8488 Management Letter The Honorable David C. Nolte Property Appraiser Indian River County, Florida We have audited the financial statements Indian River County, Florida, including the individual fund financial statements of the Property Appraiser, as of and for the year ended September 30, 2006, and have issued our report thereon dated February 9, 2007. We conducted our audit in accordance with United States generally accepted auditing standards, and Government Auditing Standards issued by the Comptroller General of the United States. We have issued our Independent Auditors' Report on Compliance and Internal Control over Financial Reporting dated February 9, 2007, which should be considered in conjunction with this management letter. Additionally, our audit was conducted in accordance with the provisions of Chapter 10.550, Rules of the Auditor General, which govern the conduct of local governmental entity audits performed in the State of Florida and require that certain items be addressed in this letter. The Rules of the Auditor General (Section 10.554(1)(h)1.) require that we address in the management letter, if not already addressed in the auditors' report on compliance and internal controls or schedule of findings and questioned costs, whether or not recommendations made in the preceding annual financial audit report have been followed. The recommendations made in the prior year have been corrected. As required by the Rules of the Auditor General (Section 10.554(1)(h)2.), the scope of our audit included a review of the provisions of Section 218.415, Florida Statutes, regarding the investment of public funds. In connection with our audit, we determined that the Property Appraiser, Indian River County, Florida, complied with Section 218.415, Florida Statutes. The Rules of the Auditor General (Section 10.554(l)(h)3.) require that we address in the management letter any findings and recommendations to improve financial management, accounting procedures, and internal controls. a In connection with our audit, we did not have any such findings or recommendations. The Rules of the Auditor General (Section 10.554(1)(h)4.) require disclosure in the management letter of the following matters if not already addressed in the auditors' reports on compliance and internal controls or schedule of findings and questioned costs and are not clearly inconsequential: (1) violations of laws, rules, regulations, and contractual provisions that have occurred, or are likely to have occurred; (2) improper or illegal expenditures; (3) improper or inadequate accounting procedures (e.g., the omission of required disclosures from the financial statements); (4) failures to properly record financial transactions; and (5) other inaccuracies, shortages, defalcations, and instances of fraud discovered by, or that come to the attention of, the auditors. Our audit did not disclose any of these matters. "Providing Vision and Direction to our Clients" Member A1CPA Member AICPA Division For CPA Firms Member FICPA Private Companies Practice Section 312 a o Harris, Cotherman, Jones, Price & Associates Cettified Public Accountants - Chartered Property Appraiser Page Two This management letter is intended solely for the information and use of management, the Property Appraiser, Indian River County, the Auditor General of the State of Florida, and applicable federal and state agencies, and is not intended to be and should not be used by anyone other than these specified parties. Vero ach, Florida n February 9, 2007 313 314 E3 315 Harris, Cotherman, Jones, Price & Associates Certified Public Accountants - Chartered 5070 North Highway AlA, Suite 250 Vero Beach, FL 32963 Tel 772-234-8484 Fax 772-234-8488 Report on Special Purpose Financial Statements Prepared in Compliance with a Regulatory Provision That Results in an Incomplete Presentation But One That is Otherwise in Conformity with Generally Accepted Accounting Principles The Honorable Roy Raymond Sheriff Indian River County, Florida We have audited the accompanying fund financial statements of Indian River County, Florida Sheriff as of and for the fiscal year ended September 30, 2006, as listed in the table of contents. These financial statements are the responsibility of the Sheriff's management. Our responsibility is to express an opinion on the financial statements based on our audit. We conducted our audit in accordance with U.S, generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the fund financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the fund financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As described in Note 1, the accompanying fund financial statements referred to above present the financial position of only the Sheriff at September 30, 2006, and the results of its operations for the year then ended. These statements are not intended to be a complete presentation of the financial position of Indian River County. In our opinion, the fund financial statements referred to above present fairly, in all material respects, the financial position of the Sheriff as of September 30, 2006, and the results of its operations for the year then ended in conformity with U.S. generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated February 9, 2007 on our consideration of the Sheriffs internal control over financial reporting and on our tests of compliance with certain provisions of laws, regulations, contracts, and grant agreements. This report is intended solely for the information and use of management, the Sheriff, Indian River County, the Auditor General of the State of Florida, and applicable federal and state agencies, and is not intended to be and should not be used by anyone other than these specified parties. Vero Mach, Florida February 9, 2007 "Providing Vision and Direction to our Clients" Member AICPA Member AICPA Division For CPA Firms Member FICPA Private Companies Practice Section 316 Indian River County, Florida Sheriff Balance Sheet Governmental Funds For the Year Ended September 30, 2006 ASSETS Cash and cash equivalents Accounts receivable - net Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Due to other governments Escrow deposits Unearned revenue Total liabilities Fund Balances: Unreserved Total fund balances Total liabilities and fund balances General Special Revenue Total Governmental Funds $ 1,659,782 $ 2,182,994 $ 3,842,776 42,244 12,063 54,307 $ 1,702,026 $ 2,195,057 $ 3,897,083 $ 945,337 $ 7,822 $ 953,159 756,637 3,498 760,135 52 - 52 - 489 489 1,702,026 11,809 1,713,835 2,183,248 2,183,248 - 2,183,248 2,183,248 $ 1,702,026 $ 2,195,057 $ 3,897,083 The accompanying notes are an integral part of the financial statements. 317 The accompanying notes are an integral part of the financial statements. 318 Indian River County, Florida O Sheriff Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds For the Year Ended September 30, 2006 Total Special Governmental General Revenue Funds REVENUES Intergovernmental $ - $ 130,449 $ 130,449 Charges for services - 350,337 350,337 Fines and forfeitures - 245,501 245,501 a Miscellaneous - 113,015 113,015 Total revenues - 839,302 839,302 EXPENDITURES Public safety 34,837,575 795,618 35,633,193 Court related 1,377,284 - 1,377,284 Total expenditures 36,214,859 795,618 37,010,477 Excess of revenues over (under) expenditures (36,214,859) 43,684 (36,171,175) OTHER FINANCING SOURCES (USES) Transfers from Board of County Commissioners 36,971,496 194,398 37,165,894 Transfers to Board of County Commissioners (756,637) - (756,637) Total other financing sources 36,214,859 194,398 36,409,257 Net change in fund balances - 238,082 238,082 Fund balances at beginning of year - 1,945,166 1,945,166 O Fund balances at end of year $ - $ 2,183,248 $ 2,183,248 n The accompanying notes are an integral part of the financial statements. 318 Indian River County, Florida Sheriff Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual General Fund For the Year Ended September 30, 2006 REVENUES Miscellaneous Total revenues EXPENDITURES Public safety Court related Total expenditures Excess of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) Transfers from Board of County Commissioners Transfers to Board of County Commissioners Total other financing sources Net change in fund balances Fund balances at beginning of year Fund balances at end of year Budgeted Amount Original Final Actual Variance with Final Budget - Positive (Negative) 36,403,772 35,582,239 34,837,575 744,664 1,307,904 1,389,257 1,377,284 11,973 37,711,676 36,971,496 36,214,859 756,637 (37,711,676) (36,971,496) (36,214,859) 756,637 37,711,676 36,971,496 36,971,496 - - - (756,637) (756,637) 37,711,676 36,971,496 36,214,859 (756,637) The accompanying notes are an integral part of the financial statements. 