HomeMy WebLinkAbout2018-075RAIandnan River County
Florida
Comprehensive Annual
F inaanciaIl Report
For the Fiscal Year
October 1, 2016 through September 30, 2017
The cover picture features a nesting Loggerhead, the most common sea
turtle that utilizes Indian River County beaches for nesting each year
from March 1 - October 31. In order to protect our sea turtles, the
County created and initiated a Habitat Conservation Plan (HCP) in 2005
to ensure we have beautiful, clean, and healthy beaches for our turtles
to nest on and to increase the productivity of our beaches over the 30
year lifetime of this plan. Since 2013, Indian River County has been
documenting record numbers of nests each year and in 2017 our beach
incubated over 81000 nests laid by Loggerheads, Greens and
Leatherbacks. The HCP has allowed the County to expand its
conservation efforts into public education, beachfront light
management, and rescue efforts with the help of countless community
volunteers.
Cover photo is courtesy of Deanna DeRosia (Instagram (&sweet.dea.drawings).
INDIAN RIVER COUNTY, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR
OCTOBER 1, 2016
THROUGH
SEPTEMBER 30, 2017
Jeffrey R. Smith, CPA, CGFO, CGMA
Clerk of the Circuit Court and Comptroller
Prepared By:
Clerk of the Circuit Court Comptroller Division
Elissa Nagy, CPA, CGFO
Finance Director
Indian River County, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Fiscal Year Ended September 30, 2017
Board of County Commissioners as of September 30, 2017
Joseph E. Flescher
Chairman
Peter D. O'Bryan
Vice -Chairman
Susan Adams
Bob Solari
Tim Zorc
Current Board of County Commissioners (effective November 21, 2017)
Peter D. O'Bryan
Chairman
Bob Solari
Vice -Chairman
Susan Adams
Joseph E. Flescher
Tim Zorc
Constitutional Officers as of September 30, 2017
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 County Administrator
Deryl Loar
Sheriff
County Management
Stan Boling
Director of Community Development
Mike Smykowski
Budget Director
Vincent Burke
Director of Utilities
Carole Jean Jordan
Tax Collector
Dylan Reingold
County Attorney
Rich Szpyrka
Director of Public Works
John W. King
Director of Emergency Services
Indian River County, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS
Fiscal Year Ended September 30, 2017
INTRODUCTORY SECTION
LETTER OF TRANSMITTAL
Page
Number
ORGANIZATION CHART vii
CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE
IN FINANCIAL REPORTING viii
FINANCIAL SECTION
INDEPENDENT AUDITORS' REPORT
MANAGEMENT'S DISCUSSION AND ANALYSIS
BASIC FINANCIAL STATEMENTS:
30
Government -wide Financial Statements:
Statement of Net Position
21
Statement of Activities
23
Fund Financial Statements:
32
Balance Sheet - Governmental Funds
24
Reconciliation of Total Governmental Fund Balances to
33
Net Position of Governmental Activities
26
Statement of Revenues, Expenditures, and Changes in
34
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, 2017
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 108
Schedule of the County's Proportionate Share of the Net Pension Liability - Retiree Health
Insurance Subsidy (HIS) Program Defined Benefit Pension Plan 108
Schedule of the County's Contributions - FRS Defined Benefit Pension Plan 109
Schedule of the County's Contributions - HIS Defined Benefit Pension Plan 109
Schedule of Changes in Net OPEB Liability and Related Ratios 110
Schedule of OPEB Contributions 111
Notes to Schedule of OPEB Contributions 112
Schedule of Investment Returns Multiyear 113
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES:
Combining Balance Sheet - Nonmajor Governmental Funds
120
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances - Nonmajor Governmental Funds
128
Budgetary Comparison Schedules
136
Combining Statement of Net Position - Internal Service Funds
168
Combining Statement of Revenues, Expenses, and
Changes in Fund Net Position - Internal Service Funds
169
Combining Statement of Cash Flows - Internal Service Funds
170
Combining Statement of Changes in Assets and Liabilities - Agency Fund
174
Indian River County, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS- CONTINUED
Fiscal Year Ended September 30, 2017
STATISTICAL SECTION
Page
Number
SCHEDULE 1
Net Position by Component - Last Ten Fiscal Years
176
SCHEDULE 2
Changes in Net Position - Last Ten Fiscal Years
178
SCHEDULE 3
Fund Balances, Governmental Funds - Last Ten Fiscal Years
182
SCHEDULE 4
Changes in Fund Balances, Governmental Funds -
Last Ten Fiscal Years
184
SCHEDULE 5
Tax Revenues by Source, Governmental Funds -
Last Ten Fiscal Years
186
SCHEDULE 6
Assessed Value and Actual Value of Taxable Property -
Last Ten Fiscal Years
187
SCHEDULE 7
Property Tax Rates - Direct and Overlapping Tax Rates -
Last Ten Fiscal Years
188
SCHEDULE 8
Principal Property Taxpayers - Year 2017 and Year 2008
190
SCHEDULE 9
Property Tax Levies and Collections - Last Ten Fiscal Years
191
SCHEDULE 10
Ratios of Outstanding Debt by Type - Last Ten Fiscal Years
192
SCHEDULE 11
Ratio of Net General Bonded Debt Outstanding to Taxable Value
and Net Bonded Debt Per Capita - Last Ten Fiscal Years
194
SCHEDULE 12
Computation of Legal Debt Margin
195
SCHEDULE 13
Direct and Overlapping Governmental Activities Debt
196
SCHEDULE 14
Pledged Revenue Coverage - Water and Sewer Revenue Bonds -
Last Ten Fiscal Years
198
Indian River County, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS- CONTINUED
Fiscal Year Ended September 30, 2017
Page
Number
SCHEDULE 15 Demographic and Economic Statistics - Last Ten Years 200
SCHEDULE 16 Principal Employers - Year 2017 and Year 2008 201
SCHEDULE 17 Building Permits - Last Ten Fiscal Years 202
SCHEDULE 18 Operating Indicators by Function/Program - Last Ten Fiscal Years 204
SCHEDULE 19 Full Time Equivalent County Government Employees
by Function/Program - Last Ten Fiscal Years 208
SCHEDULE 20 Capital Asset Statistics by Function/Program - Last Ten Fiscal Years 210
SCHEDULE 21 Department of Utility Services - Historical Rate Structure -
Last Ten Fiscal Years 214
SCHEDULE 22 Water and Wastewater Customers - Last Ten Fiscal Years 215
SCHEDULE 23 Top 10 High Volume Customers of Utility Services 216
SCHEDULE 24 Capacity Charges - Utilities Department - Last Ten Fiscal Years 217
SCHEDULE 25 Pledged Revenues for Spring Training Facility Revenue Bonds, Series 2001 -
Last Ten Fiscal Years 218
Indian River County, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS- CONTINUED
Fiscal Year Ended September 30, 2017
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 219
County Management Letter
Independent Accountants' Report
Federal and State Grants:
221
223
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 224
Schedule of Expenditures of Federal Awards and State Projects
225
Notes to Schedule of Expenditures of Federal Awards and State Projects 230
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 232
Schedule of Findings and Questioned Costs
Summary Schedule of Prior Audit Findings
234
236
Impact Fee Affidavit 237
Indian River County, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS- CONTINUED
Fiscal Year Ended September 30, 2017
AUDITOR GENERAL REPORTS SECTION
Page
Number
BOARD OF COUNTY COMMISSIONERS
Independent Auditors' Report 240
Fund Financial Statements 242
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 316
Management Letter 318
Independent Accountants' Report 320
CLERK OF THE CIRCUIT COURT AND COMPTROLLER
Independent Auditors' Report 322
Fund Financial Statements 324
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 336
Management Letter 338
Independent Accountants' Report 340
PROPERTY APPRAISER
Independent Auditors' Report 342
Fund Financial Statements 344
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 352
Management Letter 354
Independent Accountants' Report 356
Indian River County, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS -CONTINUED
Fiscal Year Ended September 30, 2017
SHERIFF
Page
Number
Independent Auditors' Report 358
Fund Financial Statements 360
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 371
Management Letter 373
SUPERVISOR OF ELECTIONS
Independent Auditors' Report 376
Fund Financial Statements 378
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 388
Management Letter 390
TAX COLLECTOR
Independent Auditors' Report 394
Fund Financial Statements 396
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 408
Management Letter 410
Independent Accountants' Report 412
JEFFREY R. SMITH, CPA, CGFO, CGMA e-11 Clerk of Circuit Court & Comptroller
1801 27th Street
Nij Vero Beach, FL 32960
Telephone: (772) 226-1945
March 15, 2018
To the Citizens of Indian River County:
The Comprehensive Annual Financial Report of Indian River County, Florida for the fiscal year ended
September 30, 2017, 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 Comptroller Division 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
Comptroller Division 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 (Rebmann Robson LLC) on the County's financial statements for the year ended
September 30, 2017 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.
1
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. 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.
ii
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 148,962 was a 1.74% increase over the previous year.
While the population of the County has been steadily increasing, so has the median age of residents
living here. Indian River County is ranked seventh among Florida counties by percent of population
ages 65 and older with 29.2%. 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 Medical Center and Indian River County government. The unemployment rate
has dramatically decreased from 6.7% in 2016 to 4.6% in 2017.
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 $14.3 billion in 2016 to $16.3 billion in 2017. Construction activity saw a
significant increase with 13% more building permits issued for new construction in 2017 over 2016.
Please see Statistical Schedules 6 and 17 for more information.
The citrus industry in Indian River County saw a decrease in production of 40% from 6.0 million boxes
in 2016 to 4.3 million in 2017. This ranked the County 8th among all Florida counties in total citrus
production. The acreage dedicated to citrus production within the County also saw a 44% decrease from
34,151 acres in 2016 to 23,761 acres in 2017, ranking Indian River County 7th among all Florida
counties.
iii
Lone Term Financial Planning and Maior 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 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:
♦ County Road 512 Resurfacing - The $3.5 million project consists of dual resurfacing of the
westbound lanes from Roseland Road to US Highway 1 and the eastbound lanes from Easy Street to
US Highway 1. The project requires the use of the full depth reclamation process which shortens the
duration of the construction process, but requires special expertise and equipment. A Small County
Outreach Program (SCOP) Grant from the Florida Department of Transportation will fund $2.4
million of the project with the remainder coming from gas taxes.
♦ Osprey Acres Floway and Nature Preserve - The 83.14 acres of undeveloped land purchased east of
Osprey Marsh Treatment Facility will serve to create a pollutant removal system (stormwater park)
that will remove nitrogen and phosphorus from Osprey Marsh's outflow water and increase the
County's ability to meet proposed total maximum daily loads (TMDL) for nutrients discharged into
the Indian River Lagoon. The cost for construction is estimated at $7.5 million and will be funded
with an FDEP TMDL Grant, St. John's River Water Management District Cost -Share Grant, Florida
House Appropriations Grant and optional one cent sales tax.
♦ North County Commercial Septic to Sewer - The $3 million project will construct a gravity sewer
system to service an area that has a land use designation of commercial properties on septic. The
area currently has thirty eight (38) existing structures with a total of sixty one (61) parcels. Indian
River County Department of Utility Services (IRCDUS) is constructing a new gravity sanitary sewer
system and sections of water main to serve commercial areas along US Highway #1 and in the City
of Sebastian. Customer assessments, optional one cent sales tax and a St. John's River Water
Management District Cost -Share Grant will provide the funding.
♦ South Countv Water Treatment Plant Well Construction and Rehabilitation - The Indian River
County Department of Utility Services currently owns and operates six (#1-6) Floridan supply wells
that are the source water for the South County Reverse Osmosis Water Treatment Facility. This
project consists of the construction of a new well #7, the rehabilitation of wells 2, 3 and 5 and the
replacement of well #4 at a cost of $2.5 million from the Utilities operating fund.
♦ 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.
iv
Major projects or initiatives that were completed during fiscal year 2017 are listed below:
• GoLine Bus Transfer Hub - GoLine is the Indian River County public transportation system with bus
service on 14 fixed routes throughout the County. The main hub facility was completed at a cost of
$1.9 million.
• Shooting Range Skeet & Trap Facility Improvements - The $1.7 million improvements at the Indian
River County Shooting Range consisted of national competition skeet and trap fields, hi/low trap
houses, and a 15 station sporting clays course.
•
Sheriffs Helicopter Hangar & Helipad - The Sheriff Department's on-site helicopter hangar building
and helipad was constructed at a cost of $2.3 million.
• Sebastian Corners Retail Center - The 2.35 acre property located on US Highway 1 in Sebastian was
purchased for $2.7 million to relocate the North County offices of the Clerk of the Circuit Court,
Property Appraiser, Tax Collector, Utilities Department and Veteran's Services.
Relevant Financial Policies
In accordance with Section 218.415, Florida Statutes, the County adopted an investment policy, which
guides the investment of County surplus funds. This policy establishes investment objectives, maturity
and liquidity requirements, portfolio composition, risk and diversification requirements, and authorized
investments. The primary objectives of investment activities are to preserve capital and maintain
sufficient liquidity to meet anticipated cash flow needs. The secondary objective is to obtain
competitive returns on the investment of County surplus funds.
On September 23, 2008, the County established the OPEB (Other Postemployment Benefits) Trust. An
OPEB investment policy was approved by the Board of County Commissioners in February 2009. The
objective was to establish an advisory committee and to provide short-term and long-term investment
guidelines. This policy also outlines the same criteria as noted in the County's investment policy, as
well as including performance measures. The County's policy is to fund the annual OPEB obligation
monthly.
The County's goal is to maintain an overall fund balance equal to 30% of the annual budget in all of its
taxing funds, which provides a three month cushion for operating expenses. The three month reserve is
necessary due to the timing of property tax levies in the State of Florida. Although the fiscal year begins
in October, property tax monies are not typically received until mid to late December, which would
require the County to operate in a deficit position for the first two months of the fiscal year without this
reserve. Reserve funds are needed in order to allow the County to respond to events without facing
serious financial burdens. County policy is to maintain fund balance levels and prohibit the use of fund
balance to fund recurring expenditures. Information on the County's fund balance policy can be found
in County Note 16.
During fiscal year 2017, the County implemented Government Accounting Standards Board (GASB)
Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other than Pension Plans.
The objective of this Statement is to improve the usefulness of information about postemployment
benefits other than pensions (other postemployment benefits or OPEB) included in the general purpose
external financial reports of state and local governmental OPEB plans for making decisions and
assessing accountability.
u
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, 2016. This was
the 34th 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, 2016. This was the second consecutive year
the County has received this award. 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 2016-2017 fiscal year. This was the 26th 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 Comptroller Division 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
vi
Indian River County Board of County Commissioners Departmental Organization
Residents of Indian River County
Clerk of Circuit
Court
Finance
Department
Assistant
County
Administrator/
General Services
Golf Course
Parks and
Recreation
Veterans
Service
Shooting Range
Libraries
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Human Services
Sheriff Supervisor of Board of
Elections County
Commissioners
Public
Engineering
Road &
Bridge
Traffic
Fleet
Management
Secondary Road
Const.
Stormwater
Coastal
Engineering
County Administrator
Utilities
Services
Wastewater
Treatment
Water
Production
Emergency
Services
General & '
Engineering
Customer
Service
Wastewater
Collection
Water
Distribution
Osprey Marsh
Facilities
Management
Solid Waste
Disposal District
Telecomm.
V11
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Property
Appraiser
County Attorney
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Tax
Collector
Assistant to Admin.
°�, ,, Geographic
Office Info Systems
Community Human Office of
Development Resources Mgmt. & Budget
Emergency Planning Risk
Management Division Management
Fire/Rescue Envir. Planning &
Code Enforcement Computer
Services
Radiological
Emergency Metropolitan
Preparedness Planning Org.
Purchasing
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_ Emergency IRCLHAP /
Base Grant SHIP Program
Mailroom
' Switchboard
Animal Building
Control Division
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911
Coordinator ; Ag
Extension
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Soil & Water
Conservation
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Rental Assistance
IIJ
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, 2016
Executive Director/CEO
R\ehmann
INDEPENDENT AUDITORS' REPORT
March 14, 2018
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 the Indian River
County, Florida (the "County"), as of and for the year ended September 30, 2017, 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 of 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.
Rebmann is an independent member of Nexia International.
CPAs & Consultants Wealth Advisors Corporate Investigators
A member of
Nexia
Internationa
The Honorable Board of County Commissioners
Indian River County, Florida
March 14, 2018
Page 2
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of governmental activities, business -type activities, each major fund and
the aggregate remaining fund information of Indian River County, Florida as of September 30, 2017,
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.
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 postemployment benefit plans, as
listed in the table of contents, be presented by management 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 all 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
Indian River County, Florida
March 14, 2018
Page 3
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March 14,
2018, 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 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 County's
internal control over financial reporting and compliance.
4441e, W")A- LLC
�OR
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2017
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, 2017. 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 2016.
• The assets and deferred outflows of resources of the County exceeded its liabilities and deferred
inflows by $1,000.5 million (net position). Of this amount, $105.7 million (unrestricted net
position) may be used to meet the government's ongoing obligations to its citizens and creditors.
Further information can be found on page 8.
• The government's total net position increased by $22.3 million or 2.3%. Governmental activities
accounted for $20.3 million of this increase and business -type activities accounted for the
remaining $2.0 million. Further information can be found on page 10.
• Governmental activities expenses reflected a 4.4% increase ($165.6 million in 2016 to $172.9
million in 2017) and business -type activities expenses reflected a 11.0% increase ($53.4 million
in 2016 to $59.3 million in 2017). Further information can be found on page 10.
• Unassigned fund balance for the general fund was $43.3 million, or a 5.7% decrease from the
prior year general fund unassigned balance of $45.9 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.
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2017
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.
3
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2017
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 115-165 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 167-171 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 47-107 of this report.
7
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2017
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
108-113 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 $1,000.5 million at the close of the fiscal year.
Indian River County Net Position (In Millions)
Net position:
Net investment in capital assets
Governmental
Business -type
206.5 744.7
739.8
Restricted
Activities
132.1 -
Activities
Total
Unrestricted
(1.3)
2017
2016
2017
2016
2017
2016
Current and other assets
$ 257.7 $
236.2 $
134.9 $
125.6 $
392.6 $
361.8
Capital assets
564.4
559.3
222.8
230.5
787.2
789.8
Total assets
822.1
795.5
357.7
356.1
1,179.8
1,151.6
Deferred outflows of resources
54.4
43.9
4.7
3.9
59.1
47.8
Other liabilities
132.9
114.7
16.1
13.8
149.0
128.5
Long-term liabilities
43.7
48.5
37.0
39.1
80.7
87.6
Total liabilities
176.6
163.2
53.1
52.9
229.7
216.1
Deferred inflows of resources
8.2
4.8
0.5
0.3
8.7
5.1
Net position:
Net investment in capital assets
542.9
533.3 201.8
206.5 744.7
739.8
Restricted
150.1
132.1 -
- 150.1
132.1
Unrestricted
(1.3)
6.0 107.0
100.3 105.7
106.3
Total net position
$ 691.7 $
671.4 $ 308.8 $
306.8 $ 1,000.5 $
978.2
Governmental Activities
In governmental activities, the increase in restricted net position was mainly due to an increase in
revenues for state and federal grants, including hurricane reimbursements, and insurance proceeds. The
increase in net investment in capital assets was a result of completed construction projects and decreased
outstanding debt. The decrease in unrestricted net position is due to an increase in the net pension
liability.
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2017
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 Millions)
September 30, 2016 and 2017
net investment in capital assets
2016
restricted
■ 2017
unrestricted
0 200 400 600 800
By far, the largest portion of the County's net position (74% or $744.7 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 (15% or $150.1 million) represents resources that are subject to
external restrictions on how they may be used. The remaining balance of the unrestricted net position
($105.7 million) may be used to meet the government's ongoing obligations to its citizens and creditors.
so
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2017
Indian River County Changes in Net Position (In Millions)
Governmental Business -type
Activities Activities Total
Revenues:
Program revenues:
Charges for services
Operating grants/contributions
Capital grants/contributions
General revenues:
Property taxes
Sales taxes
Franchise fees
Other
Total revenues
Expenses:
General government
Public safety
Physical environment
Transportation
Economic environment
Human services
Culture/recreation
Court related
Interest and fiscal charges
Water and sewer
Solid waste
Golf course
Building
Total expenses
Increase (decrease) in net position before transfers
Transfers
Increase (decrease) in net position
Net position - October 1, 2016
Net position - September 30, 2017
2017
2016
2017
2016
2017
2016
$ 25.3 $
24.9 $
52.8
$ 51.0 $
78.1 $
75.9
32.1
24.6
1.5
-
33.6
24.6
6.8
6.0
6.1
5.0
12.9
11.0
90.2
84.7
-
-
90.2
84.7
25.6
24.4
-
-
25.6
24.4
9.1
9.3
-
-
9.1
9.3
4.1
6.4
0.9
0.8
5.0
7.2
193.2
180.3
61.3
56.8
254.5
237.1
25.9
27.5
-
-
25.9
27.5
83.3
77.6
-
-
83.3
77.6
2.3
1.4
-
-
2.3
1.4
28.9
28.2
-
-
28.9
28.2
0.4
0.4
-
-
0.4
0.4
8.0
7.8
-
-
8.0
7.8
16.0
14.7
-
-
16.0
14.7
7.3
7.1
-
-
7.3
7.1
0.8
0.9
-
-
0.8
0.9
-
-
38.6
35.4
38.6
35.4
-
-
14.5
12.7
14.5
12.7
-
-
2.7
2.6
2.7
2.6
-
-
3.5
2.7
3.5
2.7
172.9
165.6
59.3
53.4
232.2
219.0
20.3
14.7
2.0
3.4
22.3
18.1
(0.08)
0.8
0.08
(0.8)
-
-
20.3
15.5
2.0
2.6
22.3
18.1
671.4
655.9
306.8
304.2
978.2
960.1
$ 691.7 $
671.4 $
308.8
$ 306.8 $
1,000.5 $
978.2
10
100
90
80
70
60
50
40
30
20
10
0
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2017
Revenues By Source (In Millions)
Governmental Activities
Fiscal Years 2016 and 2017
Governmental Activities
• Overall program revenues increased $8.7 million.
■ FY 2016
■ FY 2017
1) Operating grants and contributions increased $7.5 million due to hurricane related grant
reimbursements and insurance recoveries.
2) Capital grants and contributions increased $0.8 million due to grant reimbursements for the
transit system and hub.
• Overall general revenues increased by $4.2 million mainly due to a combination of increased
property tax values and increases in the General and Emergency Services District funds millage
rates (increase of $5.5 million or 6.5%) which was offset by a decrease in other revenue ($2.3
million) mainly due to receipt of a legal settlement and State joint road project reimbursement in
the prior fiscal year.
11
90
80
70
60
50
40
30
20
10
0
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2017
Expenses By Function (In Millions)
Governmental Activities
Fiscal Years 2016 and 2017
IN
ell
4 CIO
q
■ FY 2016
■ FY 2017
• The governmental activities expenses were $7.3 million higher in 2017 than in 2016. Major
increases included $5.7 million in public safety expenses due to an increase in salaries and
benefits ($1.5 million) and an increase in the allocated share of pension expense. In addition,
there was $0.9 million in governmental activities related expenses due to hurricanes Matthew and
Irma.
• Governmental activities expenses were charged $8.4 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 $0.8 million, public safety $6.5 million,
physical environment $0.03 million, transportation $0.4 million, economic environment $0.008
million, human services $0.03 million, culture and recreation $0.3 million, and court related $0.3
million.
12
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2017
Business -type Activities
Business -type activities net position increased by $2.0 million. Key elements of this increase are as
follows:
• Overall program revenues increased $4.4 million
1) Charges for services increased by $1.8 million or 3%. A gradual improvement in the local
economy has attributed to the following increases over 2016 revenues: water and sewer
charges increased by $1.0 million or 3% and the building revenues increased by $0.3 million
or 10%.
2) Operating grants and contributions were $1.5 million higher in 2017 than in 2016. This was
mainly due to grant reimbursements and insurance recoveries related to hurricanes Matthew
and Irma.
• Overall expenses were $5.9 million or 11 % higher in 2017 than in 2016. The water and sewer
utilities expenses were $3.2 million or about 9% higher in 2017 than in 2016. The solid waste
expenses were $1.8 million or 14% higher in 2017 than in 2016 due to hurricane debris removal
costs. The golf course had $0.1 million or 4% higher expenses in 2017 than in 2016 due to
increased landscape, depreciation and hurricane related costs. The building department had $0.8
million or 30% higher expenses in 2017 than in 2016 due to staffing increases required to meet
service level needs of developers and builders.
• Business -type activities expenses were charged $0.6 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 $0.4 million, solid waste $0.03 million, golf
course $0.03 million, and building $0.1 million.
FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS
As noted earlier, the County uses fund accounting to ensure and demonstrate compliance with finance
related legal requirements.
Governmental funds
Unassigned fund balance may serve as a useful measure of the County's net resources available for
spending at the end of the fiscal year. Approximately 23% of this total amount ($43.0 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, 2017
The remainder of fund balance is presented in classifications that comprise a hierarchy based primarily
on the extent to which the County is bound to honor constraints on the specific purposes for which
amounts in those funds can be spent. The County had fund balances in 1) a nonspendable category for
inventories, prepaid items, and advances to other funds ($1.4 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 ($135.0
million), 3) a committed category for constraints imposed by approval of ordinances and contracts by the
Board of County Commissioners ($3.2 million), and 4) an assigned category for constraints by the
County's intent to use for specific purposes ($7.4 million).
The two largest restricted amounts are in the Impact Fees Fund with a $15.1 million restricted fund
balance and the Optional Sales Tax Fund with a $75.3 million restricted fund balance. Sixty-five percent
of the Impact Fees Fund ($9.8 million) and twenty percent ($14.8 million) of the Optional Sales Tax
Fund is slated for major road expansions throughout the County in fiscal year 2018. The Optional Sales
Tax Fund is a principal funding source in the five year Transportation Capital Improvement Program.
The County's governmental funds reported a combined fund balance of $190.0 million, which is an
increase of $5.6 million over the prior year of $184.4 million. Contributing factors to the $5.6 million
increase in fund balance are:
• Fund balance in the General Fund decreased by $1.0 million. This was due to transit related
expenditures to be reimbursed from a federal grant in fiscal year 2018.
• Fund balance in the Emergency Services District Fund increased by $1.7 million mainly due to an
increase in tax revenues because of increasing home values.
• Fund balance in the Optional Sales Tax Fund increased by $4.2 million due to a $0.8 million
increase in sales tax revenues and reduced expenditures for projects to be completed in future
fiscal years.
Proprietary funds
Unrestricted net position at the end of the year amounted to $16.8 million in the Solid Waste Disposal
District (SWDD) Fund, ($1.5) million in the Golf Course Fund, $6.1 million in the County Building
Fund, and $85.6 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, 2017
GENERAL FUND BUDGETARY HIGHLIGHTS
During the year there was an $8.7 million increase in operating appropriations between the original and
final amended budget. The main components of the increase are as follows:
• $4.8 million grants appropriations and prior year rollovers for the Senior Resource Association
(SRA) to provide County -wide public transportation
• $0.5 million for All Aboard Florida legal and professional services
• $0.3 million in building and equipment maintenance including replacement carpeting at the
library
• $0.6 million in salary and benefit increases due to hurricane -related overtime and $0.2 million in
hurricane related operating expenses
Actual expenditures were $4.2 million lower than anticipated for the following reasons:
• $1.0 million in SRA grant costs not yet expended
• $0.4 million in unspent salary and benefits expenditures
• $1.0 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, 2017, amounts to $787.2 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
Land
Right-of-way
Buildings and improvements
Equipment
Intangibles
Infrastructure
Construction in progress
Total
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2017
Indian River County Capital Assets
(Net of Depreciation, In Millions)
Governmental
Activities
2017 2016
$ 134.5 $
133.8 $
58.6
57.6
162.2
158.1
19.8
16.5
2.7
2.7
156.2
166.8
2!1 n
11 1
Business -type
Activities
Total
2017 2016
2017
2016
27.5 $ 27.5 $
162.0 $
161.3
- -
58.6
57.6
186.0 195.3
348.2
353.4
3.7 3.3
23.5
19.8
2.0 2.1
4.7
4.8
- -
156.2
166.8
2A 7Z
2A n
1A f)
S 564.4 S 559.2 S 222.8 S 230.5 S 787.2 S 789.7
Governmental activities had the following major increases during the fiscal year:
• An increase in equipment primarily due to the purchase of new voting equipment ($0.9 million)
and fire rescue vehicles and equipment ($2.4 million).
• An increase in construction in progress due to the 800mhz P25 compliance project ($2.1 million),
Fire Station #14 construction ($2.0 million) and various road and sidewalk projects ($2.6 million).
Business -type activities only major decrease occurred in buildings and improvements as a result of
increasing depreciation on existing assets.
2CI%
1%
3%
Capital Assets, Net
Total Primary Government
September 30, 2017
4D
° 21%
■ Land
■ Right of Way
■ Buildings and Improvements
■ Equipment
■ Intangibles
■ Infrastructure
Construction In Progress
Additional information on the capital assets can be found in Note 5 on pages 67-69 of this report.
16
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2017
Debt Administration — Long-term debt
At the end of the current fiscal year, the County had total debt outstanding of $43.9 million. Of this
amount, $15.7 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)
General Obligation Debt:
Limited General Oblig. Note, Series 2015
Revenue Bonds/Notes:
Spring Training Facility, Series 2001
Water and Sewer Rev Note, Series 2015
Water and Sewer Ref. Rev., Series 2009
Total
Governmental Business -type
Activities Activities
2017 2016 2017 2016
Total
2017 2016
$ 15.7 $ 19.7 $ - $ - $ 15.7 $
6.2 6.7 - - 6.2
- - 5.2 6.2 5.2
- - 16.8 19.0 16.8
$ 21.9$ 26.4$ 22.0$ 25.2$ 43.9$
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
19.7
6.7
6.2
19.0
51.6
The constant goal of local governments is to provide high-quality services at a reasonable cost.
Throughout the Great Recession, Indian River County government worked very hard to continue to bring
out additional organizational efficiencies, as taxable values plummeted and millage rates were held
constant to reduce the burden on the taxpayer.
As the local economy recovers from the downturn, there is ongoing pressure to increase service levels,
however, Indian River County continues to be vigilant with taxpayer dollars in good economic times as
was done during the downturn.
Maintaining a safe community with strong emergency services is a requirement for all residents. Indian
River County has always placed a primary emphasis on funding public safety as this is a fundamental
service provided by local government. The FY 2017/2018 budget promotes continued emphasis on public
safety through: increased funding of law enforcement, the opening of a new fire station, continued
funding of capital equipment deferred during the downturn, addressing the responsiveness of
development review and ensuring that new developments are built to proper specifications, and also
addressing single source dependencies within the organization that could impact overall service delivery
to the public.
17
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2017
The total FY 2017/2018 adopted budged is $328,340,393, a decrease of $18,072,278 or 5.22% from the
FY 2016/2017 mid -year amended budget, however, this is still 30.5% below the approved FY 2006/2007
amount of $472,420,328.
For FY 2017/2018 the tax roll is increasing 7.6%. Overall, the countywide millage rate is increasing by
1.28%; this is reflective of the General Fund millage rate increasing by 0.0657 mills or 1.96%, offset by a
5.98% reduction in the Land Acquisition Bond millage. The M.S.T.U. Fund millage rate of 1.0733
remains the same as the current year. The Emergency Services District millage is increasing 2.80%, due
primarily to the addition of a fire rescue station and replacement capital equipment.
There are proposed changes in solid waste fees. Proposed residential assessment rates are increasing by
$6.49 to $109.10 per Equivalent Residential Unit. Commercial rates are increasing by $2.12 to $37.67
per Waste Generation Unit (W.G.U.). The proposed readiness -to -use fee is $21.59 per W.G.U. an
increase of $1.10 from last fiscal year. The rate increase is driven by a $770,000 increase in the cost to
construct, update, and maintain closed landfill cells. There are no increases in water and sewer rates.
The largest individual expense in the budget is personnel services. In total, 65.92 additional full-time
(FT) positions are proposed for FY 2017/2018. BCC departments are increasing 32 full-time positions,
while constitutional officers show a net increase of 33.92 positions. This results in an additional cost of
$2,220,217 (BCC only). Seventeen of these positions are needed to staff the new fire station. Five
positions are required to address development review and three positions are proposed to address single
source dependencies in key operational units.
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: Comptroller Division
1801 27th Street
Vero Beach, FL 32960
IN
BASIC FINANCIAL STATEMENTS
19
R
20
Indian River County, Florida
Statement of Net Position
September 30, 2017
The accompanying notes are an integral part of the financial statements.
21
Governmental
Business -type
Activities
Activities
Total
ASSETS
Current assets:
Cash and investments
$ 219,045,124 $
69,597,513 $
288,642,637
Accounts receivable - net
8,846,162
3,514,293
12,360,455
Internal balances
1,126,389
(1,126,389)
-
Due from other governments
11,506,049
1,532,330
13,038,379
Interest receivable
570,678
657,574
1,228,252
Inventories
340,329
1,203,135
1,543,464
Prepaid expenses
1,413,015
117,377
1,530,392
Current restricted assets:
Cash and investments
6,072,867
52,292,146
58,365,013
Total current assets
248,920,613
127,787,979
376,708,592
Non-current assets:
Net other postemployment benefits asset
8,513,836
-
8,513,836
Capital assets - non -depreciable
228,312,967
32,842,544
261,155,511
Capital assets - depreciable
671,008,272
471,989,722
1,142,997,994
Capital assets - accumulated depreciation
(334,895,161)
(282,063,707)
(616,958,868)
Non-current restricted assets:
Special assessments receivable
191,266
399,299
590,565
Impact fees receivable
-
555,355
555,355
Liens receivable
6,261;112
6,2_61,112
Total non-current assets
573,131,180
229,984,325
803,115,505
Total assets
822,051,793
357,772,304
1,179,824,097
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions
54,067,751
3,661,695
57,729,446
Deferred amounts on refunding
375,826
1,037,380
1,413,206
Total deferred outflows of resources
54_,443,577
4,699,075
59,142,652
LIABILITIES
Current liabilities (payable from current assets):
Accounts payable
10,350,353
4,185,922
14,536,275
Retainage payable
-
30,430
30,430
Claims payable
2,763,000
-
2,763,000
Due to other governments
404,246
72,878
477,124
Other deposits held in escrow
21,710
1,000
22,710
Unearned revenues
640,851
39,348
680,199
Accrued compensated absences
6,179,046
717,964
6,897,010
Pollution remediation costs payable
90,207
-
90,207
Current liabilities (payable from current restricted assets):
Accounts payable
-
142,012
142,012
Retainage payable
736,187
83,068
819,255
Accrued interest payable
-
72,242
72,242
Customer deposits
628,680
3,260,673
3,889,353
Notes payable
4,158,000
1,007,000
5,165,000
Closure and maintenance costs payable
-
9,270,090
9,270,090
Bonds payable
550,000
2,100,000
2,650,000
Total current liabilities
26,522,280
20,982,627
47,504,907
Non-current liabilities:
Accrued compensated absences
5,242,483
219,070
5,461,553
Pollution remediation costs payable
2,029,493
-
2,029,493
Claims payable
5,492,000
-
5,492,000
Net pension liability
120,174,990
8,254,956
128,429,946
Notes payable
11,495,000
4,199,000
15,694,000
Closure and maintenance costs payable
-
4,739,646
4,739,646
Bonds payable, net of premium and discount
5,665,000
14,725,534
20,390,534
Total non-current liabilities
150,098,966
32,138,206
182,237,172
Total liabilities
176,621,246
53,120,833
229,742,079
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions
8,158,343
528,317
8,686,660
NET POSITION
Net investment in capital assets
542,933,904
201,774,405
744,708,309
Restricted for:
Transportation/road projects
25,990,131
-
25,990,131
Public safety
15,252,390
15,252,390
Court related costs
2,405,030
2,405,030
Housing assistance
1,245,301
1,245,301
Capital projects
79,625,137
79,625,137
Beach renourishment
13,438,501
13,438,501
Culture/recreation
6,620,049
6,620,049
Debt service
3,853,146
3,853,146
Environmental conservation/preservation
174,304
-
174,304
Special assessment projects
1,528,609
-
1,528,609
Unrestricted (deficit)
(1,350,721)
107,047,824
105,697,103
Total net position
$ 691,715 781 $
308 822,229 $
1,000,538,010
The accompanying notes are an integral part of the financial statements.
21
�N
�(I
13
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
Indian River County, Florida
Statement of Activities
For the Year Ended September 30, 2017
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
85,572,692
85,572,692
4,619,804
Net (Expense) Revenue and
4,619,804
25,564,904
Program Revenues
25,564,904
Changes
in Net Position
9,130,133
1,474,698
Operating
Capital
2,694,082
37,285
2,731,367
(82,667)
Charges for
Grants and
Grants and
Governmental
Business -type
20,356,482
Expenses
Services
Contributions
Contributions
Activities
Activities
Total
$ 25,936,632 $
6,436,467
$ 15,931,634 $
998,109
$ (2,570,422) $
$ (2,570,422)
83,312,452
8,557,148
1,860,678
815,785
(72,078,841)
(72,078,841)
2,312,036
9,650
-
74,289
(2,228,097)
(2,228,097)
28,844,114
4,139,569
9,484,990
1,357,498
(13,862,057)
(13,862,057)
439,460
-
-
-
(439,460)
(439,460)
8,030,927
201,484
4,045,324
34,563
(3,749,556)
(3,749,556)
16,000,837
2,723,416
661,589
3,540,286
(9,075,546)
(9,075,546)
7,241,707
3,214,658
177,500
-
(3,849,549)
(3,849,549)
763,636
-
-
-
(763,636)
(763,636)
172,881,801
25,282,392
32,161,715
6,820,530
(108,617,164)
108,617,164)
38,609,232
32,020,230
368,395
6,108,117
(112,490)
(112,490)
14,542,100
13,784,379
1,134,593
-
376,872
376,872
2,693,389
3,219,311
15,215
541,137
541,137
3,504,086
3,742,659
5,428
-
244,001
244,001
59,348,807
52,766,579
1,523,631
6,108,117
1,049,520
1,049,520
$ 232;230,608 $
78,048,971
$ 33,685,346 $
12,928,647
X108,617,164)
1,049,520
(107,567,644)
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
85,572,692
85,572,692
4,619,804
4,619,804
25,564,904
25,564,904
9,130,133
9,130,133
1,474,698
818,490
2,293,188
2,694,082
37,285
2,731,367
(82,667)
82,667
-
128,973,646
938,442
129,912,088
20,356,482
1,987,962
22,344,444
671,359,299
306,834,267
978,193,566
$ 691,715,781 $
308,822,229 $
1,000,538,010
The accompanying notes are an integral part of the financial statements.
23
Indian River County, Florida
Balance Sheet
Governmental Funds
September 30, 2017
ASSETS
Cash and investments
Accounts receivable
Special assessments receivable
Due from other funds
Due from other governments
Interest receivable
Inventories
Prepaid items
Advances to other funds
Total assets
LIABILITIES
Accounts payable
Retainage payable
Due to other funds
Due to other governments
Unearned revenues
Other deposits
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - special assessments
Unavailable revenue - ambulance services
Unavailable revenue - insurance recoveries
Unavailable revenue - state and federal grants
Total deferred inflows of resources
FUND BALANCES
Nonspendable:
Inventories
Prepaid items
Advances to other funds
Restricted for:
Transportation/road improvements
Court -related costs and improvements
Housing assistance
Law enforcement/public safety
Fire/emergency services
Tourism -related activities
Beach renourishment
Boating related projects
Library services
Land acquisition
Stormwater, street lighting, and other special assessments
Voting/election activities
Debt service
Capital projects
Dodgertown repairs/improvements
Parks/recreational projects
Committed to:
Economic incentives
Environmental conservation/preservation
Law enforcement/public safety
Library services
Parks/recreational projects
Assigned to:
Law enforcement/public safety
Transportation/road improvements
Unassigned
Total fund balances
Total liabilities, deferred inflows and fund balances
Secondary
Impact Roads
General Fees Construction
$ 48,876,081 $
15,542,869 $
11,295,658
1,115,716
-
-
514,073
-
-
5,252,231
64,063
1,925,293
62,521
19,144
14,194
113,624
-
-
158,148
-
912,103
-
-
57,004,497 $
15,626,076 $
13,235,145
$ 3,300,679 $ 320,229 $ 1,585,439
- 146,606 261,435
839,423 - -
324,205 72,820
559,309 -
635,695 - -
5,659,311 539,655 1,846,874
69,829 -
3,854,908 1,507,505
3,924,737 1,507,505
113,624
158,148 -
912,103
43,334,507 - -
47,420,449 15,086,421 9,880,766
$ 57,004,497 $ 15,626,076 $ 13,235,145
The accompanying notes are an integral part of the financial statements.
24
10,642,241 9,880,766
429,669
48,575
763,327
970,691
1,246,278
2,231,918
1,297,240
-
7,010
224,517
127,022
43,334,507 - -
47,420,449 15,086,421 9,880,766
$ 57,004,497 $ 15,626,076 $ 13,235,145
The accompanying notes are an integral part of the financial statements.
