HomeMy WebLinkAbout2017-047Indian River County
Florida
Comprehensive Annual
Financial Report
For the Fiscal Year
October 1, 2015 through September 30, 2016
The cover picture features the new Indian River County Intergenerational
Recreation Center (iG Center). The iG Center is a 37,000 square foot
multi-purpose sports facility and event venue located in south Indian
River County which houses the Recreation Department offices and hosts
a multitude of sports and events. The recreation portion features diverse
programming attentive to all ages from the young to the young at heart.
Indian River County is now able to offer programming and events through
this facility such as hardwood court basketball, volleyball, martial
arts/karate, virtual recreation, performing arts, gymnastics events,
tradeshows, large seminars, gaming tournaments and celebratory
assemblies. With the opening of the iG Center, the County has expanded
recreational programming services and provided another community
venue with rental options available for a variety of competitive,
educational, social and philanthropic functions.
INDIAN RIVER COUNTY, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR
OCTOBER 1, 2015
THROUGH
SEPTEMBER 30, 2016
Jeffrey R. Smith, CPA, CGFO, CGMA
Clerk of the Circuit Court and Comptroller
Prepared By:
Clerk of the Circuit Court Finance Department
Diane Bernardo, CPA
Finance Director
Indian River County, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Fiscal Year Ended September 30, 2016
Board of County Commissioners as of September 30, 2016
Bob Solari Wesley S. Davis
Chairman Peter D. O'Bryan
Joseph E. Flescher Tim Zorc
Vice -Chairman
Current Board of County Commissioners (effective November 22, 2016)
Joseph E. Flescher Susan Adams
Chairman Bob Solari
Peter D. O'Bryan Tim Zorc
Vice -Chairman
Constitutional Officers as of September 30, 2016
Jeffrey R. Smith David C. Nolte
Clerk of the Circuit Court and Comptroller Property Appraiser
Leslie R. Swan
Supervisor of Elections
Jason Brown
County Administrator
Michael Zito
Assistant CountyAdministrator
Deryl Loar
Sheriff
County Management
Carole Jean Jordan
Tax Collector
Dylan Reingold
County Attorney
Mike Smykowski Rich Szpyrka
Budget Director Director of Public Works
Stan Boling John W. King
Director of Community Development Director of Emergency Services
Vincent Burke
Director of Utilities
Indian River County, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS
Fiscal Year Ended September 30, 2016
INTRODUCTORY SECTION
Page
Number
LETTER OF TRANSMITTAL
ORGANIZATION CHART vii
CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE
IN FINANCIAL REPORTING vi
FINANCIAL SECTION
INDEPENDENT AUDITORS' REPORT 1
MANAGEMENT'S DISCUSSION AND ANALYSIS 5
BASIC FINANCIAL STATEMENTS:
Government -wide Financial Statements:
Statement of Net Position 21
Statement of Activities 23
Fund Financial Statements:
Balance Sheet - Governmental Funds 24
Reconciliation of Total Governmental Fund Balances to
Net Position of Governmental Activities 26
Statement of Revenues, Expenditures, and Changes in
Fund Balances - Governmental Funds 28
Reconciliation of the Statement of Revenues, Expenditures, and Changes
in Fund Balances of Governmental Funds to the Statement of Activities 30
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual - General Fund 31
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual - Impact Fees Fund 32
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual - Secondary Roads Construction Fund 33
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual -Transportation Fund 34
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual - Emergency Services District Fund 35
Statement of Fund Net Position - Proprietary Funds 37
Indian River County, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS - CONTINUED
Fiscal Year Ended September 30, 2016
Page
Number
Statement of Revenues, Expenses, and Changes in
Fund Net Position - Proprietary Funds 38
Statement of Cash Flows - Proprietary Funds 40
Statement of Fiduciary Net Position - Fiduciary Funds 44
Statement of Changes in Fiduciary Net Position -
Other Postemployment Benefits Trust Fund 45
Notes to the Financial Statements 47
REQUIRED SUPPLEMENTARY INFORMATION:
Schedule of the County's Proportionate Share of the Net Pension Liability - Florida
Retirement System (FRS) Defined Benefit Pension Plan 107
Schedule of the County's Proportionate Share of the Net Pension Liability - Retiree Health
Insurance Subsidy (HIS) Program Defined Benefit Pension Plan 107
Schedule of the County's Contributions - FRS Defined Benefit Pension Plan 108
Schedule of the County's Contributions - HIS Defined Benefit Pension Plan 108
Schedule of Funding Progress - Other Postemployment Benefits Plan 109
Schedule of Employer Contributions - Other Postemployment Benefits Plan 109
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES:
Combining Balance Sheet - Nonmajor Governmental Funds 116
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances - Nonmajor Governmental Funds 124
Budgetary Comparison Schedules 132
Combining Statement of Net Position - Internal Service Funds 164
Combining Statement of Revenues, Expenses, and
Changes in Fund Net Position - Internal Service Funds 165
Combining Statement of Cash Flows - Internal Service Funds 166
Combining Statement of Changes in Assets and Liabilities - Agency Fund 170
SCHEDULE 1
SCHEDULE 2
SCHEDULE 3
SCHEDULE 4
SCHEDULE 5
SCHEDULE 6
SCHEDULE 7
SCHEDULE 8
SCHEDULE 9
SCHEDULE 10
SCHEDULE 11
SCHEDULE 12
SCHEDULE 13
SCHEDULE 14
Indian River County, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS- CONTINUED
Fiscal Year Ended September 30, 2016
STATISTICAL SECTION
Net Position by Component - Last Ten Fiscal Years
Changes in Net Position - Last Ten Fiscal Years
Fund Balances, Governmental Funds - Last Ten Fiscal Years
Changes in Fund Balances, Governmental Funds -
Last Ten Fiscal Years
Tax Revenues by Source, Governmental Funds -
Last Ten Fiscal Years
Assessed Value and Actual Value of Taxable Property -
Last Ten Fiscal Years
Property Tax Rates - Direct and Overlapping Tax Rates -
Last Ten Fiscal Years
Principal Property Taxpayers - Year 2016 and Year 2007
Property Tax Levies and Collections - Last Ten Fiscal Years
Ratios of Outstanding Debt by Type - Last Ten Fiscal Years
Ratio of Net General Bonded Debt Outstanding to Taxable Value
and Net Bonded Debt Per Capita - Last Ten Fiscal Years
Computation of Legal Debt Margin
Direct and Overlapping Governmental Activities Debt
Pledged Revenue Coverage - Water and Sewer Revenue Bonds -
Last Ten Fiscal Years
Page
Number
172
174
178
180
182
183
184
186
187
188
190
191
192
194
SCHEDULE 15
SCHEDULE 16
SCHEDULE 17
SCHEDULE 18
SCHEDULE 19
SCHEDULE 20
SCHEDULE 21
SCHEDULE 22
SCHEDULE 23
SCHEDULE 24
SCHEDULE 25
Indian River County, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS- CONTINUED
Fiscal Year Ended September 30, 2016
Demographic and Economic Statistics - Last Ten Years
Principal Employers - Year 2016 and Year 2007
Building Permits - Last Ten Fiscal Years
Operating Indicators by Function/Program - Last Ten Fiscal Years
Full Time Equivalent County Government Employees
by Function/Program - Last Ten Fiscal. Years
Capital Asset Statistics by Function/Program - Last Ten. Fiscal. Years
Department of Utility Services - Historical Rate Structure
Last Ten Fiscal Years
Water and Wastewater Customers - Last Ten Fiscal Years
Top 10 High Volume Customers of Utility Services
Capacity Charges - Utilities Department - Last Ten Fiscal Years
Pledged Revenues for Spring Training Facility Revenue Bonds, Series 2001 -
Last Ten Fiscal Years
Page
Number
196
197
198
200
204
206
210
211
212
213
214
Indian River County, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS- CONTINUED
Fiscal Year Ended September 30, 2016
COMPLIANCE SECTION
Page
Number
Independent Auditors' 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 215
County Management Letter 217
Independent Accountants' Report 219
Federal and State Grants:
Independent Auditors' Report on the Schedule of Expenditures of
Federal Awards and State Projects Required by Uniform Guidance
and Chapter 10.550, Rules of the Auditor General 220
Schedule of Expenditures of Federal Awards and State Projects 221
Notes to Schedule of Expenditures of Federal Awards and State Projects 226
Independent Auditors' Report on Compliance for Each Major Federal
Program and Major State Project and on Internal Control over
Compliance Required by the Uniform Guidance and Chapter 10.550,
Rules of the Auditor General 227
Schedule of Findings and Questioned Costs 229
Summary Schedule of Prior Audit Findings 231
Impact Fee Affidavit 232
Indian River County, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS- CONTINUED
Fiscal Year Ended September 30, 2016
AUDITOR GENERAL REPORTS SECTION
Page
Number
BOARD OF COUNTY COMMISSIONERS
Independent Auditors' Report 234
Fund Financial Statements 236
Independent Auditors' 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 310
Management Letter 312
Independent Accountants' Report 314
CLERK OF THE CIRCUIT COURT AND COMPTROLLER
Independent Auditors' Report 316
Fund Financial Statements 31.8
Independent Auditors' 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 330
Management Letter 332
Independent Accountants' Report 334
PROPERTY APPRAISER
Independent Auditors' Report 336
Fund Financial Statements 338
Independent Auditors' 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 346
Management Letter 348
Independent Accountants' Report 350
Indian River County, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS-CONTTNUED
Fiscal Year Ended September 30, 2016
SHERIFF
Page
Number
Independent Auditors' Report 352
Fund Financial Statements 354
Independent Auditors' 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 365
Management Letter 367
SUPERVISOR OF ELECTIONS
Independent Auditors' Report 370
Fund Financial Statements 372
Independent Auditors' 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 382
Management Letter 384
TAX COLLECTOR
Independent Auditors' Report 388
Fund Financial Statements 390
Independent Auditors' 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 402
Management Letter 404
Independent Accountants' Report 406
JEFFREY R. SMITH, CPA, CGFO, CGMA
Clerk of Circuit Court & Comptroller
1801 27th Street
Vero Beach, FL 32960
Telephone: (772) 226-1945
March 8, 2017
To the Citizens of Indian River County:
The Comprehensive Annual Financial Report of Indian River County, Florida for the fiscal year ended
September 30, 2016, is respectfully submitted. State law requires that every general-purpose government
publish a complete set of audited financial statements within nine 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 and Comptroller. 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.
The County has established a comprehensive internal control framework designed to ensure that the assets
of the County are protected from loss, theft or misuse and to certify that the financial records and data
used for preparing the financial statements are in conformity with generally accepted accounting
principles (GAAP) as applicable to governmental entities. The internal control system is designed to
provide reasonable, rather than absolute, assurance that these objectives are met. The idea of reasonable
assurance recognizes two aspects: 1) the cost of internal control should not exceed the anticipated
benefits; and 2) the valuation of the costs and benefits require estimates and judgment by management.
All internal control evaluations take place within this framework. We believe the County's internal
controls adequately safeguard its assets and provide reasonable assurance of properly recorded financial
transactions.
Section 218.39, Florida Statutes, requires an annual audit of local governments. The unmodified opinion.
of the auditors (Rehmann Robson LLC, Certified Public Accountants) on the County's financial
statements for the year ended September 30, 2016 has been included in this report. The independent
auditors' report is located at the front of the financial 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 Federal Single Audit Act Amendments of 1996 and Title 2 U.S. Code of
Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards (Uniform Guidance).
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 Indian River County
Indian River County, established on June 29, 1925 by an act of the Florida Legislature, is located 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. Indian River County is a non -charter county
established under the Constitution and the Laws of the State of Florida. It is governed by a five member
Board of County Commissioners (Board) elected at large from the five districts within the County. A
County Administrator is appointed by the Board and is responsible for implementing the policies set forth
by the Board. The Administrator is charged with the fiscal control of the resources of the County as well.
In addition to the Board, there are five elected Constitutional Officers serving specific governmental
functions: Clerk of the Circuit Court and Comptroller, Property Appraiser, Sheriff, Supervisor of
Elections and Tax Collector. Although the funding for all Constitutional Officers is part of the County's
General Fund, the Board does not have direct responsibility for their operations. Each office is run
separately within each of its respective legal guidelines.
Indian River County provides a full range of services including, but not limited to: construction and
maintenance of roadways, sidewalks and other infrastructure, fire rescue/emergency services, law
enforcement, library services, traffic operations and control, parks and recreational services, human
services, building inspections, licenses and permits, water/sewer utility services, and refuse collection and
disposal.
The Clerk of the Circuit Court and Comptroller (Clerk), Sheriff, and Supervisor of Elections submit
proposed operating budgets to the Board prior to May 1. The Florida Department of Revenue receives
budgets from the Property Appraiser prior to June 1 and from the Tax Collector prior to August 1. Once
these budgets are approved, they are forwarded to the Board. The court -related function of the Clerk
submits a budget to the Florida Clerks of Court Operations Corporation (CCOC) prior to June 1. These
operating budgets include proposed expenditures and the sources to finance them as set forth in Section.
28.36, Florida Statutes.
Constitutional Officers, all departments controlled by the Board of County Commissioners, 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 the budgets of the County
departments, state agencies and nonprofit organizations, and makes his budget recommendations to the
Board of County Commissioners on or before July 15 of each year. The Board then holds public
workshops to review the tentative budget by fund on a departmental level.
During September, public hearings are held pursuant to Section 200.065, 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 (at the fund level) the budgets for all governmental fund types. The
budgets legally adopted by the Board set forth the anticipated revenues by source and the appropriations
by function. Budgets for Enterprise and Internal Service funds are adopted on a basis consistent with
generally accepted accounting principles. Management is authorized to transfer budgeted amounts
between objects and departments in any fund as long as the total appropriations of a fund are not
exceeded. Board approval to amend the budget is required when unanticipated revenues are received that
management wishes to have appropriated, thereby increasing the total appropriations of a fund.
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Appropriations for the County lapse at the close of the fiscal year. Unexpended ongoing project costs
may be appropriated in the new fiscal year through a budget amendment.
This Comprehensive Annual Financial Report (CAFR) includes the funds of the primary government (the
Board of County Commissioners, the Clerk of the Circuit Court and Comptroller, the Property Appraiser,
the Sheriff, the Supervisor of Elections and the Tax Collector), and the blended component units
consisting of the Emergency Services District and the Solid Waste Disposal District.
These component units were included because generally accepted accounting principles require that
organizations which are fiscally dependent on the County and that financially benefit from the
relationship with the County 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 Medical Center.
Local Economy
Indian River County's estimated population of 146,410 was a 2.15% increase over the previous year.
While the population of the County has been steadily increasing, so has the median age of residents living
here. Nationally, average ages have risen due to the increasing age of the baby boomer generation as well
as the increase in life expectancy for all Americans. In addition, Florida continues to be a popular
destination for retirees.
Historically, Indian River County's economy was made up of agriculture (citrus and cattle) and tourism.
Those industries have now been complemented with an increase in health care and information
technology firms, light manufacturing, wholesale and retail trade and service sector jobs. The top three
major employers in Indian River County, providing 9% of total employed persons, are the School District,
Indian River County government and Indian River Medical Center. The unemployment rate decreased
from 7.2% in 2015 to 6.7% in 2016.
Piper Aircraft, Inc., whose headquarters for aircraft research, development and manufacturing operations
are located in Vero Beach, is the largest manufacturing employer in the area. CVS Pharmacy operates a
distribution center which provides the distribution of products to all CVS locations in the southern half of
Florida. The Atlantic beaches and the Indian River, along with the comfortable climate, provide the basis
for a year-round tourism industry. Residents can enjoy these resources at any of the County parks, the
Sebastian Inlet State Park or the Pelican Island National Wildlife Refuge.
Indian River County continues to experience signs of improvement in the economy. Total property tax
values increased from $13.4 billion in 2015 to $14.3 billion in 2016. Construction activity saw a
significant increase with 24% more building permits issued for new construction in 2016 over 2015.
Please see Statistical Schedules 6 and 17 for more information.
Although Indian River County is a major producer of citrus with approximately 34,151 acres dedicated to
citrus production, production has decreased by 15% from 6.9 million boxes in 2015 to 6.0 million in
2016.
Lonj' Term Financial Planninji and Major Initiatives
Chapter 163 Florida Statutes and Florida Administrative Code Rule 9J-5 requires each local government
to have a Comprehensive Land Use Plan. An important part of this plan is the Capital Improvements Plan
(CIP) which evaluates the need for public facilities in support of the Future Land Use Element, to estimate
iii
the costs of improvements for which local government has fiscal responsibility, to analyze the fiscal
capacity of the local government to finance and construct improvements, and to adopt financial policies to
guide the funding and construction of the improvements. The CIP is updated annually and encompasses a
period of five years. Listed below are some major projects included in the current CIP along with the
source of funding and estimated costs:
• Go -Line Bus Transfer Hub - The $1.8 million bus transfer hub facility currently under construction
consists of a 1,732 square foot structure with bathrooms and open air waiting areas. Additionally
there will be 3,410 square feet of pre -manufactured aluminum structures providing covered walkways
and shelter for bus riders and 1.6 acres of site improvements that include parking, lighting,
landscaping, stormwater treatment and space to accommodate eight bus routes. The site plan also
allows for building expansion if needed in the future. Federal and state grants will provide the
funding.
• Shooting Range Skeet & Trap Improvements - The skeet and trap facility improvements at the Indian
River County Shooting Range consist of three new combination national competition skeet and trap
fields, including hi/low trap houses, lighting for the skeet and trap ranges to promote night time usage,
storage building, parking area, and associated landscaping. Additionally, a fifteen station sporting
clays course shall be constructed as part of the project. The $1.3 million funding will be from impact
fees and optional one cent sales tax.
• 87th Street and 91st Avenue Sidewalk Improvements - The project consists of a six foot wide concrete
sidewalk along the north right of way line of 87th Street from 101st Avenue to CR510 and along the
east right of way line of 91st Avenue from 79th Street to 87th Street. Drainage improvements, swale
grading, pavement markings and sodding of certain areas in Vero Lake Estates are also included.
Funding in the amount of $1.2 million will be from grant funds and optional one cent sales tax.
• Fire Rescue Station #14 - The construction of Fire Rescue Station #14 is expected to be completed in
fiscal year 2017 at a cost of approximately $2.5 million. The 26th Street and 66th Avenue site is
necessary to accommodate new growth and development in the County. Funding is from impact fees
and optional one cent sales tax.
• 800 Mhz P25 Radio System Migration. Project - To meet current operational standards, the 800 Mhz
radio system will migrate to the Federal Communications Commission recommended Project 25 (P25)
which is the standard for the design and manufacture of interoperable digital two way communications
for public safety organizations. The $5.9 million phased upgrade of the system over a five year period
will be funded from optional one cent sales tax.
• Old Dixie Highway Resurfacing from 71st Avenue to County Road 510 -The $2.5 million
improvements to Old Dixie Highway consist of pavement reconstruction (full depth reclamation) a
distance of two miles from 71st Street to County Road 510. Four foot wide paved shoulders, asphalt
surface and structural courses, drainage improvements, utility adjustments, signage and pavement
markings will be completed. This project is funded by an F.D.O.T. Small County Outreach program
(SCOP) grant and gas taxes.
• 1st Street SW and 43rd Avenue Intersection Improvements - Improvements to this intersection will
consist of the reconstruction of a portion of 1st Street SW with the addition of left turn lanes in the
east and west bound direction. Within the intersection, 43rd Avenue will be milled and resurfaced.
Concrete pipe will be installed in the Indian River Farms Water Control. District Canal. The work will
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also include a traffic signal, four foot wide paved shoulders, curbing and a five foot wide sidewalk.
Costs are estimated to be $2.2 million and will be funded by optional one cent sales tax.
Major projects that were completed during fiscal year 2016 are listed below:
• Intergenerational Recreation Facility at South County Regional Park - The grand opening and ribbon
cutting ceremony of the $12 million state of the art recreational facility at the South County Regional
Park was held in August 2016.
• 45th Street Beautification Project - The milling and resurfacing of 45th Street from 43rd Avenue to
east of 24th Avenue, along with sidewalk enhancements and extensive landscape improvements, were
completed at a cost of $1.4 million.
• 20th Avenue and 16th Street Intersection Improvements - The $1.1 million re -alignment of 20th
Avenue at 16th Street as well as the addition of left turn lanes to 20th Avenue were constructed.
• Fire Station #1 Renovations - Major renovations were completed to Fire Station #1 on Old Dixie
Highway at a cost of $1.4 million.
Relevant Financial Policies
In accordance with Section 218.415, Florida Statutes, the County adopted an investment policy, which
guides the investment of County surplus funds. This policy establishes investment objectives, maturity
and liquidity requirements, portfolio composition, risk and diversification requirements, and authorized
investments. The primary objectives of investment activities are to preserve capital and maintain
sufficient liquidity to meet anticipated cash flow needs. The secondary objective is to obtain competitive
returns on the investment of County surplus funds.
On September 23, 2008, the County established the OPEB (Other PostEmployment Benefits) Trust. An
OPEB investment policy was approved by the Board of County Commissioners in February 2009. The
objective was to establish an advisory committee and to provide short-term and long-term investment
guidelines. This policy also outlines the same criteria as noted in the County's investment policy, as well
as including performance measures. The County's policy is to fund the annual OPEB obligation monthly.
In addition, a $9 million contribution was made in September 2016.to lower the actuarial unfunded
liability.
The County's goal is to maintain an overall fund balance equal to 30% of the annual budget in all of its
taxing funds, which provides a three month cushion for operating expenses. The three month reserve is
necessary due to the timing of property tax levies in the State of Florida. Although the fiscal year begins
in October, property tax monies are not typically received until mid to late December, which would
require the County to operate in a deficit position for the first two months of the fiscal year without this
reserve. Reserve funds are needed in order to allow the County to respond to events without facing
serious financial burdens. County policy is to maintain fund balance levels and prohibit the use of fund
balance to fund recurring expenditures. Information on the County's fund balance policy can be found in
County Note 16.
During fiscal year 2016, the County implemented Government Accounting Standards Board (GASB)
Statement No. 72, Fair Value Measurement and Application. The Statement addresses accounting and
financial reporting issues related to fair value measurements. It provides guidance for determining a fair
v
value measurement for financial reporting purposes and for applying fair value to certain investments and
disclosures related to all fair value measurements.
Awards and Acknowledgements
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, 2015. This was
the 33rd 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.
Indian River County also received the GFOA's Award for Outstanding Achievement in Popular Annual
Financial Reporting for the fiscal year ended September 30, 2015. This was the first Popular Annual
Financial Report (PAFR) produced for the residents of Indian River County. This program was
developed by the GFOA to encourage and assist governments to extract information from the CAFR to
produce a high-quality report specifically designed to be readily accessible and easily understandable to
the general public and other interested parties without a background in public finance.
In addition, Indian River County also received the GFOA's Distinguished Budget Presentation Award for
its annual budget document for the 2015-2016 fiscal year. This was the 25th 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.
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 support in planning and conducting the
financial operations of the County in a responsible and progressive manner. Finally, thanks to the citizens
for the trust you continue to place in your County and those who work to serve you.
Respectfully submitted,
Jeffrey R. Smith, CPA, CGFO, CGMA
Clerk of the Circuit Court and Comptroller
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Indian River County Board of County Commissioners Departmental Organization
Clerk of Circuit
Court
Sheriff
Residents of Indian River County
Board of
County
Commissioners
Finance
Department
County Administrator
County Attorney
Tax
Collector
Assistant to Admin.
Assistant
County
— Administrator/
General Services
Commission
Office
Geographic
Info Systems
Golf Course
Public
Works
Utilities
Services
Community
Development
Office of
Mgmt. & Budget
Parks and
Recreation
Engineering
Wastewater
Treatment
Emergency
Management
Planning
Division
Risk
Management
Veterans
Service
Road &
Bridge
Water
Production
Fire/Rescue
Envir. Planning &
Code Enforcement
Computer
Services
Shooting Range
General &
Engineering
Radiological
Emergency
Preparedness
Metropolitan
Planning Org.
Purchasing
Libraries
Fleet
Management
Customer
Service
Emergency
Base Grant
IRCLHAP /
SHIP Program
Mailroom
Switchboard
Secondary Road
Const.
Wastewater
Collection
Animal
Control
Building
Division
Stormwater
Coastal
Engineering
Water
Distribution
Osprey Marsh
911
Coordinator
Ag
Extension
Facilities
Management
Solid Waste
Disposal District
Telecomm.
vii
Soil & Water
Conservation
GD
Government Finance Officers Association
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, 2015
Executive Director/CEO
viii
Fkehmann
INDEPENDENT AUDITORS' REPORT
March 7, 2017
The Honorable Board of County Commissioners
and Constitutional Officers
Indian River County, Florida
Report on the Financial Statements
Rehmann Robson
5070 North Highway A1A
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
We have audited the accompanying financial statements of the governmental activities, the business -
type activities, each major fund, and the aggregate remaining fund information of Indian River
County, Florida (the "County"), as of and for the year ended September 30, 2016, and the related
notes to the financial statements, which collectively comprise the County's basic financial statements
as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud
or error.
Independent Auditors' Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. 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. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free from
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditors' judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the County's
preparation and fair presentation of the financial statements in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the County's internal control. Accordingly, we express no such opinion. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation
of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinions.
Rehmann is an independent member of Nexia International.
CPAs & Consultants Wealth Advisors Corporate Ihvestigators
1
EX A
INTER NATIONAL
The Honorable Board of County Commissioners
and Constitutional Officers
March 7, 2017
Page 2
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business -type activities, each major
fund, and the aggregate remaining fund information of Indian River County, Florida as of
September 30, 2016, and the respective changes in financial position and, where applicable, cash flows
thereof, and the respective budgetary comparison for the general fund and each major special revenue
fund, for the year then ended in accordance with accounting principles generally accepted in the
United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management's discussion and analysis and the schedules for the pension and other post employment
benefit plans, as listed in the table of contents, be presented to supplement the basic financial
statements. Such information, although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board, who considers it to be an essential part of financial
reporting for placing the basic financial statements in an appropriate operational, economic, or
historical context. We have applied certain limited procedures to the required supplementary
information in accordance with auditing standards generally accepted in the United States of America,
which consisted of inquiries of management about the methods of preparing the information and
comparing the information for consistency with management's responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial
statements. We do not express an opinion or provide any assurance on the information because the
limited procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the County's basic financial statements. The combining and individual fund
financial statements and schedules, and introductory and statistical sections are presented for
purposes of additional analysis and are not a required part of the basic financial statements.
The combining and individual fund financial statements and schedules are the responsibility of
management and were derived from and relate directly to the underlying accounting and other records
used to prepare the basic financial statements. Such information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the basic financial statements or to the basic financial statements themselves,
and other additional procedures in accordance with auditing standards generally accepted in the
United States of America. In our opinion, the information is fairly stated, in alt material respects, in
relation to the basic financial statements as a whole.
The introductory section and statistical tables have not been subjected to the auditing procedures
applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or
provide any assurance on them.
2
The Honorable Board of County Commissioners
and Constitutional Officers
March 7, 2017
Page 3
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March 7,
2017, on our consideration of Indian River County, Florida's internal control over financial reporting
and on our tests of its compliance with certain provisions of taws, regulations, contracts, and grant
agreements and other matters. The purpose of that 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 internal control over financial reporting or on compliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards in considering
the County's internal control over financial reporting and compliance.
3
4
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2016
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, 2016. 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 -vi of this report.
FINANCIAL HIGHLIGHTS
• The County's overall financial position improved over 2015..
• The assets and deferred outflows of resources of the County exceeded its liabilities and deferred
inflows by S978.2 million (net position). Of this amount, $106.3 million (unrestricted net
position) may be used to meet the government's ongoing obligations to citizens and creditors.
• The government's total net position increased by $18.1 million or 1.9%. Governmental activities
accounted for $15.5 million of this increase and business -type activities accounted for the
remaining $2.6 million. Further information can be found on page 10.
• Governmental activities expenses reflected a 9.5% increase ($151.2 million in 2015 to $165.6
million in 2016) and business -type activities expenses reflected a 3.7% increase ($51.5 million in
2015 to $53.4 million in 2016). Further information can be found on page 10.
• Unassigned fund balance for the general fund was $45.9 million, or a 3.8% decrease from the
prior year general fund unassigned balance of $47.7 million.
OVERVIEW OF 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 Position presents information on all of the County's assets, liabilities, and deferred
inflows/outflows of resources, with the difference reported as net position. Over time, increases or
decreases in net position may serve as a useful indicator of whether the financial position of the County
is improving or deteriorating.
5
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2016
The Statement of Activities presents information showing how the government's net position changed
during the most recent fiscal year. All changes in net position 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 grant revenue and earned but unused vacation leave).
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, culture and recreation, and court related functions. The major business -type activities include a
water and sewer utility, a solid waste disposal district, a golf course, and a building department.
The government -wide financial statements include not only the Board of County Commissioners (BCC),
but also the Clerk of the Circuit Court and Comptroller, Property Appraiser, Sheriff, Supervisor of
Elections and Tax Collector. The government -wide financial statements can be found on pages 21 and
23 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
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. 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
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.
6
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2016
The County maintains 35 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, four special revenue funds, and one capital project
fund. All are considered to be major funds. Data from the other 29 governmental funds are combined
into a single, aggregated presentation.
Individual fund data for each of these nonmajor governmental funds is provided in the form of
combining statements located behind the notes to the financial statements. The combining statements for
the nonmajor governmental funds can be found on pages 1 1 1-161 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 24-35 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, 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 fleet management, self-insurance, and information technology.
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 fund financial statements 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, golf course, and building
department, 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 on pages 163-167 of this report. The basic proprietary fund
financial statements can be found on pages 37-43 of this report.
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties
outside the government. The Indian River County OPEB Trust holds the assets of the County's other
postemployment benefits. 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 statements can be found on pages 44-45 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 47-106 of this report.
7
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2016
Other information
In addition to the basic financial statements and accompanying notes, this report also contains required
supplementary information concerning Indian River County's progress in funding its obligations to
provide other postemployment benefits to its employees, as well as information regarding the County's
proportionate share of its pension liability. Required supplementary information can be found on pages
107-109 of this report.
Government -wide financial analysis
As noted earlier, net position may serve over time as a useful indicator of a government's financial
position. In the case of the County, assets and deferred outflows of resources exceeded liabilities and
deferred inflows by $978.2 million at the close of the fiscal year.
Indian River County Net Position (In Millions)
Current and other assets
Capital assets
Total assets
Deferred outflows of resources
Other liabilities
Long-term liabilities
Total liabilities
Deferred inflows of resources
Governmental Business -type
Activities Activities
Total
2016 2015 2016 2015 2016 2015
236.2 $ 228.4 $ 125.6 $ 113.9 $ 361.8 $ 342.3
559.3 550.4 230.5 240.0 789.8 790.4
795.5 778.8 356.1 353.9 1,151.6 1,132.7
43.9 12.7 3.9 2.1 47.8 14.8
114.7
48.5
163.2
67.9
53.0
120.9
4.8 14.7
13.8
39.1
52.9
9.7 128.5 77.6
41.2 87.6 94.2
50.9 216.1 171.8
0.3 0.9 5.1 15.6
Net position:
Net investment in capital assets 533.3 520.2 206.5 213.1 739.8 733.3
Restricted 132.1 128.6 - 132.1 128.6
Unrestricted 6.0 7.1 100.3 91.1 106.3 98.2
Total net position $ 671.4 $ 655.9 $ 306.8 $ 304.2 $ 978.2 $ 960.1
Governmental Activities
In governmental activities, the increase in restricted net position was mainly due to reduced expenses
from the one cent sales proceeds for capital projects budgeted in future fiscal years. The increase in net
investment in capital assets was a result of completed construction projects and decreased outstanding
debt.
8
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2016
Business -type Activities
In business -type activities, the decrease in invested in capital assets resulted from a decreasing book
value of existing assets as well as decreased outstanding debt. This decrease resulted in an overall
increase in unrestricted net position.
Indian River County Total Net Position In illions)
September 30, 2015 and 2016
net investment in capital assets
restricted
unres
0
200
400
600
800
2015
2016
By far, the largest portion of the County's net position (76% or $739.8 million) reflects its investment in
capital assets (e.g., land, buildings, infrastructure, intangibles, machinery, and equipment), less any
related outstanding debt used to acquire those assets. 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.
A portion of the County's net position (14% or $132.1 million) represents resources that are subject to
external restrictions on how they may be used. The remaining balance of the unrestricted net position
($106.3 million) may be used to meet the government's ongoing obligations to citizens and creditors.
9
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2016
Indian River County Changes in Net Position (In Millions)
Revenues:
Program revenues:
Charges for services
Operating grants/contributions
Capital grants/contributions
General revenues:
Property taxes
Sales taxes
Franchise fees
Other
Total revenues
Governmental Business -type
Activities Activities
Total
2016 2015 2016 2015 2016 2015
24.9 $ 22.9 $ 51.0 $ 47.7 $ 75.9 $ 70.6
24.6 24.9 - 24.6 24.9
6.0 11.7 5.0 8.6 11.0 20.3
84.7 76.6 - - 84.7 76.6
24.4 23.5 - - 24.4 23.5
9.3 9.2 - - 9.3 9.2
6.4 2.8 0.8 0.7 7.2 3.5
180.3 171.6 56.8 57.0 237.1 228.6
Expenses:
General government 27.5 24.7 - - 27.5 24.7
Public safety 77.6 66.4 - - 77.6 66.4
Physical environment 1.4 1.6 - - 1.4 1.6
Transportation 28.2 26.0 - - 28.2 26.0
Economic environment 0.4 0.4 - - 0.4 0.4
Human services 7.8 7.4 - - 7.8 7.4
Culture/recreation 14.7 17.0 - - 14.7 17.0
Court related 7.1 6.7 - - 7.1 6.7
Interest and fiscal charges 0.9 1.0 - - 0.9 1.0
Water and sewer - - 35.4 35.2 35.4 35.2
Solid waste - 12.7 11.7 12.7 11.7
Golf course - - 2.6 2.5 2.6 2.5
Building - - 2.7 2.1 2.7 2.1
Total expenses 165.6 151.2 53.4 51.5 219.0 202.7
Increase (decrease) in net position before transfers 14.7 20.4 3.4 5.5 18.1 25.9
Transfers
Increase (decrease) in net position
0.8 (3.1) (0.8) 3.1
15.5 17.3
2.6 8.6
18.1 25.9
Net position - October 1, 2015 655.9 703.8 304.2 300.1 960.1 1,003.9
Restatement to implement GASB 68 - (65.2) - (4.5) - (69.7)
Net position - September 30, 2016 $ 671.4 $ 655.9 $ 306.8 $ 304.2 $ 978.2 $ 960.1
10
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2016
90
80
70
60
50
40
30
20
10
0
Revenues By Source (In Millions)
Governmental Activities
Fiscal Years 2015 and 2016
FY 2015
■ FY 2016
Charges for Operating Capital Property Sales and use Franchise
services grants/contribgrants/contrib taxes taxes Fees
Governmental Activities
• Overall program revenues decreased $4.0 million.
Other
1) Charges for services increased $2.0 million due to increased ambulance service billing
collections as well as an increase in impact fee collections.
2) Capital grants and contributions decreased $5.7 million due to the prior year reimbursement
from Department of Environmental Protection for a beach restoration project.
• Overall general revenues increased by $12.7 million mainly due to increased property tax values
and tax rates (increase of $8.1 million or 10.5%) and an increase in other revenue ($3.6 million)
mainly due to receipt of a legal settlement related to the County administration building roofs
($1.2 million) and reimbursement from the State for a prior year joint road project ($1.2 million).
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2016
90
80
70
60
50
40
30
20
10
0
Expenses By Function (In Millions)
Governmental Activities
Fiscal Years 2015 and 2016
FY 2015
FY 2016
• The governmental activities expenses were $14.4 million higher in 2016 than in 2015. Major
increases included: $11.2 million in public safety expenses mainly due to the purchase of new
emergency services vehicles ($1.9 million), allocation of pension expense ($3.7 million) and
increase in salaries and benefits ($4.5 million).
• Governmental activities expenses were charged $4.8 million for their related share of overall
pension expense as calculated by the Florida Retirement System. The increase in expense was
allocated to the following functions: general government $0.5 million, public safety $3.7 million,
physical environment $0.01 million, transportation $0.2 million, economic environment $0.04
million, human services $0.01 million, culture and recreation $0.2 million, and court related $0.2
million.
12
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2016
Business -type Activities
Business -type activities net position increased by $2.6 million. Key elements of this increase are as
follows:
• Overall program revenues decreased $0.3 million
1) Charges for services increased by $3.3 million or 7%. A gradual improvement in the local
economy has attributed to the following increases over 2015 revenues: water and sewer
charges increased by $1.0 million or 3% and the building revenues increased by $0.4 million
or 15%. Solid waste revenues increased $1.9 million or 17% mainly due to an increase in
landfill assessments.
2) Capital grants and contributions were $3.6 million lower in 2016 than in 2015, an overall
decrease of 42%. This was mainly due to prior year grant reimbursements for the Osprey
Marsh project and previously deobligated FEMA grant funds for the Rockridge Sewer
Project.
• Overall expenses were $1.9 million or 4% higher in 2016.than in 2015. The water and sewer
utilities expenses were $0.2 million or less than 1% higher in 2016 than in 2015. The solid waste
expenses were $1.0 million or 9% higher in 2016 than in 2015 due to increased landfill closure
and contractual services costs. The golf course had $0.1 million or 4% higher expenses in 2016
than in 2015 due to increased salaries and benefits costs. The building department had $0.6
million or 28% higher expenses in 2016 than in 2015 due to staffing increases.
• Business -type activities expenses were charged $0.3 million for their related share of overall
pension expense as calculated by the Florida Retirement System. The increase in expense was
allocated to the following activities: water and sewer $0.2 million, solid waste $0.02 million, golf
course $0.02 million, and building $0.06 million.
FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS
As noted earlier, the County uses fund accounting to ensure and demonstrate compliance with finance
related legal requirements.
Governmental funds
Unassigned fund balance may serve as a useful measure of the County's net resources available for
spending at the end of the fiscal year. Approximately 25% of this total amount ($45.9 million)
constitutes unassigned fund balance, which is available for spending at the County's discretion.
13
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2016
The remainder of fund balance is presented in classifications that comprise a hierarchy based primarily
on the extent to which the County is bound to honor constraints on the specific purposes for which
amounts in those funds can be spent. The County had fund balance in 1) a nonspendable category for
inventories, prepaid items, and advances to other funds ($0.5 million), 2) a restricted category for
resources that are either restricted externally by creditors, grantors, contributors, or laws or regulations
of other governments or imposed by law through constitutional provisions or enabling legislation
($128.3 million), 3) a committed category for constraints imposed by approval of ordinances and
contracts by Board of County Commissioners ($2.6 million), and 4) an assigned category for constraints
by the County's intent to use for specific purposes ($7.1 million).
The two largest restricted amounts are in the Impact Fees Fund with a $14.1 million restricted fund
balance and the Optional Sales Tax Fund with a $71.2 million restricted fund balance. Fifty-five percent
of the Impact Fees Fund ($7.8 million) and twenty-four percent ($16.7 million) of the Optional Sales
Tax Fund is slated for major road expansions throughout the County.
The County's governmental funds reported a combined fund balance of $184.4 million, which is an
increase of $5.3 million over the prior year of $179.1 million. Contributing factors to the $5.3 million
increase in fund balance are:
• Fund balance in the General Fund decreased by $1.8 million. This was due to an increase of $3.1
million in transfers out to fund an additional contribution to the OPEB Trust.
• In the Secondary Roads Construction Fund, fund balance decreased $1.9 million. This was
largely due to the $1.5 million increase in road resurfacing projects.
• Fund balance in the Emergency Services District Fund decreased by $1.0 million mainly due to a
$0.6 million increase in transfers out to fund an additional contribution to the OPEB Trust.
• Fund balance in the Optional Sales Tax Fund increased by $7.1 million mainly due to a $0.7
million increase in sales tax revenues, a $1.6 million increase in grant reimbursements, and a
$2.4 million increase in miscellaneous revenues due to receipt of a legal settlement related to the
County administration building roofs ($1.2 million) and reimbursement from the State for a prior
year joint road project ($1.2 million).
Proprietary funds
Unrestricted net position at the end of the year amounted to $15.1 million in the Solid Waste Disposal
District (SWDD) Fund, ($0.8) million in the Golf Course Fund, $5.8 million in the County Building
Fund, and $80.2 million in the County Utilities Fund. Other factors concerning the finances of these
funds have already been addressed in the discussion of the County's business -type activities.
14
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2016
GENERAL FUND BUDGETARY HIGHLIGHTS
During the year there was an S8.3 million increase in operating appropriations between the original and
final amended budget. The main components of the increase are as follows:
• $5.2 million grants appropriations and prior year rollovers for the Senior Resource Association
(SRA) to provide County -wide public transportation
• $0.3 million for All Aboard Florida, FMPA and other legal and professional services
• $0.4 million in building and equipment maintenance including replacement air conditioning and
chiller units for County buildings
• $0.3 million cost of living increases
Actual expenditures were $3.8 million lower than anticipated for the following reasons:
• $1.3 million in SRA grant costs not yet expended
• $0.4 million lower than expected Sheriff expenses
• $0.3 million in unspent salary and benefits expenditures
• $0.5 million in unspent legal, professional and other contractual services
The General Fund Statement of Revenues, Expenditures, and Changes in Fund Balances — Budget and
Actual is shown on page 31.
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, 2016, amounts to $789.7 million (net of accumulated depreciation). This investment in
capital assets includes land, right-of-way, buildings and improvements, intangibles, equipment,
infrastructure and construction in progress. The overall decrease in the County's investment in capital
assets for the current fiscal year was less than 1%.
15
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2016
Indian River County Capital Assets
(Net of Depreciation, In Millions)
Governmental Business -type
Activities Activities Total
2016 2015 2016 2015 2016 2015
Land $ 133.8 $ 133.7 $ 27.5 $ 27.5 $ 161.3 $ 161.2
Right-of-way 57.6 57.4 - - 57.6 57.4
Buildings and improvements 158.1 147.8 195.3 206.0 353.4 353.8
Equipment 16.5 13.8 3.3 2.6 19.8 16.4
Intangibles 2.7 2.4 2.1 2.0 4.8 4.4
Infrastructure 166.8 145.0 - - 166.8 145.0
Construction in progress 23.7 50.3 2.3 1.9 26.0 52.2
Total $ 559.2 $ 550.4 $ 230.5 $ 240.0 $ 789.7 $ 790.4
Governmental activities had the following major increases during the fiscal year:
• An increase in buildings and improvements and infrastructure, along with decreases in
construction in progress, primarily due to the following completed projects: 66th Avenue road
expansion project from SR60 to 49th Street ($22.8 million) and the South County
Intergenerational Facility ($12.2 million).
Business -type activities only major decrease occurred in buildings and improvements as a result of
increasing depreciation on existing assets.
1%
3%
Capital Assets, Net
Total Primary Government
September 30, 2016
Eand
• Right of Way
Buildings and Improvements
• Equipment
• Intangibles
Infrastructure
}ur Construction In Progress
Additional information on the County's capital assets can be found in Note 5 on pages 67-69 of this
report.
1.6
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2016
Debt Administration — Long-term debt
At the end of the current fiscal year, the County had total debt outstanding of S51.6 million. Of this
amount, $19.7 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)
Governmental Business -type
Activities Activities
General Obligation Debt: 2016 2015 2016 2015
Limited General. Oblig. Bonds, Series 2006 $ - $ 3.5 $ - $ - $ - $ 3.5
Limited General Oblig. Note, Series 2015 19.7 20.1 - - 19.7 20.1
Revenue Bonds/Notes:
Spring Training Facility, Series 2001 6.7 7.2 6.7 7.2
Water and Sewer Rev Note, Series 2015 - - 6.2 7.2 6.2 7.2
Water and Sewer Ref. Rev., Series 2009 19.0 21.1 19.0 21.1
Total $ 26.4 $ 30.8 $ 25.2 $ 28.3 $ 51.6 $ 59.1
Total
2016 2015
Additional information on the County's long-term debt can be found in. Note 10 on pages 74-81 of this
report.
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES
In recent years, Indian River County has survived direct landfall of multiple hurricanes and, most
recently, the worst economic turmoil experienced since the Great Depression. The key to surviving
these occurrences was the commitment of County employees, steady management by the executive team
and strong leadership provided by the County Commissioners, as significant budget cuts were made to
adjust for a 31% tax roll drop while avoiding millage rate increases. For FY 2016/2017, the tax roll is
increasing 6.2%.
In spite of turbulence in both the national and State economies, Indian. River County is now on the cusp
of a full economic recovery as evidenced by strong building permit and impact fee revenue collections,
strong tourism activity, and moderate population growth drawn by our friendly small-town atmosphere,
beautiful beaches, cultural amenities, and rich environmental surroundings making us an ideal tourist
destination.
However, a consequence of the population growth is pressure on County government to continue to
deliver government services at an affordable price. The FY 2016/2017 budget is focused on continuing
to deliver high-quality services, with an emphasis on technology to maintain our low cost service model.
The total proposed budget for FY 2016/2017 is $308,029,307, a decrease of $33,718,474 or 9.9% from
FY 2015/2016 mid -year amended budget. This is still 34.8% below the approved FY 2006/2007 amount
of $472,420,328.
17
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2016
The County -wide millage rate is decreasing slightly. This is due to a 5.19% decrease in the General
Land Acquisition Bond millage. The General and Municipal Service Taxing Unit Funds millage rates
remain the same as the FY 2015/2016. The Emergency Services District millage is increasing 2.0% due
primarily to the addition of fire rescue station #15, along with capital replacements. There are no rate
increases in the Solid Waste Disposal District assessment, or in water and sewer utility rates.
The single greatest individual expense in the budget is Personnel Services. In total, 32.72 additional
full-time positions are proposed for FY 2016/2017. BCC departments are increasing 31 full-time
positions, while Constitutional Officers show a net increase of 1.72 positions. This results in an
additional cost of $2,107,955 (BCC only). Ten of these positions are needed to staff the new fire station.
Several other positions support new recreation facilities such as the IG Facility and the Shooting Range.
REQUESTS 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 and Comptroller
Attention: Finance Department
1801 27th Street
Vero Beach, FL 32960
18
19
20
Indian River County, Florida
Statement of Net Position
September 30, 2016
Governmental Business -type
Activities Activities
Total
ASSETS
Current assets:
Cash and investments $ 208,115,221 8 63,387,053 $ 271,502,274
Accounts receivable - net 2,436,706 2,550,969 4,987,675
Brternal balances 377,690 (377,690)
Due from other governments 7,860,770 11,400 7,872,170
Interest receivable 393,975 583,070 977,045
Inventories 280,465 1,267,072 1,547,537
Prepaid expenses 1,176,162 19,840 1,196,002
Current restricted assets:
Cash and investments 5,687,973 52,024,952 57,712,925
Total current assets 226,328,962 119,466,666 345,795,628
Non-current assets:
Net other postemployment benefits asset 9,734,999 - 9,734,999
Capital assets - non -depreciable 219,787,285 31,548,719 251,336,004
Capital assets - depreciable 655,445,538 465,864,228 1,121,309,766
Capital assets - accumulated depreciation (315,968,824) (266,928,523) (582,897,347)
Non-current restricted assets:
Special assessments receivable 191,624 463,810 655,434
Impact fees receivable - 629,901 629,901
Liens receivable - 5,072,949 5,072,949
Total non-current assets 569,190,622 236,651,084 805,841,706
Total assets 795,519,584 356,117,750 1,151,637,334
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions 43,443,506 2,730,506 46,174,012
Deferred amounts on refunding 481,942 1,212,035 1,693,977
Total deferred outflows of resources 43,925,448 3,942,541 47,867,989
LIABILITIES
Current liabilities (payable from current assets):
Accounts payable 7,982,486 3,392,681 11,375,167
Retainage payable 84,401 84,401
Claims payable 3,624,891 - 3,624,891
Due to other governments 626,097 55,915 682,012
Other deposits held in escrow 131,098 1,000 132,098
Unearned revenues 618,578 38,309 656,887
Accrued compensated absences 6,321,654 718,153 7,039,807
Pollution remediation costs payable 99,233 - 99,233
Current liabilities (payable from current restricted assets):
Accounts payable - 25,706 25,706
Retainage payable 1,114,973 1,114,973
Accrued interest payable - 81,939 81,939
Customer deposits - 3,182,248 3,182,248
Notes payable 4,053,000 992,000 5,045,000
Bonds payable 520,000 2,000,000 2,520,000
Total current liabilities 25,092,010 10,572,352 35,664,362
Non-current liabilities:
Accrued compensated absences 4,669,328 193,540 4,862,868
Pollution remediation costs payable 2,345,867 2,345,867
Claims payable 4,887,629 - 4,887,629
Net pension liability 104,358,672 6,956,899 111,315,571
Notes payable 15,653,000 5,206,000 20,859,000
Closure and maintenance costs payable 13,009,736 13,009,736
Bonds payable, net of premium and discount 6,215,000 17,000,884 23,215,884
Total non-current liabilities 138,129,496 42,367,059 180,496,555
Total liabilities 163,221,506 52,939,411 216,160,917
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions 4,864,227 286,613 5,150,840
NET POSITION
Net investment in capital assets 533,304,941 206,497,575 739,802,516
Restricted for:
Transportation/road projects 22,570,838 - 22,570,838
Public safety 13,284,027 - 13,284,027
Court related costs 2,779,489 - 2,779,489
Housing assistance 834,801 - 834,801
Capital projects 72,625,156 - 72,625,156
Beach renourishment 10,469,411 10,469,411
Culture/recreation 4,810,089 - 4,810,089
Debt service 3,329,188 3,329,188
Environmental conservation/preservation 116,361 - 116,361
Special assessment projects 1,249,818 1,249,818
Unrestricted 5,985,180 100,336,692 106,321,872
Total net position $ 671,359,299 $ 306,834,267 $ 978,193,566
The accompanying notes are an integral part of the financial statements.
21
22
Functions/Programs
Primary Government:
Governmental activities:
General government
Public safety
Physical environment
Transportation
Economic environment
Human services
Culture/recreation
Court related
Interest and fiscal charges
Total governmental activities
Business -type activities:
Water and sewer
Solid waste
Golf course
Building
Total business -type activities
Total primary government
Expenses
Indian River County, Florida
Statement of Activities
For the Year Ended September 30, 2016
Charges for
Services
Program Revenues
Operating Capital
Grants and Grants and
Contributions Contributions
Net (Expense) Revenue and
Changes in Net Position
Governmental
Activities
27,472,414 $ 7,192,821 $ 14,148,274 $ 20,700 $ (6,110,619) $
77,587,638 8,244,224 1,347,443 - (67,995,971)
1,457,248 9,153 2,250 - (1,445,845)
28,221,515 4,508,637 4,756,309 5,435,317 (13,521,252)
427,227 - - (427,227)
7,790,430 165,041 3,886,040 292,718 (3,446,631)
14,713,304 2,405,951 250,081 220,364 (11,836,908)
7,077,295 2,394,385 197,049 - (4,485,861)
938,123 - (938,123)
165,685,194 24,920,212 24,587,446 5,969,099 (110,208,4371
35,420,291
12,714,713
2,605,612
2,724,650
31,089,758
13,345,745
3,230,630
3,406,022
5,035,914
Business -type
Activities
705,381
631,032
625,018
681,372
Total
$ (6,110,619)
(67,995,971)
(1,445,845)
(13,521,252)
(427,227)
(3,446,631)
(11,836,908)
(4,485,861)
(938,123)
(110,208,437)
705,381
631,032
625,018
681,372
53,465,266 51,072,155 - 5,035,914 - 2,642,803 2,642.803
$ 219,150,460 $ 75,992,367 $ 24,587,446 $ 11,005,013 (110,208,437) 2,642,803 (107,565,634)
General revenues:
Property taxes, levied for general purposes
Property taxes, levied for debt service
Sales and use taxes
Franchise fees, levied on gross receipts
Interest earnings
Miscellaneous
Transfers
Total general revenues and transfers
Change in net position
Net position - beginning
Net position - ending
80,100,810
4,594,381
24,387,340
9,273,567
1,333,048
5,141,162
784,452
125.614,760
15,406,323
655,952,976
$ 671,359,299 $
The accompanying notes are an integral part of the financial statements.
23
791,683
12,606
(784,452)
19,837
2,662,640
304,171,627
306,834,267 $
80,100,810
4,594,381
24,387,340
9,273,567
2,124,731
5,153,768
125,634,597
18,068,963
960,124,603
978,193,566
Indian River County, Florida
Balance Sheet
Governmental Funds
September 30, 2016
Secondary
Impact Roads
General Fees Construction
ASSETS
Cash and investments $ 49,152,540 $ 14,548,056 $ 12,911,668
Accounts receivable 837,552 - -
Special assessments receivable -
Due from other funds 378,414 - -
Due from other governments 3,962,091 119,943 1,107,895
Interest receivable 29,165 9,055 7,505
Inventories 99,169 - -
Prepaid items 121,027 - -
Advances to other funds 150,925 - -
Total assets $ 54,730,883 $ 14,677,054 $ 14,027,068
LIABILITIES
Accounts payable $ 3,341,381 $ 24,947 $ 1,374,524
Retainage payable - 434,350 226,210
Due to other funds 999,211 - -
Due to other governments 274,863 130,314
Unearned revenues 580,915 -
Other deposits 131,098 -
Total liabilities 5,327,468 589,611 1,600,734
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - special assessments
Unavailable revenue - ambulance services - -
Unavailable revenue - state and federal grants 955,677 - 640,815
Total deferred inflows of resources 955,677 640,815
FUND BALANCES
Nonspendable:
Inventories 99,169
Prepaid items 121,027
Advances to other funds 150,925
Restricted for:
Transportation/road improvements 9,184,228 11,785,519
Court -related costs and improvements -
Housing assistance -
Law enforcement/public safety - 974,638
Fire/emergency services 762,066
Tourism -related activities -
Beach renourishment -
Boating related projects -
Library services 858,338
Land acquisition -
Stormwater, street lighting, and other special assessments -
Debt service -
Capital projects 1,180,827
Dodgertown repairs/improvements -
Parks/recreational projects 1,000,000 1,127,346
Committed to:
Economic incentives 1,081,907
Environmental conservation/preservation -
Law enforcement/public safety 4,289
Parks/recreational projects 80,634
Assigned to:
Law enforcement/public safety -
Transportation/road improvements
Unassigned 45,909,787 -
Total fund balances 48,447,738 14,087,443 11,785,519
Total liabilities, deferred inflows and fund balances $ 54,730,883 $ 14,677,054 $ 14,027,068
The accompanying notes are an integral part of the financial statements.
24
$
Transportation
7,349,315 $
172
191,624
250,965
155,750
11,700
7,959,526 $
590,661 $
1,750
592,411
Emergency
Services
District
6,659,605 $
1,358,443
339,506
4,274
40,331
8,402,159 $
982,995 $
982,995
343,265
1,350,495
343,265 1,350,495
11,700
7,012,150
7,023,850
$ 7,959,526 $
40,331
6,028,338
6,068,669
8,402,159 $
Optional Other Total
Sales Governmental Governmental
Tax Funds Funds
70,467,632 $
70,718
2,034,468
38,954
72,611,772 $
759,981 $
407,462
1,167,443
26,019,800
71,262
100,901
345,759
12,031
19,237
50,638
26,619,628
$ 187,108,616
2,267,429
191,624
889,539
7,821,121
256,734
118,406
223,696
150,925
$ 199,028,090
574,673 $
46,951
13,000
62,833
35,913
733,370
7,649,162
1,114,973
1,012,211
468,010
618,578
131,098
10,994,032
343,265
1,350,495
284,510 83,702 1,964,704
284,510 83,702 3,658,464
71,159,819
71,159,819
72,611,772
25
19,237
50,638
42,480
2,737,297
833,555
3,622,098
504,381
10,469,411
1,136,371
2,830
116,361
1,249,818
3,329,188
180,823
1,090,527
311,003
106,538
25,802,556
26,619,628
118,406
223,696
150,925
21,012,227
2,737,297
833,555
4,596,736
6,790,404
504,381
10,469,411
1,136,371
861,168
116,361
1,249,818
3,329,188
72,340,646
180,823
2,127,346
1,081,907
1,090,527
315,292
80,634
106,538
7,012,150
45,909,787
184,375,594
$ 199,028,090
Indian River County, Florida
Reconciliation of Total Governmental Fund Balances
to Net Position of Governmental Activities
September 30, 2016
Total governmental fund balances: $ 184,375,594
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets used in governmental activities are not financial resources and, therefore, are not reported 558,765,236
in the funds.
Long-term liabilities, including bonds payable ($6,253,058), notes payable ($19,706,000),
accrued compensated absences ($10,845,325), medicaid settlement funds payable ($158,087),
accrued pollution remediation costs ($2,445,100), and claims and judgments ($59,500), are not
due and payable in the current period and, therefore, not reported in the funds.
(39,467,070)
On the governmental fund statements, a net pension liability is not recorded until an amount is due and
payable and the pension plan's fiduciary net position is not sufficient for payment of those benefits. On
the statement of net position, the County's proportionate share of the net pension liability ($103,424,294)
of the cost-sharing defined benefit pension plans in which the County participates is reported.
Additionally, deferred outflows ($43,074,254) and deferred inflows ($4,827,814) related to pensions are
also reported in accordance with GASB Statement No. 68. (65,177,854)
Special assessments, ambulance services, and state and federal grant receivables are not available to pay for
current period expenditures and, therefore, are reported as unavailable revenue in the funds. 3,658,464
Accrued interest is not recognized in the current period because the resources are not available
and, therefore, not reported in the funds. 108,283
Internal service funds are used by management to charge the costs of certain activities, such as insurance,
fleet, and information technology services, to individual funds. The assets and liabilities of the
internal service funds are included in governmental activities in the statement of net position. 28,361,647
The OPEB asset resulting from contributions in excess of the annual required contribution is not a financial
resource and, therefore, is not reported in the governmental funds. 734,999
Net position of governmental activities $ 671,359,299
The accompanying notes are an integral part of the financial statements.
26
27
Indian River County, Florida
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended September 30, 2016
Secondary
Impact Roads
General Fees Construction
REVENUES
Taxes $ 55,947,406 $ - $ 3,741,935
Permits, fees and special assessments 9,533,523 6,261,663 91
Intergovernmental 18,359,411 158,631 1,373,212
Charges for services 7,653,391 - -
Judgments, fines and forfeits 1,253,925 - -
Interest 363,004 86,129 74,219
Miscellaneous 4,276,456 311,754 36,065
Total revenues97,387,116 6,818,1775,225,522
EXPENDITURES
General government 20,839,685 192,022
Public safety 43,118,362 26,030
Physical environment 295,860
Transportation 4,724,438 3,718,740 6,438,954
Economic environment 420,669 -
Human services 3,828,810 -
Culture/recreation 8,743,746 2,800,210
Court related 5,861,673 -
Debt service:
Principal
Interest and other fiscal charges
Capital projects - -
Total expenditures 87,833,243 6,737,002 6,438,954
Excess of revenues over (under) expenditures 9,553,873 81,175 (1,213,432)
OTHER FINANCING SOURCES (USES)
Transfers in 1,342,555 - -
Transfers out (12,727,920) (186,481) (681,005)
Total other financing sources (uses) (11,385,365) (186,481) (681,005)
Net change in fund balances (1,831,492) (105,306) (1,894,437)
Fund balances at beginning of year 50,279,230 14,192,749 13,679,956
Fund balances at end of year $ 48,447,738 $ 14,087,443 $ 11,785,519
The accompanying notes are an integral part of the financial statements.
28
Emergency
Services
Transportation District
$ 25,502,289
219,543 -
3,147,607 103,773
93,623 6,409,097
4,500
47,203 76,523
549,742 32,550
4,057,718 32,128,732
312,571
464,707
11,589,004
32,080,896
12,366,282 32,080,896
(8,308,564) 47,836
9,199,769
(903,843) (1,121,822)
8,295,926 (1,121,822)
(12,638)
(1,073,986)
7,036,488 7,142,655
7,023,850
6,068,669
Optional
Sales
Tax
$ 16,858,894
45
1,915,979
355,337
2,476,958
21,607,213
29
Other
Governmental
Funds
$ 7,032,007
515,314
8,476,414
1,376,817
414,348
130,800
474,868
18,420,568
1,348,956
2,090,930
28,236
1,034,523
3,924
4,039,582
2,018,809
744,009
4,383,000
832,007
13,329,391 -
13,329,391 16,523,976
8,277,822
(1,224,916)
(1,224,916)
7,052,906
64,106,913
71,159,819
1,896,592
1,788,849
(529,619)
1,259,230
3,155,822
22,646,734
25,802,556
Total
Governmental
Funds
$ 109,082,531
16,530,179
33,535,027
15,532,928
1,672,773
1,133,215
8,158,393
185,645,046
22,693,234
77,316,218
788,803
27,505,659
424,593
7,868,392
13,562,765
6,605,682
4,383,000
832,007
13,329,391
175,309,744
10,335,302
12,331,173
(17,375,606)
(5,044,433)
5,290,869
179,084,725
184,375,594
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, 2016
Net change in fund balances - total governmental funds $ 5,290,869
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 29,701,480
Less current year loss on assets (692,679)
Less current year depreciation (20,278,372) 8,730,429
Payments of bond principal, pollution remediation, and medicaid settlement costs are
expenditures in the governmental funds, but the payment reduces long-term liabilities
in the statement of net position.
Bond principal payment 4,040,000
Note principal payment 343,000
Legal judgment (59,500)
Medicaid settlement 158,086
Pollution remediation costs 106,100 4,587,686
Changes in accrued compensated absences do not require the use of current financial
resources and, therefore, are not reported as expenditures in governmental funds. 140,158
Governmental funds report interest and OPEB expenditures based on when they are paid.
The statement of activities reports these expenses as they are incurred. This is the
net number of the prior year and current year accrual.