319 Indian River County, Florida Sheriff Statement of Fiduciary Net Assets Agency Fund For the Year Ended September 30, 2006 ASSETS Cash and cash equivalents Total assets LIABILITIES Escrow deposits Total liabilities $ 173,868 $ 173,868 $ 173,868 $ 173,868 The accompanying notes are an integral part of the financial statements. 320 Indian River County, Florida Sheriff Notes To Financial Statements Year Ended September 30, 2006 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Sheriff is a County agency and a local governmental entity pursuant to Article VIII, Section I(d) of the Constitution of the State of Florida. For financial statement and reporting purposes, the Sheriff does not meet the definition of a legally separate organization and is not considered to be a component unit. The Sheriff is considered to be a part of the primary government of Indian River County. The financial statements contained herein represent the financial transactions of the Sheriff only. The format of the Sheriff's statements has been prepared in accordance with the presentation requirements of GASB 34 for fund financial statements. In addition, the Sheriff early implemented GASB Statement 40, Deposit and Investment Risk Disclosures. The following is a summary of the significant accounting principles and policies used in the preparation of the accompanying financial statements. A. Description of Funds and Account Groups The accounting records are organized for reporting purposes on the basis of governmental funds and a fiduciary fund. Governmental Funds General Fund — The General Fund, which is a governmental fund, is used to account for all revenues and expenditures applicable to the general operations of the Sheriff, which are not accounted for in another fund. All general operating revenues, which are not restricted or designated as to use by outside sources, are recorded in the General Fund. The governmental fund measurement focus is based upon determination of financial position and changes in financial position (sources, uses and balances of I I financial resources) rather than upon net income determination. Special Revenue Fund — The Special Revenue Fund accounts for the proceeds of specific revenue sources that are legally restricted or committed for public safety such as police education, special purpose equipment, jail commissary, and special law enforcement activities. Fiduciary Fund Agency Fund — The Agency Fund is used to account for assets held by the Sheriff as an agent. The Agency Fund is custodial in nature and does not involve measurement of results of operations. B. Basis of Accounting, Measurement Focus and Presentation The accounts of the governmental funds are maintained on the modified accrual basis. The fiduciary fund is reported on an accrual basis. Under the modified accrual basis, expenditures are recorded at the time liabilities are incurred. Revenues are recorded when received in cash or when they are considered both measurable and available. Revenues collected in excess of expenditures are not considered earned and are reflected as liabilities. O321 Indian River County, Florida Sheriff Notes To Financial Statements Year Ended September 30, 2006 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued C. Budgetary Requirements State statutes require the Sheriff to submit a proposed budget to the Board of County Commissioners by May 1 of each year. The budget reflects the estimated amounts of all proposed expenditures for operating and equipping the Sheriff's office and jail. Capital improvements for these buildings are funded by the Board. The budget is prepared on a basis consistent with generally accepted accounting principles. After review and approval of the budget by the Board, the Sheriff is authorized to transfer budgeted amounts between objects and departments as long as he does not exceed the total appropriations approved by the Board. Increases in the total budget are subject to the review and approval of the Board. The budgeted revenues and expenditures in the accompanying financial statements reflect all amendments approved by the Board of County Commissioners. D. Compensated Absences The Sheriff accrues a liability for employees' rights to receive compensation for future absences when m certain conditions are met. The Sheriff does not, nor is he legally required to, accumulate expendable available financial resources to liquidate this obligation. Accordingly, the liability for compensated absences is not reported on the Sheriff's financial statements. Additional information on the liability is reflected in subsequent Note 6. n E. Transfer Out In accordance with Florida Statutes, all revenues in excess of expenditures as of year-end are owed to the Board of County Commissioners. These "excess fees" totaled $756,637 and are reported as a transfer to the Board of County Commissioners at year end. NOTE 2 - CASH Deposits At September 30, 2006, the carrying amount of the Sheriffs deposits was $4,016,644, and the bank balance was $5,001,649. All deposits with financial institutions were 100% insured by federal depository insurance or by collateral provided by qualified public depositories to the State Treasurer in accordance with Section 280.01, Florida Statutes, also known as the Florida Security for Public Deposits Act. The Sheriffs office adopted the Board of County Commissioners' investment policy. This policy a requires the Sheriffs office to follow the above state law (governing custodial credit risk) for cash deposits. Refer to the County -wide Note 2, Cash and Investments, for definition of custodial credit risk. 322 Indian River County, Florida Sheriff Notes To Financial Statements Year Ended September 30, 2006 NOTE 3 — CAPITAL ASSETS Tangible personal property used by the Sheriff in operations is reported in the financial statements of the County. State law requires the Sheriff to account for all tangible property used by the Sheriff. A summary of changes in Capital Assets is as follows: Tangible Personal Property NOTE 4 — PENSION PLAN Florida Retirement System Beginning Ending Balance Balance 10/01/05 Additions Deletions 09/30/06 11,793.976 2,693,060 1,124,367 13,362,669 Plan Description: The Sheriff's employees participate in the Florida Retirement System (FRS), a cost- sharing multiple -employer public employee retirement system, administered by the Florida Department of Administration. The FRS is noncontributory for all members; all contributions are made by the employer. The FRS provides for vesting of benefits after six years of creditable service. Normal retirement benefits are available to employees who retire at or after age 62 with six or more years of service. Early retirement is available after six years of service with a five percent reduction in benefits for each year prior to the normal retirement age. Retirement benefits are based on age, average compensation, and years -of -service credit where average compensation is computed as the average of an individual's five highest years of earnings. For further information concerning the Florida Retirement System and contribution rates, please read the County- wide note on the Florida Retirement System. Contributions to the FRS for the fiscal year ended September 30, 2006, were equal to 16.11 % of the annual covered payroll. Contributions to the FRS for the fiscal years ended September 30, 2004, 2005, 2006 were $2,880,021, $2,924,205, and $3,334,040 respectively. These amounts are equal to 100% of the required contribution for each year. NOTE 5 — RISK MANAGEMENT Indian River County maintains a risk management program that provides for coverage of risks of loss Lnl related to torts, theft of, damage to and destruction of assets, errors or omissions, injuries to employees, natural disasters, and medical and life insurance coverage for employees and their eligible dependents. Various excess catastrophe insurance policies with a commercial carrier are also in force for claims exceeding the amount chargeable against the Self-insurance Fund. The Sheriff participated in the County's self-insurance program during fiscal year 2006 at an annual cost of approximately $3,159,550. 