24
$ 801,395 $ 1,143,638 $ 2,030,455 $ 868,982 $ 10,050,817
- - 302,096 26,050 736,187
- - - 175,000 1,014,423
- 7,221 404,246
- 20,315 61,227 640,851
- - 14,695 650,390
801,395 1,163,953 2,332,551 1,153,175 13,496,914
350,953
Emergency
Optional
Other
Total
- 2,380,217 2,505,884 5,216,211
Services
Sales
Governmental
Governmental
Transportation
District
Tax
Funds
Funds
1,062,233
87
763,414
- 100,015
100,015
$ 7,749,242 $
8,542,894 $
75,736,067
$ 27,793,994
$ 195,536,805
263,526
2,205,477
2,380,217
2,630,667
8,595,603
191,266
-
-
-
191,266
-
334,113
71158
62,165
917,509
632,725
487,980
2,022,792
1,049,365
11,434,449
169,032
11,609
92,953
28,262
397,715
-
-
-
23,654
137,278
1,28566,496
-
126,115
352,044
-
-
-
912,103
$ 9,007,076 $
11,648,569 $
80,239,187
$ 31,714,222
$ 218,474,772
$ 801,395 $ 1,143,638 $ 2,030,455 $ 868,982 $ 10,050,817
- - 302,096 26,050 736,187
- - - 175,000 1,014,423
- 7,221 404,246
- 20,315 61,227 640,851
- - 14,695 650,390
801,395 1,163,953 2,332,551 1,153,175 13,496,914
350,953
- 350,953
-
2,203,636 - - 2,203,636
260,281
- 2,380,217 2,505,884 5,216,211
299,880
487,980 204,027 875,069 7,229,369
911,114
2,691,616 2,584,244 3,380,953 15,000,169
1,285 66,496
23,654 137,278
126,115 352,044
- 912,103
- - -
20,523,007
- 2,301,646
2,301,646
- 1,244,116
1,244,116
- 3,809,522
4,239,191
7,726,504 -
7,775,079
- 735,959
735,959
10,93 8,501
10,93 8,501
1,062,233
1,062,233
87
763,414
- 100,015
100,015
1,528,609
1,528,609
3,797
3,797
- 3,853,146
3,853,146
75,322,392 -
76,293,083
- 120,911
120,911
-
3,478,196
-
1,297,240
1,239,082
1,239,082
- 276,135
283,145
- -
224,517
- -
127,022
- 107,108 107,108
7,293,282 - - 7,293,282
- - (290,542) 43,043,965
7,294,567 7,793,000 75,322,392 27,180,094 189,977,689
$ 9,007,076 $ 11,648,569 $ 80,239,187 $ 31,714,222 $ 218,474,772
25
Indian River County, Florida
Reconciliation of Total Governmental Fund Balances
to Net Position of Governmental Activities
September 30, 2017
Total governmental fund balances:
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
in the funds.
Long-term liabilities, including bonds payable ($5,839,174), notes payable ($15,653,000),
accrued compensated absences ($11,288,621), and accrued pollution remediation costs ($2,119,700),
are not due and payable in the current period and, therefore, not reported in the funds.
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 ($119,062,412)
of the cost-sharing defined benefit pension plans in which the County participates is reported.
Additionally, deferred outflows ($53,570,662) and deferred inflows ($8,088,748) related to pensions are
also reported in accordance with GASB Statement No. 68.
Special assessments, ambulance services, state and federal grant receivables, and insurance recoveries
are not available to pay for current period expenditures and, therefore, are reported as unavailable
revenue in the funds.
Accrued interest is not recognized in the current period because the resources are not available
and, therefore, not reported in the funds.
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.
Net position of governmental activities
The accompanying notes are an integral part of the financial statements.
26
$ 189,977,689
563,779,741
(34,900,495)
(73,580,498)
15,000,169
122,444
31,316,731
$ 691,715,781
�N
27
Indian River County, Florida
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended September 30, 2017
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 services
Culture/recreation
Court related
Debt service:
Principal
Interest and other fiscal charges
Capital projects
Total expenditures
Excess of revenues over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Secondary
Impact Roads
General Fees Construction
$ 59,268,103 $
- $
3,821,095
9,407,266
5,703,909
-
16,054,567
-
1,635,138
8,080,904
-
-
1,182,194
-
-
389,073
89,823
72,527
5,015,643
284,695
43,071
99,397,750
6,078,427
5,571,831
20,646,898
748,395 -
46,157,514
1,046,861 -
378,006
- -
4,539,860
2,288,833 7,032,264
433,553
- -
4,239,760
- -
9,611,836
100,360 -
6,063,329
- -
92,070,756 4,184,449 7,032,264
7,326,994 1,893,978 (1,460,433)
1,562,993 - -
(9,917,276) (895,000) (444,320)
(8,354,283) (895,000) (444,320)
(1,027,289) 998,978 (1,904,753)
48,447,738 14,087,443 11,785,519
$ 47,420,449 $ 15,086,421 $ 9,880,766
The accompanying notes are an integral part of the financial statements.
W9.
(9,403,045) 2,318,144 6,204,888 (1,156,268) 5,724,258
9,756,429
Emergency
Optional
Other
Total
(82,667)
Services
Sales
Governmental
Governmental
Transportation
District
Tax
Funds
Funds
$ - $
27,604,884 $
17,623,741
$ 7,439,577
$ 115,757,400
259,327
-
-
530,273
15,900,775
3,222,357
871,613
911,341
7,336,334
30,031,350
108,454
6,354,017
-
1,463,554
16,006,929
-
1,600
-
437,170
1,620,964
49,128
87,302
447,601
151,961
1,287,415
562,274
103,828
-
383,416
6,392,927
4,201,540
35,023,244
18,982,683
17,742,285
186,997,760
291,929
-
-
2,994,639
24,681,861
-
32,705,100
-
3,488,064
83,397,539
898,552
-
-
24,304
1,300,862
12,414,104
-
-
287,535
26,562,596
-
-
-
3,478
437,031
-
-
-
3,877,150
8,116,910
-
-
-
2,301,142
12,013,338
-
-
-
691,721
6,755,050
-
-
-
4,573,000
4,573,000
-
-
-
657,520
657,520
-
-
12,777,795
-
12,777,795
13,604,585
32,705,100
12,777,795
18,898,553
181,273,502
(9,403,045) 2,318,144 6,204,888 (1,156,268) 5,724,258
9,756,429
-
-
3,012,317
14,331,739
(82,667)
(593,813)
(2,042,315)
(478,511)
(14,453,902)
9,673,762
(593,813)
(2,042,315)
2,533,806
122,163)
270,717
1,724,331
4,162,573
1,377,538
5,602,095
7,023,850
6,068,669
71,159,819
25,802,556
184,375,594
7,294,567 $ 7,793,000 $ 75,322,392 $ 27,180,094 $ 189,977,689
29
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, 2017
Net change in fund balances - total governmental funds
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
Less current year loss on assets
Less current year depreciation
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
Note principal payment
Legal judgment
Medicaid settlement
Pollution remediation costs
Changes in accrued compensated absences do not require the use of current financial
resources and, therefore, are not reported as expenditures in governmental funds.
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
Accrued OPEB expense
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.
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.
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.
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.
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.
Change in net position of governmental activities
The accompanying notes are an integral part of the financial statements.
30
29,101,027
(1,082,175)
(23,004,347)
5,602,095
5,014,505
520,000
4,053,000
59,500
158,087
325,400 5,115,987
(443,296)
(106,116)
(734,999) (841,115)
2,620,440
(11,023,084)
2,955,084
11,341,705
14,161
$ 20,356,482
Indian River County, Florida
Statement of Revenues, Expenditures, and
Changes in Fund Balances - Budget and Actual
General Fund
For the Year Ended September 30, 2017
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)
Budgeted Amounts
Original Final
Variance with
Final Budget
Actual Positive
Amounts (Negative)
$ 58,366,967 $ 58,366,967 $ 59,268,103 $ 901,136
9,017,875
9,017,875
9,407,266
389,391
12,558,196
16,028,792
16,054,567
25,775
8,671,955
8,108,310
8,080,904
(27,406)
1,028,399
1,094,342
1,182,194
87,852
154,195
154,195
389,073
234,878
4,106,316
4,257,063
5,015,643
758,580
93,903,903
97,027,544
99,397,750
2,370,206
20,693,370
22,337,406
20,646,898
1,690,508
45,566,861
46,439,989
46,157,514
282,475
323,682
421,305
378,006
43,299
800,000
5,549,941
4,539,860
1,010,081
432,221
441,174
433,553
7,621
4,368,656
4,514,279
4,239,760
274,519
9,705,321
10,678,806
9,611,836
1,066,970
5,760,270
5,926,541
6,063,329
(136,788)
87,650,381
96,309,441
92,070,756
4,238,685
6,253,522 718,103 7,326,994 6,608,891
Transfers in
853,399
1,600,807
1,562,993 (37,814)
Transfers out
9,917,088
(9,917,q76)
(9,917,276) -
Total other financing sources (uses)
(9,063,689)
(8,316,469)
(8,354,283) 37,814)
Net change in fund balances
(2,810,167)
(7,598,366)
(1,027,289) $ 6,571,077
Fund balances at beginning of year
2,810,167
7,598,366
48,447,738
Fund balances at end of year $ - $ - $ 47,420,449
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, 2017
REVENUES
Permits, fees and special assessments
Interest
Miscellaneous
Total revenues
EXPENDITURES
General government
Public safety
Transportation
Culture/recreation
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
Budgeted Amounts
Original Final
Variance
with Final
Budget
Actual Positive
Amounts (Negative
$ 3,562,500 $ 3,562,500 $ 5,703,909 $ 2,141,409
33,250
33,250
89,823
56,573
-
-
284,695
284,695
3,595,750
3,595,750
6,078,427
2,482,677
224,271
1,074,957
748,395
326,562
1,025,000
1,046,861
1,046,861
-
6,047,000
10,419,585
2,288,833
8,130,752
525,000
500,000
100,360
399,640
7,821,271
13,041,403
4,184,449
8,856,954
(4,225,521) (9,445,653) 1,893,978 11,339,631
- (895,000) (895,000) -
(895,000) (895,000) -
(4,225,521) (10,340,653) 998,978 $ 11,339,631
4,225,521 10,340,653 14,087,443
$ 15,086,421
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, 2017
Variance
with Final
Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative
REVENUES
Taxes
$ 3,529,250 $ 3,529,250 $
3,821,095
$ 291,845
Intergovernmental
- 6,067,331
1,635,138
(4,432,193)
Interest
23,750 23,750
72,527
48,777
Miscellaneous
- -
43,071
43,071
Total revenues
3,553,000 9,620,331
5,571,831
(4,048,500
EXPENDITURES
Transportation 7,688,044 16,724,164 7,032,264 9,691,900
Total expenditures 7,688,044 16,724,164 7,032,264 9,691,900
Excess of revenues over (under) expenditures 4,135,044) (7,103,833)_(1,460,433) 5,643,400
OTHER FINANCING SOURCES (USES)
Transfers out - (444,320) (444,320)
Total other financing sources (uses) - 444,320 (444,320) -
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
(4,135,044) (7,548,153) (1,904,753) $ 5,643,400
4,135,044 7,548,153 11,785,519
$ 9,880,766
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, 2017
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 over (under) expenditures
OTHER FINANCING SOURCES (USES)
Budgeted Amounts
Original Final
Variance
with Final
Budget
Actual Positive
Amounts (Negative
$ 185,250 $
185,250 $
259,327 $
74,077
2,620,290
2,620,290
3,222,357
602,067
93,575
93,575
108,454
14,879
30,400
30,400
49,128
18,728
338,795
338,795
562,274
223,479
3,268,310
3,268,310
4,201,540
933,230
278,137
298,052
291,929
6,123
634,741
1,050,153
898,552
151,601
12,907,568
14,127,639
12,414,104
1,713,535
13,820,446
15,475,844
13,604,585
1,871,259
(10,552,136) 121207,534) (9,403,045) 2,804,489
Transfers in
9,756,429
9,756,429
9,756,429 -
Transfers out
82,6671
(82,667)
82,667) -
Total other financing sources (uses)
9,673,762
9,673,762
9,673,762 -
Net change in fund balances
(878,374)
(2,533,772)
270,717 $ 2,804,489
Fund balances at beginning of year 878,374 2,533,772 7,023,850
Fund balances at end of year $ - $ - $ 7,294,567
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, 2017
REVENUES
Taxes
Intergovernmental
Charges for services
Judgments, fines and forfeits
Interest
Miscellaneous
Total revenues
EXPENDITURES
Public safety
Total expenditures
Excess of revenues over (under) expenditures
Variance
with Final
Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative
$ 27,163,668 $ 27,163,668 $ 27,604,884 $ 441,216
45,125
923,811
871,613
(52,198)
5,369,701
5,369,701
6,354,017
984,316
11,400
11,400
1,600
(9,800)
28,500
28,500
87,302
58,802
38,071
128,071
103,828
(24,243)
32,656,465
33,625,151
35,023,244
1,398,093
32,417,698 35,862,247 32,705,100 3,157,147
32,417,698 35,862,247 32,705,100 3,157,147
238,767 (2,237,096) 2,318,144 4,555,240
OTHER FINANCING SOURCES (USES)
Transfers out (536,950) (616,977) (593,813) 23,164
Total other financing sources (uses) 536,954 (616,977 (593,813 23,164
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
(298,183) (2,854,073) 1,724,331 $ 4,578,404
298,183 2,854,073 6,068,669
$ - $ - $ 7,793,000
The accompanying notes are an integral part of the financial statements.
35
R
36
E-3
Indian River County, Florida
Statement of Fund Net Position
Proprietary Funds
September 30, 2017
The accompanying notes are an integral part of the financial statements.
37
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
$ 17,141,851 $
128,580
$ 45,318,420 $
7,008,662 $
69,597,513
$ 29,581,186
Accounts receivable - net
714,520
11,791
2,787,982
-
3,514,293
250,559
Due from other funds
124,787
-
-
-
124,787
311,200
Due from other governments
1,132,093
26,414
368,395
5,428
1,532,330
71,600
Interest receivable
33,010
-
611,577
12,987
657,574
50,519
Inventories
-
139,842
1,063,293
-
1,203,135
203,051
Prepaids and other assets
-
1,250
70,828
45,299
117,377
9,574,807
Current restricted assets:
Cash and investments
14,182,162
-
38,109,984
-
52,292,146
-
Total current assets
33,328,423
307,877
88,330,479
7,072,376
129,039,155
40,042,922
Non-current assets:
Capital assets - non -depreciable
13,324,204
6,606,283
12,912,057
-
32,842,544
-
Capital assets - depreciable
31,806,809
4,762,893
434,830,238
589,782
471,989,722
2,961,079
Capital assets - accumulated depreciation
(13,737,960)
(1,872,879)
(266,148,661)
(304,207)
(282,063,707)
(2,314,742)
Non-current restricted assets:
Special assessments receivable
399,299
399,299
Impact fees receivable
555,355
555,355
Liens receivable
6,261,112
6,261,112
Total non-current assets
31,393,053
9,496,297
188,809,400
285,575
229,984,325
646,337
Total assets
64,721,476
9,804,174
277,139,879
7,357,951
359,023,480
40,689,259
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions
217,445
179,220
2,669,126
595,904
3,661,695
497,089
Deferred amounts on refundings
-
1,037,380
-
1,037,380
-
Total deferred outflows of resources
217,445
179,220
3,706,506
595,904
4,699,075
497,089
LIABILITIES
Current liabilities (payable from current assets):
Accounts payable
1,988,276
163,150
1,924,720
109,776
4,185,922
299,536
Retainage payable
-
-
90,784
-
90,784
-
Due to other funds
339,073
-
339,073
-
Claims payable
-
-
-
-
2,763,000
Due to other governments
5,596
45,122
22,160
72,878
-
Other deposits
1,000
-
-
1,000
Unearned revenues
-
39,348
-
-
39,348
-
Accrued compensated absences
43,977
24,435
547,552
102,000
717,964
78,598
Total current liabilities (payable from current assets)
2,032,253
572,_602
2,608,178
233,936
5,446,969
3,141,134
Current liabilities (payable from restricted assets):
Accounts payable
-
-
142,012
-
142,012
-
Retainage payable
22,714
22,714
Accrued interest payable
-
72,242
72,242
Closure and maintenance costs payable
9,270,090
-
9,270,090
Notes payable
-
1,007,000
1,007,000
Bonds payable
-
2,100,000
2,100,000
Customer deposits
172,426
3,088,247
3,260,673
Total current liabilities (payable from restricted assets)
9,442,516
6,432,215
15,874,731
-
Total current liabilities
11,474,769
572,602
9,040,393
233,936
21,321,700
3,141,134
Non-current liabilities:
Accrued compensated absences
6,067
46,778
160,213
6,012
219,070
54,310
Advance from other funds
-
912,103
-
-
912,103
-
Claims payable
-
-
-
5,492,000
Closure and maintenance costs payable
4,739,646
-
-
-
4,739,646
-
Net pension liability
480,853
412,841
6,109,051
1,252,211
8,254,956
1,112,578
Notes payable
-
-
4,199,000
-
4,199,000
-
Bonds payable - net ofunamortized discount/premium
14,725,534
14,725,534
Total non-current liabilities
5,226,566
1,371,722
25,193,798
1,258,223
33,050,309
6,658,888
Total liabilities
16,701,335
1,944,324
34,234,191
1,492,159
54,372,009
9,800,022
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions
25,316
28,346
411,265
63,390
528,317
69,595
NET POSITION
Net investment in capital assets
31,393,053
9,496,297
160,599,480
285,575
201,774,405
646,337
Unrestricted (deficit)
16,819,217
(1,485,573)_
85,601,449
6,112,731
107,047,824
30,670,394
Total net position
$ 48,212,270 $
8,010,724
$ 246,200,929 $
6,398,306 $
308,822,229
$ 31,316,731
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, 2017
OPERATING REVENUES
Charges for services
Charges for services pledged as security for revenue bonds
Total operating revenues
OPERATING EXPENSES
Personal services
Material, supplies, services and other operating
Depreciation
Total operating expenses
Operating income (loss)
NONOPERATING REVENUES (EXPENSES)
Intergovernmental
Interest income
Interest income pledged as security for revenue bonds
Gain on disposal of equipment
Interest expense
Loss on disposal of equipment
Total nonoperating revenues (expenses)
Income (loss) before transfers and capital grants and
contributions
Capital contributions
Transfers
Change in net position
Total net position - beginning
Total net position - ending
Business -type Activities -
Solid Waste
Disposal Golf
District Course
$ 13,786,879 $ 3,245,437
13,786,879 3,245,437
639,458
12,805,445
1,097,197
14,542,100
(755,221
1,132,093
228,008
1,360,101
604,880
00::1
606,318
1,905,896
175,455
2,687,669
557.768
15,215
1,251
1,410
(5,720)
12,156
569,924
569,924
47,607,390 7,440,800
$ 48,212,270 $ 8,010,724
The accompanying notes are an integral part of the financial statements.
Enterprise Funds
County County
Utilities Building
31,994,089
31,994,089
9,044,245
13,873,101
14,694,707
37,612,053
(5,617,964)
3,742,674 $
3,742,674
2,128,703
1,290,875
84,508
3,504,086
.,,
Total
20,774,990 $
31,994,089
52,769,079
Governmental
Activities -
Internal
Service Funds
26,642,557
26,642,557
12,418,724
3,307,380
29,875,317
20,419,366
16,051,867
181,435
58,345,908
23,908,181
(5,576,829) 2,734,376
368,395
5,428
1,521,131
18,717
-
40,759
270,018
165,076
548,472
-
548,472
-
23,125
12,750
37,285
-
(974,476)
-
(980,196)
-
(22,703)
-
(22,703)
(2,581)
(57,187)
58,937
1,374,007
181,212
(5,675,151)
6,108,117
82,667
515,633
245,685,296
246,200,929 $
297,525
297,525
6,100,781
6,398,306 $
(4,202,822)
6,108,117
82,667
1,987,962
306,834,267
308,822,229 $
39
39,496
2,955,084
28,361,647
31,316,731
Indian River County, Florida
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2017
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
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 fees
Capital contributed by others
Net cash flows 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
Total
Business -type Activities -
Solid Waste
Disposal
District Golf Course
$ 13,224,032 $ 3,234,685
(11,117,122) (1,839,195)
(608,254) (577,257)
1,498,656 818,233
(90,000)
(90,000)
(5,720)
1,100,000
(275,163)
1,410
(1,432,047)
(13,109) (611,520)
215,433 1,592
215,433 1,592
1,700,980 118,305
29,623,033 10,275
$ 31,324,013 $ 128,580
$ 17,141,851 $ 128,580
14,182,162 -
$ 31,324,013 $ 128,580
The accompanying notes are an integral part of the financial statements.
M
Funds
County
County
Utilities
Building
$ 30,705,096 $
3,742,674 $
(14,280,316)
(1,391,507)
(8,592,156)
(2,007,144)
7,832,624
344,023
82,667
82,667
(2,992,000)
(983,267)
23,125
(2,579,269)
(1,600)
2,425,154
(4,107,857)
12,750
(32,799)
(20,049)
Total
50,906,487 $
(28,628,140)
(11,784,811)
10,493,536
82,667
(90,000)
(7,333)
(2,992,000)
(988,987)
1,100,000
(275,163)
37,285
(4,057,224)
(1,600)
2,425,154
(4,752,535)
Governmental
Activities -
Internal
Service Funds
26,586,278
(20,800,671)
(2,750,420)
3,035,187
39,496
39,496
(331,590)
(331,590)
491,427
35,534
743,986
143,515
491,427
35,534
743,986
143,515
4,298,861
359,508
6,477,654
2,886,608
79,129,543
6,649,154
115,412,005
26,694,578
$ 83,428,404 $
7,008,662 $
121,889,659 $
29,581,186
$ 45,318,420 $
7,008,662 $
69,597,513 $
29,581,186
38,109,984
-
52,292,146
-
$ 83,428,404 $
7,008,662 $
121,889,659 $
29,581,186
Continued
41
Indian River County, Florida
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2017
Business -type Activities -
Solid Waste
Disposal Golf
District Course
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH
PROVIDED BY (USED IN) OPERATING ACTIVITIES:
Operating income (loss) $ (755,221) $ 557,768
Adjustments to reconcile operating income to net cash
provided by (used in) operating activities:
WIP reclassified as expense
Depreciation
1,097,197 175,455
(Increase) Decrease in assets:
Accounts receivable
(615,509)
(11,791)
Due from other funds
13,862
-
Due from other governments
-
201
Inventories
-
(12,271)
Impact fees receivable
-
-
Special assessments receivable
-
-
Liens receivable
-
-
Prepaid expenses
-
(1,250)
Increase (Decrease) in liabilities:
Accounts payable
688,323
82,782
Due to other governments
-
(2,761)
Retainage payable
-
-
Customer deposits
38,800
-
Closure and maintenance costs payable
1,000,000
-
Net pension liability
33,152
28,957
Unearned revenues
-
1,039
Claims payable
-
-
Accrued compensated absences
(1,948)
104
Total adjustments
2,253,877
260,465
Net cash provided by (used in) operating activities
$ 1,498,656 $
818,233
NONCASH CAPITAL AND RELATED
FINANCING ACTIVITIES
Change in fair value of investments $ 6,081 $ -
Contributed property, infrastructure, and equipment $ - $ -
Capital assets purchased through accounts payable $ 29,586 $ 5,000
The accompanying notes are an integral part of the financial statements.
42
County
Utilities
$ (5,617,964) $
2,400
14,694,707
Funds
County
Building
Total
Governmental
Activities -
Internal
Service Funds
238,588 $ (5,576,829) $ 2,734,376
- 2,400 -
84,508 16,051,867 181,435
(336,024)
- (963,324)
(81,282)
-
- 13,862
38,237
-
- 201
(13,234)
76,208
- 63,937
(40,992)
74,546
- 74,546
-
121,023
- 121,023
-
(1,188,163)
- (1,188,163)
-
(51,023)
(45,264) (97,537)
377,659
(426,991)
(54,006)
290,108
25,712
21,086
(1,362)
16,963
-
(28,895)
-
(28,895)
-
39,625
-
78,425
-
-
-
1,000,000
-
435,221
111,242
608,572
83,545
-
-
1,039
-
-
-
-
(257,520)
16,868
10,317
25,341
(12,749)
13,450,588
105,435
16,070,365
300,811
$ 7,832,624 $
344,023 $
10,493,536 $
3,035,187
$ 26,729 $ 2,392 $ 35,202 $ 9,267
$ 3,682,963 $ - $ 3,682,963 $ -
$ 621,479 $ - $ 656,065 $ -
43
Indian River County, Florida
Statement of Fiduciary Net Position
Fiduciary Funds
September 30, 2017
ASSETS
Cash
Investments, at fair value
Index funds
U.S. government securities funds
Primary money market fund
Total assets
LIABILITIES
Accounts payable
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
Other
Postemployment
Benefits Trust
$ 10,617,814 $ 49,573
13,862,842
11,216,540
2,541,507
$ 10,617,814 $ 27,670,462
$ 30,559 $ -
6,185,534 -
4,401,721 -
$ 10,617,814 -
27,670,462
$ 27,670,462
The accompanying notes are an integral part of the financial statements.
Indian River County, Florida
Statement of Changes in Fiduciary Net Position
Other Post Employment Benefits Trust Fund
For the Year Ended September 30, 2017
ADDITIONS
Employer contributions $ 2,274,341
Net appreciation in fair value of investments 2,389,763
Less investment expense (2,280
Net investment income 2,387,483
Total additions 4,661,824
DEDUCTIONS
Benefits payments 2,494,672
Total deductions 2,494,672
Change in net position 2,167,152
Net position - beginning 25,503,310
Net position - ending $ 27,670,462
The accompanying notes are an integral part of the financial statements.
45
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46
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2017
Note
Page
Note
Page
1 Summary of Significant Accounting
4
Property Tax Revenues
66
Policies
48
5
Capital Assets
67
Reporting Entity
48
6
Restricted Cash and Investments
70
Measurement Focus and Basis of
7
Interfund Balances
71
Accounting
49
8
Interfund Transfers
72
Basis of Presentation
52
9
Accounts Payable
73
Assets, Liabilities, Deferred Outflows/
10
Long-term Liabilities
74
Inflows of Resources, and Net
Changes in Long-term Liabilities
74
Position or Fund Balances
54
Governmental Activities
75
Cash and Investments
54
Annual Debt Service Payments
75
Allowance for Doubtful Accounts
55
Spring Training Facility Rev Bonds
75
Receivables and Payables
55
Limited General Obligation Ref Note
78
Inventories
55
Business -type Activities
79
Prepaids and Other Assets
55
Annual Debt Service Payments
79
Restricted Net Position
55
Water and Sewer Revenue
Capital Assets
56
Refunding Note, Series 2015
80
Capitalization of Interest
57
Water and Sewer Revenue
Deferred Outflows/Inflows of
Refunding Bonds, Series 2009
80
Resources
57
Compensated Absences
81
Pensions/Net Pension Liability
58
11
Provision for Closure Costs
82
Change in Accounting Principles/New
12
Pollution Remediation
83
Accounting Pronouncement
58
13
Retirement Plan
84
Unearned Revenues
58
14
Other Postemployment Benefits Plan
95
Accrued Compensated Absences
59
15
Operating Leases
101
Obligation for Bond Arbitrage
16
Fund Balance
103
Rebate
59
17
Net Position
105
Landfill Closure Costs
59
18
Risk Management
105
Unamortized Bond Discounts
19
Commitments and Contingencies
106
and Premiums
59
Litigation
106
Capital Contributions
59
Contracts and Other Commitments
107
2 Stewardship, Compliance and
Grants
107
Accountability
60
Budget and Budgetary Accounting
60
3 Cash and Investments
61
Deposits
61
Accrued Interest
61
Investments
62
OPEB Trust Investments
65
47
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2017
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 148,962. 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.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2017
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.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2017
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, 2017
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, 2017
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 (OPEB Trust) accounts for activities of the OPEB Trust, which accumulates
resources for health insurance benefit payments for current retirees and for current employees upon
their retirement. The agency and OPEB 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 determination of major funds. The County has used
GASB 34 minimum criteria for major fund determination and has also electively disclosed funds that
either had debt outstanding or specific community focus as major funds. The 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, 2017
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, a capital projects 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.
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 (OPEB
Trust) accounts for activities of the OPEB 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, 2017
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
1. 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,
Florida PRIME Fund (formerly known as the Local Government Surplus Funds Trust Fund Investment
(SBA) Fund A), the Florida Trust Day to Day and Short Term Bond Funds (Florida Trust), and the
Florida Cooperative Liquid Assets Securities System (FLCLASS). Investments are reported at fair
value based upon the average price obtained from three brokers/dealers. The SBA and Florida Trust
values are based upon the fair market value per share of the underlying portfolio. Refer to Note 3C,
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, 2017
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, 2017, the allowance for water and sewer services was
$424,493 and the allowance for ambulance services was $1,010,796. No other allowances for doubtful
accounts are maintained since other accounts receivable are considered collectible as reported at
September 30, 2017.
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. Water and sewer receivables in excess of 120 days and ambulance services receivables in
excess of 180 days for self -pay accounts and 365 days for commercial insurance accounts 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. Prepaids and Other Assets
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. On the Statement of Fund Net Position for the Proprietary Funds, of
the $9,574,807 reported as prepaids and other assets in the Governmental Activities Internal Service
Funds column, $8,513,836 is the net other post employment benefit asset. See Note 14 for further
information.
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, 2017
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, donated works of art, historical treasures and similar
assets, as well as capital assets that are received in a service concession arrangement are reported at
original acquisition value. 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
W
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2017
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 $1,413,206 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 $15,000,169.
The sources of the unavailable revenue are a special assessments on road paving, ambulance service
billings, insurance recoveries, 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, 2017
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 Program), 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 Government Accounting Standards Board (GASB) Statement No. 74,
Financial Reporting for Postemployment Benefit Plans Other than Pension Plans. The objective of this
Statement is to improve the usefulness of information about postemployment benefits other than
pensions (other postemployment benefits or OPEB) included in the general purpose external financial
reports of state and local governmental OPEB plans for making decisions and assessing accountability.
12. Unearned Revenues
Unearned revenues represent revenues, which are available but unearned. At September 30, 2017, the
total amount of unearned revenues reported on the statement of net position for the governmental
activities is $640,851 and for the business -type activities is $39,348.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2017
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(f) of the U. S. Internal Revenue Code, the County must rebate to the United
States Government the excess of interest earned from the investment of certain debt proceeds and
pledged revenues over the yield rate of the applicable debt. The County uses the "revenue reduction"
approach in accounting for rebatable arbitrage. This approach treats excess earnings as a reduction of
revenue. The County has no arbitrage liability outstanding as of September 30, 2017.
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, 2017
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.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2017
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. The
following table reconciles the caption totals on the Statements of Net Position with the amounts
discussed in the footnotes below.
Cash and investments - Statement of Net Position:
Cash and investments $ 288,642,637
Restricted cash and investments 58,365,013
Cash - Statement of Fiduciary Net Position -Agency Fund 10,617,814
Total: $ 357,625,464
Deposits $ 127,030,941
Investments 230,594,523
Total: $ 357,625,464
A. Deposits
At September 30, 2017, the carrying amount of the primary government's deposits, including
$10,617,814 in the Agency Fund, was $127,030,941, and the bank balance was $130,568,897. 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.
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, 2017, accrued interest for the County's portfolio totaled $479,642. 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, 2017
NOTE 3 - CASH AND INVESTMENTS - Continued
C. Investments
As of September 30, 2017, the County had the following investments:
Investment
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 Trust Short Term Bond Fund
Florida Trust Day to Day Fund
Florida Prime
FLCLASS
W&S Sinking Fund Reserve:
U.S. Treasuries
Total Fair Value
Weighted Average Maturity of Investments 0.92
* 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 County'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
Weighted
Average
Maturity
Portfolio
Credit
Fair Value
In Years
Percentage
Risks*
$ 82,724,813
0.70
35.87 %
N/A
23,918,187
1.05
10.37
AA+
48,822,753
1.26
21.17
AA+
45,842,853
1.07
19.88
AA+
10,947,847
1.07
4.75
AA+
13,922,060
0.08
6.04
AAAf/S-1**
126,135
0.08
0.05
AAAm
101,593
0.08
0.04
AAAm
63,984
0.08
0.03
AAAm
4,124,298
1.24
1.80
N/A
$ 230,594,523
100.00 %
Weighted Average Maturity of Investments 0.92
* 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 County'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, 2017
NOTE 3 - CASH AND INVESTMENTS - Continued
C. Investments - Continued
The County had the following recurring fair value measurements as of September 30, 2017:
Level Level Level Total
U.S. Treasuries $ - $ 86,849,111 $ - $ 86,849,111
U.S. Agencies - 129,531,640 - 129,531,640
Florida Trust Funds - 14,048,195 - 14,048,195
Florida Prime - 101,593 - 101,593
FLCLASS - 63,984 - 63,984
Total Investments $ - $ 230,594,523 $ - $ 230,594,523
Interest Rate Risk
The County's investment policy limits interest rate risk by attempting to match investment maturities
with known cash needs and anticipated cash flow requirements. All investments must have stated
maturities 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 (Florida Trust);
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;
63
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 3 - CASH AND INVESTMENTS - Continued
C. Investments - Continued
Credit Risk - Continued
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.
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 County's investment policy does not allow for more than 20% of the entire portfolio to be invested
in any one issuer, with the exception of United States Treasury Obligations and state authorized pools.
No more than 10% of the portfolio may be placed in certificates of deposit (CD) and no more than $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.
ME
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2017
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, 2017, the
Boards's investment portfolio in U.S. Treasuries, U.S. Agencies, and money market funds, was held by
The Bank of New York/Mellon. Additional Board investments include the Florida Trust Short Term
Bond Fund which was held by the Bank of New York/Mellon. Additional Tax Collector investments
include the Florida Trust Day to Day Fund, which was held by UMB Fund Services; the FLCLASS,
which was held by Wells Fargo Bank, N.A.; and the Florida PRIME, 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 parry custodian, Bank of New York/Mellon. The contribution for the year ended September
30, 2017 was $2,274,341. Cash balance in the OPEB Trust at September 30, 2017 was $49,573. 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.
For the fiscal year ended September 30, 2017, the annual money -weighted rate of return on
investments, net of investment expense, was 9.0%. The money -weighted rate of return expresses
investment performance, net of investment expense, adjusted for the changing amounts actually
invested.
65
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 3 - CASH AND INVESTMENTS - Continued
D. OPEB Trust Investments - Continued
As of September 30, 2017, the OPEB Trust had the following investments:
Weighted
Average
Maturity Portfolio
Investment Type Fair Value in Years Percentage
Vanguard 500 Index $
6,233,563
N/A
22.57 %
Vanguard All World Ex -US
5,522,817
N/A
20.00
Vanguard Mid Cap Index
1,395,305
N/A
5.05
Vanguard Small Cap Index
711,157
N/A
2.57
Vanguard Short -Term Treasury
8,273,199
2.10
29.95
Vanguard Intermediate Treasury
2,736,053
5.70
9.91
Vanguard Prime Money Market
2,541,507
0.14
9.20
Vanguard Federal Money Market
207,288
0.15
0.75
Total Fair Value
$ 27,620,889
100.00 %
The County has the following recurring fair value measurements for investments in the OPEB Trust as
of September 30, 2017:
Index funds
U.S. government securities funds
Money market fund
Total investments
Level Level Level Total
$ 13,862,842
11,216,540
2,541,507
$ 27,620,889
NOTE 4 - PROPERTY TAX REVENUES
$ - $ - $ 13,862,842
11,216,540
2,541,507
$ - $ - $ 27,620,889
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 2016-2017 fiscal year were levied in
October 2016. 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.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2017
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
Ending
Balance
Additions
Deletions
Balance
$ 133,776,878
$ 1,269,499
$ (554,749)
$ 134,491,628
23,708,410
20,387,048
(13,636,767)
30,458,691
57,644,227
1,199,413
(236,338)
58,607,302
1,082,703
97,576
-
1,180,279
3,575,067
-
-
3,575,067
219,787,285
22,953,536
(14,427,854)
228,312,967
229,881,366
10,966,262
(938,503)
239,909,125
66,000,429
8,472,913
(3,609,083)
70,864,259
4,982,614
442,739
(301,234)
5,124,119
354,581,129
609,640
(80,000)
355,110,769
655,445,538
20,491,554
(4,928,820)
671,008,272
(71,781,427)
(6,652,700)
701,166
(77,732,961)
(49,515,787)
(4,740,624)
3,193,044
(51,063,367)
(3,362,472)
(510,568)
301,234
(3,571,806)
(191,309,138)
(11,281,889)
64,000
(202,527,027)
(315,968,824)
(23,185,781)
4,259,444
(334,895,161)
339,476,714 (2,694,227) (669,376) 336,113,111
$ 559,263,999 $ 20,259,309 $ (15,097,230) $ 564,426,078
67
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2017
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 $
3,000,593
Public safety
4,733,128
Physical environment
633,479
Transportation
7,547,225
Human service
138,656
Culture/recreation
6,673,891
Court related
277,375
Capital assets held by the government's internal service funds are
charged to the various functions based on their usage of the assets
181,434
Total depreciation expense — governmental activities $ 23,185,781
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 Sector 3 Beach
Restoration asset in the amount of $1,715,853. This impairment was caused by Hurricane Matthew
erosion damage that occurred in October 2016. Subsequently, in September 2017, Hurricane Irma
caused additional damage resulting in a second asset impairment of $390,043. These impairment
amounts are included as a culture and recreation program expense on the Statement of Activities.
.:
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 5 - CAPITAL ASSETS — Continued
B. Business -type Activities
Primary Government
Beginning
Business -type activities:
Balance
Capital assets, not being depreciated:
17,712,913
Land, improvements to land
$ 27,492,902
Intangibles
1,750,838
Construction in progress
2,304,979
Total capital assets, not being depreciated
31,548,719
Capital assets, being depreciated:
Buildings, distribution systems, & improvements 448,111,192
Intangibles 1,224,215
Equipment 16,528,821
Total capital assets, being depreciated 465,864,228
Less accumulated depreciation for:
Ending
Additinnc Deletinna Ralanre
$ - $ - $ 27,492,902
26,134 - 1,776,972
3,618,557 (2,350,866) 3,572,670
3,644,691 (2,350,866) 32,842,544
5,650,270 (702,714)
453,058,748
- (6,154)
1,218,061
1,422,375 (238,283)
17,712,913
7,072,645 (947,151)
471,989,722
Buildings, distribution systems, & improvements
(252,824,571)
(14,875,023)
680,499
(267,019,095)
Intangibles
(884,182)
(133,369)
6,154
(1,011,397)
Equipment
(13,219,770)
(1,043,475)
230,030
(14,033,215)
Total accumulated depreciation
(266,928,523)
(16,051,867)
916,683
(282,063,707)
Total capital assets, being depreciated, net
198,935,705
(8,979,222)
(30,468)
189,926,015
Business -type activities capital assets, net $ 230,484,424 $ (5,334,531) $ (2,381,334) $ 222,768,559
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
. •
$ 1,097,197
175,455
14,694,707
84,508
16.051.867
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 6 - RESTRICTED CASH AND INVESTMENTS
Various bond covenants, resolutions, and state regulations require that the County restrict cash and
investments. Restricted cash and investments are as follows:
Government
70
Governmental
Business -type
Activities
Activities
Total
Sinking funds/current portion of debt $
4,708,000
$ 4,455,456 $
9,163,456
Renewal and replacement
-
3,485,928
3,485,928
Retainage payable
736,187
-
736,187
Customer deposits
628,680
3,260,673
3,889,353
Capital construction
-
27,080,353
27,080,353
Closure and maintenance costs
-
14,009,736
14,009,736
Total $
6,072,867
$ 52,292,146 $
58,365,013
70
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 7 - INTERFUND BALANCES
Interfund balances at September 30, 2017, consisted of the following:
Receivable Fund Payable Fund Amount
General Fund Nonmajor governmental funds $ 175,000
General Fund Golf Course Enterprise Fund 339,073
$ 514,073
In January 2016, the General Fund loaned $254,500 to the Golf Course Fund to purchase new golf
carts. In September 2017, the General Fund loaned $1,100,000 to the Golf Course Fund for a new
irrigation system. 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 2018. 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 Amount
Major governmental funds:
Emergency Services District Fund General Fund $ 334,113
Optional Sales Tax Fund General Fund 7,158
$ 341,271
Major enterprise fund:
Solid Waste Disposal District Fund General Fund $ 124,787
Internal service fund:
Self Insurance Fund General Fund $ 311,200
Nonmajor governmental funds:
Land Acquisition Bonds Fund General Fund $ 56,180
Street Lighting Districts Fund General Fund 3,214
Vero Lake Estates Fund General Fund 2,760
East Gifford Stormwater Fund General Fund 11
Total nonmajor governmental funds $ 62,165
Total $ 839,423
Amounts due from the General Fund represent excess fees and payments of the constitutional officers
remitted to various funds subsequent to September 30, 2017.
