HomeMy WebLinkAbout2019-064CIndian River County
Florida
Comprehensive Annual
Financial Report
For 1 Year
October 1, 2017 thvougii e tember 30, 2018
INDIAN RIVER COUNTY, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR
OCTOBER 1, 2017
THROUGH
SEPTEMBER 30, 2018
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, 2018
Board of County Commissioners as of September 30, 2018
Peter D. O'Bryan Susan Adams
Chairman Joseph E. Flescher
Bob Solari Tim Zorc
Vice -Chairman
Current Board of County Commissioners (effective November 22, 2018)
Bob Solari Peter D. O'Bryan
Chairman Joseph E. Flescher
Susan Adams Tim Zorc
Vice -Chairman
Constitutional Officers as of September 30, 2018
Jeffrey R. Smith David C. Nolte **
Clerk of the Ciruit Court and Comptroller Property Appraiser
**Wesley Davis was appointed January 8, 2019
Leslie R. Swan
Supervisor of Elections
Jason Brown
County Administrator
Michael Zito
Assistant County Administrator
Deryl Loar
Sheriff
County Management
Kristin Daniels
Budget Director
Carole Jean Jordan
Tax Collector
Dylan Reingold
County Attorney
Rich Szpyrka
Director of Public Works
Stan Boling Tad Stone
Director of Community Development Director of Emergency Services
Vincent Burke
Director of Utilities
Indian River County, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS
Fiscal Year Ended September 30, 2018
INTRODUCTORY SECTION
Page
Number
LETTER OF TRANSMITTAL i
ORGANIZATION CHART vii
CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE
IN FINANCIAL REPORTING viii
FINANCIAL SECTION
INDEPENDENT AUDITORS' REPORT 1
MANAGEMENT'S DISCUSSION AND ANALYSIS 5
BASIC FINANCIAL STATEMENTS:
Government -wide Financial Statements:
Statement of Net Position 21
Statement of Activities 23
Fund Financial Statements:
Balance Sheet - Governmental Funds 24
Reconciliation of Total Governmental Fund Balances to
Net Position of Governmental Activities 26
Statement of Revenues, Expenditures, and Changes in
Fund Balances - Governmental Funds 28
Reconciliation of the Statement of Revenues, Expenditures, and Changes
in Fund Balances of Governmental Funds to the Statement of Activities 30
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual - General Fund 31
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual - Impact Fees Fund 32
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual - Secondary Roads Construction Fund 33
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual -Transportation Fund 34
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual - Emergency Services District Fund 35
Statement of Fund Net Position - Proprietary Funds 37
Indian River County, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS - CONTINUED
Fiscal Year Ended September 30, 2018
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
Schedule of the County's Proportionate Share of the Net Pension Liability - Retiree
Health Insurance Subsidy (HIS) Program Defined Benefit Pension Plan
Schedule of the County's Contributions - FRS Defined Benefit Pension Plan
Schedule of the County's Contributions - HIS Defined Benefit Pension Plan
Schedule of Changes in Net OPEB Liability and Related Ratios
Schedule of OPEB Contributions
Notes to Schedule of OPEB Contributions
Schedule of OPEB Investment Returns Multiyear
110
110
111
111
112
113
114
115
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES:
Combining Balance Sheet - Nonmajor Governmental Funds 122
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances - Nonmajor Governmental Funds 130
Budgetary Comparison Schedules 138
Combining Statement of Net Position - Internal Service Funds 170
Combining Statement of Revenues, Expenses, and
Changes in Fund Net Position - Internal Service Funds 171
Combining Statement of Cash Flows - Internal Service Funds 172
Combining Statement of Changes in Assets and Liabilities - Agency Fund 176
SCHEDULE 1
SCHEDULE 2
SCHEDULE 3
SCHEDULE 4
SCHEDULES
SCHEDULE 6
SCHEDULE 7
SCHEDULE 8
SCHEDULE 9
SCHEDULE 10
SCHEDULE 11
SCHEDULE 12
SCHEDULE 13
SCHEDULE 14
Indian River County, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS- CONTINUED
Fiscal Year Ended September 30, 2018
STATISTICAL SECTION
Net Position by Component - Last Ten Fiscal Years
Changes in Net Position - Last Ten Fiscal Years
Fund Balances, Governmental Funds - Last Ten Fiscal Years
Changes in Fund Balances, Governmental Funds -
Last Ten Fiscal Years
Tax Revenues by Source, Governmental Funds -
Last Ten Fiscal Years
Assessed Value and Actual Value of Taxable Property -
Last Ten Fiscal Years
Property Tax Rates - Direct and Overlapping Tax Rates -
Last Ten Fiscal Years
Principal Property Taxpayers - Year 2018 and Year 2009
Property Tax Levies and Collections - Last Ten Fiscal Years
Ratios of Outstanding Debt by Type - Last Ten Fiscal Years
Ratio of Net General Bonded Debt Outstanding to Taxable Value
and Net Bonded Debt Per Capita - Last Ten Fiscal Years
Computation of Legal Debt Margin
Direct and Overlapping Governmental Activities Debt
Pledged Revenue Coverage - Water and Sewer Revenue Bonds -
Last Ten Fiscal Years
Page
Number
178
180
184
186
188
189
190
192
193
194
196
197
198
200
SCHEDULE 15
SCHEDULE 16
SCHEDULE 17
SCHEDULE 18
SCHEDULE 19
SCHEDULE 20
SCHEDULE 21
SCHEDULE 22
SCHEDULE 23
SCHEDULE 24
SCHEDULE 25
Indian River County, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS- CONTINUED
Fiscal Year Ended September 30, 2018
Demographic and Economic Statistics - Last Ten Years
Principal Employers - Year 2018 and Year 2009
Building Permits - Last Ten Fiscal Years
Operating Indicators by Function/Program - Last Ten Fiscal Years
Full Time Equivalent County Government Employees
by Function/Program - Last Ten Fiscal Years
Capital Asset Statistics by Function/Program - Last Ten Fiscal Years
Department of Utility Services - Historical Rate Structure -
Last Ten Fiscal Years
Water and Wastewater Customers - Last Ten Fiscal Years
Top 10 High Volume Customers of Utility Services
Capacity Charges - Utilities Department - Last Ten Fiscal Years
Pledged Revenues for Spring Training Facility Revenue Bonds, Series 2001 -
Last Ten Fiscal Years
Page
Number
202
203
204
206
210
212
216
217
218
219
220
Indian River County, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS- CONTINUED
Fiscal Year Ended September 30, 2018
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 221
County Management Letter 223
Independent Accountants' Report 225
Federal and State Grants:
Independent Auditors' Report on the Schedule of Expenditures of
Federal Awards and State Projects Required by Uniform Guidance
and Chapter 10.550, Rules of the Auditor General 226
Schedule of Expenditures of Federal Awards and State Projects 227
Notes to Schedule of Expenditures of Federal Awards and State Projects 232
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 234
Schedule of Findings and Questioned Costs 236
Summary Schedule of Prior Audit Findings 238
Impact Fee Affidavit 239
Indian River County, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS- CONTINUED
Fiscal Year Ended September 30, 2018
AUDITOR GENERAL REPORTS SECTION
Page
Number
BOARD OF COUNTY COMMISSIONERS
Independent Auditors' Report 242
Fund Financial Statements 244
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 321
Management Letter 323
Independent Accountants' Report 325
CLERK OF THE CIRCUIT COURT AND COMPTROLLER
Independent Auditors' Report 328
Fund Financial Statements 330
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 342
Management Letter 344
Independent Accountants' Report 346
PROPERTY APPRAISER
Independent Auditors' Report 348
Fund Financial Statements 350
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 358
Management Letter 360
Independent Accountants' Report 362
Indian River County, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS -CONTINUED
Fiscal Year Ended September 30, 2018
Page
Number
SHERIFF
Independent Auditors' Report 364
Fund Financial Statements 366
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 377
Management Letter 379
SUPERVISOR OF ELECTIONS
Independent Auditors' Report 382
Fund Financial Statements 384
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 394
Management Letter 396
TAX COLLECTOR
Independent Auditors' Report 400
Fund Financial Statements 402
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 414
Management Letter 416
Independent Accountants' Report 418
JEFFREY R. SMITH, CPA, CGFO, CGMA
Clerk of Circuit Court & Comptroller
1801 27th Street
Vero Beach, FL 32960
Telephone: (772) 226-1945
March 6, 2019
To the Citizens of Indian River County:
The Comprehensive Annual Financial Report of Indian River County, Florida for the fiscal year ended
September 30, 2018, 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 (Rehmann Robson LLC) on the County's financial statements for the year ended
September 30, 2018 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, Title 2 U.S. Code of Federal Regulations
(CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for
Federal Awards (Uniform Guidance) and Chapter 10.550, Rules of the Auditor General.
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.
i
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 proper fiscal management 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 May 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 in July 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 Cleveland Clinic Indian River Hospital.
Local Economy
Indian River County's estimated population of 151,825 was a 1.92% 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 29.7%. 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 9.93% of total employed persons, are the School
District, Cleveland Clinic Indian River Hospital and Indian River County government. The
unemployment rate has decreased from 4.6% in 2017 to 3.9% in 2018.
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 $16.3 billion in 2017 to $17.3 billion in 2018. Construction activity saw a
significant increase with 8.5% more building permits issued for new construction in 2018 over 2017.
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 4.3 million boxes
in 2017 to 2.6 million in 2018. This ranked the County 7th among all Florida counties in total citrus
production. The acreage dedicated to citrus production within the County also saw a 19% decrease from
23,761 acres in 2017 to 19,228 acres in 2018, ranking Indian River County 8th among all Florida
counties.
iii
Long Term Financial Planning and Major Initiatives
Chapter 163 Florida Statutes and Florida Administrative Code Rule 9J-5 requires each local government
to have a Comprehensive Land Use Plan. An important part of this plan is the Capital Improvements
Plan (CIP) which evaluates the need for public facilities in support of the Future Land Use Element, to
estimate 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:
• 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 a Florida Department of Environmental Protection 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 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 County 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 $3 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.
• 58th Avenue Resurfacing from 25th Street to 49th Street — The $2.8 million proposed improvements to
58th Avenue from north of 26th Street to south of 49th Street consist of reconstruction the roadway
utilized full depth reclamation, milling and resurfacing, widening the existing shoulders to 5 -feet,
structural asphalt, surface asphalt, minor drainage improvements, utility adjustments, signage, and
pavement markings. This project is a Florida Department of Transportation Small County Outreach
Program funded project.
• Landfill Expansion and Partial Closure — The construction of Cell 2 of Segment 3 (approximately
10.6 acres in size), partial closure of Segment 2 (approximately 25 acres in size) and expansion of
the landfill gas system is underway at a cost of approximately $16 million.
iv
• North County Office at Sebastian Corners Renovations — Improvements and renovations to the
existing commercial plaza known as Sebastian Corners are being done for the relocation of the North
County offices at a cost of $1.8 million which is funded by the Optional Sales Tax Fund.
• Countywide Meter Replacement Program - Indian River County Department of Utility Services is
currently working on a countywide meter replacement program to replace over 32,000 manual read
meters, many of which are over 20 years old. Aging manual read meters which require a meter
reader to physically drive to every meter location to obtain a visual read are being replaced with an
Automated Meter Reading (AMR) solution. With AMR, a meter read is obtained by driving by a
location and automatically receiving the meter read via a hand held meter reading device, tablet or
laptop computer.
Major projects or initiatives that were completed during fiscal year 2018 are listed below:
• Fire Station #14 — The $2 6 million facility on 26th Street was opened to accommodate new growth
and development in the County.
• Administration Buildings Roof Replacements- The roof replacements of County Administration
Buildings A & B were completed at a cost of $1.8 million.
• Vero Lake Estates Sidewalks — The 87th Street and 91st Avenue sidewalk and drainage
improvements were constructed totaling $1.2 million.
• County Road 512 Resurfacing - The $3.5 million project consisted 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.
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
v
balance to fund recurring expenditures. Information on the County's fund balance policy can be found
in County Note 16.
During fiscal year 2018, the County implemented Government Accounting Standards Board (GASB)
Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than
Pensions. The objective of this Statement is to improve accounting and financial reporting by state and
local governments for postemployment benefits (other postemployment benefits or OPEB) other than
pensions. It also improves information provided by state and local governmental employers about
financial support for OPEB that is provided by other entities.
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, 2017. This was
the 35th 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, 2017. This was the third 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 2017-2018 fiscal year. This was the 27th 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 BCC Departmental Organization
Residents of Indian River County
Clerk of Circuit
Court
Finance
Department
Sheriff
Parks and
Recreation
Veterans
Service
Libraries
Human Services
Assistant
County Administrator/
General Services
Supervisor of
Elections
Board of • Property
County Appraiser
Commissioners
County Administrator
County Attorney
Public
Engineering
Road &
Bridge
Traffic
Fleet
Management
Secondary Road
Const.
Stormwater
Coastal
Engineering
Facilities
Management
Telecomm.
Utilities
Services
Emergency
Services
Wastewater
Treatment
Water
Production
General &
Engineering
Customer
Service
Wastewater
Collection
Water
Distribution
Osprey Marsh
Solid Waste
Disposal District
vii
Commission
Office
Community
Development
Emergency
Management
Fire/Rescue
Radiological
Emergency
Preparedness
Emergency
Base Grant
Animal
Control
911
Coordinator
Tax
Collector
Assistant to Admin.
Planning
Division
Envir. Planning &
Code Enforcement
Metropolitan
Planning Org.
IRCLHAP /
SHIP Program
Building
Division
Ag
Extension
Soil & Water
Conservation
Rental Assistance
Geographic
Info Systems
Office of
Mgmt. & Budget
L
Risk
Management
Computer
Services
Purchasing
Mailroom
Switchboard
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, 2017
P 7y u.%e
Executive Director/CEO
viii
Rehmann
INDEPENDENT AUDITORS' REPORT
March 5, 2019
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
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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, 2018, 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.
Rehmann is an independent member of Nexia International.
CPAs & Consultants Wealth Advisors Corporate Investigators
1
A membeof
IVexia
International
The Honorable Board of County Commissioners
Indian River County, Florida
March 5, 2019
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,
2018, 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.
Implementation of GASB Statement No. 75
As described in Note 14, the County implemented the provisions of GASB Statement No. 75,
Accounting and Financial Reporting for Postemployment Benefits Other than Pensions, in the
current year. Accordingly, beginning net position of governmental activities and business -type
activities were restated. Our opinion is not modified with respect to this matter.
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 awhole.
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 5, 2019
Page 3
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March 5,
2019, 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.
"ecoliftatfoca7e:-.14f-nt, LLC
3
4
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2018
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, 2018. 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 2017.
• The assets and deferred outflows of resources of the County exceeded its liabilities and deferred
inflows by $1,003.2 million (net position). Of this amount, $92.4 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 $24.8 million or 2.5%. Governmental activities
accounted for $20.4 million of this increase and business -type activities accounted for the
remaining $4.4 million. Further information can be found on page 10.
• Governmental activities expenses reflected a 6.2% increase ($172.9 million in 2017 to $183.6
million in 2018) and business -type activities expenses reflected a 2.4% increase ($59.3 million in
2017 to $60.7 million in 2018). Further information can be found on page 10.
• Unassigned fund balance for the general fund was $47.9 million, or a 10.6% increase from the
prior year general fund unassigned fund balance of $43.3 million.
OVERVIEW OF FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the County's basic financial
statements. The County's basic financial statements are composed of three elements: 1) government -wide
financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report
also contains other supplementary information in addition to the basic financial statements themselves.
Government -wide financial statements
The government -wide financial statements are designed to provide readers with a broad overview of the
County's finances, in a manner similar to a private -sector business.
The Statement of Net Position presents information on all of the County's assets, liabilities, and deferred
inflows/outflows of resources, with the difference reported as net position. Over time, increases or
decreases in net position may serve as a useful indicator of whether the financial position of the County is
improving or deteriorating.
5
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2018
The Statement of Activities presents information showing how the government's net position changed
during the most recent fiscal year. All changes in net position are reported as soon as the underlying
event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and
expenses are reported in this statement for some items that will only result in cash flows in future fiscal
periods (e.g., uncollected grant revenue and earned but unused vacation leave).
Both of the government -wide financial statements distinguish functions of the County that are principally
supported by taxes and intergovernmental revenues (governmental activities) from other functions that
are intended to recover all or a significant portion of their costs through user fees and charges (business -
type activities). The governmental activities of the County include general government, public safety,
physical environment, transportation, economic environment, human services, culture and recreation, and
court related functions. The major business -type activities include a water and sewer utility, a solid waste
disposal district, a golf course, and a building department.
The government -wide financial statements include not only the Board of County Commissioners (BCC),
but also the Clerk of the Circuit Court and Comptroller, Property Appraiser, Sheriff, Supervisor of
Elections and Tax Collector. The government -wide financial statements can be found on pages 21 and 23
of this report.
Fund financial statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been
segregated for specific activities or objectives. The County, like other state and local governments, uses
fund accounting to ensure and demonstrate compliance with finance -related legal requirements. All of the
funds of the County can be divided into three categories: governmental funds, proprietary funds, and
fiduciary funds.
Governmental funds. Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government -wide financial statements. However, unlike the
government -wide financial statements, governmental fund financial statements focus on near-term
inflows and outflows of spendable resources, as well as on balances of spendable resources available at
the end of the fiscal year. Such information may be useful in evaluating a government's near-term
financial requirements.
Because the focus of governmental funds is narrower than that of the government -wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government -wide financial statements. By doing
so, readers may better understand the long-term impact of the government's near-term financial
decisions. Both the governmental fund Balance Sheet and the governmental fund Statement of Revenues,
Expenditures, and Changes in Fund Balances provide a reconciliation to facilitate this comparison
between governmental funds and governmental activities.
6
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2018
The County maintains numerous 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, special revenue funds, and capital
projects fund. All are considered to be major funds. Data from the remaining 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 117-167 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 169-173 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 47-109 of this report.
7
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2018
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
110-115 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 $1,003.2 million at the close of the fiscal year.
Current and other assets
Capital assets
Total assets
Deferred outflows of resources
Other liabilities
Long-term liabilities
Total liabilities
Indian River County Net Position (In Millions)
Governmental Business -type
Activities Activities Total
2018 2017 2018 2017 2018 2017
$ 269.7 $ 257.7 $ 143.9 $ 134.9 $ 413.6 $ 392.6
570.4 564.4 215.7 222.8 786.1 787.2
840.1 822.1 359.6 357.7 1,199.7 1,179.8
54.5 54.4 4.5 4.7 59.0 59.1
140.3
39.8
180.1
Deferred inflows of resources 22.6
132.9 17.1 16.1 157.4 149.0
43.7 33.9 37.0 73.7 80.7
176.6 51.0 53.1 231.1 229.7
8.2 1.8 0.5 24.4 8.7
Net position:
Net investment in capital assets 553.5 542.9 197.9 201.8 751.4 744.7
Restricted 159.4 150.1 - - 159.4 150.1
Unrestricted (21.0) (1.3) 113.4 107.0 92.4 105.7
Total net position $ 691.9 $ 691.7 $ 311.3 $ 308.8 $ 1,003.2 $ 1,000.5
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 net OPEB liability is now reflected on the financial statements, resulting in a
decrease in unrestricted net position. An increase in the net pension liability also contributed to this
decrease.
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.
8
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2018
Indian River County Total Net Position (In Millions)
September 30, 2017 and 2018
net investment in capital assets
restricted
unrestricted
0
200 400 600
800
2017
■2018
By far, the largest portion of the County's net position (75% or $751.4 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 (16% or $159 4 million) represents resources that are subject to
external restrictions on how they may be used. The remaining balance of the unrestricted net position
($92.4 million) may be used to meet the government's ongoing obligations to its citizens and creditors.
9
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2018
Indian River County Changes in Net Position (In Millions)
Revenues:
Program revenues:
Charges for services
Operating grants/contributions
Capital grants/contributions
General revenues:
Property taxes
Sales taxes
Franchise fees
Other
Total revenues
Governmental Business -type
Activities Activities
Total
2018 2017 2018 2017 2018 2017
$ 27.3 $ 25.3 $ 55.5 $ 52.8 $ 82.8 $ 78.1
28.8 32.1 1.5 1.5 30.3 33.6
7.1 6.8 6.8 6.1 13.9 12.9
98.6
27.1
9.4
5.7
204.0
90.2
25.6
9.1
4.1
193.2
1.3
65.1
0.9
61.3
98.6 90.2
27.1 25.6
9.4 9.1
7.0 5.0
269.1 254.5
Expenses:
General government 28.3 25.9 - 28.3 25.9
Public safety 86.0 83.3 - - 86.0 83.3
Physical environment 1.6 2.3 - - 1.6 2.3
Transportation 34.9 28.9 - 34.9 28.9
Economic environment 0.4 0.4 - 0.4 0.4
Human services 9.3 8.0 - 9.3 8.0
Culture/recreation 15.4 16.0 - 15.4 16.0
Court related 7.0 7.3 - 7.0 7.3
Interest and fiscal charges 0.7 0.8 - 0.7 0.8
Water and sewer - 38.3 38.6 38.3 38.6
Solid waste - - 15.7 14.5 15.7 14.5
Golf course - - 2.8 2.7 2.8 2.7
Building - 3.9 3.5 3.9 3.5
Total expenses 183.6 172.9 60.7 59.3 244.3 232.2
Increase (decrease) in net position before transfers 20.4 20.3 4.4 2.0 24.8 22.3
Transfers (0.08) (0.08) 0.08 0.08 - -
Increase (decrease) in net position 20.4 20.3 4.4 2.0 24.8 22.3
Net position - October 1, 2017 691.7 671.4 308.8 306.8 1,000.5 978.2
Restatement to implement GASB 75 (20.2) - (1.9) - (22.1) -
Net position - September 30, 2018 $ 691.9 $ 691.7 $ 311.3 $ 308.8 $ 1,003.2 $ 1,000.5
10
1
120
100
80
60
40
20
0
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2018
Revenues By Source (In Millions)
Governmental Activities
Fiscal Years 2017 and 2018
SCS§C �c�\G ;"' • sod; b,5eZ'c'
os G
FY 2017
• FY 2018
Governmental Activities
• Overall program revenues decreased $1.0 million.
1) Operating grants and contributions decreased $3.3 million due to hurricane related grant
reimbursements and insurance recoveries reported in fiscal year 2017.
2) Charges for services increased $2.0 million due to increased impact fee collections as a result
of the improving economy and housing market.
• Overall general revenues increased by $11.8 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 $8.4 million or 9.3%). In addition, sales taxes grew $1.5 million and other
revenues (interest earnings) grew $1.6 million due to improving economic conditions.
11
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, 2018
Expenses By Function (In Millions)
Governmental Activities
Fiscal Years 2017 and 2018
1
■ FY 2017
■FY2018
'`°goy 4��a� � i�°�� 4\ .0cc' �` ��5�
Cy��S� �1 fly°�G �'~ {� •
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• The governmental activities expenses were $10.7 million higher in 2018 than in 2017. This
increase was mainly due to the allocation of the $8.0 million dollar self insurance internal service
fund loss to all of the funds. In addition, the increase of $5.9 million in transportation expenses
was mainly due to the expensing in the current year of projects previously reported as
construction in progress. Contributing to the $2.3 million increase in public safety expenses was
an increase in salaries and benefits.
• Governmental activities expenses were charged $8.2 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 $6.3 million,
physical environment $0.03 million, transportation $0.4 million, economic environment $0.007
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, 2018
Business -type Activities
Business -type activities net position increased by $4.4 million. Key elements of this increase are as
follows:
• Overall program revenues increased $3.4 million
1) Charges for services increased by $2.7 million or 5%. A gradual improvement in the local
economy has attributed to the following increases over 2017 revenues: water and sewer
revenues increased by $0.8 million or 2.5%, solid waste revenues increased $1.0 or 7%, and
the building revenues increased by $0.9 million or 25%.
2) Capital grants and contributions were $0.7 million higher in 2018 than in 2017. This was
mainly due to a grant reimbursement.
• Overall expenses were $1.4 million or 2% higher in 2018 than in 2017. The water and sewer
utilities expenses were $0.3 million or about 1% lower in 2018 than in 2017. The solid waste
expenses were $1.2 million or 8% higher in 2018 than in 2017 due to increased landfill closure
costs, increased recycling costs, and a loss on the sale of an asset. The golf course had $0.1
million or 4% higher expenses in 2018 than in 2017 due to increased maintenance, landscape, and
depreciation costs. The building department had $0.4 million or 11% higher expenses in 2018
than in 2017 due to increases in professional and other contractual services 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 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.
13
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2018
FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS
As noted earlier, the County uses fund accounting to ensure and demonstrate compliance with finance
related legal requirements.
Governmental funds
Unassigned fund balance may serve as a useful measure of the County's net resources available for
spending at the end of the fiscal year. Approximately 22% ($47.9 million) constitutes unassigned fund
balance, which is available for spending at the County's discretion.
The remainder of fund balance is presented in classifications that comprise a hierarchy based primarily
on the extent to which the County is bound to honor constraints on the specific purposes for which
amounts in those funds can be spent. The County had fund balances in 1) a nonspendable category for
inventories, prepaid items, and advances to other funds ($1.2 million), 2) a restricted category for
resources that are either restricted externally by creditors, grantors, contributors, or laws or regulations of
other governments or imposed by law through constitutional provisions or enabling legislation ($154.2
million), 3) a committed category for constraints imposed by approval of ordinances and contracts by the
Board of County Commissioners ($3.2 million), and 4) an assigned category for constraints by the
County's intent to use for specific purposes ($7.6 million).
The two largest restricted amounts are in the Impact Fees Fund with a $19 4 million restricted fund
balance and the Optional Sales Tax Fund with a $77.9 million restricted fund balance. Forty-seven
percent of the Impact Fees Fund ($9.2 million) and twenty-one percent ($16.0 million) of the Optional
Sales Tax Fund is slated for major road expansions throughout the County in fiscal year 2019. The
Optional Sales Tax Fund is a principal funding source in the five year Transportation Capital
Improvement Program.
The County's governmental funds reported a combined fund balance of $214.1 million, which is an
increase of $24.1 million over the prior year of $190.0 million. Contributing factors to the $24.1 million
increase in fund balance are:
• Fund balance in the General Fund increased by $4.2 million. This was due to increased tax
revenues and federal grant revenues.
• Fund balance in the Impact Fees Fund increased by $4.3 million due to an increase in building
permits for construction and decreased expenditures for completed projects.
• Fund balance in the Emergency Services District Fund increased by $2 6 million mainly due to an
increase in tax revenues because of increasing home values.
• Fund balance in the Optional Sales Tax Fund increased by $2 6 million due to increase in sales
tax revenues and state and federal grant revenues.
14
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2018
Proprietary funds
Unrestricted net position at the end of the year amounted to $18.2 million in the Solid Waste Disposal
District (SWDD) Fund, ($1.0) million in the Golf Course Fund, $6 7 million in the County Building
Fund, and $89.5 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.
GENERAL FUND BUDGETARY HIGHLIGHTS
During the year there was a $10.5 million increase in operating appropriations between the original and
final amended budget. The main components of the increase are as follows:
• $5.6 million grants appropriations and prior year rollovers for the Senior Resource Association
(SRA) to provide County -wide public transportation
• $1.5 million for capital improvements and purchases at recreational facilities
• $0.6 million for All Aboard Florida legal and professional services
• $0.5 million for building and equipment maintenance including purchase of portable generator
• $0.3 million in Hurricane Irma sheltering costs
Actual expenditures were $5.9 million lower than anticipated for the following reasons:
• $2.1 million in SRA grant costs not yet expended
• $1.1 million in unspent recreational capital expenditures
• $1.6 million in unspent professional and other contractual services
• $0.4 million in unspent salary and benefits expenditures
The General Fund Statement of Revenues, Expenditures, and Changes in Fund Balances — Budget and
Actual is shown on page 31.
15
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2018
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, 2018, amounts to $786.1 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 %.
Land
Right-of-way
Buildings and improvements
Equipment
Intangibles
Infrastructure
Construction in progress
Total
Indian River County Capital Assets
(Net of Depreciation, In Millions)
Governmental
Activities
Business -type
Activities
2018 2017 2018
$ 134.8 $ 134.5 $ 25.7
59.3 58.6 -
162.0 162.2 174.5
24.9 19.8 4.3
2.4 2.7 2.0
151.0 156.2 -
36.0 30.4 9.2
$ 570.4 $ 564.4 $ 215.7
Total
2017 2018 2017
$ 27.5 $ 160.5 $ 162.0
59.3 58.6
186.0 336.5 348.2
3.7 29.2 23.5
2.0 4.4 4.7
- 151.0 156.2
3.6 45.2 34.0
$ 222.8 $ 786.1 $ 787.2
Governmental activities had the following major increases during the fiscal year:
• An increase in equipment primarily due to the purchase of heavy roadway equipment and vehicles
($1 2 million) and fire rescue vehicles and equipment ($3.8 million).
• An increase in construction in progress due to the Osprey Acres Stormwater and Nature Preserve
project ($4.0 million), and the 800mhz P25 compliance project ($1.6 million).
Governmental activities only major decrease occurred in infrastructure as a result of increasing
depreciation on existing assets.
Business -type activities major increase was in construction in progress due to the landfill expansion
project ($1.3 million), North County Septic to Sewer conversion ($2.7 million), Collier Creek water
assessment ($1.1 million) and various other water and sewer projects.
Business -type activities only major decrease occurred in buildings and improvements as a result of
increasing depreciation on existing assets.
16
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2018
Additional information on the County's capital assets can be found in Note 5 on pages 67-69 of this
report.
1%
4%
Capital Assets, Net
Total Primary Government
September 30, 2018
• Land
• Right of Way
• Buildings and Improvements.
• Equipment
• Intangibles
• Infrastructure
• Construction In Progress
Debt Administration — Long-term debt
At the end of the current fiscal year, the County had total debt outstanding of $35.9 million. Of this
amount, $11.5 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
Activities
2018 2017
$ 11.5 $ 15.7
Business -type
Activities
Total
2018 2017 2018 2017
$ - $ - $ 11.5 $ 15.7
5.7 6.2 5.7 6.2
4.2 5.2 4.2 5.2
14.5 16.8 14.5 16.8
$ 17.2 $ 21.9 $ 18.7 $ 22.0 $ 35.9 $ 43.9
Additional information on the County's long-term debt can be found in Note 10 011 pages 74-81 of this
report.
17
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2018
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES
Service demands have increased as Indian River County recovers from the economic downturn and as the
population continues to grow. There is a delicate balance in meeting service needs and maintaining low
tax rates for the citizens in Indian River County.
The approved budget for FY 2018/2019 is $339,878,868, a decrease of $33,464,461 or 8.96% from the
prior year. For FY 2018/2019, the tax roll is increasing 6.93% and is consistent with more moderate
increases experienced during the last three years.
The largest individual expense in the budget is personnel services. In total, 34.03 net additional full-time
(FT) positions are proposed for FY 2018/2019. BCC departments are increasing 18 full-time positions,
resulting in an additional cost of $1,143,561. Constitutional officers show a net increase of 16.03
positions. School safety is a major issue in Florida, prompting state legislators to adopt a comprehensive
bill regarding school safety. The Sheriff's Office budget includes funding for seven additional positions,
which will provide a minimum of one School Resource Officer at every school.
Another major issue impacting budget development is the sale of Vero Beach Electric to Florida Power
and Light (FPL). Electricity budgets were reduced approximately 20% for County facilities currently
served by Vero Beach Electric due to FPL's lower rate structure. Electric franchise fee revenues are
expected to decrease. It must also be noted that in FY 2020, the value of transmission lines and related
infrastructure will be added to the tax roll. This will have a positive impact on the taxable value in all
taxing funds.
Overall, the countywide millage rate is decreasing by 0.34%. This is reflective of the General Fund
millage rate remaining constant at 3.4604 mills, offset by a 4.33% 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 also remaining flat at 2.3655.
Within the Solid Waste Disposal District Fund, proposed residential assessment rates are increasing by
$7.75 or 7.1% to $116.85 per Equivalent Residential Unit. Commercial rates are increasing by $2.83 or
7.5% to $40.50 per Waste Generation Unit (W.G.U.). The proposed readiness -to -use fee is $24.60 per
W.G.U., an increase of $3.01 from last fiscal year.
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
18
BASIC FINANCIAL STATEMENTS
19
20
Indian River County, Florida
Statement of Net Position
September 30, 2018
Governmental Business -type
Activities Activities
Total
ASSETS
Current assets:
Cash and investments $ 243,629,725 $ 73,201,160 $ 316,830,885
Accounts receivable - net 4,832,241 3,751,114 8,583,355
Internal balances 778,809 (778,809) -
Due from other governments 11,279,409 2,142,182 13,421,591
Interest receivable 949,432 827,373 1,776,805
Inventories 436,536 1,515,109 1,951,645
Prepaid expenses 1,582,174 11,173 1,593,347
Current restricted assets:
Cash and investments 6,018,650 54,554,166 60,572,816
Total current assets 269,506,976 135,223,468 404,730,444
Non-current assets:
Capital assets - non -depreciable 234,899,903 36,755,123 271,655,026
Capital assets - depreciable 686,868,022 475,874,150 1,162,742,172
Capital assets - accumulated depreciation (351,290,909) (296,900,730) (648,191,639)
Non-current restricted assets:
Special assessments receivable 175,151 620,377 795,528
Impact fees receivable 273,956 273,956
Liens receivable 7,738,123 7,738,123
Total non-current assets 570,652,167 224,360,999 795,013,166
Total assets 840,159,143 359,584,467 1,199,743,610
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions 51,812,650 3,425,620 55,238,270
Deferred outflows related to other postemployment benefits 2,427,603 226,096 2,653,699
Deferred amounts on refunding 269,710 862,724 1,132,434
Total deferred outflows of resources 54,509,963 4,514,440 59,024,403
LIABILITIES
Current liabilities (payable from current assets):
Accounts payable 12,934,205 3,877,645 16,811,850
Retainage payable 199,956 199,956
Claims payable 2,530,000 2,530,000
Due to other governments 855,182 90,736 945,918
Other deposits held in escrow 23,047 1,000 24,047
Unearned revenues 728,891 49,079 777,970
Accrued compensated absences 6,270,529 671,627 6,942,156
Pollution remediation costs payable 92,647 - 92,647
Current liabilities (payable from current restricted assets):
Accounts payable - 827,641 827,641
Retainage payable 540,650 183,653 724,303
Accrued interest payable - 62,107 62,107
Customer deposits 666,000 3,322,176 3,988,176
Notes payable 4,227,000 1,025,000 5,252,000
Closure and maintenance costs payable - 8,506,674 8,506,674
Bonds payable 585,000 2,205,000 2,790,000
Total current liabilities 29,453,151 21,022,294 50,475,445
Non-current liabilities:
Accrued compensated absences 5,781,214 338,121 6,119,335
Pollution remediation costs payable 2,029,253 - 2,029,253
Claims payable 5,909,000 - 5,909,000
Net pension liability 121,413,468 8,201,394 129,614,862
Net other postemployment benefits liability 3,159,291 294,240 3,453,531
Notes payable 7,268,000 3,174,000 10,442,000
Closure and maintenance costs payable - 5,608,504 5,608,504
Bonds payable, net of premium and discount 5,080,000 12,345,183 17,425,183
Total non-current liabilities 150,640,226 29,961,442 180,601,668
Total liabilities 180,093,377 50,983,736 231,077,113
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions
Deferred inflows related to other postemployment benefits
Total deferred inflows of resources
12,931,650
9,714,052
22,645,702
900,838 13,832,488
904,719 10,618,771
1,805,557 24,451,259
NET POSITION
Net investment in capital assets 553,586,726 197,842,084 751,428,810
Restricted for:
Transportation/road projects 24,140,955 24,140,955
Public safety 18,774,267 18,774,267
Court related costs 2,157,218 2,157,218
Housing assistance 927,281 927,281
Capital projects 79,398,595 79,398,595
Beach renourishment 17,105,108 17,105,108
Culture/recreation 9,349,813 9,349,813
Debt service 4,421,410 - 4,421,410
Environmental conservation/preservation 1,281,501 1,281,501
Special assessment projects 1,819,519 - 1,819,519
Unrestricted (deficit) (21,032,366) 113,467,530 92,435,164
Total net position $ 691,930,027 $ 311,309,614 $ 1,003,239,641
The accompanying notes are an integral part of the financial statements.