Deferred amount on refunding amortization expense (106,116)
Accrued OPEB expense (179,910) (286,026)
Governmental funds report contributions in defined benefit pension plans as expenditures.
However, in the statement of activities, the amount contributed to defined benefit pension plans
reduces future net pension liabilities and is reported as part of deferred outflows of resources. 2,575,663
In the statement of activities, pension expense is recorded for the County's proportionate share
of collective pension expense of the cost-sharing defined benefit plans in which the County
participates. Also included in pension expense are amounts required to be amortized in
accordance with GASB Statement No. 68. (7,402,550)
Internal service funds are used by management to charge the costs of insurance, fleet and
information technology services to individual funds. The net costs of the
internal service funds are reported in governmental activities. 4,970,740
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 the prior year and current year accrual. (3,238,398)
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 the prior year and current year accrual. 37,752
Change in net position of governmental activities $ 15,406,323
The accompanying notes are an integral part of the financial statements
30
Indian River County, Florida
Statement of Revenues, Expenditures, and
Changes in Fund Balances - Budget and Actual
General Fund
For the Year Ended September 30, 2016
REVENUES
Taxes
Permits, fees and special assessments
Intergovernmental
Charges for services
Judgments, fines and forfeits
Interest
Miscellaneous
Total revenues
EXPENDITURES
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)
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
Budgeted Amounts
Original Final
55,216,397 $
8,627,900
11,823,039
7,946,387
361,950
152,115
3,617,120
87,744,908
20,266,325
43,006,023
298,144
750,000
411,520
3,937,003
8,727,616
5,885,952
83,282,583
4,462,325
1,224,985
(9,397,661)
(8,172,676)
(3,710,351)
3,710,351
55,216,397 $
8,627,900
17,175,187
8,107,857
361,950
152,115
3,835,510
93,476,916
21,871,409
43,629,860
315,376
6,113,992
437,003
3,997,892
9,344,787
5,935,947
91,646,266
1,830,650
1,383,509
(12,729,066)
(11,345,557)
(9,514,907)
9,514,907
Actual
Amounts
55,947,406
9,533,523
18,359,411
7,653,391
1,253,925
363,004
4,276,456
97,387,116
20,839,685
43,118,362
295,860
4,724,438
420,669
3,828,810
8,743,746
5,861,673
87,833,243
Variance with
Final Budget
Positive
(Negative)
$ 731,009
905,623
1,184,224
(454,466)
891,975
210,889
440,946
3,910,200
1,031,724
511,498
19,516
1,389,554
16,334
169,082
601,041
74,274
3,813,023
9,553,873 7,723,223
1,342,555
(12,727,920)
(11,385,365)
(40,954)
1,146
(39,808)
(1,831,492) $ 7,683,415
50,279,230
48,447,738
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
Impact Fees Fund
For the Year Ended September 30, 2016
REVENUES
Permits, fees and special assessments
Intergovernmental
Interest
Miscellaneous
Total revenues
EXPENDITURES
General government
Public safety
Transportation
Culture/recreation
Total expenditures
Excess of revenues 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
Budgeted Amounts
Original Final
2,788,250 $
28,500
2,816,750
217,234
6,027,000
900,000
7,144,234
(4,327,484)
(100,000)
(100,000)
(4,427,484)
4,427,484
2,788,250 $
28,500
2,816,750
619,664
47,891
8,310,717
3,873,785
12,852,057
(10,035,307)
(786,481)
(786,481)
(10,821,788)
10,821,788
Actual
Amounts
6,261,663 $
158,631
86,129
311,754
6,818,177
192,022
26,030
3,718,740
2,800,210
6,737,002
81,175
(186,481)
(186,481)
Variance
with Final
Budget
Positive
(Negative)
3,473,413
158,631
57,629
311,754
4,001,427
427,642
21,861
4,591,977
1,073,575
6,115,055
10,116,482
600,000
600,000
(105,306) $ 10,716,482
14,192,749
14,087,443
The accompanying notes are an integral part of the financial statements.
32
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, 2016
REVENUES
Taxes
Permits, fees and special assessments
Intergovernmental
Interest
Miscellaneous
Total revenues
EXPENDITURES
Transportation
Total expenditures
Excess of revenues 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
Budgeted Amounts
Original Final
3,268,000 $
19,000
3,287,000
4,434,128
4,434,128
3,268,000 $
57,170
2,206,710
19,000
20,000
5,570,880
10,566,513
10,566,513
Actual
Amounts
3,741,935 $
91
1,373,212
74,219
36,065
5,225,522
6,438,954
6,438,954
(1,147,128) (4,995,633) (1,213,432)
(681,006)
(681,006)
(681,005)
(681,005)
Variance
with Final
Budget
Positive
(Negative)
473,935
(57,079)
(833,498)
55,219
16,065
(345,358)
4,127,559
4,127,559
3,782,201
(1,147,128) (5,676,639) (1,894,437) $ 3,782,202
1,147,128
5,676,639
13,679,956
- $ 11,785,519
The accompanying notes are an integral part of the financial statements.
33
Indian River County, Florida
Statement of Revenues, Expenditures, and
Changes in Fund Balances - Budget and Actual
Transportation Fund
For the Year Ended September 30, 2016
REVENUES
Permits, fees and special assessments
Intergovernmental
Charges for services
Interest
Miscellaneous
Total revenues
EXPENDITURES
General government
Physical environment
Transportation
Total expenditures
Excess of revenues 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
Budgeted Amounts
Original Final
175,750 $
2,476,014
91,200
30,400
431,275
3,204,639
286,692
599,831
12,389,058
13,275,581
(10,070,942)
9,199,769
(107,667)
9,092,102
175,750 $
2,552,627
91,200
30,400
431,275
3,281,252
329,438
788,844
12,854,548
13,972,830
(10,691,578)
9,199,769
(903,843)
8,295,926
(978,840) (2,395,652)
978,840
2,395,652
Actual
Amounts
219,543 $
3,147,607
93,623
47,203
549,742
4,057,718
Variance
with Final
Budget
Positive
(Negative)
43,793
594,980
2,423
16,803
118,467
776,466
312,571 16,867
464,707 324,137
11,589,004 1,265,544
12,366,282 1,606,548
(8,308,564) 2,383,014
9,199,769 -
(903,843)
8,295,926 -
(12,638) $ 2,383,014
7,036,488
7,023,850
The accompanying notes are an integral part of the financial statements.
34
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, 2016
REVENUES
Taxes
Intergovernmental
Charges for services
Judgments, fines and forfeits
Interest
Miscellaneous
Total revenues
EXPENDITURES
Public safety
Total expenditures
Excess of revenues 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
Budgeted Amounts
Original Final
$ 25,209,922 $
45,125
5,174,952
11,400
28,500
37,820
30,507,719
30,711,290
30,711,290
25,209,922 $
74,434
5,174,952
11,400
28,500
37,820
30,537,028
37,061,374
37,061,374
(203,571) (6,524,346)
Actual
Amounts
Variance
with Final
Budget
Positive
(Negative)
25,502,289 $ 292,367
103,773 29,339
6,409,097 1,234,145
4,500 (6,900)
76,523 48,023
32,550 (5,270)
32,128,732 1,591,704
32,080,896 4,980,478
32,080,896 4,980,478
47,836 6,572,182
(494,569) (1,140,914) (1,121,822)
(494,569) (1,140,914) (1,121,822)
19,092
19,092
(698,140) (7,665,260) (1,073,986) $ 6,591,274
698,140
7,665,260
7,142,655
6,068,669
The accompanying notes are an integral part of the financial statements.
35
36
Indian River County, Florida
Statement of Fund Net Position
Proprietary Funds
September 30, 2016
Business -type Activities - Enterprise funds Governmental
Solid Waste Activities
Disposal Golf County County Internal
District Course Utilities Building Total Service Funds
ASSETS
Current assets:
Cash and investments $ 13,326,940 $ 10,275 $ 43,400,684 $ 6,649,154 $ 63,387,053 $ 26,694,578
Accounts receivable - net 99,011 2,451,958 2,550,969 169,277
Due from other funds 138,649 - - 138,649 349,437
Due from other governments - 11,400 - 11,400 39,649
Interest receivable 20,435 341 554,532 7,762 583,070 28,958
Inventories 127,571 1,139,501 - 1,267,072 162,059
Prepaid items 19,805 35 19,840 9,952,466
Current restricted assets:
Cash and investments 16,296,093 - 35,728,859 52,024,952 -
Total current assets 29,881,128 149,587 83,295,339 6,656,951 119,983,005 37,396,424
Non-current assets:
Capital assets - non -depreciable 13,293,870 6,681,423 11,573,426 31,548,719 -
Capital assets - depreciable 31,794,449 3,420,390 429,969,106 680,283 465,864,228 2,678,726
Capital assets - accumulated depreciation (12,640,764) (1,830,481) (252,114,279) (342,999) (266,928,523) (2,179,963)
Non-current restricted assets:
Special assessments receivable - - 463,810 - 463,810 -
Impact fees receivable - 629,901 - 629,901 -
Liens receivable - - 5,072,949 - 5,072,949 -
Total non-current assets 32,447,555 8,271,332 195,594,913 337,284 236,651,084 498,763
Total assets 62,328,683 8,420,919 278,890,252 6,994,235 356,634,089 37,895,187
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions 166,720 134,913 2,003,184 425,689 2,730,506 369,252
Deferred amounts on refundings - - 1,212,035 1,212,035 -
Total deferred outflows of resources 166,720 134,913 3,215,219 425,689 3,942,541 369,252
LIABILITIES
Current liabilities (payable from current assets):
Accounts payable 1,270,367 111,995 1,846,537 163,782 3,392,681 273,824
Retainage payable - 84,401 84,401 -
Due to other funds 365,414 - 365,414 -
Claims payable - - - 3,624,891
Due to other governments - 8,357 24,036 23,522 55,915 -
Other deposits - 1,000 - 1,000
Unearned revenues - 38,309 - - 38,309 -
Accrued compensated absences 51,992 24,070 547,641 94,450 718,153 80,736
Total current liabilities (payable from current assets) 1,322,359 549,145 2,502,615 281,754 4,655,873 3,979,451
Current liabilities (payable from restricted assets):
Accounts payable - - 25,706 - 25,706 -
Accrued interest payable - - 81,939 81,939 -
Notes payable - - 992,000 - 992,000 -
Bonds payable - 2,000,000 2,000,000
Customer deposits 133,626 - 3,048,622 - 3,182,248 -
Total current liabilities (payable from restricted assets) 133,626 - 6,148,267 - 6,281,893 -
Total current liabilities 1,455,985 549,145 8,650,882 281,754 10,937,766 3,979,451
Non-current liabilities:
Accrued compensated absences - 47,039 143,256 3,245 193,540 64,921
Advance from other funds - 150,925 150,925
Claims payable - - - 4,887,629
Closure and maintenance costs payable 13,009,736 - - - 13,009,736
Net pension liability 410,143 351,077 5,180,743 1,014,936 6,956,899 934,378
Notes payable 5,206,000 5,206,000
Bonds payable - net of unamortized discount/premium 17,000,884 17,000,884 -
Totalnon-currentliabilities 13,419,879 549,041 27,530,883 1,018,181 42,517,984 5,886,928
Total liabilities 14,875,864 1,098,186 36,181,765 1,299,935 53,455,750 9,866,379
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions 12,149 16,846 238,410 19,208 286,613 36,413
NET POSITION
Net investment in capital assets 32,447,555 8,271,332 165,441,404 337,284 206,497,575 498,763
Unrestricted (deficit) 15,159,835 (830,532) 80,243,892 5,763,497 100,336,692 27,862,884
Total net position $ 47,607,390 $ 7,440,800 $ 245,685,296 $ 6,100,781 $ 306,834,267 $ 28,361,647
The accompanying notes are an integral part of the financial statements.
37
Indian River County, Florida
Statement of Revenues, Expenses, and Changes in Fund Net Position
Proprietary Funds
For the Year Ended September 30, 2016
OPERATING REVENUES
Charges for services
Charges for services pledged as security for revenue bonds
Total operating revenues
Business -type Activities -
Solid Waste
Disposal Golf
District Course
13,345,745 $ 3,230,630
13,345,745 3,230,630
OPERATING EXPENSES
Personal services 660,395 571,289
Material, supplies, services and other operating 10,978,915 1,864,433
Depreciation 1,075,403 152,480
Total operating expenses 12,714,713 2,588,202
Operating income (loss) 631,032 642,428
NONOPERATING REVENUES (EXPENSES)
Interest income 233,656 3,732
Interest income pledged as security for revenue bonds - -
Gain on disposal of equipment 150 25
Interest expense - (17,410)
Loss on disposal of equipment - -
Total nonoperating revenues (expenses) 233,806 (13,653)
Income (loss) before transfers and capital grants and
contributions 864,838 628,775
Capital contributions - -
Transfers (63,694) (19,108)
Change in net position 801,144 609,667
Total net position - beginning
Total net position - ending
46,806,246 6,831,133
$ 47,607,390 $ 7,440,800
The accompanying notes are an integral part of the financial statements.
38
Enterprise Funds
County County
Utilities Building
31,089,758
31,089,758
8,182,717
11,705,131
14,384,481
34,272,329
(3,182,571)
517,020
9,131 3,300
(1,094,748)
(53,214)
(621,811) 40,575
3,406,022
3,406,022
1,756,121
930,067
38,462
2,724,650
681,372
37,275
Total
Governmental
Activities -
Internal
Service Funds
19,982,397 S 23,260,757
31,089,758 -
51,072,155 23,260,757
11,170,522 3,236,319
25,478,546 20,975,466
15,650,826 170,320
52,299,894 24,382,105
(1,227,739) (1,121,348)
274,663 155,801
517,020
12,606
(1,112,158)
(53,214)
(361,083) 155,801
(3,804,382) 721,947 (1,588,822)
(965,547)
5,143,316 - 5,143,316 -
(668,925) (140,127) (891,854) 5,936,287
670,009 581,820 2,662,640 4,970,740
245,015,287 5,518,961 304,171,627 23,390,907
$ 245,685,296 $ 6,100,781 $ 306,834,267 $ 28,361,647
Indian River County, Florida
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2016
Business -type Activities -
Solid Waste
Disposal
District
Golf Course
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $ 13,324,262 $ 3,239,266
Cash paid to suppliers for goods and services (9,666,689) (1,862,813)
Cash paid to employees for services (634,013) (548,025)
Net cash provided by (used in) operating activities 3,023,560 828,428
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Transfers
Proceeds from advances from other funds
Payments on advances from other funds
Net cash provided by (used in) noncapital financing activities
(63,694)
(19,108)
90,000
(135,000)
(63,694) (64,108)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Principal payments - bonds/notes
Interest paid on long-term debt (17,410)
Proceeds from advances from other funds - 254,500
Payments on advances from other funds - (705,254)
Proceeds from sales of capital assets 150 25
Purchase of capital assets (216,775) (294,909)
Bond paying agent fees -
Capital contributed by others
Net cash flows provided by (used in) capital and related financing activities (216,625) (763,048)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest and dividends on investments 223,756 3,619
Net cash provided by investing activities 223,756 3,619
Net increase (decrease) in cash and investments
Cash and investments at beginning of year
Cash and investments at end of year
Classified as:
Current assets
Restricted assets
Total
2,966,997 4,891
26,656,036 5,384
29,623,033 $ 10,275
13,326,940 $
16,296,093
10,275
$ 29,623,033 $ 10,275
The accompanying notes are an integral part of the financial statements.
40
Enterprise Funds
County
Utilities
32,153,668 $
(11,289,100)
(7,956,458)
12,908,110
(668,925)
(668,925)
(2,878,000)
(1,095,886)
9,131
(3,435,037)
(9,050)
3,067,648
(4,341,194)
484,431
484,431
8,382,422
70,747,121
79,129,543 $
$ 43,400,684 $
35,728,859
$ 79,129,543 $
County
Building
3,406,022 $
(846,679)
(1,687,788)
871,555
(140,127)
(140,127)
3,300
(249,252)
(245,952)
33,724
33,724
519,200
6,129,954
6,649,154 $
6,649,154 $
Total
52,123,218 $
(23,665,281)
(10, 826,284)
17,631,653
(891,854)
90,000
(13 5,000)
(936,854)
(2,878,000)
(1,113,296)
254,500
(705,254)
12,606
(4,195,973)
(9,050)
3,067,648
(5,566,819)
745,530
745,530
11,873,510
103,538,495
Governmental
Activities -
Internal
Service Funds
23,037,499
(20,526,389)
(12,161,596)
(9,650,486)
5,936,287
5,936,287
(253,948)
(253,948)
146,654
146,654
(3,821,493)
30,516,071
115,412,005 $ 26,694,578
63,387,053 $
52,024,952
26,694,578
6,649,154 $ 115,412,005 $ 26,694,578
Continued
Indian River County, Florida
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2016
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH
PROVIDED BY (USED IN) 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 funds
Due from other governments
Inventories
Impact fees receivable
Special assessments receivable
Liens receivable
Business -type Activities -
Solid Waste
Disposal Golf
District Course
631,032 $ 642,428
1,075,403
8,303
(28,286)
Prepaid expenses 1,136
Increase (Decrease) in liabilities:
Accounts payable
Due to other governments
Retainage payable
Customer deposits
Closure and maintenance costs payable
Net pension liability
Unearned revenues
Claims payable
Accrued compensated absences
Total adjustments
Net cash provided by (used in) operating activities
NONCASH CAPITAL AND RELATED
FINANCING ACTIVITIES
311,090
(1,500)
1,000,000
20,360
6,022
152,480
(600)
(32,655)
33,153
1,722
15,741
8,636
7,523
2,392,528 186,000
$ 3,023,560 $ 828,428
Change in fair value of investments $ 28,411 $
Contributed property, infrastructure, and equipment $ - $
Capital assets purchased through accounts payable $ 2,500 $
The accompanying notes are an integral part of the financial statements.
42
474
36,627
Enterprise Funds
County County
Utilities Building
Total
Governmental
Activities -
Internal
Service Funds
(3,182,571) $ 681,372 $
(1,227,739) $ (1,121,348)
14,384,481 38,462 15,650,826 170,320
(64,593) - (56,290) 130,129
- (28,286) (349,437)
1,558,830 1,558,230 (3,950)
(264,310) (296,965) (13,741)
53,385 - 53,385 -
142,759 - 142,759 -
(744,502) (744,502)
122,113 1,023 124,272 (8,963,682)
517,096 84,804 946,143 91,500
24,036 (2,439) 23,319
17,096 17,096
118,031 - 11.6,531.
1,000,000
234,948 53,218 324,267 44,097
8,636
335,000
(8,689) 15,115 19,971 30,626
16,090,681 190,183 18,859,392 (8,529,138)
$ 12,908,110 $ 871,555 $ 17,631,653 $ 9,650,486
$ 120,706 $ 10,792 $ 160,383 $
$ 2,075,668 $ - $ 2,075,668 $
$ 102,658 $ - $ 141,785 $
40,260
Indian River County, Florida
Statement of Fiduciary Net Position
Fiduciary Funds
September 30, 2016
ASSETS
Cash
Investments, at fair value
Index funds
U.S. government securities funds
Primary money market fund
Total assets
LIABILITIES
Due to other governments
Other deposits held in escrow
Total liabilities
NET POSITION
Assets held in trust for other postemployment benefits
Total net position
Agency
$ 10,684,084
Other
Postemployment
Benefits Trust
$ 3,001,455
$ 10,684,084 $
$ 5,373,527 $
5,310,557
$ 10,684,084
11,289,261
9,183,810
2,028,784
25,503,310
25,503,310
$ 25,503,310
The accompanying notes are an integral part of the financial statements.
44
Indian River County, Florida
Statement of Changes in Fiduciary Net Position
Other Post Employment Benefits Trust Fund
For the Year Ended September 30, 2016
ADDITIONS
Employer contributions $ 12,096,411
Investment income 1,053,296
Investment expense (2,025)
Net investment income 1,051,271
Total additions 13,147,682
DEDUCTIONS
Benefits payments 2,494,528
Total deductions 2,494,528
Change in net position 10,653,154
Net position - beginning 14,850,156
Net position - ending $ 25,503,310
The accompanying notes are an integral part of the financial statements.
45
46
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2016
Note
1 Summary of Significant Accounting
Policies
Reporting Entity
Measurement Focus and Basis of
Accounting
Basis of Presentation
Assets, Liabilities, Deferred Outflows/
Inflows of Resources, and Net
Position or Fund Balances
Cash and Investments
Allowance for Doubtful Accounts
Receivables and Payables
Inventories
Prepaid Items
Restricted Net Position
Capital Assets
Capitalization of Interest
Deferred Inflows/Outflows of
Resources
Pensions/Net Pension Liability
Change in Accounting Principle/New
Accounting Pronouncement
Unearned Revenues
Accrued Compensated Absences
Obligation for Bond Arbitrage
Rebate
Landfill Closure Costs
Unamortized Bond Discounts
and Premiums
Capital Contributions
2 Stewardship, Compliance and
Accountability
Budget and Budgetary Accounting
3 Cash and Investments
Deposits
Accrued Interest
Investments
OPEB Trust Investments
Page Note
Page
4 Property Tax Revenues 66
48 5 Capital Assets 67
48 6 Restricted Cash and Investments 70
7 Interfund Balances 71
49 8 Interfund Transfers 72
52 9 Accounts Payable 73
10 Long-term Liabilities 74
Changes in Long-term Liabilities 74
54 Governmental Activities 75
54 Annual Debt Service Payments 75
55 Spring Training Facility Rev Bonds 75
55 Limited General Obligation Ref Note 78
55 Business -type Activities 79
55 Annual Debt Service Payments 79
55 Water and Sewer Revenue
56 Refunding Note, Series 2015. 80
57 Water and Sewer Revenue
Refunding Bonds, Series 2009 80
57 Compensated Absences 81.
58 11 Provision for Closure Costs 82
12 Pollution Remediation 83
58 13 Retirement Plan - Florida Retirement
58System 84
59 14 Other Postemployment Benefits Plan 95
15 Operating Leases 100
59 16 Fund Balance 102
59 17 Net Position 103
18 Risk Management 104
59 19 Commitments and Contingencies 105
59 Litigation 105
Contracts and Other Commitments 105
60 Grants 106
60 20 Subsequent Events 106
61
61
61
62
65
47
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2016
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 146,410. The County is governed by the Board of County
Commissioners and five elected constitutional officers (Clerk of the Circuit Court and Comptroller,
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
from 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
Standards Board (GASB) is the standard-setting body for governmental accounting and financial
reporting. 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, management determined that the Solid Waste Disposal District and the Emergency Services
District were the only organizations that should be included in the County's financial statements as
blended component units.
48
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
A. Reporting Entity — Continued
Blended Component Units
Solid Waste Disposal District (SWDD) — Created pursuant to County Ordinance 87-67, the Board of
County Commissioners serves as the governing body for and has operational responsibility over the
SWDD. The Board also 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.
Emergency Services District (EMS) — Created pursuant to County Ordinance 90-25, the Board of
County Commissioners serves as the governing body for and has operational responsibility over the
EMS. The Board also sets the millage rate for the EMS. Although legally separate, the EMS is
appropriately blended as a governmental fund type (special revenue) component unit into the primary
government.
B. Measurement Focus and Basis of Accounting
The basic financial statements of the County are composed of the following:
• Government -wide financial statements
• Fund financial statements
• Notes to the financial statements
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
business -type activities of the primary government (including its blended component units).
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.
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, deferred outflows/inflows of resources,
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.
49
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
B. Measurement Focus and Basis of Accounting - Continued
1. Government -wide Financial Statements - Continued
Amounts paid to acquire capital assets are capitalized as assets in the government -wide financial
statements, rather than reported as expenditures. Issuance of long-term debt is recorded as a liability 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 an expenditure.
As a general rule, the effect of interfund activity has been eliminated from the government -wide
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 and diesel from Fleet Management to the government, are not eliminated in the statement of
activities.
2. Fund Financial Statements
The underlying accounting system of the County 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, deferred outflows
of resources, liabilities, deferred inflows of resources, fund balance, 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 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
funds.
Governmental Funds
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 collected within the
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, 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 the County receives cash.
50
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
B. Measurement Focus and Basis of Accounting - Continued
2. Fund Financial Statements - Continued
Governmental Funds - Continued
Under the current financial resources measurement focus, only current assets, deferred outflows of
resources, current liabilities and deferred inflows of resources 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 fund balance. Accordingly, they are said to
present a summary of sources and uses of "available spendable resources" during a period.
Non-current portions of special assessments due to governmental funds are reported on their balance
sheets in spite of their spending measurement focus. Non-current portions of special assessment
receivables are offset by deferred inflows of resources.
Because of their spending measurement focus, expenditure recognition for governmental fund types
excludes amounts represented by non-current liabilities. Since they do not affect fund balances, 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 issuance of long-term debt is recorded as an other 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
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, deferred outflows of resources, liabilities and
deferred inflows of resources (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 position.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Proprietary
fund operating revenues, such as charges for services and premiums charged to the County and
employees under various insurance programs, 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. Principal operating expenses include
salary and benefits, cost of sales and services, claims, and insurance premiums. All revenues and
expenses not meeting these definitions are reported as non-operating revenues and expenses.
51
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
B. Measurement Focus and Basis of Accounting - Continued
2. Fund Financial Statements - Continued
Proprietary Funds - Continued
Amounts paid to acquire capital assets are capitalized as assets in the fund financial statements, rather
than reported as expenditures. Issuance of long-term debt is recorded as a liability in the fund financial
statements, rather than as an other financing source. Amounts paid to reduce long-term indebtedness are
reported as a reduction of the related liabilities, rather than as an expense.
Fiduciary Funds
The fiduciary funds financial statements include financial information for the agency fund and the other
postemployment benefit trust fund. The agency fund of the County primarily represents assets held by
the County in a custodial capacity for other individuals or governments. The other postemployment
benefits trust fund (Trust) accounts for activities of the Trust, which accumulates resources for health
insurance benefit payments for current retirees and for current employees upon their retirement. The
agency and Trust fund statements are presented using the accrual basis of accounting.
C. Basis of Presentation
GASB Statement 34 sets forth minimum criteria (percentage of the assets, liabilities, deferred
outflows/inflows of resources, revenues or expenditures/expenses of either fund category and the
governmental and enterprise combined) for the deteunination 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 nonmajor funds are
combined in a column in the fund financial statements and detailed in the combining section.
1. Governmental Major 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 accounted for and reported 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. Funds are also used for administrative expenditures of monitoring the
aforementioned activities.
Secondary Roads Construction Fund — The Secondary Roads Construction Fund accounts for the
expenditures of road and bridge construction, roadway, bridge and right of way maintenance and
drainage, and related administrative costs. Financing is provided by collections of the local option gas
tax.
52
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
C. Basis of Presentation - Continued
1. Governmental Major Funds - Continued
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 County. Financing is
provided by ad valorem taxes.
Optional 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.
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.
County Building Fund — The County Building Fund accounts for revenues, expenses, assets and
liabilities associated with the County building permit and inspection program.
3. Other Fund Types
Internal Service Funds — Internal Service Funds account for Fleet Management, Self Insurance and
Information Technology 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 by the
County for other governmental units, other funds, individuals and businesses. Examples include payroll
deductions, self insurance premiums, and developer escrow funds.
Other Postemployment Benefits Trust Fund — The Other Postemployment Benefits Trust Fund (Trust)
accounts for activities of the Trust, which accumulates resources for health insurance benefit payments
for current retirees and for current employees upon their retirement. Contributions are recorded when
earned and benefit payments and refunds when incurred within each year.
53
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
C. Basis of Presentation — Continued
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 Position.
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position or Fund
Balances
Cash and Investments
Cash reported on the financial statements includes bank deposits, cash on hand, certificates of deposit,
money market accounts, and all highly liquid investments with maturities of ninety days or less when
purchased. Investments consist of U.S. Treasury Securities, U.S. Government Agency Securities,
money market funds, certificates of deposit, Florida PRIME Fund (formerly known as the Local
Government Surplus Funds Trust Fund Investment (SBA) Fund A), the Florida Trust Day to Day Fund,
and the Florida Local Government Investment Trust Fund (FLGIT). Investments are reported at fair
value based upon the average price obtained from three brokers/dealers. The SBA and FLGIT values
are based upon the fair market value per share of the underlying portfolio. Refer to Note 3-C,
Investments, for further information on individual investments.
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 investments for financial
statement purposes.
In addition, longer-term investments are held by several of the County's funds and are reported as
restricted cash on these statements. Cash and investments of the constitutional officers are maintained
in separate accounts, but have been combined with the Board's cash and investments for financial
statement purposes.
When restricted and unrestricted resources are available, expenses are paid first from restricted
resources.
54
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position or Fund
Balances - Continued
2. Allowance for Doubtful Accounts
The County provides an allowance for water and sewer and ambulance services accounts receivables
that may become uncollectible. At September 30, 2016, the allowance for water and sewer services was
$424,493 and the allowance for ambulance services was $2,067,959. No other allowances for doubtful
accounts are maintained since other accounts receivable are considered collectible as reported at
September 30, 2016.
3. 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.
4. Inventories
Inventories are valued at cost, which approximates market, using the "first -in, first -out" method of
accounting, with the exception of the Golf Course and Fleet Internal Service Fund's inventories which
are valued using the average cost method of accounting. Inventories of all funds are recorded as
expenditures (expenses) when consumed rather than when purchased.
5. Prepaid Items
Prepaid items 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.
6. Restricted Net Position
Certain resources of the County are classified as restricted net position on the statement of net position
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 net position, qualified expenses are
considered to be paid first from restricted net position and then from unrestricted net position. Further
information on the restrictions can be found in Note 17.
55
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position or Fund
Balances - Continued
7. Capital Assets
Capital assets, which include property, plant, equipment, infrastructure (e.g., roads, bridges, right-of-
ways, water and sewer distribution systems, beach restoration, stormwater systems and similar items),
and intangible assets (e.g. software, easements, and rights), 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 $1,000 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. Transfers of capital assets within the County are recorded at their carrying value at the
time of the transfer.
The costs of normal maintenance and repairs that do not add to the value of the asset nor 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 and Comptroller, 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 position.
Property, plant, equipment, intangible, and infrastructure assets of the primary government, as well as
the component units, are depreciated using the straight-line method over the following estimated useful
lives:
Assets Years
Building and improvements 10 — 50
Machinery and equipment 3 — 10
Utility distribution system 25 — 50
Road and bridge infrastructure 20 — 50
Fiberoptics 20
Software 3-5
Beach preservation infrastructure 7
Stormwater infrastructure 30
56
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position or Fund
Balances - Continued
8. 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.
9. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section for
deferred outflows of resources. Deferred outflows of resources represent a consumption of net position
that applies to a future period(s) and so will not be recognized as an outflow of resources
(expense/expenditure) until then. The County reports the deferred charge on refundings in the amount
of $1,693,977 in this category on the government -wide statement of net position. A deferred charge on
refundings results from the difference in the carrying value of refunded debt and its reacquisition price.
This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt.
In addition to liabilities, the statement of financial position may report a separate section for deferred
inflows of resources. Deferred inflows of resources represent an acquisition of net position that applies
to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.
The County has one item, unavailable revenue, which arises under the modified accrual basis of
accounting and is reported on the governmental funds balance sheet in the total amount of $3,658,464.
The sources of the unavailable revenue are a special assessments on road paving, ambulance service
billings, and state and federal grants. These amounts are deferred and recognized as an inflow of
resources in the period that the amounts become available.
In addition to the above two deferred items, there are deferred outflows and inflows items related to
pensions as calculated in accordance with GASB Statement 68, Accounting and Financial Reporting
for Pensions. These deferred outflows and inflows will be recognized as adjustments to pension
expense in future reporting years.
Detail on the composition of the deferred inflows and outflows related to pensions are further discussed
in Note 13.
57
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position or Fund
Balances - Continued
10. Pensions/Net Pension Liability
The County participates in both the Florida Retirement System (FRS), which operates a defined benefit
and compensation plan, and the Health Insurance Subsidy Program (HIS), which is a defined benefit
plan. For purposes of measuring the net pension liability, deferred outflows and inflows of resources
related to pensions, pension expense, and fiduciary net position are determined on the same basis as the
FRS. Benefit payments (including refunds of employee contributions) are recognized when due and
payable in accordance with the benefit terms. Investments are reported at fair value.
The net pension liability represents the County's proportionate share of the net pension liability of the
cost-sharing pension plans in which it participates. This proportionate amount represents a share of the
present value of projected benefit payments to be provided through the cost-sharing pension plan to
current active and inactive employees. The benefit payments are attributable to those employees past
periods of service, less the amount of the cost-sharing pension plans' fiduciary net position. See Note
13 for additional information.
11. Change in Accounting Principles/New Accounting Pronouncement
The County implemented Governmental Accounting Standards Board (GASB) Statement No. 72, Fair
Value Measurement and Application. This statement addressed accounting and financial reporting
issues related to fair value measurements. It also provided guidance for applying fair value to certain
investments and disclosures related to all fair value measurements.
12. Unearned Revenues
Unearned revenues represent revenues, which are available but unearned. At September 30, 2016, the
total amount of unearned revenues reported on the statement of net position for the governmental
activities is $618,578 and for the business -type activities is $38,309.
58
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position or Fund
Balances - Continued
13. 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 compensated absences amounts for governmental funds are maintained separately and
represent a reconciling item between the fund and government -wide presentations.
14. Obligation for Bond Arbitrage Rebate
Pursuant to Section 148(0 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, 2016.
15. 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.
16. 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 over the remaining life of the bonds. For financial
reporting, unamortized bond discounts and premiums are netted against the applicable long-term debt.
17. Capital Contributions
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 Net Position in
accordance with GASB Statement 33. Capital contributions for the governmental funds are reported on
the Statement of Activities in accordance with GASB Statement 34 and represent contributions of
capital assets from developers and state agencies.
59
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 2 - 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 Florida Department of Revenue and the Florida Clerks of Court Operations Corporation, a proposed
operating budget for the following fiscal year. 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. 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. Unexpected ongoing project
costs may be appropriated in the new fiscal year through a budget amendment.
60
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 3 - CASH AND INVESTMENTS
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, 2016, the carrying amount of the primary government's deposits, including
$10,684,084 in the Agency Fund, was $139,739,705 and the bank balance was S143,109,868. 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 depositories to the State Treasurer, in
accordance with Chapter 280, Florida Statutes also known as the Florida Security for Public Deposits
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. On February 2, 2016, the Board of County Commissioners updated its cash and
investment policy to increase the limit on certificates of deposit from $6.0 million to $6.5 million.
B. Accrued Interest
Interest earnings on U.S. Treasury Notes and government agency bonds are recorded in the cash and
investment pools and then allocated to each fund based on each fund's average monthly balance. As of
September 30, 2016, accrued interest for the County's portfolio totaled $249,411. The remaining
accrued interest is reflected in utilities and road paving assessments.
61
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 3 - CASH AND INVESTMENTS - Continued
C. Investments
As of September 30, 2016,.the County had the following investments:
Investment Type
Fixed Rate Debt Instruments:
U.S. Treasuries
U.S. Agencies:***
Federal Farm Credit Bureau
Federal Home Loan Bank
Federal Home Loan Mortgage
Federal National Mortgage Assoc.
Other Market Rate Investments:
Florida Local Government
Investment Trust Fund
W&S Sinking Fund Reserve:
U.S. Treasuries
Total Fair Value
Fair Value
Weighted
Average
Maturity
In Years
Portfolio Credit
Percentage Risks*
$ 82,039,092 0.87 40.99 % N/A
13,988,773 1.63
26,640,150 1.16
40,952,383 0.98
19,964,070 0.53
12,467,718 0.08
4,107,392
$ 200,159,578
Weighted Average Maturity of Investments
6.99 AA+
13.31 AA+
20.46 AA+
9.97 AA+
AAAf and
6.23 S-1**
0.96 2.05 N/A
0.90
100 %
* Ratings based upon Standard and Poor's
** AAAf credit quality, S-1 Market Volatility
*** The weighted calculation considers the investments are carried until full maturity
(i.e. call dates are not considered).
Fair Value Measurement
The County categorizes its fair value measurements within the fair value hierarchy established by
generally accepted accounting principles. The hierarchy is based on the valuation inputs used to
measure the fair value of assets, as determined by the Board's investment advisors. Level 1 inputs are
quoted prices in active markets for identical assets; Level 2 inputs are significant other observable
inputs; Level 3 inputs are significant unobservable inputs.
62
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 3 - CASH AND INVESTMENTS - Continued
C. Investments - Continued
The County had the following recurring fair value measurements as of September 30, 2016:.
U.S. Treasuries
U.S. Agencies
FLGIT
Total Investments
Interest Rate Risk
Level 1
Level 2 Level 3 Total
86,146,484 $ $ 86,146,484
101,545,376 - 101,545,376
12,467,718- 12,467,718
200,159,578 $ - $ 200,159,578
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 of 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 and Clerk of Circuit Court and
Comptroller (Clerk) follow this policy. The Tax Collector's policy is to limit maturities to 24 months or
less. The Clerk's policy is to limit maturities to three years or less and maintain at least 50% of the
portfolio in readily available funds.
Credit Risk
Florida Statutes Section 218.415 limit investments to the following:
1. Direct obligations of the United States Treasury;
2. Florida PRIME (formerly known as Fund A);
3. Florida Local Government Investment Trust Funds;
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.
63
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 3 - CASH AND INVESTMENTS - Continued
C. Investments - Continued
Concentration Risk
The Indian River County Board of County Commissioners, the Clerk of the Circuit Court and
Comptroller, and the Tax Collector follow their own investment policies. The policies have established
asset allocation and issuer limits to reduce concentration of credit risk. Their investments are stated at
fair value.
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 (CD) and no more than $6.5
million of the portfolio may be placed in certificates of deposit with any one financial institution. No
more than 10% of the portfolio may be placed in any one money market fund, mutual fund, or
intergovernmental investment pool.
The Tax Collector's cash and investment policy limits portfolio composition to the following maximum
guidelines:
Local Government Surplus Funds Trust Fund 50%
Florida Trust Day to Day Fund 50%
Florida Cooperative Liquid Assets Securities System 95%
Direct Obligations of the U.S. Government 25%
Money Market, CD's, and Savings Accounts 95%
Securities & Exchange Commission Money Funds 25%
Bank Super NOW Accounts 95%
Bank Repo Agreements 50%
United States Government Agencies 25%
The Clerk's cash and investment policy limits portfolio composition to no more than 10% or $1 million
in certificates of deposit with a qualified public depository with any one financial institution. The
Clerk's cash and investment policy was updated in April 2014 to limit no more than 40% of the
portfolio in any money market fund or intergovernmental investment pool.
64
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 3 - CASH AND INVESTMENTS - Continued
C. Investments - Continued
Custodial Credit Risk
The Board'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 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, 2016, the
County's investment portfolio in U.S. Treasuries, U.S. Agencies, and money market funds, was held by
The Bank of New York/Mellon. Additional investments include the Florida Local Government
Investment Trust which was held by the Bank of New York/Mellon.
D. OPEB Trust Investments
Funds are held in the name of the Indian River County OPEB Trust (OPEB Trust), an irrevocable trust,
by a third party custodian, Bank of New York/Mellon. The contribution for the year ended September
30, 2016 was $12,096,411. Cash balance in the Trust at September 30, 2016 was $3,001,455. The
investments are reported at fair value based upon market -close price on the last business day of each
month.
The County approved a separate investment policy for the OPEB Trust assets on February 3, 2009 (last
amended on November 5, 2013). The County adopted a broadly diversified investment portfolio
composition consisting of equity, debt, and cash. Asset allocations are divided between short-term and
long-term investments. Short-term asset allocations include cash and investments with maturities of
180 days or less. Long-term asset allocations range from 0-60% for equities, 0-60% for fixed income
securities, and 0-100% for cash.
65
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 3 - CASH AND INVESTMENTS - Continued
D.
OPEB Trust Investments - Continued
As of September 30, 2016, the OPEB Trust had the following investments:
Investment Type
Fair Value
Weighted
Average
Maturity Portfolio
in Years Percentage
Vanguard 500 Index
Vanguard All World Ex -US
Vanguard Mid Cap Index
Vanguard Small Cap Index
Vanguard Short -Term Treasury
Vanguard Intermediate Treasury
Vanguard Prime Money Market
Vanguard Federal Money Market
Total Fair Value
5,086,893
4,517,800
1,124,120
560,448
6,734,605
2,243,094
2,028,784
206,111
$ 22,501,855
N/A
N/A
N/A
N/A
2.30
5.60
0.14
0.15
22.60 %
20.08
4.99
2.49
29.93
9.97
9.02
0.92
100 %
The County has the following recurring fair value measurements for investments in the OPEB Trust as
of September 30, 2016:
Index funds
U.S. government securities funds
Money market fund
Total investments
Level 1
$ 11,289,261 $
9,183,810
2,028,784
evel 2
Level 3
Total
11,289,261
9,183,810
2,028,784
$ 22,501,855 $
22,501,855
NOTE 4 - 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 2015-2016 fiscal year were levied in
October 2015. 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.
66
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 5 - CAPITAL ASSETS
A. Governmental Activities
Primary Government
Governmental activities:
Capital assets, not being depreciated:
Land
Construction in progress
Right-of-way
Intangibles
Infrastructure
Total capital assets, not being depreciated
Capital assets, being depreciated:
Buildings and improvements
Equipment
Intangibles
Infrastructure
Total capital assets, being depreciated
Less accumulated depreciation for:
Buildings and improvements
Equipment
Intangibles
Infrastructure
Total accumulated depreciation
Total capital assets, being depreciated, net
Governmental activities capital assets, net
Beginning
Balance
Additions
Deletions
133,663,011$
50,343,335
57,399,036
1,082,703
3,575,067
113,867$ -$
22,517,040 (49,151,965)
654,838 (409,647)
Ending
Balance
133,776,878
23,708,410
57,644,227
1,082,703
3,575,067
246,063,152 23,285,745 (49,561,612)
219,787,285
212,836,828 18,003,114 (958,576)
62,040,751 7,154,307 (3,194,629)
4,269,013 742,434 (28,833)
324,690,914 29,933,496 (43,281)
229,881,366
66,000,429
4,982,614
354,581,129
603,837,506 55,833,351 (4,225,319)
655,445,538
(65,052,020) (7,420,022) 690,615
(48,204,969) (4,478,671) 3,167,853
(2,975,456) (415,849) 28,833
(183,218,269) (8,134,150) 43,281
(71,781,427)
(49,515,787)
(3,362,472)
(191,309,138)
(299,450,714) (20,448,692) 3,930,582
(315,968,824)
304,386,792 35,384,659 (294,737)
339,476,714
550,449,944 $ 58,670,404 $ (49,856,349) $ 559,263,999
67
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 5 - CAPITAL ASSETS — Continued
A. Governmental Activities - Continued
Depreciation expense, which includes amortization expense on intangible assets, was charged to the
functions/programs of the primary government's governmental activities as follows:
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
4,213,779
4,381,845
626,080
6,918,022
149
113,360
3,739,170
285,967
170,320
20,448,692
In accordance with GASB Statement 42 Accounting and Financial Reporting for Impairment of Capital
Assets and for Insurance Recoveries, the County wrote down the value of the County administration
buildings A and B in the amount of $1,372,649. This impairment was caused by water intrusion
damage to the roofs. The impairment amount is included as a general government expense on the
Statement of Activities. The County received a total of $1,200,000 from the general and subcontractors
of the County administration buildings. These funds were deposited into the Optional Sales Tax Fund.
68
NOTE 5 - CAPITAL ASSETS —
B. Business -type Activities
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2016
Continued
Primary Government
Business -type activities:
Capital assets, not being depreciated:
Land, improvements to land
Intangibles
Construction in progress
Total capital assets, not being depreciated
Capital assets, being depreciated:
Buildings, distribution systems, & improvements
Intangibles
Equipment
Total capital assets, being depreciated
Less accumulated depreciation for:
Buildings, distribution systems, & improvements
Intangibles
Equipment
Total accumulated depreciation
Total capital assets, being depreciated, net
Business -type activities capital assets, net
Beginning
Balance
Additions
Deletions
Ending
Balance
$ 27,492,902 $
1,661,013
1,855,941
-$
89,825
2,511,181
-$
(2,062,143)
27,492,902
1,750,838
2,304,979
31,009,856
2,601,006
(2,062,143)
31,548,719
444,277,174 4,027,192
1,147,704 76,511
15,857,628 1,596,743
461,282,506 5,700,446
(23 8,257,219)
(764,491)
(13,290,830)
(14,707,718)
(119,691)
(823,417)
(193,174)
925,550
0,118,724)
140,366
894,477
448,111,192
1,224,215
16,528,821
465,864,228
(252,824,571)
(884,182)
(13,219,770)
(252,312,540) (15,650,826)
1,034,843
(266,928,523)
208,969,966 (9,950,380)
(83,881)
198,935,705
$ 239,979,822 $
(7,349,374) $ (2,146,024) $
230,484,424
Depreciation expense, which includes amortization expense on intangible assets, was charged to the
functions/programs of the primary government's business -type activities as follows:
Solid Waste Disposal District
Golf Course
County Utilities
County Building
Total depreciation expense — business -type activities
69
$ 1,075,403
152,480
14,384,481
38,462
$ 15,650,826
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 6 - RESTRICTED CASH AND INVESTMENTS
Various bond covenants, resolutions, and state regulations require that the County restrict cash and
investments within the business -type activities. Restricted cash and investments are as follows:
Sinking funds
Renewal and replacement
Customer deposits
Capital construction
Closure and maintenance costs
Total
Primary Government
Solid Waste
Disposal
District
3,152,731
133,626
13,009,736
$ 16,296,093
County
Utilities
$ 4,438,664
3,485,928
3,048,622
24,755,645
35,728,859
Total
$ 4,438,664
6,638,659
3,182,248
24,755,645
13,009,736
S 52,024,952
Cash totaling $5,687,973 is reported as restricted on the Statement of Net Position for governmental
activities. These funds are restricted for current liabilities such as retainage payable and the current year
portion of bonds and notes payable.
70
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 7 - INTERFUND BALANCES
Interfund balances at September 30, 2016, consisted of the following:
Receivable Fund Payable Fund Amount
General Fund
General Fund
Nonmajor governmental funds
Golf Course Enterprise Fund
13,000
365,414
378,414
In September 2014, the General Fund loaned $630,000 to the Golf Course Fund for a new irrigation
system. In January 2016, the General Fund loaned $254,500 to the Golf Course Fund to purchase new
golf carts. In September 2016, the General Fund loaned the Golf Course Fund $90,000 as a short-term
cash loan to be repaid within the next twelve months. The amount reported as due from the Golf Course
Fund is the current portion of the scheduled payments due to the General Fund in fiscal year 2017. The
remaining amount due from the Golf Course Fund is reported as an interfund advance. The amounts
due from the nonmajor governmental funds represent short-term cash loans that will be repaid within
the next twelve months.
Receivable Fund Payable Fund
Major governmental funds:
Emergency Services District Fund
Optional Sales Tax Fund
Major enterprise fund:
Solid Waste Disposal District Fund
Internal service fund:
Self Insurance Fund
Nonmajor governmental funds:
Land Acquisition Bonds Fund
Street Lighting Districts Fund
Clerk Special Revenue Fund
Vero Lake Estates Fund
East Gifford Stormwater Fund
Total nonmajor governmental funds
General Fund
General Fund
Amount
$ 339,506
70,718
$ 410,224
General Fund $ 138,649
General Fund $ 349,437
General Fund
General Fund
General Fund
General Fund
General Fund
$ 62,050
3,409
32,338
3,091.
13
$ 100,901
Total $ 999,211
Amounts due from the General Fund represent excess fees and payments of the constitutional officers
remitted to various funds subsequent to September 30, 2016.
71.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 7 - INTERFUND BALANCES - Continued
Interfund advances at September 30, 2016, consisted of the following:
Receivable Fund Payable Fund Amount
General Fund Golf Course Fund $ 150,925
This amount is considered a long-term advance between major funds expected to be paid in fiscal years
2018, 2019 and 2020. This amount has been presented as nonspendable on the General Fund balance
sheet.
NOTE 8 - INTERFUND TRANSFERS
Interfund transfers for the year ended September 30, 2016, consisted of the following:
Transfers In:
Transfers Out:
Nonmajor County Internal
General Transportation Governmental Utilities Service
Fund Fund Funds Fund Funds
Total
General Fund
Impact Fees Fund
Secondary Roads Construction Fund
Transportation Fund
Emergency Services District Fund
Optional Sales Tax Fund
Nonmajor Governmental Funds
Solid Waste Disposal District
Golf Course Fund
County Utilities Fund
County Building Fund
$ $ 9,199,769 $ 126,410 $ $ 3,401,741 $ 12,727,920
- - 180,112 6,369 186,481
661,897 19,108 681,005
82,667 821,176 903,843
491,249 - - - 630,573 1,121,822
541,120 683,796 - 1,224,916
310,186 - 136,634 - 82,799 529,619
63,694 63,694
19,108 19,108
751,592 (a) 751,592
140,127 140,127
Total $ 1,342,555 $ 9,199,769 $ 1,788,849 $ 82,667 $ 5,936,287 $ 18,350,127
(a) Nets to $668,925 reported as Transfers for the Utilities Fund
72
(a)
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 8 - INTERFUND TRANSFERS - Continued
Transfers are used for the following purposes: 1) use unrestricted general fund revenues to finance
transportation activities which are accounted for in a special revenue fund, 2) use unrestricted general
fund revenues for beach restoration activities which must be accounted for in another fund, 3) use
unrestricted general fund revenues to offset a portion of salaries and benefits expenses for an employee
accounted for in the health insurance fund, 4) use secondary road construction fund revenues to offset
portions of a road millings and bus transfer site projects, 5) use unrestricted stormwater revenues to
offset Egret Marsh employee costs accounted for in the utilities fund, 6) use transportation fund
revenues to offset vehicle maintenance costs accounted for in the fleet internal service fund, 7) to use
capital project fund revenues for improvements to the Historic Dodgertown facility and County jail, 8)
provide matching funds for grants, 9) move revenues from the fund that state law requires to collect
them to the fund that state law requires to expend them, and 10) use governmental and proprietary fund
revenues to offset an additional contribution to the OPEB trust made by the self insurance internal
service fund.
NOTE 9 — ACCOUNTS PAYABLE
Payables
Payables at September 30, 2016,.were as follows:
Governmental Activities:
General
Impact Fees
Secondary Roads Construction
Transportation
Emergency Services
Optional Sales Tax
Other governmental
Total Governmental Activities
Business -type Activities:
Payable from current assets:
Solid Waste
Golf Course
Utilities
Building
Payable from restricted assets:
Utilities
Total Business -type Activities
Vendors
Salaries and
Benefits
1,906,640
21,395
1,365,163
356,317
160,287
759,981
729,216
1,434,741
3,552
9,361
293,844
822,708
119,281
5,298,999 $
Total
Payables
$ 3,341,381.
24,947
1,374,524
650,161
982,995
759,981
848,497
2,683,487 $ 7,982,486
1,247,370 $
93,025
1,563,074
102,140
22,997 $ 1,270,367
18,970 111,995
283,463 1,846,537
61,642 163,782
25,706 25,706
3,031,315 $ 387,072 $ 3,418,387
Included in salaries and benefits payable is a liability to the Florida Retirement System (FRS) for
pension contributions due for the month of September 2016. The amounts due to FRS at September 30,
2016 are $196,826 for governmental activities and $26,487 for business -type activities. Payments to
the FRS are made by the fifth working day of the following month. The County has not engaged in any
short-term debt activity during fiscal year 2016 other than that listed in Note 8.
73
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 9 - ACCOUNTS PAYABLE - Continued
Due To Other Governments — Governmental Activities
On August 21, 2012, the County approved a 5 -year payment plan agreement with the State of Florida to
pay back $790,434 in disputed Medicaid billings. Monthly payments began on October 5, 2012. The
County recorded the repayment agreement as a liability, Due to Other Governments, in the government -
wide Statement of Net Position; and at September 30, 2016, the amount due to the State of Florida is
$1.58,087.
NOTE 10 - LONG-TERM LIABILITIES
A. Changes in Long -Term Liabilities
Long-term liability activity for the year ended September 30, 2016,.was as follows:
Due
Beginning Ending Within
Balance Additions Retirements Balance One Year
Governmental Activities:
Bonds payable:
Limited General Obligation Bonds - $ 3,545,000 $ - $ 3,545,000 $ - $ -
Series 2006
Spring Training Facility Revenue Bonds -
Series 2001 7,230,000 - 495,000 6,735,000 520,000
Total bonds payable 10,775,000 - 4,040,000 6,735,000 520,000
Notes payable:
Limited General Obligation Refunding 20,049,000 - 343,000 19,706,000 4,053,000
Other liabilities:
Pollution remediation 2,551,200 - 106,100 2,445,100 99,233
Claims payable 8,177,520 17,953,550 17,618,550 8,512,520 3,624,891
Due to other governments -Medicaid 316,173 - 158,086 158,087 158,087
Compensated absences 11,100,514 7,366,192 7,475,724 10,990,982 6,321,654
Total notes payable and other liabilities 42,194,407 25,319,742 25,701,460 41,812,689 14,256,865
Governmental activities long-term liabilities $ 52,969,407 $ 25,319,742 $ 29,741,460 $ 48,547,689 $ 14,776,865
Business -type Activities:
Bonds payable:
Water & Sewer Refunding Revenue Bonds - $ 19,525,000 $ $ 1,905,000 $ 17,620,000 $ 2,000,000
Series 2009
Add: Unamortized bonds premium 1,556,234 - 175,350 1,380,884
Total bonds payable 21,081,234 - 2,080,350 19,000,884 2,000,000
Notes payable:
Water & Sewer Revenue Refunding 7,171,000 - 973,000 6,198,000 992,000
Other liabilities:
Landfill closure and maintenance costs 12,009,736 1,000,000 13,009,736
Compensated absences 891,722 807,663 787,692 911,693 718,153
Total notes payable and other liabilities 20,072,458 1,807,663 1,760,692 20,119,429 1,710,153
Business -type activities long-term liabilities $ 41,153,692 $ 1,807,663 $ 3,841,042 $ 39,120,313 $ 3,710,153
74
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 10 - LONG-TERM LIABILITIES - Continued
B.
Primary Government
Governmental Activities
Annual Debt Service Payments - Gove
ental. Activities
The annual debt service payments for bonds outstanding at September 30, 2016, are as follows:
Fiscal Year
Ending
September 30
Spring Training Facility
Revenue Bonds
Series 2001
Limited General
Obligation Refunding Note
Series 2015
2017
2018
2019
2020
2021
2022-2026
2027-2031
Total
Less:
Current portion
Total
Principal
520,000
550,000
585,000
615,000
650,000
1,695,000
2,120,000
Interest
$ 344,050
316,750
287,875
257,163
224,875
793,000
324,750
6,735,000 2,548,463
520,000
Principal Interest
$ 4,053,000 $ 327,119
4,158,000 259,840
4,227,000 190,817
4,298,000 120,649
2,970,000 49,302
19,706,000 947,727
4,053,000
6,215,000 $ 2,548,463 $ 15,653,000
947,727
Spring Training Facility Revenue Bonds
Purpose - On August 15, 2001, the County 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 currently known as "Historic 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.
75
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 10 - LONG-TERM LIABILITIES - Continued
B. Primary Government - Continued
Spring Training Facility Revenue Bonds - Continued
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". These revenue streams are
pledged for the remaining term of the bonds and are listed on Schedule 25 in the statistical section.
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.
The current principal and interest payments of $852,044 represent 9.59 percent of total pledged
revenues. All three revenue sources totaled $8,886,139 for the current fiscal year. The County applied
100% of the state subsidy, 68% of the Fourth -Cent Tourist Tax, and none of the Half -Cent Sales Tax to
the debt service payments. The total principal and interest remaining to be paid on the bonds is
$9,283,463.
Bonds Issued - At September 30, 2016, Spring Training Facility Revenue Bonds consisted of the
following:
Description
Interest Outstanding at
Rates and September 30,
Date Maturity Issue 2016
Spring Training Facility Revenue
Bonds, Series 2001
3.30%-5.25%
4/1 and 10/1 2031 $ 16,810,000 $ 6,735,000
76
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 10 - LONG-TERM LIABILITIES - Continued
B. Primary Government - Continued
Spring Training Facility Revenue Bonds - Continued
Remaining Mandatory Redemption - The Series 2001 Tell,' 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, 2017
Date Principal Amount
April 1, 2017 $ 520,000
Term Bonds due April 1, 2021
Date Principal Amount
April 1, 2018 $ 550,000
April 1, 2019 585,000
April 1, 2020 615,000
April 1, 2021 650,000
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
77
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 10 - LONG-TERM LIABILITIES - Continued
B. Primary Government - Continued
Limited General Obligation Refunding Note, Series 2015
Purpose - On April 7, 2015, the County voted to redeem $19,075,000 of outstanding 2006 Limited
General Obligation Bonds with a 7 year note from Regions Capital Advantage, Inc. The refunding
ultimately saved the County $1.2 million over the 7 year remaining life of the bonds.
The aggregate difference in debt service between the 2015 note ($28,959,008) and the 2006 bonds
($30,315,331) was $1,356,323. These amounts include the 7/1/2015 and 7/1/2016 principal and interest
payments which were excluded in the refunding. The net economic gain was $636,694 and is
amortized over the life (72 months) of the new debt. The unamortized balance of $481,942 is reflected
as a deferred outflow of resources on the Statement of Net Position. This refinancing lowered the
annual debt service by $150,000.
Pledge of revenues — The principal and interest on the bonds are payable from the sole source of ad
valorem taxes not exceeding 1/2 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. The total tax revenue
received was $4,594,381 of which 100% is pledged for payment of this note and the 2006 bond. Total
principal and interest paid on this note was $675,813 and represents 15% of total pledged revenue.
Maturity and Interest Rate - Interest payments are made semiannually beginning July 1, 2015 through
July 1, 2021. Annual principal payments begin July 1, 2015.and end July 1, 2021. The interest rate is
fixed at 1.66%. The note may be paid early without a prepayment penalty.
78
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 10 - LONG-TERM LIABILITIES - Continued
B. Primary Government - Continued
Business -type Activities
Annual Debt Service Payments — Business -type Activities
The annual debt service payments for bonds outstanding at September
Fiscal Year
Ending
September 30
2017
2018
2019
2020
2021
2022-2024
Total
Less:
Current portion
Add:
Unamortized
bond premium
Total
Water and Sewer
Revenue Refunding
Note Series 2015
30, 2016 are as follows:
Water and Sewer
Revenue Refunding
Bonds Series 2009
Principal
Interest
992,000
1,007,000
1,025,000
1,042,000
1,058,000
1,074,000
6,198,000
992,000
$ 102,267
85,899
69,284
52,371
35,178
17,721
362,720
Principal
$ 2,000,000
2,100,000
2,205,000
2,315,000
2,430,000
6,570,000
Interest
17,620,000
2,000,000
1,380,884
$ 881,000
781,000
676,000
565,750
450,000
596,500
3,950,250
$ 5,206,000
362,720
17,000,884
3,950,250
79
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 10 - LONG-TERM LIABILITIES - Continued
B. Primary Government - Continued
Water and Sewer Revenue Refunding Note, Series 2015
Purpose - On August 18, 2015, the County voted to early call all of the outstanding 2005 Water and
Sewer Revenue Refunding Bonds. The County paid down 50% of the debt ($7,100,000) with cash and
refinanced the remaining 50% ($7,105,000) with a 7 year note. The total amount borrowed included
the cost of issuance and accrued interest totaling $66,000, for a grand total of $7,171,000.
The aggregate difference in debt service between the Series 2005 bonds ($18,866,875) and the Series
2015 note ($7,653,356), cash contribution and September 1, 2016 principal and interest payment
($9,162,642) is $2,050,877. The net economic gain was $583,991; which included the refinancing,
accrued interest, and cash contribution. This lowered the annual debt service by $1.2 million. The net
economic gain is amortized over the 7 year life of the note. The unamortized balance of the deferred
amount on the refunding at September 30, 2016 is $493,611 and is reflected as a deferred outflow of
resources on the Statement of Net Position.
Pledge of Revenues — The note is collateralized, for the remaining term of the note, by a pledge of all
net revenues derived from the operation of the system, certain surcharges, and special assessments.
Annual principal and interest payments of $1,092,636 represent approximately eight percent of net
revenues of $13,258,661 of the utility system. The total principal and interest remaining to be paid on
the 2015 note is $6,560,720. Refer to Schedule 14 in the statistical section for further detail.
Rate Covenant — Net revenues shall be sufficient to pay 100% of reserve and 120% of current year
principal and interest requirements.
Maturity and Interest Rate - Interest payments are made semiannually beginning September 1, 2016
through September 1, 2022. Annual principal payments begin September 1, 2016 and end September 1,
2022. The interest rate is fixed at 1.65%. Note may be paid early without any prepayment penalty.
Water and Sewer Revenue Refunding Bonds, Series 2009
Purpose - The Series 2009 bonds were issued to refund and redeem on September 11, 2009,
$28,270,000 of the County's outstanding Water and Sewer Revenue Bonds, Series 1993A. The
refunding excluded debt service payments due September 1, 2010 and 2011, which were consequently
paid at their respective maturity date.
The aggregate difference in debt service between the Series 1993A ($80,434,415) and Series 2009
($78,755,772) is $1,678,643. The net economic gain, which lowered average annual debt service by
$126,000, was $1,368,427 and is amortized over the life of the bonds. The unamortized balance of the
deferred amount on the refunding at September 30, 2016 is $718,424 and is reflected as a deferred
outflow of resources on the Statement of Net Position.
80
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 10 - LONG-TERM LIABILITIES - Continued
B. Primary Government - Continued
Water and Sewer Revenue Refunding Bonds, Series 2009 - Continued
Pledge of Revenues — The revenue bonds are collateralized, for the remaining term of the bonds, by a
pledge of all net revenues derived from the operation of the system, certain surcharges, and special
assessments. The principal and interest payments of $2,881,000 represent approximately twenty-two
percent of net revenues of $13,258,661 of the utility system. Refer to Schedule 14 in the statistical
section for further detail. The total principal and interest remaining to be paid on the bonds is
$21,570,250.