71
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 7 - INTERFUND BALANCES - Continued
Interfund advances at September 30, 2017, consisted of the following:
Receivable Fund Payable Fund Amount
General Fund Golf Course Fund $ 912,103
This amount is considered a long-term advance between major funds expected to be paid in fiscal years
2019, 2020 and 2021. 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, 2017, consisted of the following:
72
Transfers In:
Nonmajor
County
Internal
General
Transportation
Governmental
Utilities
Service
Transfers Out:
Fund
Fund
Funds
Fund
Funds
Total
General Fund
$ - $
9,756,429
$ 121,351 $
$
39,496 $
9,917,276
Impact Fees Fund
-
-
895,000
895,000
Secondary Roads
Construction Fund
-
-
444,320
-
444,320
Transportation Fund
-
-
-
82,667
-
82,667
Emergency Services
District Fund
593,813
-
-
-
593,813
Optional Sales Tax Fund
969,180
-
1,073,135
-
-
2,042,315
Nonmajor Governmental
Funds
-
-
478,511
-
478,511
Total
$ 1,562,993 $
9,756,429
$ 3,012,317 $
82,667 $
39,496 $
14,453,902
72
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2017
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, and 9) move revenues from the fund that state law requires to collect
them to the fund that state law requires to expend them.
NOTE 9 — ACCOUNTS PAYABLE
Payables
Payables at September 30, 2017, 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
$ 1,964,265 $
Salaries and
Total
Vendors
Benefits
Payables
$ 2,194,251 $
1,106,428 $
3,300,679
316,421
3,808
320,229
1,575,602
9,837
1,585,439
499,549
301,846
801,395
241,875
901,763
1,143,638
2,030,455
-
2,030,455
894,134
274,384
1,168,518
$ 7,752,287 $
2,598,066 $
10,350,353
$ 1,964,265 $
24,011 $
1,988,276
144,415
18,735
163,150
1,627,947
296,773
1,924,720
36,691
73,085
109,776
142,012
-
142,012
$ 3,915,330 $
412,604 $
4,327,934
Included in salaries and benefits payable is a liability to the Florida Retirement System (FRS) for
pension contributions due for the month of September 2017. The amounts due to FRS at September 30,
2017 are $218,142 for governmental activities and $29,313 for business -type activities. Payments to
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 2017 other than that listed in Note 8.
73
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 10 - LONG-TERM LIABILITIES
A. Changes in Long -Term Liabilities
Long-term liability activity for the year ended September 30, 2017, was as follows:
Governmental Activities:
Bonds payable:
Spring Training Facility Revenue Bonds -
Series 2001
Notes payable:
Limited General Obligation Refunding
Other liabilities:
Pollution remediation
Claims payable
Due to other governments -Medicaid
Compensated absences
Total other liabilities
Governmental activities long-term liabilities
Beginning
Due
Ending Within
$ 6,735,000 $ - $
520,000 $
6,215,000 $
550,000
19,706,000 -
4,053,000
15,653,000
4,158,000
2,445,100 -
325,400
2,119,700
90,207
8,512,520 16,364,331
16,621,851
8,255,000
2,763,000
158,087 -
158,087
-
-
10,990,982 7,343,107
6,912,560
11,421,529
6,179,046
22,106,689 23,707,438
24,017,898
21,796,229
9,032,253
$ 48,547,689 $ 23,707,438 $ 28,590,898 $ 43,664,229 $ 13,740,253
Business -type Activities:
Bonds payable:
Water & Sewer Refunding Revenue Bonds - $ 17,620,000 $
Series 2009
Add: Unamortized bonds premium 1,380,884
Total bonds payable 19,000,884
Notes payable:
Water & Sewer Revenue Refunding 6,198,000
Other liabilities:
- $ 2,000,000 $ 15,620,000 $ 2,100,000
175,350 1,205,534 -
- 2,175,350 16,825,534 2,100,000
- 992,000 5,206,000 1,007,000
Landfill closure and maintenance costs
13,009,736
1,000,000
- 14,009,736
9,270,090
Compensated absences
931,664
790,354
784,984 937,034
717,964
Total notes payable and other liabilities
20,139,400
1,790,354
1,776,984 20,152,770
10,995,054
Business -type activities long-term liabilities $
39,140,284 $
1,790,354 $
3,952,334 $ 36,978,304 $
13,095,054
74
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 10 - LONG-TERM LIABILITIES - Continued
B. Primary Government
Governmental Activities
Annual Debt Service Payments - Governmental Activities
The annual debt service payments for bonds outstanding at September 30, 2017, are as follows:
Fiscal Year
Spring Training Facility
Limited General
Ending
Revenue Bonds
Obligation Refunding Note
September 30
Series 2001
Series 2015
Principal
Interest
Principal
Interest
2018
$ 550,000 $
316,750
$ 4,158,000 $
259,840
2019
585,000
287,875
4,227,000
190,817
2020
615,000
257,163
4,298,000
120,649
2021
650,000
224,875
2,970,000
49,302
2022
305,000
190,750
-
-
2023-2027
1,780,000
708,250
-
-
2028-2031
1,730,000
218,750
-
-
Total
6,215,000
2,204,413
15,653,000
620,608
Less:
Current portion
550,000
-
4,158,000
-
Total
$ 5,665,000 $
2,204,413
$ 11,495,000 $
620,608
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, 2017
NOTE 10 - LONG-TERM LIABILITIES - Continued
B. Primary Government - Continued
Spring TrainingFacility 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 $850,400 represent 9.13% of total pledged revenues. All
three revenue sources totaled $9,315,908 for the current fiscal year. The County applied 100% of the
state subsidy, 50% 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 $8,419,413.
Bonds Issued - At September 30, 2017, Spring Training Facility Revenue Bonds consisted of the
following:
Description
Spring Training Facility Revenue
Bonds, Series 2001
Interest
Rates and
Date
3.30%-5.25%
4/1 and 10/1
76
Outstanding at
September 30,
Maturity Issue 2017
2031 $ 16,810,000 $ 6,215,000
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 10 - LONG-TERM LIABILITIES - Continued
B. Primary Government - Continued
Spring TrainingFacility 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, 2021
Date
April 1, 2018
April 1, 2019
April 1, 2020
April 1, 2021
Term Bonds due April 1, 2027
Date
April 1, 2022
April 1, 2023
April 1, 2024
April 1, 2025
April 1, 2026
April 1, 2027
Term Bonds due April 1, 2031
Date
April 1, 2028
April 1, 2029
April 1, 2030
April 1, 2031
Principal Amount
$ 550,000
585,000
615,000
650,000
Principal Amount
$ 305,000
320,000
340,000
355,000
375,000
390,000
Principal Amount
$ 410,000
430,000
455,000
435,000
77
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2017
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 $375,826 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 $4,619,804 of which 100% is pledged for payment of this note and the 2006 bond. Total
principal and interest paid on this note was $4,380,119 and represents 95% 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.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2017
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 30, 2017 are as follows:
Fiscal Year
Ending
September 30
2018
2019
2020
2021
2022
2023-2024
Total
Less:
Current portion
Add:
Unamortized
bond premium
Total
Water and Sewer
Revenue Refunding
Note Series 2015
Principal
$ 1,007,000 $
1,025,000
1,042,000
1,058,000
1,074,000
5,206,000
1,007,000
Water and Sewer
Revenue Refunding
Bonds Series 2009
Interest
Principal
Interest
85,899
$ 2,100,000
$ 781,000
69,284
2,205,000
676,000
52,371
2,315,000
565,750
35,178
2,430,000
450,000
17,721
2,550,000
328,500
-
4,020,000
268,000
260,453
15,620,000
3,069,250
2,100,000
- - 1,205,534 -
$ 4,199,000 $ 260,453 $ 14,725,534 $ 3,069,250
79
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2017
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, 2017 is $410,184 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 $1,094,267 represent approximately eight percent of net
revenues of $13,693,895 of the utility system. The total principal and interest remaining to be paid on
the 2015 note is $5,466,453. 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, 2017 is $627,196 and is reflected as a deferred
outflow of resources on the Statement of Net Position.
:1,
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2017
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-one
percent of net revenues of $13,693,895 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
$18,689,250.
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, 2017, the revenue bonds consisted of the following:
Interest Outstanding at
Rates and September 30,
Description Date Maturity Issue 2017
Water and Sewer 4-5%
Revenue Refunding Bonds, 3/1 and 9/1 2024 $ 26,370,000 $ 15,620,000
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
76 percent, and the Transportation and Emergency Services District funds normally liquidate 6 percent
and 15 percent, respectively. The remaining 3 percent is liquidated by other governmental and internal
service funds.
N.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2017
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 $7.1 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 11 41% 2021 $ 12,601,947
Construction and Demolition -
Cell I 90% 2027 814,866
Post -closure Costs
Class I - Segments I and II N/A N/A 588,435
Construction and Demolition -
Cell I N/A N/A 4,488
Total account balance at 9/30/17: $ 14,009,736
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, 2017, $13,922,060 was on deposit at the Florida Local Government
Investment Trust and $87,676 was on deposit in the County's Operating account.
M.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 11- PROVISION FOR CLOSURE COSTS - Continued
A summary of changes in the landfill closure liability account is as follows:
Balance
10/1/2016
Deposits
Balance
Withdrawals 09/30/17
Closure and long-term care costs $ 13,009,736 $ 1,000,000 $ - $ 14,009,736
Of the $14,009,736 liability for closure and long-term care costs, management estimates that
$9,270,090 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 $2,119,700 at September 30, 2017 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 $2,100,000 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 $19,700 and will be paid from
the General Fund.
Total Governmental Activities liability: 12,10 700
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 13 - RETIREMENT PLAN
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 Program). 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. 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 5 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 6 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% of their final
average compensation based on the 5 highest years of salary for each year of credited service.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 13 - RETIREMENT PLAN - Continued
Pension Plan - Continued
Senior Management Service class members who retire at or after age 62 with at least 6 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% of their final average compensation based on the 5 highest years of salary for each
year of credited service. Elected Officers' class members who retire at or after age 62 with at least 6
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% (3.33% for judges and justices) of their final average
compensation based on the 5 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 8 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 3% 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 determined by dividing the sum of the pre -July 2011 service credit by the total
service credit at retirement multiplied by 3%. 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, 2017 were:
Regular class 7.92%, Special Risk 23.27%, Special Risk Administrative Support 34.63%, Senior
Management 22.71%, DROP 13.26%, and Elected Official class 45.50%. 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.
M.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 13 - RETIREMENT PLAN - Continued
Pension Plan - Continued
The County's actuarial contribution to FRS under the Pension Plan for the year ended September 30,
2017, was $9,099,495. Employee contributions for September 30, 2017 were $1,702,222. Both
employer and employee contributions were equal to 100% of the required contribution.
Pension Liabilities, Pension Expense, and Deferred Ou flow of Resources and Deferred Inflow of
Resources Related to Pension Plan: At September 30, 2017, the Division of Retirement calculated the
County's liability of $103,046,280 for the FRS plan for its proportionate share of the net pension
liability. The net pension liability was measured as of June 30, 2017, and the total pension liability
used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2017.
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 June 30, 2017, the County's proportion share was .3484% for
the FRS Pension Plan. This was an increase of 0.0128% from its proportionate share measured as of
June 30, 2016.
We anticipate that the pension liability will be liquidated in the following manner: General Fund 56
percent, Emergency Services District Fund 33 percent, Transportation Fund 4 percent, Enterprise Funds
6 percent, and the remaining 1 percent is by the Other Governmental Funds and Internal Service Funds.
For the year ended September 30, 2017, the County's calculated total increase of actuarially determined
pension expense was $10,755,278. 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
of Resources
9,457,168
34,630,826
5,778,285
Deferred Inflows
of Resources
570,822
2,553,742
2,862,974
2,474,204 -
$ 52,340,483 $ 5,987,538
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 13 - RETIREMENT PLAN - Continued
Pension Plan - Continued
The deferred outflows of resources related to the pension plan totaling $2,474,204 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, 2018. 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:
2018
2019
2020
2021
2022
Thereafter
Total
Actuarial Assumptions
determined using the
measurement:
Amount
Recognized
$ 5,727,299
15,222,752
10,643,763
2,174,772
7,355,536
2,754,619
$ 43,878,741
The total pension liability in the July 1, 2017 actuarial valuation was
following actuarial assumptions, applied to all periods included in the
Valuation date:
Measurement date:
Discount rate:
Long-term expected rate of return:
Inflation:
Salary increase:
Mortality:
Actuarial cost method:
July 1, 2017
June 30, 2017
7.10%
7.10%, 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, 2017 valuation
were based on the results of an actuarial experience study for the period July 1, 2008 through June 30,
2013.
The following changes in actuarial assumptions occurred in 2017:
• The long-term expected rate of return was decreased from 7.60% to 7.10%, and the active
member mortality assumption was updated for the Pension Plan.
M.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 13 - RETIREMENT PLAN - Continued
Pension Plan - Continued
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:
Assumed inflation -mean
2.6% 1.9%
Compound
Annual
Annual
Target
Arithmetic
(Geometric)
Standard
Asset Class
Allocation
Return
Return
Deviation
Cash
1%
3.0%
3.0%
1.8%
Fixed Income
18%
4.5%
4.6%
4.2%
Global Equity
53%
7.8%
6.6%
17.0%
Real Estate (Property)
10%
6.6%
5.9%
12.8%
Private Equity
6%
11.5%
7.8%
30.0%
Strategic Investments
12%
6.1%
5.6%
9.7%
Total
100%
Assumed inflation -mean
2.6% 1.9%
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 13 - RETIREMENT PLAN - Continued
Pension Plan - Continued
Discount Rate for Pension Plan: The discount rate used to measure the total pension liability was
7.10%. 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 net pension
liability (NPL) of the Pension Plan calculated using the discount rate of 7.10%. 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 I% lower or I% higher than the current rate:
1%
Decrease (6.10%)
County's proportionate share of NPL $186,507,544
Current Discount
Rate (7.10%)
$103,046,280
1%
Increase (8.10%)
$33,754,310
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.
MW
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2017
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 Program is administered by the Florida Department of Management Services, Division of
Retirement.
Benefits Provided: For fiscal year ended September 30, 2017, eligible retirees and beneficiaries
received a monthly HIS Program 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 Program
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, 2017, the HIS Program 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 Program contributions
are deposited in a separate trust fund from which payments are authorized. The County's actuarial
contributions to the HIS Program totaled $1,262,482 for the fiscal year ended September 30, 2017.
Pension Liabilities, Pension Expense, and Deferred Ou flow of Resources and Deferred Inflow of
Resources Related to HIS Program: At September 30, 2017, the Division of Retirement calculated the
County's liability of $25,383,666 for its proportionate share of the HIS Program's net pension liability.
The net pension liability was measured as of June 30, 2017, and the total pension liability used to
calculate the net pension liability was determined by an actuarial valuation as of July 1, 2017. At June
30, 2017, the County's proportional share was 0.2374% for the HIS Program. This was an increase of
0.0093% from its proportionate share measured as of June 30, 2016.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 13 - RETIREMENT PLAN - Continued
Retiree Health Insurance Subsidy (HIS) Program - Continued
For the year ended September 30, 2017, the County recognized pension expense of $1,136,113. 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
of Resources
3,568,069
14,076
1,484,392
Deferred Inflows
of R acrnrrrac
$ 52,851
2,194,951
451,320
322,426 -
$ 5,388,963 $ 2,699,122
The deferred outflows of resources related to HIS Program totaling $322,426 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, 2018. 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:
Fiscal Year Ending September 30:
2018
2019
2020
2021
2022
Thereafter
Total
Amount
Recoenized
$ 738,019
733,293
731,025
548,059
216,130
(599,111)
$ 2,367,415
91
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2017
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, 2017 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, 2017
3.58%
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 Program 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 following changes in actuarial assumptions occurred in 2017:
• The municipal rate used to determine the total pension liability was increased from 2.85% to 3.58%.
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, 2017
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 Net Pension
Liability (NPL) of the HIS Program calculated using the discount rate of 3.58%. 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 I% lower or 1 % higher than the current rate:
1% Current Discount 1%
Decrease (2.58%) Rate (3.58%) Increase (4.58%)
County's proportionate share of NPL $28,966,124 $25,383,666 $22,399,676
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, 2017
NOTE 13 - 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. 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, 2017, 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 .06% 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 2016-2017 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%. This inclues the
employee contribution of 3%.
The County's Investment Plan contributions and pension expense totaled $1,593,166 for fiscal year
ended September 30, 2017. Employee contributions totaled $336,346 for the same period.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2017
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
monthly premiums, effective October 1, 2016, range from $366 for single coverage Medicare
participants to $845 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 $10,000.
95
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2017
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
Retirement
Retiree or Spouse
Hired On or
Date
Service
Under Age 65
Medicare Eligible
After 2/1/2006
Before 10/1/2004
No Subsidy
60%*
Less than 15
After 10/1/2004 but on
No Subsidy
20% Subsidy**
or before
years
At least 15
2% per Year of Service
Additional 20% Subsidy
1/31/2009***
No Subsidy
years
(maximum of 40%)
(maximum of 60%)**
Less than 15
No Subsidy
No Subsidy
After 1/31/2009***
years
At least 15
2% per Year of Service
Subsidy Ceases****
years
(maximum of 40%)
*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.
M
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2017
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
f
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 $1,643 per employee, approximately 3.4% 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.
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, 2017, the County contributed $2.3 million to the qualifying
OPEB Trust. Plan members receiving benefits contributed $2.5 million. We anticipate that the OPEB
liability will be liquidated in the following manner: General Fund 56 percent, Transportation Fund 7
percent, Emergency Services District Fund 26 percent, Enterprise Funds 9 percent, Internal Service
Funds 1 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 88% of the required contributions
at September 30, 2017. 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, 2017
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
Percentage of Annual OPEB Cost Contributed
FY 2016/2017 FY 2015/2016 FY 2014/2015
$ 2,583,447
$ 3,096,411 $
2,977,075
(584,100)
(54,895)
(47,722)
994,339
86,643
72,521
2,993,686
3,128,159
3,001,874
(1,772,523)
(11,948,249)
(3,121,416)
1,221,163
(8,820,090)
(119,542)
(9,734,999)
(914,909)
(795,367)
$ (8,513,836)
$ (9,734,999) $
(914,909)
59% 382%
104%
*Retiree adjustments are comprised of the actual amount withdrawn from the OPEB Trust plus
premiums collected and less claims paid. For fiscal year 2017, these adjustments amounted to
($501,818). For fiscal years 2016 and 2015, these adjustments totaled ($148,162) and $144,341
respectfully.
D. Net OPEB Liability
The components of the net OPEB liability of the County at September 30, 2017, were as follows:
Total OPEB Liability $ 41,252,267
Plan fiduciary net position (27,670,462)
County's net OPEB liability 13.581.805
Plan fiduciary net position as a percentage of the total
OPEB liability 67.08%
The net OPEB liability will be reported on the financial statements of the County in fiscal year 2018
upon implementation of Governmental Accounting Standards Board Statement No. 75, Accounting and
Financial Reporting for Postemployment Benefits Other Than Pensions.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 14 — OTHER POSTEMPLOYMENT BENEFITS PLAN - Continued
E. Actuarial Methods and Assumptions
The total OPEB liability was determined by an actuarial valuation as of October 1, 2015, using the
following actuarial assumptions, applied to all periods included in the measurement, unless otherwise
specified:
Methods and Assumptions Used to Determine Net OPEB Liability:
Actuarial Cost Method Entry age normal
Inflation 2.50%
Discount Rate 6.00%
Salary Increases 4.00% to 9.47%, including inflation, varies by plan type
and years of service.
Retirement Age Experience -based table of rates that are specific to the plan
and type of eligibility condition.
Mortality Mortality tables used in the July 1, 2015 actuarial
valuation of the Florida Retirement System. They are
based on the results of a statewide experience study
covering the period 2008 through 2013.
Healthcare Cost Trend Rates Based on the Getzen Model, with trend starting at 7.0%
and gradually decreasing to an ultimate trend rate of
4.55% (including the impact of the excise tax).
Aging Factors Based on the 2013 SOA Study "Health Care Costs - From
Birth to Death".
Expenses Investment expenses are net of the investment returns;
Administrative expenses are included in the premium
costs.
Other Information:
Notes There were no benefit changes during the year.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 14 — OTHER POSTEMPLOYMENT BENEFITS PLAN (OPEB) - Continued
F. Discount Rate
Calculation of the Single Discount Rate
GASB Statement No. 74 includes a specific requirement for the discount rate that is used for the
purpose of the measurement of the Total OPEB Liability. This rate considers the ability of the fund to
meet benefit obligations in the future. To make this determination, employer contributions, employee
contributions, benefit payments, expenses and investment returns are projected into the future. The Plan
Net Position (assets) in future years can then be determined and compared to its obligation to make
benefit payments in those years. As long as assets are projected to be on hand in a future year, the
assumed valuation discount rate is used. in years where assets are not projected to be sufficient to meet
benefit payment,s the use of a municipal bond rate is required, as described in the following paragraph.
The Single Discount Rate (SDR) is equivalent to applying these two rates to the benefits that are
projected to be paid during the different time periods. The SDR reflects (1) the long-term expected rate
of return on OPEB Plan investments (during the period in which the fiduciary net position is projected
to be sufficient to pay benefits) and (2) tax-exempt municipal bond rate based on an index of 20 -year
general obligation bonds with an average AA credit rating as of the measurement date (to the extent that
the contributions for use with the long-term expected rate of return are not met).
For the purpose of this valuation the expected rate of return on OPEB Plan investments is 6%, the
municipal bond rate is 3.50%; and the resulting SDR is 6%.
The County has a policy and a track record of depositing a full amount of the Actuarially Determined
Contribution developed under the Entry Age Method. Consequently, the plan's fiduciary net position is
projected to be sufficient to pay benefits and the resulting SDR is 6%.
G. Sensitivity of Net OPEB Liability
Regarding the sensitivity of the net OPEB liability to changes in the SDR, the following presents the
plan's net OPEB liability, calculated using a SDR of 6%, as well as what the plan's net OPEB liability
would be if it were calculated using a SDR that is one percent lower or one percent higher:
Sensitivity of Net OPEB Liability
to the Single Discount Rate Assumption
Current Single Discount
I% Decrease Rate Assumption 1% Increase
5.00% 6.00% 7.00%
$ 18,090,665 $ 13,581,805 $ 9,561,782
100
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 14 — OTHER POSTEMPLOYMENT BENEFITS PLAN (OPEB) - Continued
G. Sensitivity of Net OPEB Liability - Continued
Regarding the sensitivity of the net OPEB liability to changes in the healthcare cost trend rates, the
following presents the plan's net OPEB liability, calculated using the assumed trend rates as well as
what the plan's net OPEB liability would be if it were calculated using a trend rate that is one percent
lower or one percent higher:
Sensitivity of Net OPEB Liability
to the Healthcare Cost Trend Rate Assumption
Current Healthcare Cost
1% Decrease Trend Rate Assumption 1% Increase
(6% down to 3.55%) (7% down to 4.55%) (8% down to 5.55%)
$ 9,448,756 $ 13,581,805 $ 18,342,324
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 $661,097 and lease expenditures totaled $322,579 for
the year ended September 30, 2017. 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
2018
$ 814,538
2019
817,923
2020
842,281
2021
788,985
2022
802,037
2023-2027
3,143,457
2028-2032
1,534,626
2033-2037
602,249
2038-2042
600,327
2043-2046
392,005
Total future minimum receipts:
$ 10,338,428
The property being leased is included in the statement of net position governmental activities and
business -type activities columns and has a cost of $32,174,685 and a carrying value of $21,929,183.
Current year depreciation on property being leased was $527,237.
101
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2017
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, 2017:
Year
Amount
2018
$ 310,759
2019
171,125
2020
119,196
2021
102,692
2022
10,381
2023-2027
7,500
2028-2032
7,500
2033-2037
7,200
2038-2042
4,800
2043-2047
4,500
2048-2052
2,400
2053-2057
1,500
2058-2062
1,500
2063-2067
1,500
2068-2072
1,500
2073-2076
1,200
Total future minimum lease payments:
$ 755,253
102
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2017
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.
103
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2017
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, 2017, reserve amounts for those funds were:
Budget
Disaster Relief Stabilization Total
General Fund $
5,950,000 $
5,950,000 $
11,900,000
Transportation Fund
800,000
800,000
1,600,000
Emergency Services District Fund
1,900,000
1,900,000
3,800,000
Total $
8,650,000 $
8,650,000 $
17,300,000
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.
D. Fund Balance Deficit
The Metropolitan Planning Organization Fund, a nonmajor Governmental Fund, had a deficit in fund
balance of $283,342 at September 30, 2017. This deficit will be eliminated by grant proceeds in fiscal
year 2018.
104
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 17 — NET POSITION
Net Position Restricted by Enabling Legislation
The government -wide statement of net position for the primary government reports $150,132,598 of
restricted net position, of which $108,881,173 is restricted by enabling legislation.
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:
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 three workers compensation reimbursements totaling $37,463 in
fiscal year 2017, two totaling $49,222 in fiscal year 2016 and three totaling $409,914 in fiscal year
2015.
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. In fiscal year 2017, the County was approved by the insurance carriers to receive $5,688,375 in
insurance recoveries related to Hurricane Matthew damage.
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.
105
10/01/13 to
10/01/14 to
10/01/15 to
10/01/16 to
9/30/2014
9/30/2015
9/30/2016
9/30/2017
Worker's Compensation
$ 500,000
$ 750,000
$ 650,000
$ 650,000
General Liability
200,000
200,000
200,000
200,000
Auto Liability
200,000
200,000
200,000
200,000
Property Damage
200,000
200,000
200,000
200,000
Error or Omissions
200,000
200,000
200,000
200,000
Annual Aggregate
2,000,000
2,000,000
2,000,000
2,000,000
Liquor Liability
1,000,000
1,000,000
N/A
N/A
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 three workers compensation reimbursements totaling $37,463 in
fiscal year 2017, two totaling $49,222 in fiscal year 2016 and three totaling $409,914 in fiscal year
2015.
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. In fiscal year 2017, the County was approved by the insurance carriers to receive $5,688,375 in
insurance recoveries related to Hurricane Matthew damage.
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.
105
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 18 - RISK MANAGEMENT - Continued
General Liability, Property, Worker's Compensation and Medical - Continued
The County has purchased a reinsurance policy to cover claims in excess of these limits. There were
three medical claim reimbursements totaling $61,593 in excess of the $250,000 limit for fiscal year
2017. In fiscal year 2016 there were none and in fiscal year 2015 there were four totaling $382,635.
The claims liability of $8,255,000 reported at September 30, 2017, 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, $2,763,000 will be liquidated over the next twelve months.
Changes in the fund's claim liability amount during the current and prior three fiscal years are as
follows:
Claims
Balance at
Balance
Fiscal Year
Claims
Beginning
2013-2014
$ 8,074,000
2014-2015
8,226,545
2015-2016
8,177,520
2016-2017
8,512,520
Claims
Balance
and Changes
Claims
at Fiscal
in Estimates
Payments
Year End
$ 16,860,869
$ (16,708,324)
$ 8,226,545
17,188,927
(17,237,952)
8,177,520
17,953,550
(17,618,550)
8,512,520
16,364,331
(16,621,851)
8,255,000
Included in the charges to other funds is an amount to fund future catastrophic losses not actuarially
determined and at September 30, 2017, unrestricted net position of $30,558,437 has been designated for
this purpose. The County has elected to accrue the larger of the discounted liability or undiscounted
liability. At September 30, 2017, the undiscounted liability was the greater of the two amounts. The
discount rate used in the calculation was 2%.
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.
106
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 19 - COMMITMENTS AND CONTINGENCIES - Continued
B. Contracts and Other Commitments
The County has various contracts and commitments outstanding at September 30, 2017. 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 58th
Avenue pavement reclamation and resurfacing, CR512 westbound resurfacing from Roseland Road to
US Highway 1 and eastbound resurfacing from Easy Street to US Highway 1, courthouse renovations,
45th Street beautification - Phase II, beach profile surveys and monitoring, as well as a variety of other
road paving and drainage projects. In the Capital Projects Fund, contracts are for the administration
buildings roof replacements, Osprey Acres floway and nature preserve, 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, aquifer wells rehabilitation project, north county water and sewer, and various other water
and sewer projects. In the Internal Service Funds, contracts are for actuarial services and GIS oblique
aerial imagery acquisition.
A summary of these projects at September 30, 2017, is as follows:
Remaining
Total Total Paid as of Balance at
Contract Price September 30, 2017 September 30, 2017
General
$ 1,033,383 $
(436,873) $
596,510
Special Revenue
10,900,046
(8,033,002)
2,867,044
Capital Projects
23,308,141
(11,804,003)
11,504,138
Enterprise
9,991,365
(2,872,836)
7,118,529
Internal Service
435,433
(115,311)
320,122
Total
$ 45,668,368 $
(23,262,025) $
22,406,343
C. Grants
Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor
agencies. If any expenditures are disallowed as a result of these audits, the claims for reimbursement to
the grantor agency would become a liability of the County. In the opinion of management, any such
adjustments would not be significant.
107
Indian River County, Florida
Required Supplementary Information
For the Year Ended September 30, 2017
Schedule of the County's Proportionate Share of the Net Pension Liability
Florida Retirement System (FRS) Defined Benefit Pension Plan
Schedule of the County's Proportionate Share of the Net Pension Liability
Retiree Health Insurance Subsidy (HIS) Program Defined Benefit Pension Plan
County's
Proportionate
FRS Plan
County's
County's
Share of the
Fiduciary Net
Plan Sponsor
Proportion
Proportionate
County's
FRS Net Pension
Position as a
Fiscal Year
Measurement
of the FRS
Share of the
Covered
Liability as a
Percentage of
Ending
Date
Net Pension
FRS Net Pension
Employee
Percentage of
Total Pension
September 30,
June 30,
Liability
Liability
Payroll
Covered Payroll
Liability
2017
2017
0.3484%
$
103,046,280
$
64,801,659
159.02%
83.89%
2016
2016
0.3356%
$
84,737,012
$
60,358,527
140.39%
84.88%
2015
2015
0.3067%
$
39,616,455
$
57,879,163
68.45%
92.00%
2014
2014
0.3018%
$
18,416,343
$
55,095,601
33.43%
96.09%
Schedule of the County's Proportionate Share of the Net Pension Liability
Retiree Health Insurance Subsidy (HIS) Program Defined Benefit Pension Plan
The County implemented GAS13 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, then annual reports.
111:
County's
Proportionate
HIS Plan
County's
County's
Share of the
Fiduciary Net
Plan Sponsor
Proportion
Proportionate
County's
HIS Net Pension
Position as a
Fiscal Year
Measurement
of the HIS
Share of the
Covered
Liability as a
Percentage of
Ending
Date
Net Pension
HIS Net Pension
Employee
Percentage of
Total Pension
September 30,
June 30,
Liability
Liability
Payroll
Covered Payroll
Liability
2017
2017
0.2374%
$
25,383,666
$
75,720,001
33.52%
1.64%
2016
2016
0.2281%
$
26,578,559
$
70,444,190
37.73%
0.97%
2015
2015
0.2232%
$
22,760,252
$
67,812,302
33.56%
0.50%
2014
2014
0.2186%
$
20,441,863
$
64,984,255
31.46%
0.99%
The County implemented GAS13 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, then annual reports.
111:
Indian River County, Florida
Required Supplementary Information
For the Year Ended September 30, 2017
Schedule of the County's Contributions
Florida Retirement System (FRS) Defined Benefit Pension Plan
Schedule of the County's Contributions
Retiree Health Insurance Subsidy (HIS) Program Defined Benefit Pension Plan
FRS
FRS Contributions
FRS
County's
Fiscal Year
Contractually
in Relation to the
Contribution
Covered
FRS Contributions
Ending
Required
Contractually
Deficiency
Employee
as a Percentage of
September 30,
Contribution
Required Contribution
(Excess)
Payroll
Covered Payroll
2017
$
9,099,495
$
9,099,495
$
-
$
64,835,532
14.03%
2016
$
8,660,907
$
8,660,907
$
-
$
61,851,481
14.01%
2015
$
7,503,166
$
7,503,166
$
-
$
57,717,461
13.00%
2014
$
6,760,058
$
6,760,058
$
-
$
56,156,975
11.94%
Schedule of the County's Contributions
Retiree Health Insurance Subsidy (HIS) Program Defined Benefit Pension Plan
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.
109
HIS
HIS Contributions
HIS
County's
Fiscal Year
Contractually
in Relation to the
Contribution
Covered
HIS Contributions
Ending
Required
Contractually
Deficiency
Employee
as a Percentage of
September 30,
Contribution
Required Contribution
(Excess)
Payroll
Covered Payroll
2017
$
1,262,482
$
1,262,482
$
-
$
76,071,289
1.66%
2016
$
1,198,477
$
1,198,477
$
-
$
72,247,706
1.66%
2015
$
918,200
$
918,200
$
-
$
67,455,498
1.36%
2014
$
782,940
$
782,940
$
-
$
66,229,010
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.
109
Indian River County, Florida
Required Supplementary Information
For the Year Ended September 30, 2017
Schedules of Changes in Net OPEB Liability and Related Ratios
Fiscal year ending September 30, 2017
Total OPEB liability
Service cost
$ 673,067
Interest on the total OPEB liability
2,405,638
Changes of benefit terns
-
Difference between expected and
actual experience
-
Changes of assumptions
-
Benefit payments
(2,494,672)
Net change in total OPEB liability
584,033
Total OPEB liability - beginning
40,668,234
Total OPEB liability - ending (a)
$ 41,252,267
Plan fiduciary net position
Employer contributions $ 2,274,341
Nonemployer contributing entities
contributions -
Employee contributions -
OPEB plan net investment income 2,387,483
Benefit payments (2,494,672)
OPEB plan administrative expense -
Other -
Net change in plan fiduciary net position 2,167,152
Plan fiduciary net position - beginning
25,503,310
Plan fiduciary net position - ending (b)
$ 27,670,462
Net OPEB liability - ending (a) - (b)
$ 13,581,805
Plan fiduciary net position as a percentage
of total OPEB liability
67.08%
Covered payroll*
$ 65,923,502
Net OPEB liability as a percentage
of covered payroll
20.60%
Notes to Schedule:
N/A
* Estimate
Note: GASB 74 was implemented in fiscal year 2017. This schedule is being built prospectively.
Ultimately, 10 years of data will be presented.
110
Indian River County, Florida
Required Supplementary Information
For the Year Ended September 30, 2017
Schedule of OPEB Contributions
Actual
Actuarially Contribution Contribution
FY Ending Determined Actual Deficiency Covered as a % of
September 30, Contribution Contribution (Excess) Payroll Covered Payroll
2017 $ 2,583,447 $ 2,274,341 $ 309,106 $ 65,923,502 3.45%
Note: GASB 74 was implemented in fiscal year 2017. This schedule is being built prospectively.
Ultimately, 10 years of data will be presented.
111
Indian River County, Florida
Required Supplementary Information
For the Year Ended September 30, 2017
Notes to Schedule of OPEB Contributions
Valuation Date: October 1, 2015
Notes Actuarially determined contribution rates are calculated as of October 1, the
beginning of the fiscal year preceding the year in which contributions are
reported.
Methods and Assumptions Used to Determine Contribution Rates:
Actuarial Cost Method
Entry Age Normal
Amortization Method
Level Percentage of Payroll, Closed
Remaining Amortization Period
11 years
Asset Valuation Method
Market Value
Inflation
2.50%
Salary Increases
4.00% to 9.47%, including inflation; varies by plan type and years of service.
Investment Rate of Return
6.00%, net of OPEB plan investment expense, including inflation.
Retirement Age
Experience -based table of rates that are specific to the plan and type of
eligibility condition.
Mortality
Mortality tables used in July 1, 2015 actuarial valuation of the Florida
Retirement System. They are based on the results of a statewide experience
study covering the period 2008 to 2013.
Health Care Trend Rates
Based on the Getzen Model, with trend starting at 7.0% and gradually decreasing
to an ultimate trend rate of 4.55% (including the impact of the excise tax).
Aging factors
Based on the 2013 SOA Study "Health Care Costs - From Birth to Death".
Expenses
Investment expenses are net of investment returns;
Administrative expenses are included in the premium costs.
Other Information:
Notes There were no benefit changes during the year.
112
Indian River County, Florida
Required Supplementary Information
For the Year Ended September 30, 2017
Schedule of OPEB Investment Returns Multiyear
FY Ending Annual
September 30, Returnl
2017 9.00%
1 Annual money -weighted rate of return, net of
investment expenses.
Note: GASB 74 was implemented in fiscal year 2017. This schedule is being built prospectively.
Ultimately, 10 years of data will be presented.
113
�OR
114
COMBINING AND INDIVIDUAL
FUND STATEMENTS
AND
SCHEDULES
115
NONMAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
Court Facilities- To account for the court facility surcharge, additional court costs,
the additional recording fee for court technology, and
improvements made to court facilities.
Section 8 Rental Assistance- To account for the provision of rental assistance for low income
housing. Financing is provided by grants from the U.S. Department
of Housing and Urban Development.
Special Law Enforcement- To account for the expenditures 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- To account for the proceeds from the levy of a local option Tourist
Development tax. Funds are used to attract tourism trade and for
the benefit of County residents.
911 Surcharge- To account for the receipt of the 911 surcharge on all telephone
bills of the County. Monies are used to pay the operating costs of
the 911 Emergency Center.
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.
116
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- To account for bequests which may be used for improvements to
the Indian River County Libraries.
Disabled Access Program- To account for fines assessed against individuals for illegal use of
handicapped parking spaces.
Federal/State Grants- To account for revenues and expenditures of various grants from
Federal and State agencies.
Traffic Education Program- To account for the proceeds of an additional $3 add-on to traffic
fines authorized by County Ordinance. Proceeds must be used for
traffic education programs.
117
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 per a lease agreement. Funds are provided from the half -
cent sales tax and a transfer from the Optional Sales Tax Fund.
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.
118
DEBT SERVICE FUNDS
Spring Training Facility Bonds- To account for the accumulation of State assistance and tourist tax
monies pledged to pay the principal, interest, and fiscal charges on
the Spring Training Facility Bonds.
Land Acquisition Bonds- To account for the accumulation of ad valorem taxes to pay the
principal, interest, and fiscal charges related to the Land
Acquisition Bonds 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.