323 Indian River County, Florida Sheriff Notes To Financial Statements Year Ended September 30, 2006 NOTE 6 — LONG-TERM LIABILITIES Changes in Long -Term Liabilities The following is a schedule of changes in long-term liabilities as of September 30, 2006: Beginning Ending Balance Balance 10/01/05 Additions Deletions 09/30/06 Accrued Compensated Absences 1,544.451 $3,164,458 $3,064,003 1,644,906 Of the $1,644,906 liability for accrued compensated absences, management estimates that $775,000 will be due and payable within one year. The long-term liabilities are not reported in the financial statements of the Sheriff since they are not payable from available spendable resources. They are reported in the financial statements of the County. NOTE 7 — OPERATING LEASES The Sheriff has entered into noncancelable operating leases as lessee. Lease expenditures totaled $67,358 for the year ended September 30, 2006. The following is a schedule by years of minimum future rentals to be paid by the Sheriff for noncancelable operating leases as of September 30: Year Amount 2007 $ 99,068 2008 49,332 2008 3,551 Total Future Minimum Lease Payments 151 951 NOTE 8 — COMMITMENTS AND CONTINGENCIES Various suits and claims are currently pending against the Sheriff. It is impossible for the Sheriff to accurately quantify the exposure involved given the jury's latitude in assessing compensatory and punitive damages, and the court's latitude in awarding attorney's fees. The Sheriff intends to vigorously defend against these lawsuits and believes he has a good chance of prevailing on their merits. 324 Harris, Cotherman, n Jones, Price & Associates Certified Public Accountants - Chartered �J 5070 North Highway AIA, Suite 250 a Vero Beach, FL 32963 Tel 772-234-8484 Fax 772-234-8488 a Report on Internal Control over Financial Reporting P P g n and on Compliance and Other Matters I I Required by Government Auditing Standards The Honorable Roy Raymond Sheriff Indian River County, Florida We have audited the basic financial statements of Indian River County, Florida including the fund financial statements of the Sheriff, as of and for the year ended September 30, 2006, and issued our report thereon dated February 9, 2007. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Internal Control Over Financial Reporting In planning and performing our audit, we considered the Sheriffs internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide an opinion on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. A material weakness is a reportable condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements caused by error or fraud in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Sheriff's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. Lel This report is intended solely for the information and use of management, the Sheriff, Indian River County, the Auditor General of the State of Florida, and applicable federal and state agencies, and is not intended to be and shou,ld not be used by anyone other than theses ecified parties. 1 O Vero BeKch, Florida February 9, 2007 O "Providing Vision and Direction to our Clients" Member AICPA Member AICPA Division For CPA Firms Member FICPA Private Companies Practice Section 325 Harris, Cotherman, Jones, Price & Associates Certified Public Accountants - Chartered 5070 North Highway AlA, Suite 250 Vero Beach, FL 32963 Tel 772-234-8484 Fax 772-234-8488 Management Letter The Honorable Roy Raymond Sheriff Indian River County, Florida We have audited the basic financial statements of Indian River County, Florida, including the individual fund financial statements of the Sheriff, as of and for the year ended September 30, 2006, and have issued our report thereon dated February 9, 2007. We conducted our audit in accordance with United States generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. We have issued our Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters Required by Government Auditing Standards dated February 9, 2007, which should be considered in conjunction with this management letter. Additionally, our audit was conducted in accordance with the provisions of Chapter 10.550, Rules of the Auditor General, which govern the conduct of local governmental entity audits performed in the State of Florida and require that certain items be addressed in this letter. The Rules of the Auditor General (Section 10.554(1)(h)1.) require that we address in the management letter, if not already addressed in the auditors' report on compliance and internal controls or schedule of findings and questioned costs, whether or not recommendations made in the preceding annual financial audit report have been followed. No recommendations made in the prior year. As required by the Rules of the Auditor General (Section 10.554(1)(h)2.), the scope of our audit included a review of the provisions of Section 218.415, Florida Statutes, regarding the investment of public funds. In connection with our audit, we determined that the Sheriff, Indian River County, Florida, complied with Section 218.415, Florida Statutes. The Rules of the Auditor General (Section 10.554(')(h)3.) require that we address in the management letter any findings and recommendations to improve financial management, accounting procedures, and internal controls. In connection with our audit, we did not have any such findings or recommendations. The Rules of the Auditor General (Section 10.554(1)(h)4.) require disclosure in the management letter of the following matters if not already addressed in the auditors' reports on compliance and internal controls or schedule of findings and questioned costs and are not clearly inconsequential: (1) violations of laws, rules, regulations, and contractual provisions that have occurred, or are likely to have occurred; (2) improper or illegal expenditures; (3) improper or inadequate accounting procedures (e.g., the omission of required disclosures from the financial statements); (4) failures to properly record financial transactions; and (5) other inaccuracies, shortages, defalcations, and instances of fraud discovered by, or that come to the attention of, the auditors. Our audit did not disclose any of these matters. "Providing Vision and Direction to our Clients" Member AICPA Member AICPA Division For CPA Firms Member FICPA Private Companies Practice Section 326 Harris, Cotherman, Jones, Price &.Associates Certified Public Accountants - Chartered Sheriff (1 Page Two This management letter is intended solely for the information and use of management, the Sheriff, Indian River County, the Auditor General of the State of Florida, and applicable federal and state agencies, and is not intended to be and should not be used by anyone other than these specified parties. Vero Beach, Florida February 9, 2007 R 327 328 t 329 Harris, Cotherman, Jones, Price & Associates Certified Public Accountants - Chartered 5070 North Highway AIA, Suite 250 Vero Beach, FL 32963 Tel 772-234-8484 Fax 772-234-8488 Report on Special Purpose Financial Statements Prepared in Compliance with a Regulatory Provision That Results in an Incomplete Presentation But One That is Otherwise in Conformity with Generally Accepted Accounting Principles The Honorable Kay Clem Supervisor of Elections Indian River County, Florida We have audited the accompanying fund financial statements of Indian River County, Florida Supervisor of Elections as of and for the fiscal year ended September 30, 2006, as listed in the table of contents. These financial statements are the responsibility of the Supervisor of Elections' management. Our responsibility is to express an opinion on the financial statements based on our audit. We conducted our audit in accordance with U.S. generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the fund financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the fund financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. r, As described in Note 1, the accompanying fund financial statements referred to above present the financial position of only the Supervisor, of Elections at September 30, 2006, and the results of its operations for the year then ended. These statements are not intended to be a complete presentation of the financial position of Indian River County. In our opinion, the fund financial statements referred to above present fairly, in all material respects, the financial position of the Supervisor of Elections as of September 30, 2006, and the results of its operations for the year then ended in conformity with U.S. generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated February 9, 2007 Li on our consideration of the Supervisor of Elections' internal control over financial reporting and on our tests of compliance with certain provisions of laws, regulations, contracts, and grant agreements. This report is intended solely for the information and use of management, the Supervisor of Elections, Indian River County, the Auditor General of the State of Florida, and applicable federal and state agencies, and is not intended to be and should not be used by anyone other than these specified parties. Vero B ch, Florida February 9, 2007 "Providing Vision and Direction to our Clients" Member AICPA Member AICPA Division For CPA Firms Member F1CPA Private Companies Practice Section 330 Indian River County, Florida Supervisor of Elections Balance Sheet Governmental Funds September 30, 2006 ASSETS Cash and cash equivalents Prepaid expenses Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Due to other governments Unearned revenue Total liabilities Fund Balances: Fund balance Total fund balances Total liabilities and fund balances The accompanying notes are an integral part of the financial statements. 