21
22
Functions/Programs
Primary Government:
Govemmental activities:
General government
Public safety
Physical environment
Transportation
Economic environment
Human services
Culture/recreation
Court related
Interest and fiscal charges
Total governmental activities
Business -type activities:
Water and sewer
Solid waste
Golf course
Building
Total business -type activities
Total primary government
Expenses
Indian River County, Florida
Statement of Activities
For the Year Ended September 30, 2018
Program Revenues
Charges for
Services
Operating
Grants and
Contributions
Net (Expense) Revenue and
Changes in Net Position
Capital
Grants and Governmental
Contributions Activities
Business -type
Activities
Total
$ 28,331,287 $ 7,029,378 $
85,963,087 8,389,034
1,610,264 9,192
34,860,409 5,098,549
422,142 -
9,346,942 458,452
15,399,398 3,136,349
7,038,280 3,225,394
668,269 -
183,640,078 27,346,348
38,257,678 32,834,696
15,756,764 14,769,028
2,785,664 3,216,513
3,908,938 4,673,531
15,019,956 $
2,192,282
7,644,082
3,705,026
37,687
166,809
28,765,842
549,264
884,166
8,592
23,869
124,053
3,600
3,571,911
1,017,859
$ (6,157,900) $
(75,378,171)
1,970,839
(21,099,919)
(422,142)
44,407 (5,139,057)
2,396,907 (9,828,455)
(3,646,077)
(668,269)
7,158,737 (120,369,151)
6,737,992
1,864,274
(103,570)
439,441
788,462
$ (6,157,900)
(75,378,171)
1,970,839
(21,099,919)
(422,142)
(5,139,057)
(9,828,455)
(3,646,077)
(668,269)
(120,369,151)
1,864,274
(103,570)
439,441
788,462
60,709,044 55,493,768
1,465,891
6,737,992
$ 244,349,122 $ 82,840,116 $ 30,231,733 $ 13,896,729
(120,369,151)
2,988,607
2,988,607
2,988,607 (117,380,544)
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 eamings
Miscellaneous
Transfers
Total general revenues and transfers
Change in net position
Net position - beginning, as restated (Note 17)
Net position - ending
The accompanying notes are an
94,003,409 94,003,409
4,636,034 4,636,034
27,083,593 - 27,083,593
9,447,649 - 9,447,649
2,768,691 1,302,025 4,070,716
2,906,764 29,650 2,936,414
(85,616) 85,616 -
140,760,524 1,417,291 142,177,815
20,391,373 4,405,898 24,797,271
671,538,654 306,903,716 978,442,370
$ 691,930,027 $ 311,309,614 $ 1,003,239,641
egral part of the financial statements.
23
Indian River County, Florida
Balance Sheet
Governmental Funds
September 30, 2018
General
Secondary
Impact Roads
Fees Construction
ASSETS
Cash and investments $ 53,582,719 $ 19,662,000 $ 11,037,688
Accounts receivable 852,551 - -
Special assessments receivable - -
Due from other funds 400,255 - -
Due from other governments 5,380,244 56,579 808,559
Interest receivable 97,863 36,758 20,996
Inventories 118,388 -
Prepaids and other assets 286,590 - 39,569
Advances to other funds 571,994
Total assets $ 61,290,604 $ 19,755,337 $ 11,906,812
LIABILITIES
Accounts payable $ 4,711,575 $ 139,643 $ 1,061,191
Retainage payable 116,957 75,529
Due to other funds 950,603 - -
Due to other governments 620,924 98,318
Unearned revenues 606,515 -
Other deposits 676,852 - -
Total liabilities 7,566,469 354,918 1,136,720
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
16,834
2,058,302
391,368
2,075,136 - 391,368
FUND BALANCES
Nonspendable:
Inventories 118,388 -
Prepaid items 286,590 - 39,569
Advances to other funds 571,994
Restricted for:
Transportation/road improvements 12,838,054 10,339,155
Court -related costs and improvements -
Housing assistance -
Law enforcement/public safety 917,416
Fire/emergency services 480,425
Tourism -related activities -
Beach renourishment
Boating related projects -
Library services 657,423
Land acquisition -
Stormwater, street lighting, and other special assessments
Voting/election activities -
Debt service -
Capital projects 1,037,918
Dodgertown repairs/improvements
Parks/recreational projects 1,139,811 3,469,183
Committed to:
Economic incentives 1,279,573
Environmental conservation/preservation
Law enforcement/public safety 12,898
Library services 160,088
Parks/recreational projects 175,069
Assigned to:
Law enforcement/public safety
Transportation/road improvements
Unassigned (deficit) 47,904,588
Total fund balances 51,648,999 19,400,419 10,378,724
Total liabilities, deferred inflows and fund balances $ 61,290,604 $ 19,755,337 $ 11,906,812
The accompanying notes are an integral part of the financial statements.
24
Transportation
Emergency Optional Other Total
Services Sales Governmental Governmental
District Tax Funds Funds
$ 8,047,961 $ 11,138,929 $ 78,990,202 $ 37,375,435 $ 219,834,934
17,529 2,302,749 60,985 120,919 3,354,733
175,151 - 175,151
352,697 - 59,869 812,821
703,504 479,244 3,030,709 745,214 11,204,053
175,829 22,828 147,250 53,189 554,713
- 39,683 - 22,881 180,952
939 28,733 67,329 423,160
- - - 571,994
$ 9,120,913 $ 14,364,863 $ 82,229,146 $ 38,444,836 $ 237,112,511
715,313 $ 1,167,507 $ 3,537,879 $ 757,426 $ 12,090,534
- 330,590 17,574 540,650
- - 60,000 1,010,603
108,512 27,428 855,182
- 146 122,230 728,891
- - 12,195 689,047
823,825 1,167,653 3,868,469 996,853 15,914,907
335,929 - 335,929
- 2,299,917 - 2,299,917
15,661 41 60,801 93,337
433,338 479,244 372,639 604,044 4,338,935
784,928 2,779,202 433,440 604,044 7,068,118
- 39,683 - 22,881 180,952
939 28,733 - 67,329 423,160
- 571,994
- - 3,342 23,180,551
- - 2,100,876 2,100,876
920,529 920,529
- - 3,814,467 4,731,883
- 10,349,592 - 10,830,017
994,518 994,518
16,635,438 16,635,438
- - 2,880,568 2,880,568
- - - 657,423
1,237,533 1,237,533
1,819,519 1,819,519
- - 335 335
- - 4,421,410 4,421,410
77,927,237 - 78,965,155
- - 208,310 208,310
- - 4,608,994
1,279,573
1,391,924 1,391,924
218,375 231,273
160,088
175,069
- - 108,985 108,985
7,511,221 7,511,221
- - (2,400) 47,902,188
7,512,160 10,418,008 77,927,237 36,843,939 214,129,486
$ 9,120,913 $ 14,364,863 $ 82,229,146 $ 38,444,836 $ 237,112,511
25
Indian River County, Florida
Reconciliation of Total Governmental Fund Balances
to Net Position of Governmental Activities
September 30, 2018
Total governmental fund balances: $ 214,129,486
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 569,878,348
in the funds.
Long-term liabilities, including bonds payable ($5,395,290), notes payable ($11,495,000), accrued
compensated absences ($11,893,769), and accrued pollution remediation costs ($2,121,900), are not
due and payable in the current period and, therefore, not reported in the funds.
On the governmental fund statements, a net pension or OPEB plan liability is not recorded until an amount
is due and payable and the 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 ($120,307,966)
of the cost-sharing defined benefit pension plans in which the County participates is reported. The County's
net OPEB liability ($3,120,266) of the single employer defined benefit plan is also reported on the statement
of net position. Additionally, deferred outflows ($51,346,748) and deferred inflows ($12,812,842) related
to pensions and deferred outflows ($2,397,616) and deferred inflows ($9,594,060) related to OPEB are
also reported.
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.
(30,905,959)
(92,090,770)
7,068,118
289,159
23,561,645
Net position of governmental activities $ 691,930,027
The accompanying notes are an integral part of the financial statements.
26
27
Indian River County, Florida
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended September 30, 2018
General
Secondary
Impact Roads
Fees Construction
REVENUES
Taxes $ 64,911,751 $ - $ 4,024,001
Permits, fees and special assessments 9,763,658 7,244,549
Intergovernmental 20,548,487 - 2,416,621
Charges for services 8,587,569 - -
Judgments, fines and forfeits 1,235,819 - -
Interest 710,088 176,419 108,879
Miscellaneous 4,701,257 2,653 23,431
Total revenues 110,458,629 7,423,621 6,572,932
EXPENDITURES
Current:
General government 22,672,669 629,102
Public safety 49,339,249 - -
Physical environment 391,427 - -
Transportation 4,702,480 2,322,212 6,074,974
Economic environment 423,432 - -
Human services 4,755,503 -
Culture/recreation 9,879,282 158,309
Court related 5,956,511 - -
Debt service:
Principal - -
Interest and other fiscal charges
Capital projects
Total expenditures 98,120,553 3,109,623 6,074,974
Excess of revenues over (under) expenditures 12,338,076 4,313,998 497,958
OTHER FINANCING SOURCES (USES)
Insurance recoveries 48,801
Transfers in 2,313,435
Transfers out (10,471,762)
Total other financing sources (uses) (8,109,526)
Net change in fund balances 4,228,550 4,313,998 497,958
Fund balances at beginning of year 47,420,449 15,086,421 9,880,766
Fund balances at end of year $ 51,648,999 $ 19,400,419 $ 10,378,724
The accompanying notes are an integral part of the financial statements.
28
Transportation
Emergency Optional Other Total
Services Sales Governmental Governmental
District Tax Funds Funds
- $ 30,416,229 $ 18,708,376 $ 7,662,679 $ 125,723,036
286,124 - - 530,716 17,825,047
3,245,894 103,665 2,647,659 7,573,067 36,535,393
111,993 6,639,383 - 1,794,250 17,133,195
- 7,300 - 453,966 1,697,085
86,789 162,899 734,584 293,717 2,273,375
575,414 23,026 97,431 468,084 5,891,296
4,306,214 37,352,502 22,188,050 18,776,479 207,078,427
320,016 - - 1,394,820 25,016,607
34,056,372 1,762,519 85,158,140
659,885 - 80,084 1,131,396
13,507,744 292,974 26,900,384
- 2,653 426,085
4,546,622 9,302,125
- - - 2,052,346 12,089,937
- - - 583,534 6,540,045
- - - 4,708,000 4,708,000
- 562,153 562,153
17,978,862 - 17,978,862
14,487,645 34,056,372 17,978,862 15,985,705 189,813,734
(10,181,431) 3,296,130 4,209,188 2,790,774 17,264,693
256,364- - 6,708,922 7,014,087
10,228,276 - - 606,044 13,147,755
(85,616) (671,122) (1,604,343) (441,895) (13,274,738)
10,399,024 (671,122) (1,604,343) 6,873,071 6,887,104
217,593 2,625,008 2,604,845 9,663,845 24,151,797
7,294,567 7,793,000 75,322,392 27,180,094 189,977,689
$ 7,512,160 $ 10,418,008 $ 77,927,237 $ 36,843,939 $ 214,129,486
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, 2018
Net change in fund balances - total governmental funds $ 24,151,797
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 26,509,214
Less current year loss on assets (26,459)
Less current year depreciation (20,384,148) 6,098,607
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 550,000
Note principal payment 4,158,000
Pollution remediation costs (2,200) 4,705,800
Changes in accrued compensated absences do not require the use of current financial
resources and, therefore, are not reported as expenditures in governmental funds. (605,148)
Governmental funds report interest expenditures based on when they are paid.
The statement of activities reports these expenses as they are incurred. This is the
net number of the prior year and current year accrual.
Deferred amount on refunding amortization expense (106,116)
Governmental funds report contributions in defined benefit pension plans as expenditures.
However, in the statement of activities, the amount contributed to defined benefit pension plans
reduces future net pension liabilities and is reported as part of deferred outflows of resources. 2,756,557
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 the statement of activities is the County's OPEB expense for
the single employer defmed benefit plan. (1,344,153)
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. (7,500,635)
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. (7,932,051)
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. 166,715
Change in net position of governmental activities $ 20,391,373
30
Indian River County, Florida
Statement of Revenues, Expenditures, and
Changes in Fund Balances - Budget and Actual
General Fund
For the Year Ended September 30, 2018
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)
Insurance recoveries
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
$ 63,897,259 $ 63,897,259
8,776,100 8,776,100
13,001,897 17,833,126
8,622,908 8,395,055
1,014,115 1,014,115
199,495 199,495
4,090,431 4,216,994
99,602,205 104,332,144
21,666,074
48,962,216
411,403
1,083,333
459,863
5,059,135
9,916,993
5,880,586
93,439,603
6,162,602
1,521,700
(10,464,042)
$ 64,911,751 $
9,763,658
20,548,487
8,587,569
1,235,819
710,088
4,701,257
1,014,492
987,558
2,715,361
192,514
221,704
510,593
484,263
110,458,629 6,126,485
23,530,149
49,773,642
453,158
6,769,663
463,885
5,079,353
12,159,989
5,790,328
104,020,167
311,977
2,336,376
(10,473,176)
22,672,669 857,480
49,339,249 434,393
391,427 61,731
4,702,480 2,067,183
423,432 40,453
4,755,503 323,850
9,879,282 2,280,707
5,956,511 (166,183)
98,120,553 5,899,614
12,338,076 12,026,099
48,801
2,313,435
(10,471,762)
48,801
(22,941)
1,414
(8,942,342)
(8,136,800)
(8,109,526)
27,274
(2,779,740)
(7,824,823)
4,228,550 $ 12,053,373
2,779,740
7,824,823
47,420,449
51,648,999
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, 2018
Variance
with Final
Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Permits, fees and special assessments $ 3,752,500 $ 3,752,500 $ 7,244,549 $ 3,492,049
Interest 33,250 33,250 176,419 143,169
Miscellaneous - - 2,653 2,653
Total revenues 3,785,750 3,785,750 7,423,621 3,637,871
EXPENDITURES
General government 359,996 862,254 629,102 233,152
Transportation 7,402,000 9,843,920 2,322,212 7,521,708
Culture/recreation 1,249,200 1,276,616 158,309 1,118,307
Total expenditures 9,011,196 11,982,790 3,109,623 8,873,167
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
(5,225,446) (8,197,040) 4,313,998 $ 12,511,038
5,225,446 8,197,040 15,086,421
$ - $ 19,400,419
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, 2018
REVENUES
Taxes
Intergovernmental
Interest
Miscellaneous
Total revenues
EXPENDITURES
Transportation
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Budgeted Amounts
Original Final
Actual
Amounts
$ 3,576,750 $ 3,576,750 $
7,128,311
23,750 23,750
3,600,500 10,728,811
Variance
with Final
Budget
Positive
(Negative)
4,024,001 $ 447,251
2,416,621 (4,711,690)
108,879 85,129
23,431 23,431
6,572,932 (4,155,879)
6,294,030 17,021,892 6,074,974 10,946,918
6,294,030 17,021,892 6,074,974 10,946,918
(2,693,530) (6,293,081) 497,958 $ 6,791,039
2,693,530 6,293,081 9,880,766
10,378,724
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, 2018
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)
Insurance recoveries
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Budgeted Amounts
Original Final
$ 213,750 $
2,753,749
89,775
30,400
353,101
3,440,775
331,294
733,278
13,512,249
14,576,821
Actual
Amounts
213,750 $
2,753,749
89,775
30,400
353,101
3,440,775
335,914
917,833
15,143,842
16,397,589
(11,136,046)
(12,956,814)
Variance
with Final
Budget
Positive
(Negative)
286,124 $
3,245,894
111,993
86,789
575,414
4,306,214
320,016
659,885
13,507,744
72,374
492,145
22,218
56,389
222,313
865,439
15,898
257,948
1,636,098
14,487,645 1,909,944
(10,181,431) 2,775,383
256,364 256,364
10,228,276 10,228,276 10,228,276
(85,616) (85,616) (85,616)
10,142,660 10,142,660 10,399,024 256,364
(993,386) (2,814,154) 217,593 $ 3,031,747
993,386 2,814,154 7,294,567
7,512,160
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, 2018
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
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
$ 30,033,653
45,125
5,659,451
11,400
28,500
38,029
35,816,158
Actual
Amounts
Variance
with Final
Budget
Positive
(Negative)
$ 30,033,653 $ 30,416,229 $ 382,576
69,784 103,665 33,881
5,659,451 6,639,383 979,932
11,400 7,300 (4,100)
28,500 162,899 134,399
38,029 23,026 (15,003)
35,840,817 37,352,502 1,511,685
35,758,558
38,249,700 34,056,372 4,193,328
35,758,558
57,600
(603,334)
(603,334)
(545,734)
38,249,700 34,056,372 4,193,328
(2,408,883)
3,296,130 5,705,013
(680,169) (671,122)
(680,169) (671,122)
9,047
9,047
(3,089,052) 2,625,008 $ 5,714,060
545,734
3,089,052 7,793,000
10,418,008
The accompanying notes are an integral part of the financial statements.
35
36
ASSETS
Current assets:
Cash and investments
Accounts receivable - net
Due from other funds
Due from other govenunents
Interest receivable
Inventories
Prepaids and other assets
Current restricted assets:
Cash and investments
Total current assets
Non-current assets:
Capital assets - non -depreciable
Capital assets - depreciable
Capital assets - accumulated depreciation
Non-current restricted assets:
Special assessments receivable
Impact fees receivable
Liens receivable
Total non-current assets
Total assets
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions
Deferred outflows related to other postemployment benefits
Deferred amounts on refundings
Total deferred outflows of resources
LIABILITIES
Current liabilities (payable from current assets):
Accounts payable
Retainage payable
Due to other funds
Claims payable
Due to other governments
Other deposits
Unearned revenues
Accrued compensated absences
Total current liabilities (payable from current assets)
Current liabilities (payable from restricted assets):
Accounts payable
Retainage payable
Accrued interest payable
Closure and maintenance costs payable
Notes payable
Bonds payable
Customer deposits
Total current liabilities (payable from restricted assets)
Total current liabilities
Non-current liabilities:
Accrued compensated absences
Advance from other funds
Claims payable
Closure and maintenance costs payable
Net pension liability
Net other postemployment benefits liability
Notes payable
Bonds payable - net of unamortized discount/premium
Total non-current liabilities
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions
Deferred inflows related to other postemployment benefits
Total deferred inflows of resources
NET POSITION
Net investment in capital assets
Unrestricted (deficit)
Total net position
Indian River County, Florida
Statement of Fund Net Position
Proprietary Funds
September 30, 2018
Business -type Activities - Enterprise funds
Solid Waste
Disposal
District
Golf
Course
County
Utilities
County
Building
Total
Governmental
Activities
Internal
Service Funds
$ 17,625,386 $ 301,547 $ 47,313,970
857,525 1,597 2,891,914
133,440
1,319,563
61,308
30,095
1,653
108,207
60
763,227
738,807
1,406,902
11,113
14,278,421 40,275,745
$ 7,960,257 $ 73,201,160
78 3,751,114
133,440
29,297 2,142,182
25,605 827,373
1,515,109
11,173
54,554,166
$ 29,813,441
1,477,508
404,597
75,356
105,560
255,584
1,159,014
34,275,643 443,159 93,401,678
8,015,237
136,135,717 33,291,060
12,895,248
31,954,052
(14,767,925)
6,606,283
4,879,812
(2,074,722)
17,253,592
438,440,608
(279,674,687)
620,377
273,956
7,738,123
599,678
(383,396)
36,755,123
475,874,150
(296,900,730)
620,377
273,956
7,738,123
3,017,627
(2,418,959)
30,081,375 9,411,373 184,651,969
216,282 224,360,999
598,668
64,357,018 9,854,532 278,053,647
8,231,519 360,496,716 33,889,728
205,052
13,534
168,480
3,981
2,502,036
168,510
862,724
550,052
40,071
3,425,620
226,096
862,724
465,902
29,987
218,586
172,461 3,533,270
590,123
4,514,440
495,889
1,255,451
89,511
1,514
34,488
1,380,964
77,052 2,398,450
110,445
340,255
10,354
1,000
49,079
20,432
498,172
49,527
521,749
3,080,171
146,692
29,341
94,958
270,991
3,877,645
199,956
340,255
90,736
1,000
49,079
671,627
843,671
2,530,000
86,222
5,230,298
3,459,893
827,641
183,653
62,107
8,506,674 -
1,025,000
2,205,000
163,243 3,158,933
827,641
183,653
62,107
8,506,674
1,025,000
2,205,000
3,322,176
8,669,917 7,462,334
16,132,251
10,050,881 498,172 10,542,505
270,991
21,362,549
3,459,893
25,145 54,297
571,994
5,608,504 -
478,042 410,404
17,613 5,180
223,560
6,071,140
219,299
3,174,000
12,345,183
35,119
1,241,808
52,148
338,121
571,994
5,608,504
8,201,394
294,240
3,174,000
12,345,183
71,752
5,909,000
1,105,502
39,025
6,129,304 1,041,875 22,033,182
1,329,075 30,533,436
7,125,279
16,180,185 1,540,047 32,575,687
1,600,066 51,895,985
10,585,172
44,870 45,294 674,931
54,156 15,928 674,292
99,026 61,222 1,349,223
135,743
160,343
296,086
900,838
904,719
1,805,557
118,808
119,992
238,800
30,081,375 9,411,373 158,133,054 216,282 197,842,084 598,668
18,215,018 (985,649) 89,528,953 6,709,208 113,467,530 22,962,977
$ 48,296,393 $ 8,425,724 $ 247,662,007 $ 6,925,490 $ 311,309,614 $ 23,561,645
The accompanying notes are an integral part of the fmancial statements.
37
Indian River County, Florida
Statement of Revenues, Expenses, and Changes in Fund Net Position
Proprietary Funds
For the Year Ended September 30, 2018
Business -type Activities -
Solid Waste
Disposal Golf
District Course
OPERATING REVENUES
Charges for services $ 14,774,028 $ 3,216,513
Charges for services pledged as security for revenue bonds -
Total operating revenues 14,774,028 3,216,513
OPERATING EXPENSES
Personal services 635,008 579,871
Material, supplies, services and other operating 13,153,521 1,952,642
Depreciation 1,106,933 233,762
Total operating expenses 14,895,462 2,766,275
Operating income (loss) (121,434) 450,238
NONOPERATING REVENUES (EXPENSES)
Intergovernmental 191,393 8,592
Interest income 302,534 7,985
Interest income pledged as security for revenue bonds - Insurance recoveries 687,773 -
Gain on disposal of assets - 1,350
Interest expense - (18,829)
Loss on disposal of assets (861,302) (560)
Total nonoperating revenues (expenses) 320,398 (1,462)
Income (loss) before transfers and capital grants and
contributions 198,964 448,776
Capital grants and contributions
Transfers
Change in net position 198,964
Total net position - beginning, as restated (Note 17) 48,097,429
Total net position - ending
448,776
7,976,948
$ 48,296,393 $ 8,425,724
The accompanying notes are an integral part of the financial statements.
38
Enterprise Funds
County County
Utilities Building
32,834,696
Total
Governmental
Activities -
Internal
Service Funds
$ 4,673,531 $ 22,664,072 $ 28,530,876
32,834,696 4,673,531
32,834,696
55,498,768 28,530,876
8,370,362 2,137,114 11,722,355 12,125,310
14,355,102 1,686,720 31,147,985 24,789,600
14,665,273 85,104 16,091,072 183,578
37,390,737
(4,556,041)
408,930
912,766
140,334
28,300
(857,620)
(9,321)
3,908,938 58,961,412 37,098,488
764,593 (3,462,644) (8,567,612)
23,869
78,740
632,784 691
389,259 327,510
912,766
828,107 698,679
29,650 780
(876,449) -
(871,183) (2,050)
623,389 102,609 1,044,934 1,025,610
(3,932,652) 867,202 (2,417,710) (7,542,002)
6,737,992 - 6,737,992 -
85,616 - 85,616 41,367
2,890,956 867,202 4,405,898 (7,500,635)
244,771,051 6,058,288 306,903,716 31,062,280
$ 247,662,007 $ 6,925,490 $ 311,309,614 $ 23,561,645
Indian River County, Florida
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2018
Business -type Activities -
Solid Waste
Disposal
District
Golf Course
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $ 15,295,966 $ 3,233,432
Cash paid to suppliers for goods and services (13,068,256) (2,001,157)
Cash paid to employees for services (652,889) (567,753)
Net cash provided by (used in) operating activities 1,574,821 664,522
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Transfers
Operating grants 3,923 6,209
Insurance recoveries 4,994 1,708
Net cash provided by (used in) noncapital financing activities 8,917 7,917
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Principal payments - bonds/notes
Interest paid on long-term debt
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
(1,278,180)
(18,829)
(338,927)
1,350
(149,398)
(1,278,180) (505,804)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest and dividends on investments 274,236 6,332
Net cash provided by investing activities 274,236 6,332
Net increase (decrease) in cash and investments
Cash and investments at beginning of year
Cash and investments at end of year
579,794 172,967
31,324,013 128,580
$ 31,903,807 $ 301,547
Classified as:
Current assets $ 17,625,386 $ 301,547
Restricted assets 14,278,421 -
Total $ 31,903,807 $ 301,547
The accompanying notes are an integral part of the financial statements.
40
Enterprise Funds
County County
Utilities Building
Total
Governmental
Activities -
Internal
Service Funds
$ 32,139,346 $ 4,673,453 $ 55,342,197 $ 27,207,465
(14,186,342) (1,597,324) (30,853,079) (24,212,062)
(8,644,770) (2,174,845) (12,040,257) (3,638,812)
9,308,234 901,284 12,448,861 (643,409)
85,616 85,616
75,967 86,099
6,702
161,583
41,367
698,679
178,417 740,046
(3,107,000) (3,107,000)
(866,899) (885,728)
- (338,927) -
28,300 29,650 780
(6,191,073) (15,811) (7,634,462) (137,631)
(1,550) (1,550) -
4,044,180 4,044,180
(6,094,042) (15,811) (7,893,837) (136,851)
785,536 66,122 1,132,226 272,469
785,536 66,122 1,132,226 272,469
4,161,311 951,595 5,865,667 232,255
83,428,404 7,008,662 121,889,659 29,581,186
$ 87,589,715 $ 7,960,257 $ 127,755,326 $ 29,813,441
$ 47,313,970 $ 7,960,257 $ 73,201,160 $ 29,813,441
40,275,745 - 54,554,166 -
$ 87,589,715 $ 7,960,257 $ 127,755,326 $ 29,813,441
Continued
41
Indian River County, Florida
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2018
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) $ (121,434) $
Adjustments to reconcile operating income to net cash
provided by (used in) operating activities:
450,238
Depreciation 1,106,933 233,762
(Increase) Decrease in assets:
Accounts receivable 539,774 8,486
Due from other funds (8,653) -
Due from other governments (1,298)
Inventories - 31,635
Impact fees receivable
Special assessments receivable
Liens receivable
Prepaid expenses - 1,190
Increase (Decrease) in liabilities:
Accounts payable (21,691) (86,098)
Due to other governments 1,514 4,758
Retainage payable -
Customer deposits (9,183)
Closure and maintenance costs payable 105,442
Net pension liability 29,136 25,251
Net OPEB liability (56,606) (16,649)
Unearned revenues 9,731
Claims payable
Accrued compensated absences 9,589 3,516
Total adjustments
Net cash provided by (used in) operating activities
NONCASH CAPITAL AND RELATED
FINANCING ACTIVITIES
1,696,255 214,284
$ 1,574,821 $ 664,522
Change in fair value of investments $ 10,956 $
Contributed property, infrastructure, and equipment $ - $
Capital assets purchased through accounts payable $ 317,552 $
The accompanying notes are an integral part of the financial statements.
42
295
Enterprise Funds
County County
Utilities Building
$ (4,556,041) $
Total
764,593 $
Governmental
Activities -
Internal
Service Funds
(3,462,644) $ (8,567,612)
14,665,273 85,104 16,091,072 183,578
36,402 (78) 584,584 (1,226,950)
- - (8,653) -
3,214 - 1,916 (96,461)
(343,609) - (311,974) (52,533)
281,399 - 281,399
389,960 - 389,960
(1,477,011) - (1,477,011)
59,715 45,299 106,204 8,415,793
372,312 36,916 301,439 543,807
4,405 7,181 17,858
75,937 - 75,937
70,686 61,503
- 105,442 -
392,845 107,802 555,034 73,324
(704,797) (167,598) (945,650) (125,421)
- 9,731 -
184,000
37,544 22,065 72,714 25,066
13,864,275 136,691 15,911,505 7,924,203
$ 9,308,234 $
901,284 $
12,448,861 $ (643,409)
$ 47,843 $ 4,576 $ 63,670 $
$ 2,693,813 $ - $ 2,693,813 $
$ 1,020,844 $ - $ 1,338,396 $
43
18,624
Indian River County, Florida
Statement of Fiduciary Net Position
Fiduciary Funds
September 30, 2018
Agency
Other
Postemployment
Benefits Trust
ASSETS
Cash $ 10,439,782 $ 49,235
Investments, at fair value
Index funds - 14,805,055
U.S. government securities funds - 11,734,781
Primary money market fund - 2,931,777
Total assets $ 10,439,782 $ 29,520,848
LIABILITIES
Due to other governments 5,809,711
Other deposits held in escrow 4,630,071
Total liabilities $ 10,439,782
NET POSITION
Net position restricted for OPEB 29,520,848
Total net position $ 29,520,848
The accompanying notes are an integral part of the financial statements.
44
Indian River County, Florida
Statement of Changes in Fiduciary Net Position
Other Postemployment Benefits Trust Fund
For the Year Ended September 30, 2018
ADDITIONS
Employer contributions $ 2,461,947
Net appreciation in fair value of investments 1,426,792
Less investment expense (1,252)
Net investment income 1,425,540
Total additions 3,887,487
DEDUCTIONS
Benefit payments
Total deductions
2,037,101
2,037,101
Change in net position 1,850,386
Net position - beginning
Net position - ending
27,670,462
$ 29,520,848
The accompanying notes are an integral part of the financial statements.
45
46
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2018
Note
1 Summary of Significant Accounting
Policies
Reporting Entity
Measurement Focus and Basis of
Accounting
Basis of Presentation
Assets, Liabilities, Deferred Outflows/
Inflows of Resources, and Net
Position or Fund Balances
Cash and Investments
Allowance for Doubtful Accounts
Receivables and Payables
Inventories
Prepaid and Other Assets
Restricted Net Position
Capital Assets
Capitalization of Interest
Deferred Outflows/Inflows of
Resources
Pensions/Net Pension Liability
Net OPEB Liability
Change in Accounting Principles/New
Accounting Pronouncement
Unearned Revenues
Accrued Compensated Absences
Obligation for Bond Arbitrage
Rebate
Landfill Closure Costs
Unamortized Bond Discounts
and Premiums
Capital Contributions
2 Stewardship, Compliance and
Accountability
Budgets and Budgetary Accounting
3 Cash and Investments
Deposits
Accrued Interest
Investments
OPEB Trust Investments
Page Note
4 Property Tax Revenues
48 5 Capital Assets
48 6 Restricted Cash and Investments
7 Interfund Balances
49 8 Interfund Transfers
52 9 Accounts Payable
10 Long-term Liabilities
Changes in Long-term Liabilities
54 Governmental Activities
54 Annual Debt Service Payments
55 Spring Training Facility Rev Bonds
55 Limited General Obligation Ref Note
55 Business -type Activities
55 Annual Debt Service Payments
55 Water and Sewer Revenue
56 Refunding Note, Series 2015
57 Water and Sewer Revenue
Refunding Bonds, Series 2009
57 Compensated Absences
58 11 Provision for Closure Costs
58 12 Pollution Remediation
13 Retirement Plan
58 14 Other Postemployment Benefits Plan
58 15 Operating Leases
59 16 Fund Balance
17 Net Position
59 18 Risk Management
59 19 Commitments and Contingencies
Litigation
59 Contracts and Other Commitments
59 Grants
20 Subsequent Events
60
60
61
61
61
62
65
47
Page
66
67
70
71
72
73
74
74
75
75
75
78
79
79
80
80
81
82
83
84
95
102
104
106
107
108
108
109
109
109
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2018
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 151,825. 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. As required by generally accepted accounting principles, the
financial reporting entity consists of: (1) the primary government (the County), (2) organizations for
which the County is financially accountable, and (3) other organizations for which the nature and
significance of their relationship with the County are such that exclusion would cause the reporting
entity's financial statements to be misleading or incomplete. The County is financially accountable if it
appoints a voting majority of the organization's governing body and (a) it is able to impose its will on
that organization or (b) there is a potential for the organization to provide specific financial benefits to,
or impose specific financial burdens on, the County.
The County may be financially accountable if an organization is fiscally dependent on the County
regardless of whether the organization has (a) a separately elected governing board, (b) a governing
board appointed by a higher level of government, or (c) a jointly appointed board. Based on these
criteria, management determined that the Solid Waste Disposal District and the Emergency Services
District were the only organizations that should be included in the County's financial statements as
blended component units.
48
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2018
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
A. Reporting Entity — Continued
Blended Component Units
Solid Waste Disposal District (SWDD) — Created pursuant to County Ordinance 87-67, the Board of
County Commissioners serves as the governing body for and has operational responsibility over the
SWDD. The Board also sets the non ad valorem assessment fees for the SWDD. Although legally
separate, the SWDD is appropriately blended as a proprietary fund type (enterprise) component unit
into the primary government.
Emergency Services District (EMS) — Created pursuant to County Ordinance 90-25, the Board of
County Commissioners serves as the governing body for and has operational responsibility over the
EMS. The Board also sets the millage rate for the EMS. Although legally separate, the EMS is
appropriately blended as a governmental fund type (special revenue) component unit into the primary
government.
B. Measurement Focus and Basis of Accounting
The basic financial statements of the County are composed of the following:
• Government -wide financial statements
• Fund financial statements
• Notes to the financial statements
1. Government -wide Financial Statements
Government -wide financial statements display information about the reporting government as a whole,
except for its fiduciary activities. These statements include separate columns for the governmental and
business -type activities of the primary government (including its blended component units).
Governmental activities, which normally are supported by taxes and intergovernmental revenues, are
reported separately from business -type activities, which rely, to a significant extent, on fees and charges
for support.
Government -wide financial statements are reported using the economic resources measurement focus
and the accrual basis of accounting, as are the proprietary fund financial statements. Under the accrual
basis of accounting, revenues, expenses, gains, losses, assets, deferred outflows/inflows of resources,
and liabilities resulting from exchange and exchange -like transactions are recognized when the
exchange takes place. Revenues, expenses, gains, losses, assets, and liabilities resulting from
nonexchange transactions are recognized in accordance with the requirements of GASB Statement 33 —
Accounting and Financial Reporting for Nonexchange Transactions.
Program revenues include charges for services, special assessments, and payments made by parties
outside of the reporting government's citizenry if that money is restricted to a particular program.
Program revenues are netted with program expenses in the statement of activities to present the net
expense of each program.
49
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2018
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, 2018
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, 2018
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 fiduciary fund statements are presented using the accrual basis of accounting.
C. Basis of Presentation
GASB Statement 34, Basic Financial Statements - and Management's Discussion and Analysis - For
State and Local Governments 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, 2018
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, 2018
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 Fund (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 FLCLASS and Florida Trust values are presented at Net
Asset Value (NAV), which reflects fair value. The Florida PRIME is valued at amortized cost. 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, 2018
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, 2018, the allowance for water and sewer services was
$424,493 and the allowance for ambulance services was $514,472. No other allowances for doubtful
accounts are maintained since other accounts receivable are considered collectible as reported at
September 30, 2018.
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.
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, 2018
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
56
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2018
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 $1,132,434 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 $7,068,118.
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. Also, there are deferred outflows and inflows items related to OPEB
as calculated in accordance with GASB Statement 75, Accounting and Financial Reporting for
Postemployment Benefits Other Than Pensions.
Detail on the composition of the deferred inflows and outflows related to pensions and OPEB are
further discussed in Notes 13 and 14.
57
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2018
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. Other Postemployment Benefits Trust Fund (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows
of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the
County's Retiree Benefits Plan and additions to/deductions from the County's fiduciary net position
have been determined on the same basis as they are reported by the County. For this purpose, the
County recognizes benefit payments when due and payable in accordance with the benefit terms.
Investments are reported at fair value, except for money market investments that have a maturity at the
time of the purchase of one year or less, which are reported at cost.
12. Change in Accounting Principles/New Accounting Pronouncement
The Board implemented Governmental Accounting Standards Board (GASB) Statement No. 75,
Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. This
statement's objective was to improve accounting and financial reporting by state and local governments
for postemployment benefits (OPEB) other than pensions. It also improves information provided by
state and local governmental employers about financial support for OPEB that is provided by other
entities.
13. Unearned Revenues
Unearned revenues represent revenues, which are available but unearned. At September 30, 2018, the
total amount of unearned revenues reported on the statement of net position for the governmental
activities is $728,891 and for the business -type activities is $49,079.
58
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2018
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position or Fund
Balances - Continued
14. 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.
15. 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, 2018.
16. 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.
17. 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.
18. 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, 2018
NOTE 2 - STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
Budgets and Budgetary Accounting
The County uses the following procedures in establishing the budgetary data reflected in the financial
statements:
(1) The constitutional officers submit, at various times, to the Board and to certain divisions within
the Florida Department of Revenue and the Florida Clerks of Court Operations Corporation, a proposed
operating budget for the following fiscal year. The operating budget includes proposed expenditures
and the means of financing them, as set forth in Chapter 129 of the Florida Statutes.
(2) The Department of Revenue, State of Florida, has the final authority on the operating budgets for
the Tax Collector and the Property Appraiser included in the General Fund.
(3) Constitutional officers, all departments controlled by the Board, and outside state and local
agencies submit their proposed budgets to the Office of Management and Budget for assistance, review
and compilation. The County Administrator then reviews all County departments, state agencies and
nonprofit organization's budgets and makes his budget recommendation to the Board.
(4) On or before July 15 of each year, the County Administrator and the Director of the Office of
Management and Budget, as the Board's designated budget officer, submit to the Board a tentative
budget for the ensuing fiscal year. The tentative budget includes proposed expenditures and the means
of financing them. The Board then holds workshops to review the tentative budget by fund on a
departmental level.