119
Indian River County, Florida
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2017
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
Other deposits
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - insurance recoveries
Unavailable revenue - state and federal grants
Total Deferred Inflows of Resources
FUND BALANCES
Nonspendable:
Inventories
Prepaid items
Restricted for:
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
Voting/election activities
Debt service
Dodgertown repairs/improvements
Committed to:
Environmental conservation/preservation
Law Enforcement/public safety
Assigned to:
Law enforcement/public safety
Unassigned
Total Fund Balances
Total Liabilities and Fund Balances
Revenue
Court Section 8 Rental Special Law
Facilities Assistance Enforcement
$ 646,042 $ 417,068 $ 241,553
- 1,872 -
741 96 283
- 1,185 -
$ 646,783 $ 420,221 $ 241,836
$ 138,817 $ 6,721 $ -
138.817 6.721 -
- 1,185 -
507,966 - -
- 412,315 -
- - 241,836
507,966 413,500 241,836
$ 646,783 $ 420,221 $ 241,836
120
Revenue
$ - $ 58,748 $ 23,712 $ - $ 25,560
- 58,748 23,712 - 25,560
- 8,586
- - 8.586
- 14,346 - -
- - 702,782
- - 1,800,689 249,351 -
735,959 - - -
519,954 - - - -
519,954 735,959 1,815,035 249,351 702,782
$ 519,954 $ 794,707 $ 1,847,333 $ 249,351 $ 728,342
Continued
121
State Housing
Tree Ordinance
Tourist
Initiatives
Fines
Development
911 Surcharge
Drug Abuse
Partnership
$ 519,328 $
793,809
$ 1,764,628 $
249,051
$ 723,492
-
-
-
-
3,915
-
-
66,225
-
-
626
898
2,134
300
935
-
-
14,346
-
-
$ 519,954 $
794,707
$ 1,847,333 $
249,351
$ 728,342
$ - $ 58,748 $ 23,712 $ - $ 25,560
- 58,748 23,712 - 25,560
- 8,586
- - 8.586
- 14,346 - -
- - 702,782
- - 1,800,689 249,351 -
735,959 - - -
519,954 - - - -
519,954 735,959 1,815,035 249,351 702,782
$ 519,954 $ 794,707 $ 1,847,333 $ 249,351 $ 728,342
Continued
121
Indian River County, Florida
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2017
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
Other deposits
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - insurance recoveries
Unavailable revenue - state and federal grants
Total Deferred Inflows of Resources
FUND BALANCES
Nonspendable:
Inventories
Prepaid items
Restricted for:
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
Voting/election activities
Debt service
Dodgertown repairs/improvements
Committed to:
Environmental conservation/preservation
Law Enforcement/public safety
Assigned to:
Law enforcement/public safety
Unassigned
Total Fund Balances
Total Liabilities and Fund Balances
Special Revenue
Metropolitan Multi -
Planning Jurisdictional Native Uplands
Organization Law Enforcement Land Acquisition
$ 13,771 $ 11,111 $ 718,259
413,030 - -
- - 869
7,200 -
$ 434,001 $ 11,111 $ 719,128
$ 120,767 $ $
8,546 - -
175,000 - -
304,313 - -
413,030 - -
413.030
7,200
- - 719,128
(290,542)
(283,342) 11,111 719,128
$ 434,001 $ 11,111 $ 719,128
122
$ 97,238 $ - $ 27,500 $ - $ -
17,504 - - - -
114,742 - 27,500 - -
2,500,000 - 2,593 - -
268,404 - 136,394 - -
2,768,404 - 138,987 - -
60,804 - - -
- - 67,661
10,938,501 - - -
- 1,062,233 - -
- 87 -
10,938,501 60,804 1,062,233 87 67,661
13,821,647 $ 60,804 $ 1,228,720 $ 87 $ 67,661
Continued
123
Special Revenue
CDBG
Neighborhood
Florida Boating
Stabilization
Improvement
Disabled Access
Beach Restoration
Program
Program Library Bequests
Program
$ 10,950,046 $
60,730
$ 1,088,411 $ 87
$ 67,579
2,500,000
-
2,592 -
-
358,443
-
136,395 -
-
13,158
74
1,322 -
82
$ 13,821,647 $
60,804
$ 1,228,720 $ 87
$ 67,661
$ 97,238 $ - $ 27,500 $ - $ -
17,504 - - - -
114,742 - 27,500 - -
2,500,000 - 2,593 - -
268,404 - 136,394 - -
2,768,404 - 138,987 - -
60,804 - - -
- - 67,661
10,938,501 - - -
- 1,062,233 - -
- 87 -
10,938,501 60,804 1,062,233 87 67,661
13,821,647 $ 60,804 $ 1,228,720 $ 87 $ 67,661
Continued
123
Indian River County, Florida
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2017
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
Other deposits
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - insurance recoveries
Unavailable revenue - state and federal grants
Total Deferred Inflows of Resources
FUND BALANCES
Nonspendable:
Inventories
Prepaid items
Restricted for:
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
Voting/election activities
Debt service
Dodgertown repairs/improvements
Committed to:
Environmental conservation/preservation
Law Enforcement/public safety
Assigned to:
Law enforcement/public safety
Unassigned
Total Fund Balances
Total Liabilities and Fund Balances
Revenue
FederaUState Traffic Education
Grants Program Land Acquisition
$ - $ 71,278 $ 108,099
16,200 - -
- 78 131
$ 16,200 $ 71,356 $ 108,230
$ 16,200 $ 1,780 $ 8,215
16,200 1,780 8,215
69,576 -
- - 100,015
- 69,576 100,015
$ 16,200 $ 71,356 $ 108,230
124
Special Revenue
East Gifford
Dodgertown
Clerk Special
Sheriff Special
Stormwater
Vero Lakes Estates
Reserve
Revenue
Revenue
22,365
$ 954,492 $
183,620 $
1,813,598
$ 1,896,768
-
-
3,291
2,250
116,747
11
2,760
-
-
-
-
-
59,072
-
-
27
1,156
-
-
-
-
-
-
-
23,654
-
-
-
103,384
-
$ 22,403
$ 958,408 $
245,983 $
1,919,232
$ 2,037,169
- $ 40 $ 73,126 $ 7,383 $ 253,843
90 7,131
- - 14,695 -
- 40 73,126 22,168 260,974
- 3,291 - -
- - 48,655 - -
- - 51.946 - -
- - 23,654
- - 103,384 -
1,793,680 -
- - 1,369,298
22,403 958,368 - - -
- - 120,911 - -
- - - - 276,135
- - - - 107,108
22,403 958,368 120,911 1,897,064 1,776,195
$ 22,403 $ 958,408 $ 245,983 $ 1,919,232 $ 2,037,169
Continued
125
Indian River County, Florida
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2017
Revenue
LIABILITIES
Supervisor of
Accounts payable $
- $
Elections Special
Street Lighting
-
-
Revenue
Districts
CDBG NSP3 Grant
ASSETS
-
Unearned revenues
Cash and investments
$ 65,024
$ 553,271
$ 68,134
Accounts receivable
-
-
-
Due from other funds
-
3,214
Unavailable revenue - insurance recoveries
Due from other governments
-
-
-
Interest receivable
-
685
81
Inventories
-
-
-
Prepaid items
-
-
-
Total Assets
$ 65,024
$ 557,170
$ 68,215
LIABILITIES
Accounts payable $
- $
9,332 $
Retainage payable
-
-
Due to other funds
-
Due to other governments
-
Unearned revenues
61,227
Other deposits
-
-
Total Liabilities
61,227
9,332 -
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - insurance recoveries
-
- -
Unavailable revenue - state and federal grants
-
- -
Total Deferred Inflows of Resources
FUND BALANCES
Nonspendable:
Inventories
-
Prepaid items
-
- -
Restricted for:
Court -related costs and improvements
-
- -
Housing assistance
-
- 68,215
Law enforcement/public safety
-
- -
Tourism -related activities
-
-
Beach renourishment
-
- -
Boating related projects
-
- -
Library services
-
- -
Land acquisition
-
- -
Stormwater, street lighting, and other special assessments
-
547,838 -
Voting/election activities
3,797
- -
Debt service
-
- -
Dodgertown repairs/improvements
-
- -
Committed to:
Environmental conservation/preservation
-
- -
Law Enforcement/public safety
-
- -
Assigned to:
Law enforcement/public safety
-
- -
Unassigned
-
- -
Total Fund Balances
3,797
547,838 68,215
Total Liabilities and Fund Balances $
65,024 $
557,170 $ 68,215
126
Debt Service
Total
Nonmajor
Spring Training
Land Acquisition
Governmental
Facility Bonds
Bonds
Funds
$ 2,580,659
$ 1,211,721
$ 27,793,994
-
-
2,630,667
-
56,180
62,165
-
-
1,049,365
3,120
1,466
28,262
-
-
23,654
-
-
126,115
$ 2,583,779
$ 1,269,367
$ 31,714,222
868,982
- - 26,050
175,000
7,221
- - 61,227
14,695
- - 1.153.175
2,505,884
- 875,069
- 3,380,953
23,654
- 126,115
2,301,646
1,244,116
- 3,809,522
735,959
10,938,501
- 1,062,233
87
- 100,015
- 1,528,609
- - 3,797
2,583,779 1,269,367 3,853,146
- - 120,911
- 1,239,082
276,135
107,108
- - (290,542)
2,583,779 1,269,367 27,180,094
$ 2,583,779 $ 1,269,367 $ 31,714,222
127
Indian River County, Florida
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended September 30, 2017
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
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
Revenue
Section 8 Rental Special Law
Court Facilities Assistance Enforcement
- 2,220,689 -
555,493 22,121 44,543
- - 13,021
3,789 663 1,319
559,282 2,243,473 58,883
109,994 - -
- 2,301,791 -
585,748 - -
695,742 2,301,791 -
(136,460) (58,318) 58,883
(113,249)
- - (113,249)
(136,460) (58,318) (54,366)
644,426 471,818 296,202
$ 507,966 $ 413,500 $ 241,836
128
Revenue
State Housing
Tree Ordinance Tourist Initiatives
Fines Development 911 Surcharge Drug Abuse Partnership
$ - $ 1,056,662 $ - $ - $
- - 757,552
- 929,891
- - -
- 179,363
148,850 - -
8,672 -
2,792 4,026 10,046
1,436 4,419
- - 123
- -
151,642 1,060,688 767,721
10,108 1,113,673
- - 438,684 - -
- - - 680,615
829,110 - - -
- 829,110 438,684 - 680,615
151,642 231,578 329,037 10,108 433,058
(210,365) - -
- - (210,365)- -
151,642 231,578 118,672 10,108 433,058
368,312 504,381 1,696,363 239,243 269,724
$ 519,954 $ 735,959 $ 1,815,035 $ 249,351 $ 702,782
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, 2017
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
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
Special Revenue
130
1,432,102 - -
15,500 -
173 4,215
1,432,102 15,673 4,215
2,209,444 - -
7,302
2,209,444 - 7,302
(777,342) 15,673 (3,087)
444,320 - -
- (39,116) -
444,320 __(39,116)-
(333,022) (23,443) (3,087)
49,680 34,554 722,215
283( ,342) $ 11,111 $ 719,128
Multi -
Metropolitan
Jurisdictional Native Uplands
Planning
Law Land
Organization
Enforcement Acquisition
130
1,432,102 - -
15,500 -
173 4,215
1,432,102 15,673 4,215
2,209,444 - -
7,302
2,209,444 - 7,302
(777,342) 15,673 (3,087)
444,320 - -
- (39,116) -
444,320 __(39,116)-
(333,022) (23,443) (3,087)
49,680 34,554 722,215
283( ,342) $ 11,111 $ 719,128
Special Revenue
CDBG
Neighborhood Florida Boating
Beach Stabilization Improvement Library Disabled Access
Restoration Program Program Bequests Program
1,056,662 $ - $ - $
231,922 - 75,155 - -
- - - - 326
62,919 361 6,594 8 395
1,915 - 1,600 - -
1,353,418 361 83,349 8 721
1,900 - - -
1,001,882 - 157,487 2,751 -
117,554 - - - -
117,554 - - - -
469,090 (1,539) (74,138) (2,743) 721
10,469,411 62,343 1,136,371 2,830 66,940
10,938,501 $ 60,804 $ 1,062,233 $ 87 $ 67,661
Continued
131
1,001,882
1,900
157,487
2,751 -
351,536
(1,539)
(74,138)
(2,743) 721
117,554 - - - -
117,554 - - - -
469,090 (1,539) (74,138) (2,743) 721
10,469,411 62,343 1,136,371 2,830 66,940
10,938,501 $ 60,804 $ 1,062,233 $ 87 $ 67,661
Continued
131
Indian River County, Florida
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended September 30, 2017
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
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
Revenue
Traffic
Federal/State Education Land
Grants Program Acquisition
894,744 - -
- 65,282 -
378 656
894,744 65,660 656
- 17,002
34,450 -
894,744 - -
894,744 34,450 17,002
- 31,210 (16,346)
- 31,210 (16,346)
38,366 116,361
$ - $ 69,576 $ 100,015
132
East Gifford Vero Lakes
Stormwater Estates
Revenue
Dodgertown Clerk Special Sheriff Special
Reserve Revenue Revenue
$ 13 $
265 $
- $
- $
-
985
245,294
-
-
-
-
-
125,000
-
169,275
-
-
-
433,368
228,666
-
-
-
105,548
79,971
130
5,600
-
4,259
-
-
-
-
-
338,809
1,128
251,159
125,000
543,175
816,721
-
-
-
675,201
-
-
-
-
-
3,049,380
-
13,982
-
-
-
-
-
309,912
-
-
-
-
-
105,973
-
-
13,982
309,912
781,174
3,049,380
1,128
237,177
(184,912)
(237,999)
(2,232,659)
-
(54)
-
(4,465)
125,000
-
- 2,321,646
- -
(5
4,465
125,000
- 2,321,646
1,074
21,329
232,712
725,656
(59,912)
180,823
(237,999) 88,987
2,135,063 1,687,208
$ 22,403 $
958,368 $
120,911 $
1,897,064 $ 1,776,195
Continued
133
Indian River County, Florida
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended September 30, 2017
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
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
Revenue
Supervisor of
Elections Special Street Lighting CDBG NSP3
Revenue Districts Grant
$ - $ 1,730 $ -
- 283,994 -
3,532 348
2,440 38,529
291,696 38,877
239,103 -
- 1,578
134
-
239,103
1,578
-
3,797
-
52,593
-
(7,588)
37,299
-
-
3,797
7,588
-
3,797
-
45,005
502,833
37,299
30,916
$ 3,797 $
547,838 $
68,215
134
Debt Service
Total
Land Nonmajor
Spring Training Acquisition Governmental
Facility Bonds Bonds Funds
$ 704,442 $
4,619,803 $ 7,439,577
-
- 530,273
500,004
- 7,336,334
-
- 1,463,554
-
- 437,170
14,779
19,124 151,961
-
- 383,416
1,219,225
4,638,927 17,742,285
- - 2,994,639
- - 3,488,064
- - 24,304
- - 287,535
- - 3,478
- - 3,877,150
- - 2,301,142
- - 691,721
520,000
4,053,000
4,573,000
330,400
327,120
657,520
850,400
4,380,120
18,898,553
25,802,556
$ 2,583,779 $ 1,269,367 $
27,180,094
368,825
258,807
(1,156,268)
- -
3,012,317
- (103,6
(478,5"1
- 103,674
2,533,806
368,825 155,133
1,377,538
2,214,954 1,114,234
25,802,556
$ 2,583,779 $ 1,269,367 $
27,180,094
135
Indian River County, Florida
Budgetary Comparison Schedule
Court Facilities
For the Year Ended September 30, 2017
REVENUES
Charges for services
Interest
Total revenues
EXPENDITURES
General government
Court related
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
136
223,668
109,994
Variance
Final
Actual
Positive
Budget
Amounts
(Negative)
$ 538,000
$ 555,493
$ 17,493
2,000
3,789
1,789
540,000
559,282
19,282
223,668
109,994
113,674
667,728
585,748
81,980
891,396
695,742
195,654
(351,396)
(136,460)
214,936
351,396
644,426
293,030
$ - $
507,966 $
507,966
Indian River County, Florida
Budgetary Comparison Schedule
Section 8 Rental Assistance
For the Year Ended September 30, 2017
REVENUES
Intergovernmental
Charges for services
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
137
2,687,912
2,301,791
Variance
Final
Actual
Positive
Budget
Amounts
(Negative)
(126,924)
(58,318)
68,606
$ 2,528,988
$ 2,220,689
$ (308,299)
32,000
22,121
(9,879)
-
663
663
2,560,988
2,243,473
(317,515)
2,687,912
2,301,791
386,121
2,687,912
2,301,791
386,121
(126,924)
(58,318)
68,606
126,924
471,818
344,894
$ - $
413,500 $
413,500
Indian River County, Florida
Budgetary Comparison Schedule
Special Law Enforcement
For the Year Ended September 30, 2017
138
Variance
Final
Actual
Positive
Budget
Amounts
(Negative)
REVENUES
Charges for services
$ -
$ 44,543
$ 44,543
Judgments, fines and forfeits
-
13,021
13,021
Interest
-
1,319
1,319
Total revenues
-
58,883
58,883
OTHER FINANCING SOURCES (USES)
Transfers out
(113,250)
x,249
1
Total other financing sources (uses)
(113,250)
(113,249
1
Net change in fund balances
(113,250)
(54,366)
58,884
Fund balances at beginning of year
113,250
296,202
182,952
Fund balances at end of year
$ -
$ 241,836
$ 241,836
138
Indian River County, Florida
Budgetary Comparison Schedule
Tree Ordinance Fines
For the Year Ended September 30, 2017
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
139
Variance
Final Actual Positive
Budget Amounts (Negative)
$ - $ 148,850 $ 148,850
- 2,792 2,792
151,642 151,642
150,000 - 150,000
150,000 - 150,000
(150,000) 151,642 301,642
150,000 368,312 218,312
$ - $ 519,954 $ 519,954
Indian River County, Florida
Budgetary Comparison Schedule
Tourist Development
For the Year Ended September 30, 2017
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
140
Variance
Final Actual Positive
Budget Amounts (Negative)
$ 859,750 $ 1,056,662 $ 196,912
950 4,026 3,076
860,700 1,060,688 199,988
861,153
829,110
32,043
861,153
829,110
32,043
(453)
231,578
232,031
453
504,381
503,928
$ - $
735,959 $
735,959
Indian River County, Florida
Budgetary Comparison Schedule
911 Surcharge
For the Year Ended September 30, 2017
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
141
Final
Budget
Variance
Actual Positive
Amounts (Negative)
$ 674,450 $
757,552 $
83,102
-
10,046
10,046
-
123
123
674,450
767,721
93,271
801,528
438,684
362,844
801,528
438,684
362,844
(127,078)
329,037
456,115
(210,365) (210,365) -
(210,365 21( 0,365) -
(337,443) 118,672 456,115
337,443 1,696,363 1,358,920
$ - $ 1,815,035 $ 1,815,035
Indian River County, Florida
Budgetary Comparison Schedule
Drug Abuse
For the Year Ended September 30, 2017
Variance
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Judgments, fines and forfeits $ - $ 8,672 $ 8,672
Interest - 1,436 1,436
Total revenues - 10,108 10,108
Net change in fund balances - 10,108 10,108
Fund balances at beginning of year - 239,243 239,243
Fund balances at end of year $ - $ 249,351 $ 249,351
142
Indian River County, Florida
Budgetary Comparison Schedule
State Housing Initiatives Partnership
For the Year Ended September 30, 2017
REVENUES
Intergovernmental
Charges for services
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
143
1,186,036
680,615
Variance
Final
Actual
Positive
Budget
Amounts
(Negative)
(269,823)
433,058
702,881
$ 916,213
$ 929,891
$ 13,678
-
179,363
179,363
-
4,419
4,419
916,213
1,113,673
197,460
1,186,036
680,615
505,421
1,186,036
680,615
505,421
(269,823)
433,058
702,881
269,823
269,724
99_
$ - $
702,782 $
702,782
Indian River County, Florida
Budgetary Comparison Schedule
Metropolitan Planning Organization
For the Year Ended September 30, 2017
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
Fund balances at beginning of year
Fund balances at end of year
144
Variance
Final Actual Positive
Budget Amounts (Negative)
$ 1,870,887 $ 1,432,102 $(438,785
1,870,887 1,432,102 (438,785)
2,315,207
2,209,444
105,763
2,315,207
2,209,444
105,763
(444,320)
(777,342)
(333,022)
444,320 444,320 -
444,320 444,320 -
- (333,022) (333,022)
49,680 49,680
$ - $ (283,342_ $ (283,342
Indian River County, Florida
Budgetary Comparison Schedule
Multi -Jurisdictional Law Enforcement
For the Year Ended September 30, 2017
REVENUES
Judgments, fines and forfeits
Interest
Total revenues
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
145
Variance
Final Actual Positive
Budget Amounts (Negative)
$ 10,707 $ 15,500 $ 4,793
- 173 173
10,707 15,673 4,966
(39,118) (39,116) 2
(39,118) (39,116) 2
(28,411) (23,443) 4,968
28,411 34,554 6,143
$ - $ 11,111 $ 11,111
Indian River County, Florida
Budgetary Comparison Schedule
Native Uplands Land Acquisition
For the Year Ended September 30, 2017
REVENUES
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
146
Variance
Final Actual Positive
Budget Amounts (Negative)
$ - $ 4,215 $ 4,215
4,215 4,215
105,000
7,302
97,698
105,000
7,302
97,698
(105,000)
(3,087)
101,913
105,000
722,215
617,215
$ - $
719,128 $
719,128
Indian River County, Florida
Budgetary Comparison Schedule
Beach Restoration
For the Year Ended September 30, 2017
REVENUES
Taxes
Intergovernmental
Interest
Miscellaneous
Total revenues
EXPENDITURES
Culture/recreation
Total expenditures
Excess of revenues over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Total other financing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
147
3,119,757
1,001,882
Variance
Final
Actual
Positive
Budget
Amounts
(Negative)
(1,348,592)
351,536
1,700,128
$ 859,750
$ 1,056,662
$ 196,912
900,000
231,922
(668,078)
9,500
62,919
53,419
1,915
1,915
-
1,771,165
1,353,418
(417,747)
3,119,757
1,001,882
2,117,875
3,119,757
1,001,882
2,117,875
(1,348,592)
351,536
1,700,128
117,554 117,554 -
117,554 117,554 -
(1,231,038) 469,090 1,700,128
1,231,038 10,469,411 9,238,373
$ - $ 10,938,501 $ 10,938,501
Indian River County, Florida
Budgetary Comparison Schedule
CDBG Neighborhood Stabilization Program
For the Year Ended September 30, 2017
REVENUES
Interest
Total revenues
EXPENDITURES
Economic environment
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Variance
Final Actual Positive
Budget Amounts (Negative)
$ - $ 361 $ 361
361 361
62,343 1,900 60,443
62,343 1,900 60,443
(62,343) (1,539) 60,804
62,343 62,343 -
$ - $ 60,804 $ 60,804
Indian River County, Florida
Budgetary Comparison Schedule
Florida Boating Improvement Program
For the Year Ended September 30, 2017
149
Variance
Final
Actual
Positive
Budget
Amounts
(Negative)
REVENUES
Intergovernmental
$ 139,000
$ 75,155
$ (63,845)
Interest
-
6,594
6,594
Miscellaneous
-
1,600
1,600
Total revenues
139,000
83,349
(55,651)
EXPENDITURES
Culture/recreation
360,704
157,487
203,217
Total expenditures
360,704
157,487
203,217
Net change in fund balances
(221,704)
(74,138)
147,566
Fund balances at beginning of year
221,704
1,136,371
914,667
Fund balances at end of year
$ -
$ 1,062,233
$ 1,062,233
149
Indian River County, Florida
Budgetary Comparison Schedule
Library Bequests
For the Year Ended September 30, 2017
150
Variance
Final
Actual
Positive
Budget
Amounts
(Negative)
REVENUES
Interest
$ -
$ 8
$ 8
Total revenues
-
8
8
EXPENDITURES
Culture/recreation
2,830
2,751
79
Total expenditures
2,830
2,751
79
Net change in fund balances
(2,830)
(2,743)
87
Fund balances at beginning of year
2,830
2,830
-
Fund balances at end of year
$ -
$ 87
$ 87
150
Indian River County, Florida
Budgetary Comparison Schedule
Disabled Access Program
For the Year Ended September 30, 2017
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
151
Variance
Final Actual Positive
Budget Amounts (Negative)
$ - $ 326 $ 326
- 395 395
721 721
20,000 - 20,000
20,000 - 20,000
(20,000) 721 20,721
20,000 66,940 46,940
$ - $ 67,661 $ 67,661
Indian River County, Florida
Budgetary Comparison Schedule
Federal/State Grants
For the Year Ended September 30, 2017
152
Variance
Final
Actual
Positive
Budget
Amounts
(Negative)
REVENUES
Intergovernmental
$ 1,648,142
$ 894,744
"753,398
Total revenues
1,648,142
894,744
(753,398)
EXPENDITURES
Human services
1,648,142
894,744
753,398
Total expenditures
1,648,142
894,744
753,398
Net change in fund balances
-
-
-
Fund balances at beginning of year
-
-
-
Fund balances at end of year
$ -
$ -
$ -
152
Indian River County, Florida
Budgetary Comparison Schedule
Traffic Education Program
For the Year Ended September 30, 2017
REVENUES
Judgments, fines and forfeits
Interest
Total revenues
EXPENDITURES
Transportation
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
153
Final
Budget
Variance
Actual Positive
Amounts (Negative)
57,000 $ 65,282 $ 8,282
- 378 378
57,000 65,660 8,660
61,350
34,450
26,900
61,350
34,450
26,900
(4,350)
31,210
35,560
4,350
38,366
34,016
$ - $
69,576 $
69,576
Indian River County, Florida
Budgetary Comparison Schedule
Land Acquisition
For the Year Ended September 30, 2017
154
Variance
Final
Actual
Positive
Budget
Amounts
(Negative)
REVENUES
Interest
$ -
$ 656
$ 656
Total revenues
-
656
656
EXPENDITURES
Physical environment
65,000
17,002
47,998
Total expenditures
65,000
17,002
47,998
Net change in fund balances
(65,000)
(16,346)
48,654
Fund balances at beginning of year
65,000
116,361
51,361
Fund balances at end of year
$ -
$ 100,015
$ 100,015
154
Indian River County, Florida
Budgetary Comparison Schedule
East Gifford Stormwater
For the Year Ended September 30, 2017
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 out
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
Variance
Actual Positive
Amounts (Negative)
$ - $
940
-
13 $
985
130
13
45
130
940
1,128
188
19,880
-
19,880
19,880
-
19,880
(18,940)
1,128
20,068
(60) (54) 6
(60) (541 6
(19,000) 1,074 20,074
19,000 21,329 2,329
$ - $ 22,403 $ 22,403
Indian River County, Florida
Budgetary Comparison Schedule
Vero Lakes Estates
For the Year Ended September 30, 2017
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 out
Total other financing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
156
470,988
13,982
Variance
Final
Actual
Positive
Budget
Amounts
(Negative)
(229,688)
237,177
466,865
$ -
$ 265
$ 265
238,450
245,294
6,844
2,850
5,600
2,750
241,300
251,159
9,859
470,988
13,982
457,006
470,988
13,982
457,006
(229,688)
237,177
466,865
(4,649) 4,465) 184
(4,649) (4465) 184
(234,337) 232,712 467,049
234,337 725,656 491,319
$ - $ 958,368 $ 958,368
Indian River County, Florida
Budgetary Comparison Schedule
Dodgertown Reserve
For the Year Ended September 30, 2017
REVENUES
Intergovernmental
Total revenues
EXPENDITURES
Culture/recreation
Total expenditures
Excess of revenues over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Total other financing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
157
Final Actual
Budget Amounts
Variance
Positive
(Negative)
$ 125,000 $ 125,000 $ -
125,000 125,000 -
309,913
309,912 1
309,913
(184,913)
309,912 1
(184,912) 1
125,000 125,000 -
125,000 125,000 -
(59,913) (59,912) 1
59,913 180,823 120,910
$ - $ 120,911 $ 120,911
Indian River County, Florida
Budgetary Comparison Schedule
Clerk Special Revenue
For the Year Ended September 30, 2017
Variance
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Charges for services
$ 405,000 $
433,368 $
28,368
Judgments, fines and forfeits
105,974
105,548
(426)
Interest
3,575
4,259
684
Total revenues
514,549
543,175
28,626
EXPENDITURES
General government
680,388
675,201
5,187
Court related
105,974
105,973
1
Total expenditures
786,362
781,174
5,188
Net change in fund balances
(271,813)
(237,999)
33,814
Fund balances at beginning of year
271,813
2,135,063
1,863,250
Fund balances at end of year
$ - $
1,897,064 $
1,897,064
158
Indian River County, Florida
Budgetary Comparison Schedule
Sheriff Special Revenue
For the Year Ended September 30, 2017
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
159
Final
Budget
Variance
Actual Positive
Amounts (Negative)
$ 169,275 $
169,275
$ -
215,000
228,666
13,666
70,000
79,971
9,971
346,921
338,809
(8,112)
801,196
816,721
15,525
3,130,000
3,049,380
80,620
3,130,000
3,049,380
80,620
(2,328,804)
(2,232,659)
96,145
2,328,804
2,321,646
(7,158)
2,328,804
2,321,646
(7,158)
-
88,987
88,987
1,687,208 1,687,208
$ - $ 1,776,195 $ 1,776,195
Indian River County, Florida
Budgetary Comparison Schedule
Supervisor of Elections Special Revenue
For the Year Ended September 30, 2017
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
Fund balances at beginning of year
Fund balances at end of year
160
Variance
Final Actual Positive
Budget Amounts (Negative)
$ 25,314 $ - $ (25,314)
25,314 - (25,314)
29,111
- 29,111
29,111
- 29,111
(3,797)
- 3,797
3,797 3,797 -
3,797 3,797 -
- 3,797 3,797
$ - $ 3,797 $ 3,797
Indian River County, Florida
Budgetary Comparison Schedule
Street Lighting Districts
For the Year Ended September 30, 2017
REVENUES
Taxes
Permits, fees and special assessments
Interest
Miscellaneous
Total revenues
EXPENDITURES
Transportation
Total expenditures
Excess of revenues over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
161
Final
Budget
Variance
Actual Positive
Amounts (Negative)
$ - $
1,730 $
1,730
278,568
283,994
5,426
1,207
3,532
2,325
2,318
2,440
122
282,093
291,696
9,603
349,892
239,103
110,789
349,892
239,103
110,789
(67,799)
52,593
120,392
(8,409) (7,588) 821
(8,409) (7,588) 821
(76,208) 45,005 121,213
76,208 502,833 426,625
$ - $ 547,838 $ 547,838
Indian River County, Florida
Budgetary Comparison Schedule
CDBG NSP3 Grant
For the Year Ended September 30, 2017
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
162
Variance
Final Actual Positive
Budget Amounts (Negative)
$ - $ 348 $ 348
38,529 38,529
38,877 38,877
5,000
1,578
3,422
5,000
1,578
3,422
(5,000)
37,299
42,299
5,000
30,916
25,916
$ - $
68,215 $
68,215
Indian River County, Florida
Budgetary Comparison Schedule
Spring Training Facility Bonds
For the Year Ended September 30, 2017
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
163
Variance
Final Actual Positive
Budget Amounts (Negative)
$ 573,166 $ 704,442 $ 131,276
475,000 500,004 25,004
- 14,779 14,779
1,048,166 1,219,225 171,059
520,000
520,000
-
468,000
330,400
137,600
988,000
850,400
137,600
60,166
368,825
308,659
(60,166)
2,214,954
2,275,120
- $
2,583,779 $
2,583,779
Indian River County, Florida
Budgetary Comparison Schedule
Land Acquisition Bonds
For the Year Ended September 30, 2017
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
164
4,053,000
4,053,000
Variance
Final
Actual
Positive
Budget
Amounts
(Negative)
$ 4,533,244
$ 4,619,803
$ 86,559
4,750
19,124
14,374
4,537,994
4,638,927
100,933
4,053,000
4,053,000
-
337,120
327,120
10,000
4,390,120
4,380,120
10,000
147,874
258,807
110,933
(117,313)
(103,674)
13,639
(117,313)
103,6741
13,639
30,561
155,133
124,572
30,561) 1,114,234 1,144,795
$ - $ 1,269,367 $ 1,269,367
Indian River County, Florida
Budgetary Comparison Schedule
Optional Sales Tax Capital Projects Fund
For the Year Ended September 30, 2017
REVENUES
Taxes
Intergovernmental
Interest
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
Variance
Final Actual Positive
Budget Amounts (Negative)
$ 14,535,000 $ 17,623,741 $ 3,088,741
1,439,250 911,341 (527,909)
95,000 447,601 352,601
16,069,250 18,982,683 2,913,433
46,849,215 12,777,795 34,071,420
46,849,215 12,777,795 34,071,420
(30,779,965)
6,204,888
36,984,853
(2,049,473)
�,042,315�
7,158
(2,049,473)
x,042,315)
7,158
(32,829,438)
4,162,573
36,992,011
32,829,438
71,159,819
38,330,381
Fund balances at end of year $ - $ 75,322,392 $ 75,322,392
165
R
166
E-3
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.
167
Indian River County, Florida
Combining Statement of Net Position
Internal Service Funds
September 30, 2017
ASSETS
Current assets:
Cash and investments
Accounts receivable - net
Due from other funds
Due from other governments
Interest receivable
Inventories
Prepaids and other assets
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
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions
NET POSITION
Net investment in capital assets
Unrestricted
Total net position
Fleet Self Information
Management Insurance Technology Totals
$ 256,624 $
29,005,724 $
318,838 $
29,581,186
95,703
154,856
-
250,559
-
311,200
-
311,200
55,832
263
15,505
71,600
428
49,550
541
50,519
203,051
-
-
203,051
-
9,469,611
105,196
9,574,807
611,638
38,991,204
440,080
40,042,922
284,269
19,060
2,657,750
2,961,079
257,732)18(
,988)
2,038,022
2,314,742)
26,537
72
619,728
646,337
638,175
38,991,276
1,059,808
40,689,259
147,626 72,151 277,312 497,089
116,529 58,080
124,927 299,536
- 2,763,000
- 2,763,000
25,140 16,122
37,336 78,598
141,669 2,837,202
162,263 3,141,134
- 1,005
53,305
54,310
- 5,492,000
-
5,492,000
330,348 164,179
618,051
1,112,578
330,348 5,657,184
671,356
6,658,888
472,017 8,494,386
833,619
9,800,022
21,502 10,532 37,561 69,595
26,537 72 619,728 646,337
265,745 30,558,437 (153,788) 30,670,394
$ 292,282 $ 30,558,509 $ 465,940 $ 31,316,731
11M
Indian River County, Florida
Combining Statement of Revenues, Expenses,
and Changes in Fund Net Position
Internal Service Funds
For the Year Ended September 30, 2017
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)
Intergovernmental
Interest income
Loss on disposal of equipment
Total nonoperating revenues (expenses)
Income (loss) before transfers
Transfers in (out)
Change in net position
Total net position - beginning
Total net position - ending
Fleet Self Information
Management Insurance Technology Totals
$ 2,672,410 $ 22,771,709 $ 1,198,438 $ 26,642,557
2,672,410 22,771,709 1,198,438 26,642,557
456,521
1,847,702
1,003,157
3,307,380
2,209,117
17,764,018
446,231
20,419,366
4,836
217
176,382
181,435
2,670,474
19,611,937
1,625,770
23,908,181
1,936
3,159,772
(427,332)
2,734,376
2,949
263
15,505
18,717
1,638
161,671
1,767
165,076
-
-
2,581
(2,581)
4,587
161,934
14,691
181,212
6,523
3,321,706
(412,641)
2,915,588
- 39,496 - 39,496
6,523 3,361,202 (412,641) 2,955,084
285,759 27,197,307 878,581 28,361,647
$ 292,282 $ 30,558,509 $ 465,940 $ 31,316,731
169
Indian River County, Florida
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended September 30, 2017
Fleet Self Information
Management Insurance Technology Totals
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers
$ 2,683,276
$ 22,704,564 $
1,198,438 $
26,586,278
Cash paid to suppliers for goods and services
(2,303,550)
(18,064,845)
(432,276)
(20,800,671)
Cash paid to employees for services
(456,998)
(1,359,170)
(934,252)
(2,750,420)
Net cash provided by (used in) operating activities
(77,272)
3,280,549
(168,090)
3,035,187
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers
-
39,496
-
39,496
Net cash provided by noncapital financing activities
-
39,496
-
39,496
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Purchase of capital assets
(27,998)
-
(303,592)
(331,590)
Net cash provided by (used in) capital and
related financing activities
(27,998)
-
(303,592)
(331,590)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest and dividends on investments
1,634
139,724
2,157
143,515
Net cash provided by investing activities
1,634
139,724
2,157
143,515
Net increase (decrease) in cash and investments
(103,636)
3,459,769
(469,525)
2,886,608
Cash and investments at beginning of year
360,260
25,545,955
788,363
26,694,578
Cash and investments at end of year
$ 256,624
$ 29,005,724 $
318,838 $
29,581,186
Classified as:
Current assets $ 256,624 $ 29,005,724 $ 318,838 $ 29,581,186
170
Indian River County, Florida
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended September 30, 2017
RECONCILIATION OF OPERATING
INCOME (LOSS) TO NET CASH
PROVIDED BY OPERATING ACTIVITIES
Operating income (loss)
Adjustments to reconcile operating income (loss) to
net cash provided by operating activities:
Depreciation
(Increase) decrease in assets:
Accounts receivable
Due from other funds
Due from other governments
Inventories
Deposits
Increase (decrease) in liabilities:
Accounts payable
Claims payable
Net pension liability
Accrued compensated absences
Total adjustments
Net cash provided by (used in) operating activities
NONCASH CAPITAL AND RELATED
FINANCING ACTIVITIES
Fleet Self Information
Management Insurance Technology Totals
$ 1,936 $ 3,159,772 $ (427,332) $ 2,734,376
4,836
217
176,382
181,435
26,725
(108,007)
-
(81,282)
-
38,237
-
38,237
(15,859)
2,625
-
(13,234)
(40,992)
-
-
(40,992)
-
447,530
(69,871)
377,659
(53,441)
(4,673)
83,826
25,712
-
(257,520)
-
(257,520)
25,782
11,498
46,265
83,545
(26,259)
(9,130)
22,640
(12,749)
(79,208)
120,777
259,242
300,811
$ (77,272) $ 3,280,549 $ (168,090) $ 3,035,187
Change in fair value of investments $ 79 $ 9,088 $ 100 $ 9,267
171
E
172
FIDUCIARY FUND
Agency Fund- To account for the assets held solely in a custodial
capacity by the County.
173
Indian River County, Florida
Combining Statement of Changes in Assets and Liabilities
Agency Fund
For the Fiscal Year Ended September 30, 2017
Balance Balance
October 1, September 30,
2016 Additions Deductions 2017
ASSETS
Cash and investments $ 10,684,084 $ 372,850,696 $ 372,916,966 $ 10,617,814
Total assets $ 10,684,084 $ 372,850,696 $ 372,916,966 $ 10,617,814
LIABILITIES
Accounts payable $ - $ 30,559 $ - $ 30,559
Due to other governments 5,373,527 398,155,644 397,343,637 6,185,534
Other deposits held in escrow 5,310,557 21,742,161 22,650,997 4,401,721
Total liabilities $ 10,684,084 $ 419,928,364 $ 419,994,634 $ 10,617,814
174
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
Pae s
Financial Trends (Schedules 1 - 5) 176-186
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) 187-191
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) 192-199
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) 200-201
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) 202-213
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) 214-218
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.
175
Indian River County, Florida
Net Position by Component (Unaudited)
Last Ten Fiscal Years
(accrual basis of accounting)
Governmental activities
Net investment in capital assets $ 445,541,175
Restricted 163,119,085
Unrestricted 55,081,576
Total governmental activities net position $ 663,741,836
Business -type activities
Net investment in capital assets $ 206,069,196
Restricted 75,814,407
Unrestricted 24,624,779
Total business -type activities net position $ 306,508,382
Primary government
Net investment in capital assets $ 651,610,371
Restricted 238,933,492
Unrestricted 79,706,355
Total primary government net position $ 970,250,218
2009 2010 2011
$ 461,709,848 $ 480,243,738 $ 492,300,301
158,306,364 132,928,838 125,452,516
55,914,407 85,810,359 84,860,897
$ 675,930,619 $ 698,982,935 $ 702,613,714
$ 223,273,040 $ 223,375,337 $ 217,876,742
51,021,928 27,898,292 24,230,101
37,122,462 54,592,201 61,041,483
$ 311,417,430 $ 305,865,830 $ 303,148,326
$ 684,982,888 $ 703,619,075 $ 710,177,043
209,328,292 160,827,130 149,682,617
93,036,869 140,402, 560 145,902,3 80
$ 987,348,049 $ 1,004,848,765 $ 1,005,762,040
(A) The County reclassified water and sewer funds from restricted to
unrestricted net position.
176
Schedule 1
2012
2013
2014
2015
2016
2017
$ 509,076,923
$
518,255,719
$
514,764,316
$
520,214,002
$
533,304,941
$
542,933,904
121,189,228
117,321,755
116,203,827
128,580,087
132,069,178
150,132,598
76,523,757
71,830,421
72,873,567
7,158,887
5,985,180
(1,350,721)
$ 706,789,908
$
707,407,895
$
703,841,710
$
655,952,976
$
671,359,299
$
691,715,781
$ 211,631,529
$
210,772,860
$
211,660,190
$
213,114,279
$
206,497,575
$
201,774,405
17,941,773
20,871,037
-(A)
-
-
-
70,286,599
68,686,611
88,420,541
91,057,348
100,336,692
107,047,824
$ 299,859,901
$
300,330,508
$
300,080,731
$
304,171,627
$
306,834,267
$
308,822,229
$ 720,708,452
$
729,028,579
$
726,424,506
$
733,328,281
$
739,802,516
$
744,708,309
139,131,001
138,192,792
116,203,827
128,5 80,087
132,069,178
150,132,598
146,810,356
140,517,032
161,294,108
98,216,235
106,321,872
105,697,103
$ 1,006,649,809
$
1,007,738,403
$
1,003,922,441
$
960,124,603
$
978,193,566
$
1,000,538,010
177
Indian River County, Florida
Changes in Net Position (Unaudited)
Last Ten Fiscal Years
(accrual basis of accounting)
Business -type activities
Water and sewer
2008
2009
2010
2011
Expenses
11,355,697
10,407,437
10,683,984
10,370,476
Governmental activities:
2,775,497
2,937,141
2,715,607
2,537,665
General government
$ 7,416,850
$ 25,837,007
$ 23,506,576
$ 21,324,680
Public safety
70,973,212 (A)
71,221,082
68,235,492
67,393,943
Physical environment
27,974,837
813,580
1,405,690
1,353,074
Transportation
25,742,974
23,711,653
20,861,672
22,300,819
Economic environment
4,583,763 (B)
661,897
2,525,988
2,056,453
Human service
12,590,578
8,453,562
7,370,995
7,762,962
Cultural/recreation
9,510,029
24,559,117(E)
16,009,122
16,484,242
Court related
7,265,471
6,765,203
6,251,773
5,774,032
Interest on long-term debt
2,764,803
2,906,802
2,714,422
2,526,114
Total governmental activities expenses
168,822,517
164,929,903
148,881,730
146,976,319
Business -type activities
Water and sewer
41,354,025 (C)
37,523,097
34,748,276
33,818,640
Solid waste
11,355,697
10,407,437
10,683,984
10,370,476
Golf course
2,775,497
2,937,141
2,715,607
2,537,665
Other
3,010,668
2,168,894
1,858,420
1,623,862
Total business -type activities expenses
58,495,887
53,036,569
50,006,287
48,350,643
Total primary government expenses
$ 227,318,404
$ 217,966,472
$ 198,888,017
$ 195,326,962
Prouram Revenues
Governmental activities:
Charges for services:
General government
$ 6,943,354
$ 6,028,321
$ 5,889,678
$ 5,845,567
Public safety
5,754,082
5,884,118
5,267,209
6,076,085
Physical environment
972,865
636,219
21,006
24,204
Transportation
5,478,734
2,157,456(F)
1,514,132(F)
2,090,194
Human service
331,856
204,299
295,812
346,689
Cultural/recreation
1,730,471
1,322,785
1,328,225
1,340,550
Court related
2,971,093
2,375,430
545,967
501,980
Operating grants and contributions
15,227,659
11,077,388
15,772,265 (G)
7,926,832
Capital grants and contributions
29,165,641(D)
15,032,731
7,016,429 (H)
1,937,488
Total governmental activities program revenues
68,575,755
44,718,747
37,650,723
26,089,589
Business -type activities:
Charges for services:
Water and sewer
27,876,971
26,957,649
27,738,920
27,842,092
Solid waste
10,758,812
9,713,883
8,972,136
9,221,396
Golf course
3,313,994
3,279,135
3,148,029
3,163,062
Other
2,726,888
1,572,693
1,612,870
1,588,934
Operating grants and contributions
217,751
1,194,994
-
-
Capital grants and contributions
10,802,859
3,748,585
1,713,074
1,923,271
Total business -type activities program revenues
55,697,275
46,466,939
43,185,029
43,738,755
Total primary government program revenues
$ 124,273,030
$ 91,185,686
$ 80,835,752
$ 69,828,344
Notes:
(A) Includes full year impact of increase in personnel, raises, and the depreciation and operating cost of new jail.