Rate Covenant — Net revenues shall be sufficient to pay 100% of the reserve account requirement and
120% of the current year's principal and interest payment.
Bonds Issued - At September 30, 2016,.the revenue bonds consisted of the following:
Description
Interest Outstanding at
Rates and September 30,
Date Maturity Issue 2016
Water and Sewer 4-5%
Revenue Refunding Bonds, 3/1 and 9/1 2024 $ 26,370,000 $ 17,620,000
Series 2009
Optional Redemption - The Series 2009 bonds maturing on or prior to September 1, 2019, are not
subject to redemption prior to their respective dates of maturity. The Series 2009 bonds stated to mature
after September 1, 2019, are subject to redemption at the option of the County in whole or, from time to
time, in part on September 1, 2019, at the redemption price of the principal amount to be redeemed,
plus accrued interest to the date of redemption.
C. Compensated Absences
For the governmental activities compensated absences liability, the General Fund normally liquidates
74 percent, and the Transportation and Emergency Services District funds normally liquidate 6 percent
and 17 percent, respectively. The remaining 3 percent is liquidated by other governmental and internal
service funds.
81.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 11 - 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 annually obtains updated and revised estimates of total future closure and post -closure costs
from its consulting engineers. The SWDD recognizes the expenses associated with the final closure and
post -closure maintenance of the landfill areas over the active life of those areas. 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 are approximately $2.9 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 engineers' report) of both closure and post -
closure care.
Required closure and post -closure sub -accounts:
Capacity Estimated
Used Closing
Amount
Closure Costs
Class I - Segments I and II 33% 2020 $ 9,301,947
Construction and Demolition -
Cell I 91% 2026 1,174,866
Post -closure Costs
Class I - Segments I and II N/A N/A
Construction and Demolition -
Cell I N/A N/A
Total account balance at 9/30/16:
2,338,435
194,488
13,009,736
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, deflation, 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. The SWDD is making annual deposits to a
closure and post -closure cost escrow account to provide for the financing of future closure -related
expenses. At September 30, 2016, $12,467,718 was on deposit at the Florida Local Government
Investment Trust and $542,018 was on deposit in the County's Operating account.
82
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 11- PROVISION FOR CLOSURE COSTS - Continued
A summary of changes in the landfill closure liability account is as follows:
Balance Balance
10/1/2015 Deposits Withdrawals 09/30/16
Closure and long-term care costs $ 12,009,736 $ 1,000,000 $ - $ 13,009,736
Of the $13,009,736 liability for closure and long-term care costs, management estimates that no funds
will be due and payable within one year.
NOTE 12 — POLLUTION REMEDIATION
In accordance with GASB Statement 49, Accounting and Financial Reporting for Pollution
Remediation Obligations, a consultant evaluated two sites to assess pollution remediation liabilities.
The consultant calculated for each site an expected value (EV) estimate for pollution remediation based
on three plausible mitigation scenarios. An obligating event occurred at each of the following two sites
requiring the County (using the consultant's services) to attempt to accrue a liability for pollution
remediation. The liability totaled $2,445,100 at September 30, 2016 for the two sites. The pollution
remediation obligation is an estimate and subject to changes resulting from price increases and
reductions, technology, and changes in applicable laws or regulations. There are no estimated
recoveries that would reduce the liability.
Governmental Activities:
1) South Gifford Road closed landfill — The nature of the pollution remediation obligation is
chlorinated solvent contamination. The consultant will conduct monitoring, bioremediation and
reporting with the FDEP. The amount of the estimated year end liability is $2,440,000 and will
be paid from the Optional Sales Tax Fund.
2) Old Administration Building — The nature of the pollution remediation obligation is closed
underground storage tank contamination. The consultant will conduct monitoring and reporting
with the FDEP. The amount of the estimated year end liability is $5,100 and will be paid from
the General Fund.
Total Governmental Activities liability: $2,445,100
83
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 13 - RETIREMENT PLAN - Florida Retirement System (FRS)
General Information: All of the County's employees participate in the Florida Retirement System.
(FRS). As provided by Chapters 121 and 112, Florida Statutes, the FRS provides two cost sharing,
multiple -employer defined benefit plans administered by the Florida Department of Management
Services, Division of Retirement, including the FRS Pension Plan (Pension Plan) and the Retiree Health
Insurance Subsidy (HIS Plan). Under Section 121.4501, Florida Statutes, the FRS also provides a
defined contribution plan (Investment Plan) alternative to the FRS Pension Plan, which is administered
by the State Board of Administration (SBA). As a general rule, membership in the FRS is compulsory
for all employees working in a county, state university, community college, or a participating city or
special district within the State of Florida. The FRS provides retirement and disability benefits, annual
cost -of -living adjustments, and death benefits to plan members and beneficiaries. Benefits are
established by Chapter 121, Florida Statutes, and Chapter 60S, Florida Administrative Code.
Amendments to the law can be made only by an act of the Florida State Legislature.
The State of Florida annually issues a publicly available financial report that includes financial
statements and required supplementary information for the FRS. The latest available report may be
obtained by writing to the State of Florida Division of Retirement, Department of Management
Services, P.O. Box 9000, Tallahassee, Florida 32315-9000, or from the web site:
www.dms.myflorida.com/workforceoperations/retirement/publications.
Pension Plan
Plan Description: The Pension Plan is a cost-sharing multiple -employer defined benefit pension plan,
with a Deferred Retirement Option Program (DROP) for eligible employees.
Benefits Provided: Benefits under the Pension Plan are computed on the basis of age, average final
compensation, and service credit. For Pension Plan members enrolled before July 1, 2011, Regular
class members who retire at or after age 62 with at least six years of credited service or 30 years of
service regardless of age are entitled to a retirement benefit payable monthly for life, equal to 1.6% of
their final average compensation based on the five highest years of salary for each year of credited
service. Vested members with less than 30 years of service may retire before age 62 and receive
reduced retirement benefits.
Special Risk Administrative Support class members who retire at or after age 55 with at least six years
of credited service or 25 years of service regardless of age are entitled to a retirement benefit payable
monthly for life, equal to 1.6% of their final average compensation based on the five highest years of
salary, for each year of credited service.
Special Risk class members (sworn law enforcement officers, firefighters, and correctional officers)
who retire at or after age 55 with at least six years of credited service, or with 25 years of service
regardless of age, are entitled to a retirement benefit payable monthly for life equal to 3.0% of their
final average compensation based on the five highest years of salary for each year of credited service.
84
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 13 - RETIREMENT PLAN - Florida Retirement System (FRS) - Continued
Pension Plan - Continued
Senior Management Service class members who retire at or after age 62 with at least six years of
credited service or 30 years of service regardless of age are entitled to a retirement benefit payable
monthly for life, equal to 2.0% of their final average compensation based on the five highest years of
salary for each year of credited service. Elected Officers' class members who retire at or after age 62
with at least six years of credited service or 30 years of service regardless of age are entitled to a
retirement benefit payable monthly for life, equal to 3.0% (3.33% for judges and justices) of their final
average compensation based on the five highest years of salary for each year of credited service.
For Plan members enrolled on or after July 1, 2011, the vesting requirement is extended to eight years
of credited service for all these members and increasing normal retirement to age 65 or 33 years of
service regardless of age for Regular, Senior Management Service, and Elected Officers' class
members, and to age 60 or 30 years of service regardless of age for Special Risk and Special Risk
Administrative Support class members. Also, the final average compensation for all these members
will be based on the eight highest years of salary.
As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the Pension Plan
before July 1, 2011 and all service credit was accrued before July 1, 2011, the annual cost -of -living
adjustment is three percent per year. If the member is initially enrolled before July 1, 2011 and has
service credit on or after July 1, 2011, there is an individually calculated cost -of -living adjustment. The
annual cost -of -living adjustment is proportion of three percent determined by dividing the sum of the
pre -July 2011 service credit by the total service credit at retirement multiplied by three percent. Plan
members initially enrolled on or after July 1, 2011, will not have a cost -of -living adjustment after
retirement.
In addition to the above benefits, the DROP program allows eligible members to defer receipt of
monthly retirement benefit payments while continuing employment with a FRS employer for a period
not to exceed 60 months after electing to participate. Deferred monthly benefits are held in the FRS
Trust Fund and accrue interest. There are no required contributions by DROP participants.
Contributions: The State of Florida establishes contribution rates for participating employers and
employees in section 121.71 Florida Statutes. Effective July 1, 2011, the FRS became a contributory
plan for all members, except DROP participants, whereby members contribute 3% and employers pay a
rate based upon each member's employment class. Classes and rates in effect at July 1, 2016 were:
Regular class 7.52%, Special Risk 22.57%, Special Risk Administrative Support 28.06%, Senior
Management 21.77%, DROP 12.99%, and Elected Official class 42.47%. Included in these rates is a
health insurance subsidy of 1.66%. Employer contributions to the FRS are based on a percentage of
covered payroll that has been actuarially determined as an amount, when combined with the 3%
employee contributions, is expected to finance the cost of benefits earned by employees during the year
with an additional amount to finance any unfunded accrued liability.
85
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 13 - RETIREMENT PLAN - Florida Retirement System (FRS) - Continued
Pension Plan - Continued
The County's contribution to FRS under the Pension Plan for the year ended September 30, 2016, was
$8,660,907. Employee contributions for September 30, 2016 were $1,609,827. Both employer and
employee contributions were equal to 100% of the required contribution for each year.
Pension Liabilities, Pension Expense, and Deferred Outflow of Resources and Deferred Inflow of
Resources Related to Pension Plan: At September 30, 2016, the Division of Retirement calculated the
County's liability of $84,737,012 for the FRS plan for its proportionate share of the net pension
liability. The net pension liability was measured as of June 30, 2016, and the total pension liability
used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2016.
The County's proportion of the net pension liability was based on a projection of the County's long-
term share of contributions to the pension plan relative to the projected contributions of all participating
employers, actuarially determined. At September 30, 2016, the County's proportion share was .3356%
for the FRS pension plan. This was an increase of 0.0289% from its proportionate share measured as of
June 30, 2015.
For the year ended September 30, 2016, the County's calculated total increase of actuarially determined
pension expense was $6,611,454. In addition, the County reported deferred outflows of resources and
deferred inflows of resources related to pensions from the following sources:
Description
Differences between expected and
actual experience
Changes in assumptions
Net difference between projected and actual
earnings on pension plan investments
Changes in proportion and differences between
County contributions and proportionate share of
contributions
County contributions subsequent to the measure-
ment date
Total
Deferred Outflows Deferred Inflows
of Resources of Resources
6,488,118
5,126,336
21,903,485
788,958
4,922,390 3,770,334
2,443,713
$ 40,884,042 $ 4,559,292
86
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 13 - RETIREMENT PLAN - Florida Retirement System (FRS) - Continued
Pension Plan - Continued
The deferred outflows of resources related to the pension plan totaling $2,443,713 resulting from
County contributions subsequent to the measurement date, will be recognized as a reduction of the net
pension liability in the year ended September 30, 2017. Other amounts reported as deferred outflows of
resources and deferred inflows of resources related to pensions will be recognized in pension expense
as follows:
Fiscal Year Ending September 30:
2017.
2018
2019
2020
2021.
Thereafter
Total
Amount
Recognized
$ 4,675,583
4,675,583
13,518,534
9,215,642
1,355,241
440,454
33,881,037
Actuarial Assumptions: The total pension liability in the July 1, 2016.actuarial valuation was
determined using the following actuarial assumptions, applied to all periods included in the
measurement:
Valuation date:
Measurement date:
Discount rate:
Long-term expected rate of return:
Inflation:
Salary increase:
Mortality:
Actuarial cost method:
July 1, 2016
June 30, 2016
7.60%
7.60%, net of pension plan investment expense
2.60%
3.25%, including inflation
Generational RP -2000 with Projections Scale BB
Individual Entry Age
The actuarial assumptions that determined the total pension liability used in the July 1, 2016 valuation
were based on the results of an actuarial experience study for the period July 1, 2008 through June 30,
2013.
The actuarial assumptions for demographic and economic assumptions were adjusted to those used in
the previous valuation. Assumptions in the FRS actuarial study for funding purposes were also
adjusted. These changes were approved by the 2016 FRS Actuarial Assumptions Conferences. The
changes are explained as follows:
• The discount rate and long-term expected rate of return, net of investment expense were both
reduced since the prior actuarial valuation by 0.05 percent from 7.65 percent to 7.60 percent to
increase the likelihood that FRS will meet or exceed its assumed investment return in future
years.
87
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 13 - RETIREMENT PLAN - Florida Retirement System (FRS) - Continued
Pension Plan - Continued
• The mortality assumption applied to active members was updated to better anticipate expected
future experience.
Long-term Expected Rate of Return: The long-term expected rate of return on pension plan investments
are not based on historical returns, but instead are based on a forward-looking capital market economic
model. The allocation policy's description of each class was used to map the target allocation to the
asset classes shown below. Each asset class assumption is based upon a consistent set of underlying
assumptions and includes an adjustment for the inflation assumption. The target allocation and best
estimates of arithmetic and geometric real rates of return for each major asset class are summarized in
the following table:
Asset Class
Cash
Fixed Income
Global Equity
Real Estate (Property)
Private Equity
Strategic Investments
Total
Assumed inflation -mean.
Annual
Target Arithmetic
Allocation Return
1% 3.0%
18% 4.7%
53% 8.1%
10% 6.4%
6% 11.5%
12% 6.1%
100%
88
Compound
Annual
(Geometric)
Return
3.0%
4.6%
6.8%
5.8%
7.8%
5.6%
2.6%
Standard
Deviation
1.7%
4.6%
17.2%
12.0%
30.0%
11.1%
1.9%
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 13 - RETIREMENT PLAN - Florida Retirement System (FRS) - Continued
Pension Plan - Continued
Discount Rate for Pension Plan: The discount rate used to measure the total pension liability was
7.60%. The projection of cash flows used to determine the discount rate assumed that plan member
contributions will be made at the current contribution rate and that the County's contributions will be
made at statutorily required rates, actuarially determined. Based on those assumptions, the Pension
Plan's fiduciary net position was projected to be available to make all projected future benefit payments
of current active and inactive employees if future experience follows assumptions and the actuarially
determined contribution is contributed in full each year. Therefore, the discount rate for calculation of
the total pension liability is equal to the long-term expected rate of return.
Sensitivity of the County's Proportionate Share of the Net Position Liability to Changes in the Discount
Rate for the Pension Plan: The following presents the County's proportionate share of the NPL (net
pension liability) of the pension plan calculated using the discount rate of 7.60%. Also presented is
what the County's proportionate share of the FRS plan NPL would be if it were calculated using a
discount rate that is 1% lower or 1% higher than the current rate:
1% Current Discount
Decrease (6.60%) Rate (7.60%)
County's proportionate share of NPL $156,006,575 $84,737,012
1%
Increase (8.60%)
$25,414,512
Pension Plan Fiduciary Net Position: Detailed information regarding the Pension Plan's fiduciary net
position is available in the separately issued FRS Pension Plan and Other State -Administered Systems
Comprehensive Annual Financial Report. This report is available by writing to the State of Florida,
Division of Retirement, Department of Management Services, P.O. Box 9000, Tallahassee, Florida
32315-9000 or by email at rep@dms.myflorida.com, or by telephone toll free at (844) 377-1888 or
(850) 907-6500. This report identifies statements that were prepared in accordance with generally
accepted accounting principles, the measurement focus and basis of accounting, various investment
valuations, various pension plan benefits, assumptions used, and many other details.
89
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 13 - RETIREMENT PLAN - Continued
Retiree Health Insurance Subsidy (HIS) Program
Plan Description: The HIS Program is a cost-sharing, multiple -employer, defined benefit pension plan
established to provide a monthly subsidy payment to retired members of any state -administered
retirement system. It was established under Section 112.363, Florida Statutes. Benefits are not
guaranteed and are subject to annual legislative appropriation. In the event legislative appropriation or
available funds fail to provide full subsidy benefits to all participants, benefits may be reduced or
canceled. HIS is administered by the Florida Department of Management Services, Division of
Retirement.
Benefits Provided: For fiscal year ended September 30, 2016, eligible retirees and beneficiaries
received a monthly HIS payment of $5 for each year of creditable service completed. The payments are
at least $30 but not more than $150 per month. To be eligible to receive a HIS benefit, a retiree under a
state -administered retirement system must provide proof of health insurance coverage, which may
include Medicare.
Contributions: The HIS Program is funded by required contributions from FRS participating employers
as set by the Florida Legislature. Employer contributions are a percentage of gross compensation for all
active FRS members. For the fiscal year ended September 30, 2016,.the HIS contribution rate was
1.66%. There are no employee contributions required. The County contributed 100% of its statutorily
required contributions for the current and preceding three years. HIS contributions are deposited in a
separate trust fund from which payments are authorized. The County's contributions to the HIS
Program totaled $1,198,477 for the fiscal year ended September 30, 2016.
Pension Liabilities, Pension Expense, and Deferred Outflow of Resources and Deferred Inflow of
Resources Related to HIS Program: At September 30, 2016, the Division of Retirement calculated the
County's liability of $26,578,559 for its proportionate share of the HIS Program's net pension liability.
The net pension liability was measured as of June 30, 2016, and the total pension liability used to
calculate the net pension liability was determined by an actuarial valuation as of July 1, 2016. At
September 30, 2016, the County's proportion share was 0.2281% for the HIS Program. This was an
increase of 0.0049% from its proportionate share measured as of June 30, 2015.
90
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 13 - RETIREMENT PLAN - Continued
Retiree Health Insurance Subsidy (HIS) Program - Continued
For the year ended September 30, 2016,.the County recognized pension expense of $1,343,828. In
addition, the County reported deferred outflows of resources and deferred inflows of resources related
to pensions from the following sources:
Deferred Outflows Deferred Inflows
Description of Resources of Resources
Differences between expected and actual experience $ - $ 60,536
Changes in assumptions 4,170,851
Net difference between projected and actual
earnings on pension plan investments 13,439 -
Changes in proportion and differences between
County contributions and proportionate share of
contributions 789,358 531,012
County contributions subsequent to the measure-
ment date 316,322 -
Total $ 5,289,970 $ 591,548
The deferred outflows of resources related to HIS totaling 5316,322 resulting from County
contributions subsequent to the measurement date, will be recognized as a reduction of the net pension
liability in the year ended September 30, 2017. Other amounts reported as deferred outflows of
resources and deferred inflows of resources related to HIS Program will be recognized in pension
expense as follows:
Amount
Fiscal Year Ending September 30: Recognized
2017 $ 784,396
2018 784,396
2019 780,014
2020 780,014
2021 674,843
Thereafter 578,437
4,3 82,100
91
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 13 - RETIREMENT PLAN - Continued
Retiree Health Insurance Subsidy (HIS) Program - Continued
Actuarial Assumptions: The total pension liability for the HIS Program in the July 1, 2016 actuarial
valuation was determined using the following actuarial assumptions, applied to all periods included in
the measurement:
Valuation date:
Measurement date:
Discount rate:
Long-term expected rate of return:
Municipal bond rate:
Inflation:
Salary increase:
Mortality:
Actuarial cost method:
July 1, 2016
June 30, 2016
2.85%
N/A
2.85%
2.60%
3.25%, average, including inflation
Generational RP -2000 with. Projections Scale BB
Individual Entry Age
The actuarial assumptions that determined the total HIS pension liability used in the July 1, 2016
valuation were based on the results of an actuarial experience study for the period July 1, 2008 through
June 30, 2013.
Discount Rate for HIS Program: In general, the discount rate for calculating the total pension liability is
equal to the single rate equivalent to discounting at the long-term expected rate of return for benefit
payments prior to the projected depletion date. Because the HIS Program is essentially funded on a
pay-as-you-go basis, the depletion date is considered to be immediate. The single equivalent discount
rate is equal to the municipal bond rate selected by the plan sponsor. The Bond Buyer General.
Obligation 20 -Bond Municipal Bond Index was adopted as the applicable municipal bond index.
Long-term Expected Rate of Return: As stated above, the HIS program is essentially funded on a pay-
as-you-go basis. As such, there is no assumption for a long-term expected rate of return on a portfolio,
no assumptions for cash flows into and out of the pension plan, or assumed asset allocation.
92
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 13 - RETIREMENT PLAN - Continued
Retiree Health Insurance Subsidy (HIS) Program - Continued
Sensitivity of the County's Proportionate Share of the Net Position Liability to Changes in the Discount
Rate for the HIS Program: The following presents the County's proportionate share of the NPL (net
pension liability) of the HIS Program calculated using the discount rate of 2.85%. Also presented is
what the County's proportionate share of the HIS Program NPL would be if it were calculated using a
discount rate that is 1% lower or 1% higher than the current rate:
1% Current Discount 1%
Decrease (1.85%) Rate (2.85%) Increase (3.85%)
County's proportionate share of NPL $30,491,645 $26,578,559 $23,330,910
HIS Plan Fiduciary Net Position: Detailed information regarding the HIS Program's fiduciary net
position is available in the separately issued FRS Pension Plan and Other State -Administered Systems
Comprehensive Annual Financial Report. This report is available by writing to the State of Florida,
Division of Retirement, Department of Management Services, P.O. Box 9000, Tallahassee, Florida
32315-9000 or by email at rep@dms.myflorida.com, or by telephone toll free at (844) 377-1888 or
(850) 907-6500.
FRS Investment Plan
Plan Description: The County contributes to the Investment Plan, a defined contribution pension plan,
for its eligible employees electing to participate in the Investment Plan. The Investment Plan is
administered by the State Board of Administration (SBA), and is reported in the SBA's annual financial
statements and in the State of Florida Comprehensive Annual Financial Report. As provided in Section
121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu
of the FRS defined benefit plan. County employees already participating in DROP are not eligible to
participate in this program.
Benefits Provided: Service retirement benefits are based upon the value of the member's account upon
retirement. Employers and employee contributions, including amounts contributed to individual
member's accounts, are defined by law, but the ultimate benefit depends in part on the performance of
investment funds. Benefit terms, including contribution requirements, for the Investment Plan are
established and may be amended by the Florida Legislature.
93
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 13 - RETIREMENT PLAN - Continued
FRS Investment Plan - Continued
For all membership classes, employees are immediately vested in their own contributions and are
vested after one year of service for employer contributions and investment earnings. Nonvested
employer contributions are placed in a suspense account for up to five years. If the employee returns to
FRS -covered employment within the five year period, the employee will regain control over his/her
account. If the employee does not return within the five-year period, the employee will forfeit the
accumulated account balance. For fiscal year ended September 30, 2016, the information for the
amount of forfeitures was unavailable from the SBA; however, management believes that these
amounts, if any, would be immaterial to the County.
If an accumulated benefit obligation for service credit originally earned under the Pension Plan is
transferred to the Investment Plan, the member must have the years of service required for Pension Plan
vesting (including the service credit represented by the transferred funds) to be vested for these funds
and the earnings on the funds.
After termination and applying to receive benefits, the member may rollover vested funds to another
qualified plan, structure a periodic payment under the Investment Plan, receive a lump -sum distribution,
leave the funds invested for future distribution, or any combination of these options. Disability
coverage is provided; the member may either transfer the account balance to the FRS Pension Plan
when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS
Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement
income.
Contributions: Cost of administering the Investment Plan, including the FRS Financial Guidance
Program, are funded through an employer contribution of .04% of payroll and by forfeited benefits of
Investment Plan members. The Investment Plan is funded with the same employer and employee
contribution rates that are based on salary and membership class as the FRS defined benefit plan.
Contributions are directed to individual member accounts, and the individual members allocate
contributions and account balances to various approved investment choices.
Allocations to the investment member's accounts during the 2015-2016 fiscal year are based on a
percentage of gross compensation by class as follows: Regular class 6.30%, Special Risk class 14.00%,
Senior Management Service class 7.67%, and County Elected Officers' class 11.34%.
The County's Investment Plan contributions and pension expense totaled $1,461,734 for fiscal year
ended September 30, 2016. Employee contributions totaled $312,196 for the same period.
94
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 14 — OTHER POSTEMPLOYMENT BENEFITS PLAN (OPEB)
A. Plan Description
On. September 23, 2008, the Board of County Commissioners approved resolution number 2008-163,
establishing an irrevocable trust (OPEB Trust) to separately identify assets accumulated to pay OPEB
benefits for eligible retirees. The OPEB Trust includes the Board of County Commissioners and the
five constitutional officers (Clerk of the Circuit Court and Comptroller, Property Appraiser, Sheriff,
Supervisor of Elections, and Tax Collector). The resolution also established the Board of County
Commissioners as trustees of the OPEB Trust and the authority for the trustees to amend the benefit
provisions.
The OPEB Trust is a single -employer defined benefit plan (OPEB Plan). The OPEB plan subsidizes
the cost of health care for employees hired prior to February 1, 2006 and their eligible dependents
according to the provisions of the substantive plan (the plan as understood by the employer and plan
members). Employees hired on or after February 1, 2006, will not be eligible for any subsidy,
regardless of the years of service or Medicare eligibility.
Active participants as well as retirees are subject to the same benefits and rules. Retired employees are
permitted to remain covered under the County's medical and life insurance plans as long as they pay a
premium applicable to the coverage elected. This conforms to the minimum required of Florida
governmental employers per Florida Statute 112.0801. The retiree has the option to continue with the
County group health plan or elect Medicare Advantage Plan.
The implicit rate subsidy applies to health and life insurance coverage since the premiums charged are
based upon a blending of younger active employees and older retired employees. Health insurance
premiums, effective October 1, 2015, range from $320 for single coverage Medicare participants to
$745 for family coverage. Life insurance is available to retirees at a flat rate of $.50 per $1000 of
coverage (to a maximum of $20,000 until the age of 70). After 70, the maximum amount of life
insurance is $10,000.
95
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 14 — OTHER POSTEMPLOYMENT BENEFITS PLAN (OPEB) - Continued
A. Plan Description - Continued
The County subsidizes the cost of the health premiums for each retiree based upon their years of service
and employment date (as mentioned above); a 2% discount is given for each year of service based upon
the following table:
Hired Before 2/1/2006
Hired On or
After 2/1/2006
Retirement
Date
Service
Under Age 65
Retiree or Spouse
Medicare Eligible
Before 10/1/2004
No Subsidy
60%*
No Subsidy
**
After 10/1/2004 but on
or before
1/31/2009***
Less than 15
years
No Subsidy
20% Subsidy**
At least 15.
years
2% per Year of Service
(maximum of 40%)
Additional 20% Subsidy
(maximum of 60%)**
After 1/31/2009***
Less than 15
years
No Subsidy
No Subsidy
At least 15
years
2% per Year of Service
o
(maximum of 40%)
Subsidy Ceases****
*60% Subsidy if Medicare Eligible prior to October 1, 2004 or 20% if becoming Medicare Eligible after October
1, 2004
**Additional Subsidy will be paid to Medicare Eligible retirees regardless of which plan they are enrolled in
(County's medical plan or Medicare Advantage Plan) and regardless of whether they become Medicare Eligible
before or after October 1, 2004.
***Employees who commit by June 1, 2008 to retire before January 31, 2009 will receive subsidy as if retired
before June 1, 2008.
****Effective May 1, 2016 and prospectively, subsidy does not cease until both Retiree and Spouse are Medicare
eligible.
96
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 14 — OTHER POSTEMPLOYMENT BENEFITS PLAN - Continued
A. Plan Description - Continued
The OPEB Trust financial statements are reported using the accrual basis of accounting and are
included in the Indian River County Comprehensive Annual Financial Report (CAFR). Questions
regarding the OPEB plan may be directed to the Finance Director.
At October 1, 2015,.the date of the latest actuarial valuation, plan participation consisted of:
Active participants 1,384
Retired participants 491
Total participants 1,875
There are two classes of participants at October 1, 2015:
Regular and senior management 1,251
Special risk 624
Total participants 1,875
The average employer's contribution was $2,237 per employee, approximately 4.9% of current payroll.
Financial statements for the OPEB Trust are included in this report and can be found on pages 44-45. A
separate, stand-alone financial report is not issued by the County. The OPEB Trust investments can be
found in Note 3D and the Schedule of Funding Progress can be found on page 109.
B. Funding Policy
The Board of County Commissioners, in concert with the OPEB Board of Trustees, has the authority to
establish and amend the funding policy of the OPEB Plan. The OPEB Trust is advance funded by the
County. For the year ended September 30, 2016, the County contributed $12.1 million to the qualifying
OPEB Trust. This contribution included $9.0 million in additional contributions over and above the
annual required contribution. Plan members receiving benefits contributed $2.5 million, or
approximately 81 percent of the total premiums. We anticipate that the OPEB liability will be
liquidated in the following manner: General fund 52 percent, Transportation fund 7 percent, Emergency
Services District fund 23 percent, Enterprise funds 8 percent, Internal Service funds 9 percent, and the
remaining 1 percent is by the other governmental funds. It is the County's policy to base future OPEB
Trust contributions on the annual required contribution (ARC) in subsequent annual actuarial reports.
Actual contributions represented 100% of the required contributions at September 30, 2016. Custodial
and individual fund administrative fees are paid from the portfolio dividend and interest income.
97
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 14 — OTHER POSTEMPLOYMENT BENEFITS PLAN - Continued
C. Annual OPEB Cost and Net OPEB Obligation (Asset)
The employer's contribution (i.e. annual cost or expense) to the County's OPEB Trust is based on the
ARC calculation. The ARC is an amount actuarially determined in accordance with the parameters of
GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is
projected to cover the normal cost each year and amortize any unfunded actuarial liability over a period
not to exceed 20 years. The following table shows the components of the County's annual cost for the
current and two preceding years, the amount actually contributed, and the changes in the net obligation.
Annual Required Contribution
Interest on Net OPEB Obligation (Asset)
Adjustment to Annual Required Contribution
Annual OPEB Cost
Contributions (net of adjustments)*
Change in Net OPEB Obligation
Net OPEB Obligation (Asset) — beginning of year
Net OPEB Obligation (Asset) — end of year $ (9,734,999) $
Percentage of Annual OPEB Cost Contributed 382%
FY 2015/2016 FY 2014/2015
3,096,411 $ 2,977,075 $
(54,895) (47,722)
86,643 72,521
3,128,159
(11,948,249)
3,001,874
(3,121,416)
FY 2013/2014
2,835,072
(18,036)
24,230
2,841,266
(3,336,027)
(8,820,090) (119,542)
(914,909) (795,367)
(914,909) $
(494,761)
(300,606)
(795,367)
104 %
117%
*Retiree adjustments are comprised of the actual amount withdrawn from the Trust plus premiums
collected and less claims paid. For fiscal year 2016, these adjustments amounted to ($148,162). For
fiscal years 2015 and 2014, these adjustments totaled $144,341 and ($90,852) respectfully.
D. Funded Status and Funding Progress
As of October 1, 2015 (the most recent actuarial valuation date), the funded status of the plan was as
follows:
Actuarial accrued liability (AAL)
Less: Actuarial value of plan assets
Unfunded actuarial accrued liability (UAAL)
Funded ratio
$ 40,096,693
14,850,156
$ 25,246,537
37.04%
Covered payroll (annual payroll of active employees covered by the plan) $ 63,694,205
UAAL as a percentage of covered payroll 39.64%
98
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 14 — OTHER POSTEMPLOYMENT BENEFITS PLAN - Continued
D. Funded Status and Funding Progress - Continued
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events into the future. Examples include
assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined
regarding the funded status of the plan and the annual required contributions of the employer are
subject to continual revision as actual results are compared with past expectations and new estimates
are made about the future.
The Schedule of Funding Progress and Schedule of Employer Contributions, presented as required
supplementary information immediately following the County Notes to the Financial Statements (on
page 109), presents multi-year trend information regarding liabilities, funding, and payroll. The data
also reflects whether the actuarial value of the plan assets is increasing or decreasing over time relative
to the actuarial accrued liabilities for benefits. This information includes the current and past two
actuarial valuations as well as four years of funding data.
E. Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the benefits provided under terms
of the substantive plan (the plan as understood by the employer and the plan members) in effect at the
time of each valuation and on the pattern of sharing of costs between the employer and plan members to
that point. The projection of benefits for financial reporting purposes does not explicitly incorporate
the potential effects of legal or contractual funding limitations on the pattern of cost sharing between
the employer and plan members in the future. Actuarial calculations reflect a long-term perspective.
Consistent with that perspective, actuarial methods and assumptions used include techniques that are
designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial
value of assets.
The actuarial methods are:
Actuarial cost method
Amortization method
Amortization period (closed)
Asset valuation method
The actuarial assumptions are:
Investment rate of return
Projected annual salaries increase
Healthcare cost trend rate
Entry age normal cost method
Level percent of payroll projected to grow 3.50% per year
12 years
Market value
6.0%
4.0%-9.47%
7.0%
Inflation rate 2.50%
99
(net administrative expenses)
(dependent on years of service and age)
(decreasing 1/2% each year & thereafter to
the ultimate value of 4.55%)
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 15 - OPERATING LEASES
The County has entered into non -cancelable operating leases, both as lessor and lessee. Lease terms
vary from 1 to 99 years. Lease revenues totaled $640,755 and lease expenditures totaled $320,923 for
the year ended September 30, 2016. 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
2017
2018
2019
2020
2021
2022-2026
2027-2031
2032-2036
2037-2041
2042-2045
Total future minimum receipts:
$ 599,772
595,067
611,929
629,382
582,557
2,259,802
1,011,813
411,241
277,466
211,918
7,190,947
The property being leased is included in the statement of net position governmental activities and
business -type activities columns and has a cost of $29,307,479 and a carrying value of $19,589,213.
Current year depreciation on property being leased was $532,258.
100
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2016
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 non-
cancelable operating leases such as office space and office equipment as of September 30, 2016:
Year Amount
2017
2018
2019
2020
2021
2022-2026
2027-2031
2032-2036
2037-2041
2042-2046
2047-2051
2052-2056
2057-2061
2062-2066
2067-2071
2072-2076
Total future minimum lease payments:
101.
$ 308,304
135,331.
109,967
68,265
52,692
7,500
7,500
7,200
4,800
4,500
3,300
2,700
1,500
1,500
1,500
1,500
718,059
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 16 - FUND BALANCE
GASB Statement 54, Fund Balance Reporting and Governmental Funds Type Definitions, requires the
fund balance for governmental funds to be reported in classifications that comprise a hierarchy based
primarily on the extent to which the government is bound to honor constraints on the specific purposes
for which amounts in those funds can be spent.
A. Categories
There are five categories of fund balance for governmental funds under Statement 54:
Nonspendable — Amounts that cannot be spent because they are not in spendable form or are legally or
contractually required to remain intact.
Restricted — Use of these resources is based on the constraints imposed externally by creditors,
grantors, contributors, or laws and regulations of other governments; or imposed by law through
constitutional provisions or enabling legislation.
Committed — Amounts whose use is constrained by the approval of a County ordinance by the Board of
County Commissioners. This category also includes existing resources on hand to satisfy the
obligations that arise from contractual obligations entered into by the Board of County Commissioners.
Assigned — The Board of County Commissioners is the governing body authorized to assign fund
balance amounts to be used for specific purposes. This assignment is done through the budget approval
and amendment process. Amounts appropriated to eliminate a budgetary deficit in a subsequent year are
reported in this category as well.
Unassigned — Residual amounts in the general fund that do not meet any of the other fund balance
classifications.
B. Fund Balance Policy
On September 21, 2010, the County approved a Fund Balance and Reserve Policy that set forth the
following reserves of fund balance in the General, Transportation, and Emergency Services District
Funds:
Emergency/Disaster Relief Reserve — A balance of no less than 5% of budgeted operating expenditures
for the current fiscal year will be reserved only for the purpose of responding to natural and man-made
disasters. Disasters include hurricanes, tropical storms, floods, wildfires, or terrorist activities. These
funds can only be used to respond and provide relief after such a disaster. Funds will be replenished
over a five-year period after the completion of the recovery from the disaster.
102
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 16 - FUND BALANCE — Continued
B. Fund Balance Policy - Continued
Budget Stabilization Reserve — A balance of no less than 5% of budgeted operating expenditures for
the current fiscal year will be reserved only for the purpose of revenue declines or unfunded mandates
from the state and federal governments. Funds utilized due to revenue declines will be replenished over
a five-year period. Funds utilized for unfunded mandates or unanticipated expenditures cannot be used
for more than a three-year period and must be replenished within five -years after the three-year period.
At September 30, 2016,.reserve amounts for those funds were:
Budget
Disaster Relief Stabilization Total
General Fund $ 5,800,000 $ 5,800,000 $ 11,600,000
Transportation Fund 800,000 800,000 1,600,000
Emergency Services District Fund 1,950,000 1,950,000 3,900,000
Total $ 8,550,000 $ 8,550,000 $ 17,100,000
The General Fund reserves are included in the unassigned fund balance on the balance sheet. The
Transportation Fund reserves are included in the assigned fund balance and the Emergency Services
District Fund reserves are included in the restricted fund balance on the balance sheet.
Emergency/Disaster Relief and Budget Stabilization Reserve amounts may only be revised by the
Board of County Commissioners.
Minimum Fund Balance - The approved fund balance policy dictates the County's attempt to maintain.
a minimum fund balance in the General, Transportation, and Emergency Services District funds of 20%
of budgeted annual operating expenditures. The minimum fund balance level may be revised by the
County Administrator or his designee.
C. Spending Hierarchy
For all governmental funds, when restricted, committed, assigned, and unassigned fund balances are
combined in a fund, qualified expenditures are paid first from restricted or committed fund balance, as
appropriate, then assigned and finally unassigned fund balances.
NOTE 17 — NET POSITION
Net Position Restricted by Enabling Legislation
The government -wide statement of net position for the primary government reports $132,069,178 of
restricted net position, of which $105,181,531 is restricted by enabling legislation.
103
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2016
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:
05/01/11 to
9/30/2013
Worker's Compensation $
General Liability
Auto Liability
Property Damage
Error or Omissions
Annual Aggregate
Liquor Liability
350,000
200,000
200,000
200,000
200,000
2,000,000
1,000,000
10/01/13 to
9/30/2014
$ 500,000
200,000
200,000
200,000
200,000
2,000,000
1,000,000
10/01/14 to
9/30/2015
10/01/15 to
9/30/2016
$ 750,000
200,000
200,000
200,000
200,000
2,000,000
1,000,000
$ 650,000
200,000
200,000
200,000
200,000
2,000,000
N/A
The County purchases excess insurance to cover claims in excess of the amounts listed above. There is
a 5% deductible per location for property damages arising due to a hurricane under the reinsurance
policy. 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 has received two workers compensation reimbursements totaling
$49,222 in fiscal year 2016. The County received three workers compensation reimbursements totaling
$409,914 in fiscal year 2015 and three in fiscal year 2014 totaling $125,213.
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, other than worker's
compensation, up to $250,000 per occurrence. The County has purchased a reinsurance policy to cover
claims in excess of these limits. There were no medical claim reimbursements in excess of the
$250,000 limit for fiscal year 2016. In fiscal year 2015 there were four totaling $382,635 and in fiscal
year 2014 there were six totaling $335,641.
The claims liability of $8,512,520 reported at September 30, 2016, 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, $3,624,891 will be liquidated over the next twelve months.
104
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 18 - RISK MANAGEMENT - Continued
General Liability, Property, Worker's Compensation and Medical - Continued
Changes 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 Claims at Fiscal
Beginning in Estimates Payments Year End
2012-2013 $ 8,074,000 $ 14,396,726 $ (14,396,726) $ 8,074,000
2013-2014 8,074,000 16,860,869 (16,708,324) 8,226,545
2014-2015 8,226,545 17,188,927 (17,237,952) 8,177,520
2015-2016 8,177,520 17,953,550 (17,618,550) 8,512,520
Included in the charges to other funds is an amount to fund future catastrophic losses not actuarially
determined and at September 30, 2016, unrestricted net position of $27,197,018 has been designated for
this purpose. The County has elected to accrue the larger of the discounted liability or undiscounted
liability. At September 30, 2016, 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
Various suits and claims are currently pending against the County. It is impossible for the County 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 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, 2016. In the General
Fund, contracts are for janitorial services, beach park landscape and custodial maintenance, legislative
consulting services and external auditing services. In the Special Revenue Funds, contracts are for Old
Dixie Highway resurfacing project, the 45th Street Beautification project, GO Line Bus hub, Fire
Station# 14 construction, as well as a variety of other road paving and drainage projects.
105
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 19 - COMMITMENTS AND CONTINGENCIES - Continued
B. Contracts and Other Commitments - Continued
In the Capital Projects Fund, contracts are for the South County Regional. Park Intergenerational
Recreation Facility, Vero Lake Estates sidewalks, P25 radio system migration project, intersection
improvements at 1st Street SW and 43rd Ave., and several sidewalk and road improvement projects
throughout the County. In the Enterprise Funds, contracts are for the golf course maintenance, North
RIO membrane replacement, aquifer wells rehabilitation project, and various other water and sewer
projects.
A summary of these projects at September 30, 2016, is as follows:
General
Special Revenue
Capital Projects
Enterprise
Total
C. Grants
Total
Contract Price
$ 857,767
16,469,534
19,235,296
6,654,687
Total Paid as of
September 30, 2016
(488,074) $
(11,225,151)
(14,360,036)
(2,054,855)
Remaining
Balance at
September 30, 2016
369,693
5,244,383
4,875,260
4,599,832
43,217,284
$ (28,128,116) $
15,089,168
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
The County was impacted by Hurricane Matthew in October 2016. The County has estimated $15
million in expenses related to the hurricane and has applied for reimbursement from FEMA for these
costs. The majority of the costs ($13 million) are related to beach renourishment.
106
Indian River County, Florida
Required Supplementary Information
For the Year Ended September 30, 2016
Schedule of the County's Proportionate Share of the Net Pension Liability
Florida Retirement System (FRS) Defined Benefit Pension Plan
County's
Plan Sponsor Proportion
Fiscal Year Measurement of the FRS
Ending Date Net Pension
September 30, June 30, Liability
County's
Proportionate
Share of the
FRS Net Pension
Liability
County's
Covered
Employee
Payroll
2016 2016 0.3356%
2015 2015 0.3067%
2014 2014 0.3018%
Fiscal Year
Ending
September 30,
$ 84,737,012
$ 39,616,455
$ 18,416,343
$ 60,358,527
$ 57,879,163
$ 55,095,601
County's
Proportionate
Share of the
FRS Net Pension
Liability as a
Percentage of
Covered Payroll
140.39%
68.45%
33.43%
Schedule of the County's Proportionate Share of the Net Pension Liability
Retiree Health Insurance Subsidy (HIS) Program Defined Benefit Pension Plan
Plan Sponsor
Measurement
Date
June 30,
County's
Proportion
of the HIS
Net Pension
Liability
County's
Proportionate
Share of the
HIS Net Pension
Liability
County's
Covered
Employee
Payroll
2016
2015
2014
2016
2015
2014
0.2281%
0.2232%
0.2186%
$ 26,578,559
$ 22,760,252
$ 20,441,863
$ 70,444,190
$ 67,812,302
$ 64,984,255
County's
Proportionate
Share of the
HIS Net Pension
Liability as a
Percentage of
Covered Payroll
37.73%
33.56%
31.46%
FRS Plan
Fiduciary Net
Position as a
Percentage of
Total Pension
Liability
84.88%
92.00%
96.09%
HIS Plan
Fiduciary Net
Position as a
Percentage of
Total Pension
Liability
0.97%
0.50%
0.99%
The County implemented GASB Statement No. 68 for the fiscal year ended September 30, 2015, including a restatement as
of September 30, 2014. Information for prior years is not available. This schedule is being built prospectively. Ultimately,
10 years of data will be presented.
Information on the above defined benefit pension plan's annual money -weighted rate of return on pension plan investments
can be obtained in a separately issued report. Information may also be requested by calling (844) 377-1888 or online at
frs.myflorida.com, click on publications and then annual reports.
107
Fiscal Year
Ending
September 30,
Indian River County, Florida
Required Supplementary Information
For the Year Ended September 30, 2016
Schedule of the County's Contributions
Florida Retirement System (FRS) Defined Benefit Pension Plan
FRS
Contractually
Required
Contribution
FRS Contributions
in Relation to the
Contractually
Required Contribution
FRS
Contribution
Deficiency
(Excess)
County's
Covered
Employee
Payroll
2016
2015
2014
Fiscal Year
Ending
September 30,
$ 8,660,907
$ 7,503,166
$ 6,760,058
8,660,907
7,503,166
6,760,058
$ 61,851,481
$ 57,717,461
$ 56,156,975
Schedule of the County's Contributions
Retiree Health Insurance Subsidy (HIS) Program Defined Benefit Pension Plan
HIS
Contractually
Required
Contribution
HIS Contributions
in Relation to the
Contractually
Required Contribution
2016
2015
2014
$ 1,198,477
$ 918,200
782,940
1,198,477
918,200
782,940
HIS County's
Contribution Covered
Deficiency Employee
(Excess) Payroll
$ $ 72,247,706
$ $ 67,455,498
$ $ 66,229,010
FRS Contributions
as a Percentage of
Covered Payroll
14.01%
13.00%
11.94%
HIS Contributions
as a Percentage of
Covered Payroll
1.66%
1.36%
1.18%
The County implemented GASB Statement No. 68 for the fiscal year ended September 30, 2015, including a restatement as
of September 30, 2014. Information for prior years is not available. This schedule is being built prospectively. Ultimately,
10 years of data will be presented.
108
Valuation
Date
10/01/2007*
10/01/2009
10/01/2011
10/01/2013
10/01/2015
Indian River County, Florida
Required Supplementary Information
For the Year Ended September 30, 2016
Actuarial
Value of
Assets
(a)
3,690,592
6,955,356
11,571,968
14,850,156
Other Postemployment Benefits Plan
Schedule of Funding Progress
Actuarial Accrued
Liability (AAL) -
Entry Age
(b)
29,098,337
32,456,186
33,877,613
35,745,213
40,096,693
Unfunded AAL
(UAAL)
(b -a)
$ 29,098,337
$ 28,765,594
$ 26,922,257
$ 24,173,245
$ 25,246,537
UAAL as a
Percentage of
Covered
Funded Ratio Covered Payroll Payroll
(a/b) (c) ((b-a)/c)
0.00% $ 64,841,779 44.88%
11.37% $ 70,558,251 40.77%
20.53% $ 62,739,616 42.91%
32.37% $ 61,615,728 39.23%
37.04% $ 63,694,205 39.64%
* First year of Indian River County Other Postemployment Benefits Trust (IRCOT)
Fiscal Year
Ending
9/30/2012
9/30/2013
9/30/2014
9/30/2015
9/30/2016
Schedule of Employer Contributions
OPEB Annual
Required Contribution
Amount
Contributed
2,828,452
2,965,251
2,835,072
2,977,075
3,096,411
2,962,301
2,950,097
3,336,027
3,121,416
11,948,249
Percentage
Contributed
104.73%
99.49%
117.67%
104.85%
385.87%
In the current fiscal year, there have not been any factors, such as changes in benefit provisions, the size or composition of the population covered by the
plan or the actuarial methods and assumptions used, that would significantly affect the identification of trends in the amounts reported. See Note 14 for
more information on the IRCOT.
109
110
COMBINING AND INDIVIDUAL
FUND STATEMENTS
AND
SCHEDULES
111
Court Facilities -
Section 8 Rental Assistance -
Special Law Enforcement-
NONMAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
To account for the court facility surcharge, additional court costs,
the additional recording fee for court technology, and
improvements made to court facilities.
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.
To account for the expenditures of providing law enforcement
equipment. Financing is provided by confiscation of monies and
property in accordance with Section 932.704 of the Florida
Statutes.
Tree Ordinance Fines- To account for fines assessed against individuals for illegal
removal of protected trees. Funds are used for park improvements.
Tourist Development -
911 Surcharge -
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.
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.
Drug Abuse- To account for the collection of fines on criminal drug cases.
Monies are used for drug prevention and education programs.
State Housing Initiatives
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.
112
Metropolitan Planning Organization- To account for expenditures incurred for planning community
transportation in the County. Financing is provided by grants.
Multi -Jurisdictional Law Enforcement- 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.
Native Uplands Land Acquisition- 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.
Beach. Restoration- 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.
CDBG Neighborhood Stabilization
Program -
To account for the proceeds from the Community Development
Block. Grant. The purpose of this grant is to provide neighborhood
stabilization through resale and rental of housing units purchased
by the grant funds.
Florida Boating Improvement Program- To account for boat registration fees which may be used for
providing recreational channel marking, public launching facilities,
and other boating -related activities.
Library Bequests -
Disabled Access Program-
Federal/State Grants -
Traffic Education Program -
To account for bequests which may be used for improvements to
the Indian River County Libraries.
To account for fines assessed against individuals for illegal use of
handicapped parking spaces.
To account for revenues and expenditures of various grants from
To account for the proceeds of an additional $3 add-on to traffic
113
Land Acquisition -
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.
East Gifford Stormwater- To account for expenditures of funds for stormwater improvements
in the East Gifford Watershed. Funds are provided by non -ad
valorem taxes.
Vero Lake Estates- 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.
Dodgertown Reserve- To provide additional improvements to the Historic Dodgertown
facility. The City of Vero Beach contributed $1,400,000 and the
County contributed $600,000. This fund was previously known as
the Vero Beach Sports Village Reserve Fund in prior fiscal years.
Clerk Special Revenue -
To account for the proceeds from a special recording fee to be used
for computer linkage and modernizing the Clerk of the Circuit
Court and Comptroller's public records system.
Sheriff Special Revenue- To account for the expenditure of grants, fines, and restricted
revenues received by the Sheriff.
Supervisor of Elections
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.
CDBG Neighborhood Stabilization
Program 3 Grant -
To account for the proceeds from the Community Development
Block Neighborhood Stabilization Program 3 Grant. The purpose
of this grant is to provide neighborhood stabilization through resale
of housing units purchased with the grant funds.
114
Spring Training Facility Bonds -
Land Acquisition. Bonds -
DEBT SERVICE FUNDS
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.
To account for the accumulation of ad valorem taxes to pay the
principal, interest, and fiscal charges related to the Land
Acquisition Bonds and Note.
MAJOR CAPITAL PROJECTS FUND
Optional. Sales Tax- To account for revenues generated by the local option one cent
sales tax. Monies are used for various capital projects.
115
Indian River County, Florida
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2016
Special Revenue
Court Section 8 Rental Special Law
Facilities Assistance Enforcement
ASSETS
Cash and investments $ 758,024 $ 477,397 $
Accounts receivable 588
Due from other funds -
Due from other governments
Interest receivable
Inventories -
Prepaid items - 1,246
Total Assets $ 758,424 $ 479,231 $
296,039
400 - 163
LIABILITIES
Accounts payable
Retainage payable
Due to other funds
Due to other governments
Unearned revenues
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - state and federal grants
Total Deferred Inflows of Resources
FUND BALANCES
Nonspendable:
Inventories
Prepaid items
Restricted for:
Transportation/road improvements
Court -related costs and improvements
Housing assistance
Law enforcement/public safety
Tourism -related activities
Beach renourishment
Boating related projects
Library services
Land acquisition
Stormwater, street lighting, and other special assessments
Debt service
Dodgertown repairs/improvements
Committed to:
Environmental conservation/preservation
Law Enforcement/public safety
Assigned to:
Law enforcement/public safety
Total Fund Balances 644,426 471,818
Total Liabilities and Fund Balances $ 758,424 $ 479,231 $
113,998 $ 7,413
113,998 7,413
644,426
1,246
470,572
116
296,202
296,202
296,202
296,202
Special Revenue
$
State Housing
Tree Ordinance Tourist Initiatives
Fines Development 911 Surcharge Drug Abuse Partnership
376,549 $ 573,431 $ 1,646,261 $ 239,108 $ 325,109
- 60,141 -
213 311 909 135 194
$ 376,762 $ 573,742 $ 1,707,311 $ 239,243 $ 325,303
$
8,450 $
8,450
368,312
69,361 $
10,948 $ - $ 55,579
69,361 10,948 - 55,579
1,696,363 239,243
504,381 - -
269,724
368,312 504,381 1,696,363 239,243 269,724
376,762 $ 573,742 $ 1,707,311 $ 239,243 $ 325,303
Continued
Indian River County, Florida
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2016
Special Revenue
Metropolitan Multi -
Planning Jurisdictional Native Uplands
Organization Law Enforcement Land Acquisition
ASSETS
Cash and investments $ 31,247 $ 34,554 $ 721,807
Accounts receivable
Due from other funds -
Due from other governments 250,990 -
Interest receivable - 408
Inventories -
Prepaid items 7,200 - -
Total Assets $ 289,437 $ 34,554 $ 722,215
LIABILITIES
Accounts payable
Retainage payable
Due to other funds
Due to other governments
Unearned revenues
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - state and federal grants
Total Deferred Inflows of Resources
FUND BALANCES
Nonspendable:
Inventories
137,327 $
18,728
156,055
83,702
83,702
Prepaid items 7,200
Restricted for:
Transportation/road improvements 42,480
Court -related costs and improvements
Housing assistance -
Law enforcement/public safety - 34,554
Tourism -related activities
Beach renourishment
Boating related projects
Library services
Land acquisition
Stormwater, street lighting, and other special assessments -
Debt service
Dodgertown repairs/improvements
Committed to:
Environmental conservation/preservation
Law Enforcement/public safety
Assigned to:
Law enforcement/public safety - -
Total Fund Balances 49,680 34,554
Total Liabilities and Fund Balances $ 289,437 $ 34,554 $
$
118
722,215
722,215
722,215
Special Revenue
Beach Restoration
CDBG
Neighborhood Florida Boating
Stabilization Improvement
Program Program
Library Bequests
$ 10,525,707 $ 62,323 $ 1,135,734 $ 2,829 $
5,925 30
0,531,632 $ 62,353
33,998 $
28,223
62,221
10,469,411
10 $
10
62,343
637
1
36,371 $ 2,830 $
$ - $
Disabled Access
Program
66,903
37
66,940
66,940
1,136,371 - -
2,830 -
10,469,411 62,343 1,136,371 2,830
10,531,632 $ 62,353 $ 1,136,371 $ 2,830 $
Continued
66,940
66,940
ASSETS
Cash and investments
Accounts receivable
Due from other funds
Indian River County, Florida
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2016
Special Revenue
Federal/State Traffic Education
Grants Program Land Acquisition
$ 2,301 $ 61,660 $ 116,704
Due from other governments 23,041
Interest receivable -
Inventories
Prepaid items
Total Assets $ 25,342 $ 61,691 $ 116,770
31 66
LIABILITIES
Accounts payable
Retainage payable
Due to other funds
Due to other governments
Unearned revenues
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - state and federal grants
Total Deferred Inflows of Resources
FUND BALANCES
Nonspendable:
Inventories
Prepaid items
Restricted for:
Transportation/road improvements
Court -related costs and improvements
Housing assistance
Law enforcement/public safety
Tourism -related activities
Beach renourishment
Boating related projects
Library services
Land acquisition
Stormwater, street lighting, and other special assessments
Debt service
Dodgertown repairs/improvements
Committed to:
Environmental conservation/preservation
Law Enforcement/public safety
Assigned to:
Law enforcement/public safety
Total Fund Balances 38,366
Total Liabilities and Fund Balances $ 25,342 $ 61,691 $
$ 12,342 $ 23,325 $
13,000
409
25,342 23,325 409
38,366
120
116,361
116,361
116,770
Special Revenue
East Gifford Dodgertown Clerk Special Sheriff Special
Stormwater Vero Lakes Estates Reserve Revenue Revenue
$ 21,304 $ 722,199 $ 189,242 $ 2,059,668 $ 1,733,155
- - 1,013 - 69,661
13 3,091 - 32,338
- - 10,417 1,170
12 409 - -
- - - 19,237
- - - 42,192 -
$ 21,329 $ 725,699 $ 200,672 $ 2,135,368 $ 1,822,053
- $ 43 $ 19,849 $ 207 $ 72,110
98 62,735
43 19,849 305 134,845
19,237
42,192
2,092,871 -
1,250,430
21,329
725,656
180,823
311,003
- - - - 106,538
21,329 725,656 180,823 2,135,063 1,687,208
21,329 $ 725,699 $ 200,672 $ 2,135,368 $ 1,822,053
Continued
ASSETS
Cash and investments
Accounts receivable
Due from other funds
Due from other governments
Interest receivable
Inventories
Prepaid items
Total Assets
LIABILITIES
Accounts payable
Retainage payable
Due to other funds
Due to other governments
Unearned revenues
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - state and federal grants
Total Deferred Inflows of Resources
FUND BALANCES
Nonspendable:
Inventories
Prepaid items
Restricted for:
Transportation/road improvements
Court -related costs and improvements
Housing assistance
Law enforcement/public safety
Tourism -related activities
Beach renourishment
Boating related projects
Library services
Land acquisition
Stormwater, street lighting, and other special assessments - 502,833
Debt service
Dodgertown repairs/improvements
Committed to:
Environmental conservation/preservation
Law Enforcement/public safety
Assigned to:
Law enforcement/public safety
Total Fund Balances 502,833 30,916
Total Liabilities and Fund Balances $ 35,913 $ 512,137 $ 30,916
Indian River County, Florida
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2016
Special Revenue
Supervisor of
Elections Special Street Lighting
Revenue Districts CDBG NSP3 Grant
$ 35,913 $ 508,435 $
3,409
293
$ 35,913 $ 512,137 $
$ $ 9,304 $
35,913 -
35,913 9,304
30,899
17
30,916
30,916
122
Debt Service
Total
Nonmajor
Spring Training Land Acquisition Governmental
Facility Bonds Bonds Funds
$ 2,213,708 $ 1,051,590 $ 26,019,800
71,262
62,050 100,901
345,759
1,246 594 12,031
19,237
50,638
2,214,954 $ 1,114,234 $ 26,619,628
- $ $ 574,673
46,951
13,000
62,833
35,913
733,370
- 83,702
83,702
19,237
50,638
- 42,480
2,737,297
833,555
3,622,098
504,381
10,469,411
1,136,371
2,830
116,361
1,249,818
2,214,954 1,114,234 3,329,188
180,823
- - 1,090,527
311,003
106,538
2,214,954 1,114,234 25,802,556
2,214,954 $ 1,114,234 $ 26,619,628
123
Indian River County, Florida
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended September 30, 2016
Special Revenue
Section 8 Rental Special Law
Court Facilities Assistance Enforcement
REVENUES
Taxes $ - $ - $ -
Permits, fees and special assessments - - -
Intergovernmental - 2,384,081 -
Charges for services 543,234 27,339 41,541.