331 Total Special Governmental General Revenue Funds $ 57,419 $ 4,236 $ 61,655 22,009 - 22,009 $ 79,428 $ 4,236 $ 83,664 $ 38,153 $ - $ 38,153 41,275 - 41,275 - 4,236 4,236 79,428 4,236 83,664 $ 79,428 $ 4,236 $ 83,664 The accompanying notes are an integral part of the financial statements. 331 Indian River County, Florida Supervisor of Elections Statement of Revenues, Expenditures, and Changes in Fund Balance Governmental Funds For the Year Ended September 30, 2006 REVENUES Intergovernmental Charges for services Interest Total revenues EXPENDITURES General government Total expenditures Excess of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) Transfers from Board of County Commissioners Transfer from other funds Transfers to Board of County Commissioners Transfer to other funds Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year Total Special Governmental General Revenue Funds $ 9,489 $ 43,389 $ 52,878 59,925 - 59,925 4,514 - 4,514 73,928 43,389 117,317 1,259,041 50,521 1,309,562 (1,185,113) (7,132) (1,192,245) 1,233,520 - 1,233,520 - 7,132 7,132 (41,275) - (41,275) (7,132) - (7,132) 1,185,113 7,132 1,192,245 The accompanying notes are an integral part of the financial statements. 332 Indian River County, Florida Supervisor of Elections Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual General Fund For the. Year Ended September 30, 2006 Budgeted Amount Original Final Actual REVENUES Variance with Final Budget - Positive (Negative) Intergovernmental $ - $ 9,489 $ 9,489 $ - Charges for services - 56,256 59,925 3,669 Interest - - 4,514 4,514 Total revenues - 65,745 73,928 8,183 EXPENDITURES General government 1,233,520 1,299,265 1,259,041 40,224 Total expenditures 1,233,520 1,299,265 1,259,041 40,224 Excess of revenues over (under) expenditures (1,233,520) (1,233,520) (1,185,113) 48,407 OTHER FINANCING SOURCES (USES) Transfers from Board of County Commissioners 1,233,520 1,233,520 1,233,520 - Transfers to Board of County Commissioners - - (41,275) (41,275) Transfers to other funds - - (7,132) (7,132) Total other financing sources (uses) 1,233,520 1,233,520 1,185,113 (48,407) Net change in fund balances $ - $ - - $ - Fund balances at beginning of year Fund balances at end of year The accompanying notes are an integral part of the financial statements. 333 L,A. h gh, 1. -0 P -M 334 Indian River County, Florida Supervisor of Elections a Notes To Financial Statements Year Ended September 30, 2006 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Supervisor of Elections is a County agency and a local governmental entity pursuant to Article VIII, Section 1(d) of the Constitution of the State of Florida. For financial statement and reporting purposes, the Supervisor of Elections does not meet the definition of a legally separate organization and is not considered to be a component unit. The Supervisor of Elections is considered to be a part of the primary government of Indian River County. The financial statements contained herein represent the financial transactions of the Supervisor of Elections only. The format of the Supervisor of Elections' statements has been prepared in accordance with the presentation requirements of GASB 34 for fund financial statements. In addition, the Supervisor of Elections early implemented GASB Statement 40, Deposit and n Investment Risk Disclosures. The following is a summary of the significant accounting principles and policies used in the preparation of the accompanying financial statements. A. Description of Fund The accounting records are organized for reporting purposes on the basis of governmental funds. Governmental Funds General Fund — The General Fund, which is a governmental fund, is used to account for all revenues and expenditures applicable to the general operations of the Supervisor of Elections. All general operating revenues, which are not restricted or designated as to use by outside sources, are recorded in the General Fund. The governmental fund measurement focus is based upon determination of financial position and changes in financial position (sources, uses and balances of financial resources) rather than upon net income determination. Special Revenue Fund — The Special Revenue Fund accounts for the grant proceeds from the State and matching funds from the County. These funds are legally restricted for voter education and poll worker recruitment and training. B. Basis of Accounting, Measurement Focus and Presentation '-� The accounts of the governmental funds are maintained on the modified accrual basis. Under the modified accrual basis, expenditures are recorded at the time liabilities are incurred. Revenues are recorded when received in cash or when they are considered both measurable and available. Revenues collected in excess of expenditures are not considered earned and are reflected as liabilities. 335 Indian River County, Florida Supervisor of Elections Notes To Financial Statements Year Ended September 30, 2006 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued C. Budgetary Requirements State statutes require the Supervisor of Elections to submit a proposed budget to the Board of County Commissioners by May 1 of each year. After review and approval of the budget by the Board, the Supervisor or Elections is authorized to transfer budgeted amounts between objects and departments as long as she does not exceed the total appropriations approved by the Board. Increases in the total budget are subject to the review and approval of the Board. The budgeted revenues and expenditures in the accompanying financial statements reflect all amendments approved by the Board of County Commissioners. The budget is prepared on a basis consistent with generally accepted accounting principles. D. Prepaid Expenses Deposits in the governmental funds represent prepayments for services that will be used in future periods. The Supervisor of Election's policy is to record the expenditure for the services when they are used rather than when the cash is disbursed. E. Capital Assets Acquisitions of equipment are recorded as expenditures at the time of purchase for governmental fund financial statements. Tangible personal property used by the Supervisor of Elections in operations is reported in the financial statements of the County. Refer to the County -wide note on capital assets for the capitalization threshold, depreciation methodology and useful lives. F. Compensated Absences The Supervisor of Elections accrues a liability for employees' rights to receive compensation for future absences when certain conditions are met. The Supervisor of Elections does not, nor is she legally required to, accumulate expendable available financial resources to liquidate this obligation. Accordingly, the liability for compensated absences is not reported on the Supervisor of Elections' financial statements. Additional information on the liability is reflected in subsequent Note 5. G. Transfer Out In accordance with Florida Statutes, all revenues in excess of expenditures as of year-end are owed to the Board of County Commissioners before November 1. These "excess fees" totaled $41,275 and are reported as a transfer to the Board of County Commissioners and a liability at year end. 336 OIndian River County, Florida Supervisor of Elections Notes To Financial Statements Year Ended September 30, 2006 NOTE 2 - CASH Deposits At September 30, 2006, the carrying amount of the Supervisor of Elections' deposits was $61,655, and the bank balance was $114,472. All deposits with financial institutions were 100% insured by federal depository insurance or by collateral provided by qualified public depositories to the State Treasurer in accordance with Section 280.01, Florida Statutes, also known as the Florida Security for Public Deposits a Act. The Supervisor of Elections has adopted the Board of County Commissioners' investment policy. This policy requires the Supervisor of Elections' office to follow the above state law (governing custodial credit risk) for cash deposits. Refer to the