(B) Piper incentive of $4 million.
(C) Increase in operating costs due to maintenance projects.
(D) Received $16 million grant reimbursements for physical environment grants including beach restoration and stormwater.
(E) Increase due to $5 million contribution towards joint use library and increased depreciation for beach restoration projects.
(F) Decrease due to reduced impact fees collections (slowdown in construction activity).
(G) Received Neighborhood Stabilization Grant of $2.6 million.
(H) Contribution of $4.2 million for Sector 3 beach renourishment from Sebastian Inlet District.
(I) State Shared Revenues reclassified to operating grants and contributions.
178
Schedule 2
2012
2013
2014
2015
2016
2017
$ 19,069,181
$ 20,637,750
$ 22,968,835
$ 24,732,636
$ 27,472,414
$ 25,936,632
66,456,674
66,178,467
66,954,956
66,364,113
77,587,638
83,312,452
2,424,109
1,858,307
1,031,710
1,636,749
1,457,248
2,312,036
23,629,799
26,286,998
23,577,720
25,992,461
28,221,515
28,844,114
1,986,091
2,550,157
1,084,204
421,057
427,227
439,460
7,749,253
6,818,023
7,136,042
7,352,777
7,790,430
8,030,927
18,089,432
19,369,326
16,610,269
17,011,188
14,713,304
16,000,837
5,635,245
5,835,184
6,360,814
6,677,054
7,077,295
7,241,707
2,350,241
2,087,204
1,944,229
1,013,527
938,123
763,636
147,390,025
151,621,416
147,668,779
151,201,562
165,685,194
172,881,801
34,246,967
33,815,749
35,821,287
35,223,882
35,420,291
38,609,232
10,659,004
10,405,143
10,801,408
11,708,383
12,714,713
14,542,100
2,451,603
2,537,525
2,588,424
2,498,397
2,605,612
2,693,389
1,487,515
1,547,815
1,833,528
7,085,190
2,724,650
3,504,086
48,845,089
48,306,232
51,044,647
51,515,852
53,465,266
59,348,807
$ 196,235,114
$ 199,927,648
$ 198,713,426
$ 202,717,414
$ 219,150,460
$ 232,230,608
$ 5,304,385
$ 5,482,814
$ 5,895,424
$ 6,641,363
$ 7,192,821
$ 6,436,467
5,852,093
6,625,924
8,025,849
6,457,584
8,244,224
8,557,148
20,923
5,900
20,970
-
9,153
9,650
2,345,186
2,768,107
3,365,961
4,273,591
4,508,637
4,139,569
358,279
213,485
211,294
277,279
165,041
201,484
1,397,660
1,765,912
1,883,347
1,941,993
2,405,951
2,723,416
414,356
1,301,135
3,592,298
3,308,235
2,394,385
3,214,658
8,230,411
26,921,514(I)
22,229,254
24,872,734
24,587,446
32,161,715
7,053,494
6,681,421
7,521,538
11,671,085
5,969,099
6,820,530
30,976,787
51,766,212
52,745,935
59,443,864
55,476,757
64,264,637
28,361,246
28,522,667
29,565,901
30,089,101
31,089,758
32,020,230
9,582,955
9,998,410
10,272,415
11,455,302
13,345,745
13,784,379
3,216,471
3,072,332
3,080,960
3,235,879
3,230,630
3,219,311
1,735,713
2,018,104
2,417,724
2,958,488
3,406,022
3,742,659
-
-
-
-
-
1,523,631
2,545,759
4,700,473
5,032,042
8,616,416
5,035,914
6,108,117
45,442,144
48,311,986
50,369,042
56,355,186
56,108,069
60,398,327
$ 76,418,931
$ 100,078,198
$ 103,114,977
$ 115,799,050
$ 111,584,826
$ 124,662,964
Continued
179
Net (Expense)/Revenue
Governmental activities
Business -type activities
Total primary government net expenses
General Revenues and Other Changes in Net Position
Governmental activities:
Property taxes, levied for general purposes
Property taxes, levied for debt service
Sales and use taxes
Franchise fees
State shared revenues
Interest earnings
Miscellaneous
Transfers
Total governmental activities
Business -type activities:
State shared revenues
Interest earnings
Miscellaneous
Transfers
Total business -type activities
Total primary government
Change in Net Position
Governmental activities
Business -type activities
Total primary government change in net position
Indian River County, Florida
Changes in Net Position (Unaudited)
Last Ten Fiscal Years
(accrual basis of accounting)
2008 2009
$ (100,246,762) $ (120,211,156)
(2,798,612) (6,569,630)
$ (103,045,374) $ (126,780,786)
$ 92,483,561
7,343,180
20,088,899
9,443,399
11,596,227
10,347,019
2,170,033
2,051,555
155,523,873
5,553,239
85,374
(2,051,555)
3,587,058
$ 159,110,931
55,277,111
788,446
$ 56,065,557
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.
OR
$ 87,265,989
7,131,231
19,292,179
9,670,169
11,227,450
5,747,573
2,018,901
(7,452,905)
134,900,587
417,500
3,685,805
7,893
7,452,905
11,564,103
$ 146,464,690
$ 14,689,431
4,994,473
$ 19,683,904
2010
$ (111,231,007)
(6,821,258)
$ (118,052,265)
$ 78,670,463
5,933,535
19,022,728
9,254,621
17,487,653
2,079,873
2,061,415
(25,965)
134,484,323
1,173,512
70,181
25,965
1,269,658
$ 135,753,981
$ 23,253,316
(5,551,600)
$ 17,701,716
2011
$ (120,886,730)
(4,611,888)
$ (125,498,618)
$ 69,856,750
5,600,767
19,261,033
8,730,861
17,328,867
1,299,894
3,082,481
(643,144)
124,517,509
723,870
562,651 (A)
643,144
1,929,665
$ 126,447,174
$ 3,630,779
(2,682,223)
$ 948,556
Schedule 2
2012
2013 2014
2015
2016
2017
$ (116,413,238)
$ (99,855,204) $ (94,922,844)
$ (91,757,698)
$ (110,208,437)
$ (108,617,164)
(3,402,945)
5,754 (675,605)
4,839,334
2,642,803
1,049,520
$ (119,816,183)
$ (99,849,450) $ (95,598,449)
$ (86,918,364)
$ (107,565,634)
$ (107,567,644)
$ 64,753,566
$ 62,305,177
$ 67,985,321
$ 71,825,109
$ 80,100,810
$ 85,572,692
5,574,183
4,664,885
4,730,556
4,795,927
4,594,381
4,619,804
20,144,820
21,035,360
21,860,958
23,549,042
24,387,340
25,564,904
8,620,401
8,818,952
9,310,711
9,180,652
9,273,567
9,130,133
17,908,806
- (B)
-
-
-
-
668,012
637,099
542,542
1,051,822
1,333,048
1,474,698
3,079,701
2,903,771
2,459,033
1,799,538
5,141,162
2,694,082
(32,957)
-
(44,000)
(3,057,421)
784,452
(82,667)
120,716,532
100,365,244
106, 845,121
109,144,669
125,614,760
128,973,646
600,116
427,041
381,497
625,525
791,683
818,490
8,400
37,812
331
56,887
12,606
37,285
32,957
44,000
3,057,421
(784,452)
82,667
641,473
464,853
425,828
3,739,833
19,837
938,442
$ 121,358,005
$ 100,830,097
$ 107,270,949
$ 112,884,502
$ 125,634,597
$ 129,912,088
$ 4,303,294
$ 510,040
$ 11,922,277
$ 17,386,971
$ 15,406,323
$ 20,356,482
(2,761,472)
470,607
(249,777)
8,579,167
2,662,640
1,987,962
$ 1,541,822 $
$ 980,647
$ 11,672,500
$ 25,966,138
$ 18,068,963
$ 22,344,444
181
Indian River County, Florida
Fund Balances, Governmental Funds (Unaudited)
Last Ten Fiscal Years
(modified accrual basis of accountinO
General Fund
Nonspendable
$
2008
$
2009
Restricted
2010(A)
18,290
2011
General Fund
Committed
21,757,565
21,041,045
Assigned
1,415,000
Reserved
$
8,000,000
$
8,000,000
$
N/A
$
N/A
Unreserved
$
44,874,259
All other governmental funds
47,616,773
N/A
N/A
Total general fund
$
52,874,259
$
55,616,773
$
N/A
$
N/A
All other governmental funds
4,691,573
4,661,146
Assigned
9,471,022
Reserved
$
49,667,320
$
53,252,040
$
N/A
$
N/A
Unreserved, reported in:
140,216,836
Total governmental funds
$
201,984,018
$
N/A
N/A
Special revenue funds
96,950,614
91,600,421
N/A
N/A
Total all other governmental funds
$
146,617,934
$
144,852,461
$
N/A
$
N/A
Total governmental funds
$
199,492,193
$
200,469,234
$
N/A
$
N/A
General Fund
Nonspendable
$
162,760
$
363,619
Restricted
18,290
50,015
Committed
21,757,565
21,041,045
Assigned
1,415,000
1,660,000
Unassigned
33,160,873
33,694,612
Total general fund
$
56,514,488
$
56,809,291
All other governmental funds
Nonspendable
$
2,316,373
$
814,858
Restricted
130,175,284
125,082,370
Committed
4,691,573
4,661,146
Assigned
9,471,022
10,013,457
Unassigned
(1,184,722)
(354,995)
Total all other governmental funds
$
145,469,530
$
140,216,836
Total governmental funds
$
201,984,018
$
197,026,127
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 fiend balance
categories.
(C) Budget appropriation of fund balance to balance budget no longer necessary.
182
Schedule 3
2012 2013 2014 2015 2016 2017
$ 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
$
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
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
$ 311,241
$ 1,224,835
$
1,134,846
$
459,546
$
371,121
$
1,183,875
1,120,087
1,000,000
1,000,000
1,000,000
1,000,000
1,246,278
2,374,790 (B)
2,370,079
1,223,183
1,092,575
1,166,830
1,655,789
1,808,000
900,000
- (C)
-
-
-
48,722,929 (B)
44,385,674
48,320,836
47,727,109
45,909,787
43,334,507
$ 54,337,047
$ 49,880,588
$
51,678,865
$
50,279,230
$
48,447,738
$
47,420,449
$ 557,128
$ 50,788
$
39,337
$
69,907
$
121,906
$
217,550
116,379,943
112,523,743
112,266,321
120,531,318
127,285,732
133,714,625
1,483,393
1,481,312
1,492,929
1,504,391
1,401,530
1,515,217
11,288,602
8,964,238
8,139,695
7,139,358
7,118,688
7,400,390
(202,971)
(339,223)
(201,587)
(439,479)
-
(290,542)
$ 129,506,095
$ 122,680,858
$
121,736,695
$
128,805,495
$
135,927,856
$
142,557,240
$ 183,843,142
$ 172,561,446
$
173,415,560
$
179,084,725
$
184,375,594
$
189,977,689
183
Indian River County, Florida
Changes in Fund Balances, Governmental Funds (Unaudited)
Last Ten Fiscal Years
(modified accrual basis of accounting)
Expenditures
Current:
General government
2008
2009
2010
2011
Revenues
72,907,822
74,813,164
71,489,613
70,432,615
Taxes
$ 130,158,069
$ 113,689,399
$ 103,626,726
$ 94,718,550
Permits, fees, and special assessments
8,397,437
12,433,598
11,322,039
11,189,393
Intergovernmental
54,252,074
34,305,682
37,687,574
30,453,182
Charges for services
18,997,529
16,852,653
14,665,805
15,030,329
Judgments, fines and forfeits
2,403,093
1,792,517
852,012
936,995
Interest
15,777,318
5,721,869
2,061,385
1,173,103
Miscellaneous
3,495,610
2,489,532
2,383,493
4,175,614
Total Revenues
233,481,130
187,285,250
172,599,034
157,677,166
Expenditures
Current:
General government
24,815,255
22,566,113
20,894,116
19,271,196
Public safety
72,907,822
74,813,164
71,489,613
70,432,615
Physical environment
34,324,331
910,213
1,131,173
1,371,734
Transportation
49,503,680
38,111,512
27,497,907
28,432,207
Economic environment
968,227
653,547
2,520,339
2,099,698
Human service
13,862,463
8,621,760
7,267,406
7,625,369
Culture/recreation
23,751,173
15,450,688
18,453,642
14,706,194
Court related
6,649,724
6,620,830
6,214,831
5,983,085
Debt service:
Principal
4,870,876
5,120,000
5,315,000
4,270,000
Interest and fiscal charges
3,255,767
2,948,758
2,758,138
2,562,374
Capital outlay
42,489,997
10,435,212
7,487,068
5,825,287
Total Expenditures
277,399,315
186,251,797
171,029,233
162,579,759
Excess of revenues over
(under) expenditures
(43,918,185)
1,033,453
1,569,801
(4,902,593)
Other Financing Sources (Uses)
Issuance of refunding notes
Payments from capital leases
264,467
-
-
-
Transfers out
(19,736,023)
(14,366,145)
(17,057,014)
(8,918,267)
Payments to refunded bond escrow agent
-
-
-
-
Transfers in
19,629,728
14,309,733
17,001,997
8,862,969
Total other financing sources (uses)
158,172
(56,412)
(55,017)
(55,298)
Net change in fund balances
$_(4 3,760,013)
$ 977,041
$ 1,514,784
$ (4,957,891)
Debt service as a percentage of
noncapital expenditures
4.8%
5.4%
5.6%
5.0%
(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.
I:"
Schedule 4
$ 90,472,569
$ 88,005,422
$ 94,585,345
$ 100,170,078
$ 109,082,531
$ 115,757,400
11,486,235
12,769,844
14,321,389
15,567,731
16,530,179
15,900,775
29,759,832
30,086,479
30,563,650
32,065,821
33,535,027
30,031,350
14,760,125
15,887,241
18,076,888
18,558,182
15,532,928
16,006,929
739,275
778,575
1,004,374
897,860
1,672,773
1,620,964
613,023
570,559
463,274
894,705
1,133,215
1,287,415
5,237,426
3,841,294
3,221,548
2,470,553
8,158,393
6,392,927
153,068,485
151,939,414
162,236,468
170,624,930
185,645,046
186,997,760
20,477,898
19,056,322
20,681,570
22,957,111
22,693,234
24,681,861
67,761,985
66,908,328
67,799,667
71,703,248
77,316,218
83,397,539
1,751,623
771,942
781,306
1,055,021
788,803
1,300,862
29,058,310
28,223,229
23,321,248
27,945,569
27,505,659
26,562,596
2,021,184
2,581,401
1,106,886
436,320
424,593
437,031
6,888,883
6,952,460
7,178,542
7,519,756
7,868,392
8,116,910
13, 808,303
11,53 8,809
11,627,286
15,719,709
13,562,765
12,013,338
5,860,925
6,054,822
6,487,906
6,677,909
6,605,682
6,755,050
8,060,000 (A)
6,050,000 (B)
3,700,000
4,180,000
4,383,000
4,573,000
2,426,083
2,118,704
1,984,616
1,266,070
832,007
657,520
8,108,370
13,037,552
16,560,991
5,309,597 (D)
13,329,391
12,777,795
166,223,564
163,293,569
161,230,018
164,770,310
175,309,744
181,273,502
(13,155,079)
(11,354,155)
1,006,450
5,854,620
10,335,302
5,724,258
-
-
-
20,369,000 (C)
-
-
(11,622,984)
(12,540,187)
(10,244,980)
(11,354,519)
(17,375,606)
(14,453,902)
-
-
-
(20,340,959) (C)
-
-
11,595,078
12,504,699
10,092,644
11,141,023
12,331,173
14,331,739
(27,906)
(35,488)
(152,336)
(185,455)
(5,044,433)
(122,163)
$_(13,182,985)
$ (11,389,643)
$ 854,114
$ 5,669,165
$ 5,290,869
$ 5,602,095
7.6%
6.0%
4.3%
3.8%
3.6°%
3.4%
185
Indian River County, Florida
Tax Revenues by Source, Governmental Funds (Unaudited)
Last Ten Fiscal Years
(A) The County's primary source of revenue is property taxes, amounting to 78 percent of Governmental Funds tax revenues
in 2017. Consequently, supplemental required schedules are provided only for property tax revenues.
I:•
(modified accrual basis of accounting)
Schedule 5
Fiscal Year
Property (A)
Sales & Use
Tourist
Gasoline
Other
Total
2008
$ 99,826,741 $
13,714,228 $
1,584,514 $
3,218,705 $
1,571,452 $
119,915,640
2009
94,397,220
13,023,095
1,294,163
3,369,962
1,604,959
113,689,399
2010
84,603,998
12,660,518
1,324,953
3,498,698
1,538,559
103,626,726
2011
75,457,517
12,942,483
1,487,060
3,346,362
1,485,128
94,718,550
2012
70,327,749
13,708,911
1,604,920
3,329,183
1,501,806
90,472,569
2013
66,970,062
14,422,829
1,743,283
3,303,751
1,565,497
88,005,422
2014
72,715,877
15,228,304
1,918,201
3,294,709
1,428,254
94,585,345
2015
76,621,036
16,190,352
2,267,101
3,672,972
1,418,617
100,170,078
2016
84,695,191
16,858,894
2,433,491
3,741,935
1,353,020
109,082,531
2017
90,192,496
17,623,741
2,817,766
3,821,095
1,302,302
115,757,400
(A) The County's primary source of revenue is property taxes, amounting to 78 percent of Governmental Funds tax revenues
in 2017. Consequently, supplemental required schedules are provided only for property tax revenues.
I:•
Indian River County, Florida
Assessed Value and Actual Value of Taxable Property (Unaudited)
187
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
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
2017 23,725,954,463
675,815,085
24,401,769,548
8,125,447,769
16,276,321,779
4.4335
Source: Indian River County Property Appraiser; values are established as of January 1 of the previous
calendar year, i.e., January 1,
2016 taxable values
apply to the fiscal year ending September 30, 2017.
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.
187
Indian River County, Florida
Property Tax Rates
Direct and Overlapping Tax Rates (Unaudited)
Last Ten Fiscal Years
2008 2009
Countv direct rate
General fund
3.0202
3.0689
Municipal service
1.0835
1.0804
Total direct rate (A)
4.1037
4.1493
County -wide district school board rate
7.5380
7.0400
Other County -wide rates
Emergency Management Services District
1.7201
1.7148
Land acquisition bond
0.4082
0.4220
Total other County -wide rates
2.1283
2.1368
Total County -wide rate (B)
13.7700
13.3261
City rates
Fellsmere
4.4301
4.4300
Indian River Shores
1.3923
1.3923
Sebastian
2.9917
3.3456
Orchid
0.4494
0.4550
Vero Beach
1.9367
1.9367
Average of cities rates
2.2400
2.3119
Other special district rates
1.3817
1.5362
(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
2010
2011
3.0892
3.0892
1.0774
1.0733
4.1666
4.1625
7.5960 8.2500
7148 1 71,19
13.8653
4.4300
1.3923
3.3456
0.4550
1.9367
2.3119
1.7515
14.5360
4.4300
1.4105
3.3041
0.4550
1.9367
2.3073
1.7663
Schedule 7
2012
2013
2014
2015
2016
2017
3.0892
3.0892
3.2620
3.3375
3.3602
3.3602
1.0733
1.0733
1.0733
1.0733
1.0733
1.0733
4.1625
4.1625
4.3353
4.4108
4.4335
4.4335
8.2440
8.3130
8.1160
7.9950
7.9550
7.4100
1.7148
1.7148
1.9799
1.9799
2.2551
2.3010
0.4364
0.3799
0.3788
0.3694
0.3315
0.3143
2.1512
2.0947
2.3587
2.3493
2.5866
2.6153
14.5577
14.5702
14.8100
14.7551
14.9751
14.4588
5.2455
5.4999
5.6190
5.5309
5.2756
4.9599
1.4731
1.4731
1.4731
1.6786
1.6786
1.7186
3.3041
3.7166
3.7166
3.8556
3.8556
3.8556
0.4550
0.5000
0.4864
0.5500
0.7000
1.2500
2.0336
2.0336
2.0336
2.0336
2.3800
2.3800
2.5023
2.6446
2.6657
2.7297
2.7780
2.8328
1.6856
1.6859
1.7128
1.7124
1.6993
1.5170
I :'
Indian River County, Florida
Principal Property Taxpayers (Unaudited)
Year 2017 and Year 2008
Taxpayer
Real
Property
Assessed
Valuation
Florida Power & Light $
140,292,008
Disney Vacation Dev. Inc.
80,101,112
McGuire, Allen Robert Jr.
53,869,142
Windsor Properties
52,586,721
Johns Island Club, Inc.
42,540,303
Adult Community Total Services,
Inc.
31,961,755
Bellsouth Telecommunications
29,480,482
Health Care REIT, Inc.
27,785,306
TSO Vero Beach, LP
24,201,486
INEOS New Planet Bioenergy, LLC
22,751,761
Indian River Mall Association
Shelby Homes
Vero Fashion Outlets, LLC
Total Principal Property Taxpayers
Real Property Assessed Valuation $ 505,570,076
Total County Taxable Valuation $ 16,276,321,779
(from schedule 6)
Source: Indian River County Property Appraiser
2017 2008
Schedule 8
190
3.10 $ 525,681,607 2.82
$ 18,580,296,938
Percentages
Real
Percentages
of Total
Property
of Total
Assessed
Assessed
Assessed
Rank
Valuation
Valuation
Rank
Valuation
1
0.86% $
104,928,490
1
0.56%
2
0.49
78,746,350
2
0.42
3
0.33
-
-
4
0.32
39,635,884
6
0.21
5
0.26
30,348,600
9
0.16
6
0.20
51,323,920
5
0.28
7
0.18
63,036,993
3
0.34
8
0.17
32,828,680
8
0.18
9
0.15
-
-
10
0.14
-
-
-
56,016,550
4
0.30
-
39,492,100
7
0.21
-
29,324,040
10
0.16
190
3.10 $ 525,681,607 2.82
$ 18,580,296,938
Indian River County, Florida
Property Tax Levies And Collections (Unaudited)
Last Ten Fiscal Years Schedule 9
Percent of Percent of
Total Current Current Tax Delinquent Total Total Tax
Tax Tax Collections Tax Tax Collections
Year Levy Collections To Tax Levy Collections (1) Collections To Tax Levy
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
2017 93,167,061 90,100,287 96.71 78,624 90,178,911 96.79
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.
Total tax collections differ from actual collections reported on Schedule 5 due to the exclusion of interest earnings on
collections of $13,585.
191
Indian River County, Florida
Ratios of Outstanding Debt by Type (Unaudited)
Last Ten Fiscal Years
(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 10.
Source of per capita income is University of Florida, Bureau of Economic and Business Research.
192
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)
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
2017
15,653,000 -
6,215,000
-
- 22,031,534
(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 10.
Source of per capita income is University of Florida, Bureau of Economic and Business Research.
192
Schedule 10
193
Percentage
Total
of Total Debt
Debt
Primary
to Personal
Per
Government
Income (E)
Capita (E)
$ 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
0.50
353
43,899,534
(D)
295
193
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
(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.
194
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
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
2017
148,962
16,276,321,779
15,653,000
1,269,367
14,383,633
0.0009
96.5591
(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.
194
Indian River County, Florida
Computation of Legal Debt Margin (Unaudited)
September 30, 2017 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.
195
Indian River County, Florida
Direct and Overlapping Governmental Activities Debt (Unaudited)
September 30, 2017 Schedule 13
Governmental Unit Share of
Debt Percentage Overlapping
Debt repaid with property taxes: Outstanding Applicable Debt
Indian River County Limited General Obligation Refunding Note,
Series 2015 $ 15,653,000 100% $ 15,653,000
Revenue Bonds - Spring Training Facility - Series 2001 6,215,000 100% 6,215,000
Total direct debt of County: 21,868,000
Other debt:
Indian River County School District Certificates of Participation 114,644,311(A) 100% 114,644,311
Total overlapping debt: 114,644,311
Total direct and overlapping debt: $ 136,512,311
(A) Indian River County School District, as of June 30, 2017
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.
196
sN
197
Uniform Charges
Water sales
Wastewater sales
Other
Total uniform charges
Septage/Sludge
Surcharges
Interest earnings
1989/1990 Special assessments
1996 Special assessments
Gross revenues
Less: Direct expenses
Net revenues available
for debt service
Annual debt service
Indian River County, Florida
Pledged Revenue Coverage (Unaudited)
Water and Sewer Revenue Bonds
(Series 1993A, 1996, 2005, 2009)
Last Ten Fiscal Years
$ 13,435,398 $
13,001,743 $
13,570,657 $
13,565,766
12,128,706
11,954,333
12,375,346
12,203,750
1,460,143
1,285,605
1,430,966
1,639,985
27,024,247
26,241,681
27,376,969
27,409,501
256,785
294,459
302,187
314,969
245,343
244,619
245,011
245,245
3,650,480
2,110,031
686,776
491,260
112
413
438
8,718
220,754
184,272
151,316
93,513
31,397,721
29,075,475
28,762,697
28,563,206
17,147,444
17,057,273
16,007,055
15,404,503
$ 14,250,277 $
12,018,202 $
12,755,642 $
13,158,703
Principal $ 2,620,000 $ 2,745,000 $ 2,870,000 $ 2,990,000
Interest 2,922,950 2,047,513 2,510,910 2,324,525
Total debt service payment $ 5,542,950 $ 4,792,513 $ 5,380,910 $ 5,314,525
Debt service coverage 2.57x 2.51x 2.37x 2.48x
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 loss on disposal of equipment.
Note: Water and Sewer debt information can be found in Note 12.
1':
Schedule 14
2012
2013
2014
2015
2016
2017
$ 13,621,878 $
13,667,115 $
14,059,231 $
14,345,074 $
14,829,381 $
15,325,231
12,515,394
12,546,429
12,879,006
13,116,393
13,498,090
13,777,255
1,727,411
1,763,426
2,025,378
2,005,106
2,068,865
2,262,801
27,864,683
27,976,970
28,963,615
29,466,573
30,396,336
31,365,287
373,616
426,634
478,555
483,828
531,432
521,882
246,298
246,363
242,073
98,163
-
-
315,377
239,270
258,741
294,303
363,597
375,208
75,037
69,757
22,091
30,872
31,915
22,440
28,875,011
28,958,994
29,965,075
30,373,739
31,323,280
32,284,817
15,657,085
15,217,294
16,040,433
16,129,860
18,064,619
18,590,922
$ 13,217,926 $
13,741,700 $
13,924,642 $
14,243,879 $
13,258,661 $
13,693,895
$ 3,090,000 $
3,205,000 $
3,350,000 $
3,485,000 $
2,878,000 $
2,992,000
2,193,450
2,080,951
1,937,450
1,827,867
1,095,886
983,267
$ 5,283,450 $
5,285,951 $
5,287,450 $
5,312,867 $
3,973,886 $
3,975,267
2.50x
2.60x
2.63x
2.68x
3.34x
3.44x
199
Indian River County, Florida
Demographic and Economic Statistics (Unaudited)
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.
200
Last Ten Years
Schedule 15
Total
Per Capita
Personal
Personal
Unemployment
Year
Population (A)
Income (B)
Income (B)
Rate (C)
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
10,380,777,000
68,491
6.7
2017
148,962
(D)
(D)
4.6
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.
200
Indian River County, Florida
Principal Employers (Unaudited)
Year 2017 and Year 2008
Schedule 16
4.05%
Indian River County*
2017
2.60
Indian River Medical Center
Percentage
1.93
Number of
of Total County
Employer
Employees
Employment
School District of Indian River County
2,073
3.40%
Indian River Medical Center
1,753
2.88
Indian River County*
1,501
2.46
Publix Supermarkets
1,250
2.05
Piper Aircraft Inc.
904
1.48
Wal-Mart
693
1.14
Sebastian River Medical Center
595
0.98
John's Island
584
0.96
Medical Data Systems
500
0.82
City of Vero Beach
409
0.67
Total
10,262
16.84
Total County Employees
60,921
2008
Percentage
Number of
of Total County
Employer
Employees
Employment
School District of Indian River County
2,295
4.05%
Indian River County*
1,471
2.60
Indian River Medical Center
1,093
1.93
Piper Aircraft Inc.
1,063
1.88
Publix Supermarkets
535
0.94
City of Vero Beach
489
0.86
Sebastian River Medical Center
400
0.71
CVS Warehouse/Distribution
297
0.52
Wal-Mart
293
0.52
John's Island
250
0.44
Total
8,186
14.45
Total County Employees
56.659
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.
201
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
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
2017
1,071
348,481,070
7,342
73,002,815
227 (A)
69,562,947 (A)
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.
(A) Data for the Town of Indian River Shores was only available
through April 30,
2017 due to conversion to
new software.
202
Schedule 17
palities
Countywide
# of
Additions &
# of
New
# of
Additions &
Permits
Alterations
Permits
Construction
Permits
Alterations
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
5,908 (A)
65,096,641
(A) 1,298
418,044,017
13,250
138,099,456
203
Indian River County, Florida
Operating Indicators by Function/Program (Unaudited)
Last Ten Fiscal Years
Function/Program
General Government
Purchasing
Purchase orders issued
Public Safety
Fire rescue
Vehicle rescue response
Fire code inspections
Advanced life support calls
Basic life support calls (transport only)
Sheriff
Arrests
Violent crimes
Non-violent crimes
Total calls for service
Building department
Construction permits issued
Estimated value of construction (millions)
Physical Environment
Solid waste
Waste stream tonnage received
Total recycled material (tons)
Utilities - water & sewer
Number of water customers
Number of wastewater customers
Water ERUs
Wastewater ERUs
Water consumption (Average Daily Demand)
2,520 2,463 1,970 1,805
33,845 (A)
34,480
34,529
37,550
3,527
5,917
2,358
2,239
5,862
9,085
9,751
10,935
5,759
3,486
3,269
3,077
5,620
4,331
5,065
4,464
353
340
310
394
6,383
6,099
5,719
6,058
129,389
138,998
154,480
162,944
857
442
394
416
$ 222.2 $
97.7 $
83.0 $
96.3
239,296
207,344
201,561
180,434
42,088
40,931
45,298
30,424
42,000
42,972
43,723
44,254
25,000
25,192
25,205
25,465
61,558
63,147
64,146
64,391
45,785
45,319
45,427
45,863
8,603,000
8,700,000
8,225,000
8,198,000
Source: Internal reports prepared by the various departments of Indian River County.
204
Schedule 18
2012 2013 2014 2015 2016 2017
1,852 1,740 1,760 1,826 2,033 2,312
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
421
562
95.7 $
159.4 $
41,540
45,485
45,874
47,357
1,753
1,993
2,200
2,500
11,283
11,571
12,428
12,947
3,851
4,180
4,524
4,798
4,262
3,832
3,660
3,922
552
495
548
549
5,853
5,804
5,682
5,501
216,082
250,814
274,464
235,540
611
666
827
1,071
190.8 $
241.1 $
309.0 $
348.4
205,355
211,382
265,278
265,958
279,910
310,007
53,255
50,792
101,444
86,564
98,009
119,773
44,571
45,216
46,223
46,865
48,540
49,176
25,773
26,233
26,948
27,448
28,767
29,229
64,820
65,477
66,261
66,829
72,488
68,506
46,107
46,576
47,027
47,596
53,428
48,748
7,798,000
7,558,000
8,620,000
9,200,000
9,200,000
9,900,000
Continued
205
Indian River County, Florida
Operating Indicators by Function/Program (Unaudited)
Last Ten Fiscal Years
Function/Program
2008
2009
2010
2011
Transportation
Public works
Projects under design
6
29
13
26
Projects awarded for construction
5
5
7
7
Construction projects completed
5
12
6
8
County engineering
Roads designed
8
5
6
4
Miles of roads designed
6.00
5.00
6.00
1.00
Traffic engineering
Site plans reviewed
332
423
271
218
Culture/Recreation
Library
Circulation (County -wide)
1,250,075
1,314,372
1,403,367
1,362,857
Recreation department
Total beach park attendance
415,051
437,302
467,434
449,213
Athletic and event attendance
8,673
14,730
23,750
24,112
Aquatic centers attendance
90,475
89,787
87,107
98,515
Shooting range
Safety/Registration cards issued
6,784
9,050
6,471
8,176
Golf course
Rounds played
104,716
101,810
96,593
94,713
Court Related
Law library
Circulation
21,107
18,512
13,079
9,168
(A) Law library circulation is now included in the County -wide library circulation.
206
Schedule 18
2012
2013
2014
2015
2016
2017
19
20
43
34
13
15
10
5
7
9
3
7
8
5
20
17
17
13
4
6
8
8
6
5
8.00
6.00
8.35
10.00
8.50
11.00
290
357
387
554
412
560
1,277,253
1,300,764 (A)
1,317,458
1,295,310
1,389,188
1,315,425
420,609
404,287
434,397
416,962
669,465
553,630
23,979
23,841
23,900
24,073
24,267
23,974
97,965
97,183
105,459
110,186
116,997
112,308
8,302
8,462
7,911
7,655
5,984
6,867
96,723
91,770
90,306
93,739
91,426
96,332
9,428 N/A (A) N/A N/A N/A N/A
207
Indian River County, Florida
Full -Time Equivalent County Government Employees by Function/Program (Unaudited)
Last Ten Fiscal Years
Source: Indian River County, Florida annual budgets
Method: Using 1.0 for each full-time employee and 0.50 for each part-time employee.
Budgeted temps/seasonal employees are omitted. Totals include unfilled positions.
(A) The fire and advanced life support departments were consolidated on September 18, 2006.
1:
2008
2009
2010
2011
General Government
Board of County Commissioners
11
10
10
10
County Attorney
7
7
6
6
Administration
3
3
2.72
2.35
Financial/Administrative Service
26.5
23
21.5
19.85
Comprehensive Planning
23
19
16
14.32
Other
49
44.5
36.5
34
Clerk of Circuit Court
116
99.5
98.5
98
Property Appraiser
45
40
40
36
Supervisor of Elections
12
9.5
9.5
8
Tax Collector
38
38
38
38
Public Safety
Fire Department
241
240
246
244
Advanced Life Support
Sheriff - Corrections
197
195
198
207
Sheriff - Court Service
29.5
29.5
29.5
29.5
Sheriff - Law Enforcement
301
301
301
301
Building Department
33
18
17
15
Other
12
10
9
6.68
Physical Environment
Solid Waste
51
49
49
10
Utilities - water and sewer
130
128
118
112.5
Other
15
9
9
8
Transportation
Road and Bridges
100
86.5
80
77
County Engineering
42
33
28
27
Traffic Engineering
24
21
21
20
Real Estate Acquisition
3
2
2.28
1
Economic Environment
4.5
3.5
3.5
2.5
Human Services
15
14.5
13
13
Culture/Recreation
Libraries
50
45.5
47.5
46.5
Parks
41
39
37
34
Recreation Department
57.5
46
37.5
33
Coastal Engineering
3
3
2
2
Shooting Range
5.5
5.5
5.5
5
Golf Course
18
16.5
15.5
15.5
Court Related
Law Library
1
1
1
1
Total
1,704.5
1,590.0
1,549.0
1,478.0
Source: Indian River County, Florida annual budgets
Method: Using 1.0 for each full-time employee and 0.50 for each part-time employee.
Budgeted temps/seasonal employees are omitted. Totals include unfilled positions.
(A) The fire and advanced life support departments were consolidated on September 18, 2006.
1:
Schedule 19
2012 2013 2014 2015 2016 2017
8.5
9
9
9
9
9
6
6
6
6
6
6
2.35
2.35
2.35
2.35
2.35
2.35
19.85
19.35
20.85
21.85
22.85
21.85
15
15
14.5
14.5
14.5
15
34.75
33.9
33.4
33.4
33.4
35.4
96
98
93
93
85
86.5
35
35
36
36
39
38
8.5
8.5
9.5
9.5
9.5
10.5
38
44
45
47
47
49
243
243
243
244
265
276
163
163
163
163
168
171
27.5
27.5
27.5
27.5
34
29
303
303
303
303
278
289
14
15
18.5
21.5
25
29.5
6
4
4
4.5
5.5
6
9
9
9
10
10
11
112.5
113.5
116.5
118.5
120.5
122.5
8
7
8
8
10
9
77.25
77.1
78.1
78.1
79.1
79.1
26
24
24
26
26
28
20
19
19
20
21
22
1
1
1
1
1
1
2.5
2.5
2.5
2.5
2.5
2.5
13
12
12
12
12
12
42
41.5
41.5
42
42
42
28
28
28
28
28
30
33.3
32.3
32.8
38.3
38.3
42.3
2
2
2
2
2
2
5
5
5
5
5.5
9.5
15
13.5
13.5
13.5
13
13
1
1
1
1
1
1
1,416.0
1,415.0
1,422.5
1,442.0
1,456.0
1,501.0
209
Indian River County, Florida
Capital Asset Statistics by Function/Program (Unaudited)
Last Ten Fiscal Years
Function/Program
General Government
Facilities Management
Total square footage maintained (A)
Number of facilities and sites maintained (A)
Vehicles
General government
Vehicles
Planning
Vehicles
GIS
Vehicles
Public Safety
Fire department
Vehicles
Fire stations
Advanced life support
Vehicles
E911 Center
Vehicles
Sheriff
Vehicles
Building department
Vehicles
Physical Environment
Solid waste
Vehicles
Telecommunications
Vehicles
Ag Extension
Vehicles
Utilities - Water and Sewer
Vehicles
Water treatment plants
Wastewater treatment facilities
Water main - miles
Force main - miles
Gravity sewer lines - miles
Transportation
Road and bridge
Miles maintained (paved & unpaved)
Bridges maintained
Vehicles
2008 2009 2010 2011
715,215
715,215
715,215
715,215
47
47
47
47
17
15
15
15
28
27
26
31
7
7
7
7
1
1
1
1
53
54
51
51
11
11
12
12
20
20
17
18
1
1
1
1
295
291
288
298
13
9
9
9
32
30
30
1
1
1
1
1
2
2
1
1
82
82
81
81
2
2
2
2
6
6
6
6
780
819
845
839
240
230
226
229
261
262
269
271
625 628 636 636
78 78 78 75
65 65 64 67
Source: Internal reports prepared by the various departments of Indian River County.
(A) The amounts reflected for square footage maintained and number of facilities and sites maintained are only those
structures that the Facilities Management Department maintains. Other structures are maintained by their respective
departments. During fiscal year ending 9/30/2017, the County owned and maintained 250 structures totaling 1,625,853
square feet.
210
Schedule 20
2012
2013
2014
2015
2016
2017
12
12
12
12
13
13
720,215
720,215
720,215
720,215
760,801
881,874
48
48
48
48
66
92
15
15
16
15
15
14
31
30
30
28
26
28
6
5
6
6
6
6
1
1
1
1
1
1
51
46
47
58
60
57
12
12
12
12
13
13
18
19
19
17
19
18
1
1
1
1
1
1
295
274
293
282
323
321
9
9
10
16
25
19
1
1
1
2
2
2
1
1
1
1
1
1
1
1
1
1
1
2
85
79
80
81
81
83
2
2
2
2
2
2
6
6
6
6
6
6
843
847
852
857
859
860
223
225
225
221
223
222
270
273
269
268
267
271
638
650
650
650
653
653
75
71
72
72
72
72
67
64
64
67
63
56
Continued
211
Indian River County, Florida
Capital Asset Statistics by Function/Program (Unaudited)
Last Ten Fiscal Years
Function/Program
2008
2009
2010
2011
Transportation - continued:
Senior Resource Association
7
7
7
7
Vehicles
23
25
32
34
Engineering
2
2
2
2
Vehicles
17
16
16
16
Traffic engineering
Traffic signals operated
133
133
137
137
Beacons operated
41
48
48
53
Vehicles
5
3
1
1
Traffic operations
47
47
47
47
Vehicles
16
15
16
18
Human Services
Health department
Vehicles
16
16
15
15
Animal Control
Vehicles
7
7
7
7
Rental Assistance
Vehicles
2
2
2
2
Culture/Recreation
Libraries
Locations
2
2
3
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
24
25
24
25
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
212
3
3
3
3
3
Schedule 20
2012
2013
2014
2015
2016
2017
34
38
35
35
39
36
13
13
13
14
13
15
137
150
150
150
160
155
46
1
45
1
45
1
43
1
47
1
56
1
18
19
21
20
22
18
17
17
17
17
9
10
7
7
6
6
6
6
2
2
2
2
3
3
3
3
3
3
3
3
12
10
10
11
12
11
47
40
37
37
37
36
4,014
4,014
3,429
3,429
3,429
5,081
69
69
69
69
69
69
8
8
8
8
8
8
24
22
23
20
20
18
5
5
5
7
6
5
1
1
1
1
1
1
29
29
29
29
29
29
35
35
35
35
35
35
36
36
36
36
36
36
2
2
2
2
1
1
213
Indian River County, Florida
Department of Utility Services
Historical Rate Structure (Unaudited)
Last Ten Fiscal Years Schedule 21
WATER RATES
Billing charges
Base facilities charges (per ERU)
Single-family or commercial
Multi -family or manufactured home
Volume charge - per 1,000 gallons (per ERU)
0-3,000 gallons
3,001-7,000 gallons
7,001 gallons and over
Excess volume surcharge - greater than
13,000 gallons per month (per ERU)
Base facilities charge where capacity is reserved
but lines are not yet available (per ERU)
Single-family or commercial
Multi -family or manufactured home
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
Fiscal Years
2008-2017
$ 1.29
7.76
6.60
2.20
2.42
3.85
7.70
3.88
3.30
1.29
14.58
12.40
2.86
2.86
4.29
7.29
6.20
*The last change to the County's water and sewer rates occurred on October 1, 1999.