Judgments, fines and forfeits - - 21,411
Interest 4,065 111 1,568
Miscellaneous - 3,900 -
Total revenues 547,299 2,415,431 64,520
EXPENDITURES
General government
Public safety
Physical environment
Transportation
Economic environment
Human services
Culture/recreation
Court related
Debt service:
Principal
Interest and other fiscal charges
Total expenditures
21,476
2,338,380
584,890
606,366 2,338,380
Excess of revenues over (under) expenditures (59,067) 77,051 64,520
OTHER FINANCING SOURCES (USES)
Transfers in -
Transfers out (25,476) (65,500)
Total other financing sources (uses) - (25,476) (65,500)
Net changes in fund balances (59,067) 51,575 (980)
Fund balances at beginning of year 703,493 420,243 297,182
Fund balances at end of year $ 644,426 $ 471,818 $ 296,202
124
Special Revenue
State Housing
Tree Ordinance Tourist Initiatives
Fines Development 911 Surcharge Drug Abuse Partnership
- $ 912,559 $ - $ - $ -
- 698,823 10,842 706,401
137,702
50,000 - - 8,851
1,919 2,701 8,435 1,273 2,279
- - 278 - 12,996
51,919 915,260 707,536 20,966 859,378
381,195 10,842
18,096 793,015
905,644
18,096 793,015 381,195 10,842 905,644
33,823 122,245 326,341 10,124 (46,266)
(209,135) (6,369)
(209,135) (6,369)
33,823 122,245 117,206 10,124 (52,635)
334,489 382,136 1,579,157 229,119 322,359
368,312 $ 504,381 $ 1,696,363 $ 239,243 $ 269,724
Continued
125
Indian River County, Florida
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended September 30, 2016
REVENUES
Taxes
Permits, fees and special assessments
Intergovernmental
Charges for services
Judgments, fines and forfeits
Interest
Miscellaneous
Total revenues
EXPENDITURES
General government
Public safety
Physical environment
Transportation
Economic environment
Human services
Culture/recreation
Court related
Debt service:
Principal
Interest and other fiscal charges
Total expenditures
Special Revenue
Multi -
Metropolitan Jurisdictional Native Uplands
Planning Law Land
Organization Enforcement Acquisition
$ - $
1,058,346
31,689
115 4,197
1,058,346 31,804 4,197
853,710
82,136
2,510
113,868
853,710 82,136 116,378
Excess of revenues over (under) expenditures 204,636 (50,332) (112,181)
OTHER FINANCING SOURCES (USES)
Transfers in 297,074 -
Transfers out (25,476) (71,134)
Total other financing sources (uses) 271,598 (71,134)
Net changes in fund balances 476,234 (121,466) (112,181)
Fund balances at beginning of year (426,554) 156,020 834,396
Fund balances at end of year $ 49,680 $ 34,554 $ 722,215
126
Special Revenue
CDBG
Neighborhood Florida Boating
Beach Stabilization Improvement Library
Restoration Program Program Bequests
$ 912,559 $ - $ - $ $
1,843,587 126,765
Disabled Access
Program
- 1,298
56,429 242 5,777 44 358
5,469 20,809 1,700 -
2,818,044 21,051 134,242 44 1,656
1,932
761,197
761,197 1,932
152,991 7,955
152,991 7,955
2,056,847 19,119 (18,749) (7,911)
123,947
(12,739)
111,208
1,656
2,168,055 19,119 (18,749) (7,911) 1,656
8,301,3 56 43,224 1,155,120 10,741 65,284
10,469,411 $ 62,343 $ 1,136,371 $ 2,830 $ 66,940
Continued
127
Indian River County, Florida
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended September 30, 2016
Special Revenue
Traffic
Federal/State Education Land
Grants Program Acquisition
REVENUES
Taxes $ - $ - $ -
Permits, fees and special assessments - - -
Intergovernmental 795,558 - 15,000
Charges for services
Judgments, fines and forfeits 64,509
Interest 264 649
Miscellaneous - -
Total revenues 795,558 64,773 15,649
EXPENDITURES
General government
Public safety
Physical environment
Transportation
Economic environment
Human services
Culture/recreation
Court related
Debt service:
Principal
Interest and other fiscal charges
Total expenditures
60,000
795,558
25,726
-
795,558 60,000 25,726
Excess of revenues over (under) expenditures - 4,773 (10,077)
OTHER FINANCING SOURCES (USES)
Transfers in - - -
Transfers out - - -
Total other financing sources (uses)
-
Net changes in fund balances - 4,773 (10,077)
Fund balances at beginning of year - 33,593 126,438
Fund balances at end of year $ $ 38,366 $ 116,361
128
Special Revenue
East Gifford Vero Lakes Dodgertown Clerk Special Sheriff Special
Stormwater Estates Reserve Revenue Revenue
90 $ 710 $ - $ - $ -
927 245,735 - -
- 125,000 207,981
403,411 223,590
159,500 77,090
114 4,002 3,173
- - - 388,748
1,131 250,447 125,000 566,084 897,409
735,233
171,687
463,753
159,119
1,616,757
735,233 171,687 622,872 1,616,757
1,131 (484,786) (46,687) (56,788) (719,348)
364,823
(50) (3,991)
(50) 360,832
1,081 (123,954)
20,248 849,610
125,000
125,000
78,313
9,700 865,842
9,700 865,842
(47,088) 146,494
102,510 2,182,151 1,540,714
21,329 $ 725,656 $ 180,823 $ 2,135,063 $ 1,687,208
Continued
129
Indian River County, Florida
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended September 30, 2016
Special Revenue
Supervisor of
Elections Special Street Lighting CDBG NSP3
Revenue Districts Grant
REVENUES
Taxes $ - $ 3,335 $ -
Permits, fees and special assessments - 268,652 -
Intergovernmental 4,026
Charges for services
Judgments, fines and forfeits
Interest - 3,015 105
Miscellaneous - 2,440 38,528
Total revenues 4,026 277,442 38,633
EXPENDITURES
General government
Public safety
Physical environment
Transportation
Economic environment
Human services
Culture/recreation
Court related
Debt service:
Principal
Interest and other fiscal charges
Total expenditures
Excess of revenues over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total other financing sources (uses)
Net changes in fund balances
Fund balances at beginning of year
Fund balances at end of year
130
10,017
239,290
10,017 239,290
(5,991) 38,152
2,463
2,463
(3,528)
(6,768)
(6,768)
31,384
1,992
1,992
36,641
36,641
3,528 471,449 (5,725)
$ 502,833 $ 30,916
Debt Service
Total
Land Nonmajor
Spring Training Acquisition Governmental
Facility Bonds Bonds Funds
$ 608,373 $ 4,594,381 $ 7,032,007
515,314
500,004 8,476,414
1,376,817
414,348
11,767 18,198 130,800
474,868
1,120,144 4,612,579 18,420,568
1,348,956
2,090,930
28,236
1,034,523
3,924
4,039,582
2,018,809
744,009
495,000 3,888,000 4,383,000
357,044 474,963 832,007
852,044 4,362,963 16,523,976
268,100 249,616 1,896,592
1,788,849
(102,981) (529,619)
(102,981) 1,259,230
268,100 146,635 3,155,822
1,946,854 967,599 22,646,734
2,214,954 $ 1,114,234 $ 25,802,556
131
Indian River County, Florida
Budgetary Comparison Schedule
Court Facilities
For the Year Ended September 30, 2016
Variance
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Charges for services $ 481,524 $ 543,234 $ 61,710
Interest 2,000 4,065 2,065
Total revenues 483,524 547,299 63,775
EXPENDITURES
General government 223,396 21,476 201,920
Court related 736,550 584,890 151,660
Total expenditures 959,946 606,366 353,580
Net change in fund balances (476,422) (59,067) 417,355
Fund balances at beginning of year 476,422 703,493 227,071
Fund balances at end of year $ - $ 644,426 $ 644,426
132
Indian River County, Florida
Budgetary Comparison Schedule
Section 8 Rental Assistance
For the Year Ended September 30, 2016
Variance
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Intergovernmental $ 2,441,896 $ 2,384,081 $ (57,815)
Charges for services 100,000 27,339 (72,661)
Interest - 111 111
Miscellaneous - 3,900 3,900
Total revenues 2,541,896 2,415,431 (126,465)
EXPENDITURES
Human services 2,546,511 2,338,380 208,131
Total expenditures 2,546,511 2,338,380 208,131
Excess of revenues over (under) expenditures (4,615) 77,051 81,666
OTHER FINANCING SOURCES (USES)
Transfers out (25,476) (25,476)
Total other financing sources (uses) (25,476) (25,476)
Net change in fund balances (30,091) 51,575 81,666
Fund balances at beginning of year 30,091 420,243 390,152
Fund balances at end of year $ - $ 471,818 $ 471,818
133
REVENUES
Charges for services
Judgments, fines and forfeits
Interest
Total revenues
Indian River County, Florida
Budgetary Comparison Schedule
Special Law Enforcement
For the Year Ended September 30, 2016
Variance
Final Actual Positive
Budget Amounts (Negative)
41,541 $ 41,541
21,411 21,411
1,568 1,568
64,520 64,520
OTHER FINANCING SOURCES (USES)
Transfers out (65,500) (65,500) -
Total other financing sources (uses) (65,500) (65,500)
Net change in fund balances (65,500) (980) 64,520
Fund balances at beginning of year 65,500 297,182 231,682
Fund balances at end of year $ - $ 296,202 $ 296,202
134
Indian River County, Florida
Budgetary Comparison Schedule
Tree Ordinance Fines
For the Year Ended September 30, 2016
REVENUES
Judgments, fines and forfeits
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
135
Final
Budget
Variance
Actual Positive
Amounts (Negative)
50,000 $ 50,000
1,919 1,919
51,919 51,919
150,000 18,096
150,000 18,096
(150,000) 33,823
150,000 334,489
131,904
131,904
183,823
184,489
368,312 $ 368,312
Indian River County, Florida
Budgetary Comparison Schedule
Tourist Development
For the Year Ended September 30, 2016
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
136
Final
Budget
Variance
Actual Positive
Amounts (Negative)
$ 769,500 $ 912,559 $ 143,059
1,900 2,701 801
771,400 915,260 143,860
813,990
813,990
(42,590)
793,015
793,015
122,245
42,590 382,136
504,381
20,975
20,975
164,835
339,546
$ 504,381
Indian River County, Florida
Budgetary Comparison Schedule
911 Surcharge
For the Year Ended September 30, 2016
REVENUES
Intergovernmental.
Interest
Miscellaneous
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
137
Final
Budget
$ 741,000 $
741,000
700,635
700,635
40,365
(209,135)
(209,135)
(168,770)
168,770
Variance
Actual Positive
Amounts (Negative)
698,823 $
8,435
278
707,536
381,195
381,195
326,341
(209,135)
(209,135)
117,206
1,579,157
1,696,363
(42,177)
8,435
278
(33,464)
319,440
319,440
285,976
285,976
1,410,387
1,696,363
Indian River County, Florida
Budgetary Comparison Schedule
Drug Abuse
For the Year Ended September 30, 2016
Variance
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Intergovernmental $ 10,842 $ 10,842 $ -
Judgments, fines and forfeits - 8,851 8,851
Interest - 1,273 1,273
Total revenues
10,842 20,966 10,124
EXPENDITURES
Public safety 10,842 10,842
Total expenditures 10,842 10,842
Net change in fund balances - 10,124 10,124
Fund balances at beginning of year - 229,119 229,119
Fund balances at end of year $ - $ 239,243 $ 239,243
138
Indian River County, Florida
Budgetary Comparison Schedule
State Housing Initiatives Partnership
For the Year Ended September 30, 2016
REVENUES
Intergovernmental.
Charges for services
Interest
Miscellaneous
Total revenues
EXPENDITURES
Human services
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
139
Variance
Final Actual Positive
Budget Amounts (Negative)
$ 695,135 $ 706,401
- 137,702
- 2,279
- 12,996
695,135 859,378
$ 11,266
137,702
2,279
12,996
164,243
1,017,493 905,644 111,849
1,017,493 905,644 111,849
(322,358) (46,266) 276,092
(6,369) (6,369)
(6,369) (6,369)
(328,727) (52,635)
328,727 322,359
- $ 269,724
276,092
(6,368)
269,724
Indian River County, Florida
Budgetary Comparison Schedule
Metropolitan Planning Organization
For the Year Ended September 30, 2016
REVENUES
Intergovernmental.
Total revenues
EXPENDITURES
General government
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
140
Final
Budget
$ 2,043,252 $
2,043,252
2,495,557
2,495,557
(452,305)
Variance
Actual Positive
Amounts (Negative)
1,058,346 $ (984,906)
1,058,346 (984,906)
853,710
853,710
1,641,847
1,641,847
204,636 656,941
297,074 297,074
(25,476) (25,476)
271,598 271,598
(180,707)
180,707
476,234
(426,554)
$ 49,680
656,941
(607,261)
49,680
REVENUES
Judgments, fines and forfeits
Interest
Total revenues
Indian River County, Florida
Budgetary Comparison Schedule
Multi -Jurisdictional Law Enforcement
For the Year Ended September 30, 2016
Variance
Final Actual Positive
Budget Amounts (Negative)
12,758
31,689 $ 18,931
115 115
12,758 31,804 19,046
EXPENDITURES
Public safety 82,139 82,136 3
Total expenditures 82,139 82,136 3
Excess of revenues over (under) expenditures (69,381) (50,332) 19,049
OTHER FINANCING SOURCES (USES)
Transfers out
Total other financing sources (uses)
Net change in fund balances
(73,886) (71,134) 2,752
(73,886) (71,134) 2,752
(143,267) (121,466) 21,801
Fund balances at beginning of year 143,267 156,020 12,753
Fund balances at end of year $ - $ 34,554 $ 34,554
141
REVENUES
Interest
Total revenues
Indian River County, Florida
Budgetary Comparison Schedule
Native Uplands Land Acquisition
For the Year Ended September 30, 2016
Variance
Final Actual Positive
Budget Amounts (Negative)
4,197 $ 4,197
4,197 4,197
EXPENDITURES
Physical environment 103,132 2,510 100,622
Culture/recreation 113,868 113,868 -
Total expenditures 217,000 116,378 100,622
Net change in fund balances (217,000) (112,181) 104,819
Fund balances at beginning of year 217,000 834,396 617,396
Fund balances at end of year $ - $ 722,215 $ 722,215
142
Indian River County, Florida
Budgetary Comparison Schedule
Beach Restoration
For the Year Ended September 30, 2016
REVENUES
Taxes
Intergovernmental
Interest
Miscellaneous
Total revenues
EXPENDITURES
Culture/recreation
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
143
Final
Budget
Actual
Amounts
$ 769,500 $ 912,559 $
1,843,587
9,500 56,429
5,469 5,469
784,469 2,818,044
1,322,836 761,197
1,322,836 761,197
(538,367) 2,056,847
123,947 123,947
(12,739) (12,739)
111,208
(427,159)
111,208
2,168,055
Variance
Positive
(Negative)
143,059
1,843,587
46,929
2,033,575
561,639
561,639
2,595,214
2,595,214
427,159 8,301,356 7,874,197
$ - $ 10,469,411 $ 10,469,411
Indian River County, Florida
Budgetary Comparison Schedule
CDBG Neighborhood Stabilization Program
For the Year Ended September 30, 2016
REVENUES
Interest
Miscellaneous
Total revenues
EXPENDITURES
Economic environment
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
144
Final
Budget
Variance
Actual Positive
Amounts (Negative)
$ - $ 242 $ 242
2,000 20,809 18,809
2,000 21,051 19,051
2,000 1,932
2,000 1,932
19,119
43,224
68
68
19,119
43,224
62,343 $ 62,343
Indian River County, Florida
Budgetary Comparison Schedule
Florida Boating Improvement Program
For the Year Ended September 30, 2016
REVENUES
Intergovernmental.
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
145
Final
Budget
Variance
Actual Positive
Amounts (Negative)
$ 334,500 $ 126,765 $
5,777
1,700
334,500 134,242
567,771 152,991
567,771 152,991
(233,271) (18,749)
233,271 1,155,120
$ - $ 1,136,371
(207,735)
5,777
1,700
(200,258)
414,780
414,780
214,522
921,849
1,136,371
REVENUES
Interest
Total revenues
EXPENDITURES
Culture/recreation
Total expenditures
Net change in fund balances
Indian River County, Florida
Budgetary Comparison Schedule
Library Bequests
For the Year Ended September 30, 2016
Variance
Final Actual Positive
Budget Amounts (Negative)
44 $ 44
44 44
10,741 7,955 2,786
10,741 7,955 2,786
(10,741) (7,911) 2,830
Fund balances at beginning of year 10,741 10,741
Fund balances at end of year $ - $ 2,830 $ 2,830
146
Indian River County, Florida
Budgetary Comparison Schedule
Disabled Access Program
For the Year Ended September 30, 2016
REVENUES
Judgments, fines and forfeits
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
147
Variance
Final Actual Positive
Budget Amounts (Negative)
1,298 $ 1,298
358 358
1,656 1,656
20,000 - 20,000
20,000 20,000
(20,000) 1,656
20,000 65,284
21,656
45,284
66,940 $ 66,940
Indian River County, Florida
Budgetary Comparison Schedule
Federal/State Grants
For the Year Ended September 30, 2016
REVENUES
Intergovernmental.
Total revenues
EXPENDITURES
Human services
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
148
Final
Budget
Variance
Actual Positive
Amounts (Negative)
$ 1,548,278 $ 795,558 $
1,548,278 795,558
1,548,278 795,558
1,548,278 795,558
(752,720)
(752,720)
752,720
752,720
REVENUES
Judgments, fines and forfeits
Interest
Total revenues
EXPENDITURES
Transportation
Total expenditures
Indian River County, Florida
Budgetary Comparison Schedule
Traffic Education Program
For the Year Ended September 30, 2016
Variance
Final Actual Positive
Budget Amounts (Negative)
60,000 $ 64,509 $ 4,509
264 264
60,000 64,773 4,773
60,000 60,000
60,000 60,000
Net change in fund balances - 4,773 4,773
Fund balances at beginning of year - 33,593 33,593
Fund balances at end of year $ - $ 38,366 $ 38,366
149
Indian River County, Florida
Budgetary Comparison Schedule
Land Acquisition
For the Year Ended September 30, 2016
REVENUES
Intergovernmental.
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
150
Final
Budget
Variance
Actual Positive
Amounts (Negative)
15,000 $
649
15,649
65,000 25,726
65,000 25,726
(65,000) (10,077)
65,000 126,438
116,361
15,000
649
15,649
39,274
39,274
54,923
61,438
116,361
Indian River County, Florida
Budgetary Comparison Schedule
East Gifford Stormwater
For the Year Ended September 30, 2016
REVENUES
Taxes
Permits, fees and special assessments
Interest
Total revenues
EXPENDITURES
Transportation
Total expenditures 19,883 - 19,883
Variance
Final Actual Positive
Budget Amounts (Negative)
- $ 90 $ 90
940 927 (13)
- 114 114
940 1,131 191
19,883 19,883
Excess of revenues over (under) expenditures (18,943) 1,131 20,074
OTHER FINANCING SOURCES (USES)
Transfers out (57) (50) 7
Total other financing sources (uses) (57) (50) 7
Net change in fund balances (19,000) 1,081 20,081
Fund balances at beginning of year 19,000 20,248 1,248
Fund balances at end of year $ - $ 21,329 $ 21,329
151
Indian River County, Florida
Budgetary Comparison Schedule
Vero Lakes Estates
For the Year Ended September 30, 2016
REVENUES
Taxes
Permits, fees and special assessments
Interest
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
152
Final
Budget
Variance
Actual Positive
Amounts (Negative)
$ - $ 710 $
238,450 245,735
2,850 4,002
241,300 250,447
974,064 735,233
974,064 735,233
(732,764)
(484,786)
364,823
(4,488) (3,991)
(4,488) 360,832
(737,252) (123,954)
737,252 849,610
725,656
710
7,285
1,152
9,147
238,831
238,831
247,978
364,823
497
365,320
613,298
112,358
725,656
Indian River County, Florida
Budgetary Comparison Schedule
Dodgertown Reserve
For the Year Ended September 30, 2016
Variance
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Intergovernmental $ 125,000 $ 125,000 $
Total revenues 125,000 125,000
EXPENDITURES
Culture/recreation 250,000 1.71,687 78,31.3
Total expenditures 250,000 171,687 78,313
Excess of revenues over (under) expenditures (125,000) (46,687) 78,313
OTHER FINANCING SOURCES (USES)
Transfers in 125,000 125,000
Total other financing sources (uses) 125,000 125,000
Net change in fund balances - 78,313 78,313
Fund balances at beginning of year 102,510 102,510
Fund balances at end of year $ - $ 180,823 $ 180,823
153
Indian River County, Florida
Budgetary Comparison Schedule
Clerk Special Revenue
For the Year Ended September 30, 2016
REVENUES
Charges for services
Judgments, fines and forfeits
Interest
Total revenues
EXPENDITURES
General government
Court related
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
154
Final
Budget
$ 350,000 $
200,000
3,950
553,950
595,654
200,000
795,654
(241,704)
20,750
20,750
(220,954)
220,954
Variance
Actual Positive
Amounts (Negative)
403,411
159,500
3,173
566,084
463,753
159,119
622,872
(56,788)
9,700
9,700
(47,088)
2,182,151
2,135,063 $
53,411
(40,500)
(777)
12,134
131,901
40,881
172,782
184,916
(11,050)
(11,050)
173,866
1,961,197
2,135,063
Indian River County, Florida
Budgetary Comparison Schedule
Sheriff Special Revenue
For the Year Ended September 30, 2016
REVENUES
Intergovernmental.
Charges for services
Judgments, fines and forfeits
Miscellaneous
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
155
Final
Budget
$ 207,981
185,000
70,000
342,521
805,502
1,655,000
1,655,000
(849,498)
Variance
Actual Positive
Amounts (Negative)
$ 207,981 $
223,590
77,090
388,748
897,409
38,590
7,090
46,227
91,907
1,616,757 38,243
1,616,757 38,243
(719,348) 130,150
849,498 865,842 16,344
849,498 865,842 16,344
- 146,494
1,540,714
$ - $ 1,687,208
146,494
1,540,714
1,687,208
Indian River County, Florida
Budgetary Comparison Schedule
Supervisor of Elections Special Revenue
For the Year Ended September 30, 2016
REVENUES
Intergovernmental.
Total revenues
EXPENDITURES
General government
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
Variance
Actual Positive
Amounts (Negative)
$ 6,408 $ 4,026 $
6,408 4,026
10,017 10,017
10,017 10,017
(3,609) (5,991)
3,609 2,463
3,609 2,463
(3,528)
Fund balances at beginning of year 3,528
Fund balances at end of year
156
(2,382)
(2,382)
(2,382)
(1,146)
(1,146)
(3,528)
3,528
Indian River County, Florida
Budgetary Comparison Schedule
Street Lighting Districts
For the Year Ended September 30, 2016
REVENUES
Taxes
Permits, fees and special assessments
Interest
Miscellaneous
Total revenues
Final
Budget
Variance
Actual Positive
Amounts (Negative)
$ - $ 3,335 $
264,660 268,652
1,023 3,015
2,318 2,440
268,001 277,442
EXPENDITURES
Transportation 338,168 239,290
Total expenditures 338,168 239,290
Excess of revenues over (under) expenditures (70,167) 38,152
OTHER FINANCING SOURCES (USES)
Transfers out (8,125) (6,768)
Total other financing sources (uses) (8,125) (6,768)
Net change in fund balances (78,292) 31,384
Fund balances at beginning of year 78,292 471,449
Fund balances at end of year $ - $ 502,833
157
3,335
3,992
1,992
122
9,441
98,878
98,878
108,319
1,357
1,357
109,676
393,157
502,833
Indian River County, Florida
Budgetary Comparison Schedule
CDBG NSP3 Grant
For the Year Ended September 30, 2016
REVENUES
Interest
Miscellaneous
Total revenues
EXPENDITURES
Economic environment
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
158
Final
Budget
Variance
Actual Positive
Amounts (Negative)
105 $ 105
38,528 38,528
38,633 38,633
5,000 1,992
5,000 1,992
(5,000) 36,641
5,000 (5,725)
3,008
3,008
41,641
(10,725)
$ $ 30,916 $ 30,916
Indian River County, Florida
Budgetary Comparison Schedule
Spring Training Facility Bonds
For the Year Ended September 30, 2016
REVENUES
Taxes
Intergovernmental
Interest
Total revenues
EXPENDITURES
Debt service:
Principal
Interest and other fiscal charges
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
159
Final
Budget
$ 513,000
475,000
Actual
Amounts
608,373 $
500,004
11,767
988,000 1,120,144
495,000 495,000
493,000 357,044
988,000 852,044
268,100
1,946,854
$ - $ 2,214,954
Variance
Positive
(Negative)
95,373
25,004
11,767
132,144
135,956
135,956
268,100
1,946,854
2,214,954
Indian River County, Florida
Budgetary Comparison Schedule
Land Acquisition Bonds
For the Year Ended September 30, 2016
REVENUES
Taxes
Interest
Total revenues
EXPENDITURES
Debt service:
Principal
Interest and other fiscal charges
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
160
Final
Budget
Variance
Actual Positive
Amounts (Negative)
$ 4,517,886 $ 4,594,381 $ 76,495
4,750 18,198 13,448
4,522,636 4,612,579 89,943
3,888,000 3,888,000
484,614 474,963 9,651
4,372,614 4,362,963 9,651
150,022 249,616 99,594
(122,982) (102,981)
(122,982) (102,981)
27,040 146,635
(27,040) 967,599
$ 1,114,234
20,001
20,001
119,595
994,639
1,114,234
Indian River County, Florida
Budgetary Comparison Schedule
Optional Sales Tax Capital Projects Fund
For the Year Ended September 30, 2016
REVENUES
Taxes
Permits, fees and special assessments
Intergovernmental
Interest
Miscellaneous
Total revenues
EXPENDITURES
Capital projects
Total expenditures
Excess of revenues over (under) expenditures
OTHER FINANCING USES
Transfers out
Total other financing uses
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
161
Final
Budget
13,775,000
2,860,663
76,000
420,827
17,132,490
52,166,262
52,166,262
Variance
Actual Positive
Amounts (Negative)
16,858,894
45
1,915,979
355,337
2,476,958
21,607,213
$ 3,083,894
45
(944,684)
279,337
2,056,131
4,474,723
13,329,391 38,836,871
13,329,391 38,836,871
(35,033,772) 8,277,822 43,311,594
(2,471,440)
(2,471,440)
(37,505,212)
37,505,212
(1,224,916) 1,246,524
(1,224,916) 1,246,524
7,052,906
44,558,1 18
64,106,913 26,601,701
71,159,819
7
59,819
162
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.
Information Technology- To account for the expenses incurred for maintaining
the County's computer services and geographic
information systems. Revenues are generated by
charging user departments based on their number of
computer equipment and their use of the geographic
information system.
163
Indian River County, Florida
Combining Statement of Net Position
Internal Service Funds
September 30, 2016
Fleet
Management
ASSETS
Current assets:
Cash and investments $ 360,260
Accounts receivable - net 122,428
Due from other funds
Due from other governments
Interest receivable
Inventories
Prepaid items
Total current assets
Non-current assets:
Capital assets - depreciable
Capital assets - accumulated depreciation
Total non-current assets
Total assets
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions
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
Claims payable
Net pension liability
Total non-current liabilities
Total liabilities
37,024
424
162,059
682,195
Self
Insurance
$ 25,545,955
46,849
349,437
2,625
27,603
9,917,141
35,889,610
268,392 19,060
(265,017) (18,771)
3,375 289
685,570 35,889,899
108,174 54,556
169,970
32,255
202,225
19,144
275,354
294,498
496,723
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions 1.1,262
NET POSITION
Net investment in capital assets
Unrestricted
Total net position
164
62,753
3,624,891
13,035
3,700,679
13,222
4,887,629
139,653
5,040,504
8,741,183
5,965
3,375 289
282,384 27,197,018
285,759 $ 27,197,307
Information
Technology
$ 788,363
Totals
$ 26,694,578
169,277
349,437
39,649
931 28,958
162,059
35,325 9,952,466
824,619 37,396,424
2,391,274 2,678,726
(1,896,175) (2,179,963)
495,099 498,763
1,319,718 37,895,187
206,522
369,252
41,101 273,824
3,624,891
35,446 80,736
76,547 3,979,451
32,555 64,921
4,887,629
934,378
5,886,928
9,866,379
519,371
551,926
628,473
19,186
36,413
495,099 498,763
383,482 27,862,884
$ 878,581 $ 28,361,647
Indian River County, Florida
Combining Statement of Revenues, Expenses,
and Changes in Fund Net Position
Internal Service Funds
For the Year Ended September 30, 2016
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 (loss) before transfers
Transfers in (out)
Change in net position
Total net position - beginning
Total net position - ending
Fleet
Management
$ 2,500,716 $
2,500,716
420,369
1,986,976
6,677
2,414,022
86,694
2,071.
2,071
88,765
(13,217)
75,548
210,211
$ 285,759 $
165
Self
Insurance
19,847,595 $
19,847,595
1,921,961
18,627,180
217
20,549,358
(701,763)
148,196
148,196
(553,567)
6,019,568
5,466,001
21,731,306
27,197,307
Information
Technology Totals
912,446 $ 23,260,757
912,446 23,260,757
893,989 3,236,319
361,310 20,975,466
163,426 170,320
1,418,725 24,382,105
(506,279) (1,121,348)
5,534 155,801.
5,534 155,801
(500,745) (965,547)
(70,064) 5,936,287
(570,809) 4,970,740
1,449,390 23,390,907
$ 878,581 $ 28,361,647
Indian River County, Florida
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended September 30, 2016
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 (decrease) in cash and investments
Cash and investments at beginning of year
Cash and investments at end of year
Classified as:
Current assets
Fleet
Ianagement
$ 2,457,907
(1,886,530)
(403,294)
Self
Insurance
$ 19,667,146 $
(18,284,646)
(10,909,288)
Information
Technology
912,446
(355,213)
(849,014)
Totals
$ 23,037,499
(20,526,389)
(12,161,596)
168,083
(13,217)
(13,217)
(9,526,788)
6,019,568
6,019,568
(291,781)
(70,064)
(70,064)
(9,650,4861
5,936,287
5,936,287
(253,948)
(253,948)
(253,948)
1,786 139,293 5,575
(253,948)
146,654
1,786 139,293 5,575
156,652 (3,367,927) (610,218)
146,654
(3,821,493)
203,608 28,913,882 1,398,581 30,516,071
360,260 $ 25,545,955 $ 788,363 $ 26,694,578
360,260 $ 25,545,955 $
788,363 $ 26,694,578
166
Indian River County, Florida
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended September 30, 2016
Fleet Self Information
Management Insurance Technology Totals
RECONCILIATION OF OPERATING
INCOME (LOSS) TO NET CASH
PROVIDED BY OPERATING ACTIVITIES
Operating income (loss) $ 86,694 $ (701,763) $ (506,279) $ (1,121,348)
Adjustments to reconcile operating income (loss) to
net cash provided by operating activities:
Depreciation 6,677 217 163,426 170,320
(Increase) Decrease in assets:
Accounts receivable (41,484) 171,613 - 130,129
Due from other funds - (349,437) - (349,437)
Due from other governments (1,325) (2,625) (3,950)
Inventories (13,741) - - (13,741)
Deposits (8,961,491) (2,191) (8,963,682)
Increase (Decrease) in liabilities:
Accounts payable 114,187 (30,975) 8,288 91,500
Claims payable - 335,000 - 335,000
Net pension liability 12,856 6,454 24,787 44,097
Accrued compensated absences 4,219 6,219 20,188 30,626
Total adjustments 81,389 (8,825,025) 214,498 (8,529,138)
Net cash provided by (used in) operating activities $ 168,083 $ (9,526,788) $ (291,781) $ (9,650,486)
NONCASH CAPITAL AND RELATED
FINANCING ACTIVITIES
Change in fair value of investments $ 589 $ 38,377 $ 1,294 $ 40,260
167
168
FIDUCIARY FUND
Agency Fund- To account for the assets held solely in a custodial.
capacity by the County.
169
Indian River County, Florida
Combining Statement of Changes in Assets and Liabilities
Agency Fund
For the Fiscal Year Ended September 30, 2016
ASSETS
Cash and investments
Total assets
Balance Balance
October 1, September 30,
2015 Additions Deductions 2016
$ 10,242,685 $ 358,007,428 $ 357,566,029 $ 10,684,084
$ 10,242,685 $ 358,007,428 $ 357,566,029 $ 10,684,084
LIABILITIES
Due to other governments $ 4,493,810 $ 363,265,896 $ 362,386,179 $ 5,373,527
Other deposits held in escrow 5,748,875 26,920,130 27,358,448 5,310,557
Total liabilities $ 10,242,685 $ 390,186,026 $ 389,744,627 $ 10,684,084
170
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 Page(s)
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 - 14)
These schedules present information to help the reader assess the affordability of
the County's current levels of outstanding debt and the County's ability to issue
additional debt in the future.
Demographic and Economic Information (Schedules 15 - 16)
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the County's financial activities take
place.
Operating Information (Schedules 17 - 20)
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 21- 25)
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 report for the relevant year.
171
172-182
183-187
188-195
196-197
198-209
210-214
Indian River County, Florida
Net Position by Component (Unaudited)
Last Ten Fiscal Years
(accrual basis of accounting)
Governmental activities
Net investment in capital assets
Restricted
Unrestricted
Total governmental activities net pos
Business -type activities
Net investment in capital assets
Restricted
Unrestricted
2007 2008
$ 374,501,758 (A) $
173,236,941 (B)
60,726,026 (B)
on $ 608,464,725 $
Total business -type activities net position
Primary government
Net investment in capital assets
Restricted
Unrestricted
$ 174,540,682
83,840,471
47,338,783
305,719,936
$ 549,042,440
257,077,412
108,064,809
Total primary government net position $ 914,184,661
2009
2010
445,541,175 $
163,119,085
55,081,576
663,741,836 $
461,709,848 $
158,306,364
55,914,407
675,930,619 $
480,243,738
132,928,838
85,810,359
698,982,935
$ 206,069,196 $
75,814,407
24,624,779
306,508,382 $
223,273,040 $
51,021,928
37,122,462
311,417,430 $
223,375,337
27,898,292
54,592,201
305,865,830
$ 651,610,371 $
238,933,492
79,706,355
684,982,888 $
209,328,292
93,036,869
703,619,075
160,827,130
140,402,560
970,250,218 $
987,348,049 $
1,004,848,765
(A) Completed construction and renovations for beach renourishment, County
administration buildings, emergency operations center, five fire stations,
County park improvements, and the purchase of environmentally sensitive
lands.
(B) The County reclassified special revenue funds from unrestricted to
restricted net position.
(C) The County reclassified water and sewer funds from restricted to
unrestricted net position.
172
Schedule 1
2011 2012 2013 2014 2015 2016
492,300,301 $
125,452,516
84,860,897
702,613,714 $
509,076,923
121,189,228
76,523,757
706,789,908
217,876,742 $ 211,631,529
24,230,101 17,941,773
61,041,483 70,286,599
303,148,326 $ 299,859,901
710,177,043
149,682,617
145,902,380
$ 1,005,762,040
$ 720,708,452
139,131,001
146,810,356
$ 1,006,649,809
$ 518,255,719 $
117,321,755
71,830,421
707,407,895 $
514,764,316
116,203,827
72,873,567
703,841,710
$ 210,772,860 $
20,871,037
68,686,611
300,330,508 $
$ 520,214,002
128,580,087
7,158,887
$ 655,952,976
$ 533,304,941
132,069,178
5,985,180
$ 671,359,299
211,660,190 $ 213,114,279 $ 206,497,575
88,420,541 91,057,348 100,336,692
300,080,731 $ 304,171,627 $ 306,834,267
- (C)
729,028,579 $
13 8,192,792
140,517,032
726,424,506
116,203,827
161,294,108
$ 733,328,281
128,580,087
98,216,235
$ 739,802,516
132,069,178
106,321,872
1,007,738,403 $ 1,003,922,441 $ 960,124,603 $ 978,193,566
173
Indian River County, Florida
Changes in Net Position (Unaudited)
Last Ten Fiscal Years
(accrual basis of accounting)
2007 2008 2009 2010
Expenses
Governmental activities:
General government $ 15,506,424 $ 7,416,850 $ 25,837,007 $ 23,506,576
Public safety 42,050,455 (E) 70,973,212 (F) 71,221,082 68,235,492
Physical environment 34,998,512 (A) 27,974,837 813,580 1,405,690
Transportation 26,173,989 25,742,974 23,711,653 20,861,672
Economic environment 950,024 4,583,763 (G) 661,897 2,525,988
Human service 13,925,599 12,590,578 8,453,562 7,370,995
Cultural/recreation 31,196,252 (C) 9,510,029 24,559,117(1) 16,009,122
Court related 6,870,466 7,265,471 6,765,203 6,251,773
Interest on long-term debt 3,220,907 (B) 2,764,803 2,906,802 2,714,422
Total governmental activities expenses 174,892,628 168,822,517 164,929,903 148,881,730
Business -type activities:
Water and sewer 37,518,226 41,354,025 (H) 37,523,097 34,748,276
Solid waste 10,331,431 11,355,697 10,407,437 10,683,984
Golf course 3,084,837 2,775,497 2,937,141 2,715,607
Other 3,703,658 3,010,668 2,168,894 1,858,420
Total business -type activities expenses 54,638,152 58,495,887 53,036,569 50,006,287
Total primary government expenses $ 229,530,780 $ 227,318,404 $ 217,966,472 $ 198,888,017
Program Revenues
Governmental activities:
Charges for services:
General government $ 7,957,770 $ 6,943,354 $ 6,028,321 $ 5,889,678
Public safety 5,728,644 5,754,082 5,884,118 5,267,209
Physical environment 1,447,553 972,865 636,219 21,006
Transportation 5,618,055 5,478,734 2,157,456 (K) 1,514,132 (K)
Human service 545,305 331,856 204,299 295,812
Cultural/recreation 2,425,679 1,730,471 1,322,785 1,328,225
Court related 2,800,680 2,971,093 2,375,430 545,967
Operating grants and contributions 25,561,608 (D) 15,227,659 11,077,388 15,772,265 (L)
Capital grants and contributions 13,441,915 29,165,641 (I) 15,032,731 7,016,429 (M)
Total governmental activities program revenues 65,527,209 68,575,755 44,718,747 37,650,723
Business -type activities:
Charges for services:
Water and sewer 27,541,849 27,876,971 26,957,649 27,738,920
Solid waste 11,946,566 10,758,812 9,713,883 8,972,136
Golf course 3,374,772 3,313,994 3,279,135 3,148,029
Other 3,250,585 2,726,888 1,572,693 1,612,870
Operating grants and contributions 72,828 217,751 1,194,994 -
Capital grants and contributions 9,729,371 10,802,859 3,748,585 1,713,074
Total business -type activities program revenues 55,915,971 55,697,275 46,466,939 43,185,029
Total primary government program revenues $ 121,443,180 $ 124,273,030 $ 91,185,686 $ 80,835,752
Notes:
(A) Environmentally sensitive lands purchased with bond proceeds.
(13) Issued new Limited G.O.S. debt for $48,600,000.
(C) Completed sections of beach renourishment program.
(D) Grants received for beach renourishment, environmental sensitive lands, and various road projects.
(E) Includes adjustment for prior years' public safety expenses.
(F) Includes full year impact of increase in personnel, raiscs, and the depreciation and operating cost of new jail.
(G) Piper incentive of $4 million.
(H) Increase in operating costs due to maintenance projects.
(I) Received $ 16 million grant reimbursements for physical environment grants including beach restoration and stormwater.
(J) Increase due to $5 million contribution towards joint use library and increased depreciation for beach restoration projects.
(K) Decrease due to reduced impact fees collections (slowdown in construction activity).
(L) Received Neighborhood Stabilization Grant of $2.6 million.
(M) Contribution of $4.2 milion for Sector 3 beach renourishment from Sebastian Inlet District.
(N) State Shared Revenues reclassified to operating grants and contributions.
174
Schedule 2
2011 2012 2013 2014 2015 2016
$ 21,324,680 $ 19,069,181 $ 20,637,750 $ 22,968,835 $ 24,732,636 $ 27,472,414
67,393,943 66,456,674 66,178,467 66,954,956 66,364,113 77,587,638
1,353,074 2,424,109 1,858,307 1,031,710 1,636,749 1,457,248
22,300,819 23,629,799 26,286,998 23,577,720 25,992,461 28,221,515
2,056,453 1,986,091 2,550,157 1,084,204 421,057 427,227
7,762,962 7,749,253 6,818,023 7,136,042 7,352,777 7,790,430
16,484,242 18,089,432 19,369,326 16,610,269 17,011,188 14,713,304
5,774,032 5,635,245 5,835,184 6,360,814 6,677,054 7,077,295
2,526,114 2,350,241 2,087,204 1,944,229 1,013,527 938,123
146,976,319 147,390,025 151,621,416 147,668,779 151,201,562 165,685,194
33,818,640 34,246,967 33,815,749 35,821,287 35,223,882 35,420,291
10,370,476 10,659,004 10,405,143 10,801,408 11,708,383 12,714,713
2,537,665 2,451,603 2,537,525 2,588,424 2,498,397 2,605,612
1,623,862 1,487,515 1,547,815 1,833,528 7,085,190 2,724,650
48,350,643 48,845,089 48,306,232 51,044,647 51,515,852 53,465,266
$ 195,326,962 $ 196,235,114 $ 199,927,648 $ 198,713,426 $ 202,717,414 $ 219,150,460
$ 5,845,567 $ 5,304,385 $ 5,482,814 $ 5,895,424 $ 6,641,363 $ 7,192,821
6,076,085 5,852,093 6,625,924 8,025,849 6,457,584 8,244,224
24,204 20,923 5,900 20,970 - 9,153
2,090,194 2,345,186 2,768,107 3,365,961 4,273,591 4,508,637
346,689 358,279 213,485 211,294 277,279 165,041
1,340,550 1,397,660 1,765,912 1,883,347 1,941,993 2,405,951
501,980 414,356 1,301,135 3,592,298 3,308,235 2,394,385
7,926,832 8,230,411 26,921,514 (N) 22,229,254 24,872,734 24,587,446
1,937,488 7,053,494 6,681,421 7,521,538 11,671,085 5,969,099
26,089,589 30,976,787 51,766,212 52,745,935 59,443,864 55,476,757
27,842,092 28,361,246 28,522,667 29,565,901 30,089,101 31,089,758
9,221,396 9,582,955 9,998,410 10,272,415 11,455,302 13,345,745
3,163,062 3,216,471 3,072,332 3,080,960 3,235,879 3,230,630
1,588,934 1,735,713 2,018,104 2,417,724 2,958,488 3,406,022
1,923,271 2,545,759 4,700,473 5,032,042 8,616,416 5,035,914
43,738,755 45,442,144 48,311,986 50,369,042 56,355,186 56,108,069
69,828,344 $ 76,418,931 $ 100,078,198 $ 103,114,977 $ 115,799,050 $ 111,584,826
Continued
175
Indian River County, Florida
Changes in Net Position (Unaudited)
Last Ten Fiscal Years
(accrual basis of accounting)
Net (Expense)/Revenue
Governmental activities
Business -type activities
2007 2008 2009 2010
$ (109,365,419)
1,277,819
Total primary government net expenses $ (108,087,600)
$ (100,246,762) $ (120,211,156) $ (111,231,007)
(2,798,612) (6,569,630) (6,821,258)
$ (103,045,374) $ (126,780,786) $ (118,052,265)
General Revenues and Other Changes in Net Position
Governmental activities:
Property taxes, levied for general purposes $ 92,592,309 $ 92,483,561 $ 87,265,989 $ 78,670,463
Property taxes, levied for debt service 7,094,485 7,343,180 7,131,231 5,933,535
Sales and use taxes 20,738,502 20,088,899 19,292,179 19,022,728
Franchise fees 9,732,773 9,443,399 9,670,169 9,254,621
State shared revenues 12,368,421 11,596,227 11,227,450 17,487,653
Insurance recoveries - - - -
Interest earnings 16,004,890 10,347,019 5,747,573 2,079,873
Miscellaneous 1,583,343 2,170,033 2,018,901 2,061,415
Transfers (106,295) 2,051,555 (7,452,905) (25,965)
Total governmental activities 160,008,428 155,523,873 134,900,587 134,484,323
Business -type activities:
State shared revenues - - 417,500
Interest earnings 9,209,517 5,553,239 3,685,805 1,173,512
Miscellaneous 134,656 85,374 7,893 70,181
Transfers 106,295 (2,051,555) 7,452,905 25,965
Total business -type activities 9,450,468 3,587,058 11,564,103 1,269,658
Total primary government
Change in Net Position
Governmental activities
Business -type activities
Total primary government change in net position
$ 169,458,896 $ 159,110,931 $ 146,464,690 $ 135,753,981
$ 50,643,009 $ 55,277,111 $ 14,689,431 $ 23,253,316
10,728,287 788,446 4,994,473 (5,551,600)
61,371,296 $ 56,065,557 $ 19,683,904 $ 17,701,716
Notes:
(A) Gain on sale of capital assets due to the privatization of the County landfill.
(B) State Shared Revenues reclassified to operating grants and contributions.
176
Schedule 2
2011 2012 2013 2014 2015 2016
$ (120,886,730) $ (116,413,238) $ (99,855,204) $ (94,922,844) $ (91,757,698) $ (110,208,437)
(4,611,888) (3,402,945) 5,754 (675,605) 4,839,334 2,642,803
$ (125,498,618) $ (119,816,183) $ (99,849,450) $ (95,598,449) $ (86,918,364) $ (107,565,634)
$ 69,856,750 $ 64,753,566 $ 62,305,177 $ 67,985,321 $ 71,825,109 $ 80,100,810
5,600,767 5,574,183 4,664,885 4,730,556 4,795,927 4,594,381
19,261,033 20,144,820 21,035,360 21,860,958 23,549,042 24,387,340
8,730,861 8,620,401 8,818,952 9,310,711 9,180,652 9,273,567
17,328,867 17,908,806 - (B) - -
1,299,894 668,012 637,099 542,542 1,051,822 1,333,048
3,082,481 3,079,701 2,903,771 2,459,033 1,799,538 5,141,162
(643,144) (32,957) - (44,000) (3,057,421) 784,452
124,517,509 120,716,532
100,365,244 106,845,121
109,144,669 125,614,760
723,870 (A) 600,116 427,041 381,497 625,525 791,683
562,651 8,400 37,812 331 56,887 12,606
643,144 32,957 - 44,000 3,057,421 (784,452)
1,929,665 641,473 464,853 425,828 3,739,833 19,837
126,447,174 $ 121,358,005 $ 100,830,097 $ 107,270,949 $ 112,884,502 $ 125,634,597
$ 3,630,779 $ 4,303,294 $ 510,040 $ 11,922,277 $ 17,386,971 $ 15,406,323
(2,682,223) (2,761,472) 470,607 (249,777) 8,579,167 2,662,640
$ 948,556 $ 1,541,822 $ 980,647 $ 11,672,500 $ 25,966,138 $ 18,068,963
177
Indian River County, Florida
Fund Balances, Governmental Funds (Unaudited)
Last Ten Fiscal Years
(modified accrual basis of accounting)
2007 2008 2009 2010(A)
General Fund
Reserved $ - $ 8,000,000 $ 8,000,000 $ N/A
Unreserved 50,321,956 44,874,259 47,616,773 N/A
Total general fund
50,321,956 $ 52,874,259 $ 55,616,773 $ N/A
All other governmental funds
Reserved $ 23,047,708 $ 49,667,320 $ 53,252,040 $ N/A
Unreserved, reported in: N/A
Special revenue funds 149,564,925 96,950,614 91,600,421 N/A
Total all other governmental funds $ 172,612,633 $ 146,617,934 $ 144,852,461 $ N/A
Total governmental funds
$ 222,934,589 $ 199,492,193 $ 200,469,234 $ N/A
General Fund
Nonspendable $ 162,760
Restricted 18,290
Committed 21,757,565
Assigned 1,415,000
Unassigned 33,160,873
Total general fund $ 56,514,488
All other governmental funds
Nonspendable $ 2,316,373
Restricted 130,175,284
Committed 4,691,573
Assigned 9,471,022
Unassigned (1,184,722)
Total all other governmental funds $ 145,469,530
Total governmental funds $ 201,984,018
Notes:
(A) The County implemented GASB Statement 54, Fund Balance Reporting and Governmental Fund Types, in fiscal year
2010.
(B) Reclassified emergency/disaster and budget stabilization reserves from Committed to Unassigned fund balance
categories.
(C) Budget appropriation of fund balance to balance budget no longer necessary.
178
Schedule 3
2011
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
363,619
50,015
21,041,045
1,660,000
33,694,612
$ 56,809,291
814,858
125,082,370
4,661,146
10,013,457
(354,995)
140,216,836 $ 129,506,095
2012
N/A $
N/A
N/A $
N/A $
N/A
N/A
N/A $
N/A $
311,241 $
1,120,087
2,374,790 (B)
1,808,000
48,722,929 (B)
$ 54,337,047 $
557,128
116,379,943
1,483,393
11,288,602
(202,971)
197,026,127 $ 183,843,142
2013 2014 2015 2016
N/A $ N/A
N/A N/A
N/A $ N/A
N/A $ N/A $
N/A N/A
N/A N/A
N/A $ N/A
N/A $ N/A
1,224,835 $
1,000,000
2,370,079
900,000
44,385,674
49,880,588 $
50,788 $
112,523,743
1,481,312
8,964,238
(339,223)
122,680,858 $
N/A $ N/A
N/A N/A
N/A $ N/A
N/A $ N/A
N/A N/A
N/A N/A
N/A $ N/A
N/A $ N/A
1,134,846 $ 459,546 $ 371,121
1,000,000 1,000,000 1,000,000
1,223,183 1,092,575 1,166,830
- (C) -
48,320,836 47,727,109 45,909,787
51,678,865 $ 50,279,230 $ 48,447,738
39,337
112,266,321
1,492,929
8,139,695
_201,587
121,736,695
69,907 $ 121,906
120,531,318 127,285,732
1,504,391 1,401,530
7,139,358 7,118,688
(439,479)
128,805,495 $ 135,927,856
172,561,446 $ 173,415,560 $ 179,084,725 $ 184,375,594
179
Indian River County, Florida
Changes in Fund Balances, Governmental Funds (Unaudited)
Last Ten Fiscal Years
(modified accrual basis of accounting)
Revenues
Taxes
Permits, fees, and special assessments
Intergovernmental
Charges for services
Judgments, fines and forfeits
Interest
Miscellaneous
Total Revenues
Expenditures
Current:
General government
Public safety
Physical environment
Transportation
Economic environment
Human service
Culture/recreation
Court related
Debt service:
Principal
Interest and fiscal charges
Capital outlay
Total Expenditures
Excess of revenues over
(under) expenditures
Other Financing Sources (Uses)
Debt issuance
Issuance of refunding notes
Payments from capital leases
Transfers out
Payments to refunded bond escrow agent
Transfers in
Total other financing sources (uses)
Net change in fund balances
Debt service as a percentage of
noncapital expenditures
2007 2008
$ 130,158,069
8,397,437
54,252,074
18,997,529
2,403,093
15,777,318
3,495,610
130,1.58,069
8,397,437
54,252,074
18,997,529
2,403,093
15,777,318
3,495,610
233,481,130 233,481,130
2009
113,689,399
12,433,598
34,305,682
16,852,653
1,792,517
5,721,869
2,489,532
2010
$ 103,626,726
11,322,039
37,687,574
14,665,805
852,012
2,061,385
2,383,493
187,285,250 172,599,034
24,815,255 24,815,255 22,566,113 20,894,116
72,907,822 72,907,822 74,813,164 71,489,613
34,324,331 34,324,331 910,213 1,131,173
49,503,680 49,503,680 38,111,512 27,497,907
968,227 968,227 653,547 2,520,339
13,862,463 13,862,463 8,621,760 7,267,406
23,751,173 23,751,173 15,450,688 18,453,642
6,649,724 6,649,724 6,620,830 6,214,831
4,870,876 4,870,876 5,120,000 5,315,000
3,255,767 3,255,767 2,948,758 2,758,138
42,489,997 42,489,997 10,435,212 7,487,068
277,399,315 277,399,315 186,251,797 171,029,233
(43,918,185) (43,918,185) 1,033,453 1,569,801
264,467 264,467 -
(19,736,023) (19,736,023) (14,366,145) (17,057,014)
19,629,728 19,629,728 14,309,733 17,001,997
158,172 158,172
$ (43,760,013) $ (43,760,013)
4.8% 4.8%
(56,412)
977,041
(A) Early call of remaining General Obligation Bonds, Series 2001 of $3.6 million.
(B) Payoff of portion of Spring Training Bonds, Series 2001 of $2.275 million.
(C) Refunded all of General Obligation Bonds, Series 2006 with a fixed rate 7 -year note.
(D) Completed widening of major north -south road.
180
5.4%
(55,017)
1,514,784
5.6%
Schedule 4
2011 2012 2013 2014 2015 2016
94,718,550
11,189,393
30,453,182
15,030,329
936,995
1,173,103
4,175,614
90,472,569
11,486,235
29,759,832
14,760,125
739,275
613,023
5,237,426
157,677,166 153,068,485
19,271,196
70,432,615
1,371,734
28,432,207
2,099,698
7,625,369
14,706,194
5,983,085
4,270,000
2,562,374
5,825,287
20,477,898
67,761,985
1,751,623
29,058,310
2,021,184
6,888,883
13,808,303
5,860,925
8,060,000 (A)
2,426,083
8,108,370
162,579,759 166,223, 564
(4,902,593) (13,155,079)
(8,918,267)
8,862,969
88,005,422
12,769,844
30,086,479
15,887,241
778,575
570,559
3,841,294
151,939,414
19,056,322
66,908,328
771,942
28,223,229
2,581,401
6,952,460
11,538,809
6,054,822
6,050,000 (B)
2,118,704
13,037,552
163,293,569
(11,354,155)
(11,622,984) (12,540,187)
11,595,078 12,504,699
(55,298) (27,906)
(4,957,891 $ (13,182,985)
(35,488)
$ (11,389,643)
94,585,345
14,321,389
30,563,650
18,076,888
1,004,374
463,274
3,221,548
162,236,468
$ 100,170,078 $ 109,082,531
15,567,731 16,530,179
32,065,821 33,535,027
18,558,182 15,532,928
897,860 1,672,773
894,705 1,133,215
2,470,553 8,158,393
170,624,930
185,645,046
20,681,570 22,957,111 22,693,234
67,799,667 71,703,248 77,316,218
781,306 1,055,021 788,803
23,321,248 27,945,569 27,505,659
1,106,886 436,320 424,593
7,178,542 7,519,756 7,868,392
11, 627,286 15,719,709 13, 562,765
6,487,906 6,677,909 6,605,682
3,700,000 4,180,000 4,383,000
1,984,616 1,266,070 832,007
16,560,991 5,309,597 (D) 13,329,391
161,230,018 164,770,310 175,309,744
1,006,450 5,854,620 10,335,302
20,369,000 20,369,000 (C)
(10,244,980) (11,354,519) (17,375,606)
(20,340,959) (C)
10,092,644 11,141,023
20,216,664
21,223,114
(185,455)
$ 5,669,165
12,331,173
(5,044,43
5,290,869
5.0% 7.6% 6.0% 4.3% 3.8% 3.6%
181
Indian River County, Florida
Tax Revenues by Source, Governmental Funds (Unaudited)
Last Ten Fiscal Years
(modified accrual basis of accounting)
Schedule 5
Fiscal Year
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Property (A) Sales & Use Tourist Franchise (B) Gasoline
$ 99,686,794 $ 14,549,834 $ 1,449,083 $ 9,732,773 $ 3,482,514 $
99,826,741 13,714,228 1,584,514 - 3,218,705
94,397,220 13,023,095 1,294,163
84,603,998 12,660,518 1,324,953
75,457, 517 12,942,483 1,487,060
70,327,749 13,708,911 1,604,920
66,970,062 14,422, 829 1,743,283
72,715, 877 15,228,3 04 1,918,201
76,621,036 16,190,352 2,267,101
84,695,191 16,858,894 2,433,491
- 3,369,962
- 3,498,698
3,346,362
3,329,183
3,303,751
- 3,294,709
- 3,672,972
- 3,741,935
Other Total
1,257,071 $
1,571,452
1,604,959
1,538,559
1,485,128
1,501,806
1,565,497
1,428,254
1,418,617
1,353,020
119,915,640
113,689,399
103,626,726
94,718,550
90,472,569
88,005,422
94,585,345
100,170,078
109,082,531
109,082,531
(A) The County 's primary source of revenue is property taxes, amounting to 78 percent of Governmental Funds tax revenues
in 2016. Consequently, supplemental required schedules are provided only for property tax revenues.
(B) Effective 10/01/07, the State of Florida changed its uniform accounting manual to remove franchise fees from the taxes
designation.
182
Indian River County, Florida
Assessed Value and Actual Value of Taxable Property (Unaudited)
Last Ten Fiscal Years
Schedule 6
Real Personal Less: Total Taxable Total
Fiscal Property Property Total Tax -Exempt Assessed Direct
Year Actual Value Actual Value Actual Value Property Value Tax Rate
2007 $ 25,458,676,130 $ 755,187,275 $ 26,213,863,405 $ 8,366,701,791 $ 17,847,161,614 4.3250
2008 25,155,652,635 782,529,196 25,938,181,831 7,357,884,893 18,580,296,938 4.1037
2009 24,141,420,963 739,467,578 24,880,888,541 7,431,618,464 17,449,270,077 4.1493
2010 21,272,439,325 761,011,306 22,033,450,631 6,237,291,938 15,796,158,693 4.1666
2011 18,741,543,869 711,180,228 19,452,724,097 5,313,689,267 14,139,034,830 4.1625
2012 17,291,910,945 644,205,795 17,936,116,740 4,731,112,173 13,205,004,567 4.1625
2013 16,563,604,291 635,119,066 17,198,723,357 4,497,471,382 12,701,251,975 4.1625
2014 16,832,196,339 697,294,522 17,529,490,861 4,670,052,667 12,859,438,194 4.3353
2015 17,855,660,837 696,658,855 18,552,319,692 5,150,260,231 13,402,059,461 4.4108
2016 19,941,465,452 698,630,083 20,640,095,535 6,338,690,254 14,301,405,281 4.4335
Source: Indian River County Property Appraiser; values are established as of January 1 of the previous
calendar year, i.e., January 1, 2015 taxable values apply to the fiscal year ending September 30, 2016.
The actual value is based upon market values in the area. Property is assessed at the actual values less
various exemptions for homestead, age, disability, widows, religious, charitable, educational and
governmental situations.
Total taxable values are also presented on Schedules 8 and 11.
183
Indian River County, Florida
Property Tax Rates
Direct and Overlapping Tax Rates (Unaudited)
Last Ten Fiscal Years
County direct rate
General fund
Municipal service
Total direct rate (A)
County -wide district school board rate
Other County -wide rates
Emergency Management Services District
Land acquisition bond
Total other County -wide rates
Total County -wide rate (B)
2007 2008 2009 2010
3.1914 3.0202 3.0689 3.0892
1.1336 1.0835 1.0804 1.0774
4.3250 4.1037 4.1493 4.1666
7.4430 7.5380 7.0400 7.5960
1.7639 1.7201 1.7148 1.7148
0.4108 0.4082 0.4220 0.3879
2.1747 2.1283 2.1368 2.1027
13.9427 13.7700 13.3261 13.8653
City rates
Fellsmere 5.7500 4.4301 4.4300 4.4300
Indian River Shores 1.4730 1.3923 1.3923 1.3923
Sebastian 3.0519 2.9917 3.3456 3.3456
Orchid 0.4525 0.4494 0.4550 0.4550
Vero Beach 2.1425 1.9367 1.9367 1.9367
Average of cities rates 2.5740 2.2400 2.3119 2.3119
Other special district rates
1.4795 1.3817 1.5362 1.7515
(A) Per Florida State Statute 200.081, 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.
(B) Total County -wide rate is borne by all property owners within the County boundaries.
Source: Indian River County Property Appraiser
184
Schedule 7
2011 2012 2013 2014 2015 2016
3.0892 3.0892 3.0892
1.0733 1.0733 1.0733
3.2620 3.3375 3.3602
1.0733 1.0733 1.0733
4.1625 4.1625 4.1625
4.3353 4.4108 4.4335
8.2500 8.2440 8.3130
8.1160 7.9950 7.9550
1.7148 1.7148 1.7148
0.4087 0.4364 0.3799
1.9799 1.9799 2.2551
0.3788 0.3694 0.3315
2.1235 2.1512 2.0947
2.3587 2.3493 2.5866
14.5360 14.5577 14.5702
14.8100 14.7551 14.9751
4.4300 5.2455 5.4999
1.4105 1.4731 1.4731
3.3041 3.3041 3.7166
0.4550 0.4550 0.5000
1.9367 2.0336 2.0336
2.3073 2.5023 2.6446
1.7663 1.6856 1.6859
185
5.6190 5.5309 5.2756
1.4731 1.6786 1.6786
3.7166 3.8556 3.8556
0.4864 0.5500 0.7000
2.0336 2.0336 2.3800
2.6657 2.7297 2.7780
1.7128 1.7124 1.6993
Indian River County, Florida
Principal Property Taxpayers (Unaudited)
Year 2016 and Year 2007
Schedule 8
2016 2007
Real Percentages Real Percentages
Property of Total Property of Total
Assessed Assessed Assessed Assessed
Ta payer Valuation Rank Valuation Valuation Rank Valuation
Florida Power & Light $ 126,936,400 1 0.89% $ 107,980,290 1 0.61%
Disney Vacation Dev. Inc. 77,307,630 2 0.54 80,826,709 2 0.45
Windsor Properties 51,704,720 3 0.36 42,937,258 6 0.24
Johns Island Club Inc. 39,574,422 4 0.28 40,563,212 7 0.23
Bellsouth Communications 33,974,999 5 0.24 63,599,672 3 0.36
McGuire, Allen Robert Jr. 31,078,330 6 0.22
Health Care REIT 26,267,550 7 0.18 - -
MHC Village Green 22,366,216 8 0.16 - -
Vero Acquisition 22,206,200 9 0.16 -
Wells Fargo Bank 21,733,313 10 0.15 -
Indian River Mall Assoc., Inc. - - 56,688,230 4 0.32
ARC/DRCM Vero Beach FL, LLC - - 52,391,770 5 0.29
Adult Community Total Services - - 37,534,750 8 0.21.
Wal-Mart - - 34,620,231 9 0.19
Fellsmere Joint Venture - - 30,287,490 10 0.17
Total Principal Property Taxpayers
Real Property Assessed Valuation $ 453,149,780 3.18% $ 547,429,612 3.07%
Total County Taxable Valuation
(from schedule 6)
14,301,405,281 $ 17,847,161,614
Source: Indian River County Property Appraiser
186
Indian River County, Florida
Property Tax Levies And Collections (Unaudited)
Last Ten Fiscal Years
Schedule 9
Year
Percent of Percent of
Total Current Current Tax Delinquent Total Total Tax
Tax Tax Collections Tax Tax Collections
Levy Collections To Tax Levy Collections L1j Collections To Tax Levy
2007 $ 102,986,045 $ 99,404,127 96.52% $ 61,566 $ 99,465,693 96.58%
2008 103,700,766 99,716,496 96.16 48,241 99,764,737 96.20
2009 97,439,623 94,107,423 96.58 273,002 94,380,425 96.86
2010. 87,360,868 84,431,741 96.65 171,392 84,603,133 96.84
2011 77,790,733 75,215,452 96.69 290,472 75,505,924 97.06
2012 72,668,518 70,200,922 96.60 133,385 70,334,307 96.79
2013 69,251,173 66,838,348 96.52 111,341 66,949,689 96.68
2014 75,101,883 72,572,593 96.63 149,546 72,722,139 96.83
2015 79,309,078 76,537,192 96.50 91,754 76,628,946 96.62
2016 87,611,062 84,648,230 96.62 60,147 84,708,377 96.69
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 1 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 seven 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 County includes those interest earnings as part of the
total tax collection.
187
Indian River County, Florida
Ratios of Outstanding Debt by Type (Unaudited)
Last Ten Fiscal Years
Governmental Activities Business -type Activities
General Spring Training Recreational
Obligation Capital Facility Bonds Revenue Capital Water & Sewer
Year Bonds (A) Leases 2001 Series Bonds (B) Leases Bonds (C)
2007 $ 58,441,835 $ 8,591 $ 14,000,000 $ 4,618,728 $ 110,025 $ 59,908,097
2008 53,958,611 - 13,455,000 4,138,356 28,126 57,285,080
2009 49,305,387 - 12,895,000 3,652,985 56,123,413
2010 44,482,163 - 12,310,000 3,147,614 - 53,016,507
2011 40,723,939 - 11,705,000 2,632,243 - 49,789,603
2012 33,200,714 - 11,075,000 2,101,871 - 46,462,698
2013 29,987,489 - 8,145,000 - - 43,020,793
2014 26,639,265 - 7,700,000 - 39,433,889
2015 23,594,000 - 7,230,000 - - 28,252,234
2016. 19,706,000 - 6,735,000 - - 25,198,884
(A) General Obligation Bonds include Series 2001 and Limited General Obligation Bonds, Series 2006.