County -wide Note 2, Cash and Investments, for definition of custodial credit risk. NOTE 3 — PENSION PLAN Florida Retirement System Plan Description: The Supervisor of Elections' employees participate in the Florida Retirement System (FRS), a cost-sharing multiple -employer public employee retirement system, administered by the Florida Department of Administration. The FRS is noncontributory for all members; all contributions are made by the employer. The FRS provides for vesting of benefits after six years of creditable service. Normal retirement benefits are available to employees who retire at or after age 62 with six or more years of service. Early retirement is available after six years of service with a five percent reduction in benefits for each year prior to the normal retirement age. Retirement benefits are based on age, average compensation, and years -of -service credit where average compensation is computed as the average of an individual's five highest years of earnings. For further information concerning the Florida Retirement System and contribution rates, please read the County- wide note on the Florida Retirement System. Contributions to the FRS for the fiscal year ended September 30, 2006, were equal to 9.68% of the annual covered payroll. Contributions to the FRS for the fiscal years ended September 30, 2004, 2005, 2006 were $38,421, $38,851, and $46,318 respectively. These amounts are equal to 100% of the required contribution for each year. 337 NOTE 4 — RISK MANAGEMENT D Indian River County maintains a risk management program that provides for coverage of risks of loss related to torts, theft of, damage to and destruction of assets, errors or omissions, injuries to employees, natural disasters, and medical and life insurance coverage for employees and their eligible dependents. Various excess catastrophe insurance policies with a commercial carrier are also in force for claims exceeding the amount chargeable against the Self-insurance Fund. The Supervisor of Elections participated in the County's self-insurance program during fiscal year 2006 at an annual cost of approximately $78,166. NOTE 5 — LONG-TERM LIABILITIES Changes in Long -Term Liabilities The following is a schedule of changes in long-term liabilities as of September 30, 2006: Beginning Ending Balance Balance 10/01/05 Additions Deletions 09/30/06 Accrued Compensated Absences J27,247 $22,269 29 900 Of the $29,900 liability for accrued compensated absences, management estimates that $10,000 will be due and payable within one year. The liability for accrued compensated absences is not reported in the financial statements of the Supervisor of Elections since it is not payable from available spendable resources. The liability is reported in the financial statements of the County. NOTE 6 — OPERATING LEASES The Supervisor of Elections has entered into a noncancelable operating lease as lessee for a mail machine. Lease expenditures totaled $4,311 for the year ended September 30, 2006. The following is a schedule by years of minimum future rentals to be paid by the Supervisor of Elections for the noncancelable operating lease as of September 30: Year Amount Indian River County, Florida 5,478 Supervisor of Elections Notes To Financial Statements 5,478 Year Ended September 30, 2006 5,478 NOTE 4 — RISK MANAGEMENT D Indian River County maintains a risk management program that provides for coverage of risks of loss related to torts, theft of, damage to and destruction of assets, errors or omissions, injuries to employees, natural disasters, and medical and life insurance coverage for employees and their eligible dependents. Various excess catastrophe insurance policies with a commercial carrier are also in force for claims exceeding the amount chargeable against the Self-insurance Fund. The Supervisor of Elections participated in the County's self-insurance program during fiscal year 2006 at an annual cost of approximately $78,166. NOTE 5 — LONG-TERM LIABILITIES Changes in Long -Term Liabilities The following is a schedule of changes in long-term liabilities as of September 30, 2006: Beginning Ending Balance Balance 10/01/05 Additions Deletions 09/30/06 Accrued Compensated Absences J27,247 $22,269 29 900 Of the $29,900 liability for accrued compensated absences, management estimates that $10,000 will be due and payable within one year. The liability for accrued compensated absences is not reported in the financial statements of the Supervisor of Elections since it is not payable from available spendable resources. The liability is reported in the financial statements of the County. NOTE 6 — OPERATING LEASES The Supervisor of Elections has entered into a noncancelable operating lease as lessee for a mail machine. Lease expenditures totaled $4,311 for the year ended September 30, 2006. The following is a schedule by years of minimum future rentals to be paid by the Supervisor of Elections for the noncancelable operating lease as of September 30: Year Amount 2007 5,478 2007 5,478 2008 5,478 2008 1,437 Total Future Minimum Lease Payments $ 18.681 338 0 aHarris, Cotherman, Jones, Price & Associates Certified Public Accountants - Chartered 5070 North Highway AlA, Suite 250 Vero Beach, FL 32963 Tel 772-234-8484 Fax 772-234-8488 Report on Internal Control over Financial Reporting and on Compliance and Other Matters Required by Government Auditing Standards The Honorable Kay Clem n Supervisor of Elections I I Indian River County, Florida We have audited the basic financial statements of Indian River County, Florida including the fund financial statements of the Supervisor of Elections, as of and for the year ended September 30, 2006, and issued our report thereon dated February 9, 2007. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Internal Control Over Financial Reporting In planning and performing our audit, we considered the Supervisor of Elections' internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide an opinion on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. A material weakness is a reportable condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements caused by error or fraud in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Supervisor of Elections' financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations and a contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests rl disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. This report is intended solely for the information and use of management, the Supervisor of Elections, Indian River County, the Auditor General of the State of Florida, and applicable federal and state agencies, and is not intended to be and should not be used by anyone other than these specified parties. l . -i Vero Bach, Florida February 9, 2007 "Providing Vision and Direction to our Clients" Member AICPA Member AICPA Division For CPA Firms Member FICPA Private Companies Practice Section a339 Management Letter The Honorable Kay Clem Supervisor of Elections Indian River County, Florida We have audited the basic financial statements of Indian River County, Florida, including the fund financial statements of the Supervisor of Elections, as of and for the year ended September 30, 2006, and have issued our report thereon dated February 9, 2007. We conducted our audit in accordance with United States generally accepted auditing standards, and Government Auditing Standards issued by the Comptroller General of the United States. We have issued our Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters Required by Government Auditing Standards dated February 9, 2007, which should be considered in conjunction with this management letter. Additionally, our audit was conducted in accordance with the provisions of Chapter 10.550, Rules of the " Auditor General, which govern the conduct of local governmental entity audits performed in the State of Florida and require that certain items be addressed in this letter. The Rules of the Auditor General (Section 10.554(1)(h)l.) require that we address in the management letter, if not already addressed in the auditors' report on compliance and internal controls or schedule of findings and questioned costs, whether or not recommendations made in the preceding annual financial audit report have been followed. No recommendations were made in the prior year. As required by the Rules of the Auditor General (Section 10.554(1)(h)2.), the scope of our audit included LJ a review of the provisions of Section 218.415, Florida Statutes, regarding the investment of public funds. In connection with our audit, we determined that the Supervisor of Elections, Indian River County, a Florida, complied