Source: Indian River County Utilities Department
214
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 2008 through 2017 as set forth below:
Fiscal Year
Water ERUs
Wastewater ERUs
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
2017
68,506
48,748
Source: Indian River County Utilities Department
215
Indian River County, Florida
Top 10 High Volume Customers of Utility Services (Unaudited)
Fiscal Year 2017
Schedule 23
Below is a table depicting the ten highest volume customers of the utility system for the fiscal year ended
September 30, 2017:
Customer
1 Vista Royale
2 Acts, Inc.
3 City of Fellsmere
4 MHC Village Green LLC
5 IRC School Board
6 NHC Fl 1 LP/DBA Encore RV Park
7 IRC Facilities Management
8 Disney's Vero Beach Resort
9 Vista Gardens
10 Pinnacle Grove Ltd
Source: Indian River County Utilities Department
216
Annual Water
Annual Wastewater
Volume
Volume
(x 1,000 gals.)
(x 1,000 gals.)
34,092
34,092
29,199
29,039
-
24,368
22,641
22,641
22,158
17,224
21,103
21,103
17,707
17,707
15,546
15,546
15,489
15,489
15,255
15,255
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
Water Capacity
Charges
Wastewater
Capacity
Charges
Total
Charges
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
2017
980,460
1,409,743
2,390,203
217
Indian River County, Florida
Pledged Revenues for Spring Training Facility Revenue Bonds, Series 2001 (Unaudited)
Last Ten Fiscal Years Schedule 25
Year
Professional
Ended
Sports State
September 30
Subsidy
Tax Collected
Tourist Tax (A)
2008
$ 500,004 $
2009
500,004
2010
500,004
2011
500,004
2012
500,004
2013
500,004
2014
500,004
2015
500,004
2016
500,004
2017
500,004
Total
Tourist
One Cent
Half Cent
Tax Collected
Tourist Tax (A)
Sales Tax (B)
1,584,512 $
396,128 $
7,587,682
1,294,163
323,541
7,000,465
1,324,953
331,238
6,929,458
1,487,061
363,233
7,075,101
1,604,919
401,230
7,412,887
1,743,283
435,821
7,828,550
1,918,200
479,550
8,219,778
2,267,100
566,774
8,684,772
2,433,491
608,373
9,043,910
2,817,766
704,442
9,431,933
(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.
218
R\ehmann
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 14, 2018
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 statements 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 the Indian River County, Florida (the "County"), as of and for the year ended
September 30, 2017, which collectively comprise the County's fund financial statements and have issued
our report thereon dated March 14, 2018.
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 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.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the County's financial statements are free of
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on
the determination of financial statement amounts. However, providing an opinion on compliance with
those provisions was not an objective of our audit and, accordingly, we do not express such an opinion.
Rehmann is an independent member of Nexia International.
CPAs & Consultants Wealth Advisors Corporate Investigators
219
A member of
( Nexia
Internationa
The Honorable Board of County Commissioners
Indian River County, Florida
March 14, 2018
Page 2
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.
44,g rL+"- L LG
220
R\ehmann
MANAGEMENT LETTER
March 14, 2018
The Honorable Board of County Commissioners
and Constitutional Officers
Indian River County, Florida
Report on the Financial Statements
Rehmann Robson
5070 North Highway AIA,
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, 2017, and have issued our report thereon dated
March 14, 2018.
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 for Federal Awards (Uniform Guidance); and Chapter 10.550, Rules of the Auditor
General.
Other Reporting Requirements
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 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 Accountant's Report on an examination conducted in
accordance with AICPA Professional Standards, AT -C Section 315, regarding compliance requirements
in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which
are dated March 14, 2018, should be considered in conjunction with this management letter.
Prior Audit Findings
Section 10.554(1)(i)l., 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
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.
Rehmann is an independent member of Nexia International.
CPAs & Consultants Wealth Advisors Corporate Investigators
221
A member of
Nexia
Internationa
The Honorable Board of County Commissioners
Indian River County, Florida
March 14, 2018
Page 2
Financial Condition and Management
Section 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, require us to apply appropriate
procedures and communicate 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 to identify 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 for the County. 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.
Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any
recommendations to improve financial management. In connection with our audit, we did not have any
such recommendations.
Annual Financial Report
Section 10.554(1)(i)5.b. and 10.556(7), Rules of the Auditor General, require us to apply appropriate
procedures and communicate the results of our determination as to whether the annual financial
report for the County for the fiscal year ended September 30, 2017, 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, 2017. In connection with our audit, we
determined that these two reports were in agreement.
Additional Matters
Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate 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 note 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.
444,X W"'-- LLC
222
R\ehmann
INDEPENDENT ACCOUNTANTS' REPORT
March 14, 2018
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, 2017. 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, 2017.
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.
/ I/
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Rehmann Robson
5070 North Highway A1A,
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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, RULESOF THEAUDITORGENER4L
March 14, 2018
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, 2017, and the related notes to the financial
statements, which collectively comprise the County's basic financial statements. We issued our report
thereon dated March 14, 2018, 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.
4441X rL4w LLC
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Indian River County, Florida
Schedule of Expenditures of Federal Awards and State Projects
For the Fiscal Year Ended September 30, 2017
Federal/State Agency
CFDA/
Contract/
Pass-through Entity
CSFA
Grant
Transfers to
Federal Program/State Project
No.
No.
Expenditures
Subrecipients
Department of Housing and Urban Development:
Direct Programs:
Comm. Dev. Block Grant - Neighborhood Stabilization Pgm #3
B -11 -UN -12-0022
CDBG NSP #3 Program Income Expenditures
14.228
Program Income
$ 1,578
Indirect Programs:
Passed through Florida Dept. of Economic Opportunity:
IODB-4X-10-40-01-F13
CDBG NSP #1 Program Income Expenditures
14.228
Program Income
1,901
Subtotal CFDA - 14.228
3,479
Indirect Program:
Passed through Florida Housing Finance Corporation:
Tenant Based Rental Assistance
14.239
2013-210TBRA
6,396
Direct Programs:
Continuum of Care -
Rental Assistance
14.267
FL0I 13L4H091503
94,272
6,599
Rental Assistance
14.267
FL0I 14L4H091508
50,404
4,887
Rental Assistance
14.267
FL0I 14L4H091609
24,781
Homeless Management Information Systems
14.267
FL0I 16L4H091508
35,400
35,400
Rental Assistance
14.267
FL0I 191,4H091508
240,266
18,601
Rental Assistance
14.267
FL0I 19L4H091609
40,576
Homeless Management Information Systems
14.267
FL0308L4H091507
24,821
24,821
Rental Assistance
14.267
FL0338L4H091502
69,816
4,887
Rental Assistance
14.267
FL0360L4H091506
74,645
6,394
Rental Assistance
14.267
FL0360L4H091607
15,297
Rental Assistance
14.267
FL0380L4H091501
88,116
6,168
Homeless Management Information Systems
14.267
FL0418L4H091402
10,352
10,352
Homeless Management Information Systems
14.267
FL04181,4H091503
17,415
17,415
Rental Assistance
14.267
FL0440L4H091504
82,645
7,506
Rental Assistance
14.267
FL0440L4H091605
25,938
Subtotal CFDA - 14.267
894,744
143,030
Direct Programs:
Section 8 Housing Choice Vouchers
14.871
FL -132 -VO -014 to 017
2,295,395
Total Department of Housing and Urban Development
3,200,014
143,030
U.S. Fish and Wildlife Service
Passed through Florida Fish and Wildlife Conservation:
Shooting Range Hunter Education Classroom
15.611
15120
144,000
Total U.S. Fish and Wildlife Service
144,000
225
Indian River County, Florida
Schedule of Expenditures of Federal Awards and State Projects
For the Fiscal Year Ended September 30, 2017
Federal/State Agency
CFDA/
Contract/
Pass-through Entity
CSFA
Grant
Transfers to
Federal Program/State Project
No.
No.
Expenditures
Subrecipients
Department of Justice:
Indirect Programs:
Passed through Office of the Attorney General:
Crime Victim Assistance Program
16.575
V-2016-IRCSO-00470
$ 88,191
Direct Programs:
State Criminal Alien Assistance Program
16.606
2016 -AP -BX -0357
48,984
Bullet Proof Vest
16.607
FY2015BVP
4,000
2016 Local Solicitation Justice Assistance Grant
16.738
2016 -DJ -BX -0722
23,344
Indirect Programs:
Passed through Florida Department of Law Enforcement:
Bryne Formula Grant Program
Shooting Incident Crime Scene Reconstruction
16.738
2017-JAGC-INRI-5-F9-033
12,228
Subtotal CFDA - 16.738
35,572
Total Department of Justice
176,747
Department of Transportation:
Indirect Programs:
Passed through Florida Department of Transportation:
LAP - Sidewalks 87th Street
20.205
ART06
62,326
LAP - 43rd Ave Sidewalk Improvements
20.205
GOF05
481,634
LAP - 8th Street Sidewalk Improvements
20.205
GOD81
550,243
Metropolitan Planning Organization
20.205
GOB28
363,810
Passed through University of Florida:
Florida Safe Routes to School
20.205
G09E03
48,808
Florida Safe Routes to School
20.205
GON54
1,562
Subtotal CFDA - 20.205
1,508,383
Total Highway Planning and Construction Cluster
1,508,383
Indirect Programs:
Passed through Florida Department of Transportation:
Federal Transit Metropolitan Planning Grant
20.505
G0359
50,033
Section 5311 Non -Urbanized Public Transit
20.509
ARQ46
66,235 $
66,235
Direct Programs:
Federal Transit Formula Section 5309 Grant
20.500
FL -04-0182
975,288
Federal Transit Formula Section 5307 Grant
20.507
FL -2018-003-00
2,274,262
2,274,262
Federal Transit Formula Section 5307 Grant
20.507
FL -2016-033-00
223,507
223,507
Federal Transit Formula Section 5307 Grant
20.507
FL -90-X888
53,087
53,087
Federal Transit Formula Section 5307 Grant
20.507
FL -90-X838
12,159
12,159
Subtotal CFDA - 20.507
2,563,015
2,563,015
Total Federal Transit Cluster
3,538,303
2,563,015
Total Department of Transportation
5,162,954
2,629,250
226
Indian River County, Florida
Schedule of Expenditures of Federal Awards and State Projects
For the Fiscal Year Ended September 30, 2017
Federal/State Agency CFDA/
Pass-through Entity CSFA
Federal Program/State Project 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:
Direct Program from Federal Emergency Management Agency
FEMA Assistance to Firefighters Grant
Indirect Programs:
Passed through Division of Emergency Management:
Disaster Relief Funding - Hurricane Matthew
Emergency Management Performance Grant
Emergency Management Performance Grant
Subtotal CFDA - 97.042
Operation Stonegarden
Operation Stonegarden
Subtotal CFDA - 97.067
Total Department of Homeland Security
TOTAL EXPENDITURES OF FEDERAL AWARDS:
93.563
93.563
Contract/
Grant
No.
00331
COC31
97.044 EMW-2015-FO-05298
97.036 FEMA4283DR
97.042 17 -FG -P9-10-40-01-104
97.042 18 -FG -7A-10-40-01-169
97.067 16 -DS -U8-10-40-02-275
97.067 17-DS-Wl-10-53-02-250
227
Transfers to
Expenditures Subrecipients
$ 2,594
312,877
315,471
815,785
11,402
50,339
25,771
76,110
25,545
17,542
43,087
946,384
$ 9,945,570 $ 2,772,280
Indian River County, Florida
Schedule of Expenditures of Federal Awards and State Projects
For the Fiscal Year Ended September 30, 2017
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
18 -BG -W9-10-53-01-183
$ 20,611
Emergency Management Preparedness and Assistance
31.063
17 -BG -83-10-40-01-037
88,122
Subtotal CSFA - 31.063
108,733
Hazardous Materials Analysis Grant
31.067
17 -CP -11-10-40-01-206
2,835
Total Division of Emergency Management
111,568
Department of Environmental Protection:
Direct Projects:
Hurricane Sandy Beach Project
37.003
14IR2
304,009
Osprey Acres Floway and Nature Preserve
37.039
NS027
74,289
Total Department of Environmental Protection
378,298
Department of Economic Opportunity:
Direct Project:
Countywide Septic to Sewer Study
40.024
P0242
34,950
Total Department of Economic Opportunity
34,950
Florida Housing Finance Corporation:
Direct Projects:
State Housing Initiatives Partnership
40.901
N/A
680,615
Total Florida Housing Finance Corporation
680,615
Department of State:
Direct Project:
State Aid to Libraries
45.030
17 -ST -21
97,005
Total Department of State
97,005
Department of Transportation:
Direct Projects:
Transportation Disadvantaged Planning Grant
55.002
GON55
4,284
Transportation Disadvantaged Planning Grant
55.002
G0053
17,645
Subtotal CSFA - 55.002
21,929
Commuter Assistance Grant
55.007
G0115
41,737 $
41,737
SCOP - Resurfacing Old Dixie Highway
55.009
G0058
369,438
SCOP - Resurfacing CR512
55.009
G0999
1,650,757
Subtotal CSFA - 55.009
2,020,195
Fl Public Transit Block Grant
55.010
ARQ56
598,100
598,100
FDOT Service Development Grant
55.012
GOG90
180,333
180,333
Transit Corridor Grant
55.013
ARE86
126,374
126,374
Vero Beach GoLine Transit Hub
55.014
GOE42
300,000
Total Department of Transportation
3,288,668
946,544
228
Indian River County, Florida
Schedule of Expenditures of Federal Awards and State Projects
For the Fiscal Year Ended September 30, 2017
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 C5031 $ 1,552
Total Department of Health 1,552
Department of Law Enforcement:
Direct Project:
Victim/Witness Protection Award 71.006 6,158
Total Department of Law Enforcement 6,158
Department of Revenue:
Direct Project:
Facilities for Retained Spring Training Franchise 73.016 N/A 500,004
Total Department of Revenue 500,004
TOTAL EXPENDITURES OF STATE FINANCIAL ASSISTANCE:
229
$ 5,098,818 $ 946,544
Indian River County, Florida
Notes to Schedule of Expenditures of Federal Awards
and State Projects
For the Fiscal Year Ended September 30, 2017
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 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 the Uniform Guidance, 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.
E. Indirect Cost Rates
In the absence of a negotiated federal indirect cost rate, the County has elected to use a de minimis rate of
10% of modified total direct costs.
230
Indian River County, Florida
Notes to Schedule of Expenditures of Federal Awards
and State Projects
For the Fiscal Year Ended September 30, 2017
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
F. Reconciliation to the Basic Financial Statements
The Federal Emergency Management Agency (FEMA) requires that reimbursable disaster related
expenditures only be reported on the Schedule of Expenditures of Federal Awards (SEFA) in the fiscal
year the related project worksheet (PW) was approved. A reconciliation of the SEFA to the expenditures
reported in the financial statements is as follows:
Disaster Relief Funding Expenditures — Hurricane Matthew $ 1,892,066
Less: Hurricane Matthew PWs Not Approved in FY 2017 (1,880,664)
Disaster Relief Funding Expenditures — Hurricane Irma 1,992,638
Less: Hurricane Irma PWs Not Approved in FY 2017 (1,992,638)
Expenditures per SEFA $ 11,402
231
R\ehmann
Rehmann Robson
5070 North Highway A1A,
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx:772.234.8488
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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, RULESOF THEAUUTOR GENERAL
March 14, 2018
The Honorable Board of County Commissioners
and Constitutional 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, 2017. The County's major federal programs and state projects are identified
in the summary of auditors' results section of the accompanying schedule of findings and questioned
costs.
Management's Responsibility
Management is responsible for compliance with the requirements of laws, 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 compliance in accordance with auditing standards generally accepted in the United States of America;
the standards applicable to financial audits contained in Government Auditing Standards issued by the
Comptroller General of the United States; 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. Those standards and Uniform Guidance
require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance
with the types of compliance requirements referred to above that could have a direct and material effect
on a major federal program or 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 believe that our audit provides a reasonable basis for our opinion on compliance 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 14, 2018
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, 2017.
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.
444e, W")A- LLC
233
INDIAN RIVER COUNTY, FLORIDA
Schedule of Findings and Questioned Costs
For the Year Ended September 30, 2017
SECTION I - SUMMARY OF AUDITORS' RESULTS
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 Proiects
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
14.871
97.044
CSFA Number
37.003
55.009
55.013
55.014
Dollar threshold used to distinguish
between Type A and Type B programs:
Auditee qualified as low-risk auditee?
234
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
Section 8 Housing Choice Vouchers
Assistance to Firefighters Grant
Name of State Proiect
Beach Management Funding Assistance Program
Small County Outreach Program
Transit Corridor Development Program
Intermodal Access Development Program
$ 750,000 (Federal and State)
X yes no
INDIAN RIVER COUNTY, FLORIDA
. Schedule of Findings and Questioned Costs
For the Year Ended September 30, 2017
SECTION II - FINANCIAL STATEMENT FINDINGS
None noted.
SECTION III - FEDERAL AWARD AND STATE PROJECT FINDINGS AND QUESTIONED COSTS
None noted.
235
INDIAN RIVER COUNTY, FLORIDA
Summary Schedule of Prior Audit Findings
For the Year Ended September 30, 2017
None noted.
236
JEFFREY R. SMITH, CPA, CGFO, CGMA
Clerk of Circuit Court and Comptroller
Comptroller Division
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 governmental 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, Florida Statutes.
FURTHER AFFIANT SAYETH NAUGHT.
(Chie t tc' fncer of the En ty)
STATE OF FLORIDA, COUNTY OF INDIAN RIVER
SWORN TO AND SUBSCRIBED before me 's Ola y of 2018.
r
N&JARY PUBLIC Print � ((� ( �/
e �lC�el�� Kl(1Q
Personally known V or produced identification
Type of identification produced:
My Commission Expires: aOd
237
&ELLE KI&C
S��
* '• oc 036N4 '
\LO�RIO%
I
i3
BOARD OF COUNTY COMMISSIONERS
239
R\ehmann
INDEPENDENT AUDITORS' REPORT
March 14, 2018
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, 2017, 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 of 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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The Honorable Board of County Commissioners
Indian River County, Florida
March 14, 2018
Page 2
Opinion
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 as of September 30, 2017, 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, 2017, 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 14,
2018, on our consideration of the Board'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's internal control
over financial reporting and compliance.
444e, rL4Y--LLC
241
Indian River County, Florida
Board of County Commissioners
Balance Sheet
Governmental Funds
September 30, 2017
ASSETS
Cash and investments
Accounts receivable
Special assessments receivable
Due from other funds
Due from other governments
Interest receivable
Inventories
Prepaids and other assets
Advances to other funds
Total assets
LIABILITIES
Accounts payable
Retainage payable
Due to other funds
Due to other governments
Unearned revenues
Other deposits
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - special assessments
Unavailable revenue - ambulance services
Unavailable revenue - insurance recoveries
Unavailable revenue - state and federal grants
Total deferred inflows of resources
FUND BALANCES
Nonspendable:
Inventories
Prepaid items
Advances to other funds
Restricted for:
Transportation/road improvements
Court -related costs and improvements
Housing assistance
Law enforcement/public safety
Fire/emergency services
Tourism -related activities
Beach renourishment
Boating related projects
Library services
Land acquisition
Stormwater, street lighting, and other special assessments
Debt service
Capital projects
Dodgertown repairs/improvements
Parks/recreational projects
Committed to:
Economic incentives
Environmental conservation/preservation
Law enforcement/public safety
Library services
Parks/recreational projects
Assigned to:
Transportation/road improvements
Unassigned
Total fund balances
Total liabilities, deferred inflows and fund balances
Secondary
Impact Roads
General Fees Construction
$ 43,683,841 $
15,542,869 $
11,295,658
685,993
-
-
514,073
-
-
7,599,924
64,063
1,925,293
62,521
19,144
14,194
47,377
-
-
56,421
- -
-
912,103
-
-
$ 53,562,253 $
15,626,076 $
13,235,145
$ 1,881,419 $ 320,229 $ 1,585,439
- 146,606 261,435
30,314 72,820 -
284,099 - -
21,235 - -
2,217,067 539,655 1,846,874
69,829 -
3,854,908 - 1,507,505
3,924,737 1,507,505
47,377
- -
56,421
-
912,103
- -
-
10,642,241 9,880,766
429,669 -
48,575
763,327 -
970,691 -
1,246,278
2,231,918 -
1,297,240
- -
7,010
-
224,517
- -
127,022
-
43,502,481 - -
47,420,449 15,086,421 9,880,766
$ 53,562,253 $ 15,626,076 $ 13,235,145
The accompanying notes are an integral part of the financial statements.
242
$ 801,395 $
Emergency
Optional
Other
Total
-
Services
Sales
Governmental
Governmental
Transportation
District
Tax
Funds
Funds
-
-
100,015
-
103,134
$ 7,749,242 $
8,542,739 $
75,736,067
$ 23,833,293
$ 186,383,709
263,526
2,205,477
2,380,217
2,511,670
8,046,883
191,266
-
-
-
191,266
-
-
-
-
514,073
632,725
822,248
2,029,950
1,296,841
14,371,044
169,032
11,609
92,953
28,262
397,715
-
-
-
-
47,377
1,285
66,496
-
22,731
146,933
-
-
2,584,244
-
912,103
$ 9,007,076 $
11,648,569 $
80,239,187
$ 27,692,797
$ 211,011,103
$ 801,395 $
1,143,638 $
2,030,455 $
607,756 $
8,370,331
-
-
302,096
26,050
736,187
-
10,938,501
-
175,000
175,000
-
-
100,015
-
103,134
-
20,315
-
-
304,414
-
-
3,478,196
-
21,235
801,395
1,163,953
2,332,551
808,806
9,710,301
350,953
-
-
-
350,953
-
2,203,636
-
-
2,203,636
260,281
-
2,380,217
2,505,884
5,216,211
299,880
487,980
204,027
875,069
7,229,369
911,114
2,691,616
2,584,244
3,380,953
15,000,169
47,377
1,285 66,496 - 22,731 146,933
- - - 912,103
20,523,007
507,966
507,966
- 1,244,116
1,244,116
- 2,440,224
2,869,893
7,726,504 - -
7,775,079
- - 735,959
735,959
- - 10,938,501
10,938,501
- - 1,062,233
1,062,233
- - 87
763,414
- - 100,015
100,015
- - 1,528,609
1,528,609
- - 3,853,146
3,853,146
- 75,322,392 -
76,293,083
- - 120,911
120,911
-
3,478,196
1,297,240
1,239,082 1,239,082
- 7,010
224,517
127,022
7,293,282 - - - 7,293,282
- - - (290,542) 43,211,939
7,294,567 7,793,000 75,322,392 23,503,038 186,300,633
$ 9,007,076 $ 11,648,569 $ 80,239,187 $ 27,692,797 $ 211,011,103
243
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, 2017
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
Capital projects
Total expenditures
Excess of revenues over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
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
Secondary
Impact Roads
General Fees Construction
$ 59,268,103 $
- $
3,821,095
9,407,266
5,703,909
-
15,878,501
-
1,635,138
2,254,972
-
-
331,477
-
-
356,494
89,823
72,527
4,913,199
284,695
43,071
92,410,012
6,078,427
5,571,831
10,025,290
748,395 -
4,227,255
1,046,861 -
378,006
- -
4,539,860
2,288,833 7,032,264
433,553
- -
4,239,760
- -
9,611,836
100,360 -
277,111
- -
33,732,671 4,184,449 7,032,264
58,677,341 1,893,978 (1,460,433)
(9,913,479) - (444,320)
(49,791,151) (895,000) -
(59,704,630) (895,000) (444,320)
(1,027,289) 998,978 (1,904,753)
48,447,738 14,087,443 11,785, 519
$ 47,420,449 $ 15,086,421 $ 9,880,766
The accompanying notes are an integral part of the financial statements.
244
291,929 - - 2,319,438
Emergency
Optional
Other
Total
1,300,862
Services
Sales
Governmental
Governmental
Transportation
District
Tax
Funds
Funds
862,859
(593,813)
- $
27,604,884 $
17,623,741
$ 7,439,577
$ 115,757,400
259,327
-
-
530,273
15,900,775
3,222,357
871,613
911,341
7,167,059
29,686,009
108,454
6,354,017
-
801,520
9,518,963
-
1,600
-
251,651
584,728
49,128
87,302
447,601
147,702
1,250,577
562,274
103,828
-
44,607
5,951,674
4,201,540
35,023,244
18,982,683
16,382,389
178,650,126
291,929 - - 2,319,438
13,385,052
- 32,705,100 - 438,684
38,417,900
898,552 - - 24,304
1,300,862
12,414,104 - - 287,535
26,562,596
- - - 3,478
437,031
- - - 3,877,150
8,116,910
- - - 2,301,142
12,013,338
- - - 585,748
862,859
- 4,573,000 4,573,000
- - 657,520 657,520
- - 12,777,795 - 12,777,795
13,604,585 32,705,100 12,777,795 15,067,999 119,104,863
(9,403,045) 2,318,144 6,204,888
1,314,390 59,545,263
9,756,429
-
-
686,874
10,443,303
(82,667)
-
(125,000)
-
(10,565,466)
-
(593,813)
(1,917,315)
(478,511)
(53,675,790)
9,673,762
(593,813)
(2,042,315)
208,363
(53,797,953)
270,717
1,724,331
4,162,573
1,522,753
5,747,310
7,023,850
6,068,669
71,159,819
21,980,285
180,553,323
7,294,567 $ 7,793,000 $ 75,322,392 $ 23,503,038 $ 186,300,633
245
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, 2017
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)
Variance with
Final Budget
Budgeted mounts Actual Positive
Original Final Amounts (Negative)
$ 58,366,968 $ 58,366,968 $ 59,268,103 $ 901,135
9,017,875
9,017,875
9,407,266
389,391
12,508,196
15,898,146
15,878,501
(19,645)
2,084,387
2,200,287
2,254,972
54,685
344,399
344,399
331,477
(12,922)
142,595
142,595
356,494
213,899
4,080,423
4,094,423
4,913,199
818,776
86,544,843
90,064,693
92,410,012
2,345,319
10,231,095
11,414,212
10,025,290
1,388,922
4,157,058
4,434,106
4,227,255
206,851
323,682
421,305
378,006
43,299
800,000
5,549,941
4,539,860
1,010,081
432,221
441,174
433,553
7,621
4,368,656
4,514,279
4,239,760
274,519
9,705,321
10,678,806
9,611,836
1,066,970
279,481
288,911
277,111
11,800
30,297,514
37,742,734
33,732,671
4,010,063
56,247,329 52,321,959 58,677,341 6,355,382
Transfers out
(9,913,479)
(9,913,479)
(9,913,479) -
Transfers to constitutional officers
(49,144,016
(50,006,845)
(49,791,151) 215,694
Total other financing sources (uses)
(59,057,495)
(59,920,324)
(59,704,630) 215,694
Net change in fund balances
(2,810,166)
(7,598,365)
(1,027,289) $ 6,571,076
Fund balances at beginning of year 2,810,166 7,598,365 48,447,738
Fund balances at end of year $ - $ - $ 47,420,449
The accompanying notes are an integral part of the financial statements.
246
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, 2017
REVENUES
Permits, fees and special assessments
Interest
Miscellaneous
Total revenues
EXPENDITURES
General government
Public safety
Transportation
Culture/recreation
Total expenditures
Excess of revenues over (under) expenditures
OTHER FINANCING SOURCES (USES)
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
224,271
1,074,957
748,395
Variance
1,025,000
1,046,861
1,046,861
with Final
6,047,000
10,419,585
2,288,833
Budget
Budgeted Amounts
Actual
Positive
Original al
Final
Amounts
(Negative)
8,856,954
$ 3,562,500 $
3,562,500 $
5,703,909
$ 2,141,409
33,250
33,250
89,823
56,573
-
-
284,695
284,695
3,595,750
3,595,750
6,078,427
2,482,677
224,271
1,074,957
748,395
326,562
1,025,000
1,046,861
1,046,861
-
6,047,000
10,419,585
2,288,833
8,130,752
525,000
500,000
100,360
399,640
7,821,271
13,041,403
4,184,449
8,856,954
(4,225,521) (9,445,653) 1,893,978 11,339,631
- 895,0 (895,000) -
- (895,000)
(4,225,521) (10,340,653) 998,978 $ 11,339,631
4,225,521 10,340,653 14,087,443
$ 15,086,421
The accompanying notes are an integral part of the financial statements.
247
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, 2017
REVENUES
Taxes
Intergovernmental
Interest
Miscellaneous
Total revenues
EXPENDITURES
Transportation
Total expenditures
Excess of revenues over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Budgeted Amounts
Original al Final
Variance
with Final
Budget
Actual Positive
Amounts (Negative
$ 3,529,250 $ 3,529,250 $ 3,821,095 $ 291,845
- 6,067,331 1,635,138
(4,432,193)
23,750 23,750 72,527
48,777
- - 43,071
43,071
3,553,000 9,620,331 5,571,831
(4,048,500)
7,688,044 16,724,164 7,032,264 9,691,900
7,688,044 16,724,164 7,032,264 9,691,900
(4,135,044) (7,103,833) (1,460,433) 5,643,400
444,320) (444,320)-
444,3201 444,320) -
(4,135,044) (7,548,153) (1,904,753) ",643,400
4,135,044 7,548,153 11,785,519
$ 9,880,766
The accompanying notes are an integral part of the financial statements.
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, 2017
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 over (under) expenditures
OTHER FINANCING SOURCES (USES)
Budgeted Amounts
Original al Final
Variance
with Final
Budget
Actual Positive
Amounts (Negative)
$ 185,250 $
185,250 $
259,327 $
74,077
2,620,290
2,620,290
3,222,357
602,067
93,575
93,575
108,454
14,879
30,400
30,400
49,128
18,728
338,795
338,795
562,274
223,479
3,268,310
3,268,310
4,201,540
933,230
278,137
298,052
291,929
6,123
634,741
1,050,153
898,552
151,601
12,907,568
14,127,639
12,414,104
1,713,535
13,820,446
15,475,844
13,604,585
1,871,259
(10,552,136) (12,207,534) (9,403,045) 2,804,489
Transfers in
9,268,608
9,268,608
9,756,429 487,821
Transfers out
(82,667)
(82,667)_
(82,667) -
Total other financing sources (uses)
9,185,941
9,185,941
9,673,762 487,821
Net change in fund balances
(1,366,195)
(3,021,593)
270,717 $ 3,292,310
Fund balances at beginning of year 1,366,195 3,021,593 7,023,850
Fund balances at end of year $ - $ - $ 7,294,567
The accompanying notes are an integral part of the financial statements.
249
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, 2017
REVENUES
Taxes
Intergovernmental
Charges for services
Judgments, fines and forfeits
Interest
Miscellaneous
Total revenues
EXPENDITURES
Public safety
Total expenditures
Excess of revenues over (under) expenditures
Budgeted Amounts
Original al Final
Variance
with Final
Budget
Actual Positive
Amounts (Negative)
$ 27,163,668 $ 27,163,668 $ 27,604,884 $ 441,216
45,125
923,811
871,613
(52,198)
5,369,701
5,369,701
6,354,017
984,316
11,400
11,400
1,600
(9,800)
28,500
28,500
87,302
58,802
38,071
128,071
103,828
24,243)
32,656,465
33,625,151
35,023,244
1,398,093
32,417,698 35,862,247 32,705,100 3,157,147
32,417,698 35,862,247 32,705,100 3,157,147
238,767 (2,237,096) 2,318,144 4,555,240
OTHER FINANCING SOURCES (USES)
Transfers to constitutional officers (536,950) (616,977) (593,8 23,164
Total other financing sources (uses) 536,950) (616,977) (593,813) 23,164
Net change in fund balances (298,183) (2,854,073) 1,724,331 $ 4,578,404
Fund balances at beginning of year 298,183 2,854,073 6,068,669
Fund balances at end of year $ - $ - $ 7,793,000
The accompanying notes are an integral part of the financial statements.
250
Indian River County, Florida
Board of County Commissioners
Statement of Fund Net Position
Proprietary Funds
September 30, 2017
The accompanying notes are an integral part of the financial statements.
251
Enterprise Funds
Solid Waste
Disposal
Golf
County
County
Internal
District
Course
Utilities
Building
Total
Service Funds
ASSETS
Current assets:
Cash and investments
$ 17,141,787 $
128,580
$ 45,318,420 $
7,008,662
$ 69,597,449
$ 29,581,186
Accounts receivable - net
714,520
11,791
2,787,982
-
3,514,293
250,559
Due from other governments
1,256,944
26,414
368,395
5,428
1,657,181
382,800
Interest receivable
33,010
-
611,577
12,987
657,574
50,519
Inventories
-
139,842
1,063,293
-
1,203,135
203,051
Prepaids and other assets
-
1,250
70,828
45,299
117,377
9,574,807
Current restricted assets:
Cash and investments
14,182,162
-
38,109,984
-
52,292,146
-
Total current assets
33,328,423
307,877
88,330,479
7,072,376
129,039,155
40,042,922
Non-current assets:
Capital assets - non -depreciable
13,324,204
6,606,283
12,912,057
-
32,842,544
-
Capital assets - depreciable
31,806,809
4,762,893
434,830,238
589,782
471,989,722
2,961,079
Capital assets - accumulated depreciation
(13,737,960)
(1,872,879)
(266,148,661)
(304,207)
(282,063,707)
(2,314,742)
Non-current restricted assets:
Special assessments receivable
399,299
399,299
Impact fees receivable
555,355
555,355
Liens receivable
-
6,261,112
-
6,261,112
-
Total non-current assets
31,393,053
9,496,297
188,809,400
285,575
229,984,325
646,337
Total assets
64,721,476
9,804,174
277,139,879
7,357,951
359,023,480
40,689,259
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions
217,445
179,220
2,669,126
595,904
3,661,695
497,089
Deferred amounts on refundings
-
1,037,380
-
1,037,380
-
Total deferred outflows of resources
217,445
179,220
3,706,506
595,904
4,699,075
497,089
LIABILITIES
Current liabilities (payable from current assets):
Accounts payable
1,988,276
163,150
1,924,720
109,776
4,185,922
299,536
Retainage payable
-
-
90,784
-
90,784
-
Due to other funds
339,073
-
339,073
-
Claims payable
-
-
-
-
2,763,000
Due to other governments
5,596
45,122
22,160
72,878
-
Other deposits
1,000
-
-
1,000
Unearned revenues
-
39,348
-
-
39,348
-
Accrued compensated absences
43,977
24,435
547,552
102,000
717,964
78,598
Total current liabilities (payable from current assets)
2,032,253
572,602
2,608,178
233,936
5,446,969
3,141,134
Current liabilites (payable from restricted assets):
Accounts payable
-
-
142,012
-
142,012
-
Retainage payable
22,714
22,714
Accrued interest payable
-
72,242
72,242
Closure and maintenance costs payable
9,270,090
-
9,270,090
Notes payable
-
1,007,000
1,007,000
Bonds payable
-
2,100,000
2,100,000
Customer deposits
172,426
3,088_,247
-
3,_260,_673
Total current liabilities (payable from restricted
assets)
9,442,516
6,432,215
-
15,874,731
-
Total current liabilities
11,474,769
572,602
9,040,393
233,936
21,321,700
3,141,134
Non-current liabilities:
Accrued compensated absences
6,067
46,778
160,213
6,012
219,070
54,310
Advance from other funds
-
912,103
-
-
912,103
-
Claims payable
-
-
-
5,492,000
Closure and maintenance costs payable
4,739,646
-
-
-
4,739,646
-
Net pension liability
480,853
412,841
6,109,051
1,252,211
8,254,956
1,112,578
Notes payable
-
-
4,199,000
-
4,199,000
-
Bonds payable - net of unamortized discount/premium
-
-
14,725,534
-
14,725,534
-
Total non-current liabilities
5,226,566
1,371,722
25,193,798
1,258,223
33,050,309
6,658,888
Total liabilities
16,701,335
1,944,324
34,234,191
1,492,159
54;372,009
9,800,022
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions
25,316
28,346
411,265
63,390
528,317
69,595
NET POSITION
Net investment in capital assets
31,393,053
9,496,297
160,599,480
285,575
201,774,405
646,337
Unrestricted
16,819,217
(1,485,573)
85,601,449
6,112,731
107,047,824
30,670,394
Total net position
$ 48,212,270 $
8,010,724
$ 246,200,929 $
6,398,306
$ 308;822,229
$ 31,316,731
The accompanying notes are an integral part of the financial statements.
251
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, 2017
OPERATING REVENUES
Charges for services
Charges for services pledged as security for revenue bonds
Total operating revenues
OPERATING EXPENSES
Personal services
Material, supplies, services and other operating
Depreciation
Total operating expenses
Operating income (loss)
NONOPERATING REVENUES (EXPENSES)
Intergovernmental
Interest income
Interest income pledged as security for revenue bonds
Gain on disposal of equipment
Interest expense
Loss on disposal of equipment
Total nonoperating revenues (expenses)
Income (loss) before transfers and capital contributions
Capital grants and contributions
Transfers
Change in net position
Total net position - beginning
Total net position - ending
Enterprise Funds
Solid Waste
Disposal Golf
District Course
$ 13,786,879 $ 3,245,437
13,786,879 3,245,437
639,458
606,318
12,805,445
1,905,896
1,097,197
175,455
14,542,100
2,687,669
(755,221)
557,768
1,132,093
15,215
228,008
1,251
1,410
(5,720)
1,360,101 12,156
604,880 569,924
604,880 569,924
47,607,390 7,440,800
$ 48,212,270 $ 8,010,724
The accompanying notes are an integral part of the financial statements.
252
253
Enterprise Funds
County
County
Internal
Utilities
Building
Total
Service Funds
-
$ 3,742,674 $
20,774,990
$ 26,642,557
31,994,089
-
31,994,089
-
31,994,089
3,742,674
52,769,079
26,642,557
9,044,245
2,128,703
12,418,724
3,307,380
13,873,101
1,290,875
29,875,317
20,419,366
14,694,707
84,508
16,051,867
181,435
37,612,053
3,504,086
58,345,908
23,908,181
(5,617,964)
238,588
(5,576,829)
2,734,376
368,395
5,428
1,521,131
18,717
-
40,759
270,018
165,076
548,472
-
548,472
-
23,125
12,750
37,285
-
(974,476)
-
(980,196)
-
(22,703)
-
(22,703)
(2,581)
(57,187)
58,937
1,374,007
181,212
(5,675,151)
297,525
(4,202,822)
2,915,588
6,108,117
-
6,108,117
-
82,667
-
82,667
39,496
515,633
297,525
1,987,962
2,955,084
245,685,296
6,100,781
306,834,267
28,361,647
246,200,929
$ 6,398,306 $
308,822,229
$ 31,316,731
253
Indian River County, Florida
Board of County Commissioners
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2017
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Transfers - -
Payments on advances from other funds - (90,000)
Net cash provided by (used in) noncapital financing activities - (90,000)
CASH FLOWS FROM CAPITAL AND RELATED
Enterprise Funds
Solid Waste
Disposal
Golf
-
District
Course
CASH FLOWS FROM OPERATING ACTIVITIES
Proceeds from advances from other funds
-
Cash received from customers
$ 13,225,039
$ 3,234,685
Cash paid to suppliers for goods and services
(11,117,122)
(1,839,195)
Cash paid to employees for services
(608,254)
(577,257)
Net cash provided by (used in) operating activities
1,499,663
818,233
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Transfers - -
Payments on advances from other funds - (90,000)
Net cash provided by (used in) noncapital financing activities - (90,000)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Principal payments - bonds/notes
-
-
Interest paid on long-term debt
-
(5,720)
Proceeds from advances from other funds
-
1,100,000
Payments on advances from other funds
-
(275,163)
Proceeds from sales of capital assets
-
1,410
Purchase of capital assets
(13,109)
(1,432,047)
Bond paying agent and arbitrage fees
-
-
Capital grants and contributions
-
Net cash provided by (used in) capital and related financing activities
(13,109)
(611,520)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest and dividends on investments
215,433
1,592
Net cash provided by investing activities
215,433
1,592
Net increase (decrease) in cash and investments
1,701,987
118,305
Cash and investments at beginning of year
29,621,962
10,275
Cash and investments at end of year
$ 31,323,949 $
128,580
Classified as:
Current assets
$ 17,141,787 $
128,580
Restricted assets
14,182,162
-
Totals
$ 31,323,949 $
128,580
The accompanying notes are an integral part of the financial statements.