The remaining balance of the 2001 issue was called early on July 1, 2012. The Series 2006 bonds
were refinanced in fiscal year 2015. This information is also presented on Schedules 11 and 13.
(B) Recreational Revenue Refunding Bonds, Series 2003. The remaining balance was called early on
September 30, 2013.
(C) Water & Sewer Bonds include Series 1993, Refunding Series 2005, and Series 2009. The Series 2005
bonds were refinanced in fiscal year 2015..
(D) Information not available.
(E) Refer to Schedule 15 for personal income and population information.
Further information may be found in Note 12.
Source of per capita income is University of Florida, Bureau of Economic and Business Research.
188
Schedule 10
Percentage
Total of Total Debt Debt
Primary to Personal Per
Government Income (E) Capita (E)
$ 137,087,276 1.76% $ 981
128,865,173 1.68 910
121,976,785 1.60 862
112,956,284 1.69 818
104,850,785 1.48 756
92,840,283 1.25 666
81,153,282 1.05 581.
73,773,154 0.81 523
59,076,234 0.59 412
51,639,884 (D) 353
189
Indian River County, Florida
Ratio of Net General Bonded Debt Outstanding to Taxable Value and Net Bonded Debt per Capita (Unaudited)
Last Ten Fiscal Years Schedule 11
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
2007 139,757 $ 17,847,161,614 $ 58,441,835 $ 1,956,189 $ 56,485,646 0.0032 $ 404.1704
2008 141,667 18,580,296,938 53,958,611 2,530,612 51,427,999 0.0028 363.0203
2009 141,475 17,449,270,077 49,305,387 2,841,769 46,463,618 0.0027 328.4228
2010 138,028 15,796,158,693 44,482,163 1,845,314 42,636,849 0.0027 308.9000
2011 138,694 14,139,034,830 40,723,939 1,743,781 38,980,158 0.0028 281.0515
2012 139,446 13,205,004,567 33,200,714 1,002,540 32,198,174 0.0024 230.9007
2013 139,586 12,701,251,975 29,987,489 828,029 29,159,460 0.0023 208.8996
2014 140,955 12,859,438,194 26,639,265 832,464 25,806,801 0.0020 183.0854
2015 143,326 13,402,059,461 23,594,000 967,599 22,626,401 0.0017 157.8667
2016 146,410 14,301,405,281 19,706,000 1,114,234 18,591,766 0.0013 126.9843
(A) Columns are provided as additional information for General Obligation Bonds (G.O.B.), Series 2001 and Limited
G.O.B., Series 2006. The remaining balance of the 2001 issue was called early on July 1, 2012. The Series 2006 debt was
refinanced in fiscal year 2015.
Gross G.O.B. debt is also presented on Schedules 10 and 13.
Total taxable assessed values also appear on Schedule 6 and 8.
Source of population data is the University of Florida, Bureau of Economic and Business Research.
190
Indian River County, Florida
Computation of Legal Debt Margin (Unaudited)
September 30, 2016
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.
191
Indian River County, Florida
Direct and Overlapping Governmental Activities Debt (Unaudited)
September 30, 2016
Schedule 13
Governmental Unit
Debt repaid with property taxes:
Share of
Debt Percentage Overlapping
Outstanding Applicable Debt
Indian River County Limited General Obligation Refunding Note,
Series 2015 $ 19,706,000 100% $ 19,706,000
Revenue Bonds - Spring Training Facility - Series 2001 6,735,000 100 6,735,000
Total direct debt of County: 26,441,000
Other debt:
Indian River County School District Certificates of Participation 122,397,927 (A) 100 122,397,927
Total overlapping debt: 122,397,927
Total direct and overlapping debt: $ 148,838,927
(A) Indian River County School District, as of June 30, 2016
Source: Information on outstanding debt provided by the Indian River County School District Finance Department.
Note: Overlapping debt is borne by all property owners within the County boundaries.
192
193
Indian River County, Florida
Pledged Revenue Coverage (Unaudited)
Water and Sewer Revenue Bonds
(Series 1993A, 1996, 2005, 2009)
Last Ten Fiscal Years
2007 2008 2009 2010
Uniform Charges
Water sales $ 13,529,341 $ 13,435,398 $ 13,001,743 $ 13,570,657
Wastewater sales 12,003,677 12,128,706 11,954,333 12,375,346
Other 1,386,198 1,460, l43 1,285,605 1,430,966
Total uniform charges 26,919,216 27,024,247 26,241,681 27,376,969
Septage/Sludge 290,955 256,785 294,459 302,187
Surcharges 243,919 245,343 244,619 245,011
Interest earnings 6,576,873 3,650,480 2,110,031 686,776
1989/1990 Special assessments 21,138 112 413 438
1996 Special assessments 268,883 220,754 184,272 151,316
Gross revenues 34,320,984 31,397,721 29,075,475 28,762,697
Less: Direct expenses 16,226,651 17,147,444 17,057,273 16,007,055
Net revenues available
for debt service $ 18,094,333 $ 14,250,277 $ 12,018,202 $ 12,755,642
Annual debt service
Principal $ 2,505,000 $ 2,620,000 $ 2,745,000 $ 2,870,000
Interest 3,041,150 2,922,950 2,047,513 2,510,910
Total debt service payment $ 5,546,150 $ 5,542,950 $ 4,792,513 $ 5,380,910
Debt service coverage
3.26x 2.57x
2.51x 2.37x
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. Expenses specifically excluded: renewal and replacement, depreciation,
amortization and interest expense, and Toss on disposal of equipment.
Note: Water and Sewer debt information can be found in Note 12.
194
Schedule 14
2011 2012 2013 2014 2015 2016
13,565,766 $ 13,621,878 $ 13,667,115 $ 14,059,231 $ 14,345,074 $ 14,829,381
12,203,750 12,515,394 12,546,429 12,879,006 13,116,393 13,498,090
1,639,985 1,727,411 1,763,426 2,025,378 2,005,106 2,068,865
27,409,501 27,864,683 27,976,970 28,963,615 29,466,573 30,396,336
314,969 373,616 426,634 478,555 483,828 531,432
245,245 246,298 246,363 242,073 98,163
491,260 315,377 239,270 258,741 294,303 363,597
8,718 - - -
93,513 75,037 69,757 22,091 30,872 31,915
28,563,206 28,875,011
15,404,503 15,657,085
13,158,703 $ 13,217,926 $
28,958,994 29,965,075
15,217,294 16,040,433
30,373,739 31,323,280
16,129,860 18,064,619
13,741,700 $ 13,924,642 $ 14,243,879 $ 13,258,661
$ 2,990,000 $ 3,090,000 $ 3,205,000 $ 3,350,000 $ 3,485,000 $ 2,878,000
2,324,525 2,193,450 2,080,951 1,937,450 1,827,867 1,095,886
$ 5,314,525 $ 5,283,450 $ 5,285,951 $ 5,287,450 $ 5,312,867 $ 3,973,886
2.48x 2.50x 2.60x 2.63x 2.68x 3.34x
195
Indian River County, Florida
Demographic and Economic Statistics (Unaudited)
Last Ten Years
Schedule 15
Total Per Capita
Personal Personal Unemployment
Year Po_pulation (A) Income (B) Income() Rate (C)
2007 139,757 $ 7,810,408,000 $ 59,419 7.3%
2008 141,667 7,669,062,000 57,107 10.1
2009 141,475 7,610,327,000 47,689 15.2
2010 138,028 6,687,691,000 48,378 15.2
2011 138,694 7,090,634,000 51,041 13.7
2012 139,446 7,429,653,000 52,855 11.3
2013 139,586 7,731,263,000 54,448 8.8
2014 140,955 9,139,920,000 63,140 7.9
2015 143,326 10,055,169,000 67,978 7.2
2016 146,410 (D) (D) 6.7
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
(D) Information not available
The population and personal income information is used in Schedule 10 for calculation of
Debt Per Capita and Percentage of Debt to Personal Income.
196
Indian River County, Florida
Principal Employers (Unaudited)
Year 2016 and Year 2007
Schedule 16
Employer
2016.
Percentage
Number of of Total County
Employees Employment
School District of Indian River County 2,113 3.70%
Indian River County* 1,328 2.32
Indian River Medical Center 1,753 3.07
Publix Supermarkets 1,250 2.19
Piper Aircraft Inc. 750 1.31
Sebastian River Medical Center 698 1.22
Wal-Mart 693 1.21
John's Island 526 0.92
City of Vero Beach 424 0.74
Indian River Estates 350 0.61
Total 9,885 17.29%
Total County Employees 57,162
Employer
2007
Percentage
Number of of Total County
Employees Employment
School District of Indian River County 2,125 3.67%
Indian River County* 1,706 2.95
Indian River Medical Center 1,300 2.25
Piper Aircraft Inc. 1,029 1.78
Publix Supermarkets 950 1.64
City of Vero Beach 600 1.04
Sebastian River Medical Center 530 0.92
Hale Groves 500 0.85
Wal-Mart 449 0.78
John's Island 446 0.77
Total 9,635 16.65%
Total County Employees 57,856
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 Circuit Court and
Comptroller, Supervisor of Elections, Property Appraiser, Sheriff, and the Tax Collector.
197
Indian River County, Florida
Building Permits (Unaudited)
Last Ten Fiscal Years
Indian River County Munici-
Fiscal # of New # of Additions & # of New
Year Permits Construction Permits Alterations Permits Construction
2007 1,404 $ 280,056,839 3,899 $ 38,290,132 269 $ 107,099,115
2008 857 222,191,316 2,686 30,731,235 206 104,188,514
2009 442 97,694,608 1,725 17,102,312 122 41,039,432
2010 394 82,995,613 2,017 20,723,725 122 30,048,727
2011 416 96,301,948 2,288 26,368,020 112 27,812,429
2012 421 95,703,031 2,591 25,060,272 150 37,380,374
2013 562 159,419,936 3,165 32,572,696 278 63,277,504
2014 611 190,750,218 4,290 41,977,079 262 81,288,256
2015 666 241,065,285 5,528 53,561,372 239 95,276,289
2016 827 308,972,417 6,206 62,277,764 303 108,368,025
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.
198
Schedule 17
palities Countywide
# of Additions & # of New # of Additions &
Permits Alterations Permits Construction Peiniits Alterations
3,712 $ 53,482,334 1,673 $ 387,155,954 7,611 $ 91,772,466
2,850 40,039,893 1,063 326,379,830 5,536 70,771,128
2,188 34,072,491 564 138,734,040 3,913 51,174,803
2,948 32,545,131 516 113,044,340 4,965 53,268,856
2,973 42,087,897 528 124,114,377 5,261 68,455,917
3,271 43,011,051 571 133,083,405 5,862 68,071,323
4,433 45,723,356 840 222,697,440 7,598 78,296,052
5,049 57,293,148 873 272,038,474 9,339 99,270,227
5,710 80,276,432 905 336,341,574 11,238 133,837,804
6,142 85,158,535 1,130 417,340,442 12,348 147,436,299
199
Indian River County, Florida
Operating Indicators by Function/Program (Unaudited)
Last Ten Fiscal Years
Function/Program
2007 2008 2009 2010
General Government
Purchasing 2,753 2,520 2,463 1,970
Purchase orders issued
Public Safety
Fire rescue
Vehicle rescue response 32,488 (A) 33,845 34,480 34,529
Fire code inspections 2,593 3,527 5,917 2,358
Advanced life support calls 7,537 5,862 9,085 9,751
Basic life support calls (transport only) 3,643 5,759 3,486 3,269
Sheriff
Arrests 5,012 5,620 4,331 5,065
Violent crimes 338 353 340 310
Non-violent crimes 6,192 6,383 6,099 5,719
Total calls for service 126,490 129,389 138,998 154,480
Building department
Construction permits issued 1,404 857 442 394
Estimated value of construction (millions) $ 280.1 $ 222.2 $ 97.7 $ 83.0
Physical Environment
Solid waste
Waste stream tonnage received 295,977 239,296 207,344 201,561
Total recycled material (tons) 57,247 42,088 40,931 45,298
Utilities - water & sewer
Number of water customers 41,101 42,000 42,972 43,723
Number of wastewater customers 24,666 25,000 25,192 25,205
Water ERUs 61,494 61,558 63,147 64,146
Wastewater ERUs 45,396 45,785 45,319 45,427
Water consumption (Average Daily Demand) 8,790,000 8,603,000 8,700,000 8,225,000
(A) Effective September 1.8, 2006, fire and advanced life support combined into fire rescue.
Source: Internal reports prepared by the various departments of Indian River County.
200
Schedule 18
2011 2012 2013 2014 2015 2016
1,805 1,852 1,740 1,760 1,826 2,033
37,550
2,239
10,935
3,077
4,464
394
6,058
162,944
39,316 39,340
1,874 1,992
10,904 10,991
3,406 3,544
3,144 3,885
107 439
6,063 5,683
176,170 199,687
41,540
1,753
11,283
3,851
4,262
552
5,853
216,082
416 421 562 611
96.3 $ 95.7 $ 159.4 $ 190.8 $
180,434
30,424
44,254
25,465
64,391
45,863
8,198,000
205,355
53,255
44,571
25,773
64,820
46,107
7,798,000
211,382
50,792
45,216
26,233
65,477
46,576
7,558,000
265,278
101,444
46,223
26,948
66,261
47,027
8,620,000
Continued
201
45,485
1,993
11,571
4,180
3,832
495
5,804
250,814
45,874
2,200
12,428
4,524
3,660
548
5,682
274,464
666 827
241.1 $ 309.0
265,958
86,564
46,865
27,448
66,829
47,596
9,200,000
279,910
98,009
48,540
28,767
72,488
53,428
9,200,000
Indian River County, Florida
Operating Indicators by Function/Program (Unaudited)
Last Ten Fiscal Years
Function/Program
2007 2008 2009 2010
Transportation
Public works
Projects under design 5 6 29 13
Projects awarded for construction 5 5 5 7
Construction projects completed 5 5 12 6
County engineering
Roads designed 7 8 5 6
Miles of roads designed 3.50 6.00 5.00 6.00
Traffic engineering
Site plans reviewed 520 332 423 271
Culture/Recreation
Library
Circulation (County -wide) 1,188,366 1,250,075 1,314,372 1,403,367
Recreation department
Total beach park attendance N/A 415,051 437,302 467,434
Athletic and event attedance N/A 8,673 14,730 23,750
Aquatic centers attendance 90,503 90,475 89,787 87,107
Shooting range
Safety/Registration cards issued 6,784 6,784 9,050 6,471
Golf course
Rounds played 100,539 104,716 101,810 96,593
Court Related
Law library
Circulation 24,759 21,107 18,512 13,079
(B) Law library circulation is now included in the County -wide Library Circulation.
202
Schedule 18
2011 2012 2013 2014 2015 2016.
26 19 20 43 34 13
7 10 5 7 9 3
8 8 5 20 17 17
4 4 6 8 8 6
1.00 8.00 6.00 8.35 10.00 8.50
218 290 357 387 554 412
1,362,857 1,277,253 1,300,764 (B) 1,317,458 1,295,310 1,389,188
449,213 420,609 404,287 434,397 416,962 669,465
24,112 23,979 23,841 23,900 24,073 24,267
98,515 97,965 97,183 105,459 110,186 116,997
8,176 8,302 8,462 7,911 7,655 5,984
94,713 96,723 91,770 90,306 93,739 91,426
9,168 9,428 N/A (B) N/A N/A N/A
203
Indian River County, Florida
Full -Time Equivalent County Government Employees by Function/Program (Unaudited)
Last Ten Fiscal Years
2007 2008 2009 2010
General Government
Board of County Commissioners 10 11 10 10
County Attorney 7 7 7 6
Administration 3 3 3 2.72
Financial/Administrative Service 25.5 26.5 23 21.5
Comprehensive Planning 23 23 19 16
Other 62 49 44.5 36.5
Clerk of Circuit Court 118 116 99.5 98.5
Property Appraiser 50 45 40 40
Supervisor of Elections 12 12 9.5 9.5
Tax Collector 40 38 38 38
Public Safety
Fire Department 232 241 240 246
Advanced Life Support
Sheriff - Corrections 197 197 195 198
Sheriff - Court Service 29.5 29.5 29.5 29.5
Sheriff - Law Enforcement 301 301 301 301
Building Department 50 33 18 17
Other 12 12 10 9
Physical Environment
Solid Waste 53 51 49 49
Utilities - water and sewer 139 130 128 118
Other 14 15 9 9
Transportation
Road and Bridges 106 100 86.5 80
County Engineering 42 42 33 28
Traffic Engineering 26 24 21 21
Real Estate Acquisition 0 3 2 2.28
Economic Environment 6 4.5 3.5 3.5
Human Services 15 15 14.5 13
Culture/Recreation
Libraries
Parks
Recreation Department
Coastal Engineering
Shooting Range
Golf Course
Court Related
Law Library
Total
52.5 50 45.5 47.5
42 41 39 37
58.5 57.5 46 37.5
3 3 3 2
6 5.5 5.5 5.5
21.5 18 16.5 15.5
1,757.5 1,704.5 1,589.5 1,549.0
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.
Totals include unfilled positions.
(A) The fire and advanced life support departments were consolidated on September 18, 2006.
204
Schedule 19
2011. 2012 2013 2014. 2015 2016
10 8.5 9 9 9 9
6 6 6 6 6 6
2.35 2.35 2.35 2.35 2.35 2.35
19.85 19.85 19.35 20.85 21.85 22.85
14.32 15 15 14.5 14.5 14.5
34 34.75 33.9 33.4 33.4 33.4
98 96 98 93 93 85
36 35 35 36 36 39
8 8.5 8.5 9.5 9.5 9.5
38 38 44 45 47 47
244 243 243 243 244 265
207 163 163 163 163 168
29.5 27.5 27.5 27.5 27.5 34
301 303 303 303 303 278
15 14 15 18.5 21.5 25
6.68 6 4 4 4.5 5.5
10 9 9 9 10 10
112.5 112.5 113.5 116.5 118.5 120.5
8 8 7 8 8 10
77 77.25 77.1 78.1 78.1 79.1
27 26 24 24 26 26
20 20 19 19 20 21
1 1 1 1 1 1
2.5 2.5 2.5 2.5 2.5 2.5
13 13 12 12 12 12
46.5 42 41.5 41.5 42 42
34 28 28 28 28 28
33 33.3 32.3 32.8 38.3 38.3
2 2 2 2 2 2
5 5 5 5 5 5.5
15.5 15 13.5 13.5 13.5 13
1,478.0 1,416.0 1,415.0 1,422.5 1,442.0 1,456.0
205
Indian River County, Florida
Capital Asset Statistics by Function/Program (Unaudited)
Last Ten Fiscal Years
Function/Program
2007 2008 2009 2010
General Government
Buildings and grounds
Total square footage maintained 715,215 715,215 715,215 715,215
Number of facilities and sites maintained 47 47 47 47
Vehicles 17 17 15 15
General government
Vehicles 37 28 27 26
Planning
Vehicles 7 7 7 7
GIS
Vehicles 1 1 1
Public Safety
Fire department
Vehicles 54 53 54 51
Fire stations 11 11 11 12
Advanced life support
Vehicles 21 20 20 17
E911 Center
Vehicles 1 1 1
Sheriff
Vehicles 276 295 291 288
Building department
Vehicles 22 13 9 9
Physical Environment
Solid waste
Vehicles 34 32 30 30
Telecommunications
Vehicles 1 1 1
Ag Extension
Vehicles 2 2 2 1
Utilities - Water and Sewer
Vehicles 86 82 82 81.
Water treatment plants 2 2 2 2
Wastewater treatment facilities 6 6 6 6
Water main - miles 769 780 819 845
Force main - miles 217 240 230 226
Gravity sewer lines - miles 259 261 262 269
Transportation
Road and bridge
Miles maintained (paved & unpaved) 617 625 628 636
Bridges maintained 78 78 78 78
Vehicles 68 65 65 64
Source: Internal reports prepared by the various departments of Indian River County.
206
Schedule 20
2011. 2012 2013 2014. 2015 2016
715,215 720,215 720,215 720,215 720,215 760,801
47 48 48 48 48 49
15 15 15 16 15 15
31 31 30 30 28 26
7 6 5 6 6 6
51 51 46 47 58 60
12 12 12 12 12 13
18 18 19 19 17 19
1 1 1 1 1 1
298 295 274 293 282 323
9 9 9 10 16 25
1 1 1 2 2
1
81 85 79 80 81 81
2 2 2 2 2 2
6 6 6 6 6 6
839 843 847 852 857 859
229 223 225 225 221 223
271 270 273 269 268 267
636 638 650 650 650 653
75 75 71 72 72 72
67 67 64 64 67 63
Continued
207
Indian River County, Florida
Capital Asset Statistics by Function/Program (Unaudited)
Last Ten Fiscal Years
Function/Program
2007 2008 2009 2010
Transportation - continued:
Senior Resource Association
Vehicles 25 23 25 32
Engineering
Vehicles 12 17 16 16
Traffic engineering
Traffic signals operated 132 133 133 137
Beacons operated 42 41 48 48
Vehicles 3 5 3 1
Traffic operations
Vehicles 16 16 15 16
Human Services
Health department
Vehicles 16 16 16 15
Animal Control
Vehicles 7 7 7 7
Rental Assistance
Vehicles 2 2 2 2
Culture/Recreation
Libraries
Locations 2 2 2 3
Parks
Number of neighborhood parks 12 12 12 12
Number of County parks 47 47 47 47
Acreage 4,014 4,014 4,014 4,014
Picnic shelters maintained 69 69 69 69
Boat ramps maintained 8 8 8 8
Vehicles 25 24 25 24
Recreation
Vehicles 5 5 5 5
Shooting range
Vehicles 1 1 1 1
Rifle range stations 29 29 29 29
Pistol range stations 35 35 35 35
Golf Course
Holes maintained 36 36 36 36
Vehicles 2 2 2 2
208
Schedule 20
2011 2012. 2013 2014 2015 2016
34 34 38 35 35 39
16 13 13 13 14 13
137 137 150 150 150 160
53 46 45 45 43 47
1 1 1 1 1 1
18 18 19 21 20 22
15 17 17 17 17 9
7 7 7 6 6 6
2 2 2 2 2 3
3 3 3 3 3 3
12 12 10 10 11 12
47 47 40 37 37 37
4,014 4,014 4,014 3,429 3,429 3,429
69 69 69 69 69 69
8 8 8 8 8 8
25 24 22 23 20 20
5 5 5 5 7 6
1 1 1 1 1 1
29 29 29 29 29 29
35 35 35 35 35 35
36 36 36 36 36
2 2 2 2 2
209
36
1
Indian River County, Florida
Department of Utility Services
Historical Rate Structure (Unaudited)
Last Ten Fiscal Years
Schedule 21
Fiscal Years
2007-2016 *
WATER RATES
Billing charges $ 1.29
Base facilities charges (per ERU)
Single-family or commercial 7.76
Multi -family or manufactured home 6.60
Volume charge - per 1,000 gallons (per ERU)
0-3,000 gallons 2.20
3,000-7,000 gallons 2.42
7,001 gallons and over 3.85
Excess volume surcharge - greater than
13,000 gallons per month (per ERU) 7.70
Base facilities charge where capacity is reserved
but lines are not yet available (per ERU)
Single-family or commercial 3.88
Multi -family or manufactured home 3.30
SEWER RATES
Billing charges
Base facility charge (per ERU)
Single-family or commercial
Multi -family or manufactured home
Volume charge - per 1,000 gallons
Single-family & manufactured home (1,000-12,000)
Multi -family & commercial (0-13,000)
Multi -family & commercial (>13,000)
Base facilities charge where capacity is reserved
but lines are not yet available (per ERU)
Single-family or commercial
Multi -family or manufactured home
*The last change to the County's water and sewer rates occurred on October 1, 1999.
Source: Indian River County Utilities Department
210
1.29
14.58
12.40
2.86
2.86
4.29
7.29
6.20
Indian River County, Florida
Water and Wastewater Customers (Unaudited)
Last Ten Fiscal Years
Schedule 22
The number of County water and wastewater customers, expressed as the number of equivalent residential
units (ERUs), for the years 2007 through 2016 as set forth below:
Fiscal Year Water ERUs Wastewater ERUs
2007 61,494 45,396
2008 61,558 45,785
2009 63,147 45,319
2010 64,146 45,427
2011 64,391 45,863
2012 64,820 46,107
2013 65,477 46,576
2014 66,261 47,027
2015 66,829 47,596
2016 72,488 53,428
Source: Indian River County Utilities Department
211
Indian River County, Florida
Top 10 High Volume Customers of Utility Services (Unaudited)
Fiscal Year 2016
Schedule 23
Below is a table depicting the ten highest volume customers of the utility system for the fiscal year ended
September 30, 2016:
Customer
Annual Water Annual Wastewater
Volume Volume
(x 1,000 gals.) (x 1,000 gals.)
1. Vista Royale 29,541 29,541
2. Acts, Inc. 26,581 26,659
3. City of Fellsmere - 24,531.
4. I.RC School Board 24,729 18,932
5. MHC Village Green LLC 22,218 22,218
6. IRC Facilities Management 19,414 19,414
7. Disney's Vero Beach Resort 17,215 17,215
8. NHC FI 1 LP/DBA Encore RV Park 16,987 16,987
9. Lakewood Village RO Association 15,211 1.5,21.1.
10. Vista Gardens 14,225 14,225
Source: Indian River County Utilities Department
212
Indian River County, Florida
Capacity Charges - Utilities Department (Unaudited)
Last Ten Fiscal Years
Schedule 24
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 ten fiscal years ended September 30 are as follows:
Fiscal Year
Wastewater
Water Capacity Capacity Total
Charges Charges Charges
2007 $ 1,159,803 $ 620,915 $ 1,780,718 (A)
2008 699,054 1,088,279 1,787,333
2009 504,658 367,940 872,598
2010. 1,025,700 276,551 1,302,251.
2011 485,225 462,114 947,339
2012. 585,490 755,838 1,341,328
2013 795,134 1,225,379 2,020,513
2014. 1,081,355 1,625,404 2,706,759
2015 1,041,885 1,575,406 2,617,291
2016. 1,271,725 1,795,923 3,067,648
(A) Large decrease in capacity charges due to construction slowdown.
213
Indian River County, Florida
Pledged Revenues for Spring Training Facility Revenue Bonds, Series 2001 (Unaudited)
Last Ten Fiscal Years Schedule 25
Year Professional Total
Ended Sports State Tourist One Cent Half Cent
September 30 Subsidy Tax Collected Tourist Tax (A) Sales Tax (B)
2007 $ 500,004 $ 1,449,083 $ 362,271 $ 8,122,976
2008 500,004 1,584,512 396,128 7,587,682
2009 500,004 1,294,163 323,541 7,000,465
2010 500,004 1,324,953 331,238 6,929,458
2011 500,004 1,487,061 363,233 7,075,101
2012 500,004 1,604,919 401,230 7,412,887
2013 500,004 1,743,283 435,821 7,828,550
2014 500,004 1,918,200 479,550 8,219,778
2015 500,004 2,267,100 566,774 8,684,772
2016 500,004 2,433,491 608,373 9,043,910
(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.
Refer to pledged revenue coverage in County Note 12.
214
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Rehmann Robson
5070 North Highway A1A
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
INDEPENDENT AUDITORS' 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
March 7, 2017
The Honorable Board of County Commissioners
and Constitutional Officers
Indian River County, Florida
We have audited, in accordance with the 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, the financial statements of the governmental
activities, the business -type activities, each major fund, and the aggregate remaining fund information
of Indian River County, Florida (the "County"), as of and for the year ended September 30, 2016, and
the related notes to the financial statements, which collectively comprise the County's basic financial
statements, and have issued our report thereon dated March 7, 2017.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the County's internal
control over financial reporting (internal control) to determine the audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the County's
internal control. Accordingly, we do not express an opinion on the effectiveness of the County's
internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control such that there is a reasonable possibility that a
material misstatement of the entity's financial statements will not be prevented, or detected and
corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in
internal control that is less severe than a material weakness, yet important enough to merit attention
by those charged with governance.
Our consideration of internal control was for the limited purpose described in the preceding paragraph
and was not designed to identify all deficiencies in internal control that might be material weaknesses
or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the County's financial statements are free
from material misstatement, we performed tests of its compliance with certain provisions of taws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and
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NEXT
INTER. NATIONAL
The Honorable Board of County Commissioners
Indian River County, Florida
March 7, 2017
Page 2
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.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
County's internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the entity's internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
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Fkehmann
MANAGEMENT LETTER
March 7, 2017
Honorable Board of County Commissioners
and Constitutional Officers
Indian River County, Florida
Report on the Financial Statements
Rehmann Robson
5070 North Highway A1A
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
We have audited the 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, 2016, and have issued our report thereon dated
March 7, 2017.
Auditors' Responsibility
We conducted our audit 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; the audit requirements of Title 2 U.S. Code of
Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements of Federal Awards (Uniform Guidance); and Chapter 10.550, Rules of the Florida Auditor
General.
Other Reports and Schedule
We have issued our Independent Auditors' Report on Internal Control over Financial Reporting and on
Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance
with Government Auditing Standards; Independent Auditor's Report on Compliance with Each Major
Program and State Project and Report on Internal Control over Compliance; Schedule of Findings and
Questioned Costs; and Independent Accountants' Report on an examination conducted in accordance
with AICPA Professional Standards, Section 601, regarding compliance requirements in accordance with
Chapter 10.550, Rules of the Auditor General. Disclosures in those reports and schedule, which are
dated March 7, 2017, should be considered in conjunction with this management tetter.
Prior Audit Findings
Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not
corrective actions have been taken to address findings and recommendations made in the preceding
annual financial audit report. There were no findings or recommendations in the preceding annual
financial audit report.
Official Title and Legal Authority
Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal
authority for the primary government and each component unit of the reporting entity be disclosed in
this management letter, unless disclosed in the notes to the financial statements. This information is
disclosed in the notes to the financial statements.
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FR NATIONAL.
Financial Condition
Section 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, requires that we report the
results of our determination as to whether or not the County has met one or more of the conditions
described in Section 218.503(1), Florida Statutes, and identification of the specific conditions met. In
connection with our audit, we determined that the County did not meet any of the conditions
described in Section 218.503(1), Florida Statutes.
Pursuant to Sections 10.554(1)(i)5.c. and 10.556(8), Rules of the Auditor General, we applied financial
condition assessment procedures. It is management's responsibility to monitor the County's financial
condition and our financial condition assessment was based in part on representations made by
management and the review of financial information provided by same.
Annual Financial Report
Section 10.554(1)(i)5.b. and 10.556(7), Rules of the Auditor General, require that we apply appropriate
procedures and report the results of our determination as to whether the annual financial report for
the County for the fiscal year ended September 30, 2016, filed with the Florida Department of
Financial Services pursuant to Section 218.32(1)(a), Florida Statutes, is in agreement with the annual
financial audit report for the fiscal year ended September 30, 2016. In connection with our audit, we
determined that these two reports were in agreement.
Other Matters
Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management
letter any recommendations to improve financial management. In connection with our audit, we did
not have any such recommendations.
Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with
provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have
occurred, that have an effect on the financial statements that is less than material but which warrants
the attention of those charged with governance. In connection with our audit, we did not have any
such findings.
Purpose of this Letter
Our management letter is intended solely for the information and use of the Legislative Auditing
Committee, members of the Florida Senate and the Florida House of Representatives, the Florida
Auditor General, Federal and other granting agencies, the Board of County Commissioners and
applicable management and is not intended to be and should not be used by anyone other than these
specified parties.
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INDEPENDENT ACCOUNTANTS' REPORT
March 7, 2017
The Honorable Board of County Commissioners
Indian River County, Florida
Rehmann Robson
5070 North Highway A1A
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
We have examined the compliance of Indian River County, Florida (the "County") with Sections
218.415, 28.35, 28.36, 365.172(10), 365.173(2)(d) and 61.181 Florida Statutes, during the year ended
September 30, 2016. Management is responsible for compliance with those requirements. Our
responsibility is to express an opinion on the County's compliance based on our examination.
Our examination was conducted in accordance with attestation standards established by the American
Institute of Certified Public Accountants and, accordingly, includes examining, on a test basis,
evidence about the County's compliance with those requirements and performing such other
procedures as we considered necessary in the circumstances. We believe that our examination
provides a reasonable basis for our opinion. Our examination does not provide a legal determination on
the County's compliance with specified requirements.
In our opinion, the County complied, in all material respects, with the aforementioned requirements
for the year ended September 30, 2016.
This report is intended solely for the information and use of management, the Board of County
Commissioners and the Florida Auditor General and is not intended to be and should not be used by
anyone other than these specified parties.
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NEXIA
INTERNATIONAL.
Fkehmann
Rehmann Robson
5070 North Highway A1A
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
INDEPENDENT AUDITORS' REPORT ON THE
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE PROJECTS
REQUIRED BY UNIFORM GUIDANCE AND CHAPTER 10.550, RULES OF THE AUDITOR GENERAL
March 7, 2017
The Honorable Board of County Commissioners
and Constitutional Officers
Indian River County, Florida
We have audited the financial statements of the governmental activities, the business -type activities,
each major fund, and the aggregate remaining fund information of Indian River County, Florida (the
"County") as of and for the year ended September 30, 2016, and the related notes to the financial
statements, which collectively comprise the County's basic financial statements. We issued our report
thereon dated March 7, 2017, which contained unmodified opinions on those financial statements. Our
audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the basic financial statements. The accompanying schedule of expenditures of federal awards
and state projects is presented for purposes of additional analysis as required by Title 2 U.S. Code of
Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements of Federal Awards (Uniform Guidance), and Chapter 10.550, Rules of the Auditor
General, and is not a required part of the basic financial statements. Such information is the
responsibility of management and was derived from and relates directly to the underlying accounting
and other records used to prepare the basic financial statements. The information has been subjected
to the auditing procedures applied in the audit of the financial statements and certain additional
procedures, including comparing and reconciling such information directly to the underlying accounting
and other records used to prepare the basic financial statements or to the basic financial statements
themselves, and other additional procedures in accordance with auditing standards generally accepted
in the United States of America. In our opinion, the schedule of expenditure of federal awards and
state projects is fairly stated in all material respects in relation to the basic financial statements as a
whole.
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Indian River County, Florida
Schedule of Expenditures of Federal Awards and State Projects
For the Fiscal Year Ended September 30, 2016
Federal/State Agency
Pass-through Entity
Federal Program/State Project
Department of Housing and Urban Development:
Direct Programs:
Comm. Dev. Block Grant - Neighborhood Stabilization Pgm #3
CDBG NSP #3 Program Income Expenditures
Indirect Programs:
Passed through Florida Dept. of Economic Opportunity:
Comm. Dev. Block Grant - Neighborhood Stabilization Program
CDBG NSP Program Income Expenditures
Subtotal CFDA - 14.228
Direct Programs:
Shelter Plus Care
Subtotal CFDA - 14.238
Indirect Program:
Passed through Florida Housing Finance Corporation:
Tenant Based Rental Assistance
Tenant Based Rental Assistance
Subtotal CFDA - 14.239
Direct Programs:
Continuum of Care -
Rental Assistance
Rental Assistance
Rental Assistance
Homeless Management
Rental Assistance
Rental Assistance
Rental Assistance
Homeless Management
Rental Assistance
Rental Assistance
Rental Assistance
Homeless Management
Homeless Management
Rental Assistance
Rental Assistance
Information Systems
Information Systems
Information Systems
Information Systems
Subtotal CFDA - 14.267
Direct Programs:
Section 8 Housing Choice Vouchers
Total Department of Housing and Urban Development
Department of Justice:
Indirect Programs:
Passed through Office of the Attorney General:
Crime Victim Assistance Program
Direct Programs:
State Criminal Alien Assistance Program
Bullet Proof Vest
2015 Local Solicitation Justice Assistance Grant
Indirect Programs:
Passed through Florida Department of Law Enforcement:
Bryne Formula Grant Program
Drug Enforcement Grant
Subtotal CFDA - 16.738
CFDA/
CSFA
No.
14.228
Contract/
Grant
No.
B -11 -UN -12-0022
Program Income $
14.228 10DB-4X-10-40-01-F13
14.228
14.238
14.239
14.239
Program Income
FL0380C4H091000
2013-210TBRA
030-2016
14.267 FL0113L4H091402
14.267 FL0114L4H091407
14.267 FL0114L4H091508
14.267 FL0116L4H091407
14.267 FL0119L4H091407
14.267 FL0119L4H091508
14.267 FL0120L4H091407
14.267 FL0308L4H091406
14.267 FL0338C4H091401
14.267 FL0360C4H091405
14.267 FL0360C4H091506
14.267 FL0418L4H091301
14.267 FL0418L4H091402
14.267 FL0440L4H091403
14.267 FL0440L4H091504
14.871 FL -132 -VO -014 to 017
16.575
16.606
16.607
16.738
V007-14050
2015 -AP -BX -0017
2014 -AP -BX -0791
2015 -DJ -BX -1001
16.738 2016-JAGC-INRI-3-H3-195
Expenditures
1,992
1,932
3,924
90,285 $
90,285
103,516
101,602
205,118
94,272
40,578
19,412
35,400
86,440
25,462
114,177
24,821
67,152
65,387
16,699
12,022
17,488
61,376
24,587
705,273
2,158,738
3,163,338
42,596
45,022
15,809
22,335
10,842
33,177
Total Department of Justice 136,604
221
Transfers to
Subrecipients
27,533
27,533
6,599
4,700
35,400
7,196
10,517
24,821
4,100
6,089
12,022
17,488
7,147
136,079
163,612
Indian River County, Florida
Schedule of Expenditures of Federal Awards and State Projects
For the Fiscal Year Ended September 30, 2016
Federal/State Agency CFDA/ Contract/
Pass-through Entity CSFA Grant
Federal Program/State Project No. No.
Expenditures
Department of Transportation:
Indirect Programs:
Passed through Florida Department of Transportation:
LAP - Sidewalks 87th Street 20.205 ART06 $ 1,011,228
Metropolitan Planning Organization 20.205 AA080 360,328
Metropolitan Planning Organization 20.205 G0B28 70,161
Passed through University of Florida:
Florida Safe Routes to School - 2016 20.205 BDV23I 52,625
Florida Safe Routes to School 20.205 G09E03 7,703
Subtotal CFDA - 20.205 1,502,045
Indirect Programs:
Passed through Florida Department of Environmental Protection:
Martin Luther King Trail
20.219 T14035 47,655
Total Highway Planning and Contruction Cluster 1,549,700
Transfers to
Subrecipients
Indirect Programs:
Passed through Florida Department of Transportation:
Federal Transit Metropolitan Planning Grant 20.505 G0359 79,124
Section 5311 Non -Urbanized Public Transit 20.509 ARQ46 66,964 $ 66,964
Florida Highway Safety Grant -Total Highway Safety Cluster 20.616 G0482 43,640
Direct Programs:
Federal Transit Formula Section 5309 Grant 20.500
Federal Transit Formula Section 5307 Grant
Federal Transit Formula Section 5307 Grant
Federal Transit Formula Section 5307 Grant
Federal Transit Formula Section 5307 Grant
Federal Transit Formula Section 5307 Grant
Federal Transit Formula Section 5307 Grant
Subtotal CFDA - 20.507
Total Federal Transit Cluster
Total Department of Transportation
Elections Assistance Commission:
Indirect Programs:
Passed through the Florida Dept of State
Division of Elections
Federal Elections Activties 2014/2015
Total Elections Asssistance Commission
20.507
20.507
20.507
20.507
20.507
20.507
FL -04-0182
FL -2016-033-00
FL -90-X888
FL -90-X838
FL -90-X828
FL -90-X756
FL -90-X739
168,283 168,283
1,647,977
308,865
222,528
531,817
19,168
8,197
1,647,977
308,865
222,528
531,817
19,168
8,197
2,738,552 2,738,552
2,906,835 2,906,835
4,646,263 2,973,799
90.401 N/A 4,026
222
4,026
Indian River County, Florida
Schedule of Expenditures of Federal Awards and State Projects
For the Fiscal Year Ended September 30, 2016
Federal/State Agency CFDA/ Contract/
Pass-through Entity CSFA Grant
Federal Program/State Project No. No.
Department of Health and Human Services,
Agency for Children and Families,
Office of Child Support Enforcement:
Indirect Programs:
Passed through Florida Department of Revenue:
Sheriff Service of Notices
Child Support Enforcement -Title IV D
Total Office of Child Support Enforcement
Department of Homeland Security:
Indirect Programs:
Passed through Division of Emergency Management:
Community Emergency Response Team
Emergency Management Performance Grant
Emergency Management Performance Grant
Subtotal CFDA - 97.042
State Homeland Security
Operation Stonegarden
Operation Stonegarden
Subtotal CFDA - 97.067
Expenditures
93.563 00331 $ 7,643
93.563 COC31 377,757
385,400
97.042 16 -CI -S9-10-40-02-324
97.042 16 -FG -5A-10-40-01-097
97.042 17 -FG -P9-10-40-01-104
97.067 15 -DS -P4-10-40-01-346
97.067 15 -DS -P9-10-40-02-404
97.067 16 -DS -U8-10-40-02-275
3,392
16,224
25,790
45,406
6,707
36,330
54,627
97,664
Total Department of Homeland Security 143,070
TOTAL EXPENDITURES OF FEDERAL AWARDS:
223
Transfers to
Subrecipients
$ 8,478,701 $ 3,137,411
Indian River County, Florida
Schedule of Expenditures of Federal Awards and State Projects
For the Fiscal Year Ended September 30, 2016
Federal/State Agency CFDA/ Contract/
Pass-through Entity CSFA Grant Transfers to
Federal Program/State Project No. No. Expenditures Subrecipients
STATE OF FLORIDA
Division of Emergency Management:
Direct Projects:
Emergency Management Programs
Emergency Management Preparedness and Assistance 31.063 17 -BG -83-10-40-01-037 $ 27,684
Emergency Management Preparedness and Assistance 31.063 16 -BG -83-10-40-01-030 94,099
Subtotal CSFA - 31.063 121,783
Hazardous Materials Analysis Grant
31.067 16 -CP -
10 -40-01-174 3,503
Total Division of Emergency Management 125,286
Department of Environmental Protection:
Direct Projects:
Hurricane Sandy Beach Project
Total Department of Environmental Protection
Florida Housing Finance Corporation:
Direct Projects:
State Housing initiatives Partnership
Total Florida Housing Finance Corporation
Department of State:
Direct Project:
State Aid to Libraries
Total Department of State
37.003 141R2 65,536
65,536
40.901 N/A 912,013
912,013
45.030 15 -ST -23 98,318
98,318
Department of Transportation:
Direct Projects:
Transportation Disadvantaged Planning Grant 55.002 G0053 3,268
Transportation Disadvantaged Planning Grant 55.002 G0231 17,646
Subtotal CSFA - 55.002 20,914
Commuter Assistance Grant 55.007 G0115 109,748 $ 109,748
SCOP - Aviation Boulevard
SCOP - Old Dixie Highway
SCOP - Old Dixie Highway
Subtotal CSFA - 55.009
FI Public Transit Block Grant
FDOT Service Development Grant
Transit Corridor Grant
Total Department of Transportation
55.009 ARU11 200,445
55.009 G0058 1,069,309
55.009 G0009 562,085
1,831,839
55.010 ARQ56 443,000 443,000
55.012 AQGO7
55.013 ARE86
224
310,923
310,923
106,443 106,443
2,822,867 970,114
Indian River County, Florida
Schedule of Expenditures of Federal Awards and State Projects
For the Fiscal Year Ended September 30, 2016
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 Health:
Direct Project:
County Awards Grant -Emergency Medical Svc 64.005 C4031 $ 41,823
Department of Revenue:
Direct Project:
Facilities for Retained Spring Training Franchise
73.016 N/A 500,004
TOTAL EXPENDITURES OF STATE FINANCIAL ASSISTANCE: $ 4,565,847 $ 970,114
225
Indian River County, Florida
Notes to Schedule of Expenditures of Federal Awards
and State Projects
For the Fiscal Year Ended September 30, 2016
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 Title 2 U.S. Code of Federal Regulations Part
200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal
Awards (Uniform Guidance).
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 Compliance 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 Schedule of Expenditures of Federal
Awards and State Projects is maintained on a modified accrual basis of accounting for governmental
funds and a full accrual basis for proprietary funds, which is explained further in the notes to the
financial statements. Such expenditures are recognized following the cost principles contained in OMB
A-87 Cost Principles for State, Local, and Indian Tribal Governments, wherein certain types of
expenditures are not allowable or are limited as to reimbursement.
C. Program Clusters
The Uniform Guidance defines a cluster of programs as a grouping of closely related programs that
share common compliance requirements. According to this definition, similar programs deemed to be a
cluster of programs are tested accordingly.
D. Contingencies
Grant revenue amounts received by the County are subject to audit and adjustment by the grantor
agencies. Such audits may result in requests for reimbursement by the grantor agency. Any adjustments
to grant funding are recorded in the year the adjustment occurs.
226
ftehmann
Rehmann Robson
5070 North Highway A1A
Suite 250
Vero BeachFL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND
MAJOR STATE PROJECT AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE
UNIFORM GUIDANCE AND CHAPTER 10.550, RULES OF THE AUDITOR GENERAL
March 7, 2017
The Honorable Board of County Commissioner
and Constitutionat Officers
Indian River County, Florida
Report on Compliance for Each Major Federal Program and Major State Project
We have audited the compliance of Indian River County, Florida (the "County") with the types of
compliance requirements described in the OMB Compliance Supplement and the requirements
described in the Florida Department of Financial Services' State Projects Compliance Supplement that
could have a direct and material effect on each of the County's major federal programs or state
projects for the year ended September 30, 2016. The County's major federal programs and state
projects are identified in the summary of auditors' results section of the accompanying schedute of
findings and questioned costs.
Management's Responsibility
Management is responsible for compliance with the requirements of taws, regulations, contracts, and
grants applicable to its federal programs.
Independent Auditors' Responsibility
Our responsibility is to express an opinion on compliance for each of the County's major federal
programs based on our audit of the types of compliance requirements referred to above. We conducted
our audit of comptiance 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 Comptrotter Generat of the United States; Title U.S. Code of Federat Regulations Part
200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements of Federal
Awards (Uniform Guidance); and Chapter 10.550' Rules of the Auditor General. Those standards and
Uniform Guidance require that we pian 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 state project occurred. An audit includes
examining, on a test basis, evidence about the County's compliance with those requirements and
performing such other procedures as we considered necessary in the circumstances.
We betieve that our audit provides a reasonable basis for our opinion on comptiance for each major
federal program and state project. However, our audit does not provide a legal determination of the
County's compliance.
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The Honorable Board of County Commissioners
Indian River County, Florida
March 7, 2017
Page 2
Opinion on Each Major Federal Program and State Project
In our opinion, the County complied, in all material respects, with the types of compliance
requirements referred to above that could have a direct and material effect on each of its major
federal programs and state projects for the year ended September 30, 2016.
Report on Internal Control Over Compliance
Management of the County is responsible for establishing and maintaining effective internal control
over compliance with the types of compliance requirements referred to above. In planning and
performing our audit of compliance, we considered the County's internal control over compliance with
the types of requirements that could have a direct and material effect on each major federal program
and state project to determine the auditing procedures that are appropriate in the circumstances for
the purpose of expressing an opinion on compliance for each major federal program and state project
and to test and report on internal control over compliance in accordance with Uniform Guidance and
Chapter 10.550, Rules of the Auditor General, but not for the purpose of expressing an opinion on the
effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the
effectiveness of the County's internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their
assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance
requirement of a federal program on a timely basis. A material weakness in internal control over
compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such
that there is a reasonable possibility that material noncompliance with a type of compliance
requirement of a federal program or state project will not be prevented, or detected and corrected, on
a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a
combination of deficiencies, in internal control over compliance with a type of compliance requirement
of a federal program or state project that is less severe that a material weakness in internal control
over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over
compliance that might be material weaknesses or significant deficiencies. We did not identify any
deficiencies in internal control over compliance that we consider to be material weaknesses. However,
material weaknesses may exist that have not been identified.
Purpose of this Report
The purpose of this report on internal control over compliance is solely to describe the scope of our
testing of internal control over compliance and the results of that testing based on the requirements of
Uniform Guidance and Chapter 10.550, Rules of the Auditor General. Accordingly, this report is not
suitable for any other purpose.
228
INDIAN RIVER COUNTY, FLORIDA
thedu a of Find
gs anci goes
For the Year Ended September 30, 2016
Financial Statements
Type of auditors' report issued:
Internal control over financial reporting:
Material weakness(es) identified?
Significant deficiency(ies) identified?
Noncompliance material to financial statements
noted?
Federal Awards and State Projects
Internal control over major programs and projects:
Material weakness(es) identified?
Significant deficiency(ies) identified?
Type of auditors' report issued on compliance
for major programs:
Any audit findings disclosed that are required
to be reported in accordance with
2 CFR 200.516(a)?
Identification of major programs:
CFDA Number
20.205/20.219
14.267
CSFA Number
Unmodified
yes X no
yes X none reported
yes X no
yes X no
yes X none reported
Unmodified
yes X no
Name of Federal Program or Cluster
Highway Planing and Construction Cluster
Continuum of Care Program
Name of State Project
31.063 Emergency Management Program
40.901 State Housing Initiatives Partnership Program (SHIP)
55.010 Public Transit Block Grant Program
55.012 Public Transit Service Development Program
73.016 Facilities for New Professional Sports, Retained
Professional Sports, or Retained Spring
Training Franchise
Dollar threshold used to distinguish
between Type A and Type B programs:
Auditee qualified as low-risk auditee?
229
750,000 (Federal and State)
X yes no
INDIAN RIVER COUNTY, FLORIDA
cbedu a of Find
gs and quest
For the Year Ended September 30, 2016
T
None noted.
None noted.
230
INDIAN RIVER COUNTY, FLORIDA
•
Sur
Ohl ellule of Prior Audit Fin
For the Year Ended September 30, 2016
None noted.
231
JEFFREY R. SMITH, CPA, CGFO, CGMA
Clerk of Circuit Court and Comptroller
Finance Department
1801 27th Street, Building A
Vero Beach, Florida 32960
Telephone (772) 226-1945
AFFIDAVIT
BEFORE ME, the undersigned authority, personally appeared Jeffrey R. Smith, who being duly sworn,
deposes and says on oath that:
1. I am the Chief Financial Officer of Indian River County which is a local govemrnerital entity of
the State of Florida;
2, Indian River County adopted Ordinance No. 2005-015 on May 17, 2005 implementing eight new
impact fee categories, plus revised transportation impact fees (9 total impact fee categories). The
impact fees were subsequently amended as follows: on March 24, 2009 in Ordinance No. 2009-003, on
September 22, 2009 in Ordinance No. 2009-015, and on March 16, 2010 in Ordinance No. 2010-002.
The result of these amendments was suspension of five of the nine original impact fees from April 1,
2009 through March 31, 2011. On March 15, 2011 in Ordinance No. 2011-002, the impact fees were
amended to suspend three of the nine original impact fees from April 1, 2011 through March 31, 2012.
On March 13. 2012, Ordinance No. 2012-003 continued this suspension from April 1, 2012 through
March 31, 2014. On March 11,2014, Ordinance No. 2014-004 continued this suspension from April 1,
2014 through March 31, 2015. On April 22, 2014, Ordinance No. 2014-009 adopted new non-
residential impact fee schedules. On October 14, 2014, Ordinance No. 2014-016 was adopted. That
ordinance contained new impact fee schedules comprised of the non-residential impact fees adopted as
part of Ordinance 2014-009 and new impact fees for residential uses. That ordinance also continued the
suspensions of three impact fee categories pending further trend evaluation during the next scheduled
impact fee methodological update.
3. Indian River County has complied and, as of the date of this Affidavit, remains in compliance
with Section 163.31801, Honda Statutes.
FURTHER AFFIANT SAYETH NAUGHT.
STATE OF FLORIDA, COUNTY OF INDIAN RIVER
r
,2017.
SWORN TO AND SUBSCRIBED before me this C.) day of jiltO`
NOTARY IC
Print Name
Personally known V or produced identification
Type of identification produced:
My Commission Expires: liar
232
1k% OFF 65450 cnr.
TeNwszrutsto...°D.,;e7
lek-ifacv
41.44.00000
233
Fkehmann
INDEPENDENT AUDITORS' REPORT
March 7, 2017
The Honorable Board of County Commissioners
Indian River County, Florida
Report on the Financial Statements
Rehmann Robson
5070 North Highway A1A
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
We have audited the accompanying fund financial statements of each major fund, and the aggregate
remaining fund information of the Indian River County, Florida Board of County Commissioners (the
"Board"), as of and for the year ended September 30, 2016, and the related notes to the financial
statements, which collectively comprise the Board's basic financial statements as listed in the table of
contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud
or error.
Independent Auditors' Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. 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. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free from
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditors' judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity's
preparation and fair presentation of the financial statements in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation
of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinions.
Rehmann is an independent member of Nexia International.
CPAs & Consultants Wealth Advisors Corporate Investigators
234
INTERNATIONAL
The Honorable Board of County Commissioners
Indian River County, Florida
March 7, 2017
Page 2
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the funds of the Board of County Commissioners as of September 30,
2016, and the respective changes in financial position and the respective budgetary comparison for the
general fund for the year then ended in accordance with accounting principles generally accepted in
the United States of America.
Reporting Entity
As discussed in Note 1, the financial statements referred to above present only the Indian River
County, Florida Board of County Commissioners and do not purport to, and do not, present fairly the
financial position of Indian River County, Florida as of September 30, 2016, and the changes in its
financial position for the year then ended, in conformity with accounting principles generally accepted
in the United States of America.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March 7,
2017, on our consideration of the Board of County Commissioner's internal control over financial
reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and
grant agreements and other matters. The purpose of that 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 internal control over financial reporting or on compliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards in considering
the Board of County Commissioner's internal control over financial reporting and compliance.
235
Indian River County, Florida
Board of County Commissioners
Balance Sheet
Governmental Funds
September 30, 2016
Secondary
Impact Roads
General Fees Construction
ASSETS
Cash and investments $ 43,516,057 $ 14,548,056 $ 12,91 1,668
Accounts receivable 489,139 - -
Special assessments receivable - - -
Due from other funds 378,414 - -
Due from other governments 6,773,069 119,943 1,107,895
Interest receivable 29,165 9,055 7,505
Inventories 46,902 - -
Prepaid items 69,839 - -
Advances to other funds 150,925 - -
Total assets $ 51,453,510 $ 14,677,054 $ 14,027,068
LIABILITIES
Accounts payable $ 1,767,676 $ 24,947 $ 1,374,524
Retainage payable 434,350 226,210
Due to other funds - -
Due to other governments 43,193 130,314 -
Unearned revenues 216,842 -
Other deposits 22,384 -
Total liabilities 2,050,095 589,611 1,600,734
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - special assessments - -
Unavailable revenue - ambulance services - -
Unavailable revenue - state and federal grants 955,677 - 640,815
Total deferred inflows of resources 955,677 640,815
FUND BALANCES
Nonspendable:
Inventories 46,902
Prepaid items 69,839
Advances to othcr funds 150,925
Restricted for:
Transportation/road improvements 9,184,228 11,783,966
Court -related costs and improvements - -
Housing assistance -
Law enforcement/public safety - 974,638
Fire/emergency services 762,066
Tourism -related activities -
Beach rcnourishment - -
Boating related projects - -
Library services 858,338
Land acquisition - -
Stormwater, street lighting, and other special assessments - -
Debt service - -
Capital projects 1,180,827
Dodgertown repairs/improvements -
Parks/recreational projects 1,000,000 1,127,346
Committed to:
Economic incentives 1,081,907
Environmental conservation/preservation
Law enforcement/public safety 4,289
Parks/recreational projects 80,634
Assigned to:
Transportation/road improvements - -
Unassigned 46,013,242 - 1,553
Total fund balances 48,447,738 14,087,443 11,785,519
Total liabilities, deferred inflows and fund balances $ 51,453,510 $ 14,677,054 $ 14,027,068
The accompanying notes are an integral part of the financial statements.
236
Transportation
Emergency Optional Other Total
Services Sales Governmental Governmental
District Tax Funds Funds
$ 7,349,315 $ 6,659,468 $ 70,467,632 $ 21,984,515 $ 177,436,711
172 1,358,443 - 1,601 1,849,355
191,624 191,624
- - 378,414
250,965 339,643 2,105,186 619,701 11,316,402
155,750 4,274 38,954 12,031 256,734
-- - 46,902
11,700 40,331 - 8,446 130,316
- - - - 150,925
$ 7,959,526 $ 8,402,159 $ 72,611,772 $ 22,626,294 $ 191,757,383
590,661 $ 982,995 $ 759,981 $ 502,356 $ 6,003,140
- 407,462 46,951 1,114,973
- - 13,000 13,000
- - 173,507
1,750 - 218,592
- - 22,384
592,411 982,995 1,167,443 562,307 7,545,596
343,265 - 343,265
- 1,350,495 - 1,350,495
- - 284,510 83,702 1,964,704
343,265 1,350,495 284,510 83,702 3,658,464
46,902
11,700 40,331 - 8,446 130,316
150,925
42,480 21,010,674
- - 644,426 644,426
- - 833,555 833,555
2,371,668 3,346,306
- 6,028,338 - - 6,790,404
- - 504,381 504,381
- - 10,469,411 10,469,411
1,136,371 1,136,371
- 2,830 861,168
- - 116,361 116,361
- - 1,249,818 1,249,818
- 3,329,188 3,329,188
- 71,159,819 - 72,340,646
- - 180,823 180,823
2,127,346
1,081,907
1,090,527 1,090,527
4,289
80,634
7,012,150 - 7,012,150
- - - - 46,014,795
7,023,850 6,068,669 71,159,819 21,980,285 180,553,323
7,959,526 $ 8,402,159 $ 72,611,772 $ 22,626,294 $ 191,757,383
237
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, 2016
Secondary
Impact Roads
General Fees Construction
REVENUES
Taxes $ 55,947,406 $ - $ 3,741,935
Permits, fees and special assessments 9,533,523 6,261,663 91
Intergovernmental 18,163,755 158,631 1,373,212
Charges for services 1,928,800 - -
Judgments, fines and forfeits 347,600 - -
Interest 343,955 86,129 74,219
Miscellaneous 4,211,185 311,754 36,065
Total revenues90,476,224 6,818,177 5,225,522
EXPENDITURES
General government 10,845,302 192,022
Public safety 4,341,000 26,030
Physical environment 295,860 - -
Transportation 4,724,438 3,718,740 6,438,954
Economic environment 420,669 - -
Human services 3,828,810 -
Culture/recreation 8,743,746 2,800,210
Court related 187,875 - -
Debt service:
Principal
Interest and other fiscal charges
Capital projects
Total expenditures 33,387,700 6,737,002 6,438,954
Excess of revenues over (under) expenditures 57,088,524 81,175 (1,213,432)
OTHER FINANCING SOURCES (USES)
Transfers in - -
Transfers out (12,725,457) (6,369) (681,005)
Transfers to constitutional officers (46,194,559) (180,112) -
Total other financing sources (uses) (58,920,016) (186,481) (681,005)
Net change in fund balances (1,831,492) (105,306) (1,894,437)
Fund balances at beginning of year 50,279,230 14,192,749 13,679,956
Fund balances at end of year $ 48,447,738 $ 14,087,443 $ 11,785,519
The accompanying notes are an integral part of the financial statements.
238
Transportation
Emergency
Services
District
$ 25,502,289
219,543 -
3,147,607 103,773
93,623 6,409,097
4,500
47,203 76,523
549,742 32,550
4,057,718 32,128,732
312,571
464,707
11,589,004
32,080,896
12,366,282 32,080,896
(8,308,564)
47,836
9,199,769 -
(903,843) (630,573)
(491,249)
8,295,926 (1,121,822)
(12,638)
(1,073,986)
7,036,488 7,142,655
7,023,850
6,068,669
Optional
Sales
Tax
$ 16,858,894
45
1,915,979
355,337
2,476,958
21,607,213
239
Other
Governmental
Funds
$ 7,032,007
515,314
8,264,407
749,816
177,758
127,627
86,120
16,953,049
875,186
474,173
28,236
1,034,523
3,924
4,039,582
2,018,809
584,890
Total
Governmental
Funds
$ 109,082,531
16,530,179
33,127,364
9,181,336
529,858
1,110,993
7,704,374
177,266,635
12,225,081
36,922,099
788,803
27,505,659
424,593
7,868,392
13,562,765
772,765
4,383,000 4,383,000
832,007 832,007
13,329,391 - 13,329,391
13,329,391 14,274,330 118,614,555
8,277,822 2,678,719 58,652,080
- 10,110,613
(125,000) (15,155,046)
(1,099,916)(48,412,656)
(1,224,916) (53,457,089)
7,052,906 3,059,944 5,194,991
64,106,913 18,920,341 175,358,332
71,159,819 $ $ 180,553,323
910,844
(82,799)
(446,820)
381,225
21 980 285
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, 2016
REVENUES
Taxes
Permits, fees and special assessments
Intergovernmental
Charges for services
Judgments, fines and forfeits
Interest
Miscellaneous
Total revenues
EXPENDITURES
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)
Transfers out
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
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
$ 55,216,397 $ 55,216,397 $ 55,947,406 $ 731,009
8,627,900 8,627,900 9,533,523 905,623
11,681,200 17,033,348 18,163,755 1,130,407
1,356,571 1,433,813 1,928,800 494,987
361,950 361,950 347,600 (14,350)
139,715 139,715 343,955 204,240
3,617,120 3,683,260 4,211,185 527,925
81,000,853 86,496,383 90,476,224 3,979,841
10,353,907 11,584,335 10,845,302 739,033
4,337,630 4,513,578 4,341,000 172,578
298,144 315,376 295,860 19,516
750,000 6,113,992 4,724,438 1,389,554
411,520 437,003 420,669 16,334
3,937,003 3,997,892 3,828,810 169,082
8,727,616 9,344,787 8,743,746 601,041
194,715 200,113 187,875 12,238
29,010,535 36,507,076 33,387,700 3,119,376
51,990,318 49,989,307 57,088,524 7,099,217
(9,362,392) (12,725,457) (12,725,457)
(46,338,277) (46,778,757) (46,194,559)
(55,700,669) (59,504,214) (58,920,016)
(3,710,351) (9,514,907)
3,710,351 9,514,907
584,198
584,198
(1,831,492) $ 7,683,415
50,279,230
48,447,738
The accompanying notes are an integral part of the financial statements.