with Section 218.415, Florida Statutes. The Rules of the Auditor General (Section 10.554(1)(h)3.) require that we address in the management letter any findings and recommendations to improve financial management, accounting procedures, and internal controls. In connection with our audit, we did not have any such findings or recommendations. The Rules of the Auditor General (Section 10.554(1)(h)4.) require disclosure in the management letter of the following matters if not already addressed in the auditors' reports on compliance and internal controls or schedule of findings and questioned costs and are not clearly inconsequential: (1) violations of laws, rules, regulations, and contractual provisions that have occurred, or are likely to have occurred; (2) improper or illegal expenditures; (3) improper or inadequate accounting procedures (e.g., the omission of required disclosures from the financial statements); (4) failures to properly record financial transactions; and (5) other inaccuracies, shortages, defalcations, and instances of fraud discovered by, or that come to the attention of, the auditors. Our audit did not disclose any of these matters. "Providing Vision and Direction to our Clients" LJ Member AICPA Member AICPA Division For CPA Firms Member FICPA Private Companies Practice Section 340 0 Harris, Cotherman, Jones, Price & Associates Certified Public Accountants - Chartered 5070 North Highway AlA, Suite 250 Vero Beach, FL 32963 Tel 772-234-8484 0 Fax 772-234-8488 Management Letter The Honorable Kay Clem Supervisor of Elections Indian River County, Florida We have audited the basic financial statements of Indian River County, Florida, including the fund financial statements of the Supervisor of Elections, as of and for the year ended September 30, 2006, and have issued our report thereon dated February 9, 2007. We conducted our audit in accordance with United States generally accepted auditing standards, and Government Auditing Standards issued by the Comptroller General of the United States. We have issued our Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters Required by Government Auditing Standards dated February 9, 2007, which should be considered in conjunction with this management letter. Additionally, our audit was conducted in accordance with the provisions of Chapter 10.550, Rules of the " Auditor General, which govern the conduct of local governmental entity audits performed in the State of Florida and require that certain items be addressed in this letter. The Rules of the Auditor General (Section 10.554(1)(h)l.) require that we address in the management letter, if not already addressed in the auditors' report on compliance and internal controls or schedule of findings and questioned costs, whether or not recommendations made in the preceding annual financial audit report have been followed. No recommendations were made in the prior year. As required by the Rules of the Auditor General (Section 10.554(1)(h)2.), the scope of our audit included LJ a review of the provisions of Section 218.415, Florida Statutes, regarding the investment of public funds. In connection with our audit, we determined that the Supervisor of Elections, Indian River County, a Florida, complied with Section 218.415, Florida Statutes. The Rules of the Auditor General (Section 10.554(1)(h)3.) require that we address in the management letter any findings and recommendations to improve financial management, accounting procedures, and internal controls. In connection with our audit, we did not have any such findings or recommendations. The Rules of the Auditor General (Section 10.554(1)(h)4.) require disclosure in the management letter of the following matters if not already addressed in the auditors' reports on compliance and internal controls or schedule of findings and questioned costs and are not clearly inconsequential: (1) violations of laws, rules, regulations, and contractual provisions that have occurred, or are likely to have occurred; (2) improper or illegal expenditures; (3) improper or inadequate accounting procedures (e.g., the omission of required disclosures from the financial statements); (4) failures to properly record financial transactions; and (5) other inaccuracies, shortages, defalcations, and instances of fraud discovered by, or that come to the attention of, the auditors. Our audit did not disclose any of these matters. "Providing Vision and Direction to our Clients" LJ Member AICPA Member AICPA Division For CPA Firms Member FICPA Private Companies Practice Section 340 0 Harris, Cotherman, Jones, Price & Associates Certified Public Accountants - Chartered Supervisor of Elections Page Two `-j This management letter is intended solely for the information and use of management, the Supervisor of Elections, Indian River County, the Auditor General of the State of Florida, and applicable federal and state agencies, and is not intended to be and should not be used by anyone other than these specified parties. ..�:��.cc°i •�r�r��x � — /cut Vero B ach, Florida February 9, 2007 341 H %h �•�r V -.m 342 0 0 1 1 343 1 Harris, Cotherman, Jones, Price & Associates Certified Public Accountants - Chartered 5070 North Highway AlA, Suite 250 Vero Beach, FL 32963 Tel 772-234-8484 Fax 772-234.8488 Report on Special Purpose Financial Statements Prepared in Compliance with a Regulatory Provision That Results in an Incomplete Presentation But One That is Otherwise in Conformity with Generally Accepted Accounting Principles The Honorable Charles W. Sembler Tax Collector Indian River County, Florida We have audited the accompanying fund financial statements of Indian River County, Florida Tax Collector as of and for the fiscal year ended September 30, 2006, as listed in the table of contents. These financial statements are the responsibility of the Tax Collector's management. Our responsibility is to express an opinion on the financial statements based on our audit. We conducted our audit in accordance with U.S. generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the fund financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the fund financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management; as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As described in Note 1, the accompanying fund financial statements referred to above present the financial position of only the Tax Collector at September 30, 2006, and the results of its operations for the year then ended. These statements are not intended to be a complete presentation of the financial position of Indian River County. In our opinion, the fund financial statements referred to above present fairly, in all material respects, the financial position of the Tax Collector as of September 30, 2006, and the results of its operations for the year then ended in conformity with U.S. generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated February 9, 2007 Li on our consideration of the Tax Collector's internal control over financial reporting and on our tests of compliance with certain provisions of laws, regulations, contracts, and grant agreements. This report is intended solely for the information and use of management, the Tax Collector, Indian River County, the Auditor General of the State of Florida, and applicable federal and state agencies, and is not inten ed to be /and �should not be used by anyone other than these specified parties. `J� a y Vero B ach, Florida February 9, 2007 F-1 "Providing Vision and Direction to our Clients" Li Member AICPA Member AICPA Division For CPA Firms Member FICPA Private Companies Practice Section 344 Indian River County, Florida Tax Collector Balance Sheet General Fund For the Ended September 30, 2006 ASSETS Cash and cash equivalents $ 2,829,498 Investments 143,132 Accounts receivable 4,190 Inventories 1,065 Total assets $ 2,977,885 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ 272,930 Due to other governments 2,704,528 Other deposits held in escrow 427 Total liabilities 2,977,885 Fund Balances: Fund balance - Total fund balances - Total liabilities and fund balances $ 2,977,885 The accompanying notes are an integral part of the financial statements. 