254
rise Funds
County County Internal
Utilities Building Total Service Funds
$ 30,705,096 $ 3,742,674 $ 50,907,494 $ 26,586,278
(14,280,316) (1,391,507) (28,628,140) (20,800,671)
(8,592,156) (2,007,144) (11,784,811) (2,750,420)
7,832,624 344,023 10,494,543 3,035,187
82,667 - 82,667 39,496
- - (90,000) -
82,667 - (7,333) 39,496
(2,992,000)
-
(2,992,000)
-
(983,267)
-
(988,987)
-
-
-
1,100,000
-
-
(275,163)
-
23,125
12,750
37,285
-
(2,579,269)
(32,799)
(4,057,224)
(331,590)
(1,600)
-
(1,600)
-
2,425,154
-
2,425,154
-
(4,107,857)
(20,049)
(4,752,535)
(331,590)
491,427
35,534
743,986
143,515
491,427
35,534
743,986
143,515
4,298,861
359,508
6,478,661
2,886,608
79,129,543
6,649,154
115,410,934
26,694,578
$ 83,428,404 $
7,008,662 $
121,889,595
$ 29,581,186
$ 45,318,420 $
7,008,662 $
69,597,449
$ 29,581,186
38,109,984
-
52,292,146
-
$ 83,428,404 $
7,008,662 $
121,889,595
$ 29,581,186
Continued
255
Indian River County, Florida
Board of County Commissioners
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2017
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) $ (755,221) $ 557,768
Adjustments to reconcile operating income to net cash
provided by operating activities:
Work in progress reclassified as expense
Depreciation
1,097,197
175,455
(Increase) decrease in assets:
Accounts receivable
(615,509)
(11,791)
Due from other governments
14,869
201
Inventories
-
(12,271)
Liens receivable
-
-
Impact fees receivable
-
-
Special assessments receivable
-
-
Prepaid items
-
(1,250)
Increase (decrease) in liabilities:
Accounts payable
688,323
82,782
Due to other governments
-
(2,761)
Retainage payable
-
-
Customer deposits
38,800
-
Closure and maintenance costs payable
1,000,000
-
Net pension liability
33,152
28,957
Unearned revenues
-
1,039
Claims payable
-
-
Accrued compensated absences
(1,948)
104
Total adjustments
2,254,884
260,465
Net cash provided by (used in) operating activities
$ 1,499,663 $
818,233
NONCASH CAPITAL AND RELATED
FINANCING ACTIVITIES
Change in fair value of investments $ 6,081 $ -
Capital grants and contributions $ - $ -
Capital assets purchased through accounts payable $ 29,586 $ 5,000
The accompanying notes are an integral part of the financial statements.
256
Enterprise Funds
County County
Utilities Building Total
Internal
Service Funds
$ (5,617,964) $ 238,588 $ (5,576,829) $ 2,734,376
2,400
2,400
14,694,707
84,508
16,051,867
181,435
(336,024)
-
(963,324)
(81,282)
-
-
15,070
25,003
76,208
-
63,937
(40,992)
(1,188,163)
-
(1,188,163)
-
74,546
-
74,546
-
121,023
-
121,023
-
(51,023)
(45,264)
(97,537)
377,659
(426,991)
(54,006)
290,108
25,712
21,086
(1,362)
16,963
-
(28,895)
-
(28,895)
-
39,625
-
78,425
-
-
-
1,000,000
-
435,221
111,242
608,572
83,545
-
-
1,039
-
-
-
-
(257,520)
16,868
10,317
25,341
(12,749)
13,450,588
105,435
16,071,372
300,811
$ 7,832,624 $
344,023
$ 10,494,543
$ 3,035,187
$ 26,729 $
$ 3,682,963 $
$ 621,479 $
2,392 $ 35,202 $
- $ 3,682,963 $
$ 656,065 $
257
9,267
Indian River County, Florida
Board of County Commissioners
Statement of Fiduciary Net Position
Fiduciary Funds
September 30, 2017
ASSETS
Cash
Investments, at fair value:
Index funds
U.S. government securities funds
Primary money market fund
Total assets
LIABILITIES
Accounts payable
Due to other governments
Other deposits held in escrow
Total liabilities
NET POSITION
Assets held in trust for other postemployment benefits
Total net position
Other
Postemployment
Agency Benefits Trust
$ 2,939,686 $ 49,573
13,862,842
- 11,216,540
- 2,541,507
$ 2,939,686 $ 27,670,462
$ 30,559 $ -
650,802 -
2,258,325 -
$ 2,939,686 -
27,670,462
$ 27,670,462
The accompanying notes are an integral part of the financial statements.
258
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, 2017
ADDITIONS
Employer contributions $ 2,274,341
Net appreciation in fair value of investments 2,389,763
Less investment expense (2,280)
Net investment income 2.387.483
Total additions 4,661,824
DEDUCTIONS
Benefit payments 2,494,672
Total deductions 2.494.672
Change in net position 2,167,152
Net position - beginning 25,503,310
Net position - ending $ 27,670,462
The accompanying notes are an integral part of the financial statements.
259
R
260
E-3
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Board of County Commissioners (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.
261
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2017
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 fund 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.
262
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2017
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 parry receives and gives up
essentially equal values. Non-operating revenues, such as subsidies, taxes, and investment earnings
result from non-exchange 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.
263
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2017
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 (OPEB Trust) accounts for activities of the OPEB 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.
264
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2017
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 (OPEB
Trust) accounts for activities of the OPEB 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 Funds (Florida Trust). Investments are reported at fair
value based upon the average price obtained from three brokers/dealers. The Florida Trust values are
based upon the fair market value per share of the underlying portfolio. Refer to Note 2C, Investments,
for further information on individual investments.
265
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2017
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, 2017, the allowance for water and sewer was $424,493
and for ambulance services was $1,010,796. No other allowances for doubtful accounts are maintained
since other accounts receivable are considered collectable as reported at September 30, 2017.
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, 2017.
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. Prepaids and Other Assets
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.
On the Statement of Fund Net Position for the Proprietary Funds, of the $9,574,807 reported as prepaids
and other assets in the Governmental Activities Internal Service Funds column, $8,513,836 is the net
other post employment benefit asset. See Note 13 for further information.
266
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2017
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, donated works of art, historical treasures and similar
assets, as well as capital assets that are received in a service concession arrangement are reported at
original acquisition value. 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
267
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
I. 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, insurance
recoveries 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.
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2017
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 Program), 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.
L. New Accounting Pronouncement
The Board implemented Governmental Accounting Standards Board (GASB) Statement No. 74,
Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans. This statement's
objective was to improve the usefulness of information about postemployment benefits other than
pensions (OPEB).
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.
269
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2017
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, 2017.
270
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2017
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 the 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.
271
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2017
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, 2017, the carrying value of the Board's deposits was $110,491,365 and the bank
balance was $111,813,784. 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".
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, 2017, accrued interest for the Board's portfolio totaled $479,642 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.
272
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 2 - CASH AND INVESTMENTS - Continued
C. Investments
As of September 30, 2017, the Board had the following investments:
* 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.
273
Weighted
Average
Maturity
Portfolio
Credit
Investment Type
Fair Value
In Years
Percentage
Risks*
Fixed Rate Debt Instruments:
U.S. Treasuries $
82,724,813
0.70
35.92 %
N/A
U.S. Agencies:***
Federal Farm Credit Bureau
23,918,187
1.05
10.39
AA+
Federal Home Loan Bank
48,822,753
1.26
21.20
AA+
Federal Home Loan Mortgage
45,842,853
1.07
19.91
AA+
Federal National Mortgage Assoc.
10,947,847
1.07
4.75
AA+
Other Market Rate Investments:
Florida Trust Short Term
AAAf and
Bond Fund
13,922,060
0.08
6.05
S-]**
W&S Sinking Fund Reserve:
U.S. Treasuries
4,124,298
1.24
1.78
N/A
Total Fair Value $
230,302,811
100.00 %
Weighted Average Maturity of Investments
0.92
* 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.
273
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 2 - CASH AND INVESTMENTS - Continued
C. Investments — Continued
The Board had the following recurring fair value measurements as of September 30, 2017:
Level Level Level
U.S. Treasuries $ - $ 86,849,111 $
U.S. Agencies - 129,531,640
Florida Trust - 13,922,060
Total Investments $ - $ 230,302,811 $
Interest Rate Risk
Total
$ 86,849,111
129,531,640
13,922,060
$ 230,302,811
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 Funds (Florida Trust);
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.
274
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2017
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, 2017, 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 (OBEB Trust), an irrevocable trust,
by a third party custodian, The Bank of New York/Mellon. The contribution for the year ended
September 30, 2017 was $2,274,341. The cash balance in the OPEB Trust at September 30, 2017 was
$49,573. 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 OPEB Trust 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.
For the fiscal year ended September 30, 2017, the annual money -weighted rate of return on investments,
net of investment expense, was 9.0%. The money -weighted rate of return expresses investment
performance, net of investment expense, adjusted for the changing amounts actually invested.
275
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 2 - CASH AND INVESTMENTS - Continued
D. OPEB Trust - Continued
As of September 30, 2017, the OPEB Trust had the following investments:
Weighted
Average
Maturity Portfolio
Investment Type Fair Value In Years Percentage
Vanguard 500 Index
$ 6,233,563
N/A
22.57
Vanguard All World Ex -US
5,522,817
N/A
20.00
Vanguard Mid Cap Index
1,395,305
N/A
5.05
Vanguard Small Cap Index
711,157
N/A
2.57
Vanguard Short Term Treasury
8,273,199
2.10
29.95
Vanguard Intermediate Treasury
2,736,053
5.70
9.91
Vanguard Prime Money Market
2,541,507
0.14
9.20
Vanguard Federal Money Market
207,288
0.15
0.75
Total fair value
$ 27,620,889
100.00 %
The Board has the following recurring fair value measurements for investments in the OPEB Trust as of
September 30, 2017:
Level Level Level Total
Index Funds $ 13,862,842 $ - $ - $ 13,862,842
U.S. Government Securities Funds 11,216,540 - - 11,216,540
Money Market Fund 2,541,507 - - 2,541,507
Total investments $ 27,620,889 $ - $ - $ 27,620,889
276
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2017
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. Priroperty tax revenues recognized for the 2016-2017 fiscal year were levied in
October 2016. 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
Improvements Eauipment
$ 229,878,528 $
Land
Balance 10/1/2016 $
133,776,879
Additions
1,265,673
Deletions
(550,924)
Balance 9/30/2017 $
134,491,628
Buildings
And
Improvements Eauipment
$ 229,878,528 $
41,561,707
10,955,285
4,950,107
(938,503)
(2,163,335)
$ 239,895,310 $
44,348,479
Intaneibles Infrastructure
$ 4,339,153 $
415,800,423
345,004
1,578,780
(300,877)
(86,065)
$ 4,383,280 $
417,293,138
Construction
In Progress
Total
$ 23,708,410
$ 849,065,100
20,137, 881
39,232,730
(13,387,600)
(17,427,304)
$ 30,458,691
$ 870,870,526
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.
In accordance with GASB Statement 42 Accounting and Financial Reporting for Impairment of Capital
Assets and for Insurance Recoveries, the Board wrote down the value of the Sector 3 Beach Restoration
asset in the amount of $1,715,853. This impairment was caused by Hurricane Matthew erosion damage
that occurred in October 2016. Subsequently, in September 2017, Hurricane Irma caused additional
damage resulting in a second asset impairment of $390,043. These impairment amounts are included as
a culture and recreation program expense on the Statement of Activities.
277
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 4 — CAPITAL ASSETS - Continued
B. Proprietary Fund Type Capital Assets
Enterprise Funds
A summary of changes in the Enterprise fund type capital assets is as follows:
Buildings
Intangibles
$ 949,725
$ 1,726,164
132,490
And
(56,069)
(357)
Construction
1,921,118
Land Improvements
Equipment
Intangibles
In Progress
Total
Balance 10/1/2016 $ 21,556,248 $ 454,047,846
$ 16,528,821
$ 2,975,053
$ 2,304,979
$ 497,412,947
Additions - 5,650,269
1,390,697
26,135
3,618,556
10,685,657
Deletions - (702,713)
(206,604)
(6,155)
(2,350,866)
(3,266,338)
21,556,248 458,995,402
17,712,914
2,995,033
3,572,669
504,832,266
Less:
Accumulated Depreciation - (267,019,095) (14,033,215) (1,011,397) - (282,063,707)
Balance 9/30/2017 $ 21,556,248 $ 191,976,307 $ 3,679,699 $ 1,983,636 $ 3,572,669 $ 222,768,559
Internal Service Funds
A summary of changes in the Internal Service fund type capital assets is as follows:
Balance 10/1/2016
Additions
Deletions
Less:
Accumulated Depreciation
Balance 9/30/2017
Buildings
And
Improvements
$ 2,837
10,978
13,815
Equipment
Intangibles
$ 949,725
$ 1,726,164
132,490
195,311
(56,069)
(357)
1,026,146
1,921,118
Total
$ 2,678,726
338,779
(56,426)
2,961,079
(3,478) (782,280) (1,528,984) (2,314,742)
$ 10,337 $ 243,866 $ 392,134 $ 646,337
NOTE 5 — RESTRICTED CASH AND INVESTMENTS
Sinking funds
Renewal and
replacement
Customer deposits
Capital construction
Closure and maintenance cost
Total
Solid Waste
Disposal County
District Utilities
Total
$ - $ 4,455,456 $ 4,455,456
- 3,485,928 3,485,928
172,426 3,088,247 3,260,673
- 27,080,353 27,080,353
14,009,736 - 14,009,736
$ 14,182,162 $ 38,109,984 $ 52,292,146
278
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 6 - INTERFUND BALANCES
Interfund balances at September 30, 2017, consisted of the following:
Receivable Fund Payable Fund Amount
General Fund Nonmajor Governmental Funds $ 175,000
General Fund Golf Course Enterprise Fund 339,073
$ 514,073
In January 2016, the General Fund loaned $254,500 to the Golf Course Fund to purchase new golf carts.
In September 2017, the General Fund loaned $1,100,000 to the Golf Course Fund for a new irrigation
system. 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 2018. 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, 2017, consisted of the following:
Receivable Fund
General Fund
Payable Fund
Golf Course Fund
Amount
$ 912,103
This amount is considered a long-term advance between major funds expected to be paid in fiscal years
2019, 2020 and 2021. This amount has been presented as nonspendable on the General Fund Balance
Sheet.
279
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 7 - INTERFUND TRANSFERS
Interfund transfers for the year ended September 30, 2017, consisted of the following:
Transfers Out:
General Fund
Secondary Roads
Construction Fund
Transportation Fund
Optional Sales Tax Fund
Total
Nonmaj or
Transportation Governmental
Fund Funds
$ 9,756,429 $ 117,554 $
Transfers In:
Internal
Utilities Service
Fund Funds
- $ 39,496 $
Total
9,913,479
- 444,320 - - 444,320
- - 82,667 - 82,667
- 125,000 - - 125,000
9 756 1179 6R6 R711 P R7 667 G 19 1196 1� in 565 1166
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 a
portion of a bus transfer site project, 5) use unrestricted stormwater revenues to offset Egret Marsh
employee costs accounted for in the utilities fund, and 6) use capital project fund revenues for
improvements to the Historic Dodgertown facility.
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 8 — ACCOUNTS PAYABLE
Accounts payable at September 30, 2017, 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
$ 1,964,265 $ 24,011 $ 1,988,276
144,415
18,735
Total
1,627,947
Salaries and
Accounts
Vendors
Benefits
Payable
$ 1,397,839
$ 483,580
$ 1,881,419
316,421
3,808
320,229
1,575,602
9,837
1,585,439
499,549
301,846
801,395
241,875
901,763
1,143,638
2,030,455
-
2,030,455
577,584
30,172
607,756
$ 6,639,325
$ 1,731,006
$ 8,370,331
$ 1,964,265 $ 24,011 $ 1,988,276
144,415
18,735
163,150
1,627,947
296,773
1,924,720
36,691
73,085
109,776
242,944
56,592
299,536
142,012 - 142,012
$ 4,158,274 $ 469,196 $ 4,627,470
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, 2017 were $214,177 for
governmental funds and $33,279 for proprietary funds.
The Board has not engaged in any short-term debt activity during fiscal year 2017 other than that listed
in Note 6.
281
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 9 - LONG-TERM LIABILITIES
A. Governmental Long -Term Debt
Changes in Long -Term Liabilities
Accrued Compensated Absences:
Bonds Payable:
Spring Training Facility
Revenue Bonds - 2001 Series
Notes Payable:
Limited General Obligation
Refunding - 2015 Series
Grand Total
Balance Balance
October 1, September 30,
2016 Additions Deletions 2017
$ 4,027,714 $ 2,601,799 $ 2,624,730 $ 4,004,783
6,735,000
520,000 6,215,000
19,706,000 - 4,053,000 15,653,000
$ 30,468,714 $ 2,601,799 $ 7,197,730 $ 25,872,783
Of the $4,004,783 liability for accrued compensated absences, management estimates that $2,534,106
will be due and payable within one year. The long-term liabilities are not reported in the financial
statements of the Board since they are not payable from available spendable resources. They are
reported in the financial statements of the County.
The General Obligation Refunding Note 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 general obligation 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).
282
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 9 - LONG-TERM LIABILITIES — Continued
A. Governmental Long -Term Debt - Continued
Annual Debt Service Pam
The annual debt service payments for bonds and notes outstanding at September 30, 2017, are as
follows:
Fiscal Year
Spring Training Facility
Limited General
Ending
Revenue Bonds
Obligation Refunding Note
September 30
Series 2001
Series 2015
Principal
Interest
Principal
Interest
2018
$ 550,000 $
316,750
$ 4,158,000 $
259,840
2019
585,000
287,875
4,227,000
190,817
2020
615,000
257,163
4,298,000
120,649
2021
650,000
224,875
2,970,000
49,302
2022
305,000
190,750
-
-
2023-2027
1,780,000
708,250
-
-
2028-2031
1,730,000
218,750
-
-
Total
6,215,000
2,204,413
15,653,000
620,608
Less:
Current portion
550,000
-
4,158,000
-
Total
$ 5,665,000 $
2,204,413
$ 11,495,000 $
620,608
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
283
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 9 - LONG-TERM LIABILITIES - Continued
A. Governmental Long -Term Debt — Continued
Spring TrainingFacility acility 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 $850,400 represent 9.13% of total pledged revenues. All
three pledged revenue sources totaled $9,315,908 for the current fiscal year. The Board applied 100%
of the state subsidy, 50% 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 $8,419,413.
Bonds Issued - At September 30, 2017, Spring Training Facility Revenue Bonds consisted of the
following:
Description
Spring Training Facility
Revenue Bonds, 2001 Series
Interest Rates
and Date
3.30%-5.25%
4/1 and 10/1
Maturity
Outstanding at
September 30,
Issue 2017
2031 $ 16,810,000 $ 6,215,000
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2017
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, 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.
285
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2017
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 $375,826 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 '/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 $4,619,804 of which 100% is pledged for payment of this note and the 2006 bond. Total principal
and interest paid on this note was $4,380,119 and represents 95% 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 Revenue
Refunding Note Series 2015
Bonds Payable:
Water & Sewer Revenue
Refunding Series 2009
Grand Total
Balance Balance
October 1, September 30,
2016 Additions Deletions 2017
$ 1,057,350 $ 893,508 $ 880,916 $ 1,069,942
6,198,000 - 992,000 5,206,000
17,620,000 - 2,000,000 15,620,000
$ 24,875,350 $ 893,508 $ 3,872,916 $ 21,895,942
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 9 - LONG-TERM LIABILITIES - Continued
B. Proprietary Funds Long -Term Debt - Continued
Annual Debt Service Pam
The annual debt service payments for bonds and notes outstanding at September 30, 2017 are as follows:
Fiscal Year
Water and Sewer
Water and Sewer
Ending
Revenue Refunding
Revenue Refunding
September 30
Note Series 2015
Bonds Series 2009
Principal
Interest
Principal
Interest
2018
$ 1,007,000
$ 85,899
$ 2,100,000
$ 781,000
2019
1,025,000
69,284
2,205,000
676,000
2020
1,042,000
52,371
2,315,000
565,750
2021
1,058,000
35,178
2,430,000
450,000
2022
1,074,000
17,721
2,550,000
328,500
2023-2024
-
-
4,020,000
268,000
Total
5,206,000
260,453
15,620,000
3,069,250
Less:
Current portion
1,007,000
-
2,100,000
-
Add:
Unamortized
bond premium
-
-
1,205,534
-
Total
$ 4,199,000
$ 260,453
$ 14,725,534
$ 3,069,250
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, 2017 is $410,184 and is reflected as a deferred outflow of
resources on the Statement of Net Position.
287
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2017
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 $1,094,267 represent approximately eight percent of net revenues of
$13,693,895 of the utility system. The total principal and interest remaining to be paid on the 2015 note
is $5,466,453. 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, 2017 is $627,196 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-
one percent of net revenues of $13,693,895 of the utility system. The total principal and interest
remaining to be paid on the bonds is $18,689,250.
Rate Covenant — Net revenues shall be sufficient to pay 100% of reserve and 120% of current year
principal and interest requirements.
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2017
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, 2017, the revenue refunding bonds consisted of the following:
Description
Water and Sewer
Revenue Refunding Bonds,
Series 2009
Interest Rates
and Date
4-5%
3/1 and 9/1 2024 $ 26,370,000 $ 15,620,000
Maturity Issue
Outstanding at
September 30,
2017
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.
UZ
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2017
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 $7.1 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 Amount
Closure Costs
Class I - Segment III, Cell I 41% 2021 $ 12,601,947
Construction and Demolition 90% 2027 814,866
Post -closure Costs
Class I - Segments I and II N/A N/A 588,435
Construction and Demolition N/A N/A 4,488
Total account balance at 9/30/17 $ 14,009,736
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, 2017, $13,922,060 was on deposit at the Florida Local Government Investment Trust and
$87,676 was on deposit in the Board's operating account.
A summary of changes in the landfill closure liability account is as follows:
Balance
10/1/2016 Deposits Withdrawals
Closure and long-term care costs $ 13,009,736 $ 1,000,000 $
Balance
9/30/9.017
$ 14,009,736
Of the $14,009,736 liability for closure and long-term care costs, management estimates that $9,270,090
will be due and payable within one year.
290
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2017
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 $2,119,700 at September 30, 2017 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 $2,100,000 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 $19,700 and will be paid from the
General Fund.
Total governmental funds liability: 2 119 700
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.
291
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 12 - RETIREMENT PLAN
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 Program). Under Section 121.4501, Florida Statutes, the FRS also provides a defined
contribution plan (Investment Plan) alternative to the 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. 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. The benefit is
equal to 1.6% of their final average compensation based on the 5 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 6 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 5 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 6 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 5 highest years of salary for each year of credited service.
292
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 12 - RETIREMENT PLAN - Continued
Pension Plan - Continued
Senior Management Service class members who retire at or after age 62 with at least 6 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 5 highest years of salary for each
year of credited service. Elected Officers' class members who retire at or after age 62 with at least 6
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 5 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 8 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 8
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 3% 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 3% determined by dividing the sum of the pre -July 2011 service
credit by the total service credit at retirement multiplied by 3%. 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, 2017 were:
Regular Class 7.92%, Special Risk 23.27%, Special Risk Administrative Support 34.63%, Senior
Management 22.71%, DROP 13.26%, and Elected Official Class 45.50%. 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.
293
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 12 - RETIREMENT PLAN - Continued
Pension Plan - Continued
The Board's actuarial contribution to FRS under the Pension Plan for the year ended September 30,
2017, was $4,794,782. Employee contributions for September 30, 2017 were $997,420. Both employer
and employee contributions were equal to 100% of the required contribution.
Pension Liabilities, Pension Expense, and Deferred Outflow of Resources and Deferred Inflow of
Resources Related to Pension Plan: At September 30, 2017, the Division of Retirement calculated the
Board's liability of $55,300,626 for the FRS plan for its proportionate share of the net pension liability.
The net pension liability was measured as of June 30, 2017, and the total pension liability used to
calculate the net pension liability was determined by an actuarial valuation as of July 1, 2017. 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, 2017, the Board's proportionate share was 0.186957% for the FRS
Pension Plan. This was an increase of 0.013793% from its proportionate share measured as of June 30,
2016.
For the year ended September 30, 2017, the Board's calculated total increase of actuarially determined
pension expense was $5,936,315. Of this amount, the Board recognized $678,690 in the enterprise
funds and $93,170 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
of Resources
5,075,267
18,584,915
3,466,914
Deferred Inflows
of Resources
306,337
1,370,488
884,725
1,185,930 -
$ 28.313.026 $ 2.561.550
Deferred outflows related to pensions recognized by enterprise funds were $3,661,695 and $497,089 for
internal service funds. Deferred inflows related to pensions recognized by the enterprise funds were
$528,317 and $69,595 for the internal service funds.
294
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 12 - RETIREMENT PLAN - Continued
Pension Plan - Continued
The deferred outflows of resources related to pensions totaling $1,185,930 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, 2018. 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:
2018
2019
2020
2021
2022
Thereafter
Total
Amount
Recognize
$ 3,206,433
8,522,469
5,958,919
1,217,548
4,118,002
1,542,175
$ 24,565,546
Actuarial Assumptions: The total pension liability in the July 1, 2017 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, 2017
June 30, 2017
7.10%
7.10%, 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, 2017 valuation
were based on the results of an actuarial experience study for the period July 1, 2008 through June 30,
2013.
The following changes in actuarial assumptions occurred in 2017:
• The long-term expected rate of return, was decreased from 7.60% to 7.10%, and the active member
mortality assumption was updated for the Pension Plan.
295
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 12 - RETIREMENT PLAN - Continued
Pension Plan - Continued
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:
Discount Rate for Pension Plan: The discount rate used to measure the total pension liability was 7.10%.
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.
296
Compound
Annual
Annual
Target
Arithmetic
(Geometric)
Standard
Asset Class
Allocation
Return
Return
Deviation
Cash
1%
3.0%
3.0%
1.8%
Fixed Income
18%
4.5%
4.6%
4.2%
Global Equity
53%
7.8%
6.6%
17.0%
Real Estate (Property)
10%
6.6%
5.9%
12.8%
Private Equity
6%
11.5%
7.8%
30.0%
Strategic Investments
12%
6.1%
5.6%
9.7%
Total
100%
Assumed inflation -mean
2.6%
1.9%
Discount Rate for Pension Plan: The discount rate used to measure the total pension liability was 7.10%.
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.
296
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 12 - RETIREMENT PLAN - Continued
Pension Plan - Continued
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 Net Pension
Liability (NPL) of the Pension Plan calculated using the discount rate of 7.10%. 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% Current Discount 1 %
Decrease (6.10%) Rate (7.10%) Increase (8.10%)
Board's proportionate share of NPL $100,090,794 $55,300,626 $18,114,526
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.
297
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2017
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. The HIS Program is administered by the Florida Department of Management Services,
Division of Retirement.
Benefits Provided: For fiscal year ended September 30, 2017, eligible retirees and beneficiaries
received a monthly HIS Program 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 Program
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, 2017, the HIS Program contribution rate
was 1.66%. There are no employee contributions required. The Board contributed 100% of its
statutorily required contributions for the current and preceding 3 years. HIS Program contributions are
deposited in a separate trust fund from which payments are authorized. The Board's actuarial
contributions to the HIS Program totaled $716,275 for the fiscal year ended September 30, 2017.
Pension Liabilities, Pension Expense, and Deferred Outflow of Resources and Deferred Inflow of
Resources Related to HIS Program: At September 30, 2017, the Division of Retirement calculated the
Board's liability of $14,667,773 for its proportionate share of the HIS Program's net pension liability.
The net pension liability was measured as of June 30, 2017, and the total pension liability used to
calculate the net pension liability was determined by an actuarial valuation as of July 1, 2016. At June
30, 2017, the Board's proportional share was 0.137179% for the HIS Program. This was an increase of
0.009% from its proportionate share measured as of June 30, 2016.
W•
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 12 - RETIREMENT PLAN - Continued
Retiree Health Insurance Subsidy (HIS Program) - Continued
For the year ended September 30, 2017, the Board's calculated total actuarially determined pension
expense was $741,764. Of this amount, the Board recognized $84,804 in the enterprise funds and
$11,643 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
of Resources
2,061,784
8,134
1,240,336
Deferred Inflows
of Resources
$ 30,541
1,268,338
137,699
169,126 -
3,479,380 $ 1,436,578
The deferred outflows of resources related to the HIS Program totaling $169,126 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, 2018. 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
2018
$ 584,101
2019
580,360
2020
578,565
2021
433,758
2022
171,055
Thereafter
(474,163)
Total
$ 1,873,676
299
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2017
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:
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, 2017
3.58%
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 Program 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 following changes in actuarial assumptions occurred in 2017:
• The municipal rate used to determine the total pension liability was increased from 2.85% to 3.58%
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.
300
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 12 - RETIREMENT PLAN - Continued
Retiree Health Insurance Subsidy (HIS Program) - Continued
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 Net Pension
Liability (NPL) of the HIS Program calculated using the discount rate of 3.58%. 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:
1% Current Discount 1%
Decrease (2.58%) Rate (3.58%) Increase (4.58%)
Board's proportionate share of NPL $ 16,737,871 $14,667,773 $ 12,943,495
HIS Program 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.
301
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2017
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 5 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 5 -year period, the employee
will forfeit the accumulated account balance. For fiscal year ended September 30, 2017, 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 .06% 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 2016-2017 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 contributions and pension expense totaled $672,928 for fiscal year ended
September 30, 2017. Employee contributions totaled $161,158 for the same period.
302
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2017
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, 2016 range from $366 for single coverage Medicare participants to $845
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
$10,000.
303
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 13 — OTHER POSTEMPLOYMENT BENEFITS PLAN (OPEB) - Continued
A. Plan Description - Continued
The Board subsidizes the cost of the health insurance 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
Retiree or Spouse
Hired On or
Retirement Date
Service
Under Age 65
Medicare Eligible
After 2/1/2006
Before 10/1/2004
No Subsidy
60%*
Less than 15
After 10/1/2004 but on
No Subsidy
20% Subsidy**
or before
years
At least 15
2% per Year of Service
Additional 20% Subsidy
1/31/2009***
No Subsidy
years
(maximum of 40%)
(maximum of 60%)**
Less than 15
No Subsidy
No Subsidy
After 1/31/2009***
years
At least 15
2% per Year of Service
Subsidy Ceases****
years
o
(maximum of 40%)
*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.
304
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2017
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 M75
The average employer's contribution was $1,643 per employee, approximately 3.4% of current payroll.
Financial statements for the OPEB Trust are included in this report and can be found on pages 258-259.
A separate, stand-alone financial report is not issued by the Board; however, the OPEB Trust
investments can be found in Note 2D.
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, 2017, the Board contributed $2.3 million to the qualifying
OPEB Trust. Plan members receiving benefits contributed $2.5 million. 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.
305
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2017
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.
The Net OPEB Asset at September 30, 2017 of $8,513,836 is reported as a prepaid and other asset in the
Internal Service Funds column on the Statement of Fund Net Position for the Proprietary Funds.
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 2016/2017 FY 2015/2016 FY 2014/2015
$ 2,583,447 $ 3,096,411
$ 2,977,075
(584,100)
(54,895)
(47,722)
994,339
86,643
72,521
2,993,686
3,128,159
3,001,874
(1,772,523)
(11,948,249)
(3,121,416)
1,221,163
(8,820,090)
(119,542)
(9,734,999)
(914,909)
(795,367)
(8,513,836)
$ (9,734,999)
$ (914,909)
59% 382% 104%
*Retiree adjustments are comprised of the actual amount withdrawn from the OPEB Trust plus
premiums collected and less claims paid. For fiscal year 2017, these adjustments amounted to
($501,818). For fiscal years 2016 and 2015, these adjustments totaled ($148,162) and $144,341
respectfully.
D. Net OPEB Liability
The components of the net OPEB liability of the County at September 30, 2017, were as follows:
Total OPEB liability
Plan fiduciary net position
County's net OPEB liability
Plan fiduciary net position as a percentage of the total
OPEB liability
306
$ 41,252,267
(27,670,462)
13,581.805
67.08%
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 13 — OTHER POSTEMPLOYMENT BENEFITS PLAN (OPEB) - Continued
E. Actuarial Methods and Assumptions
The total OPEB liability was determined by an actuarial valuation as of October 1, 2015, using the
following actuarial assumptions, applied to all periods included in the measurement, unless otherwise
specified:
Methods and Assumptions Used to Determine Net OPEB Liability:
Actuarial Cost Method Entry age normal
Inflation 2.50%
Discount Rate 6.00%
Salary Increases 4.00% to 9.47%, including inflation, varies by plan type
and years of service.
Retirement Age Experience -based table of rates that are specific to the plan
and type of eligibility condition.
Mortality Mortality tables used in the July 1, 2015 actuarial valuation
of the Florida Retirement System. They are based on the
results of a statewide experience study covering the period
2008 through 2013.
Healthcare Cost Trend Rates Based on the Getzen Model, with trend starting at 7.0% and
gradually decreasing to an ultimate trend rate of 4.55%
(including the impact of the excise tax).
Aging Factors Based on the 2013 SOA Study "Health Care Costs - From
Birth to Death".
Expenses Investment expenses are net of the investment returns;
Administrative expenses are included in the premium costs.
Other Information:
Notes There were no benefit changes during the year.
307
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 13 — OTHER POSTEMPLOYMENT BENEFITS PLAN (OPEB) - Continued
F. Discount Rate
Calculation of the Single Discount Rate
GASB Statement No. 74 includes a specific requirement for the discount rate that is used for the purpose
of the measurement of the Total OPEB Liability. This rate considers the ability of the fund to meet
benefit obligations in the future. To make this determination, employer contributions, employee
contributions, benefit payments, expenses and investment returns are projected into the future. The Plan
Net Position (assets) in future years can then be determined and compared to its obligation to make
benefit payments in those years. As long as assets are projected to be on hand in a future year, the
assumed valuation discount rate is used. In years where assets are not projected to be sufficient to meet
benefit payments, the use of a municipal bond rate is required, as described in the following paragraph.
The Single Discount Rate (SDR) is equivalent to applying these two rates to the benefits that are
projected to be paid during the different time periods. The SDR reflects (1) the long-term expected rate
of return on OPEB Plan investments (during the period in which the fiduciary net position is projected to
be sufficient to pay benefits) and (2) tax-exempt municipal bond rate based on an index of 20 -year
general obligation bonds with an average AA credit rating as of the measurement date (to the extent that
the contributions for use with the long-term expected rate of return are not met).
For the purpose of this valuation the expected rate of return on OPEB Plan investments is 6.00%, the
municipal bond rate is 3.50%; and the resulting SDR is 6.00%.
The County has a policy of depositing the full amount of the Actuarially Determined Contribution
developed under the Entry Age Method. Consequently, the plan's fiduciary net position is projected to
be sufficient to pay benefits and the resulting SDR is 6.00%.
G. Sensitivity of Net OPEB Liability
Regarding the sensitivity of the net OPEB liability to changes in the SDR, the following presents the
plan's net OPEB liability, calculated using a SDR of 6.00%, as well as what the plan's net OPEB liability
would be if it were calculated using a SDR that is one percent lower or 1% higher:
Sensitivity of Net OPEB Liability
to the Single Discount Rate Assumption
Current Single Discount
I% Decrease Rate Assumption 1% Increase
5.00% 6.00% 7.00%
$ 18,090,665 $ 13,581,805 $ 9,561,782
308
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 13 — OTHER POSTEMPLOYMENT BENEFITS PLAN (OPEB) - Continued
G. Sensitivity of Net OPEB Liability - Continued
Regarding the sensitivity of the net OPEB liability to changes in the healthcare cost trend rates, the
following presents the plan's net OPEB liability, calculated using the assumed trend rates as well as what
the plan's net OPEB liability would be if it were calculated using a trend rate that is one percent lower or
one percent higher:
Sensitivity of Net OPEB Liability
to the Healthcare Cost Trend Rate Assumption
Current Healthcare Cost
1% Decrease Trend Rate Assumption 1% Increase
(6% down to 3.55%) (7% down to 4.55%) (8% down to 5.55%)
$ 9,448,756 $ 13,581,805 $ 18,342,324
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 $661,097 and lease expenditures totaled $100,995 for the
year ended September 30, 2017. 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
2018
2019
2020
2021
2022
2023-2027
2028-2032
2033-2037
2038-2042
2043-2046
Total future minimum receipts:
Amount
$ 814,538
817,923
842,281
788,985
802,037
3,143,457
1,534,626
602,249
600,327
392,005
$ 10,338,428
The property being leased is reported in the financial statements of the County and has a cost of
$32,174,685, and a carrying value of $21,929,183. Current year depreciation on property being leased is
$527,237.
309
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2017
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, 2017:
Year
Amount
2018
$ 102,131
2019
57,234
2020
13,500
2021
13,500
2022
1,500
2023-2027
7,500
2028-2032
7,500
2033-2037
7,200
2038-2042
4,800
2043-2047
4,500
2048-2052
2,400
2053-2057
1,500
2058-2062
1,500
2063-2067
1,500
2068-2072
1,500
2073-2076
1,200
Total future minimum lease payments:
$ 228,965
310
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2017
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 GASB 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.
311
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2017
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, 2017, reserve amounts for those funds were:
Budget
Disaster Relief Stabilization Total
General Fund $
5,950,000 $
5,950,000 $
11,900,000
Transportation Fund
800,000
800,000
1,600,000
Emergency Services District Fund
1,900,000
1,900,000
3,800,000
Total $
8,650,000 $
8,650,000 $
17,300,000
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.
D. Fund Balance Deficit
The Metropolitan Planning Organization Fund, a nonmajor Governmental Fund, had a deficit in fund
balance of $283,342 at September 30, 2017. This deficit will be eliminated by grant proceeds in fiscal
year 2018.
312
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2017
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:
10/01/13 to 10/01/14 to 10/01/15 to 10/01/16 to
9/30/2014 9/30/2015 9/30/2016 9/30/2017
Worker's Compensation $
500,000 $
750,000
$ 650,000
$ 650,000
General Liability
200,000
200,000
200,000
200,000
Auto Liability
200,000
200,000
200,000
200,000
Property Damage
200,000
200,000
200,000
200,000
Error or Omissions
200,000
200,000
200,000
200,000
Annual Aggregate
2,000,000
2,000,000
2,000,000
2,000,000
Liquor Liability
1,000,000
1,000,000
N/A
N/A
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 three workers compensation reimbursements totaling $37,643 in
fiscal year 2017, two workers compensation reimbursements totaling $49,222 in fiscal year 2016, and
three workers compensation reimbursements totaling $409,914 in fiscal year 2015.
The Board 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.
In fiscal year 2017, the County was approved by the insurance carriers to receive $5,688,375 in
insurance recoveries related to Hurricane Matthew damage.
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 three medical claim reimbursements totaling
$61,593 in excess of the $250,000 limit for fiscal year 2017. In fiscal year 2016 there were none and in
fiscal year 2015 there were four totaling $382,635.
313
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 16 - RISK MANAGEMENT - Continued
General Liability, Property, Worker's Compensation and Medical — Continued
The claims liability of $8,255,000 reported at September 30, 2017, is based on the requirements of
generally accepted governmental accounting standards, which require that a liability for claims be
reported if information is available 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, $2,763,000 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:
Included in the charges to other funds is an amount to fund future catastrophic losses not actuarially
determined; and at September 30, 2017, unrestricted net position of $30,558,437 has been designated for
this purpose. The Board has elected to accrue the larger of the discounted liability or undiscounted
liability. At September 30, 2017, the undiscounted liability was the greater of the two amounts. The
discount rate used in the calculation was 2%.
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.
314
Balance at
Claims
Balance
Fiscal Year
and Changes
Claims
at Fiscal
Beginning
in Estimates
Payments
Year End
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
2016-2017
8,512,520
16,364,331
(16,621,851)
8,255,000
Included in the charges to other funds is an amount to fund future catastrophic losses not actuarially
determined; and at September 30, 2017, unrestricted net position of $30,558,437 has been designated for
this purpose. The Board has elected to accrue the larger of the discounted liability or undiscounted
liability. At September 30, 2017, the undiscounted liability was the greater of the two amounts. The
discount rate used in the calculation was 2%.
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.