240
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, 2016
REVENUES
Permits, fees and special assessments
Intergovernmental
Interest
Miscellaneous
Total revenues
EXPENDITURES
General government
Public safety
Transportation
Culture/recreation.
Total expenditures
Excess of revenues under expenditures
OTHER FINANCING SOURCES (USES)
Transfers out
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
Budgeted Amounts
Original Final
2,788,250 $ 2,788,250 $
28,500 28,500
2,816,750 2,816,750
217,234 619,664
47,891
6,027,000 8,310,717
900,000 3,873,785
7,144,234 12,852,057
(4,327,484) (10,035,307)
(100,000)
(100,000)
(6,369)
(780,112)
(786,481)
(4,427,484) (10,821,788)
4,427,484 10,821,788
Actual
Amounts
6,261,663 $
158,631
86,129
311,754
6,818,177
192,022
26,030
3,718,740
2,800,210
6,737,002
81,175
(6,369)
(180,112)
(186,481)
Variance
with Final
Budget
Positive
(Negative)
3,473,413
158,631
57,629
311,754
4,001,427
427,642
21,861
4,591,977
1,073,575
6,115,055
10,116,482
600,000
600,000
(105,306) $ 10,716,482
14,192,749
14,087,443
The accompanying notes are an integral part of the financial statements.
241
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, 2016
REVENUES
Taxes
Permits, fees and special assessments
Intergovernmental
Interest
Miscellaneous
Total revenues
EXPENDITURES
Transportation
Total expenditures
Excess of revenues 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
Budgeted Amounts
Original Final
3,268,000 $ 3,268,000 $
57,170
2,206,710
19,000 19,000
20,000
3,287,000 5,570,880
4,434,128
4,434,128
10,566,513
10,566,513
Actual
Amounts
3,741,935
91
1,373,212
74,219
36,065
5,225,522
6,438,954
6,438,954
(1,147,128) (4,995,633) (1,213,432)
(681,006)
(681,006)
(681,005)
(681,005)
Variance
with Final
Budget
Positive
(Negative)
$ 473,935
(57,079)
(833,498)
55,219
16,065
(345,358)
4,127,559
4,127,559
3,782,201
(1,147,128) (5,676,639) (1,894,437) $ 3,782,202
1,147,128
5,676,639
13,679,956
- $ 11,785,519
The accompanying notes are an integral part of the financial statements.
242
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, 2016
REVENUES
Permits, fees and special assessments
Intergovernmental
Charges for services
Interest
Miscellaneous
Total revenues
EXPENDITURES
General government
Physical environment
Transportation
Total expenditures
Excess of revenues 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
Budgeted Amounts
Original Final
$ 175,750 $
2,476,014
91,200
30,400
431,275
3,204,639
286,692
599,831
12,389,058
13,275,581
(10,070,942)
9,199,769
(107,667)
9,092,102
175,750 $
2,552,627
91,200
30,400
431,275
3,281,252
329,438
788,844
12,854,548
13,972,830
(10,691,578)
Actual
Amounts
219,543
3,147,607
93,623
47,203
549,742
4,057,718
Variance
with Final
Budget
Positive
(Negative)
$ 43,793
594,980
2,423
16,803
118,467
776,466
312,571 16,867
464,707 324,137
11,589,004 1,265,544
12,366,282 1,606,548
(8,308,564) 2,383,014
9,199,769 9,199,769
(903,843) (903,843)
8,295,926 8,295,926
(978,840) (2,395,652)
978,840
2,395,652
(12,638) $ 2,383,014
7,036,488
- $ 7,023,850
The accompanying notes are an integral part of the financial statements.
243
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, 2016
REVENUES
Taxes
Intergovernmental
Charges for services
Judgments, fines and forfeits
Interest
Miscellaneous
Total revenues
EXPENDITURES
Public safety
Total expenditures
Excess of revenues under expenditures
OTHER FINANCING SOURCES (USES)
Transfers out
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
Budgeted Amounts
Original Final
$ 25,209,922
45,125
5,174,952
11,400
28,500
37,820
30,507,719
30,711,290
30,711,290
(203,571)
(494,569)
(494,569)
(698,140)
698,140
$ 25,209,922
74,434
5,174,952
11,400
28,500
37,820
30,537,028
37,061,374
37,061,374
(6,524,346)
(630,573)
(510,341)
(1,140,914)
(7,665,260)
7,665,260
Actual
Amounts
$ 25,502,289 $
103,773
6,409,097
4,500
76,523
32,550
32,128,732
32,080,896
32,080,896
47,836
(630,573)
(491,249)
(1,121,822)
Variance
with Final
Budget
Positive
(Negative)
292,367
29,339
1,234,145
(6,900)
48,023
(5,270)
1,591,704
4,980,478
4,980,478
6,572,182
19,092
19,092
(1,073,986) $ 6,591,274
7,142,655
6,068,669
The accompanying notes are an integral part of the financial statements.
244
ASSETS
Current assets:
Cash and investments
Accounts receivable - net
Due from other governments
Interest receivable
Inventories
Prepaid items
Current restricted assets:
Cash and investments
Total current assets
Non-current assets:
Capital assets - non -depreciable
Capital assets - depreciable
Capital assets - accumulated depreciation
Non-current restricted assets:
Special assessments receivable
Impact fees receivable
Liens receivable
Total non-current assets
Total assets
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions
Deferred amounts on refundings
Total deferred outflows of resources
Indian River County, Florida
Board of County Commissioners
Statement of Fund Net Position
Proprietary Funds
September 30, 2016
Solid Waste
Disposal
District
$ 13,325,869 $
99,011
139,720
20,435
Enterprise Funds
Golf County County
Course Utilities Building
10,275 $ 43,400,684 $ 6,649,154
2,451,958 -
11,400 -
341 554,532 7,762
127,571 1,139,501 -
19,805 35
16,296,093 -
29,881,128 149,587
13,293,870
31,794,449
(12,640,764)
32,447,555
62,328,683
6,681,423
3,420,390
(1,830,481)
Total
$ 63,385,982 $
2,550,969
151,120
583,070
1,267,072
19,840
35,728,859 - 52,024,952
83,295,339 6,656,951 119,983,005
11,573,426 -
429,969,106 680,283
(252,114,279) (342,999)
463,810 -
629,901 -
5,072,949 -
8,271,332 195,594,913 337,284
8,420,919 278,890,252 6,994,235
166,720 134,913 2,003,184 425,689
1,212,035
166,720 134,913 3,215,219 425,689
LIABILITIES
Current liabilities (payable from current assets):
Accounts payable 1,270,367
Retainage payable
Due to other funds
Claims payable
Due to other governments
Other deposits
Unearned revenues
Accrued compensated absences 51,992
Total current liabilities (payable from current assets) 1,322,359
Current liabilites (payable from restricted assets):
Accounts payable - - 25,706 -
Accrued interest payable - - 81,939 -
Notes payable - - 992,000 -
Bonds payable - 2,000,000 -
Customer deposits 133,626 - 3,048,622 -
Total current liabilities (payable from restricted
assets) 133,626 - 6,148,267 -
Totalcurrentliabilities 1,455,985 549,145 8,650,882 281,754
111,995 1,846,537 163,782
84,401 -
365,414 - -
8,357 24,036 23,522
1,000
38,309 -
24,070 547,641 94,450
549,145 2,502,615 281,754
Non-current liabilities:
Accrued compensated absences -
Advance from other funds
Claims payable
Closure and maintenance costs payable 13,009,736
Net pension liability 410,143
Notes payable -
Bonds payable - net of unamortized discount/premium -
Total non-current liabilities 13,419,879
Total liabilities 14,875,864
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions
NET POSITION
Net investment in capital assets
Unrestricted
Total net position
47,039 143,256 3,245
150,925 - -
351,077 5,180,743 1,014,936
5,206,000 -
17,000,884 -
549,041 27,530,883 1,018,181
098,186 36,181,765 1,299,935
12,149 16,846 238,410 19,208
32,447,555
15,159,835
$ 47,607,390 $
8,271,332 165,441,404
(830,532) 80,243,892
7,440,800 $ 245,685,296 $
The accompanying notes are an integral part of the financial statements.
245
337,284
5,763,497
6,100,781 $
31,548,719
465,864,228
(266,928,523)
463,810
629,901
5,072,949
236,651,084
356,634,089
2,730,506
1,212,035
3,942,541
3,392,681
84,401
365,414
55,915
1,000
38,309
718,153
4,655,873
25,706
81,939
992,000
2,000,000
3,182,248
6,281,893
10,937,766
193,540
150,925
13,009,736
6,956,899
5,206,000
17,000,884
42,517,984
53,455,750
286,613
206,497,575
100,336,692
306,834,267 $
Internal
Service Funds
26,694,578
169,277
389,086
28,958
162,059
9,952,466
37,396,424
2,678,726
(2,179,963)
498,763
37,895,187
369,252
369,252
273,824
3,624,891
80,736
3,979,451
3,979,451
64,921
4,887,629
934,378
5,886,928
9,866,379
36,413
498,763
27,862,884
28,361,647
Indian River County, Florida
Board of County Commissioners
Statement of Revenues, Expenses, and Changes in Fund Net Position
Proprietary Funds
For the Year Ended September 30, 2016
OPERATING REVENUES
Charges for services
Charges for services pledged as security for revenue bonds
Total operating revenues
Enterprise Funds
Solid Waste
Disposal Golf
District Course
13,345,745 $ 3,230,630
13,345,745 3,230,630
OPERATING EXPENSES
Personal services 660,395 571,289
Material, supplies, services and other operating 10,978,915 1,864,433
Depreciation 1,075,403 152,480
Total operating expenses 12,714,713 2,588,202
Operating income (loss) 631,032 642,428
NONOPERATING REVENUES (EXPENSES)
Interest income 233,656 3,732
Interest income pledged as security for revenue bonds - -
Gain on disposal of equipment 150 25
Interest expense - (17,410)
Loss on disposal of equipment - -
Total nonoperating revenues (expenses) 233,806 (13,653)
Income (loss) before transfers and capital contributions
Capital contributions
Transfers (63,694) (19,108)
Change in net position 801,144 609,667
864,838 628,775
Total net position - beginning
Total net position - ending
46,806,246 6,831,133
47,607,390 $ 7,440,800
The accompanying notes are an integral part of the financial statements.
246
Enterprise Funds
County County Internal
Utilities Building Total Service Funds
$ - $ 3,406,022 $ 19,982,397 $ 23,260,757
31,089,758 - 31,089,758
31,089,758 3,406,022 51,072,155 23,260,757
8,182,717 1,756,121 11,170,522 3,236,319
11,705,131 930,067 25,478,546 20,975,466
14,384,481 38,462 15,650,826 170,320
34,272,329 2,724,650 52,299,894 24,382,105
(3,182,571) 681,372 (1,227,739) (1,121,348)
37,275 274,663 155,801
517,020 - 517,020
9,131 3,300 12,606
(1,094,748) - (1,112,158)
(53,214) - (53,214)
(621,811) 40,575 (361,083) 155,801
(3,804,382) 721,947 (1,588,822) (965,547)
5,143,316 - 5,143,316 -
(668,925) (140,127) (891,854) 5,936,287
670,009 581,820 2,662,640 4,970,740
245,015,287
$ 245,685,296
5,518,961 304,171,627 23,390,907
6,100,781 $ 306,834,267 $ 28,361,647
Indian River County, Florida
Board of County Commissioners
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2016
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
Proceeds from advances from other funds
Payments on advances from other funds
Net cash provided by (used in) noncapital financing activities
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Principal payments - bonds/notes
Interest paid on long-term debt
Proceeds from advances from other funds
Payments on advances from other funds
Proceeds from sales of capital assets
Purchase of capital assets
Bond paying agent and arbitrage fees
Capital grants and contributions
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 investments
Cash and investments at beginning of year
Cash and investments at end of year
Classified as:
Current assets
Restricted assets
Totals
Enterprise
Funds
Solid Waste
Disposal
District
$ 13,324,075
(9,666,689)
(634,013)
3,023,373
(63,694)
(63,694)
150
(216,775)
(216,625)
223,756
Golf
Course
$ 3,239,266
(1,862,813)
(548,025)
828,428
223,756
2,966,810
26,655,152
$ 29,621,962 $
$ 13,325,869 $
16,296,093
$ 29,621,962 $
The accompanying notes are an integral part of the financial statements.
248
(19,108)
90,000
(135,000)
(64,108)
(17,410)
254,500
(705,254)
25
(294,909)
(763,048)
3,619
3,619
4,891.
5,384
10,275
10,275
10,275
Enter_prise Funds
County
Utilities
$ 32,153,668 $
(11,289,100)
(.7,956,458)
12,908,110
(668,925)
(668,925)
(2,878,000)
(1,095,886)
9,131
(3,435,037)
(9,050)
3,067,648
(4,341,194)
484,431
484,431
8,382,422
County
Building
3,406,022 $
(846,679)
(1,687,788)
871,555
(140,127)
(140,127)
3,300
(249,252)
(245,952)
33,724
33,724
519,200
70,747,121 6,129,954
$ 79,129,543 $ 6,649,154 $
Total
52,123,031
(23,665,281)
(10,826,284)
17,631,466
(891,854)
90,000
(135,000)
(936,854)
(2,878,000)
(1,113,296)
254,500
(705,254)
12,606
(4,195,973)
(9,050)
3,067,648
(5,566,819)
745,530
745,530
11,873,323
103,537,611
115,410,934
Internal
Service Funds
$ 23,037,499
(20,526,389)
(12,161,596)
(9,650,486)
5,936,287
5,936,287
(253,948)
(253,948)
146,654
146,654
(3,821,493)
30,516,071
$ 26,694,578
$ 43,400,684 $ 6,649,154 $ 63,385,982 $ 26,694,578
35,728,859
52,024,952
$ 79,129,543 $ 6,649,154 $ 115,410,934 $ 26,694,578
Continued
Indian River County, Florida
Board of County Commissioners
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2016
Enterprise Funds
Solid Waste
Disposal Golf
District Course
RECONCILIATION OF NET OPERATING INCOME (LOSS) TO NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
Operating income (loss) $ 631,032 $ 642,428
Adjustments to reconcile operating income to net cash
provided by operating activities:
Depreciation 1,075,403 152,480
(Increase) Decrease in assets:
Accounts receivable (130,345) -
Due from other governments 110,175 (600)
Inventories - (32,655)
Liens receivable
Impact fees receivable
Special assessments receivable
Prepaid items 1,136 -
Increase (Decrease) in liabilities:
Accounts payable 311,090 33,153
Due to other governments - 1,722
Retainage payable
Customer deposits (1,500) -
Closure and maintenance costs payable 1,000,000
Net pension liability 20,360 15,741
Unearned revenues - 8,636
Claims payable
Accrued compensated absences 6,022 7,523
Total adjustments
2,392,341 186,000
Net cash provided by (used in) operating activities $ 3,023,373 $ 828,428
NONCASH CAPITAL AND RELATED
FINANCING ACTIVITIES
Change in fair value of investments $ 28,411 $ 474
Capital grants and contributions $ - $
Capital assets purchased through accounts payable $ 2,500 $ 36,627
The accompanying notes are an integral part of the financial statements.
250
Enterprise Funds
County County Internal
Utilities Building Total Service Funds
$ (3,182,571) $ 681,372 $ (1,227,739) $ (1,121,348)
14,384,481 38,462 15,650,826 170,320
(64,593) - (194,938) 130,129
1,558,830 - 1,668,405 (353,387)
(264,310) - (296,965) (13,741)
(744,502) - (744,502)
53,385 - 53,385
142,759 - 142,759
122,113 1,023 124,272 (8,963,682)
517,096 84,804 946,143 91,500
24,036 (2,439) 23,319
17,096 - 17,096
118,031 - 116,531
1,000,000
234,948 53,218 324,267 44,097
8,636 -
335,000
(8,689) 15,115 19,971 30,626
16,090,681 190,183 18,859,205 (8,529,13
$ 12,908,110 $ 871,555 $ 17,631,466 $ (9,650,486)
$ 120,706 $ 10,792 $ 160,383 $ 40,260
$ 2,075,668 $ - $ 2,075,668 $
$ 102,658 $ - $ 141,785 $
Indian River County, Florida
Board of County Commissioners
Statement of Fiduciary Net Position
Fiduciary Funds
September 30, 2016
ASSETS
Cash
Investments, at fair value:
Index funds
U.S. government securities funds
Primary money market fund
Total assets
LIABILITIES
Due to other governments
Other deposits held in escrow
Total liabilities
NET POSITION
Assets held in trust for other postemployment benefits
Total net position
Agency
3,118,835 $
$ 3,118,835 $
496,563
2,622,272
3,118,835
Other
Postemployment
Benefits Trust
The accompanying notes are an integral part of the financial statements.
252
3,001,455
11,289,261
9,183,810
2,028,784
25,503,310
25,503,310
25,503,310
Indian River County, Florida
Board of County Commissioners
Statement of Changes in Fiduciary Net Position
Other Post Employment Benefits Trust Fund
For the Year Ended September 30, 2016
ADDITIONS
Employer contributions $ 12,096,411
Investment income 1,053,296
Investment expense (2,025)
Net investment income 1,051,271
Total additions 13,147,682
DEDUCTIONS
Benefits payments 2,494,528
Total deductions 2,494,528
Change in net position 10,653,154
Net position - beginning 14,850,156
Net position - ending $ 25,503,310
The accompanying notes are an integral part of the financial statements.
253
254
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 1- 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.
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 (a) serves as the governing body of the legally
separate organization and there is a financial burden/benefit relationship or management has operational
responsibility of the organization, (b) the organization provides almost exclusive service or benefit to the
primary government, or (c) total debt of the organization is repayable almost entirely from the resources
of the primary government. Based on these criteria, 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 blended component units.
Blended Component Units
Solid Waste Disposal District (SWDD) — Created pursuant to County Ordinance 87-67, the Board of
County Commissioners serves as the governing body for and has operational responsibility over the
SWDD. The Board also 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.
Emergency Services District (EMS) — Created pursuant to County Ordinance 90-25, the Board of County
Commissioners serves as the governing body for and has operational responsibility over the EMS. The
Board also sets the millage rate for the EMS. Although legally separate, the EMS is appropriately
blended as a governmental fund type (special revenue) component unit into the primary government.
255
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
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
balances, 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 plus deferred
outflows of resources, liabilities plus deferred inflows of resources, 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 and nonmajor funds in the
aggregate for governmental and enterprise funds. The Statement of Fiduciary Net Position presents
assets held by the Board in a custodial capacity for other individuals or organizations.
See Note 15 for more information on the spending hierarchy of fund balances in the fund financial
statements.
Governmental Funds
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, 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.
Under the current financial resources measurement focus, only current assets, deferred outflows of
resources, current liabilities, and deferred inflows of resources 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 fund balances. Accordingly, they are said to
present a summary of sources and uses of "available spendable resources" during a period.
Long-term receivables are reported on their balance sheets in spite of their spending measurement focus.
Advances and notes to other funds are offset as nonspendable fund balance. See Note 15 for more
information on the categories and descriptions of fund balances in the fund financial statements.
256
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
B. Fund Financial Statements — Continued
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 an other 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 Board'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, deferred outflows of resources, liabilities, and deferred inflows of
resources (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 position.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Proprietary
fund operating revenues, such as charges for services and premiums charged to the Board and
employees under various insurance programs, 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. Principal operating expenses include salary
and benefits, cost of sales and services, claims, and insurance premiums. All revenues and expenses not
meeting these definitions are reported as non-operating revenues and expenses.
Amounts paid to acquire capital assets are capitalized as assets in the proprietary fund financial
statements, rather than reported as an expense. Proceeds of long-term debt are recorded as a liability in
the proprietary fund financial statements, rather than as an other financing source. Amounts paid to
reduce long-term indebtedness are reported as a reduction of the related liabilities, rather than as an
expense.
257
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
B. Fund Financial Statements - Continued
Fiduciary Funds
The fiduciary financial statements include financial information for the agency fund and the other
postemployment benefits trust fund. The agency fund of the Board primarily represents assets held by
the Board in a custodial capacity for other individuals or governments. The other postemployment
benefits trust fund (Trust) accounts for activities of the Trust, which accumulates resources for health
insurance benefit payments for current retirees and for current employees upon their retirement. The
agency and Trust fund statements are presented using the accrual basis of accounting.
Governmental Major Funds
General Fund — The General Fund is the general operating fund of the Board. It is used to account for
all financial resources, except those accounted for and reported 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. Funds are also used for administrative expenditures of monitoring the
aforementioned activities.
Secondary Roads Construction Fund — The Secondary Roads Construction Fund accounts for the
expenditures of road and bridge construction, roadway, bridge and right of way maintenance and
drainage, and related administrative expenses. 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 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.
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.
258
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
B. Fund Financial Statements - Continued
Proprietary Major Funds
Solid Waste Disposal District — 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 County 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.
County Building Fund — The County Building Fund accounts for revenues, expenses, assets, and
liabilities associated with the County building permit and inspection program.
Other Fund Types
Internal Service Funds — Internal Service Funds account for Fleet Management, Self Insurance and
Information Technology services provided to other departments of the Board on a cost reimbursement
basis.
Agency Fund — The Agency Fund is used to account for assets held in a custodial capacity by the Board
for other governmental units, other funds, individuals and businesses. Examples include payroll
deductions, self insurance premiums, and developer escrow funds.
Other Postemployment Benefits Trust Fund — The Other Postemployment Benefits Trust Fund accounts
for activities of the Trust, which accumulates resources for health insurance benefit payments for current
retirees and for current employees upon their retirement. Contributions are recorded when earned and
benefit payments and refunds when incurred within each year.
C. Cash and Investments
Cash reported on the financial statements includes bank deposits, cash on hand, certificates of deposit,
money market accounts, and all highly liquid investments with maturities of ninety days or less when
purchased. Investments consist of U.S. Treasury Securities, U.S. Government Agency Securities, and
the Florida Local Government Investment Trust Fund (FLGIT). Investments are reported at fair value
based upon the average price obtained from three brokers/dealers. The FLGIT Fund values are based
upon the fair market value per share of the underlying portfolio. Refer to Note 2-C, Investments, for
further information on individual investments.
259
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
C. Cash and Investments - Continued
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 investments 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 investments on these statements. When restricted and
unrestricted resources are available, expenses are paid first from restricted resources.
D. Allowance for Doubtful Accounts
The Board provides an allowance for water and sewer and ambulance service accounts receivables that
may become uncollectable. At September 30, 2016, the allowance for water and sewer was $424,493
and for ambulance services was $2,067,959. No other allowances for doubtful accounts are maintained
since other accounts receivable are considered collectable as reported at September 30, 2016.
E. Due from Other Governments
This account represents funds due from State and Federal agencies for monthly revenue shares and grant
reimbursements. It also includes excess fees due from the County's constitutional officers at September
30, 2016.
F. Inventories
Inventories are valued at cost, which approximates market, using the "first -in, first -out" method of
accounting, with the exception of the Golf Course and Fleet Internal Service Fund's inventories which
are valued using the average cost method of accounting. Inventories of all funds are recorded as
expenditures (expenses) when consumed rather than when purchased.
G. Prepaid Items
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.
260
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
H. Capital Assets
Capital assets, which include property, plant, equipment, infrastructure (e.g., roads, bridges, right-of-
ways, water and sewer distribution systems, beach restoration, stormwater systems and similar items),
and intangible assets (e.g. software, easements, and rights), are reported in the applicable governmental
or business -type activities column in the government -wide financial statements. The Board defines
capital assets as assets with an initial, individual cost of $1,000 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. Transfers of capital assets within the Board are recorded at their carrying value at the time of
the transfer. The costs of normal maintenance and repairs that do not add to the value of the asset nor
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 and Comptroller, 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
County. Capital assets of the Board's enterprise and internal service funds are reported in the Proprietary
Funds' financial statements.
Property, plant, equipment, intangible, and infrastructure assets of the primary government, as well as
the component units, are depreciated, or amortized as in the case of intangible assets, using the straight-
line method over the following estimated useful lives:
Assets Years
Building and improvements 10 — 50
Machinery and equipment 3 — 10
Utility distribution systems 25 — 50
Road and bridge infrastructure 20 — 50
Fiberoptics 20
Software 3-5
Beach preservation infrastructure 7
Stormwater infrastructure 30
261
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
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
Board did not have any capitalized interest.
J. Deferred Outflows/Inflows of Resources
Deferred outflows of resources represent a consumption of net position/fund balance that applies to a
future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until
then. Deferred inflows of resources represent an acquisition of net position/fund balance that applies to
a future period(s) and so will not be recognized as an inflow of resources (revenue) until then. The
Board has three items that qualify for reporting in these categories.
The first item is unavailable revenue, which arises under a modified accrual basis of accounting, and is
reported as a deferred inflow of resources in the governmental funds balance sheet. The sources of the
unavailable revenue are special assessments on road paving, ambulance service billings, and state and
federal grant revenues. These amounts are deferred and recognized as an inflow of resources in the
period the amounts become available.
The second item is the deferred charge on refunding which is reported as a deferred outflow of resources
on the Statement of Fund Net Position for the Proprietary funds. A deferred charge on refunding results
from the difference in the carrying value of refunded debt and its reacquisition price. This amount is
deferred and amortized over the shorter of the life of the refunding debt.
In addition to the above two deferred items, both deferred outflows and inflows related to pensions are
calculated in accordance with GASB Statement 68, Accounting and Financial Reporting for Pensions.
These deferred resources appear on the Statement of Fund Net Position for Proprietary Funds. These
deferred outflows and inflows are an aggregate of various pension items and will be recognized as
adjustments to pension expense or net pension liability in future reporting years. Further information
and detail on the composition of these items is discussed in Note 12.
262
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
K. Pensions/Net Pension Liability
In the Statement of Fund Net Position for Proprietary Funds, net pension liability represents the Board's
proportionate share of the net pension liability of the cost-sharing pension plans in which it participates.
This proportionate amount represents a share of the present value of projected benefit payments to be
provided through the cost-sharing pension plan to current active and inactive employees. The benefit
payments are attributable to those employees past periods of service, less the amount of the cost-sharing
pension plans' fiduciary net position.
The Board participates in both the Florida Retirement System (FRS), which operates a defined benefit
and compensation plan, and the Health Insurance Subsidy Program (HIS), which is a defined benefit
plan. For purposes of measuring the net pension liability, deferred outflows and inflows of resources
related to pensions, pension expense, and fiduciary net position are determined on the same basis as the
FRS. Benefit payments (including refunds of employee contributions) are recognized when due and
payable in accordance with the benefit terms. Investments are reported at fair value.
Change in Accounting Principles/New Accounting Pronouncement
The Board implemented Governmental Accounting Standards Board (GASB) Statement No. 72, Fair
Value Measurement and Application. This statement addressed accounting and financial reporting issues
related to fair value measurements. It also provided guidance for applying fair value to certain
investments and disclosures related to all fair value measurements.
M. Unamortized Bond Discounts and Premiums
Bond discounts and premiums associated with the issuance of Proprietary Fund revenue bonds are
amortized over the life of the bonds according to the straight-line method. For financial reporting,
unamortized bond discounts and premiums are netted against the applicable long-term debt. Refer to
Note 9B for further information.
263
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
N. 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.
O. Unearned Revenues
In governmental fund financial statements (in accordance with the modified accrual basis of
accounting), unearned revenues represent revenues which are available but not earned.
P. Accrued Compensated Absences
The Board does not report compensated absences in the governmental fund statements since they are not
current liabilities payable from available spendable resources. They are reported in the government -wide
financial statements of the County. Proprietary fund types accrue compensated absences in the period
they are earned.
Q.
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, 2016.
264
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
R. 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
Florida Department of Revenue and the Florida Clerks of Court Operations Corporation, a proposed
operating budget for the following fiscal year. 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 resolutions 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.
6. Formal budgetary integration on an object level is used as a management control device for the
governmental and proprietary funds of the Board. 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 Board lapse at the close of the fiscal year.
265
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 2 - CASH AND INVESTMENTS
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, 2016, the carrying value of the Board's deposits was $1.22,501,480 and the bank
balance was $123,843,159. All the deposits were covered by the FDIC or collateralized in accordance
with Chapter 280, Florida Statutes, also known as the "Florida Security for Public Deposits Act". On
February 2, 2016, the Board of County Commissioners updated its cash and investment policy to
increase the limit on certificates of deposit from $6.0 million to $6.5 million.
B. Accrued Interest
Interest earnings on U.S. Treasury Notes and government agency bonds are recorded in the cash and
investment pools and then allocated to each fund based on each fund's average monthly balance. As of
September 30, 2016, accrued interest for the Board's portfolio totaled $249,411 and was allocated to the
funds based on their average monthly balance for September. The remaining accrued interest is
reflected in utilities and road paving assessments.
266
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 2 - CASH AND INVESTMENTS - Continued
C. Investments
As of September 30, 2016, the Board had the following investments:
Investment Type
Fixed Rate Debt Instruments:
U.S. Treasuries
U.S. Agencies:***
Federal Farm Credit Bureau
Federal Home Loan Bank
Federal Home Loan Mortgage
Federal National Mortgage Assoc.
Other Market Rate Investments:
Florida Local Government
Investment Trust Fund (FLGIT)
W&S Sinking Fund Reserve:
U.S. Treasuries
Total Fair Value
Weighted
Average
Maturity Portfolio Credit
Fair Value In Years Percentage Risks*
$ 82,039,092
0.87 40.99 % N/A
13,988,773 1.63 6.99 AA+
26,640,150 1.16 13.31 AA+
40,952,383 0.98 20.46 AA+
19,964,070 0.53 9.97 AA+
AAAf and
12,467,718 0.08 6.23 S-1**
4,107,392
$ 200,159,578
0.96 2.05 N/A
100
Weighted Average Maturity of Investments 0.90
* Ratings based upon Standard and Poor's
**AAAf credit quality, S-1 Market Volatility
*** The weighted calculation considers the investments are carried until full maturity
(i.e. call dates are not considered).
Fair Value Measurement
The Board categorizes its fair value measurements within the fair value hierarchy established by
generally accepted accounting principles. The hierarchy is based on the valuation inputs used to
measure the fair value of the asset, as determined by the Board's investment advisors. Level 1 inputs are
quoted priced in active markets for identical assets; Level 2 inputs are significant other observable
inputs; Level 3 inputs are significant unobservable inputs.
267
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 2 - CASH AND INVESTMENTS - Continued
C. Investments — Continued
The Board had the following recurring fair value measurements as of September 30, 2016:
U.S. Treasuries
U.S. Agencies
FLGIT
Total Investments
Interest Rate Risk
Level 1
Level 2
- S 86,146,484 S - $ 86,146,484
- 101,545,376 - 101,545,376
- 12,467,718 - 12,467,718
- $ 200 159 578 $ - $ 200,159,578
Level 3 Total
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
of 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
Florida Statutes, Section 218.415 and the Board's investment policy limit investments to the following:
1. Direct obligations of the United States Treasury;
2. Any intergovernmental investment pool, with the exception of SBA pools, authorized pursuant to
the Florida Interlocal Cooperation Act as provided in Florida Statute 163.01;
3. Florida Local Government Investment Trust Fund;
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.
268
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 2 - CASH AND INVESTMENTS - 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 $6.5 million of the portfolio may be placed in
certificates of deposit with any one financial institution. No more than 10% of the portfolio may be
placed in any one money market fund, mutual fund, or intergovernmental investment pool.
Custodial Credit Risk
The Board's investment policy pursuant to Section 218.415 (18), Florida Statutes, requires securities to
be registered and held with a third party custodian. All securities purchased, as well as 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, 2016 the Board's
investment portfolio in U.S. Treasuries, U.S. Agencies, and money market funds was held by The Bank
of New York/Mellon. Additional investments include the Florida Local Government Investment Trust
which was held by the Bank of New York/Mellon.
D. OPEB Trust
Funds are held in the name of the Indian River County OPEB Trust (IRCOT), an irrevocable trust, by a
third party custodian, Bank of New York/Mellon. The contribution for the year ended September 30,
2016 was $12,096,411. Cash balance in the Trust at September 30, 2016 was $3,001,455. The
investments are reported at fair value based upon market -close price on the last business day of each
month.
The Board approved a separate investment policy for the IRCOT assets on February 3, 2009 (last
amended on November 5, 2013). The Board adopted a broadly diversified portfolio composition
consisting of equity, debt, and cash and investments. Asset allocations are divided between short term
and long term investments. Short term asset allocations include cash and investments with maturities of
180 days or less. Long term asset allocations range from 0-60% for equities, 0-60% for fixed income
securities, and 0-100% for cash and investments.
269
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 2 - CASH AND INVESTMENTS - Continued
D. OPEB Trust - Continued
As of September 30, 2016, the Indian River County OPEB Trust (IRCOT) had the following
investments:
Investment Type
Vanguard 500 Index
Vanguard All World Ex -US
Vanguard Mid Cap Index
Vanguard Small Cap Index
Vanguard Short Term Treasury
Vanguard Intermediate Treasury
Vanguard Prime Money Market
Vanguard Federal Money Market
Total fair value
Weighted
Average
Maturity Portfolio
Fair Value In Years Percentage
$ 5,086,893
4,517,800
1,124,120
560,448
6,734,605
2,243,094
2,028,784
206,1.1.1.
22,501,855
The Board has the following recurring fair value measure
September 30, 2016:
Index funds
U.S. government securities funds
Money market fund
Total investments
N/A
N/A
N/A
N/A
2.30
5.60
0.14
0.15
22.60
20.08
4.99
2.49
29.93
9.97
9.02
0.92
100.00 %
ents for investments in the OPEB Trust as of
Level 1 Level 2
$ 11,289,261 $
9,183,810
2,028,784
$ 22,501,855 $
Level 3
Total
11,289,261
9,183,810
2,028,784
22,501,855
270
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2016
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 2015-2016 fiscal year were levied in.
October 2015. All taxes are due and payable on November 1 or as soon as the assessments 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.
NOTE 4 — CAPITAL ASSETS
A. Governmental Fund Type Capital Assets
A summary of changes in the Governmental fund type capital assets is as follows:
Buildings
And Construction
Land Improvements Equipment Intangibles Infrastructure In Progess Total
Balance 10/1/2015 $ 133,663,011 8 212,833,991 $ 38,863,637 $ 3,751,845 $ 385,665,017 85,6 5,017 $ 50,343,335 $ 825,120,836
Additions 113,868 18,003,113 4,893,393 616,141 30,588,334 22,517,040 76,731,889
Deletions - (958,576) (2,195,323) (28,833) (452,9 (49,151,965) (52,787,625)
Balance 9/30/2016 $ 133,776,879 $ 229,878,528 $ 41,561,707 $ 4,339,153 $ 415,800,423 $ 23,708,410 $ 849,065,100
Depreciation expense, which includes amortization expense on intangible assets, 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.
B. Proprietary Fund Type Capital Assets
Enterprise Funds
A summary of changes in the Enterprise fund type capital assets is as follows:
Balance 10/1/2015
Additions
Deletions
Less:
Accumulated Depreciation
Balance 9/30/2016
Land
Buildings
And
Improvements Equipment Intangibles
Construction
In Progress
Total
21,556,248 $ 450,213,827
4,027,193
(193,174)
$ 15,857,628
1,596,743
(925,550)
$ 2,808,717
166,336
$ 1,855,942
2,511,181
(2,062,144)
$ 492,292,362
8,301,453
(3,180,868)
21,556,248
454,047,846 16,528,821 2,975,053
(252,824,571) (13,219,770) (884,182)
21,556,248 $ 201,223,275 $ 3,309,051 $ 2,090,871
2,304,979 497,412,947
(266,928,523)
$ 2,304,979 $ 230,484,424
271
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 4 — CAPITAL ASSETS - Continued
B. Proprietary Fund Type Capital Assets - Continued
Internal Service Funds
A summary of changes in the Internal Service fund type capital assets is as follows:
Balance 10/1/2015
Additions
Deletions
Less: Accumulated Depreciation
Balance 9/30/2016
Buildings
And
Improvements Equipment Intangibles
$ 2,837
$ 940,960
127,654
(118,889)
$ 1,599,871
126,293
2,837 949,725 1,726,164
(2,837) (745,027) (1,432,099)
$ 204,698 $ 294,065
Total
$ 2,543,668
253,947
(118,889)
2,678,726
(2,179,963)
$ 498,763
NOTE 5 — RESTRICTED CASH AND INVESTMENTS
Sinking funds
Renewal and
replacement
Customer deposits
Capital construction.
Closure and maintenance cost
Total
Solid Waste
Disposal
District
County
Utilities
Total
- $ 4,438,664 $
3,152,731.
133,626
13,009,736
3,485,928
3,048,622
24,755,645
16,296,093 $ 35,728,859
4,438,664
6,638,659
3,182,248
24,755,645
13,009,736
$ 52,024,952
272
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 6 - INTERFUND BALANCES
Interfund balances at September 30, 2016, consisted of the following:
Receivable Fund Payable Fund
Amount
General Fund Nonmajor Governmental Funds $ 13,000
General Fund Golf Course Enterprise Fund 365,414
378,414
In September 2014,.the General Fund loaned $630,000 to the Golf Course Fund for a new irrigation
system. In January 2016, the General Fund loaned $254,500 to the Golf Course Fund to purchase new
golf carts. In September 2016,.the General Fund loaned the Golf Course Fund $90,000 as a short-term.
cash loan to be repaid within the next twelve months. The amount reported as due from the Golf Course
Fund is the current portion of the scheduled payments due to the General Fund in fiscal year 2017..The
remaining amount due from the Golf Course Fund is reported as an interfund advance. The amounts due
from the Nonmajor Governmental Funds represent short-term cash loans that will be repaid within the
next twelve months.
Interfund advance at September 30, 2016, consisted of the following:
Receivable Fund Payable Fund Amount
General Fund Golf Course Fund $ 150,925
This amount is considered a long-term advance between major funds expected to be paid in fiscal years
2018, 2019 and 2020. This amount has been presented as nonspendable on the General Fund Balance
Sheet.
273
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 7 - INTERFUND TRANSFERS
Interfund transfers for the year ended September 30, 2016., consisted of the following:
Transfers In:
Nonmajor Internal
Transportation Governmental Utilities Service
Fund Funds Fund Funds Total
Transfers Out:
General Fund $ 9,199,769 $ 123,947 $ - $ 3,401,741 $ 12,725,457
Impact Fees Fund - - 6,369 6,369
Secondary Roads
Construction Fund 661,897 - 19,108 681,005
Transportation Fund - 82,667 821,176 903,843
Emergency Services
District Fund - - 630,573 630,573
Optional Sales
Tax Fund 125,000 - - 125,000
Nonmajor
Governmental Funds - - 82,799 82,799
Solid Waste Disposal
District Fund - - 63,694 63,694
Golf Course Fund - - 19,108 19,108
County Utilities Fund - - 751,592 (a) 751,592
County Building Fund - - 140,127 140,127
Total $ 9,199,769 $ 910,844 $ 82,667 $ 5,936,287 $ 16,129,567
(a) Nets to $668,925 reported as Transfers for the Utilities Fund
274
(a)
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 7 - INTERFUND TRANSFERS - Continued
Transfers are used for the following purposes: 1) use unrestricted general fund revenues to finance
transportation activities which are accounted for in a special revenue fund, 2) use unrestricted general
fund revenues for beach restoration activities which must be accounted for in another fund, 3) use
unrestricted general fund revenues to offset a portion of salaries and benefits expenses for an employee
accounted for in the health insurance fund, 4) use secondary roads construction fund revenues to offset
portions of a road millings and bus transfer site projects, 5) use unrestricted stormwater revenues to
offset Egret Marsh employee costs accounted for in the utilities fund, 6) use transportation fund
revenues to offset vehicle maintenance costs accounted for in the fleet internal service fund, 7) use
capital project fund revenues for improvements to the Historic Dodgertown facility, and 8) use
governmental and proprietary fund revenues to offset an additional contribution to the OPEB trust made
by the self insurance internal service fund.
275
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 8 - ACCOUNTS PAYABLE
Accounts payable at September 30, 2016, were as follows:
Governmental Funds:
General
Impact Fees
Secondary Roads Construction
Transportation
Emergency Services
Optional Sales Tax
Other Governmental
Total Governmental Funds
Proprietary Funds:
Payable from current assets:
Solid Waste
Golf Course
Utilities
Building
Other Proprietary
Payable from restricted assets:
Utilities
Total Proprietary Funds
Vendors
$ 1,329,136
21,395
1,365,163
296,817
160,287
759,981
471,580
$ 4,404,359
Total
Salaries and Accounts
Benefits Payable
$ 438,540 $ 1,767,676
3,552 24,947
9,361 1,374,524
293,844 590,661
822,708 982,995
759,981
30,776 502,356
$ 1,598,781 $ 6,003,140
1,247,370 $
93,025
1,563,074
102,140
219,595
25,706
$ 3,250,910 $
22,997 $ 1,270,367
18,970 111,995
283,463 1,846,537
61,642 163,782
54,229 273,824
25,706
441,301 $ 3,692,211
Included in salaries and benefits payable is a liability to the Florida Retirement System (FRS) for
pension contributions due. The amounts due to FRS at September 30, 2016 were $193,207 for
governmental funds and $30,106 for proprietary funds.
The Board has not engaged in any short-term debt activity during fiscal year 2016 other than that listed
in Note 6.
276
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 9 - LONG-TERM LIABILITIES
A. Governmental Long -Term Debt
Changes in Long -Term Liabilities
Balance Balance
October 1, September 30,
2015 Additions Deletions 2016
Accrued Compensated Absences: $ 4,102,706 $ 2,913,870 $ 2,988,862 $ 4,027,714
Bonds Payable:
Limited General Obligation
Bonds - 2006 Series 3,545,000 - 3,545,000 -
Spring Training Facility
Revenue Bonds - 2001 Series 7,230,000 - 495,000 6,735,000
Total Bonds Payable 10,775,000 - 4,040,000 6,735,000
Notes Payable:
Limited General Obligation
Refunding - 2015 Series 20,049,000 - 343,000 19,706,000
Grand Total $ 34,926,706 $ 2,913,870 $ 7,371,862 $ 30,468,714
Of the $4,027,714 liability for accrued compensated absences, management estimates that $2,685,312
will be due and payable within one year. The long -tern' 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.
The General Obligation Bonds and Spring Training Facility Revenue 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 government -wide financial statements of the County. Payments on
the above general obligation bond and note and the revenue bonds are made by debt service funds (refer
to the Table of Contents for these debt service funds under the category: Combining Balance Sheet and
Combining Statement of Revenues, Expenditures and Changes in Fund Balances of Nonmajor
Governmental Funds).
277
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 9 - LONG-TERM LIABILITIES — Continued
A. Governmental Long -Term Debt - Continued
Annual Debt Service Payments
The annual debt service payments for bonds and notes outstanding at September 30, 2016, are as
follows:
Fiscal Year
Ending
September 30
Spring Training Facility
Revenue Bonds
Series 2001
Limited General
Obligation Refunding Note
Series 2015
2017
2018
2019
2020
2021
2022-2026
2027-2031
Total
Less:
Current portion
Total
Principal
520,000
550,000
585,000
615,000
650,000
1,695,000
2,120,000
Interest
$ 344,050
316,750
287,875
257,163
224,875
793,000
324,750
6,735,000 2,548,463
520,000
Principal Interest
$ 4,053,000 $ 327,119
4,158,000 259,840
4,227,000 190,817
4,298,000 120,649
2,970,000 49,302
19,706,000 947,727
4,053,000
6,215,000 $ 2,548,463 $ 15,653,000 $ 947,727
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 Board 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 currently known as "Historic 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 Board 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
278
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 9 - LONG-TERM LIABILITIES - Continued
A. Governmental Long -Term Debt — Continued
Spring Training Facility Revenue Bonds - Continued
3. Eighty-six percent (86%) of the Local Government Half -Cent Sales Tax distributed to the Board,
pursuant to Chapter 218, part VI, Florida Statutes.
The foregoing is collectively referred to herein as the "pledged revenues". These revenue streams are
pledged for the remaining term of the bonds.
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 pledged revenue for
the Series 2001 bonds immediately following the April 1, 2021 principal payment on the Series 2001
bonds.
The current principal and interest payments of $852,044 represent 9.59 percent of total pledged
revenues. All three pledged revenue sources totaled $8,886,139 for the current fiscal year. The Board
applied 100% of the state subsidy, 68% of the Fourth -Cent Tourist Tax, and none of the Half -Cent Sales
Tax to the debt service payments. The total principal and interest remaining to be paid on the bonds is
$9,283,463.
Bonds Issued - At September 30, 2016, Spring Training Facility Revenue Bonds consisted of the
following:
Description
Outstanding at
Interest Rates September 30,
and Date Maturity Issue 2016
Spring Training Facility
Revenue Bonds, 2001 Series
3.30%-5.25%
4/1 and 10/1
279
2031 $ 16,810,000 $ 6,735,000
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 9 - LONG-TERM LIABILITIES - Continued
A. Governmental Long -Term Debt — Continued
Spring Training Facility Revenue Bonds - Continued
Remaining 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, 2017
Date Principal Amount
April 1, 2017 $ 520,000
Term Bonds due April 1, 2021
Date Principal Amount
April 1, 2018 $ 550,000
April 1, 2019 585,000
April 1, 2020 615,000
April 1, 2021 650,000
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
Limited General Obligation Refunding Note, Series 2015
Purpose - On April 7, 2015, the Board voted to redeem $19,075,000 of outstanding 2006 Limited
General Obligation Bonds with a 7 year note from Regions Capital Advantage, Inc. The refunding
ultimately saved the Board $1.2 million over the 7 year remaining life of the bonds.
280
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 9 - LONG-TERM LIABILITIES - Continued
A.
Governmental Long -Term Debt - Continued
Limited General Obligation Refunding Note, Series 2015 - Continued
The aggregate difference in debt service between the 2015 note ($28,959,008) and the 2006 bonds
($30,315,331) was $1,356,323. These amounts include the 7/1/2015 and 7/1/2016 principal and interest
payments which were excluded in the refunding. The net economic gain was $636,694 and is amortized
over the life (72 months) of the new debt. The unamortized balance of $481,942 is reflected as a
deferred outflow of resources on the government -wide Statement of Net Position. This refinancing
lowered the annual debt service by $150,000.
Pledge of revenues — The principal and interest on the bonds are payable from the sole source of ad
valorem taxes not exceeding 1/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. The total tax revenue received
was $4,594,381 of which 100% is pledged for payment of this note and the 2006 bond. Total principal
and interest paid on this note was $675,813 and represents 15% of total pledged revenue.
Maturity and Interest Rate - Interest payments are made semiannually beginning July 1, 2015 through
July 1, 2021. Annual principal payments begin July 1, 2015 and end July 1, 2021. The interest rate is
fixed at 1.66%. The note may be paid early without a prepayment penalty.
B. Proprietary Long -Term Debt
Changes in Long -Term Liabilities
Accrued Compensated Absences
Note Payable:
Water & Sewer Refunding
Note Series 2015
Bonds Payable:
Water & Sewer Revenue
Refunding Series 2009
Grand Total
Balance
October 1,
2015.Additions
Balance
September 30,
Deletions 2016
$ 1,006,753 $
7,171,000
19,525,000
27,702,753
924,282 $ 873,685 $ 1,057,350
973,000 6,198,000
1,905,000
924,282 $ 3,751,685
17,620,000
24,875,350
281
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 9 - LONG-TERM LIABILITIES - Continued
B.
Proprietary Funds Long -Term Debt - Continued
Annual Debt Service Payments
The annual debt service payments for bonds and notes outstanding at September 30, 2016 are as follows:
Fiscal Year
Ending
September 30
2017
2018
2019.
2020
2021
2022-2024
Total
Less:
Current portion
Add:
Unamortized
bond premium
Total
Water and Sewer
Revenue Refunding
Note Series 2015
Principal
Water and Sewer
Revenue Refunding
Bonds Series 2009
Interest Principal
Interest
$ 992,000
1,007,000
1,025,000
1,042,000
1,058,000
1,074,000
$ 102,267
85,899
69,284
52,371
35,178
17,721
6,198,000 362,720
992,000
$ 5,206,000
$ 2,000,000
2,100,000
2,205,000
2,315,000
2,430,000
6,570,000
17,620,000
2,000,000
1,380,884
$ 881,000
781,000
676,000
565,750
450,000
596,500
3,950,250
362,720 S 17,000,884 $ 3,950,250
Water and Sewer Revenue Refunding Note, Series 2015
Purpose - On August 18, 2015, the Board voted to early call all of the outstanding Water and Sewer
Revenue Refunding 2005 Bonds. The Board paid down 50% of the debt ($7,100,000) with cash and
refinanced the remaining 50% ($7,105,000) with a 7 year note. The total amount borrowed included the
cost of issuance and accrued interest totaling $66,000, for a grand total of $7,171,000.
The aggregate difference in debt service between the Series 2005 bonds ($18,866,875) and the Series
2015 note ($7,653,356), cash contribution and September 1, 2016 principal and interest payment
($9,162,642) is $2,050,877. The net economic gain was $583,991; which included the refinancing,
accrued interest, and cash contribution. This lowered the annual debt service by $1.2 million. The net
economic gain is amortized over the 7 year life of the note. The unamortized balance of the deferred
amount on the refunding at September 30, 2016.is $493,611 and is reflected as a deferred outflow of
resources on the Statement of Net Position.
282
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 9 - LONG-TERM LIABILITIES - Continued
B. Proprietary Funds Long -Term Debt - Continued
Water and Sewer Revenue Refunding Note, Series 2015 - Continued
Pledge of Revenues — The note is collateralized, for the remaining term of the note, by a pledge of all net
revenues derived from the operation of the system, certain surcharges, and special assessments. Annual
principal and interest payments of $1,092,636 represent approximately eight percent of net revenues of
$13,258,661 of the utility system. The total principal and interest remaining to be paid on the 2015 note
is $6,560,720. Refer to Schedule 14 in the statistical section for further detail.
Rate Covenant — Net revenues shall be sufficient to pay 100% of reserve and 120% of current year
principal and interest requirements.
Maturity and Interest Rate - Interest payments are made semiannually beginning September 1, 2016
through September 1, 2022. Annual principal payments begin September 1, 2016 and end September 1,
2022. The interest rate is fixed at 1.65%. Note may be paid early without any prepayment penalty.
Water and Sewer Revenue Refunding Bonds, Series 2009
Purpose - The Series 2009 bonds were issued to refund and redeem on September 11, 2009,
$28,270,000 of the Board's outstanding Water and Sewer Revenue Bonds, Series 1993A. The
refunding excluded debt service payments due September 1, 2010 and 2011.
The aggregate difference in debt service between the Series 1993A ($80,434,415) and Series 2009
($78,755,772) is $1,678,643. The net economic gain, which lowered average annual debt service by
$126,000, was $1,368,427 and is amortized over the life of the bonds. The unamortized balance of the
deferred amount on the refunding at September 30, 2016 is $718,424 and is reflected as a deferred
outflow of resources on the Statement of Net Position.
Pledge of Revenues — The revenue bonds are collateralized, for the remaining term of the bonds, by a
pledge of all net revenues derived from the operation of the system, certain surcharges, and special
assessments. The current principal and interest payments of $2,881,000 represent approximately twenty-
two percent of net revenues of $13,258,661 of the utility system. The total principal and interest
remaining to be paid on the bonds is $21,570,250.
Rate Covenant — Net revenues shall be sufficient to pay 100% of reserve and 120% of current year
principal and interest requirements.
283
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 9 - LONG-TERM LIABILITIES - Continued
B. Proprietary Funds Long Term Debt — Continued
Water and Sewer Revenue Refunding Bonds, Series 2009 - Continued
Bonds Issued - At September 30, 2016, the revenue refunding bonds consisted of the following:
Outstanding at
Interest Rates September 30,
Description and Date Maturity Issue 2016
Water and Sewer 4-5%
Revenue Refunding Bonds, 3/1 and 9/1 2024 $ 26,370,000 $ 17,620,000
Series 2009
Optional Redemption - The Series 2009 bonds maturing on or prior to September 1, 2019,.are not
subject to redemption prior to their respective dates of maturity. The Series 2009 bonds stated to mature
after September 1, 2019, are subject to redemption at the option of the Board in whole or, from time to
time, in part on September 1, 2019, at the redemption price of the principal amount to be redeemed, plus
accrued interest to the date of redemption.
284
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 10 - 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 annually obtains updated and revised estimates of total future closure and post -closure costs
from its consulting engineers. The SWDD recognizes the expenses associated with the final closure and
post -closure maintenance of the landfill areas over the active life of those areas. 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 are approximately $2.9 million. These costs will
be recognized in future periods as the remaining capacity is filled. The Board's policy is to fund 100%
of the current year's allocation (based upon the consulting engineers' report) of both closure and post -
closure care.
Required closure and post -closure sub -accounts:
Capacity Estimated
Used Closing_
Closure Costs
Class I - Segment III, Cell I
Construction and Demolition
Post -closure Costs
Class I - Segments I and II
Construction and Demolition
Amount
33% 2020 $ 9,301,947
91% 2026 1,174,866
N/A N/A 2,338,435
N/A N/A 194,488
Total account balance at 9/30/16 $ 13,009,736
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, deflation, 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. The SWDD is making annual deposits to a closure
and post -closure costs account to provide for the financing of future closure -related expenses. At
September 30, 2016, $12,467,718 was on deposit at the Florida Local Government Investment Trust and
$542,018 was on deposit in the Board's Operating account.
A summary of changes in the landfill closure liability account is as follows:
Closure and long-term care costs
Balance Balance
10/1/2015 Deposits Withdrawals 9/30/2016
12,009,736 $ 1,000,000 $ - $ 13,009,736
Of the $13,009,736 liability for closure and long-term care costs, management estimates that no funds
will be due and payable within one year.
285
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 11— POLLUTION REMEDIATION
In accordance with GASB Statement 49, Accounting and Financial Reporting for Pollution Remediation
Obligations, a consultant evaluated two sites to assess pollution remediation liabilities. The consultant
calculated for each site an expected value (EV) estimate for pollution remediation based on three
plausible mitigation scenarios. An obligating event occurred at each of the following two sites requiring
the Board (using the consultant's services) to attempt to accrue a liability for pollution remediation. The
liability totaled $2,445,100 at September 30, 2016 for the two sites. The pollution remediation
obligation is an estimate and subject to changes resulting from price increases and reductions,
technology, and changes in applicable laws or regulations. There are no estimated recoveries that would
reduce the liability.
Governmental Funds:
1. South Gifford Road closed landfill — The nature of the pollution remediation obligation is
chlorinated solvent contamination. The consultant will conduct monitoring, bioremediation and
reporting with the FDEP. The amount of the estimated year end liability is $2,440,000 and will be
paid from the Optional Sales Tax Fund.
2. Old Administration Building — The nature of the pollution remediation obligation is closed
underground storage tank contamination. The consultant will conduct monitoring and reporting with
the FDEP. The amount of the estimated year end liability is $5,100 and will be paid from the
General Fund.
Total governmental funds liability: $2,445,100
The Board does not report the liability for pollution remediation in the governmental fund statements
since they are not current liabilities payable from available spendable resources. The liability is reported
in the government -wide financial statements of the County.
286
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 12 - RETIREMENT PLAN - Florida Retirement System (FRS)
General Information: All of the Board's employees participate in the Florida Retirement System (FRS).
As provided by Chapters 121 and 112, Florida Statutes, the FRS provides two cost sharing, multiple
employer defined benefit plans administered by the Florida Department of Management Services,
Division of Retirement, including the FRS Pension Plan ("Pension Plan") and the Retiree Health
Insurance Subsidy ("HIS Plan"). Under Section 121.4501, Florida Statutes, the FRS also provides a
defined contribution plan ("Investment Plan") alternative to the FRS Pension Plan, which is
administered by the State Board of Administration ("SBA"). As a general rule, membership in the FRS
is compulsory for all employees working in a county, state university, community college, or a
participating city or special district within the State of Florida. The FRS provides retirement and
disability benefits, annual cost -of -living adjustments, and death benefits to plan members and
beneficiaries. Benefits are established by Chapter 121, Florida Statutes, and Chapter 60S, Florida
Administrative Code. Amendments to the law can be made only by an act of the Florida State
Legislature.
The State of Florida annually issues a publicly available financial report that includes financial
statements and required supplementary information for the FRS. The latest available report may be
obtained by writing to the State of Florida Division of Retirement, Department of Management Services,
P.O. Box 9000, Tallahassee, Florida 32315-9000, or from the web site:
www.dms.myflorida.com/workforce operations/retirement/publications.
Pension Plan
Plan Description: The Pension Plan is a cost-sharing multiple -employer defined benefit pension plan,
with a Deferred Retirement Option Program ("DROP") for eligible employees.
Benefits Provided: Benefits under the Pension Plan are computed on the basis of age, average final
compensation, and service credit. Regular Class members who retire at or after age 62 with at least six
years of credited service or 30 years of service regardless of age are entitled to a retirement benefit
payable monthly for life. The benefit is equal to 1.6% of their final average compensation based on the
five highest years of salary, for each year of credited service. Vested members with less than 30 years
of service may retire before age 62 and receive reduced retirement benefits.
Special Risk Administrative Support class members who retire at or after age 55 with at least six years
of credited service or 25 years of service regardless of age are entitled to a retirement benefit payable
monthly for life. This benefit is equal to 1.6% of their final average compensation based on the five
highest years of salary, for each year of credited service.
Special Risk class members (sworn law enforcement officers, firefighters, and correctional officers) who
retire at or after age 55 with at least six years of credited service, or with 25 years of service regardless
of age, are entitled to a retirement benefit payable monthly for life equal to 3.0% of their final average
compensation based on the five highest years of salary for each year of credited service.
287
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 12 - RETIREMENT PLAN - Florida Retirement System (FRS) - Continued
Pension Plan - Continued
Senior Management Service class members who retire at or after age 62 with at least six years of
credited service or 30 years of service regardless of age are entitled to a retirement benefit payable
monthly for life, equal to 2.0% of their final average compensation based on the five highest years of
salary for each year of credited service. Elected Officers' class members who retire at or after age 62
with at least six years of credited service or 30 years of service regardless of age are entitled to a
retirement benefit payable monthly for life, equal to 3.0% (3.33% for judges and justices) of their final
average compensation based on the five highest years of salary for each year of credited service.
For Plan members enrolled on or after July 1, 2011, the vesting requirement is extended to eight years of
credited service for all these members and increasing normal retirement to age 65 or 33 years of service
regardless of age for Regular, Senior Management Service, and Elected Officers' class members, and to
age 60 or 30 years of service regardless of age for Special Risk and Special Risk Administrative Support
class members. Also, the final average compensation for all these members will be based on the eight
highest years of salary.
As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the Pension Plan
before July 1, 2011 and all service credit was accrued before July 1, 2011, the annual cost -of -living
adjustment is three percent per year. If the member is initially enrolled before July 1, 2011 and has
service credit on or after July 1, 2011, there is an individually calculated cost -of -living adjustment. The
annual cost -of -living adjustment is proportion of three percent determined by dividing the sum of the
pre -July 2011 service credit by the total service credit at retirement multiplied by three percent. Plan
members initially enrolled on or after July 1, 2011, will not have a cost -of -living adjustment after
retirement.
In addition to the above benefits, the DROP program allows eligible members to defer receipt of
monthly retirement benefit payments while continuing employment with a FRS employer for a period
not to exceed 60 months after electing to participate. Deferred monthly benefits are held in the FRS
Trust Fund and accrue interest. There are no required contributions by DROP participants.
Contributions: The State of Florida establishes contribution rates for participating employers and
employees in section 121.71 Florida Statutes. Effective July 1, 2011, the FRS became a contributory
plan for all members, except DROP participants, whereby members contribute 3% and employers pay a
rate based upon each member's employment class. Classes and rates in effect at July 1, 2016 were:
regular class 7.52%, special risk 22.57%, special risk administrative support 28.06%, senior
management 21.77%, DROP 12.99%, and elected official class 42.47%. Included in these rates is a
health insurance subsidy of 1.66%. Employer contributions to the FRS are based on a percentage of
covered payroll that has been actuarially determined as an amount, when combined with the 3%
employee contributions, is expected to finance the cost of benefits earned by employers during the year
with an additional amount to finance any unfunded accrued liability.
288
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 12 - RETIREMENT PLAN - Florida Retirement System (FRS) - Continued
Pension Plan - Continued
The Board's actuarial contribution to FRS under the Pension Plan for the year ended September 30,
2016, was $4,41.1,928. Employee contributions for September 30, 2016 were $917,434. Both employer
and employee contributions were equal to 100% of the required contribution for each year.
Pension Liabilities, Pension Expense, and Deferred Outflow of Resources and Deferred Inflow of
Resources Related to Pension Plan: At September 30, 2016, the Division of Retirement calculated the
Board's liability of $43,723,982 for the FRS plan for its proportionate share of the net pension liability.
The net pension liability was measured as of June 30, 2016, and the total pension liability used to
calculate the net pension liability was determined by an actuarial valuation as of July 1, 2016. The
Board's proportion of the net pension liability was based on a projection of the Board's long-term share
of contributions to the pension plan relative to the projected contributions of all participating employers,
actuarially determined. At June 30, 2016,.the Board's proportionate share was 0.1.73164% for the FRS
pension plan. This was an increase of 0.017176% from its proportionate share measured as of June 30,
2015.