(5) During September, public hearings are held pursuant to Section 200.065 of the Florida Statutes in
order for the Board to receive public input on the tentative budget. At the end of the last public hearing,
the Board enacts ordinances to legally adopt the budgets at the fund level. The budgets legally adopted
by the Board set forth the anticipated revenues by source and the appropriations by function.
(6) Formal budgetary integration on an object level is used as a management control device for the
governmental and proprietary funds of the County. Management is authorized to transfer budgeted
amounts between objects and departments in any fund as long as management does not exceed the total
appropriations of a fund. Board approval to amend the budget is only required when unanticipated
revenues are received that management wishes to have appropriated, thereby increasing the total
appropriations of a fund.
(7) Budgets for the governmental and proprietary fund types are adopted on a basis consistent with
generally accepted accounting principles.
(8) Appropriations for the County lapse at the close of the fiscal year. Unexpected ongoing project
costs may be appropriated in the new fiscal year through a budget amendment.
60
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2018
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 $ 316,830,885
Restricted cash and investments 60,572,816
Cash - Statement of Fiduciary Net Position -Agency Fund 10,439,782
Total: $ 387,843,483
Deposits $ 101,188,242
Investments 286,655,241
Total: $ 387,843,483
A. Deposits
At September 30, 2018, the carrying amount of the primary government's deposits, including
$10,439,782 in the Agency Fund, was $101,188,242, and the bank balance was $106,117,225. 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, 2018, accrued interest for the County's portfolio totaled $855,789. 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, 2018
NOTE 3 - CASH AND INVESTMENTS - Continued
C. Investments
As of September 30, 2018, the County had the following investments:
Investment Type
Fixed Rate Debt Instruments:
Weighted
Average
Maturity Portfolio Credit
Fair Value In Years Percentage Risks*
U.S. Treasuries $ 87,979,650 0.99 30.69 % N/A
U.S. Agencies:**
Federal Farm Credit Bureau 52,160,396 1.45 18.20 AA+
Federal Home Loan Bank 56,369,577 1.04 19.66 AA+
Federal Home Loan Mortgage 38,603,160 1.08 13.47 AA+
Federal National Mortgage Assoc. 30,526,573 1.22 10.65 AA+
Other Market Rate Investments:
Florida Trust Day to Day Fund 531,066 0.08 0.19 AAAm
Florida Prime 1,151,486 0.08 0.40 AAAm
FLCLASS 15,176,069 0.08 5.29 AAAm
W&S Sinking Fund Reserve:
U.S. Treasuries 4,157,264 0.97 1.45 N/A
Total Fair Value $ 286,655,241 100.00 %
Weighted Average Maturity of Investments 1.06
* Ratings based upon Standard and Poor's
** 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. The County's fair value measurements for
U.S. Treasuries and U.S. Agencies are categorized as Level 2 and are valued by the County's
investment brokers using independent pricing services based on the type of asset. The pricing services
may use valuation models or matrix pricing, which consider benchmark yields, reported trades,
broker/dealer quotes, benchmark securities, bids or offers, and reference data.
62
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2018
NOTE 3 - CASH AND INVESTMENTS - Continued
C. Investments - Continued
Florida PRIME is valued at amortized cost. There are no restrictions or limitations on withdrawals,
however, Florida PRIME may, on the occurrence of an event that has material impact on liquidity or
operations, impose restrictions on withdrawals for up to 48 hours. The County's investments in the
Florida Cooperative Liquid Assets Securities Systems (FLCLASS) and the Florida Trust, both external
local government investment pools organized under the laws of the State of Florida, are presented at
Net Asset Value (NAV), which reflects fair value. The objectives of the FLCLASS and Florida Trust
are to generate investment income while maintaining safety and liquidity.
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, 2018
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.
64
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2018
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, 2018, 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. The Board and Tax Collector's investments in the FLCLASS were held
by Wells Fargo Bank, N.A.. Additional Tax Collector investments include the Florida Trust Day to Day
Fund, which was held by UMB Fund Services 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 party custodian, Bank of New York/Mellon. The contribution for the year ended September
30, 2018 was $2,461,947. Cash balance in the OPEB Trust at September 30, 2018 was $49,235. 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, 2018, the annual money -weighted rate of return on
investments, net of investment expense, was 4.95%. 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, 2018
NOTE 3 - CASH AND INVESTMENTS - Continued
D. OPEB Trust Investments - Continued
As of September 30, 2018, the OPEB Trust had the following investments:
Investment Type
Fair Value
Vanguard 500 Index
Vanguard All World Ex -US
Vanguard Mid Cap Index
Vanguard Small Cap Index
Vanguard Short -Term Treasury
Vanguard Intermediate Treasury
Vanguard Prime Money Market
$ 6,633,064
5,989,895
1,457,015
725,081
8,805,132
2,929,649
2,931,777
Total Fair Value $ 29,471,613
Weighted
Average
Maturity
in Years
N/A
N/A
N/A
N/A
2.20
6.00
0.13
Portfolio
Percentage
22.51 %
20.32
4.94
2.46
29.88
9.94
9.95
100.00 %
The County has the following recurring fair value measurements for investments in the OPEB Trust as
of September 30, 2018:
Index funds
U.S. government securities funds
Money market fund
Total investments
Level 1
Level 2 Level 3 Total
$ 14,805,055 $
11,734,781
2,931,777
- $ 14,805,055
11,734,781
- 2,931,777
$ 29,471,613 $ - $ $ 29,471,613
Investments classified as Level 1 of the fair value hierarchy are valued using quoted prices in active
markets from the County's custodian bank.
NOTE 4 - PROPERTY TAX REVENUES
Taxable values for all property are established as of January 1, which is the date of lien, for the fiscal
year starting October 1. Property tax revenues recognized for the 2017-2018 fiscal year were levied in
October 2017. All taxes are due and payable on November 1 or as soon as the assessment roll is
certified and delivered to the Tax Collector. Discounts are allowed for early payment at the rate of 4%
in November, 3% in December, 2% in January, and 1% in February. Taxes paid in March are without
discount. All unpaid taxes become delinquent as of April 1. Virtually all unpaid taxes are collected via
the sale of tax certificates on or prior to June 1; therefore, there were no material taxes receivable at
fiscal year end.
66
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2018
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
Beginning
Balance
$ 134,491,628
30,458,691
58,607,302
1,180,279
3,575,067
Additions
$ 473,223
19,396,040
729,138
3,757
228,312,967 20,602,158
239,909,125
70,864,259
5,124,119
355,110,769
6,935,923
11,180,049
188,248
2,659,599
Deletions
$ (183,196)
(13,832,026)
Ending
Balance
$ 134,781,655
36,022,705
59,336,440
1,184,036
3,575,067
(14,015,222) 234,899,903
(4,714,843)
(389,226)
246,845,048
77,329,465
4,923,141
357,770,368
671,008,272 20,963,819 (5,104,069) 686,868,022
(77,732,961) (7,173,503)
(51,063,367) (5,144,533)
(3,571,806) (489,072)
(202,527,027) (7,760,618)
3,782,752
389,226
(84,906,464)
(52,425,148)
(3,671,652)
(210,287,645)
(334,895,161) (20,567,726) 4,171,978 (351,290,909)
336,113,111
396,093
(932,091) 335,577,113
Governmental activities capital assets, net $ 564,426,078 $ 20,998,251 $ (14,947,313) $ 570,477,016
67
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2018
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 $ 3,428,644
Public safety 5,012,536
Physical environment 648,325
Transportation 7,632,445
Human service 135,474
Culture/recreation 3,244,585
Court related 282,139
Capital assets held by the government's internal service funds are
charged to the various functions based on their usage of the assets 183,578
Total depreciation expense — governmental activities $ 20,567,726
68
NOTE 5 - CAPITAL ASSETS —
B. Business -type Activities
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2018
Continued
Primary Government
Business -type activities:
Capital assets, not being depreciated:
Land, improvements to land
Intangibles
Construction in progress
Total capital assets, not being depreciated
Capital assets, being depreciated:
Buildings, distribution systems, & improvements
Intangibles
Equipment
Total capital assets, being depreciated
Less accumulated depreciation for:
Buildings, distribution systems, & improvements
Intangibles
Equipment
Total accumulated depreciation
Total capital assets, being depreciated, net
Business -type activities capital assets, net
Beginning
Balance
Additions
$ 27,492,902 $
1,776,972
3,572,670
32,842,544
453,058,748
1,218,061
17,712,913
471,989,722
(267,019,095)
(1,011,397)
(14,033,215)
(282,063,707)
189,926,015
$ 222,768,559
22,434
6,830,602
6,853,036
3,188,965
123,610
1,867,451
Ending
Deletions Balance
$ (1,761,710) $ 25,731,192
- 1,799,406
(1,178,747) 9,224,525
(2,940,457) 36,755,123
(1,080)
(1,294,518)
456,246,633
1,341,671
18,285,846
5,180,026 (1,295,598) 475,874,150
(14,705,031)
(134,873)
(1,251,168)
(16,091,072)
(10,911,046)
2,200 (281,721,926)
(1,146,270)
1,251,849 (14,032,534)
1,254,049 (296,900,730)
(41,549) 178,973,420
$ (4,058,010) $ (2,982,006) $ 215,728,543
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
$ 1,106,933
233,762
14,665,273
85,104
Total depreciation expense — business -type activities $ 16,091,072
69
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2018
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:
Sinking funds/current portion of debt
Renewal and replacement
Retainage payable
Customer deposits
Capital construction
Closure and maintenance costs
Total
Primary Government
Governmental
Activities
$ 4,812,000
540,650
666,000
Business -type
Activities
Total
$ 4,488,537 $
3,485,928
3,322,176
29,142,347
14,115,178
$ 6,018,650 $ 54,554,166
70
9,300,537
3,485,928
540,650
3,988,176
29,142,347
14,115,178
$ 60,572,816
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2018
NOTE 7 - INTERFUND BALANCES
Interfund balances at September 30, 2018, consisted of the following:
Receivable Fund
Major governmental funds:
General Fund
General Fund
Emergency Services District Fund
Payable Fund Amount
Nonmajor governmental funds $
Golf Course Enterprise Fund
60,000
340,255
400,255
General Fund 352,697
Nonmajor governmental funds:
Land Acquisition Bonds Fund General Fund 53,872
Street Lighting Districts Fund General Fund 3,224
Vero Lake Estates Fund General Fund 2,762
East Gifford Stormwater Fund General Fund 11
Total governmental funds
Major enterprise fund:
Solid Waste Disposal District Fund
Internal service fund:
Self Insurance Fund
59,869
$ 812,821
General Fund $ 133,440
General Fund $ 404,597
Amounts due from the General Fund represent excess fees and payments of the constitutional officers
remitted to various funds subsequent to September 30, 2018. 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 2019. The amounts due from the nonmajor governmental funds represent short-term cash
loans that will be repaid within the next twelve months. The remaining amount due from the Golf
Course Fund is reported as an interfund advance.
71
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2018
NOTE 7 - INTERFUND BALANCES - Continued
Interfund advances at September 30, 2018, consisted of the following:
Receivable Fund Payable Fund Amount
General Fund
Golf Course Fund $ 571,994
This amount is considered a long-term advance between major funds expected to be paid in fiscal years
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, 2018, consisted of the following:
Transfers In:
Nonmajor County Internal
General Transportation Governmental Utilities Service
Transfers Out: Fund Fund Funds Fund Funds Total
General Fund $ $ 10,228,276 $ 202,119 $ $ 41,367 $ 10,471,762
Transportation Fund 85,616 85,616
Emergency Services
District Fund 671,122 - - - 671,122
Optional Sales Tax Fund 1,479,343 - 125,000 - 1,604,343
Nonmajor Governmental
Funds 162,970 278,925 - 441,895
Total $ 2,313,435 $ 10,228,276 $ 606,044 $ 85,616 $ 41,367 $ 13,274,738
72
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2018
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 unrestricted stormwater revenues to offset Egret
Marsh employee costs accounted for in the utilities fund, 5) to use capital project fund revenues for
improvements to the Historic Dodgertown facility, 6) provide matching funds for grants, and 7) 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, 2018, were as follows:
Governmental Activities:
General
Impact Fees
Secondary Roads Construction
Transportation
Emergency Services
Optional Sales Tax
Other Governmental
Total Governmental Activities
Vendors
$ 3,496,054
134,556
1,046, 845
407,553
212,122
3,537,879
1,345,318
Salaries and
Benefits
1,215,506
5,087
14,346
307,760
955,385
255,794
Total
Payables
$ 4,711,560
139,643
1,061,191
715,313
1,167,507
3,537,879
1,601,112
$ 10,180,327 $ 2,753,878 $ 12,934,205
Business -type Activities:
Payable from current assets:
Solid Waste $ 1,231,980 $
Golf Course 57,799
Utilities 2,095,701
Building 58,420
Payable from restricted assets:
Utilities 827,641 - 827,641
Total Business -type Activities $ 4,271,541 $ 433,745 $ 4,705,286
23,471 $ 1,255,451
19,253 77,052
302,749 2,398,450
88,272 146,692
Included in salaries and benefits payable is a liability to the Florida Retirement System (FRS) for
pension contributions due for the month of September 2018. The amounts due to FRS at September 30,
2018 are $239,316 for governmental activities and $32,154 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 2018 other than that listed in Note 8.
73
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2018
NOTE 10 - LONG-TERM LIABILITIES
A. Changes in Long -Term Liabilities
Long-term liability activity for the year ended September 30, 2018, 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
Compensated absences
Total other liabilities
Due
Beginning Ending Within
Balance Additions Retirements Balance One Year
$ 6,215,000 $ - $ 550,000 $ 5,665,000 $ 585,000
15,653,000 4,158,000 11,495,000 4,227,000
2,119,700 2,200 2,121,900 92,647
8,255,000 21,400,694 21,216,694 8,439,000 2,530,000
11,421,529 7,326,053 6,695,839 12,051,743 6,270,529
21,796,229 28,728,947 27,912,533 22,612,643 8,893,176
Governmental activities long-term liabilities $ 43,664,229 $ 28,728,947 $ 32,620,533 $ 39,772,643 $ 13,705,176
Business -type Activities:
Bonds payable:
Water & Sewer Refunding Revenue Bonds -
Series 2009 $ 15,620,000 $ - $ 2,100,000 $ 13,520,000 $ 2,205,000
Add: Unamortized bonds premium 1,205,534 - 175,351 1,030,183 -
Total bonds payable 16,825,534 2,275,351 14,550,183 2,205,000
Notes payable:
Water & Sewer Revenue Refunding 5,206,000 1,007,000 4,199,000 1,025,000
Other liabilities:
Landfill closure and maintenance costs 14,009,736 1,270,000 1,164,558 14,115,178 8,506,674
Compensated absences 937,034 730,590 657,875 1,009,749 671,627
Total notes payable and other liabilities 20,152,770 2,000,590 2,829,433 19,323,927 10,203,301
Business -type activities long-term liabilities $ 36,978,304 $ 2,000,590 $ 5,104,784 $ 33,874,110 $ 12,408,301
74
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2018
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, 2018, are as follows:
Fiscal Year
Ending
September 30
2019
2020
2021
2022
2023
2024-2028
2029-2031
Total
Less:
Current portion
Total
Spring Training Facility
Revenue Bonds
Series 2001
Principal
$ 585,000
615,000
650,000
305,000
320,000
1,870,000
1,320,000
5,665,000
585,000
$ 5,080,000
Spring Training Facility Revenue Bonds
Interest
$ 287,875
257,163
224,875
190,750
175,500
619,250
132,250
Limited General
Obligation Refunding Note
Series 2015
Principal Interest
$ 4,227,000
4,298,000
2,970,000
$ 190,817
120,649
49,302
1,887,663 11,495,000 360,768
4,227,000 -
$ 1,887,663 $ 7,268,000 $ 360,768
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, 2018
NOTE 10 - LONG-TERM LIABILITIES - Continued
B. Primary Government - Continued
Spring Training Facility Revenue Bonds - Continued
Pledge of Revenues - The principal and interest on the Series 2001 bonds will be payable from and
secured by a first lien upon and pledge of the following, together with any investment income realized
on any funds held under the Resolution, except the Cost of Issuance Account and the Rebate Fund:
1. Payments received by the County from the State of Florida pursuant to Section 212.20, Florida
Statutes; and
2. The Fourth Cent Tourist Development Tax levied by the County in Ordinance No. 2000-029, enacted
pursuant to Section 125.0104(3)(1), Florida Statutes; and
3. Eighty-six percent (86%) of the Local Government Half -Cent Sales Tax distributed to the County,
pursuant to Chapter 218, Part VI, Florida Statutes.
The foregoing are collectively referred to herein as the "pledged revenues". These revenue streams are
pledged for the remaining term of the bonds and are listed on Schedule 25 in the statistical section.
The Fourth Cent Tourist Development Tax and the Local Government Half -Cent Sales Tax pledged to
the payment of debt service on the Series 2001 bonds are automatically released as a pledged revenue
for the Series 2001 bonds immediately following the April 1, 2021 principal payment on the Series
2001 bonds.
The current principal and interest payments of $852,312 represent 8.72% of total pledged revenues. All
three revenue sources totaled $9,777,026 for the current fiscal year. The County applied 100% of the
state subsidy, 46% 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 $7,552,663.
Bonds Issued - At September 30, 2018, Spring Training Facility Revenue Bonds consisted of the
following:
Description
Spring Training Facility Revenue
Bonds, Series 2001
Interest Outstanding at
Rates and September 30,
Date Maturity Issue 2018
3.30%-5.25%
4/1 and 10/1 2031 $ 16,810,000 $ 5,665,000
76
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2018
NOTE 10 - LONG-TERM LIABILITIES - Continued
B. Primary Government - 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
April 1, 2019
April 1, 2020
April 1, 2021
Principal Amount
585,000
615,000
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
April 1, 2028
April 1, 2029
April 1, 2030
April 1, 2031
77
Principal Amount
410,000
430,000
455,000
435,000
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2018
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 V2 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 $4,636,034 of which 100% is pledged for payment of this note and the 2006 bond. Total
principal and interest paid on this note was $4,417,840 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.
78
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2018
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, 2018 are as follows:
Fiscal Year
Ending
September 30
2019
2020
2021
2022
2023
2024
Total
Less:
Current portion
Add:
Unamortized
bond premium
Total
Water and Sewer
Revenue Refunding
Note Series 2015
Principal
$ 1,025,000
1,042,000
1,058,000
1,074,000
Interest
Water and Sewer
Revenue Refunding
Bonds Series 2009
Principal
$ 69,284 $
52,371
35,178
17,721
2,205,000
2,315,000
2,430,000
2,550,000
2,680,000
1,340,000
4,199,000 174,554 13,520,000
1,025,000 - 2,205,000
1,030,183
Interest
$ 676,000
565,750
450,000
328,500
201,000
67,000
2,288,250
$ 3,174,000 $ 174,554 $ 12,345,183 $ 2,288,250
79
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2018
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 $1,092,899 represent approximately eight percent of net
revenues of $14,510,727 of the utility system. The total principal and interest remaining to be paid on
the 2015 note is $4,373,554. 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.
80
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2018
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 percent
of net revenues of $14,510,727 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 $15,808,250.
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, 2018, the revenue bonds consisted of the following:
Description
Interest Outstanding at
Rates and September 30,
Date Maturity Issue 2018
Water and Sewer Revenue 4-5%
Refunding Bonds, Series 2009 3/1 and 9/1 2024 $ 26,370,000 $ 13,520,000
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
75 percent, and the Transportation and Emergency Services District funds normally liquidate 6 percent
and 16 percent, respectively. The remaining 3 percent is liquidated by other governmental and internal
service funds.
81
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2018
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 $5.7 million. These costs will
be recognized in future periods as the remaining capacity is filled. The County's policy is to fund 100%
of the current year's allocation (based upon the consulting engineers' report) of both closure and post -
closure care.
Required closure and post -closure sub -accounts:
Capacity Estimated
Used Closing
Amount
Closure Costs
Class I - Segments I and II 59% 2021 $ 12,437,389
Construction and Demolition - Cell I 91% 2027 884,866
Post -closure Costs
Class I - Segments I and II N/A N/A 763,435
Construction and Demolition - Cell I N/A N/A 29,488
Total account balance at 9/30/18 $ 14,115,178
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, 2018, $14,091,026 was on deposit at the Florida Cooperative Liquid
Assets Securities System (FLCLASS) and $24,152 was on deposit in the County's Operating account.
82
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2018
NOTE 11 - PROVISION FOR CLOSURE COSTS - Continued
A summary of changes in the landfill closure liability account is as follows:
Balance Balance
10/1/2017 Deposits Withdrawals 09/30/18
Closure and long-term care costs $ 14,009,736 $ 1,270,000 $ (1,164,558) $ 14,115,178
Of the $14,115,178 liability for closure and long-term care costs, management estimates that
$8,506,674 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 $2,121,900 at September 30, 2018 for the two sites. Of the
$2,121,900 liability for pollution remediation, management estimates that $92,647 will be due and
payable within one year. 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 $2,110,000 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 $11,900 and will be paid from
the General Fund.
Total Governmental Activities liability: $2,121,900
83
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2018
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.
84
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2018
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, 2018 were:
Regular class 8.26%, Special Risk 24.50%, Special Risk Administrative Support 34.98%, Senior
Management 24.06%, DROP 14.03%, and Elected Official class 48.70%. Included in these rates is a
health insurance subsidy of 1.66%. Employer contributions to the FRS are based on a percentage of
covered payroll that has been actuarially determined as an amount, when combined with the 3%
employee contributions, is expected to finance the cost of benefits earned by employees during the year
with an additional amount to finance any unfunded accrued liability.
85
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2018
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,
2018, was $10,011,292. Employee contributions for September 30, 2018 were $1,931,003. 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, 2018, the Division of Retirement calculated the
County's liability of $104,240,729 for the FRS plan for its proportionate share of the net pension
liability. The net pension liability was measured as of June 30, 2018, and the total pension liability
used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2018.
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, 2018, the County's proportion share was .3461% for
the FRS Pension Plan. This was a decrease of 0.0023% from its proportionate share measured as of
June 30, 2017.
We anticipate that the pension liability will be liquidated in the following manner. General Fund 56
percent, Emergency Services District Fund 27 percent, Transportation Fund 7 percent, Enterprise Funds
8 percent, and the remaining 2 percent is by the Other Governmental Funds and Internal Service Funds.
For the year ended September 30, 2018, the County's calculated total increase of actuarially determined
pension expense was $10,642,190. In addition, the County reported deferred outflows of resources and
deferred inflows of resources related to pensions from the following sources:
Deferred Outflows Deferred Inflows
Description of Resources of Resources
Differences between expected and
actual experience $ 8,830,752 $ 320,515
Changes in assumptions 34,060,802
Net difference between projected and actual
earnings on pension plan investments - 8,053,862
Changes in proportion and differences between
County contributions and proportionate share of
contributions 4,690,356 2,337,698
County contributions subsequent to the measure-
ment date 2,622,527
Total $ 50,204,437 $ 10,712,075
86
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2018
NOTE 13 - RETIREMENT PLAN - Continued
Pension Plan - Continued
The deferred outflows of resources related to the pension plan totaling $2,622,527 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, 2019. Other amounts reported as deferred outflows of
resources and deferred inflows of resources related to pensions will be recognized in pension expense
as follows:
Amount
Fiscal Year Ending September 30: Recognized
2019 $ 14,284,926
2020 9,748,868
2021 1,359,278
2022 6,491,469
2023 4,340,579
Thereafter 644,715
Total $ 36,869,835
Actuarial Assumptions: The total pension liability in the July 1, 2018 actuarial valuation was
determined using the following actuarial assumptions, applied to all periods included in the
measurement:
Valuation date: July 1, 2018
Measurement date: June 30, 2018
Discount rate: 7.00%
Long-term expected rate of return: 7.00%, net of pension plan investment expense,
including inflation
Inflation: 2.60%
Salary increase: 3.25%, including inflation
Mortality: Generational RP -2000 with Projections Scale BB
Actuarial cost method: Individual Entry Age
The actuarial assumptions that determined the total pension liability used in the July 1, 2018 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 2018:
• The long-term expected rate of return was decreased from 7.10% to 7.00%, and the active
member mortality assumption was updated for the Pension Plan.
87
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2018
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:
Asset Class
Cash
Fixed Income
Global Equity
Real Estate (Property)
Private Equity
Strategic Investments
Total
Assumed inflation -mean
Annual
Target Arithmetic
Allocation Return
1% 2.9%
18% 4.4%
54% 7.6%
11% 6.6%
10% 10.7%
6% 6.0%
100%
88
Compound
Annual
(Geometric)
Return
2.9%
4.3%
6.3%
6.0%
7.8%
5.7%
2.6%
Standard
Deviation
1.8%
4.0%
17.0%
11.3%
26.5%
8.6%
1.9%
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2018
NOTE 13 - RETIREMENT PLAN - Continued
Pension Plan - Continued
Discount Rate for Pension Plan: The discount rate used to measure the total pension liability was
7.00%. 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 7.00%. Also presented is what
the County's proportionate share of the FRS plan NPL would be if it were calculated using a discount
rate that is 1% lower or 1% higher than the current rate:
1% Decrease
(6.00%)
County's proportionate share of NPL $190,243,707
Current Discount
Rate (7.00%)
$104,240,729
1% Increase
(8.00%)
$32,810,176
Pension Plan Fiduciary Net Position: Detailed information regarding the Pension Plan's fiduciary net
position is available in the separately issued FRS Pension Plan and Other State -Administered Systems
Comprehensive Annual Financial Report. This report is available by writing to the State of Florida,
Division of Retirement, Department of Management Services, P.O. Box 9000, Tallahassee, Florida
32315-9000 or by email at rep@dms.myflorida.com, or by telephone toll free at (844) 377-1888 or
(850) 907-6500. This report identifies statements that were prepared in accordance with generally
accepted accounting principles, the measurement focus and basis of accounting, various investment
valuations, various pension plan benefits, assumptions used, and many other details.
89
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2018
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, 2018, 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, 2018, 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 $1,299,514 for the fiscal year ended September 30, 2018.
Pension Liabilities, Pension Expense, and Deferred Outflow of Resources and Deferred Inflow of
Resources Related to HIS Program: At September 30, 2018, the Division of Retirement calculated the
County's liability of $25,374,133 for its proportionate share of the HIS Program's net pension liability.
The net pension liability was measured as of June 30, 2018, and the total pension liability used to
calculate the net pension liability was determined by an actuarial valuation as of July 1, 2018. At June
30, 2018, the County's proportional share was 0.2397% for the HIS Program. This was an increase of
0.0023% from its proportionate share measured as of June 30, 2017.
90
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2018
NOTE 13 - RETIREMENT PLAN - Continued
Retiree Health Insurance Subsidy (HIS) Program - Continued
For the year ended September 30, 2018, the County recognized pension expense of $1,088,725. In
addition, the County reported deferred outflows of resources and deferred inflows of resources related
to pensions from the following sources:
Deferred Outflows Deferred Inflows
Description of Resources of Resources
Differences between expected and actual experience $ 388,467 $ 43,110
Changes in assumptions 2,821,912 2,682,761
Net difference between projected and actual
earnings on pension plan investments 15,316 -
Changes in proportion and differences between
County contributions and proportionate share of
contributions 1,486,303 394,542
County contributions subsequent to the measure-
ment date 321,835 -
Total $ 5,033,833 $ 3,120,413
The deferred outflows of resources related to HIS Program totaling $321,835 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, 2019. 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
2019 $ 1,111,593
2020 1,107,481
2021 775,866
2022 174,263
2023 (1,081,698)
Thereafter (495,920)
Total $ 1,591,585
91
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2018
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, 2018 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, 2018
June 30, 2018
3.87%
N/A
3.87%
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,
2018 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 2018:
• The municipal rate used to determine the total pension liability was increased from 3.58% to 3.87%.
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, 2018
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 3.87%. Also presented is what
the County's proportionate share of the HIS Program NPL would be if it were calculated using a
discount rate that is 1% lower or 1% higher than the current rate:
1% Decrease Current Discount 1% Increase
(2.87%) Rate (3.87%) (4.87%)
County's proportionate share of NPL $28,899,652 $25,374,133 $22,435,410
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, 2018
NOTE 13 - RETIREMENT PLAN - Continued
FRS Investment Plan - Continued
For all membership classes, employees are immediately vested in their own contributions and are
vested after one year of service for employer contributions and investment earnings. Nonvested
employer contributions are placed in a suspense account for up to five years. If the employee returns to
FRS -covered employment within the five year period, the employee will regain control over his/her
account. If the employee does not return within the five-year period, the employee will forfeit the
accumulated account balance. For fiscal year ended September 30, 2018, 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 2017-2018 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 includes the
employee contribution of 3%.
The County's Investment Plan contributions and pension expense totaled $1,859,751 for fiscal year
ended September 30, 2018. Employee contributions totaled $378,868 for the same period.
94
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2018
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, 2017, range from $364 for single coverage Medicare
participants to $875 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, 2018
NOTE 14 — OTHER POSTEMPLOYMENT BENEFITS PLAN (OPEB) - Continued
A. Plan Description - Continued
The County subsidizes the cost of the health premiums for each retiree based upon their years of service
and employment date (as mentioned above); a 2% discount is given for each year of service based upon
the following table:
Hired Before 2/1/2006
Hired On
or After
2/1/2006
Retirement
Date
Service
Under Age 65
Retiree or Spouse
Medicare Eligible
Before 10/1/2004
No Subsidy
60%*
No Subsidy
**
After 10/1/2004 but on
or before
1/31/2009***
Less than 15
gears
No Subsidy
20% Subsidy**
At least 15
years
2% per Year of Service
(maximum of 40%)
Additional 20% Subsidy
(maximum of 60%)**
After 1/31/2009***
Less than 15
years
No Subsidy
No Subsidy
At least 15
years
2% per Year of Service
(maximum of 40%)
Subsidy Ceases****
*60% Subsidy if Medicare Eligible prior to October 1, 2004 or 20% if becoming Medicare Eligible after October
1, 2004
**Additional Subsidy will be paid to Medicare Eligible retirees regardless of which plan they are enrolled in
(County's medical plan or Medicare Advantage Plan) and regardless of whether they become Medicare Eligible
before or after October 1, 2004.
***Employees who commit by June 1, 2008 to retire before January 31, 2009 will receive subsidy as if retired
before June 1, 2008.
****Effective May 1, 2016 and prospectively, subsidy does not cease until both Retiree and Spouse are Medicare
eligible.
96
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2018
NOTE 14 — 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, 2017, the date of the latest actuarial valuation, plan participation consisted of:
Active participants 1,380
Retired participants 558
Total participants 1,938
There are two classes of participants at October 1, 2017:
Regular and senior management 1,248
Special risk 690
Total participants 1,938
The average employer's contribution was $1,784 per employee, approximately 3.6% 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. Contributions and 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, 2018, the County contributed $2.5 million to the qualifying
OPEB Trust. Plan members receiving benefits contributed $2.0 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 27 percent, Enterprise Funds 8 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. 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, 2018
NOTE 14 — OTHER POSTEMPLOYMENT BENEFITS PLAN (OPEB) - Continued
C. Net OPEB Liability
The County's net OPEB liability was measured as of October 1, 2017 and the total OPEB liability used
to calculate the net OPEB liability was determined by an actuarial valuation as of that date. The
components of the net OPEB liability of the County at September 30, 2018, were as follows:
Total OPEB Liability
Plan fiduciary net position
County's net OPEB liability
$ 32,974,379
(29,520,848)
$ 3,453,531
Plan fiduciary net position as a percentage of the total
OPEB liability 89.53%
D. Actuarial Methods and Assumptions
The total OPEB liability was determined by an actuarial valuation as of October 1, 2017, 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 3.7% to 7.8%, 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
Healthcare Cost Trend Rates
Mortality tables used in the July 1, 2016 actuarial
valuation of the Florida Retirement System. They are
based on the results of a statewide experience study
covering the period 2008 through 2013.
Based on the Getzen Model, with trend starting at 7.0%
and gradually decreasing to an ultimate trend rate of
4.39% (including the impact of the excise tax).
98
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2018
NOTE 14 — OTHER POSTEMPLOYMENT BENEFITS PLAN (OPEB) - Continued
D. Actuarial Methods and Assumptions - Continued
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
E. Discount Rate
Calculation of the Single Discount Rate
There were no benefit changes during the year.
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 3.83%; and the resulting SDR is 6.00%. The County has 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.
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 6.00%.
99
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2018
NOTE 14 — OTHER POSTEMPLOYMENT BENEFITS PLAN (OPEB) - Continued
F. 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 one percent higher:
1% Decrease
5.00%
Sensitivity of Net OPEB Liability
to the Single Discount Rate Assumption
Current Single Discount
Rate Assumption
6.00%
1% Increase
7.00%
$ 6,473,988
$ 3,453,531 $ 768,754
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
1% Decrease
(6% down to 3.39%)
Current Healthcare Cost
Trend Rate Assumption
(7% down to 4.39%)
1% Increase
(8% down to 5.39%)
$ 662,882
$ 3,453,531 $ 6,660,276
100
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2018
NOTE 14 — OTHER POSTEMPLOYMENT BENEFITS PLAN (OPEB) - Continued
G. Changes in the Net OPEB Liability
Balances at 9/30/2017
Changes for the year:
Service cost
Interest
Differences between expected and actual experience
Changes of assumptions and other inputs
Contributions - employer
Net investment income
Benefit payments
Net changes
Balances at 9/30/2018
Increase(Decrease)
Total OPEB
Liability
(a)
$ 41,252,267
498,665
2,443,943
2,762,722
(11,946,117)
(2,037,101)
(8,277,888)
$ 32,974,379
Plan
Fiduciary
Net Position
(b)
Net OPEB
Liability
(a) -(b)
$ 27,670,462 $ 13,581,805
498,665
2,443,943
2,762,722
(11,946,117)
2,461,947 (2,461,947)
1,425,540 (1,425,540)
(2,037,101)
1,850,386 (10,128,274)
$ 29,520,848 $ 3,453,531
H. OPEB Expense and Deferred Outflows and Inflows of Resources Related to OPEB
For the year ended September 30, 2018, the County recognized OPEB expense of $298,745. At
September 30, 2018, the County reported deferred outflows of resources and deferred inflows of
resources related to OPEB from the following sources:
Description
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Differences between expected and actual experience $ 2,455,753 $
Changes of assumptions
Net difference between projected and actual earnings on
OPEB plan investments 197,946
10,618,771
$ 2,653,699 $ 10,618,771
101
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2018
NOTE 14 — OTHER POSTEMPLOYMENT BENEFITS PLAN (OPEB) - Continued
J. OPEB Expense and Deferred Outflows and Inflows of Resources Related to OPEB-Continued
Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB
will be recognized in OPEB expense as follows:
Year Ending Net Deferred Outflows
September 30 of Resources
2019 $ (970,890)
2020 (970,890)
2021 (970,890)
2022 (970,892)
2023 (1,020,377)
Thereafter (3,061,133)
Total $ (7,965,072)
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 $766,252 and lease expenditures totaled $192,013 for
the year ended September 30, 2018. 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
2019 $ 699,312
2020 721,788
2021 678,876
2022 695,360
2023 711,993
2024-2028 2,381,619
2029-2033 1,238,195
2034-2038 586,647
2039-2043 490,192
2044-2047 225,167
Total future minimum receipts: $ 8,429,149
102
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2018
NOTE 15 - OPERATING LEASES - Continued
The property being leased is included in the statement of net position governmental activities and
business -type activities columns and has a cost of $33,928,527 and a carrying value of $23,503,799.
Current year depreciation on property being leased was $599,980.
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, 2018:
Year Amount
2019 $ 244,887
2020 122,278
2021 123,350
2022 66,563
2023 1,500
2024-2028 7,500
2029-2033 7,500
2034-2038 6,900
2039-2043 4,500
2044-2048 4,200
2049-2053 2,100
2054-2058 1,500
2059-2063 1,500
2064-2068 1,500
2069-2073 1,500
2074-2077 900
Total future minimum lease payments: $ 598,178
103
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2018
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.
104
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2018
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, 2018, reserve amounts for those funds were:
Budget
Disaster Relief Stabilization Total
General Fund $ 6,350,000 $ 6,350,000 $ 12,700,000
Transportation Fund 900,000 900,000 1,800,000
Emergency Services District Fund 2,000,000 2,000,000 4,000,000
Total $ 9,250,000 $ 9,250,000 $ 18,500,000
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 Federal/State Grants Fund, a nonmajor Governmental Fund, had a deficit in fund balance of $2,400
at September 30, 2018. This deficit will be eliminated by grant proceeds in fiscal year 2019.
105
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2018
NOTE 17 — NET POSITION
A. Net Position Restricted by Enabling Legislation
The government -wide statement of net position for the primary government reports $159,375,667 of
restricted net position, of which $121,303,536 is restricted by enabling legislation.