345 Indian River County, Florida Tax Collector Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual General Fund For the Year Ended September 30, 2006 Variance with Final Budget - Budgeted Amount Positive Original Final Actual (Negative) REVENUES Charges for services $ 5,511,776 $ 5,511,776 $ 5,572,750 $ 60,974 Interest 96,000 96,000 231,763 135,763 Total revenues 5,607,776 5,607,776 5,804,513 196,737 EXPENDITURES of County Commissioners General government 3,057,807 2,970,103 2,960,038 10,065 Debt service: Governments Principal 47,201 134,815 134,814 1 Interest 5,043 5,133 5,133 - Total expenditures 3,110,051 3,110,051 3,099,985 10,066 Excess of revenues over (under) expenditures 2,497,725 2,497,725 2,704,528 206,803 OTHER FINANCING SOURCES (USES) Excess fees to Board of County Commissioners (2,210,487) (2,210,487) (2,393,235) (182,748) Excess fees to Other Governments (287,238) (287,238) (311,293) (24,055) Total other financing sources (uses) (2,497,725) (2,497,725) (2,704,528) (206,803) Net change in fund balances $ $ - - $ - Fund balances at beginning of year - Fund balances at end of year $ - The accompanying notes are an integral part of the financial statements. 346 Indian River County, Florida Tax Collector Statement of Fiduciary Net Assets Agency Fund For the Year Ended September 30, 2006 ASSETS Cash and cash equivalents Total assets LIABILITIES Due to other governments Total liabilities $ 3,785,623 $ 3,785,623 $ 3,785,623 $ 3,785,623 The accompanying notes are an integral part of the financial statements. 347 H _Qr •, _�, '-.A 348 H Indian River County, Florida Tax Collector Notes To Financial Statements Year Ended September 30, 2006 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Tax Collector is a County agency and a Iocal governmental entity pursuant to Article VIII, Section 1(d) of the Constitution of the State of Florida. For financial statement and reporting purposes, the Tax Collector does not meet the definition of a legally separate organization and is not considered to be a component unit. The Tax Collector is considered to be a part of the primary government of Indian River County. The financial statements contained herein represent the financial transactions of the Tax Collector only. The format of the Tax Collector's statements has been prepared in accordance with the presentation requirements of GASB 34 for fund financial statements. The following is a summary of the significant accounting principles and policies used in the preparation n of the accompanying financial statements. A. Description of Funds The accounting records are organized for reporting purposes on the basis of governmental funds and a fiduciary fund. Governmental Fund a General Fund — The General Fund, which is a governmental fund, is used to account for all revenues and expenditures applicable to the general operations of the Tax Collector. All general operating revenues, which are not restricted or designated as to use by outside sources, are recorded in the General Fund. (� The governmental fund measurement focus is based upon determination of financial position and �J changes in financial position (sources, uses and balances of financial resources) rather than upon net income determination. Fiduciary Fund Fiduciary Fund — The Fiduciary Fund of the Tax Collector is the Agency Fund, which is used to account for assets held by the Tax Collector as an agent. The Agency Fund is custodial in nature and does not involve measurement of results of operations. B. Basis of Accounting, Measurement Focus and Presentation The accounts of the governmental funds are maintained on the modified accrual basis. The fiduciary fund is reported on an accrual basis. Under the modified accrual basis, expenditures are recorded at the time liabilities are incurred. Revenues are recorded when received in cash or when they are considered both measurable and available. Revenues collected in excess of expenditures are not considered earned and are reflected as liabilities. 349 Indian River County, Florida Tax Collector Notes To Financial Statements Year Ended September 30, 2006 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued C. Budgetary Requirements State statutes require the Tax Collector to prepare an annual budget that clearly reflects the revenues available to his office and the functions for which money is to be expended. The budgeted revenues and expenditures are subject to the review and approval of the Department of Revenue. Management is authorized to transfer budgeted amounts between objects and departments as long as management does not exceed the total appropriations of a fund. Department of Revenue approval is only required when unanticipated revenues are received that management wishes to have appropriated, thereby increasing the total appropriations of a fund. The budget is prepared on a basis consistent with generally accepted accounting principles. D. Cash and Cash Equivalents Cash and cash equivalents include deposits and all highly liquid investments with maturities of ninety days or less when purchased. E. Prepaid Expenses This account represents prepayments for services that will be used in future periods. The Tax Collector's policy is to record the expenditure for the services when they are used rather than when the cash is disbursed. F. Capital Assets Acquisitions of equipment are recorded as expenditures at the time of purchase for governmental fund 0 financial statements. Tangible personal property used by the Tax Collector in operations is reported in the financial statements of the County. Refer to the County -wide note on capital assets for capitalization threshold, depreciation methodology and useful lives. I I G. Compensated Absences The Tax Collector accrues a liability for employees' rights to receive compensation for future absences when certain conditions are met. The Tax Collector does not, nor is he legally required to, accumulate expendable available financial resources to liquidate this obligation. Accordingly, the liability for compensated absences is not reported on the Tax Collector's financial statements. Additional information on the liability is reflected in subsequent Note 6. H. Transfer Out In accordance with Florida Statutes, all revenues in excess of expenditures as of year-end are owed to the Board of County Commissioners and other governments. These "excess fees" are reported as transfers out and a liability and were $2,704,528 at year-end. a 350 Indian River County, Florida Tax Collector Notes To Financial Statements Year Ended September 30, 2006 NOTE 2 - CASH AND INVESTMENTS A. Deposits At September 30, 2006, the carrying amount of the Tax Collector's deposits was $2,297,105 and the bank balance was $2,266,234. All deposits with financial institutions were 100% insured by federal depository insurance or by collateral provided by qualified public depositories to the State Treasurer in accordance with Section 280.01, Florida Statutes, also known as the Florida Security for Public Deposits Act. The Tax Collector modified their investment and deposit policy in February of 2005. This policy requires the Tax Collector's office to follow the above state law (governing custodial credit risk) for deposits. Refer to the County -wide Note 2, Cash and Investments, for definition of custodial credit risk. B. Investments Florida Statutes authorize investments in certificates of deposit, savings accounts, the Local Government Surplus Funds Trust Fund administered by the Florida State Board of Administration, Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency, and direct obligations of the U.S. Treasury. LJ The Tax Collector's investment policy limits portfolio composition to no more than 25% in direct obligations of the U.S. government, money market and certificates of deposit, and money market funds. No more than 95% shall remain in the Local Government Surplus Funds Trust Fund or Bank NOW accounts. No more than 50% is allowable in bank repo agreements. The Tax Collector's September 30, 2006 balance with the Local Government Surplus Funds Trust Fund was $4,311,416. This investment is not categorized for custodial risk since it is not evidenced by securities that exist in physical or book entry form. Please read the County -wide note for additional information concerning the Local Government Surplus Funds Trust Fund. The Tax Collector participated in a capital lease program in which funds are deposited into an escrow account and drawn upon as equipment is purchased. At September 30, 2006, $143,132 of unspent capital lease proceeds remained in the escrow account. NOTE 3 - INVENTORIES Inventories are valued at cost, which approximates market, using the "first -in, first -out" method of accounting. The costs of general fund inventory are recorded as an expenditure when consumed rather than when purchased. Inventory of the Tax Collector, included in the general fund, represents postage. 