For the year ended September 30, 2016, the Board's calculated total increase of actuarially determined
pension expense was $3,513,650. Of this amount, the Board recognized $396,798 in the enterprise
funds and $54,024 in the internal service funds. In addition, the Board's calculated deferred outflows of
resources and deferred inflows of resources related to pensions from the following sources were:
Description
Differences between expected and
actual experience
Changes in assumptions
Net difference between projected and actual
earnings on pension plan investments
Changes in proportion and differences between
Board contributions and proportionate share of
contributions
Board contributions subsequent to the measure-
ment date
Total
Deferred Outflows Deferred Inflows
of Resources of Resources
3,347,845
2,645,170
11,302,116
407,100
2,041,338 1,262,252
1,258,099
$ 20,594,568 $ 1,669,352
Deferred outflows related to pensions recognized by enterprise funds were $2,730,506 and $369,252 for
internal service funds. Deferred inflows related to pensions recognized by the enterprise funds were
$286,613 and $36,413 for the internal service funds.
289
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 12 - RETIREMENT PLAN - Florida Retirement System (FRS) - Continued
Pension Plan - Continued
The deferred outflows of resources related to pensions totaling $1,258,099 resulting from Board
contributions subsequent to the measurement date, will be recognized as a reduction of the net pension
liability in the year ended September 30, 2017. Other amounts reported as deferred outflows of
resources and deferred inflows of resources related to pensions will be recognized in pension expense as
follows:
Fiscal Year Ending September 30:
2017
2018
2019
2020
2021
Thereafter
Amount
Recognized
$ 2,438,062
2,438,062
7,049,180
4,805,456
706,685
229,672
Total $ 17,667,117
Actuarial Assumptions: The total pension liability in the July 1, 2016 actuarial valuation was
determined using the following actuarial assumption, applied to all periods included in the measurement:
Valuation date:
Measurement date:
Discount rate:
Long-term expected rate of return:
Inflation:
Salary increase:
Mortality:
Actuarial cost method:
July 1, 2016
June 30, 2016
7.60%
7.60%, net of pension plan investment expense,
including inflation
2.60%
3.25%, including inflation
Generational RP -2000 with Projections Scale BB
Individual Entry Age
The actuarial assumptions that determined the total pension liability used in the July 1, 2016 valuation
were based on the results of an actuarial experience study for the period July 1, 2008 through June 30,
2013.
The actuarial assumptions for demographic and economic assumptions were adjusted to those used in
the previous valuation. Assumptions in the FRS actuarial study for funding purposes were also adjusted.
These changes were approved by the 2016 FRS Actuarial Assumptions Conferences. The changes are
explained as follows:
• The discount rate and long-term expected rate of return, net of investment expense were both
reduced since the prior actuarial valuation by 0.05 percent from 7.65 percent to 7.60 percent to
increase the likelihood that FRS will meet or exceed its assumed investment return in future years.
290
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 12 - RETIREMENT PLAN - Florida Retirement System (FRS) - Continued
Pension Plan - Continued
• The mortality assumption applied to active members was updated to better anticipate expected future
experience.
Long -Term, Expected Rate of Return: The long-term expected rate of return on pension plan
investments are not based on historical returns, but instead are based on a forward-looking capital
market economic model. The allocation policy's description of each class was used to map the target
allocation to the asset classes shown below. Each asset class assumption is based upon a consistent set
of underlying assumptions and includes an adjustment for the inflation assumption. The target
allocation and best estimates of arithmetic and geometric real rates of return for each major asset class
are summarized in the following table:
Asset Class
Cash
Fixed Income
Global Equity
Real Estate (Property)
Private Equity
Strategic Investments
Total
Assumed inflation -mean
Annual
Target Arithmetic
Allocation Return
1% 3.0%
18% 4.7%
53% 8.1%
10% 6.4%
6% 11.5%
12% 6.1%
100%
291
Compound
Annual
(Geometric)
Return
3.0%
4.6%
6.8%
5.8%
7.8%
5.6%
2.6%
Standard
Deviation
1.7%
4.6%
17.2%
12.0%
30.0%
11.1%
1.9%
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 12 - RETIREMENT PLAN - Florida Retirement System (FRS) - Continued
Pension Plan - Continued
Discount rate for Pension Plan: The discount rate used to measure the total pension liability was 7.60%.
The projection of cash flows used to determine the discount rate assumed that plan member
contributions will be made at the current contribution rate and that the Board's contributions will be
made at statutorily required rates, actuarially determined. Based on those assumptions, the pension
plans' fiduciary net position was projected to be available to make all projected future benefit payments
of current active and inactive employees if future experience follows assumptions and the actuarially
determined contribution is contributed in full each year. Therefore, the discount rate for calculation of
the total pension liability is equal to the long-term expected rate of return.
Sensitivity of the Board's Proportionate Share of the Net Position Liability to Changes in the Discount
Rate for the Pension Plan: The following presents the Board's proportionate share of the NPL (net
pension liability) of the pension plan calculated using the discount rate of 7.60%. Also presented is
what the Board's proportionate share of the FRS plan NPL would be if it were calculated using a
discount rate that is 1% lower or 1% higher than the current rate:
1%
Decrease (6.60%)
Current Discount 1%
Rate (7.60%) Increase (8.60%)
Board's proportionate share of NPL $80,498,810 $43,723,982
$13,113,793
Pension Plan Fiduciary Net Position: Detailed information regarding the Pension Plan's fiduciary net
position is available in the separately issued FRS Pension Plan and Other State -Administered Systems
Comprehensive Annual Financial Report. This report is available by writing to the State of Florida,
Division of Retirement, Department of Management Services, P.O. Box 9000, Tallahassee, Florida
32315-9000 or by email at rep@dms.myflorida.com, or by telephone toll free at (844) 377-1888 or (850)
907-6500. This report identifies statements that were prepared in accordance with generally accepted
accounting principles, the measurement focus and basis of accounting, various investment valuations,
various pension plan benefits, assumptions used, and many other details.
292
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 12 - RETIREMENT PLAN - Continued
Retiree Health Insurance Subsidy (HIS) Program
Plan Description: The HIS Program is a cost-sharing, multiple -employer, defined benefit pension plan
established to provide a monthly subsidy payment to retired members of any state -administered
retirement system. It was established under Section 112.363, Florida Statutes. Benefits are not
guaranteed and are subject to annual legislative appropriation. In the event legislative appropriation or
available funds fail to provide full subsidy benefits to all participants, benefits may be reduced or
canceled. HIS is administered by the Florida Department of Management Services, Division of
Retirement.
Benefits Provided: For fiscal year ended September 30, 2016, eligible retirees and beneficiaries
received a monthly HIS payment of $5 for each year of creditable service completed. The payments are
at least $30 but not more than $150 per month. To be eligible to receive a HIS benefit, a retiree under a
state -administered retirement system must provide proof of health insurance coverage, which may
include Medicare.
Contributions: The HIS Program is funded by required contributions from FRS participating employers
as set by the Florida Legislature. Employer contributions are a percentage of gross compensation for all
active FRS members. For the fiscal year ended September 30, 2016, the HIS contribution rate was
1.66% for October 1, 2015 through September 30, 2016. There are no employee contributions required.
The Board contributed 100% of its statutorily required contributions for the current and preceding three
years. HIS contributions are deposited in a separate trust fund from which payments are authorized.
The Board's actuarial contributions to the HIS Program totaled $666,421 for the fiscal year ended
September 30, 2016.
Pension Liabilities, Pension Expense, and Deferred Outflow of Resources and Deferred Inflow of
Resources Related to HIS Program: At September 30, 2016, the Division of Retirement calculated the
Board's liability of $14,890,663 for its proportionate share of the HIS Program's net pension liability.
The net pension liability was measured as of June 30, 2016, and the total pension liability used to
calculate the net pension liability was determined by an actuarial valuation as of July 1, 2016. At
September 30, 2016, the Board's proportion share was 0.127767% for the HIS Program. This was an
increase of 0.006% from its proportionate share measured as of June 30, 2015.
293
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 12 - RETIREMENT PLAN - Continued
Retiree Health Insurance Subsidy (HIS) Program - Continued
For the year ended September 30, 2016, the Board's calculated total actuarially determined pension
expense of was $794,188. Of this amount, the Board recognized $89,770 in the enterprise funds and
$12,144 in the internal service funds. In addition, the Board's calculated deferred outflows of resources
and deferred inflows of resources related to pensions from the following sources were:
Deferred Outflows Deferred Inflows
Description of Resources of Resources
Differences between expected and actual $ - $ 33,915
experience
Changes in assumptions 2,336,724 -
Net difference between projected and actual
earnings on pension plan investments 7,529 -
Changes in proportion and differences between
Board contributions and proportionate share of
contributions 529,885 180,729
Board contributions subsequent to the measure-
ment date 178,840
Total $ 3,052,978 $ 214,644
The deferred outflows of resources related to HIS totaling $178,840 resulting from Board contributions
subsequent to the measurement date, will be recognized as a reduction of the net pension liability in the
year ended September 30, 2016. Other amounts reported as deferred outflows of resources and deferred
inflows of resources related to HIS Program will be recognized in pension expense as follows:
Amount
Fiscal Year Ending September 30: Recognized
2017 $ 476,049
2018 476,049
2019 473,390
2020 473,390
2021 409,562
Thereafter 351,054
Total $ 2,659,494
294
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 12 - RETIREMENT PLAN - Continued
Retiree Health Insurance Subsidy (HIS) Program - Continued
Actuarial Assumptions: The total pension liability for the HIS Program in the July 1, 2016 actuarial
valuation was determined using the following actuarial assumption, applied to all periods included in the
measurement:
Valuation date: July 1, 2016
Measurement date: June 30, 2016
Discount rate: 2.85%
Long-term expected rate of return: N/A
Municipal bond rate: 2.85%
Inflation: 2.60%
Salary increase: 3.25%, average, including inflation
Mortality Generational RP -2000 with Projections Scale BB
Actuarial cost method: Individual Entry Age
The actuarial assumptions that determined the total HIS pension liability used in the July 1, 2016
valuation were based on the results of an actuarial experience study for the period July 1, 2008 through
June 30, 2013.
Discount Rate for HIS Program: In general, the discount rate for calculating the total pension liability is
equal to the single rate equivalent to discounting at the long-term expected rate of return for benefit
payments prior to the projected depletion date. Because the HIS Program is essentially funded on a pay-
as-you-go basis, the depletion date is considered to be immediate. The single equivalent discount rate is
equal to the municipal bond rate selected by the plan sponsor. The Bond Buyer General Obligation 20 -
Bond Municipal Bond Index was adopted as the applicable municipal bond index.
Long-term Expected Rate of Return: As stated above, the HIS program is essentially funded on a pay-
as-you-go basis. As such, there is no assumption for a long-term expected rate of return on a portfolio,
no assumptions for cash flows into and out of the pension plan, or assumed asset allocation.
Sensitivity of the Board's Proportionate Share of the Net Position Liability to Changes in the Discount
Rate for the HIS Program: The following presents the Board's proportionate share of the NPL (net
pension liability) of the HIS Program calculated using the discount rate of 2.85%. Also presented is
what the Board's proportionate share of the HIS Program NPL would be if it were calculated using a
discount rate that is 1% lower or 1% higher than the current rate:
295
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 12 - RETIREMENT PLAN - Continued
Retiree Health Insurance Subsidy (HIS) Program - Continued
1% Current Discount 1%
Decrease (1.85%) Rate (2.85%) Increase (3.85%)
Board's proportionate share of NPL $ 17,082,973 $14,890,663 $ 13,071,165
HIS Plan Fiduciary Net Position: Detailed information regarding the HIS Program's fiduciary net
position is available in the separately issued FRS Pension Plan and Other State -Administered Systems
Comprehensive Annual Financial Report. This report is available by writing to the State of Florida,
Division of Retirement, Department of Management Services, P.O. Box 9000, Tallahassee, Florida
32315-9000 or by email at rep@dms.myflorida.com, or by telephone toll free at (844) 377-1888 or (850)
907-6500.
FRS Investment Plan
Plan Description: The Board contributes to the Investment Plan, a defined contribution pension plan,
for its eligible employees electing to participate in the Investment Plan. The Investment Plan is
administered by the State Board of Administration (SBA), and is reported in the SBA's annual financial
statements and in the State of Florida Comprehensive Annual Financial Report. As provided in Section
121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu
of the FRS defined benefit plan. Board employees already participating in DROP are not eligible to
participate in this program.
Benefits Provided: Service retirement benefits are based upon the value of the member's account upon
retirement. Employers and employee contributions, including amounts contributed to individual
member's accounts, are defined by law, but the ultimate benefit depends in part on the performance of
investment funds. Benefit terms, including contribution requirements, for the Investment Plan are
established and may be amended by the Florida Legislature.
296
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 12 - RETIREMENT PLAN - Continued
FRS Investment Plan - Continued
Benefits Provided, Continued: For all membership classes, employees are immediately vested in their
own contributions and are vested after one year of service for employer contributions and investment
earnings. Non -vested employer contributions are placed in a suspense account for up to five years. If
the employee returns to FRS -covered employment within the five year period, the employee will regain
control over his/her account. If the employee does not return within the five-year period, the employee
will forfeit the accumulated account balance. For fiscal year ended September 30, 2016, the information
for the amount of forfeitures was unavailable from the SBA; however, management believes that these
amounts, if any, would be immaterial to the Board.
If an accumulated benefit obligation for service credit originally earned under the Pension Plan is
transferred to the Investment Plan, the member must have the years of service required for Pension Plan
vesting (including the service credit represented by the transferred funds) to be vested for these funds
and the earnings on the funds.
After termination and applying to receive benefits, the member may rollover vested funds to another
qualified plan, structure a periodic payment under the Investment Plan, receive a lump -sum distribution,
leave the funds invested for future distribution, or any combination of these options. Disability coverage
is provided; the member may either transfer the account balance to the FRS Pension Plan when
approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS
Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement
income.
Contributions: Cost of administering the Investment Plan, including the FRS Financial Guidance
Program, are funded through an employer contribution of .04% of payroll and by forfeited benefits of
Investment Plan members. The Investment Plan is funded with the same employer and employee
contribution rates that are based on salary and membership class as the FRS defined benefit plan.
Contributions are directed to individual member accounts, and the individual members allocate
contributions and account balances to various approved investment choices.
Allocations to the investment member's accounts during the 2015-16 fiscal year were as follows:
regular class 6.30%, special risk class 14.00%, senior management service class 7.67%, and elected
officers' class 11.34%. This includes the employee contribution of 3%.
The Board's Investment Plan pension expense totaled $586,613 for fiscal year ended September 30,
2016. Employee contributions totaled $140,319 for the same period.
297
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 13 — OTHER POSTEMPLOYMENT BENEFITS PLAN (OPEB)
A. Plan Description
On September 23, 2008, the Board of County Commissioners approved resolution number 2008-163,
establishing an irrevocable trust (OPEB Trust) to separately identify assets accumulated to pay OPEB
benefits for eligible retirees. The OPEB Trust includes the Board of County Commissioners and the five
constitutional officers (Clerk of the Circuit Court and Comptroller, Property Appraiser, Sheriff,
Supervisor of Elections, and Tax Collector). The resolution also established the Board of County
Commissioners as trustees of the OPEB Trust and the authority for the trustees to amend the benefit
provisions.
The OPEB Trust is a single -employer defined benefit plan (OPEB Plan). The OPEB plan subsidizes the
cost of health care for employees hired prior to February 1, 2006 and their eligible dependents according
to the provisions of the substantive plan (the plan as understood by the employer and plan members).
Employees hired on or after February 1, 2006, will not be eligible for any subsidy, regardless of the
years of service or Medicare eligibility.
Active participants as well as retirees are subject to the same benefits and rules. Retired employees are
permitted to remain covered under the Board's medical and life insurance plans as long as they pay a
premium applicable to the coverage elected. This conforms to the minimum required of Florida
governmental employers per Florida Statute 112.0801. The retiree has the option to continue with the
Board group health plan or elect Medicare Advantage Plan.
The implicit rate subsidy applies to health and life insurance coverage since the premiums charged are
based upon a blending of younger active employees and older retired employees. Health insurance
premiums, effective October 1, 2015 range from $320 for single coverage Medicare participants to $745
for family coverage. Life insurance is available to retirees at a flat rate of $.50 per $1,000 of coverage
(to a maximum of $20,000 until the age of 70). After 70, the maximum amount of life insurance is
$1.0,000.
298
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 13 — OTHER POSTEMPLOYMENT BENEFITS PLAN (OPEB) - Continued
A. Plan Description - Continued
The Board subsidizes the cost of the health premiums for each retiree based upon their years of service
and employment date (as mentioned above); a 2% discount is given for each year of service based upon
the following table:
Hired Before 2/1/2006
Hired On or
After 2/1/2006
Retirement
Date
Service
Under Age 65
Retiree or Spouse
Medicare Eligible
Before 10/1/2004
No Subsidy
60%*
No Subsidy
**
After 10/1/2004 but on
or before
1/31/2009***
Less than 15
years
No Subsidy
20% Subsidy**
At least 15
years
2% per Year of Service
(maximum of 40%)
Additional 20% Subsidy
(maximum of 60%)**
After 1/31/2009***
Less than 15
years
No Subsidy
No Subsidy
At least 15
years
2% per Year of Service
o
(maximum of 40%)
Subsidy Ceases****
*60% Subsidy if Medicare Eligible prior to October 1, 2004 or 20% if becoming Medicare Eligible after October
1, 2004
**Additional Subsidy will be paid to Medicare Eligible retirees regardless of which plan they are enrolled in
(County's medical plan or Medicare Advantage Plan) and regardless of whether they become Medicare Eligible
before or after October 1, 2004.
***Employees who commit by June 1, 2008 to retire before January 31, 2009 will receive subsidy as if retired
before June 1, 2008.
****Effective May 1, 2016 and prospectively, subsidy does not cease until both Retiree and Spouse are Medicare
eligible.
299
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 13 — OTHER POSTEMPLOYMENT BENEFITS PLAN (OPEB) — Continued
A. Plan Description — Continued
The OPEB Trust financial statements are reported using the accrual basis of accounting and are included
in the Indian River County Comprehensive Annual Financial Report (CAFR). Questions regarding the
OPEB plan may be directed to the Finance Director.
At October 1, 2015, the date of the latest actuarial valuation, plan participation consisted of:
Active participants 1,384
Retired participants 491
Total participants 1,875
There are two classes of participants at October 1, 2015:
Regular and senior management 1,251.
Special risk 624
Total participants 1,875
The average employer's contribution was $2,237 per employee, approximately 4.9% of current payroll.
Financial statements for the OPEB Trust are included in this report and can be found on pages 252-253.
A separate, stand-alone financial report is not issued by the Board; however, the OPEB Trust
investments can be found in Note 2D and the Schedule of Funding Progress can be found on page 109.
B. Funding Policy
The Board of County Commissioners, in concert with the OPEB Board of Trustees, has the authority to
establish and amend the funding policy of the OPEB Plan. The OPEB Trust is advance funded by the
Board. For the year ended September 30, 2016, the Board contributed $12.1 million to the qualifying
OPEB Trust. This contribution included $9.0 million in additional contributions over and above the
annual required contribution. Plan members receiving benefits contributed $2.5 million, or
approximately 81 percent of the total premiums. It is the Board's policy to base future contributions on
the annual required contribution (ARC) in subsequent annual actuarial reports. The contributions are
paid by the fund(s) by which the participant is employed. Custodial and individual fund administrative
fees are paid from the portfolio dividend and interest income.
300
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 13 — OTHER POSTEMPLOYMENT BENEFITS PLAN (OPEB) — Continued
C. Annual OPEB Cost and Net OPEB Obligation (Asset)
The employer's contribution (i.e. annual cost or expense) to the Board's OPEB Trust is based on the
ARC calculation. The ARC is an amount actuarially determined in accordance with the parameters of
GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is
projected to cover the normal cost each year and amortize any unfunded actuarial liability over a period
not to exceed 20 years. The following table shows the components of the Board's annual cost for the
current and two preceding years, the amount actually contributed, and the changes in the net obligation.
Annual Required Contribution
Interest on Net OPEB Obligation (Asset)
Adjustment to Annual Required Contribution
Annual OPEB Cost
Contributions (net of adjustments)*
Change in Net OPEB Obligation
Net OPEB Obligation (Asset) — beginning of year
Net OPEB Obligation (Asset) — end of year
Percentage of Annual OPEB Cost Contributed
FY 2015/2016
$ 3,096,411 $
(54,895)
86,643
3,128,159
(11,948,249)
(8,820,090)
_ (914,909)
$ (9,734,999) $
382 %
FY 2014/2015
2,977,075 $
(47,722)
72,521
FY 2013/2014
2,835,072
(18,036)
24,230
3,001,874
(3,121,416)
2,841,266
(3,336,027)
(119,542)
(795,367)
(914,909) $
104 %
(494,761)
(300,606)
(795,367)
117%
*Retiree adjustments are comprised of the actual amount withdrawn from the Trust plus premiums
collected and less claims paid. For fiscal year 2016, these adjustments amounted to ($148,162). For
fiscal years 2015 and 2014, these adjustments totaled $144,341 and ($90,852) respectfully.
D. Funded Status and Funding Progress
As of October 1, 2015 (the most recent actuarial valuation date), the funded status of the plan was as
follows:
Actuarial accrued liability (AAL)
Less: Actuarial value of plan assets
Unfunded actuarial accrued liability (UAAL)
Funded ratio
$ 40,096,693
14,850,156
$ 25,246,537
37.04%
Covered payroll (annual payroll of active employees covered by the plan) $ 63,694,205
UAAL as a percentage of covered payroll 39.64%
301
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 13 — OTHER POSTEMPLOYMENT BENEFITS PLAN (OPEB) - Continued
D. Funded Status and Funding Progress - Continued
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events into the future. Examples include
assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined
regarding the funded status of the plan and the annual required contributions of the employer are subject
to continual revision as actual results are compared with past expectations and new estimates are made
about the future.
The Schedule of Funding Progress and Schedule of Employer Contributions, presented as required
supplementary information immediately following the Board Notes to the Financial Statements (on page
109), presents multi-year trend regarding liabilities, funding, and payroll. The data also reflects whether
the actuarial value of the plan assets is increasing or decreasing over time relative to the actuarial
accrued liabilities for benefits. This information includes the current and past three actuarial valuations
and seven years of funding data.
E. Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the benefits provided under terms of
the substantive plan (the plan as understood by the employer and the plan members) in effect at the time
of each valuation and on the pattern of sharing of costs between the employer and plan members to that
point. The projection of benefits for financial reporting purposes does not explicitly incorporate the
potential effects of legal or contractual funding limitations on the pattern of cost sharing between the
employer and plan members in the future. Actuarial calculations reflect a long-term perspective.
Consistent with that perspective, actuarial methods and assumptions used include techniques that are
designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial
value of assets.
The actuarial methods are:
Actuarial cost method
Amortization method
Amortization period (closed)
Asset valuation method
The actuarial assumptions are:
Investment rate of return
Projected annual salaries increase
Healthcare cost trend rate
Entry age normal cost method
Level percent of payroll projected to grow 3.50% per year
12 years
Market value
6.0% (net administrative expenses)
4.0%-9.47% (dependent on years of service and age)
7.0% (decreasing over 25 -year period to the
ultimate value of 4.55%)
Inflation rate 2.50%
302
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 14 - OPERATING LEASES
The Board has entered into noncancelable operating leases, both as lessor and lessee. Lease terms vary
from 1 to 99 years. Lease revenues totaled $640,755 and lease expenditures totaled $97,348 for the year
ended September 30, 2016. The Board 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
2017
2018
2019
2020
2021
2022-2026
2027-2031
2032-2036
2037-2041
2042-2045
Total future minimum receipts:
$ 599,772
595,067
611,929
629,382
582,557
2,259,802
1,011,813
411,241
277,466
211,918
7,190,947
The property being leased is reported in the financial statements of Board and has a cost of S29,307,479,
and a carrying value of $19,589,213. Current year depreciation on property being leased was $532,258.
303
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 14 - OPERATING LEASES - Continued
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, 2016:
Year Amount
2017 $ 97,727
2018 44,432
2019 44,432
2020 1,500
2021 1,500
2022-2026 7,500
2027-2031 7,500
2032-2036 7,200
2037-2041 4,800
2042-2046 4,500
2047-2051 3,300
2052-2056 2,700
2057-2061 1,500
2062-2066 1,500
2067-2071 1,500
2072-2076 1,500
Total future minimum lease payments: $ 233,091
304
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 15 - FUND BALANCE
GASB Statement 54 — Fund Balance Reporting and Governmental Funds Type Definitions requires the
fund balance for governmental funds to be reported in classifications that comprise a hierarchy based
primarily on the extent to which the government is bound to honor constraints on the specific purposes
for which amounts in those funds can be spent.
A. Categories
There are five categories of fund balance for governmental funds under Statement 54:
Nonspendable — Amounts that cannot be spent because they are not in spendable form or are legally or
contractually required to remain intact.
Restricted — Use of these resources is based on the constraints imposed externally by creditors, grantors,
contributors, or laws and regulations of other governments; or imposed by law through constitutional
provisions or enabling legislation.
Committed — Amounts whose use is constrained by the approval of a Board ordinance by the Board of
County Commissioners. This category also includes existing resources on hand to satisfy the
obligations that arise from contractual obligations entered into by the Board of County Commissioners.
Assigned — The Board of County Commissioners is the governing body authorized to assign fund
balance amounts to be used for specific purposes. This assignment is done through the budget approval
and amendment process. Amounts appropriated to eliminate a budgetary deficit in a subsequent year are
reported in this category as well.
Unassigned — Residual amounts in the general fund that do not meet any of the other fund balance
classifications.
B. Fund Balance Policy
On September 21, 2010, the Board approved a Fund Balance and Reserve Policy that set forth the
following reserves of fund balance in the General, Transportation, and Emergency Services District
Funds:
Emergency/Disaster Relief Reserve — A balance of no less than 5% of budgeted operating expenditures
for the current fiscal year will be reserved only for the purpose of responding to natural and man-made
disasters. Disasters include hurricanes, tropical storms, floods, wildfires, or terrorist activities. These
funds can only be used to respond and provide relief after such a disaster. Funds will be replenished
over a five-year period after the completion of the recovery from the disaster.
305
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 15 - FUND BALANCE — Continued
B. Fund Balance Policy - Continued
Budget Stabilization Reserve — A balance of no less than 5% of budgeted operating expenditures for the
current fiscal year will be reserved only for the purpose of revenue declines or unfunded mandates from
the state and federal governments. Funds utilized due to revenue declines will be replenished over a
five-year period. Funds utilized for unfunded mandates or unanticipated expenditures cannot be used
for more than a three-year period and must be replenished within five -years after the three-year period.
At September 30, 2016, reserve amounts for those funds were:
Disaster Relief
Budget
Stabilization
Total
General Fund $ 5,800,000 $ 5,800,000 $ 11,600,000
Transportation Fund 800,000 800,000 1,600,000
Emergency Services District Fund 1,950,000 1,950,000 3,900,000
Total $ 8,550,000 $ 8,550,000 $ 17,100,000
The General Fund reserves are included in the unassigned fund balance on the balance sheet. The
Transportation Fund reserves are included in the assigned fund balance and the Emergency Services
District Fund reserves are included in the restricted fund balance on the balance sheet. The
Emergency/Disaster Relief and Budget Stabilization Reserve amounts may only be revised by the Board
of County Commissioners.
Minimum Fund Balance - The approved fund balance policy dictates the Board's attempt to maintain a
minimum fund balance in the General, Transportation, and Emergency Services District funds of 20% of
budgeted annual operating expenditures. The minimum fund balance level may be revised by the County
Administrator or his designee.
C. Spending Hierarchy
For all governmental funds, when restricted, committed, assigned, and unassigned fund balances are
combined in a fund, qualified expenditures are paid first from restricted or committed fund balance, as
appropriate, then assigned and finally unassigned fund balances.
306
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 16 - RISK MANAGEMENT
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:
Worker's Compensation
General Liability
Auto Liability
Property Damage
Error or Omissions
Annual Aggregate
Liquor Liability
05/01/11 to
9/30/2013
$ 350,000
200,000
200,000
200,000
200,000
2,000,000
1,000,000
10/01/13 to
9/30/2014
$ 500,000
200,000
200,000
200,000
200,000
2,000,000
1,000,000
10/01/14 to
9/30/2015
10/01/15 to
9/30/2016
$ 750,000
200,000
200,000
200,000
200,000
2,000,000
1,000,000
$ 650,000
200,000
200,000
200,000
200,000
2,000,000
N/A
The Board purchases excess insurance to cover claims in excess of the liability coverage listed above.
There is a 5% deductible per location for property damages arising due to a hurricane under the
reinsurance policy. 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 has received two workers compensation reimbursements
totaling $49,222 in fiscal year 2016. The Board received three workers compensation reimbursements
totaling $409,914 in fiscal year 2015.and three in fiscal year 2014 totaling $125,213.
The Board 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 Board. Premiums and contributions are determined by projected claims based on historical
and actuarial experience. The self-insurance medical plan assumes all risk for claims, other than
worker's compensation, up to $250,000 per occurrence. The Board has purchased a reinsurance policy
to cover claims in excess of these limits. There were no medical claim reimbursements in excess of the
$250,000 limit for fiscal year 2016. In fiscal year 2015.there were four totaling $382,635 and in fiscal
year 2014 there were six totaling $335,641.
307
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 16 - RISK MANAGEMENT - Continued
General Liability, Property, Worker's Compensation and Medical — Continued
The claims liability of $8,512,520 reported at September 30, 2016, 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, $3,624,891 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
2012-2013 $ 8,074,000 $ 14,396,726 $ (14,396,726) $ 8,074,000
2013-2014 8,074,000 16,860,869 (16,708,324) 8,226,545
2014-2015 8,226,545 17,188,927 (17,237,952) 8,177,520
2015-2016 8,177,520 17,953,550 (17,618,550) 8,512,520
Included in the charges to other funds is an amount to fund future catastrophic losses not actuarially
determined; and at September 30, 2016, unrestricted net position of $27,197,018 has been designated for
this purpose. The Board has elected to accrue the larger of the discounted liability or undiscounted
liability. At September 30, 2016, the undiscounted liability was the greater of the two amounts. The
discount rate used in the calculation was 2.0 percent.
NOTE 17 - 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.
308
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 17 - COMMITMENTS AND CONTINGENCIES - Continued
B. Contracts and Other Commitments
The Board has various contracts and commitments outstanding at September 30, 2016..In the General
Fund, contracts are for janitorial services, beach park landscape and custodial maintenance, legislative
consulting services and external auditing services. In the Special Revenue Funds, contracts are for Old
Dixie Highway resurfacing project, the 45th Street Beautification project, GO Line Bus hub, Fire
Station# 14 construction, as well as a variety of other road paving and drainage projects. In the Capital
Projects Fund, contracts are for the South County Regional Park Intergenerational Recreation Facility,
Vero Lake Estates sidewalks, P25 radio system migration project, intersection improvements at 1st
Street SW and 43rd Ave., and several sidewalk and road improvement projects throughout the County.
In the Enterprise Funds, contracts are for the golf course maintenance, North RIO membrane
replacement, aquifer wells rehabilitation project, and various other water and sewer projects.
A summary of these projects at September 30, 2016, is as follows:
General
Special Revenue
Capital Projects
Enterprise
Total
Contract Price
$ 857,767 $
16,469,534
19,235,296
6,654,687
Total Paid as of
September 30, 2016
(488,074) $
(11,225,151)
(14,360,036)
(2,054,855)
Remaining
Balance at
September 30, 2016
369,693
5,244,383
4,875,260
4,599,832
Total $ 43,217,284
C. Grants
(28,128,116) $
15,089,168
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 18 - SUBSEQUENT EVENTS
The County was impacted by Hurricane Matthew in October 2016. The County has estimated $15
million in expenses related to the hurricane and has applied for reimbursement from FEMA for these
costs. The majority of the costs ($13 million) are related to beach renourishment.
309
Fkehmann
Rehmann Robson
5070 North Highway A1A
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
INDEPENDENT AUDITORS' 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
March 7, 2017
The Honorable Board of County Commissioners
Indian River County, Florida
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial statements contained in Government Auditing
Standards issued by the Comptroller General of the United States, the fund financial statements of the
major fund and the aggregate remaining fund information of the Indian River County, Florida Board
of County Commissioners (the "Board"), as of and for the year ended September 30, 2016, which
collectively comprise the Board's fund financial statements and have issued our report thereon dated
March 7, 2017.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Board's internal
control over financial reporting (internal control) to determine the audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the Board's
internal control. Accordingly, we do not express an opinion on the effectiveness of the Board's internal
control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control such that there is a reasonable possibility that a
material misstatement of the entity's financial statements wilt not be prevented, or detected and
corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in
internal control that is less severe than a material weakness, yet important enough to merit attention
by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of
this section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses may exist that have not been identified.
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INTERNATIONAL.
The Honorable Board of County Commissioners
Indian River County, Florida
March 7, 2017
Page 2
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Board's financial statements are free
from 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 or other matters that
are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
Board's internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the entity's internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
311
Fkehmann
MANAGEMENT LETTER
March 7, 2017
The Honorable Board of County Commissioners
Indian River County, Florida
Report on the Financial Statements
Rehmann Robson
5070 North Highway A1A
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
We have audited the financial statements of each major fund and the aggregate remaining fund
information of the Indian River County, Florida Board of County Commissioners (the "Board"), as of
and for the year ended September 30, 2016 and have issued our report thereon dated March 7, 2017.
Auditors' Responsibility
We conducted our audit 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; the audit requirements of Title 2 U.S. Code of
Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements of Federal Awards (Uniform Guidance); and Chapter 10.550, Rules of the Auditor
General.
Other Reports and Schedule
We have issued our Independent Auditors' Report on Internal Control over Financial Reporting and on
Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance
with Government Auditing Standards; Independent Auditor's Report on Compliance for Each Major
Federal Program and State Project and Report on Internal Control over Compliance; Schedule of
Findings and Questioned Costs; and Independent Accountants' Report on an examination conducted in
accordance with AiCPA Professional Standards, Section 601, regarding compliance requirements in
accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are
dated March 7, 2017, should be considered in conjunction with this management letter.
Prior Audit Findings
Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not
corrective actions have been taken to address findings and recommendations made in the preceding
annual financial audit report. There were no findings or recommendations in the preceding annual
financial audit report.
Official Title and Legal Authority
Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal
authority for the primary government and each component unit of the reporting entity be disclosed in
this management letter, unless disclosed in the notes to the financial statements. This information is
disclosed in the notes to the financial statements.
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Other Matters
Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management
letter any recommendations to improve financial management. In connection with our audit, we did
not have any such recommendations.
Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with
provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have
occurred, that have an effect on the financial statements that is less than material but which warrants
the attention of those charged with governance. In connection with our audit, we did not have any
such findings.
Purpose of this Letter
Our management letter is intended solely for the information and use of the Legislative Auditing
Committee, members of the Florida Senate and the Florida House of Representatives, the Florida
Auditor General, Federal and other granting agencies, and applicable management and is not intended
to be and should not be used by anyone other than these specified parties.
313
Fkehmann
INDEPENDENT ACCOUNTANTS' REPORT
March 7, 2017
The Honorable Board of County Commissioners
Indian River County, Florida
Rehmann Robson
5070 North Highway A1A
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
We have examined the compliance of Indian River County, Florida Board of County Commissioners
(the "Board") with Sections 218.415, 365.172(10), and 365.173(2)(d) Florida Statutes, during the year
ended September 30, 2016. Management is responsible for compliance with those requirements. Our
responsibility is to express an opinion on the Board's compliance based on our examination.
Our examination was conducted in accordance with attestation standards established by the American
Institute of Certified Public Accountants and, accordingly, includes examining, on a test basis,
evidence about the Board's compliance with those requirements and performing such other procedures
as we considered necessary in the circumstances. We believe that our examination provides a
reasonable basis for our opinion. Our examination does not provide a legal determination on the
Board's compliance with specified requirements.
In our opinion, the Board complied, in all material respects, with the aforementioned requirements for
the year ended September 30, 2016.
This report is intended solely for the information and use of management, the Board of County
Commissioners and the Florida Auditor General and is not intended to be and should not be used by
anyone other than these specified parties.
Rehmann is an independent member of Nexia International.
CPAs & Consultants Wealth. Advisors Corporate Investigators
314
NEXIA
INTERNATIONAL.
CLERK OF THE CIRCUIT COURT AND
COMPTROLLER
315
Fkehmann
INDEPENDENT AUDITORS' REPORT
March 7, 2017
The Honorable Jeffrey R. Smith
Clerk of the Circuit Court and Comptroller
Indian River County, Florida
Report on the Financial Statements
Rehmann Robson
5070 North Highway A1A
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
We have audited the accompanying fund financial statements of each major fund and the aggregate
remaining fund information of the Indian River County, Florida aerk of Court (the "Clerk"), as of
and for the year ended September 30, 2016, and the related notes to the financial statements, which
collectively comprise the Clerk's fund financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud
or error.
Independent Auditors' Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. 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. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free from
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditors' judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity's
preparation and fair presentation of the financial statements in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation
of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
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INTERNATIONAL.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of the funds of the Clerk as of September 30, 2016, and the respective changes in
financial position and the respective budgetary comparison for the general fund for the year then
ended in accordance with accounting principles generally accepted in the United States of America.
Reporting Entity
As discussed in Note 1, the financial statements referred to above present only the Indian River County,
Florida Clerk of Court and do not purport to, and do not, present fairly the financial position of Indian
River County, Florida as of September 30, 2016, and the changes in its financial position for the year
then ended, in conformity with accounting principles generally accepted in the United States of
America.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March 7,
2017, on our consideration of the Clerk's internal control over financial reporting and on our tests of its
compliance with certain provisions of taws, regulations, contracts, and grant agreements and other
matters. The purpose of that 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
internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the Clerk's interna(
control over financial reporting and compliance.
317
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Balance Sheet
Governmental Funds
September 30, 2016
Total
Nonmajor Fund Governmental
General Special Revenue Funds
ASSETS
Cash $ 305,568 $ 2,059,668 $ 2,365,236
Accounts receivable 77,530 - 77,530
Prepaid items 16,688 42,192 58,880
Due from other governments 89,245 1,170 90,415
Due from other funds - 32,338 32,338
Total assets $ 489,031 $ 2,135,368 $ 2,624,399
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ 7,684 $ 207 $ 7,891
Due to other funds 32,338 - 32,338
Due to other governments 32,747 98 32,845
Other deposits held in escrow 101,667 - 101,667
Unearned revenues 314,595 - 314,595
Total liabilities 489,031 305 489,336
Fund Balances:
Nonspendable:
Prepaid items 16,688 42,192 58,880
Restricted for:
Court -related costs and improvements - 2,092,871 2,092,871
Unassigned (16,688) - (16,688)
Total fund balances - 2,135,063 2,135,063
Total liabilities fund balances $ 489,031 $ 2,135,368 $ 2,624,399
The accompanying notes are an integral part of the financial statements.
318
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended September 30, 2016
REVENUES
Intergovernmental
Charges for services
Judgments, fines and forfeits
Interest
Total revenues
Total
Nonmajor Fund Governmental
General Special Revenue Funds
195,656
3,178,105
906,325
7,684
4,287,770
EXPENDITURES
General government 1,858,900
Court related 3,307,756
Total expenditures 5,166,656
Excess of revenues over
(under) expenditures (878,886)
OTHER FINANCING SOURCES (USES)
Transfers from Board of County Commissioners 911,121
Transfer to Board of County Commissioners (32,235)
Total other financing sources (uses) 878,886 9,700
Net change in fund balances - (47,088)
Fund balances at beginning of year - 2,182,151
Fund balances at end of year $ - $ 2,135,063
$ 195,656
403,411 3,581,516
159,500 1,065,825
3,173 10,857
566,084 4,853,854
463,753 2,322,653
159,119 3,466,875
622,872 5,789,528
(56,788) (935,674)
9,700 920,821
(32,235)
888,586
(47,088)
The accompanying notes are an integral part of the financial statements.
319
2,182,151
2,135,063
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Statement of Revenues, Expenditures, and
Changes in Fund Balances - Budget and Actual
General Fund
For the Year Ended September 30, 2016
REVENUES
Intergovernmental.
Charges for services
Judgments, fines and forfeits
Interest
Miscellaneous
Total revenues
EXPENDITURES
General government
Court related
Total expenditures
Excess of revenues over
(under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers from Board
of County Commissioners
Transfers out
Transfers to Board
of County Commissioners
Total other financing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Budgeted Amount
Original Final
141,839 $
4,011,600
3,900
4,157,339
1,566,740
3,458,940
5,025,680
(868,341)
900,001
(31,660)
868,341
141,839 $
4,113,144
3,900
15,000
4,273,883
1,882,808
3,302,196
5,185,004
(911,121)
911,121
911,121
Variance with
Final Budget
Positive
Actual (Negative)
195,656 $
3,178,105
906,325
7,684
4,287,770
53,817
(935,039)
906,325
3,784
(15,000)
13,887
1,858,900 23,908
3,307,756 (5,560)
5,166,656 18,348
(878,886)
911,121
(32,235)
878,886
The accompanying notes are an integral part of the financial statements.
320
32,235
(32,235)
(32,235)
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Statement of Fiduciary Net Position
Agency Fund
September 30, 2016
ASSETS
Cash
Total assets $
3,595,959
3,595,959
LIABILITIES
Due to other governments $ 939,235
Escrow deposits 2,656,724
Total liabilities $ 3,595,959
The accompanying notes are an integral part of the financial statements,
321
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Clerk of the Circuit Court and Comptroller (Clerk) 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 does not meet the definition of a legally separate
organization and is not considered to be a component unit. The Clerk is considered to be a part of the
primary government of Indian River County.
Court -related expenditures are funded through filing fees, service charges, court costs and fines assessed
to parties using the court system. Under 2013-44, Laws of Florida, revenue collected by the Clerk is
retained by the County and remitted to the Florida Department of Revenue based upon various formulas
determined by Florida Clerks of Court Operations Corporation. Non -court expenditures are funded by
the Board of County Commissioners for both the finance and recording (board meeting recordings)
departments. Additional non -court revenues include various fees assessed for the recording of
documents, passports, marriage licenses and court reporter services. Both court and non -court operations
are reported in these financial statements.
The financial statements contained herein represent the financial transactions of the Clerk of the Circuit
Court and Comptroller only. The format of the Clerk'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
For reporting purposes, the accounting records are organized into the following two fund types:
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 (both court and non -court) operations of the Clerk which are not
accounted for in another fund. All financial resources, which are not accounted for and reported in
another fund, 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 proceeds from recording fees to be
used for modernizing the Clerk's public records systems, subsidizing court -related operational needs and
program enhancements, and adding access to public records (by charging a computer usage fee).
Fiduciary Fund
Agency Fund — The Agency Fund is used to account for assets held by the Clerk in a trustee capacity or
as an agent. These funds cannot be used to support the Clerk's own programs.
322
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
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.
C. Budgetary Requirements
State statutes require the Clerk to prepare his budget in two parts: the budget relating to the State court
system 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 is prepared by the Clerk and submitted to the Florida Clerks of
Court Operations Corporation (CCOC) by June 1 of each year (for consolidation to the Florida
Legislative Budget Commission by August 1). The budget relating to the requirements of the Clerk as
Clerk to the Board of County Commissioners is prepared prior to May 1 and is reviewed, modified if
required, and approved by the Board by October 1. 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.
D. Cash
Cash reported on the financial statements includes bank deposits, cash on hand, certificates of deposit,
money market accounts, and all highly liquid investments with maturities of ninety days or less when
purchased.
E. Prepaid Items
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 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.
323
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
G. Compensated Absences
The Clerk accrues a liability for employees' rights to receive compensation for future absences when
certain conditions are met. The Clerk 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 in the Clerk's financial statements. Additional information on the liability is
reflected in subsequent Note 6.
H. Transfer In
The non -court operations (finance function and board meeting recordings) were funded by the Board of
County Commissioners in the amount of $911,121. In addition, the Board contributed $9,700 to a
special revenue fund for the purchase of software.
. 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. A total of $32,235 of excess
fees was returned to the Board. This transfer is included in the amount reported as Due to Other
Governments on the balance sheet.
. Fund Balance
GASB Statement 54 — Fund Balance Reporting and Governmental Funds Type Definitions was
implemented as of October 1, 2009. The Statement requires the fund balance for governmental funds to
be reported in classifications that comprise a hierarchy based primarily on the extent to which the
government is bound to honor constraints on the specific purposes for which amounts in those funds can
be spent. Categories for fund balance are as follows: nonspendable, restricted, committed, assigned, and
unassigned. For more information, see the County -wide note on fund balance.
324
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 2 - CASH
A. Deposits
At September 30, 2016, the carrying value of the Clerk's deposits was $5,961,195 and the bank balance
was $6,422,748. 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 follows the above state law (governing custodial credit risk) for cash deposits. Refer
to the County -wide note on cash and investments for the definition of custodial credit risk.
B. Deposit and Investment Policies
The Clerk adopted a cash and investment policy on April 25, 2013 with the intent to match investment
maturities with known cash needs and anticipated cash flow requirements. The policy was updated on
April 24, 2014 to increase individual money market allocations from 35% to 40%.
Interest Rate Risk
The Clerk's cash and investment policy includes the following limits:
• All final maturities are three years or less,
• At least 50% of the portfolio shall be invested in readily available funds.
Concentration Risk
The following limits on portfolio compensation are outlined in the Clerk's investment policy:
• No more than 10% or $1 Million of the total portfolio may be placed in certificates of
deposit with a Qualified Public Depository with any one financial institution,
• No more than 40% of the portfolio may be placed in any money market fund or
intergovernmental investment pool.
Custodial Credit Risk
The Clerk's cash and investment policy pursuant to 218.415, Florida Statutes, requires securities to be
held in the name of the Clerk and separately identified from the assets of the financial institution. All
cash and money market accounts are listed under the name of the Indian River County Clerk of Circuit
Court.
325
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 2 - CASH AND CASH EQUIVALENTS
B. Investments - Continued
Credit Risk
Authorized investments are subject to the restrictions imposed by Section 218.145 of the Florida Statues
and are limited to the following securities:
• Florida Local Government Investment Trust Funds (FLGIT),
• State of Florida Local Government Surplus Funds Trust Funds, for existing fund only,
• Interest-bearing time deposits or savings accounts in qualified public depositories (as
defined in Section 280.02, FS),
• Money market funds registered with the Securities and Exchange Commission (with the
highest quality rating from a nationally recognized rating agency),
• Derivatives are prohibited.
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 Management Services (DMS). Benefit provisions are established and may be amended by state
statute. A financial report is available from the DMS website at www.dms.myflorida.com or by mail at
Florida Division of Retirement, PO Box 9000, Tallahassee, FL 32315-9000.
Effective July 1, 2011, the FRS became a contributory plan for all members, except DROP participants,
whereby members contribute 3% and employers pay a rate based upon each member's employment
class. Classes and rates in effect at July 1, 2016 were: regular class 7.52%, senior class 21.77%, DROP
class 12.99%, and elected official class 42.47%. Included in these rates is a health insurance subsidy of
1.66%.
Employees elect participation in either the defined benefit plan (Pension Plan) or the defined
contribution plan (Investment Plan). If the employee enrolled in the FRS Pension Plan prior to July 1,
2011, normal retirement is age 62 with 6 years of service or 30 years of service, regardless of age. If the
employee enrolled in the FRS Pension Plan on or after July 1, 2011, normal retirement is age 65 with 8
years of service or 33 years of service, regardless of age.
326
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 3 — PENSION PLAN - Continued
Florida Retirement System - Continued
Under the Pension Plan, early retirement is available before reaching normal retirement age and will be
subject to an early-retirement reduction of 5% for each year your age at retirement is under your normal
retirement age. For those employees who elect participation in the Investment Plan rather than the
Pension Plan, vesting occurs after one year of service. Participants have access to the full value of their
vested account balance when they leave FRS employment, regardless of 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.
Benefits Provided: Retirement benefits are determined by age, years of service, the average of the
highest 5 or 8 fiscal years of pay, membership class and the payment option selected at retirement. For
further information concerning the Florida Retirement System and contribution rates, please read the
County -wide note on pension plans.
Contributions: Employer contributions to the FRS are based on a percentage of covered payroll that has
been actuarially determined as an amount, when combined with employee contributions, is expected to
finance the cost of benefits earned by employees during the year with an additional amount to finance
any unfunded accrued liability.
For the year ended September 30, 2016, the Clerk's actuarial contribution to FRS under the Pension Plan
was $278,042 and the HIS Program was $56,804. Employee contributions for both plans were $95,980.
Both employer and employee contributions were equal to 100% of the required contribution for each
year.
Pension Liabilities: At September 30, 2016, the Division of Retirement calculated the Clerk's liability
of $2,776,923 for the FRS plan and $1,292,675 for the Health Insurance Subsidy (HIS) Program, for a
total of $4,069,598 for its proportionate share of the net pension liability. The net pension liability was
measured as of June 30, 2016 and the total pension liability used to calculate the net pension liability
was determined by an actuarial valuation as of July 1, 2016. The Clerk's proportion of the net pension
liability was based on a projection of the Clerk's long-term share of contributions to the pension plan
relative to the projected contributions of all participating employers, actuarially determined. At
September 30, 2016, the Clerk's proportion was .010998% for the FRS pension plan and .011092% for
the HIS Program.
Discount Rate for Pension Plan: The discount rate used to measure the total pension liability was
7.60%. The projection of cash flows used to determine the discount rate assumed that plan member
contributions will be made at the current contribution rate and that the Clerk's contributions will be
made statutorily required rates, actuarially determined. Based on those assumptions, the pension plans'
fiduciary net position was projected to be available to make all projected future benefit payments of
current active and inactive employees. Therefore, the long-term expected rate of return on pension plan
investments was applied to all periods of projected benefit payments to determine the total pension
liability.
327
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 3 — PENSION PLAN - Continued
Florida Retirement System - Continued
Sensitivity of the Clerk's Proportionate Share of the Net Position Liability to Changes in the Discount
Rate for the Pension Plan: The following presents the Clerk's proportionate share of the NPL (net
pension liability) of the pension plan calculated using the discount rate of 7.60%. Also presented is
what the Clerk's proportionate share of the FRS plan NPL would be if it were calculated using a
discount rate that is 1% lower or 1% higher than the current rate:
1% Decrease (6.60%)
Current Discount
Rate (7.60%)
1% Increase (8.60%)
Clerk's proportionate
share of NPL $ 5,112,504 $ 2,776,923 $ 832,861
Discount rate for the HIS Program: In general, the discount rate for calculating the pension liability is
equal to the single rate equivalent to discounting at the long-term expected rate of return for benefit
payments prior to the projected depletion date. Because the HIS Program is essentially funded on a pay-
as-you-go basis, the depletion date is considered to be immediate. The single equivalent discount rate is
equal to the municipal bond rate selected by the plan sponsor. The Bond Buyer General Obligation 20 -
Bond Municipal Bond Index was adopted as the applicable municipal bond index.
Sensitivity of the Clerk's Proportionate Share of the Net Position Liability to Changes in the Discount
Rate for the HIS Program: The following presents the Clerk's proportionate share of the NPL (net
pension liability) of the HIS Program calculated using the discount rate of 2.85%. Also presented is
what the Clerk's proportionate share of the HIS Program NPL would be if it were calculated using a
discount rate that is 1% lower or 1% higher than the current rate:
1% Decrease X1.85%)
Clerk's proportionate
share of NPL $ 1,482,992
Current Discount
Rate (2.85%)
$ 1,292,675
1% Increase (3.85%)
$ 1,134,722
Refer to the County -wide note for actuarial assumptions (including the investment rate of return),
pension liability on financial statements, and an explanation of pension expense components. The
pension liability is not reported in the financial statements of the Clerk since they are not payable from
available spendable resources. It is reported in the financial statements of the County by the fund which
normally pays the personnel service costs of the employee.
328
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 4 — OTHER POSTEMPLOYMENT BENEFITS
The Clerk participated in the Indian River County Other Postemployment Benefits Trust (IRCOT). The
Clerk's 2016 annual contribution of $127,291 was funded by: the Board of County Commissioners in
the amount of $20,301; non -court operations in the amount of $13,975; court operations in the amount
of $80,703; and special revenue funds in the amount of $12,312. This contribution was considered part
of a total contribution determined by the IRCOT actuary. Further information on the IRCOT can be
found in the County -wide financial statements and in the County notes.
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 Clerk participated in the
County's self-insurance program during the fiscal year at an annual cost of approximately $632,400.
Further details of this self-insurance program are discussed in the County -wide financial statements and
County -wide note on risk management.
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, 2016:
Beginning Ending
Balance Balance
10/01/15 Additions Deletions 9/30/16
Accrued Compensated Absences $ 260,901 $ 272,922 $ 261,224 272,599
Of the $272,599 liability for accrued compensated absences, management estimates that $75,000 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 by the fund which normally pays the personnel service costs of the
employee.
329
Fkehmann
Rehmann Robson
5070 North Highway A1A
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
INDEPENDENT AUDITORS' 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
March 7, 2017
The Honorable Jeffrey R. Smith
Clerk of the Circuit Court and Comptroller
Indian River County, Florida
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial statements contained in Government Auditing
Standards issued by the Comptroller General of the United States, the fund financial statements of the
major fund and the aggregate remaining fund information of the Indian River County, Florida Clerk
of Court (the "Clerk"), as of and for the year ended September 30, 2016, which collectively comprise
the Clerk's fund financial statements and have issued our report thereon dated March 7, 2017.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Clerk's internal
control over financial reporting (internal control) to determine the audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the Clerk's
internal control. Accordingly, we do not express an opinion on the effectiveness of the Clerk's internal
control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control such that there is a reasonable possibility that a
material misstatement of the entity's financial statements will not be prevented, or detected and
corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in
internal control that is less severe than a material weakness, yet important enough to merit attention
by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of
this section and was not designed to identify alt deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses may exist that have not been identified.
Rehmann is an independent member of Nexia International.
CPAs & Consultants Wealth Advisors Corporate Ihvestigators
330
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FR NATIONAL.
The Honorable Jeffrey R. Smith
Clerk of the Circuit Court and Comptroller
March 7, 2017
Page 2
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Clerk's financial statements are free from
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 or other
matters that are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
Clerk's internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the entity's internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
331
Fkehmann
MANAGEMENT LETTER
March 7, 2017
The Honorable Jeffrey R. Smith
Clerk of the Circuit Court and Comptroller
Indian River County, Florida
Report on the Financial Statements
Rehmann Robson
5070 North Highway A1A
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
We have audited the fund financial statements of the major fund and the aggregate remaining fund
information of the Indian River County, Florida Clerk of Court (the "Clerk"), as of and for the year
ended September 30, 2016, which collectively comprise the Clerk's fund financial statements and have
issued our report thereon dated March 7, 2017.
Auditors' Responsibility
We conducted our audit 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; and Chapter 10.550, Rules of the Florida
Auditor General.
Other Reports and Schedule
We have issued our Independent Auditors' Report on Internal Control over Financial Reporting and on
Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance
with Government Auditing Standards; and Independent Accountants' Report on an examination
conducted in accordance with AICPA Professional Standards, Section 601, regarding compliance
requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those
reports, which are dated March 7, 2017, should be considered in conjunction with this management
letter.
Prior Audit Findings
Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not
corrective actions have been taken to address findings and recommendations made in the preceding
annual financial audit report. There were no findings or recommendations in the preceding annual
financial audit report.
Official Title and Legal Authority
Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal
authority for the primary government and each component unit of the reporting entity be disclosed in
this management letter, unless disclosed in the notes to the financial statements. This information is
disclosed in the notes to the financial statements.
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Other Matters
Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management
tetter any recommendations to improve financial management. In connection with our audit, we did
not have any such recommendations.
Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with
provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have
occurred, that have an effect on the financial statements that is less than material but which warrants
the attention of those charged with governance. In connection with our audit, we did not have any
such findings.
Purpose of this Letter
Our management letter is intended solely for the information and use of the Legislative Auditing
Committee, members of the Florida Senate and the Florida House of Representatives, the Florida
Auditor General, Federal and other granting agencies, the Clerk of Court and applicable management
and is not intended to be and should not be used by anyone other than these specified parties.
333
Fkehmann
INDEPENDENT ACCOUNTANTS' REPORT
March 7, 2017
The Honorable Jeffrey R. Smith
Clerk of the Circuit Court and Comptroller
Indian River County, Florida
Rehmann Robson
5070 North Highway A1A
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
We have examined the compliance of Indian River County, Florida perk of Court and Comptroller
(the "Clerk") with Sections 218.415, 28.35, 28.36, and 61.181 Florida Statutes, during the year ended
September 30, 2016. Management is responsible for compliance with those requirements. Our
responsibility is to express an opinion on the Clerk's compliance based on our examination.
Our examination was conducted in accordance with attestation standards established by the American
Institute of Certified Public Accountants and, accordingly, includes examining, on a test basis,
evidence about the Clerk's compliance with those requirements and performing such other procedures
as we considered necessary in the circumstances. We believe that our examination provides a
reasonable basis for our opinion. Our examination does not provide a legal determination on the
Clerk's compliance with specified requirements.
In our opinion, the Clerk complied, in all material respects, with the aforementioned requirements for
the year ended September 30, 2016.
This report is intended solely for the information and use of management, the Clerk, the Board of
County Commissioners and the Florida Auditor General and is not intended to be and should not be
used by anyone other than these specified parties.
Rehmann is an independent member of Nexia International.
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334
NEXIA
INTERNATIONAL.
335
Fkehmann
INDEPENDENT AUDITORS' REPORT
March 7, 2017
The Honorable David Nolte
Property Appraiser
Indian River County, Florida
Report on the Financial Statements
Rehmann Robson
5070 North Highway A1A
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
We have audited the accompanying fund financial statements of the major fund information of the
Indian River County, Florida Property Appraiser (the "Property Appraiser"), as of and for the year
ended September 30, 2016, and the related notes to the financial statements, which collectively
comprise the Property Appraiser's fund financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud
or error.
Independent Auditors' Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. 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. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free from
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditors' judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity's
preparation and fair presentation of the financial statements in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation
of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
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CPAs & Consultants Wealth Advisors Corporate Investigators
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INTERNATIONAL
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of the fund of the Property Appraiser as of September 30, 2016, and the respective
changes in financial position and the respective budgetary comparison for the general fund for the year
then ended in accordance with accounting principles generally accepted in the United States of
America.
Reporting Entity
As discussed in Note 1, the financial statements referred to above present only the Indian River County,
Florida Property Appraiser and do not purport to, and do not, present fairly the financial position of
Indian River County, Florida as of September 30, 2016, and the changes in its financial position for the
year then ended, in conformity with accounting principles generally accepted in the United States of
America.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March 7,
2017 on our consideration of the Property Appraiser's internal control over financial reporting and on
our tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements and other matters. The purpose of that 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 internal control over financial reporting or on compliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards in considering
the Property Appraiser's internal control over financial reporting and compliance.
337
Indian River County, Florida
Property Appraiser
Balance Sheet
General Fund
September 30, 2016.
ASSETS
Cash $ 282,715
Accounts receivable 3,385
Prepaid items 182
Total assets $ 286,282
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Due to other governments
Other deposits
Total liabilities
Fund Balances:
Nonspendable:
Prepaid items
Unassigned
Total fund balances
Total liabilities and fund balances
$ 80,823
198,735
6,724
286,282
182
(182)
286,282
The accompanying notes are an integral part of the financial statements.
338
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, 2016
REVENUES
Charges for services
Interest
Miscellaneous
Total revenues
EXPENDITURES
General government
Total expenditures
Excess of revenues over
(under) expenditures
OTHER FINANCING USES
Transfers to Board of
County Commissioners
Total other financing uses
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Budgeted Amount
Original Final
3,477,094 $
3,477,094
3,477,094
3,477,094
3,477,508 $
3,477,508
3,477,508
3,477,508
Actual
3,477,979 $
929
7,029
3,485,937
3,306,289
3,306,289
179,648
(179,648)
(179,648)
The accompanying notes are an integral part of the financial statements.
339
Variance
with Final
Budget
Positive
(Negative)
471
929
7,029
8,429
171,219
171,219
179,648
(179,648)
(179,648)
Indian River County, Florida
Property Appraiser
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Property Appraiser 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 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
For reporting purposes, the accounting records are organized on the basis of governmental funds.
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 financial resources,
which are not accounted for and reported in another fund, 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
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.
340
Indian River County, Florida
Property Appraiser
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 1- 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.
Additional information on the liability is reflected in subsequent Note 6.
F. 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" totaled $198,735 at
September 30, 2016 and are included as due to other governments on the balance sheet. Of this amount,
$179,648 was owed to the Board of County Commissioners and is reported as Transfers to Board of
County Commissioners on the Statement of Revenues, Expenditures and Changes in Fund Balances.
G. Fund Balance
GASB Statement 54 — Fund Balance Reporting and Governmental Funds Type Definitions was
implemented as of October 1, 2009. This Statement requires the fund balance for governmental funds to
be reported in classifications that comprise a hierarchy based primarily on the extent to which the
government is bound to honor constraints on the specific purposes for which amounts in those funds can
be spent. Categories for fund balance are as follows: nonspendable, restricted, committed, assigned, and
unassigned. For more information, see the County -wide note on fund balance.
NOTE 2 - CASH
Deposits
At September 30, 2016, the carrying amount of the Property Appraiser's deposits was $282,715 and the
bank balance was $316,315. 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 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 on cash and investments for the definition of
custodial credit risk.
341
Indian River County, Florida
Property Appraiser
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 3 — PENSION PLAN
Florida Retirement System
Plan Description: The Property Appraisers's employees participate in the Florida Retirement System
(FRS), a cost-sharing, multiple -employer public employee retirement system, administered by the
Florida Department of Management Services (DMS). Benefit provisions are established and may be
amended by state statute. A financial report is available from the DMS website at
www.dms.myflorida.com or by mail at Florida Division of Retirement, PO Box 9000, Tallahassee, FL
32315-9000.