B. Restatement of Beginning Net Position
The County's beginning net position at October 1, 2017 was decreased due to the adoption of the new
GASB Statement No. 75 (See County Note 1.D.12 for further explanation). This statement requires the
County to recognize its net OPEB liability and operating statement activies related to changes in the
OPEB liability. The beginning net position has been adjusted as follows:
Governmental Activities
Original Restated
10/1/2017 GASB 75 10/1/2017
Net Position Adjustment Net Position
$ 691,715,781 $ (20,177,127) $ 671,538,654
Business -Type Activities
Solid Waste Disposal District 48,212,270 (114,841) 48,097,429
Golf Course 8,010,724 (33,776) 7,976,948
County Utilities 246,200,929 (1,429,878) 244,771,051
County Building 6,398,306 (340,018) 6,058,288
Total
308,822,229 (1,918,513) 306,903,716
$ 1,000,538,010 $ (22,095,640) $ 978,442,370
106
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2018
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:
Worker's Compensation
General Liability
Auto Liability
Property Damage
Error or Omissions
Annual Aggregate
Liquor Liability
10/01/14 to
9/30/2015
$ 750,000
200,000
200,000
200,000
200,000
2,000,000
1,000,000
10/01/15 to 10/01/16 to 10/01/17 to
9/30/2016 9/30/2017 9/30/2018
$ 650,000
200,000
200,000
200,000
200,000
2,000,000
N/A
$ 650,000
200,000
200,000
200,000
200,000
2,000,000
N/A
$ 650,000
200,000
200,000
200,000
200,000
2,000,000
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 $1,685 in
fiscal year 2018, three workers compensation reimbursements totaling $37,643 in fiscal year 2017, and
two workers compensation reimbursements totaling $49,222 in fiscal year 2016.
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 2018, the County was approved by the insurance carriers to receive approximately
$1.03 million in insurance recoveries related to Hurricane Irma 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 $300,000 per occurrence. The County has purchased a reinsurance policy to cover
claims in excess of these limits There were eleven medical claim reimbursements totaling $471,549 in
excess of the $300,000 limit for fiscal year 2018. In fiscal year 2017 there were three medical claim
reimbursements totaling $61,593 and in fiscal year 2016 there were none.
The claims liability of $8,439,000 reported at September 30, 2018, 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.
107
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2018
NOTE 18 - RISK MANAGEMENT - Continued
General Liability, Property, Worker's Compensation and Medical - Continued
Estimates for claims incurred but not reported are actuarially determined and recorded. Based on the
actuary's report, $2,530,000 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:
Balance at Claims Balance
Fiscal Year and Changes Claims at Fiscal
Beginning in Estimates Payments Year End
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
2017-2018 8,255,000 21,400,694 (21,216,694) 8,439,000
Included in the charges to other funds is an amount to fund future catastrophic losses not actuarially
determined and at September 30, 2018, unrestricted net position of $22,844,067 has been designated for
this purpose. The County has elected to accrue the larger of the discounted liability or undiscounted
liability. At September 30, 2018, 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
The County is involved in litigation regarding a zoning dispute and other matters, and may be required
to pay damages at a future date. While the ultimate amount of damages is currently unknown,
management has estimated that the amount is likely to equal or exceed $537,000. Accordingly,
management has recorded an estimated liability in that amount in the financial statements.
Various other suits and claims are currently pending against the County. It is impossible for the County
to accurately quantify the exposure involved given the jury's latitude in assessing compensatory and
punitive damages, and the court's latitude in awarding attorney's fees. The County intends to
vigorously defend against these lawsuits and believes it has a good chance of prevailing on their
merits.The County is contingently liable with respect to lawsuits and other claims incidental to the
ordinary course of its operations. In the opinion of management and based on the advice of legal
counsel, the ultimate disposition of lawsuits will not have a material adverse effect on the financial
position of the County.
B. Contracts and Other Commitments
The County has various contracts and commitments outstanding at September 30, 2018. In the General
Fund, contracts are for janitorial services, beach park landscape and custodial maintenance, legislative
consulting services and external auditing services.
108
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2018
NOTE 19 - COMMITMENTS AND CONTINGENCIES - Continued
B. Contracts and Other Commitments - Continued
In the Special Revenue Funds, contracts are for 58th Avenue pavement reclamation and resurfacing,
CR512 resurfacing and shoulder widening from Myrtle Street to 125th Avenue, Courthouse
renovations, 45th Street beautification - Phase II, beach profile surveys and monitoring, several
conservation area improvements as well as a variety of other road paving and drainage projects. In the
Capital Projects Fund, contracts are for roof replacements at the jail, health department and Sebastian
Corners, the Osprey Acres floway and nature preserve, P25 radio system migration project, 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 GIS oblique
aerial imagery acquisition.
A summary of these projects at September 30, 2018, is as follows:
General
Special Revenue
Capital Projects
Enterprise
Internal Service
Total
C. Grants
Total Total Paid as of
Contract Price September 30, 2018
$ 1,228,107 $
11,716,034
19,358,468
30,883,618
345,933
Remaining
Balance at
September 30, 2018
(551,378) $
(5,249,011)
(11,532,277)
(10,661,789)
(230,622)
$ 63,532,160 $
676,729
6,467,023
7,826,191
20,221,829
115,311
(28,225,077) $ 35,307,083
Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor
agencies. If any expenditures are disallowed as a result of these audits, the claims for reimbursement to
the grantor agency would become a liability of the County. In the opinion of management, any such
adjustments would not be significant.
NOTE 20 - SUBSEQUENT EVENTS
On December 18, 2018 the County approved a new lease agreement with Major League Baseball
(MLB) for the Historic Dodgertown facility. This 11 year agreement included repairs and
improvements to be completed by both the County and MLB. In addition, the County will fund
$800,000 per year into the Capital Reserve Account for the first 5 years of the agreement, and then
$400,000 per year for the remaining term. On January 22, 2019, the Board approved a partial payoff of
the Series 2001 Spring Training Bonds in the amount of $1,125,000 with Fourth Cent Tourist Tax
reserves. This partial payoff eliminated the need to utilitze the Fourth Cent Tourist Development Tax
for debt service payments. Future debt service payments will be funded from the State of Florida
spring training facility payments. In February 2019, the City of Vero Beach agreed to sell the former
Dodgertown Golf Course property to the County for $2,450,000. The property will be used for future
anticipated expansions and parking needs.
109
Fiscal Year
Ending
September 30,
2018
2017
2016
2015
2014
Fiscal Year
Ending
September 30,
2018
2017
2016
2015
2014
Indian River County, Florida
Required Supplementary Information
For the Year Ended September 30, 2018
Schedule of the County's Proportionate Share of the Net Pension Liability
Florida Retirement System (FRS) Defined Benefit Pension Plan
Plan Sponsor
Measurement
Date
June 30,
2018
2017
2016
2015
2014
County's
Proportion
of the FRS
Net Pension
Liability
0.3461%
0.3484%
0.3356%
0.3067%
0.3018%
County's
Proportionate
Share of the
FRS Net Pension
Liability
$ 104,240,729
$ 103,046,280
$ 84,737,012
$ 39,616,455
$ 18,416,343
County's
Covered
Payroll
$ 65,771,799
$ 64,801,659
$ 60,358,527
$ 57,879,163
$ 55,095,601
County's
Proportionate
Share of the
FRS Net Pension
Liability as a
Percentage of
Covered Payroll
158.49%
159.02%
140.39%
68.45%
33.43%
FRS Plan
Fiduciary Net
Position as a
Percentage of
Total Pension
Liability
Schedule of the County's Proportionate Share of the Net Pension Liability
Retiree Health Insurance Subsidy (HIS) Program Defined Benefit Pension Plan
Plan Sponsor
Measurement
Date
June 30,
2018
2017
2016
2015
2014
County's
Proportion
of the HIS
Net Pension
Liability
0.2397%
0.2374%
0.2281%
0.2232%
0.2186%
County's
Proportionate
Share of the
HIS Net Pension
Liability
$ 25,374,133
$ 25,383,666
$ 26,578,559
$ 22,760,252
$ 20,441,863
County's
Covered
Payroll
$ 78,355,087
$ 75,720,001
$ 70,444,190
$ 67,812,302
$ 64,984,255
County's
Proportionate
Share of the
HIS Net Pension
Liability as a
Percentage of
Covered Payroll
32.39%
33.52%
37.73%
33.56%
31.46%
84.26%
83.89%
84.88%
92.00%
96.09%
HIS Plan
Fiduciary Net
Position as a
Percentage of
Total Pension
Liability
2.15%
1.64%
0.97%
0.50%
0.99%
The County implemented GASB Statement No. 68 for the fiscal year ended September 30, 2015, including a restatement as
of September 30, 2014. Information for prior years is not available. This schedule is being built prospectively. Ultimately,
10 years of data will be presented.
Information on the above defined benefit pension plan's annual money -weighted rate of return on pension plan investments
can be obtained in a separately issued report. Information may also be requested by calling (844)377-1888 or online at
frs.myflorida.com, click on publications, then annual reports.
110
Indian River County, Florida
Required Supplementary Information
For the Year Ended September 30, 2018
Schedule of the County's Contributions
Florida Retirement System (FRS) Defined Benefit Pension Plan
FRS FRS Contributions FRS
Fiscal Year Contractually in Relation to the Contribution County's
Ending Required Contractually Deficiency Covered
September 30, Contribution Required Contribution (Excess Payroll
2018 $ 10,011,292 $ 10,011,292 $ - $ 65,642,971
2017 $ 9,099,495 $ 9,099,495 $ - $ 64,835,532
2016 $ 8,660,907 $ 8,660,907 $ - $ 61,851,481
2015 $ 7,503,166 $ 7,503,166 $ - $ 57,717,461
2014 $ 6,760,058 $ 6,760,058 $ - $ 56,156,975
Fiscal Year
Ending
September 30,
FRS Contributions
as a Percentage of
Covered Payroll
Schedule of the County's Contributions
Retiree Health Insurance Subsidy (HIS) Program Defined Benefit Pension Plan
2018
2017
2016
2015
2014
HIS
Contractually
Required
Contribution
$ 1,299,514
$ 1,262,482
$ 1,198,477
$ 918,200
$ 782,940
HIS Contributions
in Relation to the
Contractually
Required Contribution
1,299,514
1,262,482
1,198,477
918,200
782,940
HIS
Contribution
Deficiency
(Excess)
County's
Covered
Payroll
$ 78,304,866
$ 76,071,289
$ 72,247,706
$ 67,455,498
$ 66,229,010
15.26%
14.03%
14.01%
13.00%
11.94%
HIS Contributions
as a Percentage of
Covered Payroll
1.66%
1.66%
1.66%
1.36%
1.18%
The County implemented GASB Statement No. 68 for the fiscal year ended September 30, 2015, including a restatement as
of September 30, 2014. Information for prior years is not available. This schedule is being built prospectively. Ultimately,
10 years of data will be presented.
111
Indian River County, Florida
Required Supplementary Information
Fiscal Year Ended September 30, 2018
Schedules of Changes in Net OPEB Liability and Related Ratios
Fiscal year ending September 30, 2018 2017
Total OPEB liability
Service cost
Interest on the total OPEB liability
Difference between expected and
actual experience
Changes of assumptions
Benefit payments
Net change in total OPEB liability
Total OPEB liability - beginning
Total OPEB liability - ending (a)
Plan fiduciary net position
Employer contributions
OPEB plan net investment income
Benefit payments
Net change in plan fiduciary net position
Plan fiduciary net position - beginning
Plan fiduciary net position - ending (b)
Net OPEB liability - ending (a) - (b)
Plan fiduciary net position as a percentage
of total OPEB liability
Covered payroll*
Net OPEB liability as a percentage
of covered payroll
$ 498,665 $
2,443,943
2,762,722
(11,946,117)
(2,037,101)
673,067
2,405,638
(2,494,672)
(8,277,888) 584,033
41,252,267 40,668,234
$ 32,974,379 $ 41,252,267
$ 2,461,947 $
1,425,540
(2,037,101)
2,274,341
2,387,483
(2,494,672)
1,850,386
27,670,462
2,167,152
25,503,310
$ 29,520,848 $ 27,670,462
3,453,531 $ 13,581,805
89.53% 67.08%
$ 68,982,061 $ 65,923,502
5.01% 20.60%
Notes to Schedule:
Covered -Employee Payroll presented above is an estimate based on the data submitted for the
valuation. GASB Statement 75 defined Covered -employee payroll as the payroll of employees
that are provided with OPEB through the OPEB plan, including employees terminating during
the measurement period (fiscal year ended September 30, 2018).
* Estimate
Note: GASB 74 was implemented in fiscal year 2017. This schedule is being built prospectively.
Ultimately, 10 years of data will be presented.
112
Indian River County, Florida
Required Supplementary Information
For the Year Ended September 30, 2018
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
2018 $ 1,061,118 $ 2,461,947 $ (1,400,829) $ 68,982,061
2017 $ 2,583,447 $ 2,274,341 $ 309,106 $ 65,923,502
3.57%
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.
113
Valuation Date:
Notes
Indian River County, Florida
Required Supplementary Information
For the Year Ended September 30, 2018
Notes to Schedule of OPEB Contributions
October 1, 2017
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
Amortization Method
Remaining Amortization Period
Asset Valuation Method
Inflation
Salary Increases
Investment Rate of Return
Retirement Age
Mortality
Health Care Trend Rates
Aging factors
Expenses
Entry Age Normal
Level Percentage of Payroll, Closed
10 years
Market Value
2.50%
3.7% to 7.8%, including inflation; varies by plan type and years of service.
6.00%, net of OPEB plan investment expense, including inflation.
Experience -based table of rates that are specific to the plan and type of
eligibility condition.
Mortality tables used in July 1, 2016 actuarial valuation of the Florida
Retirement System. They are based on the results of a statewide experience
study covering the period 2008 to 2013.
Based on the Getzen Model, with trend starting at 7.0% and gradually decreasing
to an ultimate trend rate of 4.39% (including the impact of the excise tax).
Based on the 2013 SOA Study "Health Care Costs - From Birth to Death". See Section
C of the October 1, 2017, Actuarial Valuation Report dated May 23, 2018.
Investment expenses are net of the investment returns;
Administrative expenses are included in the per capita health costs.
Other Information:
Notes There were no benefit changes during the year.
114
Indian River County, Florida
Required Supplementary Information
For the Year Ended September 30, 2018
Schedule of OPEB Investment Returns Multiyear
FY Ending Annual
September 30, Return*
2018 4.95%
2017 9.00%
*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.
115
116
COMBINING AND INDIVIDUAL
FUND STATEMENTS
AND
SCHEDULES
117
Court Facilities -
Section 8 Rental Assistance -
Special Law Enforcement-
NONMAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
To account for the court facility surcharge, additional court costs,
the additional recording fee for court technology, and
improvements made to court facilities.
To account for the provision of rental assistance for low income
housing Financing is provided by grants from the U.S. Department
of Housing and Urban Development.
To account for the expenditures of providing law enforcement
equipment. Financing is provided by confiscation of monies and
property in accordance with Section 932.704 of the Florida
Statutes.
Tree Ordinance Fines- To account for fines assessed against individuals for illegal
removal of protected trees. Funds are used for park improvements.
Tourist Development- 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.
118
Metropolitan Planning Organization- To account for expenditures incurred for planning community
transportation in the County. Financing is provided by grants.
Multi -Jurisdictional Law Enforcement -
Native Uplands Land Acquisition -
Beach Restoration-
CDBG Neighborhood Stabilization
Program -
To account for expenditures incurred in connection with the
cooperative drug enforcement task force established by the
County, the City of Vero Beach and the City of Sebastian. Funds
are provided by grants and program generated income.
To account for expenditures related to the acquisition of native
habitat preserve areas and for the management of such lands.
Funding is provided by developers of property who pay to mitigate
native uplands destruction where native upland plant communities
will be destroyed.
To account for the expenditure of funds to preserve and improve
County beaches. Funds are provided by the levy of a local option
tourist development tax.
To account for the 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.
119
Land Acquisition -
East Gifford Stormwater-
Vero Lake Estates-
Dodgertown Reserve -
Clerk Special Revenue -
Sheriff Special Revenue -
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.
To account for expenditures of funds for stormwater improvements
in the East Gifford Watershed. Funds are provided by non -ad
valorem taxes.
To account for the expenditure of funds to improve roads in the
Vero Lake Estates subdivision. Funds are provided by the levying
of special assessments.
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.
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.
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.
120
Spring Training Facility Bonds -
Land Acquisition Bonds -
DEBT SERVICE FUNDS
To account for the accumulation of State assistance and tourist tax
monies pledged to pay the principal, interest, and fiscal charges on
the Spring Training Facility Bonds.
To account for the accumulation of ad valorem taxes to pay the
principal, interest, and fiscal charges related to the Land
Acquisition Bonds and Note.
121
Indian River County, Florida
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2018
Special Revenue
Court
Facilities
Section 8 Rental
Assistance
Special Law
Enforcement
ASSETS
Cash and investments $ 507,723 $ 386,187 $ 317,875
Accounts receivable - -
Due from other funds
Due from other governments - Interest receivable 204 502 580
Inventories - -
Prepaids and other assets 4,196
Total Assets $ 507,927 $ 390,885 $ 318,455
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 - state and federal grants
Total Deferred Inflows of Resources
FUND BALANCES
Nonspendable:
Inventories
Prepaid items
Restricted for:
Transportation/road improvements
Court -related costs and improvements
Housing assistance
Law enforcement/public safety
Tourism -related activities
Beach renourishment
Boating related projects
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 (deficit)
Total Fund Balances
Total Liabilities and Fund Balances
40,853 $ 16,754 $
40,853 16,754
467,074
4,196
369,935 -
318,455
467,074
374,131 318,455
$ 507,927 $ 390,885 $ 318,455
Special Revenue
State Housing Metropolitan
Tree Ordinance Tourist Initiatives Planning
Fines Development 911 Surcharge Drug Abuse Partnership Organization
717,005 $
1,055,177 $ 1,576,798 $
65,030
1,335 1,821 2,920
6,791
251,753 $
468
524,590 $
21,169
156
1,030
13,128
148,351
718,340 $ 1,056,998 $
1,651,539 $ 252,221 $
546,945 $ 161,479
$ 62,480 $ 27,517 $ 1,528 $ 162,594 $ 17,669
60,000
62,480 27,517 1,528 162,594 77,669
7,383
156 80,468
7,383 156 80,468
6,791
1,609,848
994,518 -
718,340
250,693
384,195
3,342
718,340 994,518
1,616,639 250,693
384,195 3,342
$ 718,340 $ 1,056,998 $ 1,651,539 $ 252,221 $ 546,945 $ 161,479
Continued
123
ASSETS
Cash and investments
Accounts receivable
Due from other funds
Due from other governments
Interest receivable
Inventories
Prepaids and other assets
Total Assets
Indian River County, Florida
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2018
Special Revenue
Native Uplands
Land Acquisition Beach Restoration
CDBG
Neighborhood
Stabilization
Program
$ 680,956 $ 16,748,438 $
1,268
469,669
26,384
58,912
112
682,224 $ 17,244,491 $ 59,024
LIABILITIES
Accounts payable $ 8,640 $ 125,213 $
Retainage payable 14,171
Due to other funds -
Due to other governments
Unearned revenues
Other deposits
Total Liabilities 8,640 139,384
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - state and federal grants
Total Deferred Inflows of Resources
FUND BALANCES
Nonspendable:
Inventories
Prepaid items
Restricted for:
469,669
469,669
Transportation/road improvements
Court -related costs and improvements - -
Housing assistance - 59,024
Law enforcement/public safety -
Tourism -related activities -
Beach renourishment 16,635,438
Boating related projects -
Land acquisition
Stormwater, street lighting, and other special assessments
Voting/election activities
Debt service
Dodgertown repairs/improvements
Committed to:
Environmental conservation/preservation 673,584
Law Enforcement/public safety
Assigned to:
Law enforcement/public safety
Unassigned (deficit)
Total Fund Balances 673,584 16,635,438 59,024
Total Liabilities and Fund Balances $ 682,224 $ 17,244,491 $ 59,024
Special Revenue
Florida Boating
Improvement Disabled Access Federal/State Traffic Education East Gifford
Program Program Grants Program Land Acquisition Stormwater
$ 2,914,582 $ 68,721 $ 1,098 $ 93,205 $ 1,234,468 $ 23,490
- 769 -
- - 11
43,968 - 7,623
2,281 127 - 160 2,296 44
$ 2,960,831 $ 68,848 $ 8,721 $ 93,365 $ 1,237,533 $ 23,545
30,623 $
3,403
2,269
7,623 $ 8,040 $ $
1,098
36,295
8,721
8,040
43,968 - 2,400
43,968 - 2,400
68,848
85,325
2,880,568
1,237,533
23,545
(2,400)
2,880,568 68,848 (2,400) 85,325 1,237,533 23,545
$ 2,960,831 $ 68,848 $ 8,721 $ 93,365 $ 1,237,533 $ 23,545
Continued
125
Indian River County, Florida
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2018
Special Revenue
Vero Lakes Estates
Dodgertown Clerk Special
Reserve Revenue
ASSETS
Cash and investments $ 1,192,171 $ 256,362 $ 1,655,711
Accounts receivable - -
Due from other funds 2,762 -
Due from other governments 10,417 -
Interest receivable 2,219 - -
Inventories -
Prepaids and other assets - 56,342
Total Assets $ 1,197,152 $ 266,779 $ 1,712,053
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 - state and federal grants
Total Deferred Inflows of Resources
FUND BALANCES
Nonspendable:
Inventories
$ 1,178 $ 33,430 $
9,594
25,039 120
12,195
1,178 58,469 21,909
Prepaid items - 56,342
Restricted for:
Transportation/road improvements
Court -related costs and improvements - 1,633,802
Housing assistance
Law enforcement/public safety
Tourism -related activities
Beach renourishment
Boating related projects
Land acquisition
Stormwater, street lighting, and other special assessments 1,195,974
Voting/election activities
Debt service
Dodgertown repairs/improvements 208,310
Committed to:
Environmental conservation/preservation
Law Enforcement/public safety
Assigned to:
Law enforcement/public safety
Unassigned (deficit)
Total Fund Balances 1,195,974 208,310 1,690,144
Total Liabilities and Fund Balances $ 1,197,152 $ 266,779 $ 1,712,053
Special Revenue
Supervisor of
Sheriff Special Elections Special Street Lighting CDBG NSP3
Revenue Revenue Districts Grant
$ 1,892,665 $
98,981
121,467 $
616,323 $ 107,178
3,224
- - 1,155 197
22,881
$ 2,014,527 $ 121,467 $ 620,702 $ 107,375
182,988 $ - $ 20,702 $
121,132
182,988
121,132 20,702
22,881
1,481,298 - -
600,000
335 -
218,375
108,985
107,375
1,831,539 335 600,000 107,375
$ 2,014,527 $ 121,467 $ 620,702 $ 107,375
Continued
127
Indian River County, Florida
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2018
Debt Service
Total
Nonmajor
Spring Training Land Acquisition Governmental
Facility Bonds Bonds Funds
ASSETS
Cash and investments $ 3,009,245 $ 1,350,207 $ 37,375,435
Accounts receivable - 120,919
Due from other funds 53,872 59,869
Due from other governments - 745,214
Interest receivable 5,565 2,521 53,189
Inventories - 22,881
Prepaids and other assets - 67,329
Total Assets $ 3,014,810 $ 1,406,600 $ 38,444,836
LIABILITIES
Accounts payable
Retainage payable
Due to other funds
Due to other governments
Unearned revenues
Other deposits
Total Liabilities
$ $ 757,426
17,574
60,000
27,428
122,230
12,195
996,853
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - state and federal grants 604,044
Total Deferred Inflows of Resources - 604,044
FUND BALANCES
Nonspendable:
Inventories
Prepaid items
Restricted for:
Transportation/road improvements
Court -related costs and improvements
Housing assistance
Law enforcement/public safety
Tourism -related activities
Beach renourishment
Boating related projects
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 (deficit)
Total Fund Balances
Total Liabilities and Fund Balances
3,014,810
22,881
67,329
3,342
2,100,876
920,529
3,814,467
994,518
16,635,438
2,880,568
1,237,533
1,819,519
335
1,406,600 4,421,410
208,310
1,391,924
218,375
108,985
(2,400)
3,014,810
1,406,600 36,843,939
3,014,810 $
1,406,600 $ 38,444,836
129
Indian River County, Florida
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended September 30, 2018
Special Revenue
Section 8 Rental Special Law
Court Facilities Assistance Enforcement
REVENUES
Taxes $ $ $
Permits, fees and special assessments
Intergovernmental - 2,156,279
Charges for services 565,197 31,062 49,865
Judgments, fines and forfeits - - 121,730
Interest 3,340 3,608 2,838
Miscellaneous - 1,650 -
Total revenues 568,537 2,192,599 174,433
EXPENDITURES
General government 35,029
Public safety
Physical environment
Transportation
Economic environment
Human services - 2,231,968
Culture/recreation
Court related 583,534
Debt service:
Principal
Interest and other fiscal charges
Total expenditures 618,563 2,231,968
Excess of revenues over (under) expenditures (50,026) (39,369) 174,433
OTHER FINANCING SOURCES (USES)
Insurance recoveries
Transfers in 9,134
Transfers out - (97,814)
Total other financing sources (uses) 9,134 (97,814)
Net changes in fund balances (40,892) (39,369) 76,619
Fund balances at beginning of year 507,966 413,500 241,836
Fund balances at end of year $ 467,074 $ 374,131 $ 318,455
130
Special Revenue
State Housing
Tree Ordinance Tourist Initiatives
Fines Development 911 Surcharge Drug Abuse Partnership
$ 1,134,558 $
709,327 657,875
427,390
191,750 13,285
6,636 8,909 15,803 2,369 5,774
140
198,386 1,143,467 725,270 15,654 1,091,039
198,386
884,908
711,309
14,312 1,409,626
884,908 711,309 14,312 1,409,626
258,559 13,961
1,342 (318,587)
(212,357)
(212,357)
198,386 258,559 (198,396) 1,342 (318,587)
519,954 735,959 1,815,035 249,351 702,782
$ 718,340 $ 994,518 $ 1,616,639 $ 250,693 $ 384,195
Continued
Indian River County, Florida
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended September 30, 2018
Special Revenue
Multi -
Metropolitan Jurisdictional Native Uplands
Planning Law Land
Organization Enforcement Acquisition
REVENUES
Taxes $ $ $
Permits, fees and special assessments
Intergovernmental 874,044
Charges for services 4,250
Judgments, fines and forfeits -
Interest 6,468
Miscellaneous 2,198 -
Total revenues 876,242 10,718
EXPENDITURES
General government 589,558
Public safety
Physical environment 56,262
Transportation - - -
Economic environment - - -
Human services - - -
Culture/recreation
Court related
Debt service:
Principal
Interest and other fiscal charges
Total expenditures 589,558 56,262
Excess of revenues over (under) expenditures 286,684 (45,544)
OTHER FINANCING SOURCES (USES)
Insurance recoveries
Transfers in
Transfers out (11,111)
Total other financing sources (uses) (11,111)
Net changes in fund balances 286,684 (11,111) (45,544)
Fund balances at beginning of year (283,342) 11,111 719,128
Fund balances at end of year $ 3,342 $ - $ 673,584
132
Special Revenue
CDBG
Neighborhood Florida Boating
Beach Stabilization Improvement Library Disabled Access
Restoration Program Program Bequests Program
$ 1,134,557 $ $ $ $
92,949 168,369
134,624
573 10,881
14,615 30,000
545
642
1,376,745 573 209,250 1,187
2,353
891,814
891,814 2,353
75,038 87
75,038 87
484,931 (1,780) 134,212 (87) 1,187
5,021,507 1,684,123
190,499
5,212,006 1,684,123
5,696,937 (1,780) 1,818,335 (87) 1,187
10,938,501 60,804 1,062,233 87 67,661
$ 16,635,438 $ 59,024 $ 2,880,568 $ $ 68,848
Continued
Indian River County, Florida
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended September 30, 2018
REVENUES
Taxes
Permits, fees and special assessments
Intergovernmental
Charges for services
Judgments, fines and forfeits
Interest
Miscellaneous
Total revenues
EXPENDITURES
General govemment
Public safety
Special Revenue
Traffic
Federal/State Education Land
Grants Program Acquisition
888,316
888,316
$ - $
59,237
921
1,156,406
4,934
60,158 1,161,340
Physical environment - 23,822
Transportation - 44,409
Economic environment -
Human services 890,716
Culture/recreation -
Court related
Debt service:
Principal
Interest and other fiscal charges
Total expenditures 890,716 44,409 23,822
Excess of revenues over (under) expenditures (2,400) 15,749 1,137,518
OTHER FINANCING SOURCES (USES)
Insurance recoveries
Transfers in
Transfers out
Total other financing sources (uses)
Net changes in fund balances (2,400) 15,749 1,137,518
Fund balances at beginning of year 69,576 100,015
Fund balances at end of year $ (2,400) $ 85,325 $ 1,237,533
134
Special Revenue
East Gifford Vero Lakes Dodgertown Clerk Special Sheriff Special
Stormwater Estates Reserve Revenue Revenue
- $ 66 $ $ $
978 244,897
159,606 120,150
454,939 261,547
67,419
220 11,227 12,323
378,513
1,198 256,190 159,606 467,262 827,629
14,030
200,499
674,182
1,051,210
14,030 200,499 674,182 1,051,210
1,198 242,160 (40,893) (206,920) (223,581)
3,292
125,000 278,925
(56) (4,554) -
(56) (4,554) 128,292 278,925
1,142 237,606 87,399 (206,920) 55,344
22,403 958,368 120,911 1,897,064 1,776,195
$ 23,545 $ 1,195,974 $ 208,310 $ 1,690,144 $ 1,831,539
Continued
Indian River County, Florida
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended September 30, 2018
Special Revenue
Supervisor of
Elections Special Street Lighting CDBG NSP3
Revenue Districts Grant
REVENUES
Taxes $ - $ 1,092 $
Permits, fees and special assessments - 284,841
Intergovernmental 89,742
Charges for services -
Judgments, fines and forfeits
Interest 361 6,129 932
Miscellaneous - 2,440 38,528
Total revenues 90,103 294,502 39,460
EXPENDITURES
General government 96,051
Public safety
Physical environment
Transportation - 234,535 -
Economic environment - - 300
Human services
Culture/recreation
Court related
Debt service:
Principal
Interest and other fiscal charges
Total expenditures 96,051 234,535 300
Excess of revenues over (under) expenditures (5,948) 59,967 39,160
OTHER FINANCING SOURCES (USES)
Insurance recoveries
Transfers in 2,486
Transfers out - (7,805)
Total other financing sources (uses) 2,486 (7,805)
Net changes in fund balances (3,462) 52,162 39,160
Fund balances at beginning of year 3,797 547,838 68,215
Fund balances at end of year $ 335 $ 600,000 $ 107,375
136
Debt Service
Total
Land Nonmajor
Spring Training Acquisition Governmental
Facility Bonds Bonds Funds
$ 756,372 $ 4,636,034 $ 7,662,679
530,716
500,004 7,573,067
1,794,250
453,966
26,968 27,237 293,717
468,084
1,283,344
550,000
302,313
4,663,271 18,776,479
1,394,820
1,762,519
80,084
292,974
2,653
4,546,622
2,052,346
583,534
4,158,000 4,708,000
259,840 562,153
852,313 4,417,840 15,985,705
431,031 245,431 2,790,774
6,708,922
606,044
(108,198) (441,895)
(108,198) 6,873,071
431,031 137,233 9,663,845
2,583,779 1,269,367 27,180,094
$ 3,014,810 $ 1,406,600 $ 36,843,939
137
Indian River County, Florida
Budgetary Comparison Schedule
Court Facilities
For the Year Ended September 30, 2018
REVENUES
Charges for services
Interest
Total revenues
EXPENDITURES
General government
Court related
Total expenditures
Excess of revenues over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Total other financing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
138
Final
Budget
Actual
Amounts
$ 556,600 $
2,000
558,600
143,681
661,688
805,369
(246,769)
9,134
9,134
(237,635)
237,635
Variance
Positive
(Negative)
565,197 $ 8,597
3,340 1,340
568,537
35,029
583,534
618,563
(50,026)
9,134
9,134
(40,892)
507,966
9,937
108,652
78,154
186,806
196,743
196,743
270,331
$ - $ 467,074 $ 467,074
Indian River County, Florida
Budgetary Comparison Schedule
Section 8 Rental Assistance
For the Year Ended September 30, 2018
Variance
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Intergovernmental $ 2,185,944 $ 2,156,279 $ (29,665)
Charges for services 32,000 31,062 (938)
Interest - 3,608 3,608
Miscellaneous - 1,650 1,650
Total revenues 2,217,944 2,192,599 (25,345)
EXPENDITURES
Human services 2,370,430 2,231,968 138,462
Total expenditures 2,370,430 2,231,968 138,462
Net change in fund balances (152,486) (39,369) 113,117
Fund balances at beginning of year 152,486 413,500 261,014
Fund balances at end of year $ - $ 374,131 $ 374,131
139
REVENUES
Charges for services
Judgments, fines and forfeits
Interest
Total revenues
Indian River County, Florida
Budgetary Comparison Schedule
Special Law Enforcement
For the Year Ended September 30, 2018
Variance
Final Actual Positive
Budget Amounts (Negative)
$ 49,865 $ 49,865
121,730 121,730
2,838 2,838
174,433 174,433
OTHER FINANCING SOURCES (USES)
Transfers out (97,814) (97,814)
Total other financing sources (uses) (97,814) (97,814)
Net change in fund balances (97,814) 76,619 174,433
Fund balances at beginning of year 97,814 241,836 144,022
Fund balances at end of year $ $ 318,455 $ 318,455
140
REVENUES
Judgments, fines and forfeits
Interest
Total revenues
Indian River County, Florida
Budgetary Comparison Schedule
Tree Ordinance Fines
For the Year Ended September 30, 2018
Variance
Final Actual Positive
Budget Amounts (Negative)
$ 191,750 $ 191,750
6,636 6,636
198,386 198,386
EXPENDITURES
Culture/recreation 50,000 50,000
Total expenditures 50,000 50,000
Net change in fund balances (50,000) 198,386 248,386
Fund balances at beginning of year 50,000 519,954 469,954
Fund balances at end of year $ - $ 718,340 $ 718,340
141
Indian River County, Florida
Budgetary Comparison Schedule
Tourist Development
For the Year Ended September 30, 2018
Variance
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Taxes $ 881,718 $ 1,134,558 $ 252,840
Interest 950 8,909 7,959
Total revenues 882,668 1,143,467 260,799
EXPENDITURES
Culture/recreation 930,169 884,908 45,261
Total expenditures 930,169 884,908 45,261
Net change in fund balances (47,501) 258,559 306,060
Fund balances at beginning of year
Fund balances at end of year
142
47,501 735,959 688,458
$ - $ 994,518 $ 994,518
Indian River County, Florida
Budgetary Comparison Schedule
911 Surcharge
For the Year Ended September 30, 2018