314
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 17 - COMMITMENTS AND CONTINGENCIES - Continued
B. Contracts and Other Commitments
The Board has various contracts and commitments outstanding at September 30, 2017. 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 58th
Avenue pavement reclamation and resurfacing, CR512 westbound resurfacing from Roseland Road to
US Highway 1 and eastbound resurfacing from Easy Street to US Highway 1, Courthouse renovations,
45th Street beautification - Phase Il, beach profile surveys and monitoring, as well as a variety of other
road paving and drainage projects. In the Capital Projects Fund, contracts are for the administration
buildings roof replacements, Osprey Acres floway and nature preserve, 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, aquifer wells rehabilitation project, north county water and sewer, and various other water
and sewer projects. In the Internal Service Funds, contracts are for actuarial services and GIS oblique
aerial imagery acquisition.
A summary of these projects at September 30, 2017, is as follows:
General
Special Revenue
Capital Projects
Enterprise
Internal Service
Total
C. Grants
Total
Contract Price
$ 1,033,383
10,900,046
23,308,141
9,991,365
435,433
$ 45,668,368
Total Paid as of
September 30, 2017
$ (436,873)
(8,033,002)
(11,804,003)
(2,872,836)
(115,311)
$ (23,262,025)
Remaining
Balance at
September 30, 2017
$ 596,510
2,867,044
11,504,138
7,118,529
320,122
$ 22,406,343
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.
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R\ehmann
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 14, 2018
The Honorable Board of County Commissioners
Indian River Board, 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, 2017, which
collectively comprise the Board's fund financial statements and have issued our report thereon dated
March 14, 2018.
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 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.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Board's financial statements are free of
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on
the determination of financial statement amounts. However, providing an opinion on compliance with
those provisions was not an objective of our audit and, accordingly, we do not express such an opinion.
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The Honorable Board of County Commissioners
Indian River Board, Florida
March 14, 2018
Page 2
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.
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R\ehmann
MANAGEMENT LETTER
March 14, 2018
Rehmann Robson
5070 North Highway A1A,
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx:772.234.8488
rehmann.com
The Honorable Board of County Commissioners
Indian River County, Florida
Report on the Financial Statements
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, 2017, and have issued our report thereon dated March 14, 2018.
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 for Federal Awards (Uniform Guidance); and Chapter 10.550, Rules of the Auditor
General.
Other Reporting Requirements
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 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 Accountant's Report on an examination conducted in
accordance with AICPA Professional Standards, AT -C Section 315, regarding compliance requirements
in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which
are dated March 14, 2018, should be considered in conjunction with this management letter.
Prior Audit Findings
Section 10.554(1)(i)l ., 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
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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The Honorable Board of County Commissioners
Indian River County, Florida
March 14, 2018
Page 2
Financial Management
Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any
recommendations to improve financial management. In connection with our audit, we did not have
any such recommendations.
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.
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R\ehmann
INDEPENDENT ACCOUNTANTS' REPORT
March 14, 2018
The Honorable Board of County Commissioners
Indian River County, Florida
Rehmann Robson
5070 North Highway AIA,
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, 2017. 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, 2017.
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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CLERK OF THE CIRCUIT COURT AND
COMPTROLLER
321
R\ehmann
INDEPENDENT AUDITORS' REPORT
March 14, 2018
The Honorable Jeffrey R. Smith
Clerk of the 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 Clerk of Court (the "Clerk"), as of and
for the year ended September 30, 2017, 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 of 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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The Honorable Jeffrey R. Smith
Clerk of the Court and Comptroller
March 14, 2018
Page 2
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, 2017, 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, 2017, 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 14,
2018, on our consideration of the Clerk'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 Clerk's internal control
over financial reporting and compliance.
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Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Balance Sheet
Governmental Funds
September 30, 2017
ASSETS
Cash
Accounts receivable
Prepaid items
Due from other governments
Total assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Due to other governments
Other deposits held in escrow
Unearned revenues
Total liabilities
Fund Balances:
Nonspendable:
Prepaid items
Restricted for:
Court -related costs and improvements
Unassigned
Total fund balances
Total liabilities fund balances
Total
Nonmajor Fund Governmental
General Special Revenue Funds
$ 881,647 $
1,813,598 $
2,695,245
94,754
2,250
97,004
29,771
103,384
133,155
7,033
-
7,033
$ 1,013,205 $
1,919,232 $
2,932,437
$ 99,120 $ 7,383 $ 106,503
95,661 90 95,751
610,005 14,695 624,700
208,419 - 208,419
1,013,205 22,168 1,035,373
29,771 103,384 133,155
1,793,680 1,793,680
(29,771) - (29,771
1,897,064 1,897,064
$ 1,013,205 $ 1,919,232 $ 2,932,437
The accompanying notes are an integral part of the financial statements.
324
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, 2017
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
Transfer 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
Total
Nonmajor Fund Governmental
General Special Revenue Funds
$ 176,066 $
- $
176,066
3,247,087
433,368
3,680,455
850,717
105,548
956,265
13,129
4,259
17,388
35,455
-
35,455
4,322,454
543,175
4,865,629
1,976,747
675,201
2,651,948
3,258,809
105,973
3,364,782
5,235,556
781,174
6,016,730
(913,102) 237,999 51,101)
971,511 - 971,511
(58,409) - (58,409)
913.102 - 913,102
(237,999)
2,135,063
$ - $ 1,897,064 $
The accompanying notes are an integral part of the financial statements.
325
(237,999)
135.063
1,897,064
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, 2017
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 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
Variance with
Final Budget
Budgeted Amount
Positive
Original
Final
Actual
(Negative)
$ 50,000 $
130,646 $
176,066 $
45,420
3,075,054
3,229,408
3,247,087
17,679
684,000
749,943
850,717
100,774
3,600
3,600
13,129
9,529
25,893
40,893
35,455
(5,438)
3,838,547
4,154,490
4,322,454
167,964
1,767,944 2,004,424 1,976,747 27,677
3,042,114 3,121,577 3,258,809 137,232_
4,810,058 5,126,001 5,235,556 (109,555)
(971,511) (971,511) (913,102) 58,409
971,511 971,511 971,511 -
- - 58,4 (58,4
971,511 971,511 913,102 (58,409)
The accompanying notes are an integral part of the financial statements.
326
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Statement of Fiduciary Net Position
Agency Fund
September 30, 2017
ASSETS
Cash
Total assets
LIABILITIES
Due to other governments
Escrow deposits
Total liabilities
$ 3,414,471
$ 3,414,471
$ 1,304,760
2,109,711
3,414,471
The accompanying notes are an integral part of the financial statements.
327
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Notes To Financial Statements
Year Ended September 30, 2017
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.
t
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Notes To Financial Statements
Year Ended September 30, 2017
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 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 the 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.
329
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Notes To Financial Statements
Year Ended September 30, 2017
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 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 $971,511.
I. 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 $58,409 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.
J. 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.
330
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 2 - CASH
A. Deposits
At September 30, 2017, the carrying value of the Clerk's deposits was $6,109,716 and the bank balance
was $6,849,702. 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.
331
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 2 - CASH - Continued
B. Deposit and Investment Policies- 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 (Florida Trust),
• 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, 2017 were: regular class 7.92%, senior managment class
22.71%, DROP class 13.26%, and elected official class 45.50%. 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.
332
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Notes To Financial Statements
Year Ended September 30, 2017
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 parry 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 FRS 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, 2017, the Clerk's actuarial contribution to FRS under the Pension Plan
was $274,086 and the Health Insurance Subsidy (HIS Program) was $56,430. Employee contributions
for both plans were $91,379. Both employer and employee contributions were equal to 100% of the
required contribution for each year.
Pension Liabilities: At September 30, 2017, the Division of Retirement calculated the Clerk's liability
of $3,094,827 for the FRS plan and $1,145,408 for the HIS Program, for a total of $4,240,235 for its
proportionate share of the net pension liability. The net pension liability was measured as of June 30,
2017, and the total pension liability used to calculate the net pension liability was determined by an
actuarial valuation as of July 1, 2017. 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, 2017, the Clerk's
proportion was .010463% for the FRS Pension Plan and .010712% for the HIS Program.
Discount Rate for Pension Plan: The discount rate used to measure the total pension liability was
7.10%. 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 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. 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.
333
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Notes To Financial Statements
Year Ended September 30, 2017
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 net pension
liability (NPL) of the Pension Plan calculated using the discount rate of 7.10%. 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 I% lower or I% higher than the current rate:
Current Discount
1 % Decrease (6.10%) Rate (7.10%) 1% Increase (8.10%
Clerk's proportionate
share of NPL $ 5,601,451 $ 3,094,827 $ 1,013,756
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 of the
HIS Program calculated using the discount rate of 3.58%. 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
I% lower or I% higher than the current rate:
Current Discount
1% Decrease (2.58%) Rate (3.58%) 1% Increase (4.58%)
Clerk's proportionate
share of NPL $ 1,307,062 $ 1,145,408 $ 1,010,759
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.
334
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 4 — OTHER POSTEMPLOYMENT BENEFITS
The Clerk participated in the Indian River County Other Postemployment Benefits Trust (OPEB Trust).
The Clerk's 2017 annual contribution of $100,211 was funded by: the Board of County Commissioners
in the amount of $16,195; non -court operations in the amount of $13,378; court operations in the amount
of $65,550; and special revenue funds in the amount of $5,088. This contribution was considered part of
a total contribution determined by the OPEB Trust actuary. Further information on the OPEB Trust 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 $620,376.
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, 2017:
Beginning Ending
Balance Balance
10/01/16 Additions Deletions 9/30/17
Accrued Compensated Absences $ 272,599 $ 294,372 $ 315,241 $ 251,730
Of the $251,730 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.
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R\ehmann
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 14, 2018
The Honorable Jeffrey R. Smith
Clerk of the Circuit Court and Comptroller
Indian River Clerk, 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, 2017, which collectively comprise the
Clerk's fund financial statements and have issued our report thereon dated March 14, 2018.
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 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 Clerk's financial statements are free of
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on
the determination of financial statement amounts. However, providing an opinion on compliance with
those provisions was not an objective of our audit and, accordingly, we do not express such an opinion.
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The Honorable Jeffrey R. Smith
Clerk of the Circuit Court and Comptroller
March 14, 2018
Page 2
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.
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R\ehmann
MANAGEMENT LETTER
March 14, 2018
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, 2017, which collectively comprise the Clerk's fund financial statements and have
issued our report thereon dated March 14, 2018.
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 Auditor
General.
Other Reporting Requirements
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, AT -C Section 315, regarding compliance
requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those
reports, which are dated March 14, 2018, should be considered in conjunction with this management
letter.
Prior Audit Findings
Section 10.554(1)(i)l ., 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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The Honorable Jeffrey R. Smith
Clerk of the Court and Comptroller
March 14, 2018
Page 2
Financial Management
Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any
recommendations to improve financial management. In connection with our audit, we did not have
any such recommendations.
Additional Matters
Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate 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 note 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.
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R\ehmann
INDEPENDENT ACCOUNTANTS' REPORT
March 14, 2018
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 Clerk 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, 2017. 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, 2017.
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.
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PROPERTY APPRAISER
341
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INDEPENDENT AUDITORS' REPORT
March 14, 2018
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, 2017, 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 of 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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The Honorable David Nolte
Property Appraiser
March 14, 2018
Page 2
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, 2017, 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, 2017, 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 14,
2018, 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.
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Indian River County, Florida
Property Appraiser
Balance Sheet
General Fund
September 30, 2017
ASSETS
Cash $ 194,948
Accounts receivable 13,280
Prepaid items 53,101
Total assets $ 261,329
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ 38,466
Due to other governments 217,254
Unearned revenues 1,629
Other deposits 3,980
Total liabilities 261,329
Fund Balances:
Nonspendable:
Prepaid items 53,101
Unassigned (53,101;
Total fund balances -
Total liabilities and fund balances $ 261,329
The accompanying notes are an integral part of the financial statements.
344
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, 2017
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
Variance
with Final
Budget
Budgeted Amount Positive
Original al Final Actual _(Negative)
$ 3,533,277 $ 3,632,539 $ 3,632,739 $ 200
- - 1,283 1,283
- 7,292 7,292
3,533,277 3,632,539 3,641,314 8,775
3,533,277 3,632,539 3,444,471 188,068
3,533,277 3,632,539 3,444,471 188,068
196,843 196,843
(196,843) (196,843)
- (196,843) (196,843)
The accompanying notes are an integral part of the financial statements.
345
Indian River County, Florida
Property Appraiser
Notes To Financial Statements
Year Ended September 30, 2017
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 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.
fC A •
Indian River County, Florida
Property Appraiser
Notes To Financial Statements
Year Ended September 30, 2017
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 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 $217,254 at
September 30, 2017, and are included as due to other governments on the balance sheet. Of this amount,
$196,843 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, 2017, the carrying amount of the Property Appraiser's deposits was $194,948 and the
bank balance was $377,046. 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.
347
Indian River County, Florida
Property Appraiser
Notes To Financial Statements
Year Ended September 30, 2017
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, 2017 were: regular class 7.92%, senior management class
22.71%, DROP class 13.26%, and elected official class 45.50%. 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 FRS 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, 2017, the Property Appraiser's actuarial contributions to FRS under
the Pension Plan were $179,148 and the Health Insurance Subsidy (HIS Program) were $35,672.
Employee contributions were $58,003. Both employer and employee contributions were equal to 100%
of the required contribution for each year.
W
Indian River County, Florida
Property Appraiser
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 3 — PENSION PLAN - Continued
Florida Retirement System - Continued
Pension Liabilities: At September 30, 2017, the Division of Retirement calculated the Property
Appraiser's liability of $2,028,627 for the FRS plan and $701,702 for the HIS Program, for a total of
$2,730,329 for its proportionate share of the net pension liability. The net pension liability was
measured as of June 30, 2017, and the total pension liability used to calculate the net pension liability
was determined by an actuarial valuation as of July 1, 2017. 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, 2017, the Property Appraiser's proportion was .006858% for
the FRS Pension Plan and .006563% for the HIS Program.
Discount Rate for Pension Plan: The discount rate used to measure the total pension liability was
7.10%. 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 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. 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 Net Pension Liability (NPL) of the Pension Plan calculated using the discount rate of
7.10%. 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 I% lower or I% higher than the current rate:
1% Decrease Current Discount 1% Increase
(6.10%) Rate (7.10%) (8.10%)
Property Appraiser's proportionate
share of NPL $ 3,671,692 $ 2,028,627 $ 664,506
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.
M
Indian River County, Florida
Property Appraiser
Notes To Financial Statements
Year Ended September 30, 2017
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 of the HIS Program calculated using the discount rate of 3.58%. 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 Current Discount 1% Increase
(2.58%) Rate (3.58%) (4.58%)
Property Appraiser's
proportionate share of NPL $ 800,735 $ 701,702 $ 619,213
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
(OPEB Trust). The Property Appraiser's 2017 annual contribution of $39,712 was funded by the Board
of County Commissioners as part of a total contribution determined by the OPEB Trust actuary. Further
information on the OPEB Trust 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 2017 at an annual cost of approximately
$315,767. Further details on the self-insurance program are discussed in the County -wide financial
statements and County notes.
350
Indian River County, Florida
Property Appraiser
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 6 — LONG-TERM LIABILITIES
Changes in Long -Term Liabilities
A summary of changes in long-term liabilities is as follows:
Beginning
Balance
10/01/16 Additions
Accrued Compensated Absences $ 18,974 $ 180,145
Deletions
$ 177,205
Ending
Balance
9/30/2017
$ 21,914
Of the $21,914 liability for accrued compensated absences, management estimates that $12,000 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.
351
R\ehmann
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 14, 2018
The Honorable David Nolte
Property Appraiser
Indian River Property Appraiser, 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, 2017, which collectively comprise the Property Appraiser's fund
financial statements and have issued our report thereon dated March 14, 2018.
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 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.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Property Appraiser's financial statements
are free of material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and
material effect on the determination of financial statement amounts. However, providing an opinion on
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Property Appraiser
March 14, 2018
Page 2
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.
4444-c- rP LLC
353
R\ehmann
MANAGEMENT LETTER
March 14, 2018
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, 2017,
which collectively comprise the Property Appraiser's fund financial statements and have issued our
report thereon dated March 14, 2018.
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 Auditor
General.
Other Reporting Requirements
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, AT -C Section 315, regarding compliance
requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those
reports, which are dated March 14, 2018, 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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The Honorable David Nolte
Property Appraiser
March 14, 2018
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Financial Management
Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any
recommendations to improve financial management. In connection with our audit, we did not have
any such recommendations.
Additional Matters
Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate 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 note 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.
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R\ehmann
INDEPENDENT ACCOUNTANTS' REPORT
March 14, 2018
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, 2017.
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, 2017.
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.
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SHERIFF
357
R\ehmann
INDEPENDENT AUDITORS' REPORT
March 14, 2018
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, 2017, 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 of 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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The Honorable Deryl Loar
Sheriff
March 14, 2018
Page 2
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, 2017, 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, 2017, 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 14,
2018, 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.
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359
Indian River County, Florida
Sheriff
Balance Sheet
Governmental Funds
September 30, 2017
ASSETS
Cash
Accounts receivable - net
Inventories
Total assets
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
General
Nonmajor
Fund Total
Special Governmental
Revenue Funds
$ 1,224,307 $
1,896,795 $
3,121,102
65,651
116,747
182,398
63,750
23,654
87,404
$ 1,353,708 $
2,037,196 $
3,390,904
$ 1,289,440 $
253,843 $
1,543,283
64,268
7,158
71,426
1,353,708
261,001
1,614,709
63,750 23,654 87,404
1,369,298 1,369,298
276,135 276,135
107,108 107,108
(63,750) - (63,750)
1.776.195 1.776.195
$ 1,353,708 $ 2,037,196 $ 3,390,904
The accompanying notes are an integral part of the financial statements.
360
Indian River County, Florida
Sheriff
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended September 30, 2017
REVENUES
Intergovernmental
Charges for services
Judgments, fines and forfeits
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
Nonmajor
Fund
Special
General Revenue
$ - $ 169,275 $
228,666
- 79,971
105,174 338,809
105,174 816,721
Total
Governmental
Funds
169,275
228,666
79,971
443,983
921,895
41,930,259
3,049,380 44,979,639
2,527,409
- 2,527,409
44,457,668
3,049,380 47,507,048
(44,352,494) (2,232,659) (46,585,153)
44,416,762
2,328,804
46,745,566
(64,268)
(7,158)
(71,426)
44,352,494
2,321,646
46,674,140
- 88,987 88,987
1,687,208 1,687,208
- $ 1,776,195 $ 1,776,195
The accompanying notes are an integral part of the financial statements.
361
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, 2017
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
Variance
with Final
Budget
Budgeted Amounts Positive
Original al Final Actual _(Negative)
$ - $ 105,174 $ 105,174 $ -
105,174 105,174 -
41,409,803
42,005,883
41,930,259
75,624
2,438,675
2,516,053
2,527,409
(11,356)
43,848,478
44,521,936
44,457,668
64,268
(43,848,478) (44,416,762) (44,352,494) 64,268
43,848,478 44,416,762 44,416,762 -
- (64,268) (64,268)
43,848,478 44,416,762 44,352,49464( ,268)
The accompanying notes are an integral part of the financial statements.
362
Indian River County, Florida
Sheriff
Statement of Fiduciary Net Position
Agency Fund
September 30, 2017
ASSETS
Cash $ 33,685
Total assets 33.685
LIABILITIES
Escrow deposits $ 33,685
Total liabilities $ 33,685
The accompanying notes are an integral part of the financial statements.
363
Indian River County, Florida
Sheriff
Notes To Financial Statements
Year Ended September 30, 2017
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 or when they are considered both
measurable and available. Revenues collected in excess of expenditures are not considered earned and
are reflected as liabilities.
WMA
Indian River County, Florida
Sheriff
Notes To Financial Statements
Year Ended September 30, 2017
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 it 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 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, 2017 amount totaled $64,268 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.
365
Indian River County, Florida
Sheriff
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 2 - CASH
Deposits
At September 30, 2017, the carrying amount of the Sheriff's deposits was $3,154,787 and the bank
balance was $4,277,616. 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
Balance
10/01/16 Additions
Ending
Balance
Deletions 09/30/17
Tangible Personal Property $ 23,488,997 $ 3,050,110 $ 1,049,473 $ 25,489,634
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.
k We
Indian River County, Florida
Sheriff
Notes To Financial Statements
Year Ended September 30, 2017
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, 2017 were: regular class 7.92%, special risk 23.27%, senior
management class 22.71%, DROP class 13.26%, and elected official class 45.50%. 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 FRS 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, 2017, the Sheriffs actuarial contributions to FRS under the Pension
Plan were $3,591,869 and the HIS Program were $413,844. Employee contributions were $660,931.
Both employer and employee contributions were equal to 100% of the required contribution for each
year.
367
Indian River County, Florida
Sheriff
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 5 — PENSION PLAN - Continued
Florida Retirement System - Continued
Pension Liabilities: At September 30, 2017, the Division of Retirement calculated the Sheriffs liability
of $39,773,209 for the FRS plan and $8,074,827 for the HIS Program, for a total of $47,848,036 for its
proportionate share of the net pension liability. The net pension liability was measured as of June 30,
2017, and the total pension liability used to calculate the net pension liability was determined by an
actuarial valuation as of July 1, 2017. 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, 2017, the
Sheriffs proportion was .134463% for the FRS Pension Plan and .075519% for the HIS Program.
Discount Rate for Pension Plan: The discount rate used to measure the total pension liability was
7.10%. 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 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. 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 Sheriff s proportionate share of the net pension
liability (NPL) of the Pension Plan calculated using the discount rate of 7.10%. 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 I% lower or I% higher than the current rate:
Sheriff s proportionate
share of NPL
1 % Decrease (6.10%
$ 71,987,106
Current Discount
Rate (7.10%)
$ 39,773,209
I% Increase (8.10%
$ 13,028,294
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.
Indian River County, Florida
Sheriff
Notes To Financial Statements
Year Ended September 30, 2017
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 Sheriff s proportionate share of the NPL of the
HIS Program calculated using the discount rate of 3.58%. 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
I% lower or I% higher than the current rate:
Current Discount
1% Decrease (2.58%) Rate (3.58%) 1% Increase (4.58%
Sheriff s proportionate
share of NPL $ 9,214,447 $ 8,074,827 $ 7,125,587
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 (OPEB
Trust). The Sheriff's 2017 annual contribution of $955,220 was funded by the Board of County
Commissioners as part of a total contribution determined by the OPEB Trust actuary. Further
information on the OPEB Trust 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 2017 at an annual cost of approximately $3,778,814.
Further details on this self-insurance program are disclosed in the County -wide financial statements and
County notes.
u6s
Indian River County, Florida
Sheriff
Notes To Financial Statements
Year Ended September 30, 2017
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, 2017:
Beginning
Balance
10/01/16 Additions Deletions
Ending
Balance
09/30/17
Accrued Compensated Absences $ 6,375,825 $ 4,104,894 $ 3,611,793 $ 6,868,926
Of the $6,868,926 liability for accrued compensated absences, management estimates that $3,454,880
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 $97,274 for the year ended September 30, 2017.
The following is a schedule by years of minimum future rentals to be paid by the Sheriff for
noncancelable operating leases as of September 30:
Year
Amount
2018
$ 82,593
2019
45,483
2020
35,343
2021
34,412
2022
7,439
Total Future Minimum Lease Payments
$ 205,270
NOTE 10 — COMMITMENTS AND CONTINGENCIES
Various suits and claims are currently pending against the Sheriff. It is impossible for the Sheriff to
accurately quantify the exposure involved given the jury's latitude in assessing compensatory and
punitive damages, and the court's latitude in awarding attorney's fees. The Sheriff intends to vigorously
defend against these lawsuits and believes he has a good chance of prevailing on their merits. 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.
370
R\ehmann
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 14, 2018
The Honorable Deryl Loar
Sheriff
Indian River Sheriff, 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, 2017, which collectively comprise the
Sheriff's fund financial statements and have issued our report thereon dated March 14, 2018.
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.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Sheriff's financial statements are free of
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on
the determination of financial statement amounts. However, providing an opinion on compliance with
those provisions was not an objective of our audit and, accordingly, we do not express such an opinion.
Rehmann is an independent member of Nexia International.
CPAs & Consultants Wealth Advisors Corporate Investigators
371
A member of
( Nexia
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The Honorable Deryl Loar
Sheriff
March 14, 2018
Page 2
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.
r
372
R\ehmann
MANAGEMENT LETTER
March 14, 2018
The Honorable Deryl Loar
Sheriff
Indian River County, Florida
Report on the Financial Statements
Rehmann Robson
5070 North Highway AIA,
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, 2017, which collectively comprise the Sheriff's fund financial statements and have
issued our report thereon dated March 14, 2018.
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 Auditor
General.
Other Reporting Requirements
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, AT -C Section 315, regarding compliance
requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those
reports, which are dated March 14, 2018, should be considered in conjunction with this management
letter.
Prior Audit Findings
Section 10.554(1)(i)l., 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.
Rehmann is an independent member of Nexia International.
CPAs & Consultants Wealth Advisors Corporate Investigators
373
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The Honorable Deryl Loar
Sheriff
March 14, 2018
Page 2
Financial Management
Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any
recommendations to improve financial management. In connection with our audit, we did not have
any such recommendations.
Additional Matters
Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate 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 note 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.
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374
SUPERVISOR OF ELECTIONS
375
R\ehmann
INDEPENDENT AUDITORS' REPORT
March 14, 2018
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 each 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, 2017, 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 of 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.
Rehmann is an independent member of Nexia International.
CPAs & Consultants Wealth Advisors Corporate Investigators
376
A member of
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The Honorable Leslie Swan
Supervisor of Elections
March 14, 2018
Page 2
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, 2017, 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, 2017, 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 14,
2018, 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.
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377
Indian River County, Florida
Supervisor of Elections
Balance Sheet
Governmental Funds
September 30, 2017
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:
Voting/election activities
Unassigned
Total fund balances
Total liabilities and fund balances
Nonmajor Fund Total
Special Governmental
General Revenue Funds
$ 57,645 $ 65,024 $ 122,669
2,586 - 2,586
$ 60,231 $ 65,024 $ 125,255
$ 51,683 $ - $ 51,683
8,548 - 8,548
- 61,227 61,227
60,231 61,227 121,458
2,586 - 2,586
- 3,797 3,797
(2,586) _ - (2,586)
3.797 3.797
$ 60,231 $ 65,024 $ 125,255
The accompanying notes are an integral part of the financial statements.
378
Indian River County, Florida
Supervisor of Elections
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended September 30, 2017
Nonmajor
Fund Total
Special Governmental
General Revenue Funds
REVENUES
Charges for services
$ 534 $
- $
534
Miscellaneous
16,573
-
16,573
Total revenues
17,107
-
17,107
EXPENDITURES
General government
1,273,610
-
1,273,610
Total expenditures
1,273,610
-
1,273,610
Excess of revenues over
(under) expenditures
(1,256,503)
-
(1,256,503)
OTHER FINANCING SOURCES (USES)
Transfers from Board of County Commissioners
1,268,848
-
1,268,848
Transfers from other funds
-
3,797
3,797
Transfers to Board of County Commissioners
(8,548)
-
(8,548)
Transfers to other funds
(33797)
-
(3,797)
Total other financing sources (uses)
1,256,503
3,797
1,260,300
Net change in fund balances
-
3,797
3,797
Fund balances at beginning of year
-
-
-
Fund balances at end of year
$ - $
3,797 $
3,797
The accompanying notes are an integral part of the financial statements.
379
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, 2017
REVENUES
Charges for services
Miscellaneous
Total revenues
EXPENDITURES
General government
Total expenditures
Excess of revenues over
(under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers from Board of County
Commissioners
Transfers to Board of County
Commissioners
Transfers to other funds
Total other financing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Variance
with Final
Budget
Budgeted Amount Positive
Original Final Actual (Negative)
$ - $ - $ 534 $ 534
- 16,573 16,573 -
- 16,573 17,107 534
1,265,239 1,281,624 1,273,610 8,014
1,265,239 1,281,624 1,273,610 8,014
(1,265,239) (1,265,051) (1,256,503) 8,548
1,268,848 1,268,848 1,268,848 -
- - (8,548) (8,548)
(3,609 (3,797 (3,797)-
1,265,239 1,265,051 1,256,503 (8,548
The accompanying notes are an integral part of the financial statements.
380
Indian River County, Florida
Supervisor of Elections
Notes To Financial Statements
Year Ended September 30, 2017
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 it 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.
k:
Indian River County, Florida
Supervisor of Elections
Notes To Financial Statements
Year Ended September 30, 2017
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 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
$8,548 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.
I. 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.
k:
Indian River County, Florida
Supervisor of Elections
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 2 - CASH
Deposits
At September 30, 2017, the carrying amount of the Supervisor of Elections' deposits was $122,669, and
the bank balance was $170,088. 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 Deseription: 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, 2017 were: regular class 7.92%, senior class 22.71%, DROP
class 13.26%, and elected official class 45.50%. 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.
k:
Indian River County, Florida
Supervisor of Elections
Notes To Financial Statements
Year Ended September 30, 2017
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, 2017, the Supervisor of Elections' actuarial contribution to FRS under
the Pension Plan were $72,317 and the HIS Program were $8,777. Employee contributions were
$15,860. Both employer and employee contributions were equal to 100% of the required contribution
for each year.
Pension Liabilities: At September 30, 2017, the Division of Retirement calculated the Supervisor of
Elections' liability of $797,364 for the FRS plan and $179,073 for the HIS Program, for a total of
$976,437 for its proportionate share of the net pension liability. The net pension liability was measured
as of June 30, 2017, and the total pension liability used to calculate the net pension liability was
determined by an actuarial valuation as of July 1, 2017. 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, 2017, the Supervisor of Elections' proportion was .002696%
for the FRS Pension Plan and .001675% for the HIS Program.
Discount Rate for Pension Plan: The discount rate used to measure the total pension liability was
7.10%. 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 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. 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.
c:,
Indian River County, Florida
Supervisor of Elections
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 3 — PENSION PLAN - Continued
Florida Retirement System - Continued
Sensitivity of the Supervisor of Election'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 net pension liability (NPL) of the Pension Plan calculated using the discount
rate of 7.10%. 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:
1% Decrease Current Discount 1% Increase
(6.10%) Rate (7.10%) (8.10%)
Supervisor of Elections's
proportionate share of NPL $ 1,443,181 $ 797,364 $ 261,188
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 of the HIS Program calculated using the discount rate of 3.58%. Also
presented is what the Supervisor of Election'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 Current Discount I% Increase
(2.58%) Rate (3.58%) (4.58%)
Supervisor of Election's
proportionate share of NPL $ 204,346 $ 179,073 $ 158,022
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.
k:
Indian River County, Florida
Supervisor of Elections
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 4 — OTHER POSTEMPLOYMENT BENEFITS
The Supervisor of Elections participated in the Indian River County Other Post Employment Benefit
Trust (OPEB Trust). The Supervisor of Election's 2017 annual contribution of $12,410 was funded by
the Board of County Commissioners as part of a total contribution determined by the OPEB Trust
actuary. Further information on the OPEB Trust 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 2017 at an annual cost of
approximately $71,547.
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, 2017:
Beginning Ending
Balance Balance
10/1/2016 Additions Deletions, 9/30/2017
Accrued Compensated Absences $ 25,023 $ 30,995 $ 32,358 $ 23,660
Of the $23,660 liability for accrued compensated absences, management estimates that $10,468 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.
k:.
Indian River County, Florida
Supervisor of Elections
Notes To Financial Statements
Year Ended September 30, 2017
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 $4,603 for the year ended September 30, 2017.
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
Amount
2018
$ 3,588
2019
3,588
2020
3,588
2021
3,588
2022
1,442
$ 15,794
k:
R\ehmann
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 14, 2018
The Honorable Leslie Swan
Supervisor of Elections
Indian River Supervisor of Elections, 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,
2017, which collectively comprise the Supervisor of Elections' fund financial statements and have issued
our report thereon dated March 14, 2018.
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 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 Supervisor of Elections' financial statements
are free of material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and
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A member of
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The Honorable Leslie Swan
Supervisor of Elections
March 14, 2018
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 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.
4444-1 rL+n. LLC
R\ehmann
MANAGEMENT LETTER
March 14, 2018
The Honorable Leslie Swan
Supervisor of Elections
Indian River County, Florida
Report on the Financial Statements
Rehmann Robson
5070 North Highway AIA,
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, 2017, which collectively comprise the
Supervisor of Elections' fund financial statements and have issued our report thereon dated March 14,
2018.
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 Auditor
General.
Other Reporting Requirements
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, AT -C Section 315, regarding compliance
requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those
reports, which are dated March 14, 2018, 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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390
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The Honorable Leslie Swan
Supervisor of Elections
March 14, 2018
Page 2
Financial Management
Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any
recommendations to improve financial management. In connection with our audit, we did not have
any such recommendations.
Additional Matters
Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate 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 note 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 Supervisor of Elections and applicable
management and is not intended to be and should not be used by anyone other than these specified
parties.
4169 rL-nt- LLC
391
�OR
392
TAX COLLECTOR
393
R\ehmann
INDEPENDENT AUDITORS' REPORT
March 14, 2018
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 each 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, 2017, 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 of 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.
Rehmann is an independent member of Nexia International.
CPAs & Consultants Wealth Advisors Corporate Investigators
394
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The Honorable Carole Jean Jordan
Tax Collector
March 14, 2018
Page 2
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, 2017, 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, 2017, 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 14,
2018, on our consideration of the Tax Collector'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 Tax Collector's internal
control over financial reporting and compliance.
444e rL.in. LLC
395
Indian River County, Florida
Tax Collector
Balance Sheet
General Fund
September 30, 2017
ASSETS
Cash and investments
Accounts receivable
Inventories
Prepaid items
Total assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Due to other governments
Unearned revenues
Other deposits
Total liabilities
Fund Balances:
Nonspendable:
Inventories
Prepaid items
Unassigned
Total fund balances
Total liabilities and fund balances
$ 2,775,088
256,038
2,497
16,269
$ 3,049,892
$ 251,751
2,732,504
65,162
475
3,049,892
2,497
16,269
(18,766
3,049,892
The accompanying notes are an integral part of the financial statements.
396
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, 2017
REVENUES
Charges for services
Interest
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
Variance with
Final Budget
Budgeted Amount Positive
Original Final Actual (Negative)
$ 6,419,100 $ 6,419,100 $ 6,447,872 $ 28,772
8,000 8,000 18,167 10,167
6,427,100 6,427,100 6,466,039 38,939
3,895,815 4,004,607 3,988,830 15,777
3,895,815 4,004,607 3,988,830 15,777
2,531,285 2,422,493 2,477,209 54,716
(2,531,285) (2,422,493) (2,477,2091 (54,716
(,531,285 (2,422,493 2,477,209) 54,7_
The accompanying notes are an integral part of the financial statements.
397
Indian River County, Florida
Tax Collector
Statement of Fiduciary Net Position
Agency Fund
September 30, 2017
ASSETS
Cash and investments
Total assets
LIABILITIES
Due to other governments
Total liabilities
$ 4,474,080
$ 4,474,080
$ 4,474,080
$ 4,474,080
The accompanying notes are an integral part of the financial statements.
M.
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2017
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 or when they are considered both
measurable and available. Revenues collected in excess of expenditures are not considered earned and
are reflected as liabilities.
9..
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2017
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 the 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 $65,162 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 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.
X11
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
I. 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 $2,732,504 at
September 30, 2017, and are included as due to other governments on the balance sheet. Of this amount,
$2,477,209 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 AND INVESTMENTS
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, 2017, the carrying amount of the Tax Collector's deposits was $6,957,456 and
the bank balance was $7,080,662.
B. Investments
At September 30, 2017, the Tax Collector had investments with a balance of $291,712. The Florida
Prime had a balance of $101,593 and weighted average maturity of 52 days. The Florida Trust Day to
Day Fund had a balance of $126,135 and weighted average maturity of 45 days. The FL CLASS had a
balance of $63,984 and a weighted average maturity of 56 days.
401
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 2 - CASH AND INVESTMENTS - Continued
B. Investments - Continued
Fair Value Measurement
The Tax Collector 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. 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.
The Tax Collector had the following recurring fair value measurements as of September 30, 2017:
Florida Prime
Florida Trust Day to Day Fund
FLCLASS
Total Investments
C. Deposit and Investment Policy
Level Level Level Total
$ - $ 101,593 $ - $ 101,593
- 126,135 - 126,135
63,984 - 63,984
$ - $ 291,712 $ - $ 291,712
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.
Concentration Risk
The Tax Collector's cash and investment policy limits portfolio composition to the following maximum
guidelines:
Local Government Surplus Funds Trust Fund (Florida Prime) 50%
Florida Trust Day to Day Fund (Florida Trust) 50%
Florida Cooperative Liquid Assets Securities System (FLCLASS) 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%
402
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 2 - CASH AND INVESTMENTS - Continued
C. Deposit and Investment Policy - Continued
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, 2017
the Florida PRIME, the Florida Trust Day to Day Fund and FLCLASS 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
M
the Florida Trust Day to Day Fund, which was held by UB Fund Services; the FLCLASS, which was
held by Wells Fargo Bank, N.A.; and the Florida PRIME, which was held by BNY Mellon.
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.
403
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 4 — PENSION PLAN - Continued
Florida Retirement System - Continued
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, 2017 were: regular class 7.92%, senior class 22.71%, DROP
class 13.26%, and elected official class 45.50%. 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 FRS 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, 2017, the Tax Collector's actuarial contributions to FRS under the
Pension Plan were $187,293 and the Health Insurance Subsidy (HIS Program) were $31,484. Employee
contributions were $53,817. Both employer and employee contributions were equal to 100% of the
required contribution for each year.
Him,
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2017
NOTE 4 — PENSION PLAN - Continued
Florida Retirement System - Continued
Pension Liabilities: At September 30, 2017, the Division of Retirement calculated the Tax Collector's
liability of $2,051,627 for the FRS plan and $614,883 for the HIS Program, for a total of $2,666,510 for
its proportionate share of the net pension liability. The net pension liability was measured as of June 30,
2017, and the total pension liability used to calculate the net pension liability was determined by an
actuarial valuation as of July 1, 2017. 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,
2017, the Tax Collector's proportion was .006936% for the FRS Pension Plan and .005751% for the HIS
Program.
Discount Rate for Pension Plan: The discount rate used to measure the total pension liability was
7.10%. 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 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. 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 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 net pension liability (NPL) of the Pension Plan calculated using the discount rate of 7.10%. 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 I% lower or I% higher than the current rate:
Tax Collector's proportionate
share of NPL
I% Decrease (6.10%
$ 3,713,321
Current Discount
Rate (7.10%)
$ 2,051,627
1 % Increase (8.10%
$ 672,040
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.
405
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2017
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 HIS Program: The following presents the Tax Collector's proportionate share of
the NPL of the HIS Program calculated using the discount rate of 3.58%. 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:
Current Discount
1% Decrease (2.58%) Rate (3.58%) 1% Increase (4.58%
Tax Collector's proportionate
share of NPL $ 701,663 $ 614,883 $ 542,600
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.
NOTE 5 — OTHER POSTEMPLOYMENT BENEFITS
The Tax Collector participated in the Indian River County Other Postemployment Benefits Trust (OPEB
Trust). The Tax Collector paid their 2017 annual contribution of $59,568 which was their part of the
total contribution determined by the OPEB Trust actuary. Further information on the OPEB Trust 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 2017 at an annual cost of approximately $381,142.
Further details of this self-insurance program are discussed in the risk management note in the County-
wide financial statements.
R1.
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2017
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, 2017:
Beginning
Balance
10/1/2016 Additions Deletions
Accrued Compensated Absences $ 125,190 $ 27,748 $ 35,330
Ending
Balance
9/30/2017
$ 117,608
Of the $117,608 liability for accrued compensated absences, management estimates that $13,994 will be
due and payable within one year. The long-term liabilities are not reported in the financial statements of
the Tax Collector since they are not payable from available spendable resources. They are reported in
the financial statements of the County.
NOTE 8 — OPERATING LEASES
The Tax Collector has entered into noncancelable operating leases as lessee for office space and office
equipment. Lease expenditures totaled $119,707 for the fiscal year ended September 30, 2017.
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
2018
2019
2020
2021
Total future minimum lease payments
Amount
$ 122,447
64,820
66,765
51,192
$ 305,224
407
R\ehmann
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 14, 2018
The Honorable Carole Jean Jordan
Tax Collector
Indian River Tax Collector, 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, 2017, which collectively
comprise the Tax Collector's fund financial statements and have issued our report thereon dated
March 14, 2018.
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 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 Tax Collector's financial statements are
free of material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and
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Tax Collector
March 14, 2018
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 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.
44441, rL4.-A- LLC
,
R\ehmann
MANAGEMENT LETTER
March 14, 2018
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, 2017, which collectively comprise the Tax Collector's fund financial
statements and have issued our report thereon dated March 14, 2018.
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 Auditor
General.
Other Reporting Requirements
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, AT -C Section 315, regarding compliance
requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those
reports, which are dated March 14, 2018, 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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Tax Collector
March 14, 2018
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Financial Management
Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any
recommendations to improve financial management. In connection with our audit, we did not have
any such recommendations.
Additional Matters
Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate 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 note 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.
4441e,W"A- LLC
411
R\ehmann
INDEPENDENT ACCOUNTANTS' REPORT
March 14, 2018
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, 2017. 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, 2017.
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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