Effective July 1, 2011, the FRS became a contributory plan for all members, except DROP participants,
whereby members contribute 3% and employers pay a rate based upon each member's employment
class. Classes and rates in effect at July 1, 2016 were: regular class 7.52%, senior class 21.77%, DROP
class 12.99%, and elected official class 42.47%. Included in these rates is a health insurance subsidy of
1.66%.
Employees elect participation in either the defined benefit plan (Pension. Plan) or the defined
contribution plan (Investment Plan). If the employee enrolled in the FRS prior to July 1, 2011, normal
retirement is age 62 with 6 years of service or 30 years of service, regardless of age. If the employee
enrolled in the FRS on or after July 1, 2011, normal retirement is age 65 with 8 years of service or 33
years of service, regardless of age.
Under the Pension Plan, early retirement is available before reaching normal retirement age and will be
subject to an early-retirement reduction of 5% for each year your age at retirement is under your normal
retirement age. For those employees who elect participation in the Investment Plan rather than the
Pension Plan, vesting occurs after one year of service. Participants have access to the full value of their
vested account balance when they leave FRS employment, regardless of 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.
Benefits Provided: Retirement benefits are determined by age, years of service, the average of the
highest 5 or 8 fiscal years of pay, membership class and the payment option selected at retirement. For
further information concerning the Florida Retirement System and contribution rates, please read the
County -wide note on pension plans.
Contributions: Employer contributions to the FRS are based on a percentage of covered payroll that has
been actuarially determined as an amount, when combined with employee contributions, is expected to
finance the cost of benefits earned by employees during the year with an additional amount to finance
any unfunded accrued liability.
For the year ended September 30, 2016, the Property Appraiser's actuarial contributions to FRS under
the Pension Plan were $174,897 and the HIS Program were $33,853. Employee contributions were
$56,124. Both employer and employee contributions were equal to 100% of the required contribution for
each year.
342
Indian River County, Florida
Property Appraiser
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 3 — PENSION PLAN - Continued
Florida Retirement System - Continued
Pension Liabilities: At September 30, 2016, the Division of Retirement calculated the Property
Appraiser's liability of $1,722,855 for the FRS plan and $771,943 for the Health Insurance Subsidy
(HIS) Program, for a total of $2,494,798 for its proportionate share of the net pension liability. The net
pension liability was measured as of June 30, 2016 and the total pension liability used to calculate the
net pension liability was determined by an actuarial valuation as of July 1, 2016. The Property
Appraiser's proportion of the net pension liability was based on a projection of the Property Appraiser's
long-term share of contributions to the pension plan relative to the projected contributions of all
participating employers, actuarially determined. At September 30, 2016, the Property Appraiser's
proportion was .006823% for the FRS pension plan and .006624% for the HIS Program.
Discount Rate for Pension Plan: The discount rate used to measure the total pension liability was
7.60%. The projection of cash flows used to determine the discount rate assumed that plan member
contributions will be made at the current contribution rate and that the Property Appraiser's
contributions will be made statutorily required rates, actuarially determined. Based on those
assumptions, the pension plans' fiduciary net position was projected to be available to make all projected
future benefit payments of current active and inactive employees. Therefore, the long-term expected
rate of return on pension plan investments was applied to all periods of projected benefit payments to
determine the total pension liability.
Sensitivity of the Property Appraiser's Proportionate Share of the Net Position Liability to Changes in
the Discount Rate for the Pension Plan: The following presents the Property Appraiser's proportionate
share of the NPL (net pension liability) of the pension plan calculated using the discount rate of 7.60%.
Also presented is what the Property Appraiser's proportionate share of the FRS plan NPL would be if it
were calculated using a discount rate that is 1% lower or 1% higher than the current rate:
1% Decrease
(6.60%)
Current Discount
Rate (7.60%)
1% Increase
(8.60%)
Property Appraiser 's proportionate
share of NPL $ 3,171,893
$ 1,722,855 $ 516,722
Discount rate for the HIS Program: In general, the discount rate for calculating the pension liability is
equal to the single rate equivalent to discounting at the long-term expected rate of return for benefit
payments prior to the projected depletion date. Because the HIS Program is essentially funded on a pay-
as-you-go basis, the depletion date is considered to be immediate. The single equivalent discount rate is
equal to the municipal bond rate selected by the plan sponsor. The Bond Buyer General Obligation 20 -
Bond Municipal Bond Index was adopted as the applicable municipal bond index.
343
Indian River County, Florida
Property Appraiser
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 3 — PENSION PLAN - Continued
Florida Retirement System - Continued
Sensitivity of the Property Appraiser's Proportionate Share of the Net Position Liability to Changes in
the Discount Rate for the HIS Program: The following presents the Property Appraiser's proportionate
share of the NPL (net pension liability) of the HIS Program calculated using the discount rate of 2.85%.
Also presented is what the Property Appraiser's proportionate share of the HIS Program NPL would be
if it were calculated using a discount rate that is 1% lower or 1% higher than the current rate:
1% Discount
(1.85%)
Current Discount
Rate (2.85%)
1% Increase
(3.85%)
Property Appraiser's
proportionate share of NPL $ 885,594
$ 771,943 $ 677,619
Refer to the County -wide note for actuarial assumptions (including the investment rate of return),
pension liability on financial statements, and an explanation of pension expense components. The
pension liability is not reported in the financial statements of the Property Appraiser since they are not
payable from available spendable resources. It is reported in the financial statements of the County by
the fund which normally pays the personnel service costs of the employee.
NOTE 4 — OTHER POSTEMPLOYMENT BENEFITS
The Property Appraiser participated in the Indian River County Other Post Employment Benefits Trust
(IRCOT). The Property Appraiser's 2016.annual contribution of $54,318 was funded by the Board of
County Commissioners as part of a total contribution determined by the IRCOT actuary. Further
information on the IRCOT can be found in the County -wide financial statements and in the County
notes.
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 Property Appraiser participated
in the County's self-insurance program during fiscal year 2016 at an annual cost of approximately
$285,234. Further details on the self-insurance program are discussed in the County -wide financial
statements and County notes.
344
Indian River County, Florida
Property Appraiser
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 6 — LONG-TERM LIABILITIES
Changes in Long -Term Liabilities
A summary of changes in long-term liabilities is as follows:
Accrued Compensated Absences
Beginning Ending
Balance Balance
10/01/15 Additions Deletions 09/30/16
$ 18,148 $ 168,395 $ 167,569 $ 18,974
Of the $18,974 liability for accrued compensated absences, management estimates that $10,000 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.
345
Fkehmann
Rehmann Robson
5070 North Highway A1A
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
INDEPENDENT AUDITORS' 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
March 7, 2017
The Honorable David Nolte
Property Appraiser
Indian River County, Florida
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial statements contained in Government Auditing
Standards issued by the Comptroller General of the United States, the fund financial statements of the
major fund of the Indian River County, Florida Property Appraiser (the "Property Appraiser"), as of
and for the year ended September 30, 2016, which comprises the Property Appraiser's fund financial
statements, and have issued our report thereon dated March 7, 2017.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Property
Appraiser's internal control over financial reporting (internal control) to determine the audit
procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the
financial statements, but not for the purpose of expressing an opinion on the effectiveness of the
Property Appraiser's internal control. Accordingly, we do not express an opinion on the effectiveness of
the Property Appraiser's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control such that there is a reasonable possibility that a
material misstatement of the entity's financial statements wilt not be prevented, or detected and
corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in
internal control that is less severe than a material weakness, yet important enough to merit attention
by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of
this section and was not designed to identify alt deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses may exist that have not been identified.
Rehmann is an independent member of Nexia International.
CPAs & Consultants Wealth Advisors Corporate Ihvestigators
346
EX A
INTER NATIONAL
The Honorable David Nolte
Property Appraiser
March 7, 2017
Page 2
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Property Appraiser's financial statements
are free from material misstatement, we performed tests of its compliance with certain provisions of
taws, 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 or other
matters that are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
Property Appraiser's internal control or on compliance. This report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the entity's internal
control and compliance. Accordingly, this communication is not suitable for any other purpose.
347
Fkehmann
MANAGEMENT LETTER
March 7, 2017
The Honorable David Nolte
Property Appraiser
Indian River County, Florida
Report on the Financial Statements
Rehmann Robson
5070 North Highway A1A
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
We have audited the fund financial statements of the major fund of the Indian River County, Florida
Property Appraiser (the "Property Appraiser"), as of and for the year ended September 30, 2016,
which comprises the Property Appraiser's fund financial statements and have issued our report thereon
dated March 7, 2017.
Auditors' Responsibility
We conducted our audit 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; and Chapter 10.550, Rules of the Florida
Auditor General.
Other Reports and Schedule
We have issued our Independent Auditors' Report on Internal Control over Financial Reporting and on
Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance
with Government Auditing Standards. Disclosures in that report, which is dated March 7, 2017, should
be considered in conjunction with this management letter.
Prior Audit Findings
Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not
corrective actions have been taken to address findings and recommendations made in the preceding
annual financial audit report. Corrective actions have been taken to address recommendations made
in the preceding annual financial audit report.
Official Title and Legal Authority
Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal
authority for the primary government and each component unit of the reporting entity be disclosed in
this management letter, unless disclosed in the notes to the financial statements. This information is
disclosed in the notes to the financial statements.
Rehmann is an independent member of Nexia International.
CPAs & Consultants Wealth Advisors Corporate hivestigators
348
INTERNATIONAL
Other Matters
Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management
tetter any recommendations to improve financial management. In connection with our audit, we did
not have any such recommendations.
Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with
provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have
occurred, that have an effect on the financial statements that is less than material but which warrants
the attention of those charged with governance. In connection with our audit, we did not have any
such findings.
Purpose of this Letter
Our management letter is intended solely for the information and use of the Legislative Auditing
Committee, members of the Florida Senate and the Florida House of Representatives, the Florida
Auditor General, Federal and other granting agencies, the Property Appraiser and applicable
management and is not intended to be and should not be used by anyone other than these specified
parties.
349
Fkehmann
INDEPENDENT ACCOUNTANTS' REPORT
March 7, 2017
The Honorable David Nolte
Property Appraiser
Indian River County, Florida
Rehmann Robson
5070 North Highway A1A
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
We have examined the compliance of Indian River County, Florida Property Appraiser (the
"Property Appraiser") with Section 218.415, Florida Statutes, during the year ended September 30,
2016. Management is responsible for compliance with those requirements. Our responsibility is to
express an opinion on the Property Appraiser's compliance based on our examination.
Our examination was conducted in accordance with attestation standards established by the American
Institute of Certified Public Accountants and, accordingly, includes examining, on a test basis,
evidence about the Property Appraiser's compliance with those requirements and performing such
other procedures as we considered necessary in the circumstances. We believe that our examination
provides a reasonable basis for our opinion. Our examination does not provide a legal determination on
the Property Appraiser's compliance with specified requirements.
In our opinion, the Property Appraiser complied, in all material respects, with the aforementioned
requirements for the year ended September 30, 2016.
This report is intended solely for the information and use of management, the Property Appraiser, the
Board of County Commissioners and the Florida Auditor General and is not intended to be and should
not be used by anyone other than these specified parties.
Rehmann is an independent member of Nexia International.
CPAs & Consultants Wealth. Advisors Corporate Investigators
350
NEXIA
INTERNATIONAL.
351
Fkehmann
INDEPENDENT AUDITORS' REPORT
March 7, 2017
The Honorable Deryl Loar
Sheriff
Indian River County, Florida
Report on the Financial Statements
Rehmann Robson
5070 North Highway A1A
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
We have audited the accompanying fund financial statements of each major fund and the aggregate
remaining fund information of the Indian River County, Florida Sheriff (the "Sheriff"), as of and for
the year ended September 30, 2016, and the related notes to the financial statements, which
collectively comprise the Sheriff's fund financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud
or error.
Independent Auditors' Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. 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. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free from
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditors' judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity's
preparation and fair presentation of the financial statements in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as welt as evaluating the overall presentation
of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
Rehmann is an independent member of Nexia International.
CPAs & Consultants Wealth Advisors Corporate Investigators
352
INTERNATIONAL.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of the funds of the Sheriff as of September 30, 2016, and the respective changes in
financial position and the respective budgetary comparison for the general fund for the year then
ended in accordance with accounting principles generally accepted in the United States of America.
Reporting Entity
As discussed in Note 1, the financial statements referred to above present only the Indian River County,
Florida Sheriff and do not purport to, and do not, present fairly the financial position of Indian River
County, Florida as of September 30, 2016, and the changes in its financial position for the year then
ended, in conformity with accounting principles generally accepted in the United States of America.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March 7,
2017 on our consideration of the Sheriff's internal control over financial reporting and on our tests of
its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that 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
internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the Sheriff's internal
control over financial reporting and compliance.
353
Indian River County, Florida
Sheriff
Balance Sheet
Governmental Funds
September 30, 2016
General
Nonmajor
Fund Total
Special Governmental
Revenue Funds
ASSETS
Cash $ 1,746,762 $ 1,743,888 $ 3,490,650
Accounts receivable - net 63,739 69,661 133,400
Inventories 48,762 19,237 67,999
Total assets $ 1,859,263 $ 1,832,786 $ 3,692,049
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Due to other governments
Total liabilities
Fund Balances:
Nonspendable:
Inventories
Restricted for:
Law enforcement/public safety
Committed to:
Law enforcement/public safety
Assigned to:
Law enforcement/public safety
Unassigned
Total fund balances
Total liabilities and fund balances
1,452,747 $ 72,110 $ 1,524,857
406,516 73,468 479,984
1,859,263 145,578 2,004,841
48,762
19,237 67,999
1,250,430 1,250,430
311,003 311,003
106,538 106,538
(48,762)
1,687,208
1,832,786 $ 3,692,049
(48,762) -
1,687,208
1,859,263
The accompanying notes are an integral part of the financial statements.
354
Indian River County, Florida
Sheriff
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended September 30, 2016
REVENUES
Intergovernmental
Charges for services
Judgments, fines and
Miscellaneous
Total revenues
0
EXPENDITURES
Public safety
Court related
Total expenditures
eits
General
Nonmajor
Fund Total
Special Governmental
Revenue Funds
$ 207,981 $ 207,981
223,590 223,590
77,090 77,090
79,076 388,748 467,824
79,076 897,409 976,485
38,777,362 1,616,757 40,394,119
2,366,042 - 2,366,042
41,143,404 1,616,757 42,760,161
Excess of revenues over
(under) expenditures (41,064,328) (719,348) (41,783,676)
OTHER FINANCING SOURCES (USES)
Transfers from Board of County Commissioners 41,470,844 939,310 42,410,154
Transfers to Board of County Commissioners (406,516) (73,468) (479,984)
Total other financing sources 41,064,328 865,842 41,930,170
Net change in fund balances - 146,494 146,494
Fund balances at beginning of year - 1,540,714 1,540,714
Fund balances at end of year $ - $ 1,687,208 $ 1,687,208
The accompanying notes are an integral part of the financial statements.
355
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, 2016
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 Amounts
Original Final
38,668,393
2,232,297
40,900,690
(40,900,690)
40,900,690
40 900 690
79,076 $
79,076
39,116,282
2,433,638
41,549,920
(41,470, 844)
41,470,844
41 470 844
Actual
79,076 $
79,076
38,777,362
2,366,042
41,143,404
(41,064,328)
41,470,844
(406,516)
41,064,328
The accompanying notes are an integral part of the financial statements.
356
Variance
with Final
Budget
Positive
(Negative)
338,920
67,596
406,516
406,516
(406,516)
(406,516)
Indian River County, Florida
Sheriff
Statement of Fiduciary Net Position
Agency Fund
September 30, 2016
ASSETS
Cash $
Total assets $
LIABILITIES
Escrow deposits
Total liabilities
31,561
31,561
S 31,561
$ 31,561
The accompanying notes are an integral part of the financial statements.
357
Indian River County, Florida
Sheriff
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Sheriff 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 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.
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
For reporting purposes, the accounting records are organized into the following two fund types:
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 financial resources, which are not accounted for and reported in another fund, 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 proceeds of specific revenue
sources that are legally restricted, committed or assigned 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 in a trustee capacity
or as an agent. Funds are for the employee cafeteria plan.
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.
358
Indian River County, Florida
Sheriff
Notes To Financial Statements
Year Ended September 30, 2016
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
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 8.
E. Transfer Out
In accordance with Florida Statutes, all general fund revenues in excess of expenditures as of year-end
are owed to the Board of County Commissioners. The September 30, 2016 amount totaled $406,516 and
was reported as a transfer to the Board of County Commissioners at year end. This transfer is also
reported as due to other governments on the balance sheet.
F. Fund Balance
GASB Statement 54 — Fund Balance Reporting and Governmental Funds Type Definitions was
implemented as of October 1, 2009. This Statement requires the fund balance for governmental funds to
be reported in classifications that comprise a hierarchy based primarily on the extent to which the
government is bound to honor constraints on the specific purposes for which amounts in those funds can
be spent. Categories for fund balance are as follows: nonspendable, restricted, committed, assigned, and
unassigned. For more information, see the County -wide note on fund balance.
359
Indian River County, Florida
Sheriff
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 2 - CASH
Deposits
At September 30, 2016, the carrying amount of the Sheriff's deposits was $3,522,211, and the bank
balance was $4,992,402. 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 Sheriff's office elected not to adopt a formal investment policy and selects the alternative
investment guidelines as provided by Florida Statutes 218.415, subsection 17. Refer to the County -wide
note on cash and investments for the definition of custodial credit risk.
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:
Beginning Ending
Balance Balance
10/01/15 Additions Deletions 09/30/16
Tangible Personal Property $ 22,236,154 $ 2,133,260 $ 880,417 $ 23,488,997
Refer to the County -wide note on capital assets for capitalization threshold, depreciation methodology
and useful lives.
NOTE 4 - INVENTORIES
Inventories are valued at cost, which approximates market, using the "first -in, first -out" method of
accounting. The costs of inventory are recorded as an expenditure when consumed rather than when
purchased. Inventory of the Sheriff represents law enforcement gear, miscellaneous clothing and store
items.
360
Indian River County, Florida
Sheriff
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 5 — PENSION PLAN
Florida Retirement System
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 Management Services (DMS). Benefit provisions are established and may be amended by state
statute. A financial report is available from the DMS website at www.dms.myflorida.com or by mail at
Florida Division of Retirement, PO Box 9000, Tallahassee, FL 32315-9000.
Effective July 1, 2011, the FRS became a contributory plan for all members, except DROP participants,
whereby members contribute 3% and employers pay a rate based upon each member's employment
class. Classes and rates in effect at July 1, 2016 were: regular class 7.52%, special risk 22.57%, senior
management class 21.77%, DROP class 12.99%, and elected official class 42.47%. Included in these
rates is a health insurance subsidy of 1.66%.
Employees elect participation in either the defined benefit plan (Pension Plan) or the defined
contribution plan (Investment Plan). If the employee enrolled in the FRS prior to July 1, 2011, normal.
retirement is age 62 with 6 years of service or 30 years of service, regardless of age. If the employee
enrolled in the FRS on or after July 1, 2011, normal retirement is age 65 with 8 years of service or 33
years of service, regardless of age.
Under the Pension Plan, early retirement is available before reaching normal retirement age and will be
subject to an early-retirement reduction of 5% for each year your age at retirement is under your normal
retirement age. For those employees who elect participation in the Investment Plan rather than the
Pension Plan, vesting occurs after one year of service. Participants have access to the full value of their
vested account balance when they leave FRS employment, regardless of 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.
Benefits Provided: Retirement benefits are determined by age, years of service, the average of the
highest 5 or 8 fiscal years of pay, membership class and the payment option selected at retirement. For
further information concerning the Florida Retirement System and contribution rates, please read the
County -wide note on pension plans.
Contributions: Employer contributions to the FRS are based on a percentage of covered payroll that has
been actuarially determined as an amount, when combined with employee contributions, is expected to
finance the cost of benefits earned by employees during the year with an additional amount to finance
any unfunded accrued liability.
For the year ended September 30, 2016, the Sheriffs actuarial contributions to FRS under the Pension
Plan were $3,565,124 and the HIS Program were $404,419. Employee contributions were $647,863.
Both employer and employee contributions were equal to 100% of the required contribution for each
year.
361
Indian River County, Florida
Sheriff
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 5 — PENSION PLAN - Continued
Florida Retirement System - Continued
Pension Liabilities: At September 30, 2016, the Division of Retirement calculated the Sheriffs liability
of $34,204,143 for the FRS plan and $8,806,281 for the Health Insurance Subsidy (HIS) Program, for a
total of $43,010,424 for its proportionate share of the net pension liability. The net pension liability was
measured as of June 30, 2016 and the total pension liability used to calculate the net pension liability
was determined by an actuarial valuation as of July 1, 2016. The Sheriffs proportion of the net pension
liability was based on a projection of the Sheriffs long-term share of contributions to the pension plan
relative to the projected contributions of all participating employers, actuarially determined. At
September 30, 2016,.the Sheriff's proportion was .135462% for the FRS pension plan and .0755606%
for the HIS Program.
Discount Rate for Pension Plan: The discount rate used to measure the total pension liability was
7.60%. The projection of cash flows used to determine the discount rate assumed that plan member
contributions will be made at the current contribution rate and that the Sheriffs contributions will be
made statutorily required rates, actuarially determined. Based on those assumptions, the pension plans'
fiduciary net position was projected to be available to make all projected future benefit payments of
current active and inactive employees. Therefore, the long-term expected rate of return on pension plan
investments was applied to all periods of projected benefit payments to determine the total pension
liability.
Sensitivity of the Sheriffs Proportionate Share of the Net Position Liability to Changes in the Discount
Rate for the Pension Plan: The following presents the Sheriffs proportionate share of the NPL (net
pension liability) of the pension plan calculated using the discount rate of 7.60%. Also presented is
what the Sheriffs proportionate share of the FRS plan NPL would be if it were calculated using a
discount rate that is 1% lower or 1% higher than the current rate:
1% Decrease (6.60%)
Current Discount
Rate (7.60%)
1% Increase (8.60%)
Sheriffs proportionate
share of NPL $ 62,972,142 $ 34,204,143 $ 10,258,582
Discount rate for the HIS Program: In general, the discount rate for calculating the pension liability is
equal to the single rate equivalent to discounting at the long-term expected rate of return for benefit
payments prior to the projected depletion date. Because the HIS Program is essentially funded on a pay-
as-you-go basis, the depletion date is considered to be immediate. The single equivalent discount rate is
equal to the municipal bond rate selected by the plan sponsor. The Bond Buyer General Obligation 20 -
Bond Municipal Bond Index was adopted as the applicable municipal bond index.
362
Indian River County, Florida
Sheriff
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 5 — PENSION PLAN - Continued
Florida Retirement System - Continued
Sensitivity of the Sheriffs Proportionate Share of the Net Position Liability to Changes in the Discount
Rate for the HIS Program: The following presents the Sheriffs proportionate share of the NPL (net
pension liability) of the HIS Program calculated using the discount rate of 2.85%. Also presented is
what the Sheriffs proportionate share of the HIS Program NPL would be if it were calculated using a
discount rate that is 1% lower or 1% higher than the current rate:
1% Decrease (1.85%)
Current Discount
Rate (2.85%)
1% Increase (3.85%)
Sheriffs proportionate
share of NPL $ 10,102,805 $ 8,806,281 $ 7,730,236
Refer to the County -wide note for actuarial assumptions (including the investment rate of return),
pension liability on financial statements, and an explanation of pension expense components. The
pension liability is not reported in the financial statements of the Sheriff since they are not payable from
available spendable resources. It is reported in the financial statements of the County by the fund which
normally pays the personnel service costs of the employee.
NOTE 6 — OTHER POSTEMPLOYMENT BENEFITS
The Sheriff participated in the Indian River County Other Post Employment Benefits Trust (IRCOT).
The Sheriff's 2016 annual contribution of $1,106,926 was funded by the Board of County
Commissioners as part of a total contribution determined by the IRCOT actuary. Further information on.
the IRCOT can be found in the County -wide financial statements and County notes.
NOTE 7 — 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 Sheriff participated in the
County's self-insurance program during fiscal year 2016 at an annual cost of approximately $3,930,822.
Further details on this self-insurance program are disclosed in the County -wide financial statements and
County notes.
363
Indian River County, Florida
Sheriff
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 8 — LONG-TERM LIABILITIES
Changes in Long -Term Liabilities
The following is a schedule of changes in long-term liabilities as of September 30, 2016:
Beginning Ending
Balance Balance
10/01/15 Additions Deletions 09/30/16
Accrued Compensated Absences $ 6,474,761
$ 3,833,381 $ 3,932,317
$ 6 375 825
Of the $6,375,825 liability for accrued compensated absences, management estimates that $3,443,484
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 County -wide financial statements and County notes.
NOTE 9 — OPERATING LEASES
The Sheriff has entered into noncancelable operating leases as lessee of a building, hangar, mail
machine, and copiers. Lease expenditures totaled $100,651 for the year ended September 30, 2016..
The following is a schedule by years of minimum future rentals to be paid by the Sheri
noncancelable operating leases as of September 30:
Year Amount
2017 $ 85,849
2018 25,615
2019. 715
Total Future Minimum Lease Payments $ 112,179
NOTE 10 — COMMITMENTS AND CONTINGENCIES
f for
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. 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 Sheriff.
364
Fkehmann
Rehmann Robson
5070 North Highway A1A
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
INDEPENDENT AUDITORS' 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
March 7, 2017
The Honorable Deryl Loar
Sheriff
Indian River County, Florida
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial statements contained in Government Auditing
Standards issued by the Comptroller General of the United States, the fund financial statements of the
major fund and the aggregate remaining fund information of the Indian River County, Florida Sheriff
(the "Sheriff"), as of and for the year ended September 30, 2016, which collectively comprise the
Sheriff's fund financial statements and have issued our report thereon dated March 7, 2017.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Sheriff's internal
control over financial reporting (internal control) to determine the audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the Sheriff's
internal control. Accordingly, we do not express an opinion on the effectiveness of the Sheriff's
internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control such that there is a reasonable possibility that a
material misstatement of the entity's financial statements will not be prevented, or detected and
corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in
internal control that is less severe than a material weakness, yet important enough to merit attention
by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of
this section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses may exist that have not been identified.
Rehmann is an independent member of Nexia International.
CPAs & Consultants Wealth. Advisors Corporate Investigators
365
INTER
The Honorable Deryl Loar
Sheriff
March 7, 2017
Page 2
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Sheriff's financial statements are free
from 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 or other
matters that are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
Sheriff's internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the entity's internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
366
Fkehmann
MANAGEMENT LETTER
March 7, 2017
The Honorable Deryl Loar
Sheriff
Indian River County, Florida
Report on the Financial Statements
Rehmann Robson
5070 North Highway A1A
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
We have audited the fund financial statements of the major fund and the aggregate remaining fund
information of the Indian River County, Florida Sheriff (the "Sheriff"), as of and for the year ended
September 30, 2016, which collectively comprise the Sheriff's fund financial statements and have
issued our report thereon dated March 7, 2017.
Auditors' Responsibility
We conducted our audit 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; and Chapter 10.550, Rules of the Florida
Auditor General.
Other Reports and Schedule
We have issued our Independent Auditors' Report on Internal Control over Financial Reporting and on
Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance
with Government Auditing Standards. Disclosures in that report, which is dated March 7, 2017, should
be considered in conjunction with this management letter.
Prior Audit Findings
Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not
corrective actions have been taken to address findings and recommendations made in the preceding
annual financial audit report. Corrective actions have been taken to address recommendations made
in the preceding annual financial audit report.
Official Title and Legal Authority
Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal
authority for the primary government and each component unit of the reporting entity be disclosed in
this management letter, unless disclosed in the notes to the financial statements. This information is
disclosed in the notes to the financial statements.
Other Matters
Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management
tetter any recommendations to improve financial management. In connection with our audit, we did
not have any such recommendations.
Rehmann is an independent member of Nexia International.
CPAs & Consultants Wealth Advisors Corporate Ihvestigators
367
EX A
INTER NATIONAL
Section 10.554(1)(1)3., Rules of the Auditor General, requires that we address noncompliance with
provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have
occurred, that have an effect on the financial statements that is less than material but which warrants
the attention of those charged with governance. In connection with our audit, we did not have any
such findings.
Purpose of this Letter
Our management letter is intended solely for the information and use of the Legislative Auditing
Committee, members of the Florida Senate and the Florida House of Representatives, the Florida
Auditor General, Federal and other granting agencies, the Sheriff and applicable management and is
not intended to be and should not be used by anyone other than these specified parties.
368
369
Fkehmann
INDEPENDENT AUDITORS' REPORT
March 7, 2017
The Honorable Leslie Swan
Supervisor of Elections
Indian River County, Florida
Report on the Financial Statements
Rehmann Robson
5070 North Highway A1A
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
We have audited the accompanying fund financial statements of the major fund and the aggregate
remaining fund information of the Indian River County, Florida Supervisor of Elections (the
"Supervisor of Elections"), as of and for the year ended September 30, 2016, and the related notes to
the financial statements, which collectively comprise the Supervisor of Elections' fund financial
statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud
or error.
Independent Auditors' Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. 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. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free from
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditors' judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity's
preparation and fair presentation of the financial statements in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as welt as evaluating the overall presentation
of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
Rehmann is an independent member of Nexia International.
CPAs & Consultants Wealth Advisors Corporate Investigators
370
INTERNATIONAL
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of the funds of the Supervisor of Elections as of September 30, 2016, and the
respective changes in financial position and the respective budgetary comparison for the general fund
for the year then ended in accordance with accounting principles generally accepted in the United
States of America.
Reporting Entity
As discussed in Note 1, the financial statements referred to above present only the Indian River County,
Florida Supervisor of Elections and do not purport to, and do not, present fairly the financial position
of Indian River County, Florida as of September 30, 2016, and the changes in its financial position for
the year then ended, in conformity with accounting principles generally accepted in the United States
of America.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March 7,
2017 on our consideration of the Supervisor of Elections' internal control over financial reporting and
on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements and other matters. The purpose of that 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 internal control over financial reporting or on compliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards in considering
the Supervisor of Elections' internal control over financial reporting and compliance.
371
Indian River County, Florida
Supervisor of Elections
Balance Sheet
Governmental Funds
September 30, 2016
ASSETS
Cash
Prepaid items
Total assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Due to other governments
Unearned revenues
Total liabilities
Fund Balances:
Nonspendable:
Prepaid items
Restricted for:
Unassigned
Total fund balances
Total liabilities and fund balances
$
Nonmajor Fund Total
Special Governmental
General Revenue Funds
88,855 $ 35,913 $ 124,768
5,080 - 5,080
93,935 $ 35,913 $ 129,848
49,901 $ - $ 49,901
44,034 - 44,034
- 35,913 35,913
93,935 35,913 129,848
5,080 - 5,080
(5,080) - (5,080)
93,935 $ 35,913 $ 129,848
The accompanying notes are an integral part of the financial statements.
372
Indian River County, Florida
Supervisor of Elections
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended September 30, 2016
General
Nonmajor
Fund Total
Special Governmental
Revenue Funds
REVENUES
Intergovernmental $ - $ 4,026 $ 4,026
Charges for services 6,215 - 6,215
Miscellaneous 58,174 - 58,174
Total revenues 64,389 4,026 68,415
EXPENDITURES
General government 1,257,164 10,017 1,267,181
Total expenditures 1,257,164 10,017 1,267,181
Excess of revenues over
(under) expenditures (1,192,775) (5,991) (1,198,766)
OTHER FINANCING SOURCES (USES)
Transfers from Board of County Commissioners 1,239,272 - 1,239,272
Transfers from other funds 2,463 2,463
Transfers to Board of County Commissioners (44,034) - (44,034)
Transfers to other funds (2,463) - (2,463)
Total other financing sources (uses) 1,192,775 2,463 1,195,238
Net change in fund balances - (3,528) (3,528)
Fund balances at beginning of year
Fund balances at end of year
3,528 3,528
The accompanying notes are an integral part of the financial statements.
373
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, 2016
Variance
with Final
Budget
Budgeted Amount Positive
Original Final Actual (Negative)
REVENUES
Charges for services $ - $ - $ 6,215 $ 6,215
Miscellaneous - 58,174 58,174 -
Total revenues 58,174 64,389 6,215
EXPENDITURES
General government 1,235,663 1,293,837 1,257,164 36,673
Total expenditures 1,235,663 1,293,837 1,257,164 36,673
Excess of revenues over
(under) expenditures (1,235,663) (1,235,663) (1,192,775) 42,888
OTHER FINANCING SOURCES (USES)
Transfers from Board of County
Commissioners 1,239,272 1,239,272 1,239,272
Transfers to Board of County
Commissioners - - (44,034) (44,034)
Transfers to other funds (3,609) (3,609) (2,463) 1,146
Total other financing sources (uses) 1,235,663 1,235,663 1,192,775 (42,888)
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.
374
Indian River County, Florida
Supervisor of Elections
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 1 - 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.
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 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 financial resources,
which are not accounted for and reported in another fund, 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.
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.
375
Indian River County, Florida
Supervisor of Elections
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
D. Prepaid Items
Deposits in the governmental funds represent prepayments for services that will be used in future
periods. The Supervisor of Elections' 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. Unearned Revenues
Unearned revenues reported on the Supervisor of Elections' balance sheet represent revenues which are
available but not earned.
G. 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 6.
H. Transfer Out
In accordance with Florida Statutes, all general fund revenues in excess of expenditures as of year-end
are owed to the Board of County Commissioners and other governments. This unspent budget totaled
$44,034 and was reported as a transfer to the Board of County Commissioners. These transfers are also
reflected as due to other governments on the balance sheet.
. Fund Balance
GASB Statement 54 — Fund Balance Reporting and Governmental Funds Type Definitions was
implemented as of October 1, 2009. This Statement requires the fund balance for governmental funds to
be reported in classifications that comprise a hierarchy based primarily on the extent to which the
government is bound to honor constraints on the specific purposes for which amounts in those funds can
be spent. Categories for fund balance are as follows: nonspendable, restricted, committed, assigned, and
unassigned. For more information, see the County -wide note on fund balance.
376
Indian River County, Florida
Supervisor of Elections
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 2 - CASH
Deposits
At September 30, 2016, the carrying amount of the Supervisor of Elections' deposits was $124,768, and
the bank balance was $1.91,267. 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 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 on cash and investments for the 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 Management Services (DMS). Benefit provisions are established and may be
amended by state statute. A financial report is available from the DMS website at
www.dms.myflorida.com or by mail at Florida Division of Retirement, PO Box 9000, Tallahassee, FL
32315-9000.
Effective July 1, 2011, the FRS became a contributory plan for all members, except DROP participants,
whereby members contribute 3% and employers pay a rate based upon each member's employment
class. Classes and rates in effect at July 1, 2016 were: regular class 7.52%, senior class 21.77%, DROP
class 12.99%, and elected official class 42.47%. Included in these rates is a health insurance subsidy of
1.66%.
Employees elect participation in either the defined benefit plan (Pension Plan) or the defined
contribution plan (Investment Plan). If the employee enrolled in the FRS prior to July 1, 2011, normal
retirement is age 62 with 6 years of service or 30 years of service, regardless of age. If the employee
enrolled in the FRS on or after July 1, 2011, normal retirement is age 65 with 8 years of service or 33
years of service, regardless of age.
Under the Pension Plan, early retirement is available before reaching normal retirement age and will be
subject to an early-retirement reduction of 5% for each year your age at retirement is under your normal
retirement age. For those employees who elect participation in the Investment Plan rather than the
Pension Plan, vesting occurs after one year of service. Participants have access to the full value of their
vested account balance when they leave FRS employment, regardless of 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.
377
Indian River County, Florida
Supervisor of Elections
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 3 — PENSION PLAN - Continued
Florida Retirement System - Continued
Benefits Provided: Retirement benefits are determined by age, years of service, the average of the
highest 5 or 8 fiscal years of pay, membership class and the payment option selected at retirement. For
further information concerning the Florida Retirement System and contribution rates, please read the
County -wide note on pension plans.
Contributions: Employer contributions to the FRS are based on a percentage of covered payroll that has
been actuarially determined as an amount, when combined with employee contributions, is expected to
finance the cost of benefits earned by employees during the year with an additional amount to finance
any unfunded accrued liability.
For the year ended September 30, 2016, the Supervisor of Elections' actuarial contribution to FRS under
the Pension Plan were $61,453 and the HIS Programs were $7,892. Employee contributions were
$14,149. Both employer and employee contributions were equal to 100% of the required contribution for
each year.
Pension Liabilities: At September 30, 2016,.the Division of Retirement calculated the Supervisor of
Elections' liability of $640,314 for the FRS plan and $178,994 for the Health Insurance Subsidy (HIS)
Program, for a total of $819,308 for its proportionate share of the net pension liability. The net pension
liability was measured as of June 30, 2016 and the total pension liability used to calculate the net
pension liability was determined by an actuarial valuation as of July 1, 2016. The Supervisor of
Elections' proportion of the net pension liability was based on a projection of the Supervisor of
Elections' long-term share of contributions to the pension plan relative to the projected contributions of
all participating employers, actuarially determined. At September 30, 2016, the Supervisor of Elections'
proportion was .002536% for the FRS pension plan and .001536% for the HIS Program.
Discount Rate for Pension Plan: The discount rate used to measure the total pension liability was
7.60%. The projection of cash flows used to determine the discount rate assumed that plan member
contributions will be made at the current contribution rate and that the Supervisor of Elections'
contributions will be made statutorily required rates, actuarially determined. Based on those
assumptions, the pension plans' fiduciary net position was projected to be available to make all projected
future benefit payments of current active and inactive employees. Therefore, the long-term expected
rate of return on pension plan investments was applied to all periods of projected benefit payments to
determine the total pension liability.
378
Indian River County, Florida
Supervisor of Elections
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 3 — PENSION PLAN - Continued
Florida Retirement System - Continued
Sensitivity of the Supervisor of Elections's Proportionate Share of the Net Position Liability to Changes
in the Discount Rate for the Pension Plan: The following presents the Supervisor of Elections'
proportionate share of the NPL (net pension liability) of the pension plan calculated using the discount
rate of 7.60%. Also presented is what the Supervisor of Elections' proportionate share of the FRS plan
NPL would be if it were calculated using a discount rate that is 1% lower or 1% higher than the current
rate:
Supervisor of Elections's
proportionate share of NPL
1% Decrease Current Discount I% Increase
(6.60%) Rate (7.60%) (8.60°/9j
$ 1,178,861 $ 640,314 $ 192,044
Discount rate for the HIS Program: In general, the discount rate for calculating the pension liability is
equal to the single rate equivalent to discounting at the long-term expected rate of return for benefit
payments prior to the projected depletion date. Because the HIS Program is essentially funded on a pay-
as-you-go basis, the depletion date is considered to be immediate. The single equivalent discount rate is
equal to the municipal bond rate selected by the plan sponsor. The Bond Buyer General Obligation 20 -
Bond Municipal Bond Index was adopted as the applicable municipal bond index.
Sensitivity of the Supervisor of Elections's Proportionate Share of the Net Position Liability to Changes
in the Discount Rate for the HIS Program: The following presents the Supervisor of Elections'
proportionate share of the NPL (net pension liability) of the HIS Program calculated using the discount
rate of 2.85%. Also presented is what the Supervisor of Elections's proportionate share of the HIS
Program NPL would be if it were calculated using a discount rate that is 1% lower or 1% higher than the
current rate:
Supervisor of Election's
proportionate share of NPL
1% Decrease
(1.85%)
$ 205,346
Current Discount
Rate (2.85%)
$ 178,994
1% Increase
(3.85%)
157,122
Refer to the County -wide note for actuarial assumptions (including the investment rate of return),
pension liability on financial statements, and an explanation of pension expense components. The
pension liability is not reported in the financial statements of the Supervisor of Elections since they are
not payable from available spendable resources. It is reported in the financial statements of the County
by the fund which normally pays the personnel service costs of the employee.
379
Indian River County, Florida
Supervisor of Elections
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 4 — OTHER POSTEMPLOYMENT BENEFITS
The Supervisor of Elections participated in the Indian River County Other Post Employment Benefit
Trust (IRCOT). The Supervisor of Election's 2016 annual contribution of $14,814 was funded by the
Board of County Commissioners as part of a total contribution determined by the IRCOT actuary.
Further information on the IRCOT can be found in the County -wide financial statements and County
notes.
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 Supervisor of Elections
participated in the County's self-insurance program during fiscal year 2016 at an annual cost of
approximately $59,234.
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, 2016:
Beginning Ending
Balance Balance
10/01/15 Additions Deletions 09/30/16
Accrued Compensated Absences $ 18,417 $ 28,590 $ 21,984 $ 25,023
Of the $25,023 liability for accrued compensated absences, management estimates that S10,887 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.
380
Indian River County, Florida
Supervisor of Elections
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 7 — OPERATING LEASES
The Supervisor of Elections has entered into noncancelable operating leases as lessee for a mail machine
and letter opener. Lease expenditures totaled $6,672 for the year ended September 30, 2016.
The following is a schedule by years of minimum future rentals to be paid by the Supervisor of Elections
for the noncancelable operating leases as of September 30:
Year
2017
381
Amount
$..5,004
Fkehmann
Rehmann Robson
5070 North Highway A1A
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
INDEPENDENT AUDITORS' 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
March 7, 2017
The Honorable Leslie Swan
Supervisor of Elections
Indian River County, Florida
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial statements contained in Government Auditing
Standards issued by the Comptroller General of the United States, the fund financial statements of the
major fund and the aggregate remaining fund information of the Indian River County, Florida
Supervisor of Elections (the "Supervisor of Elections"), as of and for the year ended September 30,
2016, which collectively comprise the Supervisor of Elections' fund financial statements and have
issued our report thereon dated March 7, 2017.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Supervisor of
Elections' internal control over financial reporting (internal control) to determine the audit procedures
that are appropriate in the circumstances for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the Supervisor of
Elections' internal control. Accordingly, we do not express an opinion on the effectiveness of the
Supervisor of Elections' internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control such that there is a reasonable possibility that a
material misstatement of the entity's financial statements will not be prevented, or detected and
corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in
internal control that is less severe than a material weakness, yet important enough to merit attention
by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of
this section and was not designed to identify alt deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify
any deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Supervisor of Elections' financial
statements are free from material misstatement, we performed tests of its compliance with certain
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CPAs & Consultants Wealth. Advisors Corporate Investigators
382
INTERNATIONAL
The Honorable Leslie Swan
Supervisor of Elections
March 7, 2017
Page 2
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 or
other matters that are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
Supervisor of Elections' internal control or on compliance. This report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the entity's internal
control and compliance. Accordingly, this communication is not suitable for any other purpose.
383
Fkehmann
MANAGEMENT LETTER
March 7, 2017
The Honorable Leslie Swan
Supervisor of Elections
Indian River County, Florida
Report on the Financial Statements
Rehmann Robson
5070 North Highway A1A
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
We have audited the fund financial statements of the major fund and the aggregate remaining fund
information of the Indian River County, Florida Supervisor of Elections (the "Supervisor of
Elections), as of and for the year ended September 30, 2016, which collectively comprise the
Supervisor of Elections' fund financial statements and have issued our report thereon dated March 7,
2017.
Auditors' Responsibility
We conducted our audit 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; and Chapter 10.550, Rules of the Florida
Auditor General.
Other Reports and Schedule
We have issued our Independent Auditors' Report on Internal Control over Financial Reporting and on
Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance
with Government Auditing Standards. Disclosures in that report, which is dated March 7, 2017, should
be considered in conjunction with this management letter.
Prior Audit Findings
Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not
corrective actions have been taken to address findings and recommendations made in the preceding
annual financial audit report. There were no findings or recommendations in the preceding annual
financial audit report.
Official Title and Legal Authority
Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal
authority for the primary government and each component unit of the reporting entity be disclosed in
this management letter, unless disclosed in the notes to the financial statements. This information is
disclosed in the notes to the financial statements.
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3N
FR NATIONAL.
Other Matters
Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management
tetter any recommendations to improve financial management. In connection with our audit, we did
not have any such recommendations.
Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with
provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have
occurred, that have an effect on the financial statements that is less than material but which warrants
the attention of those charged with governance. In connection with our audit, we did not have any
such findings.
Purpose of this Letter
Our management letter is intended solely for the information and use of the Legislative Auditing
Committee, members of the Florida Senate and the Florida House of Representatives, the Florida
Auditor General, Federal and other granting agencies, Supervisor of Elections and applicable
management and is not intended to be and should not be used by anyone other than these specified
parties.
385
386
387
Fkehmann
INDEPENDENT AUDITORS' REPORT
March 7, 2017
The Honorable Carole Jean Jordan
Tax Collector
Indian River County, Florida
Report on the Financial Statements
Rehmann Robson
5070 North Highway A1A
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
We have audited the accompanying fund financial statements of the major fund and the aggregate
remaining fund information of the Indian River County, Florida Tax Collector (the "Tax Collector"),
as of and for the year ended September 30, 2016, and the related notes to the financial statements,
which collectively comprise the Tax Collector's fund financial statements as listed in the table of
contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud
or error.
Independent Auditors' Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. 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. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free from
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditors' judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity's
preparation and fair presentation of the financial statements in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation
of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
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388
INTER.NATIONAI.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of the funds of the Tax Collector as of September 30, 2016, and the respective
changes in financial position and the respective budgetary comparison for the general fund for the year
then ended in accordance with accounting principles generally accepted in the United States of
America.
Reporting Entity
As discussed in Note 1, the financial statements referred to above present only the Indian River County,
Florida Tax Collector and do not purport to, and do not, present fairly the financial position of Indian
River County, Florida as of September 30, 2016, and the changes in its financial position for the year
then ended, in conformity with accounting principles generally accepted in the United States of
America.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March 7,
2017 on our consideration of the Tax Collector's internal control over financial reporting and on our
tests of its compliance with certain provisions of taws, regulations, contracts, and grant agreements
and other matters. The purpose of that 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 internal control over financial reporting or on compliance. That report is an integral part of
an audit performed in accordance with Government Auditing Standards in considering the Tax
Collector's internal control over financial reporting and compliance.
389
Indian River County, Florida
Tax Collector
Balance Sheet
General Fund
September 30, 2016
ASSETS
Cash $ 3,148,612
Accounts receivable 203,758
Inventories 3,505
Prepaid items 29,238
Total assets $ 3,385,113
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Due to other governments
Unearned revenues
Other deposits
Total liabilities
331,987
3,003,325
49,478
323
3,385,113
Fund Balances:
Nonspendable:
Inventories 3,505
Prepaid items 29,238
Unassigned (32,743)
Total fund balances
Total liabilities and fund balances $ 3,385,113
The accompanying notes are an integral part of the financial statements.
390
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, 2016
Variance with
Final Budget
Budgeted Amount Positive
Original Final Actual (Negative)
REVENUES
Charges for services $ 5,963,950 $ 5,963,950 $ 6,343,182 $ 379,232
Interest 8,500 8,500 10,436 1,936
Total revenues 5,972,450 5,972,450 6,353,618 381,168
EXPENDITURES
General government 3,632,921 3,632,921 3,651,038 (18,117)
Total expenditures 3,632,921 3,632,921 3,651,038 (18,117)
Excess of revenues
over (under) expenditures 2,339,529 2,339,529 2,702,580 363,051.
OTHER FINANCING USES
Transfers to Board
of County Commissioners
Total other financing uses
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
(2,339,529) (2,339,529) (2,702,580) (363,051)
(2,339,529) (2,339,529) (2,702,580) (363,051)
The accompanying notes are an integral part of the financial statements.
391
Indian River County, Florida
Tax Collector
Statement of Fiduciary Net Position
Agency Fund
September 30, 2016
ASSETS
Cash $ 4,198,724
Total assets $ 4,198,724
LIABILITIES
Due to other governments
Total liabilities
$ 4,198,724
$ 4,198,724
The accompanying notes are an integral part of the financial statements.
392
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Tax Collector 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 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
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
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 financial resources, which are
not accounted for and reported in another fund, 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.
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. These funds cannot be used to support the Tax
Collector's own programs.
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.
393
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2016
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 her 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
Cash includes cash on hand, bank deposits, certificates of deposit, money market accounts, and short
term investments with original maturities of ninety days or less from the date of acquisition.
E. Prepaid Items
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
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.
G. Unearned Revenues
Unearned revenues represent revenues which are available but not earned. The amount reported on the
Tax Collector's balance sheet of $49,478 represents prepaid vehicle registrations.
H. 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 she 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 7.
394
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
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" totaled $3,003,325 at
September 30, 2016 and are included as due to other governments on the balance sheet. Of this amount,
$2,702,580 was owed to the Board of County Commissioners and is reported as Transfers to Board of
County Commissioners on the Statement of Revenues, Expenditures and Changes in Fund Balances.
J. Fund Balance
GASB Statement 54 — Fund Balance Reporting and Governmental Funds Type Definitions was
implemented as of October 1, 2009. This Statement requires the fund balance for governmental funds to
be reported in classifications that comprise a hierarchy based primarily on the extent to which the
government is bound to honor constraints on the specific purposes for which amounts in those funds can
be spent. Categories for fund balance are as follows: nonspendable, restricted, committed, assigned, and
unassigned. For more information, see the County -wide note on fund balance.
NOTE 2 - CASH
A. Deposits
All bank deposits and certificates of deposit 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. At September 30, 2016, the carrying amount of the Tax Collector's deposits was $7,347,336 and
the bank balance was $7,343,977.
B. Deposit and Investment Policy
The Tax Collector last modified their investment and deposit policy in September 2016. This policy
requires the Tax Collector's office to follow the above state law (governing custodial credit risk) for
deposits and Section 218.415, Florida Statutes. Refer to the County -wide note on cash and investments
for the definition of custodial credit risk.
395
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 2 - CASH - Continued
B. Deposit and Investment Policy - Continued
Concentration Risk
The Tax Collector's cash and investment policy limits portfolio composition to the following maximum
guidelines:
Local Government Surplus Funds Trust Fund 50%
Florida Trust Day to Day Fund 50%
Florida Cooperative Liquid Assets Securities System 95%
Direct Obligations of the U.S. Government 25%
Money Market, CD's, and Savings Accounts 95%
Securities & Exchange Commission Money Funds 25%
Bank Super NOW Accounts 95%
Bank Repo Agreements 50%
United States Government Agencies 25%
Interest Rate Risk
The Tax Collector will attempt to match investment maturities with known cash needs and anticipated
cash flow requirements. Investments of current operating funds shall have maturities of no longer than
twelve months and funds in excess of current operating needs may have maturities of no longer than
twenty-four months.
Credit Risk
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. At September 30, 2016
the Florida PRIME and the Florida Trust Day to Day Fund held a rating of AAAm.
Custodial Credit Risk
All investments are held in the name of the Tax Collector, by the Tax Collector, with the exception of
the Florida Trust Day to Day Fund, which was held by UMB Bank, and the Florida PRIME which was
held by BNY Mellon.
396
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2016
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.
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 Management Services (DMS). Benefit provisions are established and may be amended by
state statute. A financial report is available from the DMS website at www.dms.myflorida.com or by
mail at Florida Division of Retirement, PO Box 9000, Tallahassee, FL 32315-9000.
Effective July 1, 2011, the FRS became a contributory plan for all members, except DROP participants,
whereby members contribute 3% and employers pay a rate based upon each member's employment
class. Classes and rates in effect at July 1, 2016 were: regular class 7.52%, senior class 21.77%, DROP
class 12.99%, and elected official class 42.47%. Included in these rates is a health insurance subsidy of
1.66%.
Employees elect participation in either the defined benefit plan (Pension Plan) or the defined
contribution plan (Investment Plan). If the employee enrolled in the FRS prior to July 1, 2011, normal
retirement is age 62 with 6 years of service or 30 years of service, regardless of age. If the employee
enrolled in the FRS on or after July 1, 2011, nonnal retirement is age 65 with 8 years of service or 33
years of service, regardless of age.
Under the Pension Plan, early retirement is available before reaching normal retirement age and will be
subject to an early-retirement reduction of 5% for each year your age at retirement is under your normal
retirement age. For those employees who elect participation in the Investment Plan rather than the
Pension Plan, vesting occurs after one year of service. Participants have access to the full value of their
vested account balance when they leave FRS employment, regardless of 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.
Benefits Provided: Retirement benefits are determined by age, years of service, the average of the
highest 5 or 8 fiscal years of pay, membership class and the payment option selected at retirement. For
further information concerning the Florida Retirement System and contribution rates, please read the
County -wide note on pension plans.
397
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 4 — PENSION PLAN - Continued
Florida Retirement System - Continued
Contributions: Employer contributions to the FRS are based on a percentage of covered payroll that has
been actuarially determined as an amount, when combined with employee contributions, is expected to
finance the cost of benefits earned by employees during the year with an additional amount to finance
any unfunded accrued liability.
For the year ended September 30, 2016, the Tax Collector's actuarial contributions to FRS under the
Pension Plan were $169,463 and the HIS Program were $29,088. Employee contributions were
$50,334. Both employer and employee contributions were equal to 100% of the required contribution for
each year.
Pension Liabilities: At September 30, 2016, the Division of Retirement calculated the Tax Collector's
liability of $1,668,795 for the FRS plan and $638,003 for the Health Insurance Subsidy (HIS) Program,
for a total of $2,306,798 for its proportionate share of the net pension liability. The net pension liability
was measured as of June 30, 2016 and the total pension liability used to calculate the net pension
liability was determined by an actuarial valuation as of July 1, 2016. The Tax Collector's proportion of
the net pension liability was based on a projection of the Tax Collector's long-term share of
contributions to the pension plan relative to the projected contributions of all participating employers,
actuarially determined. At September 30, 2016, the Tax Collector's proportion was .006609% for the
FRS pension plan and .005474% for the HIS Program.
Discount Rate for Pension Plan: The discount rate used to measure the total pension liability was
7.60%. The projection of cash flows used to determine the discount rate assumed that plan member
contributions will be made at the current contribution rate and that the Tax Collector's contributions will
be made statutorily required rates, actuarially determined. Based on those assumptions, the pension
plans' fiduciary net position was projected to be available to make all projected future benefit payments
of current active and inactive employees. Therefore, the long-term expected rate of return on pension
plan investments was applied to all periods of projected benefit payments to determine the total pension
liability.
398
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 4 — PENSION PLAN - Continued
Florida Retirement System - Continued
Sensitivity of the Tax Collector's Proportionate Share of the Net Position Liability to Changes in the
Discount Rate for the Pension Plan: The following presents the Tax Collector's proportionate share of
the NPL (net pension liability) of the pension plan calculated using the discount rate of 7.60%. Also
presented is what the Tax Collector's proportionate share of the FRS plan NPL would be if it were
calculated using a discount rate that is 1% lower or 1% higher than the current rate:
Current Discount
1% Decrease 0..60%) Rate (7.60%) 1% Increase (8.60%)
Tax Collector's proportionate
share of NPL $ 3,072,365 $ 1,668,795 $ 500,509
Discount rate for the HIS Program: In general, the discount rate for calculating the pension liability is
equal to the single rate equivalent to discounting at the long-term expected rate of return for benefit
payments prior to the projected depletion date. Because the HIS Program is essentially funded on a pay-
as-you-go basis, the depletion date is considered to be immediate. The single equivalent discount rate is
equal to the municipal bond rate selected by the plan sponsor. The Bond Buyer General Obligation 20 -
Bond Municipal Bond Index was adopted as the applicable municipal bond index.
Sensitivity of the Tax Collector's Proportionate Share of the Net Position Liability to Changes in the
Discount Rate for the HIS Program: The following presents the Tax Collector's proportionate share of
the NPL (net pension liability) of the HIS Program calculated using the discount rate of 2.85%. Also
presented is what the Tax Collector's proportionate share of the HIS Program NPL would be if it were
calculated using a discount rate that is 1% lower or 1% higher than the current rate:
l% Decrease (1.85%)
Current Discount
Rate (2.85%) 1% Increase (3.85%)
Tax Collector's proportionate
share of NPL $ 731,935
$ 638,003 $ 560,046
Refer to the County -wide note for actuarial assumptions (including the investment rate of return),
pension liability on financial statements, and an explanation of pension expense components. The
pension liability is not reported in the financial statements of the Tax Collector since they are not
payable from available spendable resources. It is reported in the financial statements of the County by
the fund which normally pays the personnel service costs of the employee.
399
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 5 — OTHER POSTEMPLOYMENT BENEFITS
The Tax Collector participated in the Indian River County Other Postemployment Benefits Trust
(IRCOT). The Tax Collector paid their 2016.annual contribution of $74,070 which was their part of the
total contribution determined by the IRCOT actuary. Further information on the IRCOT can be found in
the County -wide financial statements and County notes.
NOTE 6 — 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 2016 at an annual cost of approximately $250,188.
Further details of this self-insurance program are discussed in the risk management note in the County-
wide financial statements.
NOTE 7 — LONG-TERM LIABILITIES
Changes in Long -Term Liabilities
The following is a schedule of changes in long-term liabilities as of September 30, 2016:
Accrued Compensated Absences
Beginning Ending
Balance Balance
10/01/15 Additions Deletions 09/30/16
$ 110,551 $ 32,416 $ 17,777 $ 125,190
Of the $125,190 liability for accrued compensated absences, management estimates that $1.6,235 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.
400
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2016
NOTE 8 — OPERATING LEASES
The Tax Collector has entered into noncancelable operating leases as lessee for office space and office
equipment. Lease expenditures totaled $116,252 for the fiscal year ended September 30, 2016..
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:
Year Amount
2017. $ 119,724
2018 65,284
2019 64,820
2020 66,765
2021 51,192
Total future minimum lease payments $ 367,785
401
Fkehmann
Rehmann Robson
5070 North Highway A1A
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
INDEPENDENT AUDITORS' 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
March 7, 2017
The Honorable Carole Jean Jordan
Tax Collector
Indian River County, Florida
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial statements contained in Government Auditing
Standards issued by the Comptroller General of the United States, the fund financial statements of the
major fund and the aggregate remaining fund information of the Indian River County, Florida Tax
Collector (the "Tax Collector"), as of and for the year ended September 30, 2016, which collectively
comprise the Tax Collector's fund financial statements and have issued our report thereon dated March
7, 2017.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Tax Collector's
internal control over financial reporting (internal control) to determine the audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the Tax
Collector's internal control. Accordingly, we do not express an opinion on the effectiveness of the Tax
Collector's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control such that there is a reasonable possibility that a
material misstatement of the entity's financial statements will not be prevented, or detected and
corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in
internal control that is less severe than a material weakness, yet important enough to merit attention
by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of
this section and was not designed to identify alt deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Tax Collector's financial statements are
free from 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
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The Honorable Carole Jean Jordan
Tax Collector
March 7, 2017
Page 2
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.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
Tax Collector's internal control or on compliance. This report is an integral part of an audit performed
in accordance with Government Auditing Standards in considering the entity's internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
403
Fkehmann
MANAGEMENT LETTER
March 7, 2017
The Honorable Carole Jean Jordan
Tax Collector
Indian River County, Florida
Report on the Financial Statements
Rehmann Robson
5070 North Highway A1A
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
We have audited the fund financial statements of the major fund and the aggregate remaining fund
information of the Indian River County, Florida Tax Collector (the "Tax Collector"), as of and for the
year ended September 30, 2016, which collectively comprise the Tax Collector's fund financial
statements and have issued our report thereon dated March 7, 2017.
Auditors' Responsibility
We conducted our audit 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; and Chapter 10.550, Rules of the Florida
Auditor General.
Other Reports and Schedule
We have issued our Independent Auditors' Report on Internal Control over Financial Reporting and on
Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance
with Government Auditing Standards; and Independent Accountants' Report on an examination
conducted in accordance with AICPA Professional Standards, Section 601, regarding compliance
requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those
reports, which are dated March 7, 2017, should be considered in conjunction with this management
letter.
Prior Audit Findings
Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not
corrective actions have been taken to address findings and recommendations made in the preceding
annual financial audit report. There were no findings or recommendations in the preceding annual
financial audit report.
Official Title and Legal Authority
Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal
authority for the primary government and each component unit of the reporting entity be disclosed in
this management letter, unless disclosed in the notes to the financial statements. This information is
disclosed in the notes to the financial statements.
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Other Matters
Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management
tetter any recommendations to improve financial management. In connection with our audit, we did
not have any such recommendations.
Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with
provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have
occurred, that have an effect on the financial statements that is less than material but which warrants
the attention of those charged with governance. In connection with our audit, we did not have any
such findings.
Purpose of this Letter
Our management letter is intended solely for the information and use of the Legislative Auditing
Committee, members of the Florida Senate and the Florida House of Representatives, the Florida
Auditor General, Federal and other granting agencies, the Tax Collector and applicable management
and is not intended to be and should not be used by anyone other than these specified parties.
405
Fkehmann
INDEPENDENT ACCOUNTANTS' REPORT
March 7, 2017
The Honorable Carole Jean Jordan
Tax Collector
Indian River County, Florida
Rehmann Robson
5070 North Highway A1A
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
We have examined the compliance of Indian River County, Florida Tax Collector (the "Tax
Collector") with Section 218.415, Florida Statutes, during the year ended September 30, 2016.
Management is responsible for compliance with those requirements. Our responsibility is to express an
opinion on the Tax Collector's compliance based on our examination.
Our examination was conducted in accordance with attestation standards established by the American
Institute of Certified Public Accountants and, accordingly, includes examining, on a test basis,
evidence about the Tax Collector's compliance with those requirements and performing such other
procedures as we considered necessary in the circumstances. We believe that our examination
provides a reasonable basis for our opinion. Our examination does not provide a legal determination on
the Tax Collector's compliance with specified requirements.
In our opinion, the Tax Collector complied, in all material respects, with the aforementioned
requirements for the year ended September 30, 2016.
This report is intended solely for the information and use of management, the Tax Collector, the Board
of County Commissioners and the Florida Auditor General and is not intended to be and should not be
used by anyone other than these specified parties.
Rehmann is an independent member of Nexia International.
CPAs & Consultants Wealth. Advisors Corporate Investigators
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INTERNATIONAL.