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
143
Final
Budget
Actual
Amounts
Variance
Positive
(Negative)
$ 572,375 $ 709,327 $
15,803
- 140
572,375
1,565,908
1,565,908
(993,533)
(212,357)
(212,357)
(1,205,890)
1,205,890
725,270
711,309
711,309
136,952
15,803
140
152,895
854,599
854,599
13,961 1,007,494
(212,357)
(212,357)
(198,396) 1,007,494
1,815,035 609,145
$ - $ 1,616,639 $ 1,616,639
Indian River County, Florida
Budgetary Comparison Schedule
Drug Abuse
For the Year Ended September 30, 2018
Variance
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Judgments, fines and forfeits $ - $ 13,285 $ 13,285
Interest - 2,369 2,369
Total revenues - 15,654 15,654
EXPENDITURES
Human services 25,000 14,312 10,688
Total expenditures 25,000 14,312 10,688
Net change in fund balances (25,000) 1,342 26,342
Fund balances at beginning of year 25,000 249,351 224,351
Fund balances at end of year $ - $ 250,693 $ 250,693
144
REVENUES
Intergovernmental
Charges for services
Interest
Total revenues
Indian River County, Florida
Budgetary Comparison Schedule
State Housing Initiatives Partnership
For the Year Ended September 30, 2018
Final
Budget
Actual
Amounts
$ 654,116 $
200,000
854,116
EXPENDITURES
Human services 1,556,716
Total expenditures 1,556,716
Net change in fund balances (702,600)
Fund balances at beginning of year 702,600
Fund balances at end of year $
145
Variance
Positive
(Negative)
657,875 $
427,390
5,774
1,091,039
3,759
227,390
5,774
236,923
1,409,626 147,090
1,409,626 147,090
(318,587) 384,013
702,782 182
$ 384,195 $ 384,195
Indian River County, Florida
Budgetary Comparison Schedule
Metropolitan Planning Organization
For the Year Ended September 30, 2018
REVENUES
Intergovernmental
Miscellaneous
Total revenues
EXPENDITURES
General government
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
146
Final
Budget
Actual
Amounts
$ 776,875 $
776,875
777,216
777,216
(341)
341
Variance
Positive
(Negative)
874,044 $ 97,169
2,198 2,198
876,242
589,558
589,558
99,367
187,658
187,658
286,684 287,025
(283,342) (283,683)
$ - $ 3,342 $ 3,342
Indian River County, Florida
Budgetary Comparison Schedule
Multi -Jurisdictional Law Enforcement
For the Year Ended September 30, 2018
Variance
Final Actual Positive
Budget Amounts (Negative)
OTHER FINANCING SOURCES (USES)
Transfers out $ (11,112) $ (11,111) $ 1
Total other financing sources (uses) (11,112) (11,111) 1
Net change in fund balances (11,112) (11,111) 1
Fund balances at beginning of year 11,112 11,111 (1)
Fund balances at end of year $ - $ - $
147
Indian River County, Florida
Budgetary Comparison Schedule
Native Uplands Land Acquisition
For the Year Ended September 30, 2018
Variance
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Charges for services $ - $ 4,250 $ 4,250
Interest - 6,468 6,468
Total revenues - 10,718 10,718
EXPENDITURES
Physical environment 165,000 56,262 108,738
Total expenditures 165,000 56,262 108,738
Net change in fund balances (165,000) (45,544) 119,456
Fund balances at beginning of year 165,000 719,128 554,128
Fund balances at end of year $ - $ 673,584 $ 673,584
148
Indian River County, Florida
Budgetary Comparison Schedule
Beach Restoration
For the Year Ended September 30, 2018
REVENUES
Taxes
Intergovernmental
Interest
Miscellaneous
Total revenues
EXPENDITURES
Culture/recreation
Total expenditures
Excess of revenues over (under) expenditures
OTHER FINANCING SOURCES (USES)
Insurance recoveries
Transfers in
Total other financing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
149
Final
Budget
$ 881,718
9,500
3,000
894,218
3,712,979
3,712,979
(2,818,761)
190,499
190,499
(2,628,262)
2,628,262
Actual
Amounts
$ 1,134,557
92,949
134,624
14,615
1,376,745
891,814
891,814
484,931
5,021,507
190,499
5,212,006
5,696,937
10,938,501
$ 16,635,438
Variance
Positive
(Negative)
$ 252,839
92,949
125,124
11,615
482,527
2,821,165
2,821,165
3,303,692
5,021,507
5,021,507
8,325,199
8,310,239
$ 16,635,438
Indian River County, Florida
Budgetary Comparison Schedule
CDBG Neighborhood Stabilization Program
For the Year Ended September 30, 2018
Variance
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Interest $ - $ 573 $ 573
Total revenues - 573 573
EXPENDITURES
Economic environment 60,803 2,353 58,450
Total expenditures 60,803 2,353 58,450
Net change in fund balances (60,803) (1,780) 59,023
Fund balances at beginning of year 60,803 60,804 1
Fund balances at end of year $ - $ 59,024 $ 59,024
150
Indian River County, Florida
Budgetary Comparison Schedule
Florida Boating Improvement Program
For the Year Ended September 30, 2018
REVENUES
Intergovernmental
Interest
Miscellaneous
Total revenues
EXPENDITURES
Culture/recreation
Total expenditures
Excess of revenues over (under) expenditures
OTHER FINANCING SOURCES (USES)
Insurance recoveries
Total other financing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
151
Final
Budget
Actual
Amounts
$ 170,000 $
170,000
484,009
484,009
(314,009)
(314,009)
314,009
Variance
Positive
(Negative)
168,369 $
10,881
30,000
209,250
75,038
75,038
(1,631)
10,881
30,000
39,250
408,971
408,971
134,212 448,221
1,684,123 1,684,123
1,684,123 1,684,123
1,818,335 2,132,344
1,062,233 748,224
$ - $ 2,880,568 $ 2,880,568
Indian River County, Florida
Budgetary Comparison Schedule
Library Bequests
For the Year Ended September 30, 2018
Variance
Final Actual Positive
Budget Amounts (Negative)
EXPENDITURES
Culture/recreation $ 87 $ 87 $
Total expenditures 87 87
Net change in fund balances (87) (87)
Fund balances at beginning of year 87 87
Fund balances at end of year $ - $ - $
152
REVENUES
Judgments, fines and forfeits
Interest
Total revenues
Indian River County, Florida
Budgetary Comparison Schedule
Disabled Access Program
For the Year Ended September 30, 2018
Variance
Final Actual Positive
Budget Amounts (Negative)
$ 545 $ 545
642 642
1,187 1,187
EXPENDITURES
Human services 20,000 20,000
Total expenditures 20,000 20,000
Net change in fund balances (20,000) 1,187 21,187
Fund balances at beginning of year 20,000 67,661 47,661
Fund balances at end of year $ - $ 68,848 $ 68,848
153
Indian River County, Florida
Budgetary Comparison Schedule
Federal/State Grants
For the Year Ended September 30, 2018
Variance
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Intergovernmental $ 1,590,698 $ 888,316 $ (702,382)
Total revenues 1,590,698 888,316 (702,382)
EXPENDITURES
Human services 1,590,698 890,716 699,982
Total expenditures 1,590,698 890,716 699,982
Net change in fund balances - (2,400) (2,400)
Fund balances at beginning of year
Fund balances at end of year $ - $ (2,400) $ (2,400)
154
Indian River County, Florida
Budgetary Comparison Schedule
Traffic Education Program
For the Year Ended September 30, 2018
Variance
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Judgments, fines and forfeits $ 57,000 $ 59,237 $ 2,237
Interest - 921 921
Total revenues 57,000 60,158 3,158
EXPENDITURES
Transportation 48,000 44,409 3,591
Total expenditures 48,000 44,409 3,591
Net change in fund balances 9,000 15,749 6,749
Fund balances at beginning of year
Fund balances at end of year
155
(9,000) 69,576 78,576
$ - $ 85,325 $ 85,325
REVENUES
Intergovernmental
Interest
Total revenues
Indian River County, Florida
Budgetary Comparison Schedule
Land Acquisition
For the Year Ended September 30, 2018
Variance
Final Actual Positive
Budget Amounts (Negative)
$ 1,156,406 $ 1,156,406
4,934 4,934
1,161,340 1,161,340
EXPENDITURES
Physical environment 90,000 23,822 66,178
Total expenditures 90,000 23,822 66,178
Net change in fund balances (90,000) 1,137,518 1,227,518
Fund balances at beginning of year 90,000 100,015 10,015
Fund balances at end of year $ - $ 1,237,533 $ 1,237,533
156
Indian River County, Florida
Budgetary Comparison Schedule
East Gifford Stormwater
For the Year Ended September 30, 2018
Variance
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Permits, fees and special assessments $ 940 $ 978 $ 38
Interest - 220 220
Total revenues 940 1,198 258
EXPENDITURES
Transportation 19,881 19,881
Total expenditures 19,881 19,881
Excess of revenues over (under) expenditures (18,941) 1,198 20,139
OTHER FINANCING SOURCES (USES)
Transfers out (62) (56) 6
Total other financing sources (uses) (62) (56) 6
Net change in fund balances (19,003) 1,142 20,145
Fund balances at beginning of year 19,003 22,403 3,400
Fund balances at end of year $ - $ 23,545 $ 23,545
157
Indian River County, Florida
Budgetary Comparison Schedule
Vero Lakes Estates
For the Year Ended September 30, 2018
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
158
Final
Budget
238,450
2,850
241,300
926,855
926,855
(685,555)
(4,762)
(4,762)
(690,317)
690,317
Actual
Amounts
Variance
Positive
(Negative)
$ 66 $
244,897
11,227
256,190
14,030
14,030
242,160
(4,554)
(4,554)
237,606
958,368
66
6,447
8,377
14,890
912,825
912,825
927,715
208
208
927,923
268,051
$ - $ 1,195,974 $ 1,195,974
Indian River County, Florida
Budgetary Comparison Schedule
Dodgertown Reserve
For the Year Ended September 30, 2018
Variance
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Intergovernmental $ 159,606 $ 159,606 $
Miscellaneous 3,292 3,292
Total revenues 162,898 162,898
EXPENDITURES
Culture/recreation 287,898 200,499 87,399
Total expenditures 287,898 200,499 87,399
Excess of revenues over (under) expenditures (125,000) (37,601) 87,399
OTHER FINANCING SOURCES (USES)
Transfers in 125,000 125,000
Total other financing sources (uses) 125,000 125,000
Net change in fund balances - 87,399 87,399
Fund balances at beginning of year 120,911 120,911
Fund balances at end of year $ - $ 208,310 $ 208,310
159
Indian River County, Florida
Budgetary Comparison Schedule
Clerk Special Revenue
For the Year Ended September 30, 2018
REVENUES
Charges for services
Interest
Total revenues
EXPENDITURES
General government
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
160
Final
Budget
Actual
Amounts
$ 414,550 $
3,552
418,102
703,790
703,790
(285,688)
285,688
Variance
Positive
(Negative)
454,939 $ 40,389
12,323 8,771
467,262
674,182
674,182
49,160
29,608
29,608
(206,920) 78,768
1,897,064 1,611,376
$ - $ 1,690,144 $ 1,690,144
Indian River County, Florida
Budgetary Comparison Schedule
Sheriff Special Revenue
For the Year Ended September 30, 2018
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
161
Final
Budget
$ 120,150
250,000
70,000
480,924
921,074
Actual
Amounts
Variance
Positive
(Negative)
$ 120,150 $
261,547
67,419
378,513
827,629
1,200,000 1,051,210
1,200,000 1,051,210
(278,926) (223,581)
278,926
278,926
278,925
278,925
55,344
1,776,195
11,547
(2,581)
(102,411)
(93,445)
148,790
148,790
55,345
(1)
(1)
55,344
1,776,195
$ - $ 1,831,539 $ 1,831,539
Indian River County, Florida
Budgetary Comparison Schedule
Supervisor of Elections Special Revenue
For the Year Ended September 30, 2018
Variance
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Intergovernmental $ 149,647 $ 89,742 $ (59,905)
Interest - 361 361
Total revenues 149,647 90,103 (59,544)
EXPENDITURES
General government 152,133 96,051 56,082
Total expenditures 152,133 96,051 56,082
Excess of revenues over (under) expenditures (2,486) (5,948) (3,462)
OTHER FINANCING SOURCES (USES)
Transfers in 2,486 2,486
Total other financing sources (uses) 2,486 2,486
Net change in fund balances - (3,462) (3,462)
Fund balances at beginning of year 3,797 3,797
Fund balances at end of year $ - $ 335 $ 335
162
Indian River County, Florida
Budgetary Comparison Schedule
Street Lighting Districts
For the Year Ended September 30, 2018
Variance
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Taxes $ - $ 1,092 $ 1,092
Permits, fees and special assessments 279,204 284,841 5,637
Interest 1,469 6,129 4,660
Miscellaneous 2,318 2,440 122
Total revenues 282,991 294,502 11,511
EXPENDITURES
Transportation 374,926 234,535 140,391
Total expenditures 374,926 234,535 140,391
Excess of revenues over (under) expenditures (91,935) 59,967 151,902
OTHER FINANCING SOURCES (USES)
Transfers out (8,460) (7,805) 655
Total other financing sources (uses) (8,460) (7,805) 655
Net change in fund balances (100,395) 52,162 152,557
Fund balances at beginning of year
Fund balances at end of year
163
100,395 547,838 447,443
$ - $ 600,000 $ 600,000
Indian River County, Florida
Budgetary Comparison Schedule
CDBG NSP3 Grant
For the Year Ended September 30, 2018
Variance
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Interest $ - $ 932 $ 932
Miscellaneous - 38,528 38,528
Total revenues - 39,460 39,460
EXPENDITURES
Economic environment 68,214 300 67,914
Total expenditures 68,214 300 67,914
Net change in fund balances (68,214) 39,160 107,374
Fund balances at beginning of year 68,214 68,215 1
Fund balances at end of year $ - $ 107,375 $ 107,375
164
Indian River County, Florida
Budgetary Comparison Schedule
Spring Training Facility Bonds
For the Year Ended September 30, 2018
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
165
Final
Budget
Actual
Amounts
$ 587,812 $
475,000
Variance
Positive
(Negative)
756,372 $ 168,560
500,004 25,004
26,968 26,968
1,062,812 1,283,344 220,532
550,000
440,700
990,700
72,112
(72,112)
550,000
302,313
852,313
431,031
2,583,779
$ 3,014,810
138,387
138,387
358,919
2,655,891
$ 3,014,810
Indian River County, Florida
Budgetary Comparison Schedule
Land Acquisition Bonds
For the Year Ended September 30, 2018
Variance
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Taxes $ 4,576,047 $ 4,636,034 $ 59,987
Interest 4,750 27,237 22,487
Total revenues 4,580,797 4,663,271 82,474
EXPENDITURES
Debt service:
Principal 4,158,000 4,158,000
Interest and other fiscal charges 269,840 259,840 10,000
Total expenditures 4,427,840 4,417,840 10,000
Excess of revenues over (under) expenditures 152,957 245,431 92,474
OTHER FINANCING SOURCES (USES)
Transfers out (121,223) (108,198) 13,025
Total other financing sources (uses) (121,223) (108,198) 13,025
Net change in fund balances 31,734 137,233 105,499
Fund balances at beginning of year (31,734) 1,269,367 1,301,101
Fund balances at end of year $ - $ 1,406,600 $ 1,406,600
166
Indian River County, Florida
Budgetary Comparison Schedule
Optional Sales Tax Capital Projects Fund
For the Year Ended September 30, 2018
REVENUES
Taxes
Intergovernmental
Interest
Miscellaneous
Total revenues
EXPENDITURES
Capital projects
Total expenditures
Excess of revenues over (under) expenditures
OTHER FINANCING USES
Transfers out
Total other financing uses
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Final
Budget
$ 15,675,000
4,113,372
142,500
19,930,872
45,818,675
45,818,675
(25,887,803)
Actual
Amounts
$ 18,708,376
2,647,659
734,584
97,431
Variance
Positive
(Negative)
$ 3,033,376
(1,465,713)
592,084
97,431
22,188,050 2,257,178
17,978,862 27,839,813
17,978,862 27,839,813
4,209,188 30,096,991
(1,604,343) (1,604,343)
(1,604,343) (1,604,343)
(27,492,146)
27,492,146
2,604,845 30,096,991
75,322,392 47,830,246
$ $ 77,927,237 $ 77,927,237
167
168
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.
169
Indian River County, Florida
Combining Statement of Net Position
Internal Service Funds
September 30, 2018
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
Deferred outflows related to other postemployment benefits
Total deferred outflows of resources
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
Net other postemployment benefits liability
Total non-current liabilities
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions
Deferred inflows related to other postemployment benefits
Total deferred inflows of resources
NET POSITION
Net investment in capital assets
Unrestricted (deficit)
Total net position
Fleet
Management
Self
Insurance
Information
Technology
Totals
$ 450,761 $ 28,949,797 $ 412,883 $ 29,813,441
102,398 1,375,110 1,477,508
404,597 404,597
63,392 176 11,788 75,356
1,414 102,881 1,265 105,560
255,584 - - 255,584
825 1,110,614 47,575 1,159,014
874,374 31,943,175 473,511 33,291,060
283,768
(262,307)
19,011 2,714,848 3,017,627
(18,009) (2,138,643) (2,418,959)
21,461 1,002 576,205 598,668
895,835 31,944,177 1,049,716 33,889,728
141,016 66,575
9,288 3,981
258,311 465,902
16,718 29,987
150,304 70,556
275,029 495,889
274,687 507,511 61,473 843,671
2,530,000 - 2,530,000
16,654 12,370 57,198 86,222
291,341 3,049,881 118,671 3,459,893
12,049 7,428 52,275 71,752
- 5,909,000 5,909,000
328,848 162,914 613,740 1,105,502
12,087 5,181 21,757 39,025
352,984 6,084,523 687,772 7,125,279
644,325 9,134,404 806,443 10,585,172
31,931 19,332 67,545 118,808
37,166 15,928 66,898 119,992
69,097 35,260 134,443 238,800
21,461 1,002 576,205 598,668
311,256 22,844,067 (192,346) 22,962,977
$ 332,717 $ 22,845,069 $ 383,859 $ 23,561,645
170
OPERATING REVENUES
Charges for services
Total revenues
Indian River County, Florida
Combining Statement of Revenues, Expenses,
and Changes in Fund Net Position
Internal Service Funds
For the Year Ended September 30, 2018
Fleet Self Information
Management Insurance Technology Totals
$ 2,976,026 $ 23,862,169 $ 1,692,681 $ 28,530,876
2,976,026 23,862,169 1,692,681 28,530,876
OPERATING EXPENSES
Personal services 327,466 10,805,995 991,849 12,125,310
Material, supplies, services and other operating 2,530,424 21,794,568 464,608 24,789,600
Depreciation 5,077 249 178,252 183,578
Total operating expenses 2,862,967 32,600,812 1,634,709 37,098,488
Operating income (loss) 113,059 (8,738,643) 57,972 (8,567,612)
NONOPERATING REVENUES (EXPENSES)
Intergovernmental 691 - - 691
Interest income 4,717 318,934 3,859 327,510
Insurance recoveries - 698,679 - 698,679
Gain on disposal of assets 780 - - 780
Loss on disposal of assets (2,050) (2,050)
Total nonoperating revenues (expenses) 6,188 1,017,613 1,809 1,025,610
Income (loss) before transfers 119,247 (7,721,030) 59,781 (7,542,002)
Transfers in (out) 41,367 - 41,367
Change in net position 119,247 (7,679,663) 59,781 (7,500,635)
Total net position - beginning, as restated (Note 17) 213,470 30,524,732 324,078 31,062,280
Total net position - ending $ 332,717 $ 22,845,069 $ 383,859 $ 23,561,645
171
Indian River County, Florida
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended September 30, 2018
Fleet
Management
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $ 2,962,462
Cash paid to suppliers for goods and services (2,425,625)
Cash paid to employees for services (347,211)
Net cash provided by (used in) operating activities
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers
Insurance recoveries
Net cash provided by noncapital financing activities
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Proceeds from sales of capital assets
Purchase of capital assets
Net cash provided by (used in) capital and
related financing activities
Self
Insurance
$ 22,548,605
(21,315,976)
(2,293,026)
189,626 (1,060,397)
780
780
CASH FLOWS FROM INVESTING ACTIVITIES
Interest and dividends on investments 3,731
Net cash provided by investing activities 3,731
Net increase (decrease) in cash and investments 194,137
Cash and investments at beginning of year 256,624
Cash and investments at end of year
Classified as:
Current assets
41,367
698,679
740,046
Information
Technology
Totals
$ 1,696,398 $ 27,207,465
(470,461) (24,212,062)
(998,575) (3,638,812)
227,362
(1,179) (136,452)
(1,179) (136,452)
265,603
265,603
(55,927)
29,005,724
3,135
3,135
94,045
(643,409)
41,367
698,679
740,046
780
(137,631)
(136,851)
272,469
272,469
232,255
318,838 29,581,186
$ 450,761 $ 28,949,797 $
412,883 $ 29,813,441
$ 450,761 $ 28,949,797 $
172
412,883 $ 29,813,441
Indian River County, Florida
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended September 30, 2018
Fleet Self Information
Management Insurance Technology
Totals
RECONCILIATION OF OPERATING
INCOME (LOSS) TO NET CASH
PROVIDED BY OPERATING ACTIVITIES
Operating income (loss) $ 113,059 $ (8,738,643) $ 57,972 $ (8,567,612)
Adjustments to reconcile operating income (loss) to
net cash provided by operating activities:
Depreciation 5,077 249 178,252 183,578
(Increase) decrease in assets:
Accounts receivable (6,696) (1,220,254) - (1,226,950)
Due from other governments (6,868) (93,310) 3,717 (96,461)
Inventories (52,533) - - (52,533)
Deposits (825) 8,358,997 57,621 8,415,793
Increase (decrease) in liabilities:
Accounts payable 158,157 449,431 (63,781) 543,807
Claims payable - 184,000 184,000
Net pension liability 15,539 13,111 44,674 73,324
Net OPEB liability (38,847) (16,649) (69,925) (125,421)
Accrued compensated absences 3,563 2,671 18,832 25,066
Total adjustments
76,567 7,678,246 169,390 7,924,203
Net cash provided by (used in) operating activities $ 189,626 $ (1,060,397) $ 227,362 $ (643,409)
NONCASH CAPITAL AND RELATED
FINANCING ACTIVITIES
Change in fair value of investments $ 253 $ 18,145 $ 226 $ 18,624
173
174
FIDUCIARY FUND
Agency Fund- To account for the assets held solely in a custodial
capacity by the County.
175
Indian River County, Florida
Combining Statement of Changes in Assets and Liabilities
Agency Fund
For the Fiscal Year Ended September 30, 2018
ASSETS
Cash and investments
Total assets
LIABILITIES
Accounts payable
Due to other governments
Other deposits held in escrow
Total liabilities
Balance
October 1,
2017 Additions Deductions
$ 10,617,814
$ 10,617,814
$ 30,559
6,185,534
4,401,721
$ 409,673,159
$ 409,673,159
$
419,085,100
22,585,296
$ 10,617,814 $ 441,670,396
176
Balance
September 30,
2018
$ 409,851,191 $ 10,439,782
$ 409,851,191 $ 10,439,782
$ 30,559 $
419,460,923
22,356,946
5,809,711
4,630,071
$ 441,848,428 $ 10,439,782
Statistical Section
This part of the Indian River County Comprehensive Annual Financial Report presents detailed
information as a context for understanding what the information in the financial statements, note
disclosures and required supplementary information says about the County's overall financial health.
Contents Page(s)
Financial Trends (Schedules 1 - 5)
These schedules contain trend information to help the reader understand how the
County's financial performance and well-being have changed over time.
Revenue Capacity (Schedules 6 - 9)
These schedules contain information to help the reader assess the County's most
significant local revenue source, the property tax.
Debt Capacity (Schedules 10 - 14)
These schedules present information to help the reader assess the affordability of
the County's current levels of outstanding debt and the County's ability to issue
additional debt in the future.
Demographic and Economic Information (Schedules 15 - 16)
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the County's financial activities take
place.
Operating Information (Schedules 17 - 20)
These schedules contain service and infrastructure data to help the reader
understand how the information in the County's financial report relates to the
services the County provides and the activities it performs.
Additional Bond Disclosures (Schedules 21 - 25)
These schedules provide information for required continuing disclosure for the
water and sewer, golf course and spring training bonds.
Sources:
Unless otherwise noted, the information in these schedules is derived from the
comprehensive annual financial report for the relevant year.
177
178-188
189-193
194-201
202-203
204-215
216-220
Indian River County, Florida
Net Position by Component (Unaudited)
Last Ten Fiscal Years
(accrual basis of accounting)
Governmental activities
Net investment in capital assets
Restricted
Unrestricted
2009 2010
2011
$ 461,709,848 $ 480,243,738 $
158,306,364 132,928,838
55,914,407 85,810,359
2012
492,300,301 $
125,452,516
84,860,897
Total governmental activities net position $ 675,930,619 $ 698,982,935 $
Business -type activities
Net investment in capital assets
Restricted
Unrestricted
509,076,923
121,189,228
76,523,757
702,613,714 $ 706,789,908
$ 223,273,040 $ 223,375,337 $
51,021,928 27,898,292
37,122,462 54,592,201
217,876,742 $
24,230,101
61,041,483
Total business -type activities net position $ 311,417,430 $ 305,865,830 $
Primary government
Net investment in capital assets
Restricted
Unrestricted
Total primary government net position
211,631,529
17,941,773
70,286,599
303,148,326 $ 299,859,901
$ 684,982,888 $ 703,619,075 $
209,328,292 160,827,130
93,036,869 140,402,560
710,177,043
149,682,617
145,902,380
$ 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.
178
$ 720,708,452
139,131,001
146,810,356
$ 1,006,649,809
Schedule 1
2013 2014 2015 2016 2017 2018
$ 518,255,719 $ 514,764,316 $ 520,214,002 $ 533,304,941 $ 542,933,904 $ 553,586,726
117,321,755 116,203,827 128,580,087 132,069,178 150,132,598 159,375,667
71,830,421 72,873,567 7,158,887 5,985,180 (1,350,721) (21,032,366)
$ 707,407,895 $ 703,841,710 $ 655,952,976 $ 671,359,299 $ 691,715,781 $ 691,930,027
$ 210,772,860 $ 211,660,190 $ 213,114,279 $ 206,497,575 $ 201,774,405 $ 197,842,084
20,871,037 - (A)
68,686,611 88,420,541 91,057,348 100,336,692 107,047,824 113,467,530
$ 300,330,508 $ 300,080,731 $ 304,171,627 $ 306,834,267 $ 308,822,229 $ 311,309,614
$ 729,028,579 $ 726,424,506 $ 733,328,281 $ 739,802,516 $ 744,708,309 $ 751,428,810
138,192,792 116,203,827 128,580,087 132,069,178 150,132,598 159,375,667
140,517,032 161,294,108 98,216,235 106,321,872 105,697,103 92,435,164
$ 1,007,738,403 $ 1,003,922,441 $ 960,124,603 $ 978,193,566 $ 1,000,538,010 $ 1,003,239,641
179
Indian River County, Florida
Changes in Net Position (Unaudited)
Last Ten Fiscal Years
(accrual basis of accounting)
Expenses
Governmental activities:
General government
Public safety
Physical environment
Transportation
Economic environment
Human service
Cultural/recreation
Court related
Interest on long-term debt
Total governmental activities expenses
Business -type activities:
Water and sewer
Solid waste
Golf course
Other
Total business -type activities expenses
Total primary government expenses
Program Revenues
Governmental activities:
Charges for services:
General government
Public safety
Physical environment
Transportation
Human service
Cultural/recreation
Court related
Operating grants and contributions
Capital grants and contributions
Total governmental activities program revenues
2009
$ 25,837,007
71,221,082
813,580
23,711,653
661,897
8,453,562
24,559,117
6,765,203
2,906,802
2010
$ 23,506,576
68,235,492
1,405,690
20,861,672
2,525,988
7,370,995
(A) 16,009,122
6,251,773
2,714,422
164,929,903 148, 881,730
37,523,097
10,407,437
2,937,141
2,168,894
53,036,569
$ 217,966,472
$ 6,028,321
5,884,118
636,219
2,157,456 (B)
204,299
1,322,785
2,375,430
11,077,388
15,032,731
44,718,747
34,748,276
10,683,984
2,715,607
1,858,420
50,006,287
$ 198,888,017
2011
$ 21,324,680
67,393,943
1,353,074
22,300,819
2,056,453
7,762,962
16,484,242
5,774,032
2,526,114
146,976,319
33,818,640
10,370,476
2,537,665
1,623,862
48,350,643
$ 195,326,962
$ 5,889,678 $ 5,845,567
5,267,209 6,076,085
21,006 24,204
1,514,132 (B) 2,090,194
295,812 346,689
1,328,225 1,340,550
545,967 501,980
15,772,265 (C) 7,926,832
7,016,429 (D) 1,937,488
37,650,723 26,089,589
Business -type activities:
Charges for services:
Water and sewer 26,957,649 27,738,920
Solid waste 9,713,883 8,972,136
Golf course 3,279,135 3,148,029
Other 1,572,693 1,612,870
Operating grants and contributions 1,194,994 -
Capital grants and contributions 3,748,585 1,713,074
Total business -type activities program revenues 46,466,939 43,185,029
Total primary government program revenues $ 91,185,686 $ 80,835,752
Notes:
27,842,092
9,221,396
3,163,062
1,588,934
1,923,271
43,738,755
2012
$ 19,069,181
66,456,674
2,424,109
23,629,799
1,986,091
7,749,253
18,089,432
5,635,245
2,350,241
147,390,025
34,246,967
10,659,004
2,451,603
1,487,515
48,845,089
196,235,114
$ 5,304,385
5,852,093
20,923
2,345,186
358,279
1,397,660
414,356
8,230,411
7,053,494
30,976,787
28,361,246
9,582,955
3,216,471
1,735,713
2,545,759
45,442,144
69,828,344 $ 76,418,931
(A) Increase due to $5 million contribution towards joint use library and increased depreciation for beach restoration projects.
(B) Decrease due to reduced impact fees collections (slowdown in construction activity).
(C) Received Neighborhood Stabilization Grant of $2.6 million.
(D) Contribution of $4.2 million for Sector 3 beach renourishment from Sebastian Inlet District.
(E) State Shared Revenues reclassified to operating grants and contributions.
180
Schedule 2
2013 2014 2015 2016 2017 2018
$ 20,637,750
66,178,467
1,858,307
26,286,998
2,550,157
6,818,023
19,369,326
5,835,184
2,087,204
$ 22,968,835
66,954,956
1,031,710
23,577,720
1,084,204
7,136,042
16,610,269
6,360,814
1,944,229
$ 24,732,636
66,364,113
1,636,749
25,992,461
421,057
7,352,777
17,011,188
6,677,054
1,013,527
151,621,416 147,668,779 151,201,562
33,815,749
10,405,143
2,537,525
1,547,815
48,306,232
$ 199,927,648
$ 5,482,814
6,625,924
5,900
2,768,107
213,485
1,765,912
1,301,135
26,921,514 (E)
6,681,421
51,766,212
28,522,667
9,998,410
3,072,332
2,018,104
4,700,473
48,311,986
$ 100,078,198
35,821,287
10,801,408
2,588,424
1,833,528
35,223,882
11,708,383
2,498,397
7,085,190
$ 27,472,414
77,587,638
1,457,248
28,221,515
427,227
7,790,430
14,713,304
7,077,295
938,123
$ 25,936,632
83,312,452
2,312,036
28,844,114
439,460
8,030,927
16,000,837
7,241,707
763,636
$ 28,331,287
85,963,087
1,610,264
34,860,409
422,142
9,346,942
15,399,398
7,038,280
668,269
165,685,194 172,881,801 183,640,078
35,420,291
12,714,713
2,605,612
2,724,650
38,609,232
14,542,100
2,693,389
3,504,086
38,257,678
15,756,764
2,785,664
3,908,938
51,044,647 51,515,852 53,465,266 59,348,807 60,709,044
$ 198,713,426 $ 202,717,414 $ 219,150,460 $ 232,230,608 $ 243,926,995
$ 5,895,424
8,025,849
20,970
3,365,961
211,294
1,883,347
3,592,298
22,229,254
7,521,538
52,745,935
29,565,901
10,272,415
3,080,960
2,417,724
5,032,042
50,369,042
$ 103,114,977
$ 6,641,363
6,457,584
4,273,591
277,279
1,941,993
3,308,235
24,872,734
11,671,085
59,443,864
$ 7,192,821
8,244,224
9,153
4,508,637
165,041
2,405,951
2,394,385
24,587,446
5,969,099
55,476,757
$ 6,436,467
8,557,148
9,650
4,139,569
201,484
2,723,416
3,214,658
32,161,715
6,820,530
64,264,637
$ 7,029,378
8,389,034
9,192
5,098,549
458,452
3,136,349
3,225,394
28,765,842
7,158,737
63,270,927
30,089,101 31,089,758 32,020,230 32,834,696
11,455,302 13,345,745 13,784,379 14,769,028
3,235,879 3,230,630 3,219,311 3,216,513
2,958,488 3,406,022 3,742,659 4,673,531
- - 1,523,631 1,465,891
8,616,416 5,035,914 6,108,117 6,737,992
56,355,186 56,108,069 60,398,327 63,697,651
$ 115,799,050 $ 111,584,826 $ 124,662,964 $ 126,968,578
Continued
Indian River County, Florida
Changes in Net Position (Unaudited)
Last Ten Fiscal Years
(accrual basis of accounting)
2009 2010 2011 2012
Net (Expense)/Revenue
Governmental activities $ (120,211,156) $ (111,231,007) $ (120,886,730) $ (116,413,238)
Business -type activities (6,569,630) (6,821,258) (4,611,888) (3,402,945)
Total primary government net expenses
$ (126,780,786) $ (118,052,265) $ (125,498,618) $ (119,816,183)
General Revenues and Other Changes in Net Position
Governmental activities:
Property taxes, levied for general purposes $ 87,265,989 $ 78,670,463 $ 69,856,750 $ 64,753,566
Property taxes, levied for debt service 7,131,231 5,933,535 5,600,767 5,574,183
Sales and use taxes 19,292,179 19,022,728 19,261,033 20,144,820
Franchise fees 9,670,169 9,254,621 8,730,861 8,620,401
State shared revenues 11,227,450 17,487,653 17,328,867 17,908,806
Interest earnings 5,747,573 2,079,873 1,299,894 668,012
Miscellaneous 2,018,901 2,061,415 3,082,481 3,079,701
Transfers (7,452,905) (25,965) (643,144) (32,957)
Total governmental activities
134,900,587 134,484,323 124,517,509 120,716,532
Business -type activities:
State shared revenues 417,500 - - -
Interest earnings 3,685,805 1,173,512 723,870 600,116
Miscellaneous 7,893 70,181 562,651 (A) 8,400
Transfers 7,452,905 25,965 643,144 32,957
Total business -type activities 11,564,103 1,269,658 1,929,665 641,473
Total primary government $ 146,464,690 $ 135,753,981 $ 126,447,174 $ 121,358,005
Change in Net Position
Governmental activities $ 14,689,431 $ 23,253,316 $ 3,630,779 $ 4,303,294
Business -type activities 4,994,473 (5,551,600) (2,682,223) (2,761,472)
Total primary government change in net position $ 19,683,904 $ 17,701,716 $ 948,556 $ 1,541,822
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.
182
Schedule 2
2013 2014 2015 2016 2017 2018
$ (99,855,204) $ (94,922,844) $ (91,757,698) $ (110,208,437) $ (108,617,164) $ (120,369,151)
5,754 (675,605) 4,839,334 2,642,803 1,049,520 2,988,607
$ (99,849,450) $ (95,598,449) $ (86,918,364) $ (107,565,634) $ (107,567,644) $ (117,380,544)
$ 62,305,177
4,664,885
21,035,360
8,818,952
637,099
2,903,771
(B)
$ 67,985,321 $ 71,825,109 $ 80,100,810 $ 85,572,692 $ 94,003,409
4,730,556 4,795,927 4,594,381 4,619,804 4,636,034
21,860,958 23,549,042 24,387,340 25,564,904 27,083,593
9,310,711 9,180,652 9,273,567 9,130,133 9,447,649
542,542 1,051,822 1,333,048 1,474,698 2,768,691
2,459,033 1,799,538 5,141,162 2,694,082 2,906,764
(44,000) (3,057,421) 784,452 (82,667 (85,616
100,365,244 106,845,121
109,144,669 125,614,760
128,973,646 140,760,524
427,041 381,497 625,525 791,683 818,490 1,302,025
37,812 331 56,887 12,606 37,285 29,650
44,000 3,057,421 (784,452) 82,667 85,616
464,853 425,828 3,739,833 19,837 938,442 1,417,291
$ 100,830,097 $ 107,270,949 $ 112,884,502 $ 125,634,597 $ 129,912,088 $ 142,177,815
$ 510,040 $ 11,922,277 $ 17,386,971 $ 15,406,323 $ 20,356,482 $ 20,391,373
470,607 (249,777) 8,579,167 2,662,640 1,987,962 4,405,898
$ 980,647 $ 11,672,500 $ 25,966,138 $ 18,068,963 $ 22,344,444 $ 24,797,271
183
Indian River County, Florida
Fund Balances, Governmental Funds (Unaudited)
Last Ten Fiscal Years
(modified accrual basis of accounting)
General Fund
Reserved
Unreserved
Total general fund
All other governmental funds
Reserved
Unreserved, reported in:
Special revenue funds
2009
$ 8,000,000
47,616,773
2010(A) 2011
N/A
N/A
$ 55,616,773 N/A
$ 53,252,040
91,600,421
Total all other governmental funds $ 144,852,461
Total governmental funds $ 200,469,234
General Fund
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total general fund
All other governmental funds
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total all other governmental funds
N/A
N/A
N/A
N/A
N/A
$ 162,760
18,290
21,757,565
1,415,000
33,160,873
$ 56,514,488
$ 2,316,373
130,175,284
4,691,573
9,471,022
(1,184,722)
$ 145,469,530
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
$ 363,619
50,015
21,041,045
1,660,000
33,694,612
$ 56,809,291
$ 814,858
125,082,370
4,661,146
10,013,457
(354,995)
2012
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
$ 311,241
1,120,087
2,374,790 (B)
1,808,000
48,722,929 (B)
$ 54,337,047
$ 557,128
116,379,943
1,483,393
11,288,602
(202,971)
$ 140,216,836 $ 129,506,095
Total governmental funds $ 201,984,018 $ 197,026,127 $ 183,843,142
Notes:
(A) The County implemented GASB Statement 54, Fund Balance Reporting and Governmental Fund Types, in fiscal year
2010.
(B) Reclassified emergency/disaster and budget stabilization reserves from Committed to Unassigned fund balance
categories.
(C) Budget appropriation of fund balance to balance budget no longer necessary.