351 Indian River County, Florida Tax Collector Notes To Financial Statements Year Ended September 30, 2006 NOTE 4 — PENSION PLAN Florida Retirement System Plan Description: The Tax Collector's employees participate in the Florida Retirement System (FRS), a cost-sharing multiple -employer public employee retirement system, administered by the Florida Department of Administration. The FRS is noncontributory for all members; all contributions are made by the employer. The FRS provides for vesting of benefits after six years of creditable service. Normal retirement benefits are available to employees who retire at or after age 62 with six or more years of service. Early retirement is available after six years of service with a five percent reduction in benefits for each year prior to the normal retirement age. Retirement benefits are based on age, average compensation, and years -of -service credit where average compensation is computed as the average of an individual's five highest years of earnings. For further information concerning the Florida Retirement System and contribution rates, please read the County- wide note on the Florida Retirement System. Contributions to the FRS for the fiscal year ended September 30, 2006, were equal to 8.99% of the annual covered payroll. Contributions to the FRS for the fiscal years ended September 30, 2004, 2005, 2006 were $105,463, $110,418 and $138,589 respectively. These amounts are equal to 100% of the required contribution for each year. NOTE 5 — RISK MANAGEMENT Indian River County maintains a risk management program that provides for coverage of risks of loss related to torts, theft of, damage to and destruction of assets, errors or omissions, injuries to employees, natural disasters, and medical and life insurance coverage for employees and their eligible dependents. Various excess catastrophe insurance policies with a commercial carrier are also in force for claims exceeding the amount chargeable against the Self-insurance Fund. The Tax Collector participated in the County's self-insurance program during fiscal year 2006 at an annual cost of approximately $263,336. Further details of this self-insurance program are discussed in the risk management note in the County- wide financial statements. NOTE 6 — LONG-TERM LIABILITIES Changes in Long -Term Liabilities The following is a schedule of changes in long-term liabilities as of September 30, 2006: Beginning Balance 10/01/05 Ending Balance Additions Deletions 09/30/06 Accrued Compensated Absences93 531 25 000 8 318 110 213 352 J 0 Indian River County, Florida Tax Collector Notes To Financial Statements Year Ended September 30, 2006 NOTE 6 — LONG-TERM LIABILITIES - Continued Of the $110,213 liability for accrued compensated absences, management estimates that $5,000 will be due and payable within one year. The long-term liabilities are not reported in the financial statements of the Tax Collector since they are not payable from available spendable resources. They are reported in the financial statements of the County. NOTE 7 — OPERATING LEASES The Tax Collector has entered into noncancelable operating leases as lessee for office space and office equipment. Lease expenditures totaled $169,064 for the fiscal year ended September 30, 2006. The following is a schedule by years of minimum future rentals to be paid by the Tax Collector for noncancelable operating leases as of September 30: Li Year Amount 2007 $ 208,561 2008 185,655 a 2009 97,268 2010 72,272 Total future minimum lease payments 563 756 353 Harris, Cotherman, Jones, Price & Associates Certified Public Accountants - Chartered 5070 North Highway AIA, Suite 250 Vero Beach, FL 32963 Tel 772-234-8484 Fax 772-234-8488 Report on Internal Control over Financial Reporting and on Compliance and Other Matters Required by Government Auditing Standards The Honorable Charles W. Sembler Tax Collector Indian River County, Florida We have audited the basic financial statements of Indian River County, Florida, including the fund financial statements of the Tax Collector, as of and for the year ended September 30, 2006, and issued our report thereon dated February 9, 2007. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Internal Control over Financial Reporting In planning and performing our audit, we considered the Tax Collector's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide an opinion on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. A material weakness is a reportable condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements caused by error or fraud in amounts that would be material in relation to the fmancial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Tax Collector's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. This report is intended solely for the information and use of management, the Tax Collector, Indian River County, the Auditor General of the State of Florida, and applicable federal and state agencies, and is intended to be and sho d not be used by anyone other than these,�pffified parties. Vero B ch, Florida February 9, 2007 "Providing Vision and Direction to our Clients" Member AICPA Member AICPA Division For CPA Firms Private Companies Practice Section 354 Member FICPA r J Harris, Cotherman, Jones, Price & Associates Certified Public Accountants - Chartered 5070 North Highway AIA, Suite 250 Vero Beach, FL 32963 Tel 772-234-8484 Fax 772-234-8488 Management Letter The Honorable Charles W. Sembler Tax Collector Indian River County, Florida We have audited the basic financial statements of Indian River County, Florida, including the fund a financial statements of the Tax Collector, as of and for the year ended September 30, 2006, and have issued our report thereon dated February 9, 2007. We conducted our audit in accordance with United States generally accepted auditing standards, and Government Auditing Standards issued by the Comptroller General of the United States. We have issued our Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters Required by Government Auditing Standards dated February 9, 2007, which should be considered in conjunction with this management letter. Additionally, our audit was conducted in accordance with the provisions of Chapter 10.550, Rules of the Auditor General, which govern the conduct of local governmental entity audits performed in the State of Florida and require that certain items be addressed in this letter. a The Rules of the Auditor General (Section 10.554(1)(h)l.) require that we address in the management letter, if not already addressed in the auditors' report on compliance and internal controls or schedule of findings and questioned costs, whether or not recommendations made in the preceding annual financial aaudit report have been followed. No recommendations were made in the prior year. As required by the Rules of the Auditor General (Section 10.554(l)(h)2.), the scope of our audit included a review of the provisions of Section 218.415, Florida Statutes, regarding the investment of public funds. In connection with our audit, we determined that the Tax Collector, Indian River County, Florida, complied with Section 218.415, Florida Statutes. The Rules of the Auditor General (Section 10.554(1)(h)3.) require that we address in the management letter any findings and recommendations to improve financial management, accounting procedures, and internal controls. In connection with our audit, we did not have any such findings or recommendations. The Rules of the Auditor General (Section 10.554(1)(h)4.) require disclosure in the management letter of the following matters if not already addressed in the auditors' reports on compliance and internal controls or schedule of findings and questioned costs and are not clearly inconsequential: (1) violations of laws, rules, regulations, and contractual provisions that have occurred, or are likely to have occurred; (2) improper or illegal expenditures; (3) improper or inadequate accounting procedures (e.g., the omission of required disclosures from the financial statements); (4) failures to properly record financial transactions; and (5) other inaccuracies, shortages, defalcations, and instances of fraud discovered by, or that come to the attention of, the auditors. Our audit did not disclose any of these matters. "Providing Vision and Direction to our Clients" Member AICPA Member AICPA Division For CPA Firms Member FICPA Private Companies Practice Section 355 o Harris, Cotherman, Jones, Price & Associates Certified Public Accountants - Chartered Tax Collector Page Two This management letter is intended solely for the information and use of management, the Tax Collector, Indian River County, the Auditor General of the State of Florida, and applicable federal and state agencies, and is not intended to be and should not be used by anyone other than these specified parties. Vero B ach, Florida February 9, 2007 356