184
Schedule 3
2013 2014 2015 2016 2017 2018
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
$ 1,224,835
1,000,000
2,370,079
900,000
44,385,674
$ 49,880,588
$ 50,788
112,523,743
1,481,312
8,964,238
(339,223)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
$ 1,134,846
1,000,000
1,223,183
- (C)
48,320,836
$ 51,678,865
$ 39,337
112,266,321
1,492,929
8,139,695
(201,587)
$ 122,680,858 $ 121,736,695
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
$ 459,546
1,000,000
1,092,575
$ 371,121
1,000,000
1,166,830
47,727,109 45,909,787
$ 50,279,230 $ 48,447,738
$ 69,907
120,531,318
1,504,391
7,139,358
(439,479)
$ 121,906
127,285,732
1,401,530
7,118,688
$ 128,805,495 $ 135,927,856
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
$ 1,183,875
1,246,278
1,655,789
43,334,507
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
$ 976,972
1,139,811
1,627,628
47,904,588
$ 47,420,449 $ 51,648,999
$ 217,550 $ 199,134
133,714,625 153,053,248
1,515,217 1,610,299
7,400,390 7,620,206
(290,542) (2,400)
$ 142,557,240 $ 162,480,487
$ 172,561,446 $ 173,415,560 $ 179,084,725 $ 184,375,594 $ 189,977,689 $ 214,129,486
185
Indian River County, Florida
Changes in Fund Balances, Governmental Funds (Unaudited)
Last Ten Fiscal Years
(modified accrual basis of accounting)
Revenues
Taxes
Permits, fees, and special assessments
Intergovernmental
Charges for services
Judgments, fines and forfeits
Interest
Miscellaneous
Total Revenues
Expenditures
Current:
General government
Public safety
Physical environment
Transportation
Economic environment
Human service
Culture/recreation
Court related
Debt service:
Principal
Interest and fiscal charges
Capital outlay
Total Expenditures
Excess of revenues over
(under) expenditures
Other Financing Sources (Uses)
Issuance of refunding notes
Insurance recoveries
Transfers out
Payments to refunded bond escrow agent
Transfers in
2009
$ 113,689,399
12,433,598
34,305,682
16,852,653
1,792,517
5,721,869
2,489,532
187,285,250
2010
$ 103,626,726
11,322,039
37,687,574
14,665,805
852,012
2,061,385
2,383,493
172,599,034
2011
$ 94,718,550
11,189,393
30,453,182
15,030,329
936,995
1,173,103
4,175,614
2012
$ 90,472,569
11,486,235
29,759,832
14,760,125
739,275
613,023
5,237,426
157,677,166 153,068,485
22,566,113 20,894,116 19,271,196 20,477,898
74,813,164 71,489,613 70,432,615 67,761,985
910,213 1,131,173 1,371,734 1,751,623
38,111,512 27,497,907 28,432,207 29,058,310
653,547 2,520,339 2,099,698 2,021,184
8,621,760 7,267,406 7,625,369 6,888,883
15,450,688 18,453,642 14,706,194 13,808,303
6,620,830 6,214,831 5,983,085 5,860,925
5,120,000 5,315,000 4,270,000 8,060,000 (A)
2,948,758 2,758,138 2,562,374 2,426,083
10,435,212 7,487,068 5,825,287 8,108,370
186,251,797 171,029,233 162,579,759 166,223,564
1,033,453 1,569,801 (4,902,593) (13,155,079)
(14,366,145) (17,057,014)
14,3 09,73 3 17,001,997
Total other financing sources (uses) (56,412) (55,017)
Net change in fund balances $ 977,041 $ 1,514,784
Debt service as a percentage of
noncapital expenditures 5.4% 5.6%
(8,918,267) (11,622,984)
8,862,969
11,595,078
(55,298) (27,906)
(4,957,891) $ (13,182,985)
(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.
186
5.0%
7.6%
Schedule 4
2013 2014 2015 2016 2017 2018
$ 88,005,422 $ 94,585,345 $ 100,170,078 $ 109,082,531 $ 115,757,400 $ 125,723,036
12,769,844 14,321,389 15,567,731 16,530,179 15,900,775 17,825,047
30,086,479 30,563,650 32,065,821 33,535,027 30,031,350 36,535,393
15,887,241 18,076,888 18,558,182 15,532,928 16,006,929 17,133,195
778,575 1,004,374 897,860 1,672,773 1,620,964 1,697,085
570,559 463,274 894,705 1,133,215 1,287,415 2,273,375
3,841,294 3,221,548 2,470,553 8,158,393 6,392,927 5,891,296
151,939,414 162,236,468 170,624,930 185,645,046 186,997,760 207,078,427
19,056,322 20,681,570 22,957,111 22,693,234 24,681,861 25,016,607
66,908,328 67,799,667 71,703,248 77,316,218 83,397,539 85,158,140
771,942 781,306 1,055,021 788,803 1,300,862 1,131,396
28,223,229 23,321,248 27,945,569 27,505,659 26,562,596 26,900,384
2,581,401 1,106,886 436,320 424,593 437,031 426,085
6,952,460 7,178,542 7,519,756 7,868,392 8,116,910 9,302,125
11,538,809 11,627,286 15,719,709 13,562,765 12,013,338 12,089,937
6,054,822 6,487,906 6,677,909 6,605,682 6,755,050 6,540,045
6,050,000 (B) 3,700,000 4,180,000 4,383,000 4,573,000 4,708,000
2,118,704 1,984,616 1,266,070 832,007 657,520 562,153
13,037,552 16,560,991 5,309,597 (D) 13,329,391 12,777,795 17,978,862
163,293,569 161,230,018 164,770,310 175,309,744 181,273,502 189,813,734
(11,354,155) 1,006,450
5,854,620 10,335,302 5,724,258 17,264,693
20,369,000 (C)
- 7,014,087
(12,540,187) (10,244,980) (11,354,519) (17,375,606) (14,453,902) (13,274,738)
(20,340,959) (C)
12,504,699 10,092,644 11,141,023 12,331,173 14,331,739 13,147,755
(35,488) (152,336) (185,455) (5,044,433) (122,163) 6,887,104
$ (11,389,643) $ 854,114 $ 5,669,165 $ 5,290,869 $ 5,602,095 $ 24,151,797
6.0% 4.3% 3.8% 3.6% 3.4% 3.2%
187
Indian River County, Florida
Tax Revenues by Source, Governmental Funds (Unaudited)
Last Ten Fiscal Years
(modified accrual basis of accounting)
Schedule 5
Fiscal Year Property (A) Sales & Use Tourist Gasoline Other Total
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
2018 98,639,443 18,708,376 3,025,487 4,024,001 1,325,729 125,723,036
(A) The County 's primary source of revenue is property taxes, amounting to 78 percent of Governmental Funds tax revenues
in 2018. Consequently, supplemental required schedules are provided only for property tax revenues.
188
Indian River County, Florida
Assessed Value and Actual Value of Taxable Property (Unaudited)
Last Ten Fiscal Years
Schedule 6
Fiscal
Year
Real
Property
Actual Value
2009 $ 24,141,420,963
2010 21,272,439,325
2011 18,741,543,869
2012 17,291,910,945
2013 16,563,604,291
2014 16,832,196,339
2015 17,855,660,837
2016 19,941,465,452
2017 23,725,954,463
2018 25,295,251,822
Personal
Property
Actual Value
$ 739,467,578
761,011,306
711,180,228
644,205,795
63 5,119,066
697,294,522
696,658,855
698,630,083
675,815,085
634,654,180
Total
Actual Value
$ 24,880,888,541
22,033,450,631
19,452,724,097
17,936,116,740
17,198,723,357
17,529,490,861
18,552,319,692
20,640,095,535
24,401,769,548
25,929,906,002
Less:
Tax -Exempt
Property
$ 7,431,618,464
6,237,291,938
5,313,689,267
4,731,112,173
4,497,471,382
4,670,052,667
5,150,260,231
6,338,690,254
8,125,447,769
8,547,972,646
Total Taxable
Assessed
Value
$ 17,449,270,077
15,796,158,693
14,139,034,830
13,205,004,567
12,701,251,975
12,859,438,194
13,402,059,461
14,301,405,281
16,276,321,779
17,381,933,356
Source: Indian River County Property Appraiser; values are established as of January 1 of the previous
calendar year, i.e., January 1, 2017 taxable values apply to the fiscal year ending September 30, 2018.
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.
189
Total
Direct
Tax Rate
4.1493
4.1666
4.1625
4.1625
4.1625
4.3353
4.4108
4.4335
4.4335
4.5337
Indian River County, Florida
Property Tax Rates
Direct and Overlapping Tax Rates (Unaudited)
Last Ten Fiscal Years
County direct rate
General fund
Municipal service
Total direct rate (A)
County -wide district school board rate
Other County -wide rates
Emergency Management Services District
Land acquisition bond
Total other County -wide rates
Total County -wide rate (B)
2009 2010 2011 2012
3.0689 3.0892 3.0892 3.0892
1.0804 1.0774 1.0733 1.0733
4.1493 4.1666 4.1625 4.1625
7.0400 7.5960 8.2500 8.2440
1.7148 1.7148 1.7148 1.7148
0.4220 0.3879 0.4087 0.4364
2.1368 2.1027 2.1235 2.1512
13.3261 13.8653 14.5360 14.5577
City rates
Fellsmere 4.4300 4.4300 4.4300 5.2455
Indian River Shores 1.3923 1.3923 1.4105 1.4731
Sebastian 3.3456 3.3456 3.3041 3.3041
Orchid 0.4550 0.4550 0.4550 0.4550
Vero Beach 1.9367 1.9367 1.9367 2.0336
Average of cities rates 2.3119 2.3119 2.3073 2.5023
Other special district rates
1.5362 1.7515 1.7663 1.6856
(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
190
Schedule 7
2013 2014 2015 2016 2017 2018
3.0892 3.2620 3.3375 3.3602 3.3602 3.4604
1.0733 1.0733 1.0733 1.0733 1.0733 1.0733
4.1625 4.3353 4.4108 4.4335 4.4335 4.5337
8.3130 8.1160 7.9950 7.9550 7.4100 7.0530
1.7148 1.9799 1.9799 2.2551 2.3010 2.3655
0.3799 0.3788 0.3694 0.3315 0.3143 0.2955
2.0947 2.3587 2.3493 2.5866 2.6153 2.6610
14.5702 14.8100 14.7551 14.9751 14.4588 14.2477
5.4999 5.6190 5.5309 5.2756 4.9599 4.9599
1.4731 1.4731 1.6786 1.6786 1.7186 1.3774
3.7166 3.7166 3.8556 3.8556 3.8556 3.4000
0.5000 0.4864 0.5500 0.7000 1.2500 2.3000
2.0336 2.0336 2.0336 2.3800 2.3800 2.5194
2.6446 2.6657 2.7297 2.7780 2.8328 2.9113
1.6859 1.7128 1.7124 1.6993 1.5170 1.5390
191
Indian River County, Florida
Principal Property Taxpayers (Unaudited)
Year 2018 and Year 2009
Schedule 8
Taxpayer
2018
Real
Property
Assessed
Valuation
Florida Power & Light
Disney Vacation Dev. Inc.
Windsor Properties
Johns Island Club, Inc.
Adult Community Total Services, Inc.
Bellsouth Telecommunications
Welltower TCG Ridea Landlord, LLC
TSO Vero Beach, LP
MPT of Sebastian -Steward, LLC
MHC Village Green, LLC
Indian River Mall Association
Shelby Homes
Health Care Reit, Inc.
Fellsmere Joint Venture
$ 192,685,228
80,025,233
52,726,250
41,807,484
29,988,697
27,475,005
26,506,098
26,064,227
22,859,259
21,712,643
Total Principal Property Taxpayers
Real Property Assessed Valuation $ 521,850,124
Total County Taxable Valuation
(from schedule 6)
$ 17,381,933,356
Source: Indian River County Property Appraiser
Percentages
of Total
Assessed
Rank Valuation
1 1.11%
2 0.46
3 0.30
4 0.24
5 0.17
6 0.16
7 0.15
8 0.15
9 0.13
10 0.12
192
2009
Real
Property
Assessed
Valuation
$ 108,569,583
76,637,600
42,558,736
46,423,148
49,538,330
58,013,479
51,193,160
34,001,320
29,353,840
28,994,631
2.99% $ 525,283,827
$ 17,449,270,077
Percentages
of Total
Assessed
Rank Valuation
1 0.62%
2 0.44
7 0.24
6 0.27
5 0.28
3 0.33
4
8
9
10
0.29
0.19
0.17
0.17
3.00%
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
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
2018 102,322,230 98,568,670 96.33 40,811 98,609,481 96.37
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 $29,962.
193
Indian River County, Florida
Ratios of Outstanding Debt by Type (Unaudited)
Last Ten Fiscal Years
Governmental Activities Business -type Activities
General Spring Training Recreational
Obligation Capital Facility Bonds Revenue Capital Water & Sewer
Year Bonds (A) Leases 2001 Series Bonds (B) Leases Bonds (C)
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
2018 11,495,000 - 5,665,000 - - 18,749,183
(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.
194
Schedule 10
Percentage
Total of Total Debt Debt
Primary to Personal Per
Government Income (E) Capita (E)
$ 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 0.39 295
35,909,183 (D) 237
195
Indian River County, Florida
Ratio of Net General Bonded Debt Outstanding to Taxable Value and Net Bonded Debt per Capita (Unaudited)
Last Ten Fiscal Years Schedule 11
Ratio Of
Gross General Debt Service Net Bonded Net Bonded
Fiscal Taxable Obligation Monies Net Bonded Debt To Debt Per
Year Population (A) Value (A) Bonded Debt Available (A) Debt Taxable Value Capita
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
2018 151,825 17,381,933,356 11,495,000 1,406,600 12,901,600 0.0007 84.9768
(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 obtained from the University of Florida, Bureau of Economic and Business Research.
196
Indian River County, Florida
Computation of Legal Debt Margin (Unaudited)
September 30, 2018
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
197
Indian River County, Florida
Direct and Overlapping Governmental Activities Debt (Unaudited)
September 30, 2018
Schedule 13
Governmental Unit
Debt repaid with property taxes:
Share of
Debt Percentage Overlapping
Outstanding Applicable Debt
Indian River County Limited General Obligation Refunding Note,
Series 2015 $ 11,495,000 100% $ 11,495,000
Revenue Bonds - Spring Training Facility - Series 2001 5,665,000 100% 5,665,000
Total direct debt of County: 17,160,000
Other debt:
Indian River County School District Certificates of Participation
Total overlapping debt:
Total direct and overlapping debt:
(A) Indian River County School District, as of June 30, 2018
106,881,071 (A) 100% 106,881,071
106,881,071
$ 124,041,071
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.
198
199
Indian River County, Florida
Pledged Revenue Coverage (Unaudited)
Water and Sewer Revenue Bonds
(Series 1993A, 1996, 2005, 2009)
Last Ten Fiscal Years
2009 2010 2011 2012
Uniform Charges
Water sales $ 13,001,743 $ 13,570,657 $ 13,565,766 $ 13,621,878
Wastewater sales 11,954,333 12,375,346 12,203,750 12,515,394
Other 1,285,605 1,430,966 1,639,985 1,727,411
Total uniform charges 26,241,681 27,376,969 27,409,501 27,864,683
Septage/Sludge 294,459 302,187 314,969 373,616
Surcharges 244,619 245,011 245,245 246,298
Interest earnings 2,110,031 686,776 491,260 315,377
1989/1990 Special assessments 413 438 8,718
1996 Special assessments 184,272 151,316 93,513 75,037
Gross revenues 29,075,475 28,762,697 28,563,206 28,875,011
Less: Direct expenses 17,057,273 16,007,055 15,404,503 15,657,085
Net revenues available
for debt service $ 12,018,202 $ 12,755,642 $ 13,158,703 $ 13,217,926
Annual debt service
Principal $ 2,745,000 $ 2,870,000 $ 2,990,000 $ 3,090,000
Interest 2,047,513 2,510,910 2,324,525 2,193,450
Total debt service payment $ 4,792,513 $ 5,380,910 $ 5,314,525 $ 5,283,450
Debt service coverage
2.51x 2.37x 2.48x 2.50x
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 10.
200
Schedule 14
2013 2014 2015 2016 2017 2018
$ 13,667,115 $ 14,059,231 $ 14,345,074 $ 14,829,381 $ 15,325,231 $ 15,350,614
12,546,429 12, 879,006 13 ,116, 393 13,498,090 13,777,255 13 ,980,424
1,763,426 2,025,378 2,005,106 2,068,865 2,262,801 2,793,060
27,976,970 28,963,615 29,466,573 30,396,336 31,365,287 32,124,098
426,634 478,555 483,828 531,432 521,882 507,233
246,363 242,073 98,163 - -
239,270 258,741 294,303 363,597 375,208 624,790
69,757 22,091 30,872 31,915 22,440 9,008
28,958,994 29,965,075
30,373,739 31,323,280
32,284,817 33,265,129
15,217,294 16,040,433 16,129, 860 18,064,619 18,590,922 18,754,402
$ 13,741,700 $ 13,924,642 $
14,243,879 $ 13,258,661 $
13,693,895 $ 14,510,727
$ 3,205,000 $ 3,350,000 $ 3,485,000 $ 2,878,000 $ 2,992,000 $ 3,107,000
2,080,951 1,937,450 1,827,867 1,095,886 983,267 866,899
$ 5,285,951 $ 5,287,450 $ 5,312,867 $ 3,973,886 $ 3,975,267 $ 3,973,899
2.60x 2.63x
2.68x 3.34x
201
3.44x 3.65x
Indian River County, Florida
Demographic and Economic Statistics (Unaudited)
Last Ten Years
Schedule 15
Total Per Capita
Personal Personal Unemployment
Year Population (A) Income (B) Income (B) Rate (C)
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 11,312,198,000 73,274 4.6
2018 151,825 (D) (D) 3.9
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.
202
Indian River County, Florida
Principal Employers (Unaudited)
Year 2018 and Year 2009
Schedule 16
Employer
2018
Percentage
Number of of Total County
Employees Employment
School District of Indian River County 2,407 3.95%
Indian River Medical Center 2,099 3.45
Indian River County* 1,543 2.53
Publix Supermarkets 1,300 2.14
Piper Aircraft Inc. 995 1.63
Wal-Mart 736 1.21
Sebastian River Medical Center 595 0.98
John's Island 580 0.95
Medical Data Systems 500 0.82
Visiting Nurse Association 432 0.71
Total 11,187 18.37
Total County Employees 60,878
Employer
2009
Percentage
Number of of Total County
Employees Employment
School District of Indian River County 2,147 4.14%
Indian River County* 1,425 2.75
Indian River Medical Center 1,093 2.11
Piper Aircraft Inc. 700 1.35
Publix Supermarkets 535 1.03
City of Vero Beach 489 0.94
Sebastian River Medical Center 380 0.73
CVS Warehouse/Distribution 325 0.63
Wal-Mart 293 0.57
John's Island 250 0.48
Total 7,637 14.73
Total County Employees 51,833
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.
203
Indian River County, Florida
Building Permits (Unaudited)
Last Ten Fiscal Years
Indian River County Municipalities
Fiscal # of New # of Additions & # of New
Year Permits Construction Permits Alterations Permits Construction
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)
2018 1,133 412,240,706 11,889 185,405,814 276 143,690,820
Source: Building Depailnients - 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.
204
Schedule 17
Countywide
# of Additions & # of New # of Additions &
Permits Alterations Permits Construction Permits Alterations
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
8,717 120,801,687 1,409 555,931,526 20,606 306,207,501
205
Indian River County, Florida
Operating Indicators by Function/Program (Unaudited)
Last Ten Fiscal Years
Function/Program
2009 2010 2011 2012
General Government
Purchasing
Purchase orders issued 2,463 1,970 1,805 1,852
Public Safety
Fire rescue
Vehicle rescue response 34,480 34,529 37,550 39,316
Fire code inspections 5,917 2,358 2,239 1,874
Advanced life support calls 9,085 9,751 10,935 10,904
Basic Life support calls (transport only) 3,486 3,269 3,077 3,406
Sheriff
Arrests 4,331 5,065 4,464 3,144
Violent crimes 340 310 394 107
Non-violent crimes 6,099 5,719 6,058 6,063
Total calls for service 138,998 154,480 162,944 176,170
Building department
Construction permits issued 442 394 416 421
Estimated value of construction (millions) $ 97.7 $ 83.0 $ 96.3 $ 95.7
Physical Environment
Solid waste
Waste stream tonnage received 207,344 201,561 180,434 205,355
Total recycled material (tons) 40,931 45,298 30,424 53,255
Utilities - water & sewer
Number of water customers 42,972 43,723 44,254 44,571
Number of wastewater customers 25,192 25,205 25,465 25,773
WaterERUs 63,147 64,146 64,391 64,820
Wastewater ERUs 45,319 45,427 45,863 46,107
Water consumption (Average Daily Demand) 8,700,000 8,225,000 8,198,000 7,798,000
Source: Internal reports prepared by the various departments of Indian River County
206
Schedule 18
2013 2014 2015 2016 2017 2018
1,740 1,760
1,826 2,033 2,312 2,418
39,340 41,540 45,485 45,874 47,357 48,615
1,992 1,753 1,993 2,200 2,500 2,162
10,991 11,283 11,571 12,428 12,947 13,711
3,544 3,851 4,180 4,524 4,798 4,969
3,885 4,262 3,832 3,660 3,922 3,699
439 552 495 548 549 606
5,683 5,853 5,804 5,682 5,501 5,376
199,687 216,082 250,814 274,464 235,540 273,760
562 611 666 827 1,071 1,133
$ 159.4 $ 190.8 $ 241.1 $ 309.0 $ 348.4 $ 412.2
211,382 265,278 265,958 279,910 310,007 295,380
50,792 101,444 86,564 98,009 119,773 94,218
45,216 46,223 46,865 48,540 49,176 50,254
26,233 26,948 27,448 28,767 29,229 30,021
65,477 66,261 66,829 72,488 68,506 69,463
46,576 47,027 47,596 53,428 48,748 49,425
7,558,000 8,620,000 9,200,000 9,200,000 9,900,000 10,162,000
Continued
207
Indian River County, Florida
Operating Indicators by Function/Program (Unaudited)
Last Ten Fiscal Years
Function/Program
2009 2010 2011 2012
Transportation
Public works
Projects under design 29 13 26 19
Projects awarded for construction 5 7 7 10
Construction projects completed 12 6 8 8
County engineering
Roads designed 5 6 4 4
Miles of roads designed 5.00 6.00 1.00 8.00
Traffic engineering
Site plans reviewed 423 271 218 290
Culture/Recreation
Library
Circulation (County -wide) 1,314,372 1,403,367 1,362,857 1,277,253
Recreation depat linent
Total beach park attendance 437,302 467,434 449,213 420,609
Athletic and event attendance 14,730 23,750 24,112 23,979
Aquatic centers attendance 89,787 87,107 98,515 97,965
Shooting range
Safety/Registration cards issued 9,050 6,471 8,176 8,302
Golf course
Rounds played 101,810 96,593 94,713 96,723
Court Related
Law library
Circulation 18,512 13,079 9,168 9,428
(A) Law library circulation is now included in the County -wide library circulation.
208
Schedule 18
2013 2014 2015 2016 2017 2018
20
5
5
6
6.00
357
43
7
20
34
9
17
8 8
8.35
387
10.00
554
13
3
17
6
8.50
412
15
7
13
5
11.00
560
31
8
11
4
4.75
715
1,300,764 (A) 1,317,458 1,295,310 1,389,188 1,315,425 1,254,954
404,287 434,397 416,962 669,465 553,630 792,782
23,841 23,900 24,073 24,267 23,974 25,016
97,183 105,459 110,186 116,997 112,308 113,592
8,462 7,911 7,655 5,984 6,867 7,318
91,770 90,306 93,739 91,426 96,332 93,361
N/A (A) N/A
N/A
209
N/A
N/A
N/A
Indian River County, Florida
Full -Time Equivalent County Government Employees by Function/Program (Unaudited)
Last Ten Fiscal Years
2009 2010 2011 2012
General Government
Board of County Commissioners 10 10 10 8.5
County Attorney 7 6 6 6
Administration 3 2.72 2.35 2.35
Financial/Administrative Service 23 21.5 19.85 19.85
Comprehensive Planning 19 16 14.32 15
Other 44.5 36.5 34 34.75
Clerk of Circuit Court 99.5 98.5 98 96
Property Appraiser 40 40 36 35
Supervisor of Elections 9.5 9.5 8 8.5
Tax Collector 38 38 38 38
Public Safety
Fire Department 240 246 244 243
Advanced Life Support
Sheriff - Corrections 195 198 207 163
Sheriff - Court Service 29.5 29.5 29.5 27.5
Sheriff - Law Enforcement 301 301 301 303
Building Department 18 17 15 14
Other 10 9 6.68 6
Physical Environment
Solid Waste 49 49 10 9
Utilities - water and sewer 128 118 112.5 112.5
Other 9 9 8 8
Transportation
Road and Bridges 86.5 80 77 77.25
County Engineering 33 28 27 26
Traffic Engineering 21 21 20 20
Real Estate Acquisition 2 2.28 1 1
Economic Environment 3.5 3.5 2.5 2.5
Human Services 14.5 13 13 13
Culture/Recreation
Libraries 45.5 47.5 46.5 42
Parks 39 37 34 28
Recreation Department 46 37.5 33 33.3
Coastal Engineering 3 2 2 2
Shooting Range 5.5 5.5 5 5
Golf Course 16.5 15.5 15.5 15
Court Related
Law Library 1 1 1 1
Total
1,590.0 1,549.0 1,478.0 1,416.0
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.
210
Schedule 19
2013 2014 2015 2016 2017 2018
9 9 9 9 9 9
6 6 6 6 6 6
2.35 2.35 2.35 2.35 2.35 2.35
19.35 20.85 21.85 22.85 21.85 22.35
15 14.5 14.5 14.5 15 16
33.9 33.4 33.4 33.4 35.4 36.4
98 93 93 97 90 87
35 36 36 39 38 39
8.5 9.5 9.5 9.5 10.5 11
44 45 47 47 49 51
243 243 244 265 276 295
163 163 163 168 171 171
27.5 27.5 27.5 34 29 29
303 303 303 278 289 305
15 18.5 21.5 25 29.5 30.5
4 4 4.5 5.5 6 6
9 9 10 10 11 11
113.5 116.5 118.5 120.5 122.5 127.5
7 8 8 10 9 11
77.1 78.1 78.1 79.1 79.1 79.1
24 24 26 26 28 30
19 19 20 21 22 22
1 1 1 1 1 1
2.5 2.5 2.5 2.5 2.5 2.5
12 12 12 12 12 12.5
41.5 41.5 42 42 42 42
28 28 28 28 30 30
32.3 32.8 38.3 38.3 42.3 43.3
2 2 2 2 2 3
5 5 5 5.5 9.5 9.5
13.5 13.5 13.5 13 13 13
1,415.0 1,422.5 1,442.0 1,456.0 1,501.0 1,555.0
211
Indian River County, Florida
Capital Asset Statistics by Function/Program (Unaudited)
Last Ten Fiscal Years
Function/Program
2009 2010 2011 2012
General Government
Facilities Management
Total square footage maintained (A) 715,215 715,215 715,215 720,215
Number of facilities and sites maintained (A) 47 47 47 48
Vehicles 15 15 15 15
General government
Vehicles 27 26 31 31
Planning
Vehicles 7 7 7 6
GIS
Vehicles 1 1 1 1
Public Safety
Fire department
Vehicles 54 51 51 51
Fire stations 11 12 12 12
Advanced life support
Vehicles 20 17 18 18
E911 Center
Vehicles 1 1 1 1
Sheriff
Vehicles 291 288 298 295
Building department
Vehicles 9 9 9 9
Physical Environment
Solid waste
Vehicles 30 30 1 1
Telecommunications
Vehicles 1 1 1 1
Ag Extension
Vehicles 2 1 1 1
Utilities - Water and Sewer
Vehicles 82 81 81 85
Water treatment plants 2 2 2 2
Wastewater treatment facilities 6 6 6 6
Water main - miles 819 845 839 843
Force main - miles 230 226 229 223
Gravity sewer lines - miles 262 269 271 270
Transportation
Road and bridge
Miles maintained (paved & unpaved) 628 636 636 638
Bridges maintained 78 78 75 75
Vehicles 65 64 67 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 9/30/2018, the County owned and maintained 263 structures totaling 1,635,365
square feet.
212
Schedule 20
2013 2014 2015 2016 2017 2018
720,215 720,215 720,215 760,801 881,874 965,823
48 48 48 66 55 56
15 16 15 15 14 14
30 30 28 26 28 28
5 6 6 6 6 6
1 1 1 1 1 1
46 47 58 60 57 58
12 12 12 13 13 14
19 19 17 19 18 18
1 1 1 1 1 1
274 293 282 323 321 311
9 10 16 25 19 19
1 1 2 2 2 2
1 1 1 1 1 2
1 1 1 1 2 2
79 80 81 81 83 83
2 2 2 2 2 2
6 6 6 6 6 6
847 852 857 859 860 866
225 225 221 223 222 222
273 269 268 267 271 273
650 650 650 653 653 660
71 72 72 72 72 72
64 64 67 63 56 56
Continued
213
Indian River County, Florida
Capital Asset Statistics by Function/Program (Unaudited)
Last Ten Fiscal Years
Function/Program
2009 2010 2011 2012
Transportation - continued:
Senior Resource Association
Vehicles 25 32 34 34
Engineering
Vehicles 16 16 16 13
Traffic engineering
Traffic signals operated 133 137 137 137
Beacons operated 48 48 53 46
Vehicles 3 1 1 1
Traffic operations
Vehicles 15 16 18 18
Human Services
Health depaitment
Vehicles 16 15 15 17
Animal Control
Vehicles 7 7 7 7
Rental Assistance
Vehicles 2 2 2 2
Culture/Recreation
Libraries
Locations 2 3 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 25 24 25 24
Recreation
Vehicles 5 5 5 5
Shooting range
Vehicles 1 1 1 1
Rifle range stations 29 29 29 29
Pistol range stations 35 35 35 35
Sporting clay course - skeet and trap fields
Golf Course
Holes maintained 36 36 36 36
Vehicles 2 2 2 2
214
Schedule 20
2013 2014 2015 2016 2017 2018
38 35 35 39 36 39
13 13 14 13 15 16
150 150 150 160 155 159
45 45 43 47 56 56
1 1 1 1 1 1
19 21 20 22 18 19
17 17 17 9 10 18
7 6 6 6 6 6
2 2 2 3 3 3
3 3 3 3 3 3
10 10 11 12 12 12
40 37 37 37 36 36
4,014 3,429 3,429 3,429 5,081 5,081
69 69 69 69 69 69
8 8 8 8 8 8
22 23 20 20 18 20
5 5 7 6 5 4
1 1 1 1 1 1
29 29 29 29 29 29
35 35 35 35 35 35
- 3
36 36 36 36 36 36
2 2 2 1 1 1
215
Indian River County, Florida
Department of Utility Services
Historical Rate Structure (Unaudited)
Last Ten Fiscal Years
Schedule 21
Fiscal Years
2009-2018 *
WATER RATES
Billing charges $ 1.29
Base facilities charges (per ERU)
Single-family or commercial 7.76
Multi -family or manufactured home 6.60
Volume charge - per 1,000 gallons (per ERU)
0-3,000 gallons 2.20
3,001-7,000 gallons 2.42
7,001 gallons and over 3.85
Excess volume surcharge - greater than
13,000 gallons per month (per ERU) 7.70
Base facilities charge where capacity is reserved
but lines are not yet available (per ERU)
Single-family or commercial 3.88
Multi -family or manufactured home 3.30
SEWER RATES
Billing charges
Base facility charge (per ERU)
Single-family or commercial
Multi -family or manufactured home
Volume charge - per 1,000 gallons
Single-family & manufactured home (1,000-12,000)
Multi -family & commercial (0-13,000)
Multi -family & commercial (>13,000)
Base facilities charge where capacity is reserved
but lines are not yet available (per ERU)
Single-family or commercial
Multi -family or manufactured home
*The last change to the County's water and sewer rates occurred on October 1, 1999.
Source: Indian River County Utilities Department
216
1.29
14.58
12.40
2.86
2.86
4.29
7.29
6.20
Indian River County, Florida
Water and Wastewater Customers (Unaudited)
Last Ten Fiscal Years
Schedule 22
The number of County water and wastewater customers, expressed as the number of equivalent residential
units (ERUs), for the years 2009 through 2018 as set forth below:
Fiscal Year
Water ERUs Wastewater ERUs
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
2018 69,463 49,425
Source: Indian River County Utilities Department
217
Indian River County, Florida
Top 10 High Volume Customers of Utility Services (Unaudited)
Fiscal Year 2018
Schedule 23
Below is a table depicting the ten highest volume customers of the utility system for the fiscal year ended
September 30, 2018:
Customer
Annual Water Annual Wastewater
Volume Volume
(x 1,000 gals.) (x 1,000 gals.)
Vista Royale 1 34,344 1 34,344
MHC Village Green LLC 2 26,723 2 26,723
Acts, Inc. 3 26,778 3 26,636
City of Fellsmere 4 23,219
IRC School Board 4 23,901 5 19,195
Disney's Vero Beach Resort 5 19,317 6 19,317
IRC Facilities Management 6 18,954 7 18,954
NHC FL1 LP/DBA Encore RV Park 7 18,300 8 18,300
Lakewood Village RO Assoc, Inc. 8 15,968 9 15,968
Vista Gardens 9 14,814 10 14,814
Pinnacle Grove, Ltd 10 14,366
Source: Indian River County Utilities Department
218
Indian River County, Florida
Capacity Charges - Utilities Department (Unaudited)
Last Ten Fiscal Years
Schedule 24
The County also receives capacity charges in connection with the system. Capacity charges are not
pledged as a security for the bonds. While the County may pledge the capacity charges in the future,
the County presently has no intention to pledge capacity charges as security for the bonds. Capacity
charges for the last ten fiscal years ended September 30 are as follows:
Fiscal Year
Wastewater
Water Capacity Capacity Total
Charges Charges Charges
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
2018 1,385,670 2,074,352 3,460,022
219
Indian River County, Florida
Pledged Revenues for Spring Training Facility Revenue Bonds, Series 2001 (Unaudited)
Last Ten Fiscal Years Schedule 25
Year Professional Total
Ended Sports State Tourist One Cent Half Cent
September 30 Subsidy Tax Collected Tourist Tax (A) Sales Tax (B)
2009 $ 500,004 $ 1,294,163 $ 323,541 $ 7,000,465
2010 500,004 1,324,953 331,238 6,929,458
2011 500,004 1,487,061 363,233 7,075,101
2012 500,004 1,604,919 401,230 7,412,887
2013 500,004 1,743,283 435,821 7,828,550
2014 500,004 1,918,200 479,550 8,219,778
2015 500,004 2,267,100 566,774 8,684,772
2016 500,004 2,433,491 608,373 9,043,910
2017 500,004 2,817,766 704,442 9,431,933
2018 500,004 3,025,487 756,372 9,907,733
(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 10.
220
Rehmann
Rehmann Robson
5070 North Highway AIA,
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 5, 2019
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, 2018, which collectively comprise the County's fund financial statements and have issued
our report thereon dated March 5, 2019.
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.
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221
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The Honorable Board of County Commissioners
Indian River County, Florida
March 5, 2019
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.
-4(41 LLC
222
Rehmann
MANAGEMENT LETTER
March 5, 2019
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, 2018, and have issued our report thereon dated
March 5, 2019.
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 5, 2019, 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
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
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Nexia
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The Honorable Board of County Commissioners
Indian River County, Florida
March 5, 2019
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.
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.
LLC
224
F�ehmann
INDEPENDENT ACCOUNTANTS' REPORT
March 5, 2019
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 ("the County") with Sections
218.415, 28.35, 28.36, 365.172(10), 365.173(2)(d) and 61.81 Florida Statutes, during the year ended
September 30, 2018.
Management's Responsibility
Management is responsible for compliance with those requirements.
Independent Accountants' Responsibility
Our responsibility is to express an opinion on the County's compliance with those requirements based on
our examination. Our examination was conducted in accordance with attestation standards established
by the American Institute of Certified Public Accountants. Those standards require that we plan and
perform the examination to obtain reasonable assurance about whether the County is in compliance with
specified requirements established by Florida Statute and performing such procedures as we considered
necessary in the circumstances.
We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for
our opinion. Our examination does not provide a legal determination on the County's compliance with
specified requirements.
Opinion
In our opinion, the County complied, in all material respects, with the aforementioned requirements for
the year ended September 30, 2018.
Purpose of this Report
This report is intended solely for the information of management, the Board of County Commissioners
and the Florida Auditor General and is not intended to be and should not be used by anyone other than
these specified parties.
Rehmann is an independent member of Nexia International.
CPAs & Consultants Wealth Advisors Corporate Investigators
444ut.74,7d-Lmt,LLC
225
'W A +rerna,er of
Nexia
International
F�ehmann
Rehmann Robson
5070 North Highway AIA,
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
INDEPENDENT AUDITORS' REPORT ON THE
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE PROJECTS
REQUIRED BY UNIFORM GUIDANCE AND CHAPTER 10.550, RULES OF THE AUDITOR GENERAL
March 5, 2019
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, 2018, and the related notes to the financial
statements, which collectively comprise the County's basic financial statements. We issued our report
thereon dated March 5, 2019, 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.
Rehmann is an independent member of Nexia International.
CPAs & Consultants Wealth Advisors Corporate Investigators
444,o(...-X"d-L-f)t,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, 2018
Federal/State Agency
Pass-through Entity
Federal Program/State Project
Department of Housing and Urban Development:
Direct Programs:
Comm. Dev. Block Grant - Neighborhood Stabilization Pgm #3
CDBG NSP #3 Program Income Expenditures
Passed through Florida Dept. of Economic Opportunity:
CDBG NSP #1 Program Income Expenditures
Subtotal CFDA - 14.228
Passed through Florida Housing Finance Corporation:
Tenant Based Rental Assistance
Direct Programs:
Continuum of Care -
Rental Assistance
Rental Assistance
Rental Assistance
Homeless Management Information Systems
Homeless Management Information Systems
Rental Assistance
Rental Assistance
Rental Assistance
Rental Assistance
Rental Assistance
Rental Assistance
Homeless Management Information Systems
Homeless Management Information Systems
Rental Assistance
Rental Assistance
Subtotal CFDA - 14.267
Direct Programs:
Section 8 Housing Choice Vouchers
CFDA/
CSFA
No.
14.228
14.228
14.239
14.267
14.267
14.267
14.267
14.267
14.267
14.267
14.267
14.267
14.267
14.267
14.267
14.267
14.267
14.267
Contract/
Grant
No.
B -11 -UN -12-0022
Program Income $
10DB-4X-10-40-01-F 13
Program Income
2013-210TBRA
FL0113L4H091604
FL0114L4H091609
FL0114L4H091710
FL0116L4H091609
FL0116L4H091710
FL0119L4H091609
FL0119L4H091710
FL0338L4H091603
FL0360L4H091607
FL0360L4H091708
FL0380L4H091602
FL0418L4H091503
FL0418L4H091604
FL0440L4H091605
FL0440L4H091706
14.871 FL -132 -VO -014 to 017
Expenditures
300
2,353
2,653
27,216
Transfers to
Subrecipients
94,272 $ 6,599
45,035 4,879
33,162 -
35,400 35,400
4,800 4,800
225,152 18,597
37,863 -
69,816 4,887
76,047 6,394
27,848 -
88,116 6,168
10,425 10,425
25,404 25,404
81,294 7,506
36,082 6,870
890,716 137,929
2,204,752 -
Total Department of Housing and Urban Development 3,125,337 137,929
227
Indian River County, Florida
Schedule of Expenditures of Federal Awards and State Projects
For the Fiscal Year Ended September 30, 2018
Federal/State Agency CFDA/ Contract/
Pass-through Entity CSFA Grant
Federal Program/State Project No. No.
Expenditures
Department of Justice:
Passed through Office of the Attorney General:
Crime Victim Assistance Program 16.575 V-2016-IRCSO-00470 $ 1,348
Crime Victim Assistance Program 16.575 V-2017-IRCSO-00510 83,089
Total Department of Justice 84,437
Department of Transportation:
Passed through Florida Department of Transportation:
LAP - Indian River Blvd. 20.205 GOS17 373,014
Metropolitan Planning Organization 20.205 G0B28 247,476
Metropolitan Planning Organization 20.205 GOY81 60,720
Hurricane Matthew Local Government Emergency Relief 20.205 G0O68 41,190 *
Passed through University of Florida:
Florida Safe Routes to School 20.205 G0N54 53,148
Total Highway Planning and Construction Cluster 775,548
Passed through Florida Department of Transportation:
Federal Transit Metropolitan Planning Grant
Section 5311 Non -Urbanized Public Transit
20.505 G0359 161,876
Transfers to
Subrecipients
20.509 ARQ46 66,692 $ 66,692
Direct Programs:
Federal Transit Formula Section 5307 Grant 20.507 FL -2018-103-00 1,892,800 1,892,800
Federal Transit Formula Section 5307 Grant 20.507 FL -2018-003-00 54,920 54,920
Federal Transit Formula Section 5307 Grant 20.507 FL -2016-033-00 9,262 9,262
Federal Transit Formula Section 5307 Grant 20.507 FL -90-X888 347,841 347,841
Subtotal CFDA - 20.507 2,304,823 2,304,823
Federal Transit Formula Section 5339 Grant
Total Federal Transit Cluster
20.526 ARE87 196,717 196,717
2,501,540 2,501,540
Total Department of Transportation 3,505,656 2,568,232
228
Indian River County, Florida
Schedule of Expenditures of Federal Awards and State Projects
For the Fiscal Year Ended September 30, 2018
Federal/State Agency CFDA/ Contract/
Pass-through Entity CSFA Grant
Federal Program/State Project No. No.
Elections Assistance Commission:
Passed through the Florida Dept. of State
Divison of Elections:
Elections Security Grant
Albert Network Monitoring Solution Grant
Federal Elections Activities 2014/2015
Subtotal CFDA - 90.401
Department of Health and Human Services,
Agency for Children and Families,
Office of Child Support Enforcement:
Passed through Florida Department of Revenue:
Sheriff Service of Notices
Child Support Enforcement -Title IV D
Total Department of Health and Human Services
Expenditures
90.401 19.e.es.000.100 $ 69,264
90.401 2018 -2019 -002 -IND 7,069
90.401 N/A 13,409
89,742
93.563 00331 8,679
93.563 COC31 307,201
315,880
Department of Homeland Security:
Passed through Division of Emergency Management:
Disaster Relief Funding - Hurricane Matthew 97.036 FEMA4283DR 1,726,881 *
Disaster Relief Funding - Hurricane Irma 97.036 FEMA4337 3,084
Subtotal CFDA - 97.036 1,729,965
Community Emergency Response Team 97.042 N/A 5,688
Emergency Management Performance Grant 97.042 19 -FG -AF -10-40-01-079 31,294
Emergency Management Performance Grant 97.042 18 -FG -7A-10-40-01-169 41,456
Subtotal CFDA - 97.042 78,438
Operation Stonegarden 97.067 17 -DS -W1-10-53-02-250 29,324
Subtotal CFDA - 97.067 29,324
Total Department of Homeland Security 1,837,727
TOTAL EXPENDITURES OF FEDERAL AWARDS:
* Expenditures incurred in prior fiscal years
229
Transfers to
Subrecipients
$ 8,958,779 $ 2,706,161
Indian River County, Florida
Schedule of Expenditures of Federal Awards and State Projects
For the Fiscal Year Ended September 30, 2018
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 $ 95,195
Emergency Management Preparedness and Assistance 31.063 19 -BG -21-10-40-01-016 21,612
Subtotal CSFA - 31.063 116,807
Hazardous Materials Analysis Grant 31.067 18 -CP -11-10-40-01-146 2,848
Total Division of Emergency Management 119,655
Department of Environmental Protection:
Direct Projects:
Hurricane Sandy Beach Project 37.003 141R2 20,887
Wabasso Beach Restoration Post Construction Monitoring 37.003 17182 109,268
Subtotal CSFA - 37.003 130,155
Osprey Acres Floway and Nature Preserve 37.039 NS027 1,219,272
Sebastian Harbor Preserve 37.078 S0958 1,156,406 *
Total Department of Environmental Protection 2,505,833
Florida Housing Finance Corporation:
Direct Projects:
State Housing Initiatives Partnership
Total Florida Housing Finance Corporation
40.901 N/A 1,409,626
1,409,626
Department of State:
Direct Project:
State Aid to Libraries 45.030 18 -ST -21 100,798
Division of Historical Resources
Jones Pier Fruit Stand 45.031 19.H.SM.100.020 700
Total Department of State 101,498
Department of Transportation:
Direct Projects:
Transportation Disadvantaged Planning Grant
SCOP - Resurfacing CR512
SCOP - Restructuring 58th Ave
SCOP - Restructuring 58th Ave
Subtotal CSFA - 55.009
Fl Public Transit Block Grant
FDOT Service Development Grant
Transit Corridor Grant
55.002 G0N55 18,261
55.009 G0999 753,507
55.009 GOG81 505,340
55.009 433068-1-54-01 447
1,259,294
55.010 ARQ56 529,517 $ 529,517
55.012 GOG90 319,667 319,667
55.013 ARE86 118,695 126,374
Total Department of Transportation 2,245,434 975,558
230
Indian River County, Florida
Schedule of Expenditures of Federal Awards and State Projects
For the Fiscal Year Ended September 30, 2018
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
Total Department of Health
Department of Law Enforcement:
Direct Project:
Victim/Witness Protection Award
Total Department of Law Enforcement
Department of Revenue:
Direct Project:
Facilities for Retained Spring Training Franchise
Total Department of Revenue
64.005 C5031/C6031 $ 44,828
44,828
71.006 N/A 808
808
73.016 N/A 500,004
TOTAL EXPENDITURES OF STATE FINANCIAL ASSISTANCE:
* Expenditures incurred in prior fiscal years
231
500,004
$ 6,927,686 $ 975,558
Indian River County, Florida
Notes to Schedule of Expenditures of Federal Awards and State Projects
For the Fiscal Year Ended September 30, 2018
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.
232
Indian River County, Florida
Notes to Schedule of Expenditures of Federal Awards and State Projects
For the Fiscal Year Ended September 30, 2018
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 Irma $ 3,564,994
Less: Hurricane Irma PWs Not Approved in FY 2018 (3,561,910)
Expenditures per SEFA $ 3,084
233
Rehmann
Rehmann Robson
5070 North Highway AIA,
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND
MAJOR STATE PROJECT AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE
UNIFORM GUIDANCE AND CHAPTER 10.550, RULES OF THE AUDITOR GENERAL
March 5, 2019
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, 2018. 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.
Rehmann is an independent member of Nexia International.
CPAs & Consultants Wealth Advisors Corporate Investigators
234
A .rrerna,er of
IVexia
International
The Honorable Board of County Commissioners
Indian River County, Florida
March 5, 2019
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, 2018.
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.
-41-4(4444C��rZ�.�.ni- LLC
235
INDIAN RIVER COUNTY, FLORIDA
Schedule of Findings and Questioned Costs
For the Year Ended September 30, 2018
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 Projects
Internal control over major programs and projects:
Material weakness(es) identified?
Significant deficiency(ies) identified?
Type of auditors' report issued on compliance
for major programs:
Any audit findings disclosed that are required
to be reported in accordance with
2 CFR 200.516(a)?
Identification of major programs:
CFDA Number
20.FTC
97.036
CSFA Number
Unmodified
yes X no
yes X none reported
yes X no
yes X no
yes X none reported
Unmodified
yes X no
Name of Federal Program or Cluster
Federal Transit Cluster
Disaster Grants - Public Assistance
Name of State Project
37.039 Statewide Surface Water Restoration and
Wastewater Projects
37.078 Florida Communities Trust
55.009 Small County Outreach Program
45.03 State Aid to Libraries
Dollar threshold used to distinguish
between Type A and Type B programs:
$ 750,000 (Federal and State)
Auditee qualified as low-risk auditee? X yes no
236
INDIAN RIVER COUNTY, FLORIDA
Schedule of Findings and Questioned Costs
For the Year Ended September 30, 2018
SECTION II - FINANCIAL STATEMENT FINDINGS
None noted.
SECTION III - FEDERAL AWARD AND STATE PROJECT FINDINGS AND QUESTIONED COSTS
None noted.
237
INDIAN RIVER COUNTY, FLORIDA
• Summary Schedule of Prior Audit Findings
For the Year Ended September 30, 2018
None noted.
238
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.
fficer of the Entity)
STATE OF FLORIDA, COUNTY OF INDIAN RIVER
SWORN TO AND SUBSCRIBED before me this $ day of
2019.
NARY PUBLIC
Personally known v' or produced identification
Type of identification produced:
My Commission Expires: r9- 15 ). !
239
Print Name
240
BOARD OF COUNTY COMMISSIONERS
241
Rehmann
INDEPENDENT AUDITORS' REPORT
March 5, 2019
The Honorable Board of County Commissioners
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 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, 2018, 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.
Rehmann is an independent member of Nexia International.
CPAs & Consultants Wealth Advisors Corporate Investigators
242
A membeof
IVexia
International
The Honorable Board of County Commissioners
Indian River County, Florida
March 5, 2019
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, 2018, 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, 2018, 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 5,
2019, 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.
-ece-L4441,s...�uLr'.. LLC
243
Indian River County, Florida
Board of County Commissioners
Balance Sheet
Governmental Funds
September 30, 2018
General
Secondary
Impact Roads
Fees Construction
ASSETS
Cash and investments $ 47,577,507 $ 19,662,000 $ 11,037,688
Accounts receivable 501,157 - -
Special assessments receivable
Due from other funds 400,255 - -
Due from other governments 7,775,059 56,579 808,559
Interest receivable 97,863 36,758 20,996
Inventories 35,344 - -
Prepaids and other assets 114,451 - 39,569
Advances to other funds 571,994 - -
Total assets $ 57,073,630 $ 19,755,337 $ 11,906,812
LIABILITIES
Accounts payable $ 2,635,373 $ 139,643 $ 1,061,191
Retainage payable 116,957 75,529
Due to other funds - - -
Due to other governments 360,116 98,318
Unearned revenues 331,967 -
Other deposits 22,039 - -
Total liabilities 3,349,495 354,918 1,136,720
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
16,834
2,058,302 391,368
2,075,136 391,368
FUND BALANCES
Nonspendable:
Inventories 35,344 -
Prepaid items 114,451 39,569
Advances to other funds 571,994 - -
Restricted for:
Transportation/road improvements 12,838,054 10,339,155
Court -related costs and improvements - -
Housing assistance -
Law enforcement/public safety 917,416
Fire/emergency services 480,425
Tourism -related activities -
Beach renourishment -
Boating related projects -
Library services - 657,423
Land acquisition -
Stormwater, street lighting, and other special assessments - -
Debt service - -
Capital projects 1,037,918
Dodgertown repairs/improvements - -
Parks/recreational projects 1,139,811 3,469,183
Committed to:
Economic incentives 1,279,573
Environmental conservation/preservation -
Law enforcement/public safety 12,898
Library services 160,088
Parks/recreational projects 175,069
Assigned to:
Transportation/road improvements
Unassigned 48,159,771
Total fund balances 51,648,999 19,400,419 10,378,724
Total liabilities, deferred inflows and fund balances $ 57,073,630 $ 19,755,337 $ 11,906,812
The accompanying notes are an integral part of the financial statements.
244
Transportation
Emergency Optional Other Total
Services Sales Governmental Governmental
District Tax Funds Funds
$ 8,047,961 $ 11,138,786 $ 78,990,202 $ 33,479,776 $ 209,933,920
17,529 2,302,749 60,985 21,938 2,904,358
175,151 - 175,151
- - - - 400,255
703,504 832,084 3,030,709 1,030,899 14,237,393
175,829 22,828 147,250 53,189 554,713
- 39,683 - - 75,027
939 28,733 - 10,987 194,679
- - - - 571,994
$ 9,120,913 $ 14,364,863 $ 82,229,146 $ 34,596,789 $ 229,047,490
715,313 $ 1,167,507 $ 3,537,879 $ 564,844 $ 9,821,750
- 330,590 17,574 540,650
- - 60,000 60,000
108,512 27,308 594,254
- 146 - 1,098 333,211
- 22,039
823,825 1,167,653 3,868,469 670,824 11,371,904
335,929 - 335,929
2,299,917 - - 2,299,917
15,661 41 60,801 93,337
433,338 479,244 372,639 604,044 4,338,935
784,928 2,779,202 433,440 604,044 7,068,118
- 39,683 - 75,027
939 28,733 10,987 194,679
- 571,994
3,342 23,180,551
467,074 467,074
- - 920,529 920,529
- - 2,333,169 3,250,585
- 10,349,592 - - 10,830,017
994,518 994,518
- - 16,635,438 16,635,438
- - 2,880,568 2,880,568
- - - 657,423
1,237,533 1,237,533
- - 1,819,519 1,819,519
- - 4,421,410 4,421,410
77,927,237 78,965,155
- - 208,310 208,310
- - 4,608,994
- 1,279,573
- - 1,391,924 1,391,924
- - 12,898
- - 160,088
- - 175,069
7,511,221 - 7,511,221
- (2,400) 48,157,371
7,512,160 10,418,008 77,927,237 33,321,921 210,607,468
$ 9,120,913 $ 14,364,863 $ 82,229,146 $ 34,596,789 $ 229,047,490
245
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, 2018
General
Secondary
Impact Roads
Fees Construction
REVENUES
Taxes $ 64,911,751 $ - $ 4,024,001
Permits, fees and special assessments 9,763,658 7,244,549
Intergovernmental 20,383,173 - 2,416,621
Charges for services 2,524,710 - -
Judgments, fines and forfeits 317,465 - -
Interest 619,079 176,419 108,879
Miscellaneous 4,613,032 2,653 23,431
Total revenues 103,132,868 7,423,621 6,572,932
EXPENDITURES
General government 11,439,521 629,102
Public safety 4,735,987 -
Physical environment 391,427 -
Transportation 4,702,480 2,322,212 6,074,974
Economic environment 423,432 -
Human services 4,755,503 -
Culture/recreation 9,879,282 158,309
Court related 268,095 -
Debt service:
Principal -
Interest and other fiscal charges -
Capital projects
Total expenditures 36,595,727 3,109,623 6,074,974
Excess of revenues over (under) expenditures 66,537,141 4,313,998 497,958
OTHER FINANCING SOURCES (USES)
Insurance recoveries 48,801
Transfers in
Transfers out (10,469,276)
Transfers to constitutional officers (51,888,116)
Total other financing sources (uses) (62,308,591)
Net change in fund balances 4,228,550 4,313,998 497,958
Fund balances at beginning of year 47,420,449 15,086,421 9,880,766
Fund balances at end of year $ 51,648,999 $ 19,400,419 $ 10,378,724
The accompanying notes are an integral part of the financial statements.
246
Transportation
Emergency Optional Other Total
Services Sales Governmental Governmental
District Tax Funds Funds
- $ 30,416,229 $ 18,708,376 $ 7,662,679 $ 125,723,036
286,124 - - 530,716 17,825,047
3,245,894 103,665 2,647,659 7,363,175 36,160,187
111,993 6,639,383 - 1,077,764 10,353,850
- 7,300 - 386,547 711,312
86,789 162,899 734,584 281,033 2,169,682
575,414 23,026 97,431 89,571 5,424,558
4,306,214 37,352,502 22,188,050 17,391,485 198,367,672
320,016 - - 624,587 13,013,226
- 34,056,372 - 711,309 39,503,668
659,885 - 80,084 1,131,396
13,507,744 292,974 26,900,384
- 2,653 426,085
4,546,622 9,302,125
2,052,346 12,089,937
- - 583,534 851,629
- - - 4,708,000 4,708,000
- - 562,153 562,153
17,978,862 - 17,978,862
14,487,645 34,056,372 17,978,862 14,164,262 126,467,465
(10,181,431) 3,296,130 4,209,188 3,227,223 71,900,207
256,364 6,708,922 7,014,087
10,228,276 324,633 10,552,909
(85,616) - (125,000) (10,679,892)
- (671,122) (1,479,343) (441,895) (54,480,476)
10,399,024
(671,122) (1,604,343) 6,591,660 (47,593,372)
217,593 2,625,008 2,604,845 9,818,883 24,306,835
7,294,567 7,793,000 75,322,392 23,503,038 186,300,633
$ 7,512,160 $ 10,418,008 $ 77,927,237 $ 33,321,921 $ 210,607,468
247
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, 2018
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)
Insurance recoveries
Transfers out
Transfers to constitutional officers
Total other fmancing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
$ 63,897,259 $ 63,897,259
8,776,100 8,776,100
12,871,251 17,702,480
2,046,434 2,201,434
330,115 330,115
180,690 180,690
4,050,887 4,057,452
92,152,736 97,145,530
10,698,206 12,058,579
4,471,603 5,113,362
411,403 453,158
1,083,333 6,769,663
459,863 463,885
5,059,135 5,079,353
9,916,993 12,159,989
351,565 353,160
$ 64,911,751
9,763,658
20,3 83,173
2,524,710
317,465
619,079
4,613,032
$ 1,014,492
987,558
2,680,693
323,276
(12,650)
438,389
555,580
103,132,868 5,987,338
11,439,521
4,735,987
391,427
4,702,480
423,432
4,755,503
9,879,282
268,095
619,058
377,375
61,731
2,067,183
40,453
323,850
2,280,707
85,065
32,452,101 42,451,149
59,700,635 54,694,381
(10,460,142)
(52,020,232)
(62,480,374)
(10,469,276)
(52,049,927)
(62,519,203)
36,595,727 5,855,422
66,537,141 11,842,760
48,801
(10,469,276)
(51,888,116)
(62,308,591)
48,801
161,811
210,612
(2,779,739)
(7,824,822)
4,228,550 $ 12,053,372
2,779,739
7,824,822
47,420,449
- $ 51,648,999
The accompanying notes are an integral part of the financial statements.
248
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, 2018
Variance
with Final
Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Permits, fees and special assessments $ 3,761,250 $ 3,761,250 $ 7,244,549 $ 3,483,299
Interest 34,500 34,500 176,419 141,919
Miscellaneous - 2,653 2,653
Total revenues 3,795,750 3,795,750 7,423,621 3,627,871
EXPENDITURES
General government 359,996 862,254 629,102 233,152
Transportation 7,402,000 9,843,920 2,322,212 7,521,708
Culture/recreation 1,249,200 1,276,616 158,309 1,118,307
Total expenditures 9,011,196 11,982,790 3,109,623 8,873,167
Net change in fund balances (5,215,446) (8,187,040) 4,313,998 $ 12,501,038
Fund balances at beginning of year 5,215,446 8,187,040 15,086,421
Fund balances at end of year $ - $ - $ 19,400,419
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
Secondary Roads Construction Fund
For the Year Ended September 30, 2018
REVENUES
Taxes
Intergovernmental
Interest
Miscellaneous
Total revenues
EXPENDITURES
Transportation
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Budgeted Amounts
Original Final
Actual
Amounts
$ 3,576,750 $ 3,576,750 $
7,128,311
23,750 23,750
3,600,500 10,728,811
Variance
with Final
Budget
Positive
(Negative)
4,024,001 $ 447,251
2,416,621 (4,711,690)
108,879 85,129
23,431 23,431
6,572,932 (4,155,879)
6,294,030 17,021,892 6,074,974 10,946,918
6,294,030 17,021,892 6,074,974 10,946,918
(2,693,530) (6,293,081) 497,958 $ 6,791,039
2,693,530 6,293,081 9,880,766
$ - $ - $ 10,378,724
The accompanying notes are an integral part of the financial statements.
250
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, 2018
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)
Insurance recoveries
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Budgeted Amounts
Original Final
$ 213,750 $
2,753,749
89,775
30,400
366,851
3,454,525
Actual
Amounts
213,750 $
2,753,749
89,775
30,400
366,851
3,454,525
Variance
with Final
Budget
Positive
(Negative)
286,124 $
3,245,894
111,993
86,789
575,414
4,306,214
72,374
492,145
22,218
56,389
208,563
851,689
331,294
733,278
13,512,249
14,576,821
(11,122,296)
10,228,276
(85,616)
335,914
917,833
15,143,842
16,397,589
(12,943,064)
10,228,276
(85,616)
320,016
659,885
13,507,744
15,898
257,948
1,636,098
14,487,645 1,909,944
(10,181,431) 2,761,633
256,364 256,364
10,228,276
(85,616)
10,142,660
10,142,660
(979,636) (2,800,404)
10,399,024
256,364
217,593 $ 3,017,997
979,636
2,800,404
7,294,567
$ - $ - $ 7,512,160
The accompanying notes are an integral part of the financial statements.
251
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, 2018
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
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
Budgeted Amounts
Original Final
$ 30,033,653
45,125
5,659,451
11,400
28,500
38,030
35,816,159
Actual
Amounts
Variance
with Final
Budget
Positive
(Negative)
$ 30,033,653 $ 30,416,229 $ 382,576
69,784 103,665 33,881
5,659,451 6,639,383 979,932
11,400 7,300 (4,100)
28,500 162,899 134,399
38,030 23,026 (15,004)
35,840,818 37,352,502 1,511,684
35,758,558
38,249,700 34,056,372 4,193,328
35,758,558
57,601
38,249,700 34,056,372 4,193,328
(2,408,882)
3,296,130 5,705,012
(603,334) (680,169) (671,122)
(603,334) (680,169) (671,122)
9,047
9,047
(545,733) (3,089,051) 2,625,008 $ 5,714,059
545,733
3,089,051 7,793,000
10,418,008
The accompanying notes are an integral part of the financial statements.
252
Indian River County, Florida
Board of County Commissioners
Statement of Fund Net Position
Proprietary Funds
September 30, 2018
Enterprise Funds
Solid Waste
Disposal Golf County County
District Course Utilities Building
Total
Internal
Service Funds
ASSETS
Current assets:
Cash and investments $ 17,625,094 $ 301,547 $ 47,313,920 $ 7,960,257 $ 73,200,818 $ 29,813,395
Accounts receivable - net 857,525 1,597 2,891,914 78 3,751,114 1,477,508
Due from other governments 1,453,295 30,095 763,277 29,297 2,275,964 479,999
Interest receivable 61,308 1,653 738,807 25,605 827,373 105,560
Inventories - 108,207 1,406,902 - 1,515,109 255,584
Prepaids and other assets 60 11,113 11,173 1,159,014
Current restricted assets:
Cash and investments 14,278,421 40,275,745 54,554,166
Total current assets 34,275,643 443,159 93,401,678 8,015,237 136,135,717 33,291,060
Non-current assets:
Capital assets- non -depreciable 12,895,248 6,606,283 17,253,592 36,755,123 -
Capital assets - depreciable 31,954,052 4,879,812 438,440,608 599,678 475,874,150 3,017,627
Capital assets - accumulated depreciation (14,767,925) (2,074,722) (279,674,687) (383,396) (296,900,730) (2,418,959)
Non-current restricted assets:
Special assessments receivable 620,377 620,377
Impact fees receivable 273,956 273,956
Liens receivable 7,738,123 7,738,123
Total non-current assets 30,081,375 9,411,373 184,651,969 216,282 224,360,999 598,668
Total assets 64,357,018 9,854,532 278,053,647 8,231,519 360,496,716 33,889,728
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions 205,052 168,480 2,502,036 550,052 3,425,620 465,902
Deferred outflows related to other postemployment benefits 13,534 3,981 168,510 40,071 226,096 29,987
Deferred amounts on refundings - - 862,724 - 862,724 -
Total deferred outflows of resources 218,586 172,461 3,533,270 590,123 4,514,440 495,889
LIABILITIES
Current liabilities (payable from current assets):
Accounts payable 1,255,451 77,052 2,398,450 146,692 3,877,645 843,671
Retainage payable 89,511 - 110,445 - 199,956 -
Due to other funds - 340,255 - 340,255 -
Claims payable - - - - - 2,530,000
Due to other governments 1,514 10,354 49,527 29,341 90,736 -
Other deposits 1,000 - 1,000
Unearned revenues - 49,079 - - 49,079 -
Accrued compensated absences 34,488 20,432 521,749 94,958 671,627 86,222
Total current liabilities (payable from current assets) 1,380,964 498,172 3,080,171 270,991 5,230,298 3,459,893
Current liabilities (payable from restricted assets):
Accounts payable 827,641 827,641
Retainage payable 183,653 183,653
Accrued interest payable 62,107 62,107
Closure and maintenance costs payable 8,506,674 8,506,674
Notes payable - - 1,025,000 1,025,000 -
Bonds payable - - 2,205,000 2,205,000 -
Customer deposits 163,243 3,158,933 3,322,176 -
Total current liabilities (payable from restricted assets) 8,669,917 - 7,462,334 _ - 16,132,251 -
Total current liabilities 10,050,881 498,172 10,542,505 270,991 21,362,549 3,459,893
Non-current liabilities:
Accrued compensated absences 25,145 54,297 223,560 35,119 338,121 71,752
Advance from other funds - 571,994 - - 571,994 -
Claims payable - - - - 5,909,000
Closure and maintenance costs payable 5,608,504 - - 5,608,504 -
Net pension liability 478,042 410,404 6,071,140 1,241,808 8,201,394 1,105,502
Net other postemployment benefits liability 17,613 5,180 219,299 52,148 294,240 39,025
Notes payable - - 3,174,000 - 3,174,000 -
Bonds payable - net of unamortized discount/premium 12,345,183 12,345,183
Total non-current liabilities 6,129,304 1,041,875 22,033,182 1,329,075 30,533,436 7,125,279
Total liabilities 16,180,185 1,540,047 32,575,687 1,600,066 51,895,985 10,585,172
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions 44,870 45,294 674,931 135,743 900,838 118,808
Deferred inflows related to other postemployment benefits 54,156 15,928 674,292 160,343 904,719 119,992
Total deferred inflows of resources 99,026 61,222 1,349,223 296,086 1,805,557 238,800
NET POSITION
Net investment in capital assets 30,081,375 9,411,373 158,133,054 216,282 197,842,084 598,668
Unrestricted (deficit) 18,215,018 (985,649) 89,528,953 6,709,208 113,467,530 22,962,977
Total net position $ 48,296,393 $ 8,425,724 $ 247,662,007 $ 6,925,490 $ 311,309,614 $ 23,561,645
The accompanying notes are an integral part of the financial statements.
253
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, 2018
Enterprise Funds
Solid Waste
Disposal Golf
District Course
OPERATING REVENUES
Charges for services $ 14,774,028 $ 3,216,513
Charges for services pledged as security for revenue bonds
Total operating revenues 14,774,028 3,216,513
OPERATING EXPENSES
Personal services 635,008 579,871
Material, supplies, services and other operating 13,153,521 1,952,642
Depreciation 1,106,933 233,762
Total operating expenses 14,895,462 2,766,275
Operating income (loss) (121,434) 450,238
NONOPERATING REVENUES (EXPENSES)
Intergovernmental 191,393 8,592
Interest income 302,534 7,985
Interest income pledged as security for revenue bonds
Insurance recoveries 687,773
Gain on disposal of assets - 1,350
Interest expense - (18,829)
Loss on disposal of assets (861,302) (560)
Total nonoperating revenues (expenses) 320,398 (1,462)
Income (loss) before transfers and capital contributions
Capital grants and contributions
Transfers
Change in net position 198,964 448,776
198,964 448,776
Total net position - beginning, as restated (Note 16) 48,097,429 7,976,948
Total net position - ending $ 48,296,393 $ 8,425,724
The accompanying notes are an integral part of the financial statements.
254
Enterprise Funds
County
Utilities
County
Building
Total
$ - $ 4,673,531 $
32,834,696
32,834,696
8,370,362
14,355,102
14,665,273
37,390,737
(4,556,041)
408,930
912,766
140,334
28,300
(857,620)
(9,321)
623,389
(3,932,652)
6,737,992
85,616
2,890,956
244,771,051
4,673,531
2,137,114
1,686,720
85,104
3,908,938
764,593
23,869
78,740
102,609
867,202
867,202
6,058,288
Internal
Service Funds
22,664,072 $ 28,530,876
32,834,696
55,498,768
11,722,355
31,147,985
16,091,072
58,961,412
(3,462,644)
632,784
389,259
912,766
828,107
29,650
(876,449)
(871,183)
1,044,934
(2,417,710)
6,737,992
85,616
4,405,898
306,903,716
28,530,876
12,125,310
24,789,600
183,578
37,098,488
(8,567,612)
691
327,510
698,679
780
(2,050)
1,025,610
(7,542,002)
41,367
(7,500,635)
31,062,280
$ 247,662,007 $ 6,925,490 $ 311,309,614 $ 23,561,645
Indian River County, Florida
Board of County Commissioners
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2018
Enterprise Funds
Solid Waste
Disposal Golf
District Course
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $ 15,295,738 $ 3,233,432
Cash paid to suppliers for goods and services (13,068,256) (2,001,157)
Cash paid to employees for services (652,889) (567,753)
Net cash provided by (used in) operating activities 1,574,593 664,522
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Transfers - -
Operating grants 3,923 6,209
Insurance recoveries 4,994 1,708
Net cash provided by (used in) noncapital financing activities 8,917 7,917
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Principal payments - bonds/notes
Interest paid on long-term debt
Payments on advances from other funds
Proceeds from sales of capital assets
Purchase of capital assets
Bond paying agent and arbitrage fees
Capital grants and contributions
Net cash provided by (used in) capital and related financing activities
(1,278,180)
(18,829)
(338,927)
1,350
(149,398)
(1,278,180) (505,804)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest and dividends on investments 274,236 6,332
Net cash provided by investing activities 274,236 6,332
Net increase (decrease) in cash and investments
Cash and investments at beginning of year
Cash and investments at end of year
579,566 172,967
31,323,949 128,580
$ 31,903,515 $ 301,547
Classified as:
Current assets $ 17,625,094 $ 301,547
Restricted assets 14,278,421
Totals $ 31,903,515 $ 301,547
The accompanying notes are an integral part of the financial statements.
256
Enterprise Funds
County
Utilities
$ 32,139,296
(14,186,342)
(8,644,770)
County
Building
$ 4,673,453
(1,597,324)
(2,174,845)
9,308,184 901,284
85,616 -
75,967 -
161,583
(3,107,000)
(866,899)
28,300
(6,191,073)
(1,550)
4,044,180
(6,094,042) (15,811)
785,536 66,122
785,536 66,122
4,161,261 951,595
83,428,404 7,008,662
Total
$ 55,341,919
(30,853,079)
(12,040,257)
12,448,583
85,616
86,099
6,702
178,417
(3,107,000)
(885,728)
(338,927)
29,650
(7,634,462)
(1,550)
4,044,180
(7,893,837)
1,132,226
1,132,226
5,865,389
121,889,595
$ 87,589,665 $ 7,960,257 $
127,754,984
$ 47,313,920 $ 7,960,257 $
40,275,745 -
73,200,818
54,554,166
$ 87,589,665 $ 7,960,257 $
127,754,984
Continued
Internal
Service Funds
$ 27,207,419
(24,212,062)
(3,638,81
(643,455)
41,367
698,679
740,046
780
(137,631)
(136,851)
272,469
272,469
232,209
29,581,186
$ 29,813,395
$ 29,813,395
$ 29,813,395
Indian River County
Board of County Commissioners
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2018
RECONCILIATION OF NET OPERATING INCOME (LOSS) TO NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
Operating income (loss)
Adjustments to reconcile operating income to net cash
provided by operating activities:
Enterprise Funds
Solid Waste
Disposal Golf
District Course
$ (121,434) $ 450,238
Depreciation 1,106,933 233,762
(Increase) decrease in assets:
Accounts receivable 539,774 8,486
Due from other governments (8,881) (1,298)
Inventories - 31,635
Liens receivable
Impact fees receivable
Special assessments receivable
Prepaid items - 1,190
Increase (decrease) in liabilities:
Accounts payable (20,177) (86,098)
Due to other governments - 4,758
Retainage payable -
Customer deposits (9,183)
Closure and maintenance costs payable 105,442
Net pension liability 29,136 25,251
Net OPEB liability (56,606) (16,649)
Unearned revenues 9,731
Claims payable -
Accrued compensated absences 9,589 3,516
Total adjustments
Net cash provided by (used in) operating activities
NONCASH CAPITAL AND RELATED
FINANCING ACTIVITIES
1,696,027 214,284
$ 1,574,593 $ 664,522
Change in fair value of investments $ 10,956 $ 295
Capital grants and contributions $ - $
Capital assets purchased through accounts payable $ 317,552 $
The accompanying notes are an integral part of the financial statements.
258
Enterprise Funds
County County
Utilities Building
Total
Internal
Service Funds
$ (4,556,041) $ 764,593 $ (3,462,644) $ (8,567,612)
14,665,273 85,104 16,091,072 183,578
36,402 (78) 584,584 (1,226,950)
3,164 - (7,015) (96,507)
(343,609) (311,974) (52,533)
(1,477,011) - (1,477,011)
281,399 - 281,399
389,960 - 389,960
59,715 45,299 106,204 8,415,793
372,312 36,916 302,953 543,807
4,405 7,181 16,344
75,937 - 75,937
70,686 - 61,503
105,442
392,845 107,802 555,034 73,324
(704,797) (167,598) (945,650) (125,421)
- - 9,731 -
- - - 184,000
37,544 22,065 72,714 25,066
13,864,225
136,691 15,911,227 7,924,157
$ 9,308,184 $ 901,284 $ 12,448,583 $ (643,455)
$ 47,843 $ 4,576 $ 63,670 $ 18,624
$ 2,693,813 $ - $ 2,693,813 $
$ 1,020,844 $ - $ 1,338,396 $
Indian River County, Florida
Board of County Commissioners
Statement of Fiduciary Net Position
Fiduciary Funds
September 30, 2018
Agency
Other
Postemployment
Benefits Trust
ASSETS
Cash $ 2,482,795 $ 49,235
Investments, at fair value:
Index funds - 14,805,055
U.S. government securities funds - 11,734,781
Primary money market fund 2,931,777
Total assets $ 2,482,795 $ 29,520,848
LIABILITIES
Due to other governments 608,721
Other deposits held in escrow 1,874,074
Total liabilities $ 2,482,795
NET POSITION
Net position restricted for OPEB 29,520,848
Total net position $ 29,520,848
The accompanying notes are an integral part of the financial statements.
260
Indian River County, Florida
Board of County Commissioners
Statement of Changes in Fiduciary Net Position
Other Postemployment Benefits Trust Fund
For the Year Ended September 30, 2018
ADDITIONS
Employer contributions $ 2,461,947
Net appreciation in fair value of investments 1,426,792
Less investment expense (1,252)
Net investment income 1,425,540
Total additions 3,887,487
DEDUCTIONS
Benefit payments
Total deductions
2,037,101
2,037,101
Change in net position 1,850,386
Net position - beginning
Net position - ending
27,670,462
$ 29,520,848
The accompanying notes are an integral part of the financial statements.
261
262
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2018
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.
263
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2018
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.
264
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2018
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
B. Fund Financial Statements — Continued
Because of their spending measurement focus, expenditure recognition for governmental fund types
excludes amounts represented by non-current liabilities. Since they do not affect net current assets, such
long-term amounts are not recognized as governmental fund type expenditures or fund liabilities.
Amounts expended to acquire capital assets are recorded as expenditures in the year that resources were
expended, rather than as fund assets. The proceeds of long-term debt are recorded as an other financing
source rather than as a fund liability. Debt service expenditures, as well as expenditures related to
compensated absences and claims and judgments, are recorded only when payment is due.
Proprietary Funds
The Board's enterprise and internal service funds are proprietary funds. In the fund financial statements,
proprietary funds are presented using the accrual basis of accounting. Revenues are recognized when
they are earned and expenses are recognized when the related goods or services are delivered. In the
fund financial statements, proprietary funds are presented using the economic resources measurement
focus. This means that all assets, deferred outflows of resources, liabilities, and deferred inflows of
resources (whether current or non-current) associated with their activity are included on their balance
sheets. Proprietary fund type operating statements present increases (revenues) and decreases (expenses)
in total net position.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Proprietary
fund operating revenues, such as charges for services and premiums charged to the Board and
employees under various insurance programs, result from exchange transactions associated with the
principal activity of the fund. Exchange transactions are those in which each party receives and gives up
essentially equal values. Non-operating revenues, such as subsidies, taxes, and investment earnings
result from 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.
265
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2018
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.
266
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2018
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 Cooperative Liquid Assets Securities System (FLCLASS) investment pool. Investments are
reported at fair value based upon the average price obtained from three brokers/dealers. The FLCLASS
values are measured at the net asset value per share determined by the pool. Refer to Note 2C,
Investments, for further information on individual investments.
267
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2018
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, 2018, the allowance for water and sewer was $424,493
and for ambulance services was $514,472. No other allowances for doubtful accounts are maintained
since other accounts receivable are considered collectable as reported at September 30, 2018.
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, 2018.
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.
268
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2018
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
269
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2018
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. Also, there are
deferred outflows and inflows items related to OPEB as calculated in accordance with GASB Statement
75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. Further
information and detail on the composition of these items is discussed in Note 12 and 13.
270
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2018
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. Other Postemployment Benefits Trust Fund (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows
of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the
Board's Retiree Benefits Plan and additions to/deductions from the Board's fiduciary net position have
been determined on the same basis as they are reported by the Board. For this purpose, the Board
recognizes benefit payments when due and payable in accordance with the benefit terms. Investments
are reported at fair value, except for money market investments that have a maturity at the time of
purchase of one year or less, which are reported at cost.
M. New Accounting Pronouncement
The Board implemented Governmental Accounting Standards Board (GASB) Statement No. 75,
Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. This
statement's objective was to improve accounting and financial reporting by state and local governments
for postemployment benefits (OPEB) other than pensions. It also improves information provided by
state and local governmental employers about financial support for OPEB that is provided by other
entities.
N. 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.
271
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2018
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
O. 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.
P. 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.
Q. 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.
R. 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, 2018.
272
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2018
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
S. 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.
273
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2018
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, 2018, the carrying value of the Board's deposits was $86,097,448 and the bank
balance was $88,341,329. 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, 2018, accrued interest for the Board's portfolio totaled $855,789 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.
274
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2018
NOTE 2 - CASH AND INVESTMENTS - Continued
C. Investments
As of September 30, 2018, the Board had the following investments:
Investment Type
Fixed Rate Debt Instruments:
Weighted
Average
Maturity Portfolio Credit
Fair Value In Years Percentage Risks*
U.S. Treasuries $ 87,979,650 0.99 30.99 % N/A
U.S. Agencies:**
Federal Farm Credit Bureau 52,160,396 1.45 18.37 AA+
Federal Home Loan Bank 56,369,577 1.04 19.86 AA+
Federal Home Loan Mortgage 38,603,160 1.08 13.60 AA+
Federal National Mortgage Assoc. 30,526,573 1.22 10.75 AA+
Other Market Rate Investments:
Florida CLASS 14,091,026 0.19 4.96 AAAm
W&S Sinking Fund Reserve:
U.S. Treasuries 4,157,264 0.97 1.47 N/A
Total Fair Value $ 283,887,646 100.00 %
Weighted Average Maturity of Investments 1.07
* Ratings based upon Standard and Poor's
** 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. The Board's fair value measurements for U.S.
Treasuries and U.S. Agencies are categorized as Level 2 and are valued by the Board's investment
brokers using independent pricing services based on the type of asset. The pricing services may use
valuation models or matrix pricing, which consider benchmark yields, reported trades, broker/dealer
quotes, benchmark securities, bids or offers, and reference data.
275
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2018
NOTE 2 - CASH AND INVESTMENTS - Continued
C. Investments — Continued
The Board's investments in the Florida Cooperative Liquid Assets Securities Systems, an external local
government investment pool organized under the laws of the State of Florida, is presented at Net Asset
Value (NAV), which reflects fair value. The objectives of the FLCLASS are to generate investment
income while maintaining safety and liquidity.
Interest Rate Risk
The Board's investment policy limits interest rate risk by attempting to match investment maturities with
known cash needs and anticipated cash flow requirements. All investments must have stated maturities
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.
276
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2018
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, 2018, 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, 2018 was $2,461,947. The cash balance in the OPEB Trust at September 30, 2018 was
$49,235. 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, 2018, the annual money -weighted rate of return on investments,
net of investment expense, was 4.95%. The money -weighted rate of return expresses investment
performance, net of investment expense, adjusted for the changing amounts actually invested.
277
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2018
NOTE 2 - CASH AND INVESTMENTS - Continued
D. OPEB Trust - Continued
As of September 30, 2018, the OPEB Trust had the following investments:
Investment Type
Vanguard 500 Index
Vanguard All World Ex -US
Vanguard Mid Cap Index
Vanguard Small Cap Index
Vanguard Short Term Treasury
Vanguard Intermediate Treasury
Vanguard Prime Money Market
Weighted
Average
Maturity Portfolio
Fair Value In Years Percentage
$ 6,633,064
5,989,895
1,457,015
725,081
8,805,132
2,929,649
2,931,777
Total Fair Value $ 29,471,613
N/A
N/A
N/A
N/A
2.20
6.00
0.13
22.51 %
20.32
4.94
2.46
29.88
9.94
9.95
100.00 %
The Board has the following recurring fair value measurements for investments in the OPEB Trust as of
September 30, 2018:
Index Funds
U.S. Government Securities Funds
Money Market Fund
Total investments
Level 1
$ 14,805,055
11,734,781
2,931,777
$ 29,471,613
Level 2
Level 3
Total
- $ 14,805,055
11,734,781
- 2,931,777
- $ 29,471,613
Investments classified as Level 1 of the fair value hierarchy are valued using quoted prices in active
markets from the Board's custodian bank.
278
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2018
NOTE 3 - PROPERTY TAX REVENUES
Taxable values for all property are established as of January 1, which is the date of lien, for the fiscal
year starting October 1. Property tax revenues recognized for the 2018-2019 fiscal year were levied in
October 2018. All taxes are due and payable on November 1 or as soon as the assessments roll is
certified and delivered to the Tax Collector. Discounts are allowed for early payment at the rate of 4% in
November, 3% in December, 2% in January, and 1% in February. Taxes paid in March are without
discount. All unpaid taxes become delinquent as of April 1. Virtually all unpaid taxes are collected via
the sale of tax certificates on or prior to June 1; therefore, there were no material taxes receivable at
fiscal year end.
NOTE 4 — CAPITAL ASSETS
A. Governmental Fund Type Capital Assets
A summary of changes in the Governmental fund type capital assets is as follows:
Buildings
And Construction
Land Improvements Equipment Intangibles Infrastructure In Progress Total
Balance 10/1/2017 $ 134,491,628 $ 239,895,310 $ 44,348,479 $ 4,383,280 $ 417,293,138 $ 30,458,691 $ 870,870,526
Additions 473,223 6,935,922 6,498,099 74,511 3,388,737 15,519,737 32,890,229
Deletions (183,196) (2,048,038) (389,226) (9,955,723) (12,576,183)
Balance 9/30/2018 $ 134,781,655 $ 246,831,232 $ 48,798,540 $ 4,068,565 $ 420,681,875 $ 36,022,705 $ 891,184,572
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.
279
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2018
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:
Balance 10/1/2017
Additions
Deletions
Less:
Accumulated Depreciation
Balance 9/30/2018
Land
$ 21,556,248
(1,761,710)
19,794,538
$ 19,794,538
Internal Service Funds
Buildings
And
Improvements Equipment
$ 458,995,402 $ 17,712,914
3,188,965 1,845,292
(1,080) (1,272,359)
462,183,287 18,285,847
(281,721,926) (14,032,535)
Intangibles
$ 2,995,033
146,045
3,141,078
(1,146,269)
$ 180,461,361 $ 4,253,312 $
Construction
In Progress
$ 3,572,669
6,830,602
(1,178,748)
Total
$ 504,832,266
12,010,904
(4,213,897)
9,224,523 512,629,273
(296,900,730)
1,994,809 $ 9,224,523 $ 215,728,543
A summary of changes in the Internal Service fund type capital assets is as follows:
Buildings
And
Improvements Equipment
Balance 10/1/2017 $
Additions
Deletions
Less:
Accumulated Depreciation
Balance 9/30/2018
13,815 $ 1,026,146
20,137
(81,083
13,815 965,200
(4,576)
Intangibles
$ 1,921,118
117,494
2,038,612
(786,789) (1,627,594)
9,239 $ 178,411
NOTE 5 — RESTRICTED CASH AND INVESTMENTS
Sinking funds
Renewal and
replacement
Customer deposits
Capital construction
Closure and maintenance cost
Total
Solid Waste
Disposal
District
$ 411,018
County
Utilities
Total
$ 2,961,079
137,631
(81,083)
3,017,627
(2,418,959)
$ 598,668
Total
- $ 4,488,537 $
163,243
14,115,178
$ 14,278,421
3,485,928
3,158,933
29,142,347
$ 40,275,745
280
4,488,537
3,485,928
3,322,176
29,142,347
14,115,178
$ 54,554,166
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2018
NOTE 6 - INTERFUND BALANCES
Interfund balances at September 30, 2018, consisted of the following:
Receivable Fund
Payable Fund Amount
General Fund Nonmajor Governmental Funds $ 60,000
General Fund Golf Course Enterprise Fund 340,255
$ 400,255
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 2019. 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, 2018, consisted of the following:
Receivable Fund Payable Fund Amount
General Fund
Golf Course Fund $ 571,994
This amount is considered a long-term advance between major funds expected to be paid in fiscal years
2020 and 2021. This amount has been presented as nonspendable on the General Fund Balance Sheet.
281
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2018
NOTE 7 - INTERFUND TRANSFERS
Interfund transfers for the year ended September 30, 2018, consisted of the following:
Transfers In:
Nonmajor
Transportation Governmental
Fund Funds
Transfers Out:
Internal
Utilities Service
Fund Funds
Total
General Fund $ 10,228,276 $ 199,633 $ - $ 41,367 $ 10,469,276
Transportation Fund - 85,616 85,616
Optional Sales Tax Fund 125,000 - 125,000
Total $ 10,228,276 $ 324,633 $ 85,616 $ 41,367 $ 10,679,892
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 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.
282
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2018
NOTE 8 — ACCOUNTS PAYABLE
Accounts payable at September 30, 2018, were as follows:
Governmental Funds:
General
Impact Fees
Secondary Roads Construction
Transportation
Emergency Services
Optional Sales Tax
Other Governmental
Total Governmental Funds
Proprietary Funds:
Payable from current assets:
Solid Waste
Golf Course
Utilities
Building
Other Proprietary
Payable from restricted assets:
Utilities
Total Proprietary Funds
Vendors
$ 2,163,510
134,556
1,046,845
407,553
212,122
3,537,879
528,266
$ 8,030,731
Salaries and
Benefits
$ 471,863
5,087
14,346
307,760
955,385
36,578
$ 1,791,019
$ 1,231,980 $
57,799
2,095,701
58,420
785,641
827,641
Total
Accounts
Payable
$ 2,635,373
139,643
1,061,191
715,313
1,167,507
3,537,879
564,844
$ 9,821,750
23,471 $ 1,255,451
19,253 77,052
302,749 2,398,450
88,272 146,692
58,030 843,671
- 827,641
$ 5,057,182 $ 491,775 $ 5,548,957
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, 2018 were $235,130 for
governmental funds and $36,341 for proprietary funds.
The Board has not engaged in any short-term debt activity during fiscal year 2018 other than that listed
in Note 6.
283
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2018
NOTE 9 - LONG-TERM LIABILITIES
A. Governmental Long -Term Debt
Changes in Long -Term Liabilities
Balance Balance
October 1, September 30,
2017 Additions Deletions 2018
Accrued Compensated Absences: $ 4,004,783 $ 2,628,234 $ 2,502,104 $ 4,130,913
Bonds Payable:
Spring Training Facility
Revenue Bonds - 2001 Series 6,215,000 - 550,000 5,665,000
Notes Payable:
Limited General Obligation
Refunding - 2015 Series 15,653,000 - 4,158,000 11,495,000
Grand Total $ 25,872,783 $ 2,628,234 $ 7,210,104 $ 21,290,913
Of the $4,130,913 liability for accrued compensated absences, management estimates that $2,375,321
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).
284
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2018
NOTE 9 - LONG-TERM LIABILITIES — Continued
A.
Governmental Long -Term Debt - Continued
Annual Debt Service Payments
The annual debt service payments for bonds and notes outstanding at September 30, 2018, are as
follows:
Fiscal Year
Ending
September 30
2019
2020
2021
2022
2023
2024-2028
2029-2031
Total
Less:
Current portion
Total
Spring Training Facility
Revenue Bonds
Series 2001
Principal Interest
$ 585,000
615,000
650,000
305,000
320,000
1,870,000
1,320,000
$ 287,875
257,163
224,875
190,750
175,500
619,250
132,250
Limited General
Obligation Refunding Note
Series 2015
Principal Interest
$ 4,227,000
4,298,000
2,970,000
$ 190,817
120,649
49,302
5,665,000 1,887,663 11,495,000 360,768
585,000 4,227,000
$ 5,080,000 $ 1,887,663 $ 7,268,000 $ 360,768
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
285
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2018
NOTE 9 - LONG-TERM LIABILITIES - Continued
A. Governmental Long -Term Debt — Continued
Spring Training Facility Revenue Bonds - Continued
3. Eighty-six percent (86%) of the Local Government Half -Cent Sales Tax distributed to the Board,
pursuant to Chapter 218, part VI, Florida Statutes.
The foregoing is collectively referred to herein as the "pledged revenues". These revenue streams are
pledged for the remaining term of the bonds.
The Fourth Cent Tourist Development Tax and the Local Government Half -Cent Sales Tax pledged to
the payment of debt service on the Series 2001 bonds are automatically released as pledged revenue for
the Series 2001 bonds immediately following the April 1, 2021 principal payment on the Series 2001
bonds.
The current principal and interest payments of $852,312 represent 8.72% of total pledged revenues. All
three pledged revenue sources totaled $9,777,026 for the current fiscal year. The Board applied 100%
of the state subsidy, 46% 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 $7,552,663.
Bonds Issued - At September 30, 2018, Spring Training Facility Revenue Bonds consisted of the
following:
Outstanding at
Interest Rates September 30,
Description and Date Maturity Issue 2018
Spring Training Facility 3.30%-5.25%
Revenue Bonds, 2001 Series 4/1 and 10/1 2031 $ 16,810,000 $ 5,665,000
286
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2018
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, 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.
287
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2018
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 $4,636,034 of which 100% is pledged for payment of this note and the 2006 bond. Total principal
and interest paid on this note was $4,417,840 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
Balance
October 1,
2017 Additions Deletions
$ 1,069,942
5,206,000
Bonds Payable:
Water & Sewer Revenue
Refunding Series 2009 15,620,000
Grand Total $ 21,895,942
288
Balance
September 30,
2018
$ 847,322 $ 749,542 $ 1,167,722
- 1,007,000
4,199,000
- 2,100,000 13,520,000
$ 847,322 $ 3,856,542 $ 18,886,722
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2018
NOTE 9 - LONG-TERM LIABILITIES - Continued
B.
Proprietary Funds Long -Term Debt - Continued
Annual Debt Service Payments
The annual debt service payments for bonds and notes outstanding at September 30, 2018 are as follows:
Fiscal Year
Ending
September 30
2019
2020
2021
2022
2023
2024
Total
Less:
Current portion
Add:
Unamortized
bond premium
Total
Water and Sewer
Revenue Refunding
Note Series 2015
Principal Interest
$ 1,025,000
1,042,000
1,058,000
1,074,000
$ 69,284
52,371
35,178
17,721
4,199,000 174,554
1,025,000
Water and Sewer
Revenue Refunding
Bonds Series 2009
Principal Interest
$ 2,205,000
2,315,000
2,430,000
2,550,000
2,680,000
1,340,000
$ 676,000
565,750
450,000
328,500
201,000
67,000
13,520,000 2,288,250
2,205,000
1,030,183
$ 3,174,000 $ 174,554 $ 12,345,183 $ 2,288,250
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, 2018 is $326,757 and is reflected as a deferred outflow of
resources on the Statement of Net Position.
289
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2018
NOTE 9 - LONG-TERM LIABILITIES - Continued
B. Proprietary Funds Long -Term Debt - Continued
Water and Sewer Revenue Refunding Note, Series 2015 - Continued
Pledge of Revenues — The note is collateralized, for the remaining term of the note, by a pledge of all net
revenues derived from the operation of the system, certain surcharges, and special assessments. Annual
principal and interest payments of $1,092,899 represent approximately eight percent of net revenues of
$14,510,727 of the utility system. The total principal and interest remaining to be paid on the 2015 note
is $4,373,554. 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, 2018 is $535,967 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
percent of net revenues of $14,510,727 of the utility system. The total principal and interest remaining to
be paid on the bonds is $15,808,250.
Rate Covenant — Net revenues shall be sufficient to pay 100% of reserve and 120% of current year
principal and interest requirements.
290
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2018
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, 2018, the revenue refunding bonds consisted of the following:
Description
Outstanding at
Interest Rates September 30,
and Date Maturity Issue 2018
Water and Sewer 4-5%
Revenue Refunding Bonds, 3/1 and 9/1
Series 2009
2024 $ 26,370,000 $ 13,520,000
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.
291
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2018
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 $5.7 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:
Closure Costs
Class I - Segment III, Cell I
Construction and Demolition
Capacity Estimated
Used Closing
59%
91%
Amount
2021 $ 12,437,389
2027 884,866
Post -closure Costs
Class I - Segments I and II N/A N/A 763,435
Construction and Demolition N/A N/A 29,488
Total account balance at 9/30/18 $ 14,115,178
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, 2018, $14,091,026 was on deposit at the Florida Cooperative Liquid Assets Securities
System (FLCLASS) and $24,152 was on deposit in the Board's operating account.
A summary of changes in the landfill closure liability account is as follows:
Balance Balance
10/1/2017 Deposits Withdrawals 9/30/2018
Closure and long-term care costs $ 14,009,736 $ 1,270,000 $ (1,164,558) $ 14,115,178
Of the $14,115,178 liability for closure and long-term care costs, management estimates that $8,506,674
will be due and payable within one year.
292
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2018
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 $2,121,900 at September 30, 2018 for the two sites. Of the $2,121,900 liability for
pollution remediation, management estimates that $92,647 will be due and payable within one year. 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 $2,110,000 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 $11,900 and will be paid from the
General Fund.
Total governmental funds liability: $2,121,900
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.
293
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2018
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.
294
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2018
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, 2018 were:
Regular Class 8.26%, Special Risk 24.50%, Special Risk Administrative Support 34.98%, Senior
Management 24.06%, DROP 14.03%, and Elected Official Class 48.70%. 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.
295
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2018
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,
2018, was $5,305,879. Employee contributions for September 30, 2018 were $1,018,802. 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, 2018, the Division of Retirement calculated the
Board's liability of $55,071,659 for the FRS plan for its proportionate share of the net pension liability.
The net pension liability was measured as of June 30, 2018, and the total pension liability used to
calculate the net pension liability was determined by an actuarial valuation as of July 1, 2018. 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, 2018, the Board's proportionate share was 0.182838% for the FRS
Pension Plan. This was a decrease of 0.004119% from its proportionate share measured as of June 30,
2017.
For the year ended September 30, 2018, the Board's calculated total increase of actuarially determined
pension expense was $5,639,735. Of this amount, the Board recognized $644,622 in the enterprise
funds and $85,160 in the internal service funds. In addition, the Board's calculated deferred outflows of
resources and deferred inflows of resources related to pensions from the following sources were:
Deferred Outflows Deferred Inflows
Description of Resources of Resources
Differences between expected and
actual experience $ 4,665,397 $ 169,332
Changes in assumptions 17,994,740
Net difference between projected and actual
earnings on pension plan investments - 4,254,957
Changes in proportion and differences between
Board contributions and proportionate share of
contributions 2,754,888 1,126,945
Board contributions subsequent to the measure-
ment date 1,281,082 -
Total $ 26,696,107 $ 5,551,234
Deferred outflows related to pensions recognized by enterprise funds were $3,425,620 and $465,902 for
internal service funds. Deferred inflows related to pensions recognized by the enterprise funds were
$900,838 and $118,808 for the internal service funds.
296
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2018
NOTE 12 - RETIREMENT PLAN - Continued
Pension Plan - Continued
The deferred outflows of resources related to pensions totaling $1,281,082 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, 2019. Other amounts reported as deferred outflows of
resources and deferred inflows of resources related to pensions will be recognized in pension expense as
follows:
Amount
Fiscal Year Ending September 30: Recognized
2019
2020
2021
2022
2023
Thereafter
Total
$ 7,696,069
5,252,247
732,317
3,497,309
2,338,507
347,342
$ 19,863,791
Actuarial Assumptions: The total pension liability in the July 1, 2018 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, 2018
June 30, 2018
7.00%
7.00%, 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, 2018 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 2018:
• The long-term expected rate of return, was decreased from 7.10% to 7.00%, and the active member
mortality assumption was updated for the Pension Plan.
297
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2018
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:
Asset Class
Cash
Fixed Income
Global Equity
Real Estate (Property)
Private Equity
Strategic Investments
Total
Assumed inflation -mean
Annual
Target Arithmetic
Allocation Return
1% 2.9%
18% 4.4%
54% 7.6%
11% 6.6%
10% 10.7%
6% 6.0%
100%
Compound
Annual
(Geometric)
Return
2.9%
4.3%
6.3%
6.0%
7.8%
5.7%
Standard
Deviation
1.8%
4.0%
17.0%
11.3%
26.5%
8.6%
2.6% 1.9%
Discount Rate for Pension Plan: The discount rate used to measure the total pension liability was 7.00%.
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.
298
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2018
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 7.00%. Also presented is what
the Board's proportionate share of the FRS plan NPL would be if it were calculated using a discount rate
that is 1% lower or 1% higher than the current rate:
1% Decrease
(6.00%)
Current Discount
Rate (7.00%)
Board's proportionate share of NPL $100,508,087 $55,071,659
1% Increase
(8.00%)
$17,334,019
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.
299
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2018
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, 2018, 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, 2018, 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 $741,374 for the fiscal year ended September 30, 2018.
Pension Liabilities, Pension Expense, and Deferred Outflow of Resources and Deferred Inflow of
Resources Related to HIS Program: At September 30, 2018, the Division of Retirement calculated the
Board's liability of $14,447,109 for its proportionate share of the HIS Program's net pension liability.
The net pension liability was measured as of June 30, 2018, and the total pension liability used to
calculate the net pension liability was determined by an actuarial valuation as of July 1, 2018. At June
30, 2018, the Board's proportional share was 0.136498% for the HIS Program. This was a decrease of
0.000681% from its proportionate share measured as of June 30, 2017.
300
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2018
NOTE 12 - RETIREMENT PLAN - Continued
Retiree Health Insurance Subsidy (HIS Program) - Continued
For the year ended September 30, 2018, the Board's calculated total actuarially determined pension
expense was $667,553. Of this amount, the Board recognized $76,301 in the enterprise funds and
$10,080 in the internal service funds. In addition, the Board's calculated deferred outflows of resources
and deferred inflows of resources related to pensions from the following sources were:
Deferred Outflows Deferred Inflows
Description of Resources of Resources
Differences between expected and actual $ - $ 24,545
experience
Changes in assumptions 1,606,697 1,527,469
Net difference between projected and actual
earnings on pension plan investments 8,720
Changes in proportion and differences between
Board contributions and proportionate share of
contributions 1,024,042 154,036
Board contributions subsequent to the measure-
ment date 170,268
Total
$ 2,809,727 S 1,706,050
The deferred outflows of resources related to the HIS Program totaling $170,268 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, 2019. 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
2019 $ 651,910
2020 649,499
2021 455,018
2022 102,199
2023 (634,378)
Thereafter (290,839)
Total $ 933,409
301
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2018
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, 2018 actuarial
valuation was determined using the following actuarial assumption, applied to all periods included in the
measurement:
Valuation date: July 1, 2018
Measurement date: June 30, 2018
Discount rate: 3.87%
Long-term expected rate of return: N/A
Municipal bond rate: 3.87%
Inflation: 2.60%
Salary increase: 3.25%, average, including inflation
Mortality Generational RP -2000 with Projections Scale BB
Actuarial cost method: Individual Entry Age
The actuarial assumptions that determined the total HIS Program pension liability used in the July 1,
2018 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 2018:
• The municipal rate used to determine the total pension liability was increased from 3.58% to 3.87%
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.
302
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2018
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 3.87%. 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% Decrease Current Discount 1% Increase
(2.87%) Rate (3.87%) (4.87%)
Board's proportionate share of NPL $ 16,454,411 $14,447,109 $ 12,773,907
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.
303
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2018
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, 2018, 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 2017-2018 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 $790,007 for fiscal year ended
September 30, 2018. Employee contributions totaled $185,182 for the same period.
304
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2018
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, 2017 range from $364 for single coverage Medicare participants to $875
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.
305
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2018
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
Hired On or
After 2/1/2006
Retirement Date
Service
Under Age 65
Retiree or Spouse
Medicare Eligible
Before 10/1/2004
No Subsidy
60%*
No Subsidy
**
After 10/1/2004 but on
or before
1/31/2009***
Less than 15
years
No Subsidy
20% Subsidy**
At least 15
years
2% per Year of Service
(maximum of 40%)
Additional 20% Subsidy
(maximum of 60%)**
After 1/31/2009***
Less than 15
years
No Subsidy
No Subsidy
At least 15
years
2% per Year of Service
(maximum of 40%)
Subsidy Ceases****
*60% Subsidy if Medicare Eligible prior to October 1, 2004 or 20% if becoming Medicare Eligible after October
1, 2004
**Additional Subsidy will be paid to Medicare Eligible retirees regardless of which plan they are enrolled in
(County's medical plan or Medicare Advantage Plan) and regardless of whether they become Medicare Eligible
before or after October 1, 2004.
***Employees who commit by June 1, 2008 to retire before January 31, 2009 will receive subsidy as if retired
before June 1, 2008.
****Effective May 1, 2016 and prospectively, subsidy does not cease until both Retiree and Spouse are Medicare
eligible.
306
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2018
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, 2017, the date of the latest actuarial valuation, plan participation consisted of:
Active participants 1,380
Retired participants 558
Total participants 1,938
There are two classes of participants at October 1, 2017:
Regular and senior management 1,248
Special risk 690
Total participants 1.938
Financial statements for the OPEB Trust are included in this report and can be found on pages 260-261.
A separate, stand-alone financial report is not issued by the Board; however, the OPEB Trust
investments can be found in Note 2D.
B. Contributions and 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, 2018, the Board contributed $2 5 million to the qualifying
OPEB Trust. The average employer's contribution was $1,784 per employee, approximately 3.6% of
current payroll. Plan members receiving benefits contributed $2.0 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.
C. Net OPEB Liability
The County's Net OPEB liability was measured as of October 1, 2017 and the total OPEB liability used
to calculate the net OPEB liability was determined by an actuarial valuation as of that date. The
components of the net OPEB liability of the County at September 30, 2018, were as follows:
307
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2018
NOTE 13 — OTHER POSTEMPLOYMENT BENEFITS PLAN (OPEB) — Continued
C. Net OPEB Liability - Continued
Total OPEB liability
Plan fiduciary net position
County's net OPEB liability
$ 32,974,379
(29,520,848)
$ 3,453,531
Plan fiduciary net position as a percentage of the total
OPEB liability 89.53%
D. Actuarial Methods and Assumptions
The total OPEB liability was determined by an actuarial valuation as of October 1, 2017, 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 3.7% to 7.8%, 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
Healthcare Cost Trend Rates
Mortality tables used in the July 1, 2016 actuarial valuation
of the Florida Retirement System. They are based on the
results of a statewide experience study covering the period
2008 through 2013.
Based on the Getzen Model, with trend starting at 7.0% and
gradually decreasing to an ultimate trend rate of 4.39%
(including the impact of the excise tax).
Aging Factors Based on the 2013 SOA Study "Health Care Costs - From
Birth to Death".
308
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2018
NOTE 13 — OTHER POSTEMPLOYMENT BENEFITS PLAN (OPEB) — Continued
D. Actuarial Methods and Assumptions - Continued
Expenses Investment expenses are net of the investment returns;
Administrative expenses are included in the per capita
Other Information:
Notes There were no benefit changes during the year.
E. Changes in the Net OPEB Liability
Balances at 9/30/2017
Changes for the year:
Service cost
Interest
Differences between expected and actual experience
Changes of assumptions and other inputs
Contributions - employer
Net investment income
Benefit payments
Net changes
Balances at 9/30/2018
Increase(Decrease)
Total OPEB
Liability
(a)
$ 41,252,267
498,665
2,443,943
2,762,722
(11,946,117)
(2,037,101)
(8,277,888)
$ 32,974,379
309
Plan
Fiduciary
Net Position
(b)
$ 27,670,462
2,461,947
1,425,540
(2,037,101)
1,850,386
Net OPEB
Liability
(a) -(b)
$ 13,581,805
498,665
2,443,943
2,762,722
(11,946,117)
(2,461,947)
(1,425,540)
(10,128,274)
$ 29,520,848 $
3,453,531
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2018
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 3.83%; and the resulting SDR is 6.00%.
The County has a policy of depositing at least 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:
1% Decrease
5.00%
Sensitivity of Net OPEB Liability
to the Single Discount Rate Assumption
Current Single Discount
Rate Assumption
6.00%
1% Increase
7.00%
$ 6,473,988
$ 3,453,531 $ 768,754
310
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2018
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
1% Decrease
(6% down to 3.39%)
Current Healthcare Cost
Trend Rate Assumption
(7% down to 4.39%)
1% Increase
(8% down to 5.39%)
$ 662,882 $ 3,453,531
$ 6,660,276
H. OPEB Expense and Deferred Outflows and Inflows of Resources Related to OPEB
For the year ended September 30, 2018, the Board recognized OPEB Expense of $298,745. At
September 30, 2018, the Board reported deferred outflows of resources and deferred inflows of
resources related to OPEB from the following sources:
Description
Differences between expected and actual experience
Changes of assumptions
Net difference between projected and actual earnings on
OPEB plan investments
311
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
$ 2,455,753 $
197,946
$ 2,653,699
10,618,771
$ 10,618,771
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2018
NOTE 13 — OTHER POSTEMPLOYMENT BENEFITS PLAN (OPEB) - Continued
H. OPEB Expense and Deferred Outflows and Inflows of Resources Related to OPEB - Continued
Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB
will be recognized in OPEB expense as follows:
Year Ending Net Deferred Outflows
September 30 of Resources
2019 $ (970,890)
2020 (970,890)
2021 (970,890)
2022 (970,892)
2023 (1,020,377)
Thereafter (3,061,133)
Total $ (7,965,072)
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 $766,252 and lease expenditures totaled $102,131 for the
year ended September 30, 2018. The Board also leases other equipment and office facilities as both
lessor and lessee on a month-to-month basis.
A. Future Minimum Lease Receipts
Year Amount
2019 $ 699,312
2020 721,788
2021 678,876
2022 695,360
2023 711,993
2024-2028 2,381,618
2029-2033 1,238,195
2034-2038 586,647
2039-2043 490,192
2044-2047 225,167
Total future minimum receipts: $ 8,429,148
312
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2018
NOTE 14 - OPERATING LEASES - Continued
A. Future Minimum Lease Receipts - Continued
The property being leased is reported in the financial statements of the County and has a cost of
$33,928,527, and a carrying value of $23,503,799. Current year depreciation on property being leased is
$599,980.
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, 2018:
Year Amount
2019 $ 88,380
2020 13,500
2021 13,500
2022 1,500
2023 1,500
2024-2028 7,500
2029-2033 7,500
2034-2038 6,900
2039-2043 4,500
2044-2048 4,200
2049-2053 2,100
2054-2058 1,500
2059-2063 1,500
2064-2068 1,500
2069-2073 1,500
2074-2076 900
Total future minimum lease payments: $ 157,980
313
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2018
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.
314
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2018
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, 2018, reserve amounts for those funds were:
Budget
Disaster Relief Stabilization
Total
General Fund $ 6,350,000 $ 6,350,000 $ 12,700,000
Transportation Fund 900,000 900,000 1,800,000
Emergency Services District Fund 2,000,000 2,000,000 4,000,000
Total
$ 9,250,000 $ 9,250,000 $ 18,500,000
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 Federal/State Grants Fund, a nonmajor Governmental Fund, had a deficit in fund balance of $2,400
at September 30, 2018. This deficit will be eliminated by grant proceeds in fiscal year 2019.
315
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2018
NOTE 16 - NET POSITION
Restatement of Proprietary Funds Beginning Net Position
The beginning net position at October 1, 2017 of the Board proprietary funds was decreased due to the
implementation of GASB Statement No. 75 Accounting and Financial Reporting for Postemployment
Benefits Other Than Pensions (see Board Note 1M for further explanation). The proprietary funds
beginning net position has been adjusted as follows:
Fund
Solid Waste Disposal District
Golf Course
Utilities
Building
Internal Service Funds
Total
Original 10/1/2017
Net Position
$ 48,212,270
8,010,724
246,200,929
6,398,306
31,316,731
$ 340,138,960
NOTE 17 - RISK MANAGEMENT
GASB 75
Adjustment
$ (114,841)
(33,776)
(1,429,878)
(340,018)
(254,451)
$ (2,172,964)
General Liability, Property, Worker's Compensation and Medical
Restated 10/1/2017
Net Position
$ 48,097,429
7,976,948
244,771,051
6,058,288
31,062,280
$ 337,965,996
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:
10/01/14 to
9/30/2015
Worker's Compensation $
General Liability
Auto Liability
Property Damage
Error or Omissions
Annual Aggregate
Liquor Liability
750,000
200,000
200,000
200,000
200,000
2,000,000
1,000,000
10/01/15 to 10/01/16 to
9/30/2016 9/30/2017
$ 650,000
200,000
200,000
200,000
200,000
2,000,000
N/A
316
10/01/17 to
9/30/2018
$ 650,000
200,000
200,000
200,000
200,000
2,000,000
N/A
$ 650,000
200,000
200,000
200,000
200,000
2,000,000
N/A
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2018
NOTE 17 - RISK MANAGEMENT - Continued
General Liability, Property, Worker's Compensation and Medical - Continued
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 $1,685 in
fiscal year 2018, three workers compensation reimbursements totaling $37,643 in fiscal year 2017, and
two workers compensation reimbursements totaling $49,222 in fiscal year 2016.
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 2018, the County was approved by the insurance carriers to receive approximately $1.03
million in insurance recoveries related to Hurricane Irma 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 $300,000 per occurrence. The Board has purchased a reinsurance policy
to cover claims in excess of these limits. There were eleven medical claim reimbursements totaling
$471,549 in excess of the $300,000 limit for fiscal year 2018. In fiscal year 2017 there were three
medical claim reimbursements totaling $61,593 and in fiscal year 2016 there were none.
The claims liability of $8,439,000 reported at September 30, 2018, 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, $2,530,000 will be liquidated over the next
twelve months.
317
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2018
NOTE 17 - RISK MANAGEMENT - Continued
General Liability, Property, Worker's Compensation and Medical — Continued
Changes in the fund's claims liability amount during the current and prior three fiscal years are as
follows:
2014-2015
2015-2016
2016-2017
2017-2018
Balance at
Fiscal Year
Beginning
$ 8,226,545
8,177,520
8,512,520
8,255,000
Claims
and Changes
in Estimates
$ 17,188,927
17,953,550
16,364,331
21,400,694
Claims
Payments
$ (17,237,952)
(17,618,550)
(16,621,851)
(21,216,694)
Balance
at Fiscal
Year End
$ 8,177,520
8,512,520
8,255,000
8,439,000
Included in the charges to other funds is an amount to fund future catastrophic losses not actuarially
determined; and at September 30, 2018, unrestricted net position of $22,857,178 has been designated for
this purpose. The Board has elected to accrue the larger of the discounted liability or undiscounted
liability. At September 30, 2018, the undiscounted liability was the greater of the two amounts. The
discount rate used in the calculation was 2%.
NOTE 18 - COMMITMENTS AND CONTINGENCIES
A. Litigation
The Board is involved in litigation regarding a zoning dispute and other matters, and may be required to
pay damages at a future date. While the ultimate amount of damages is currently unknown,
management has estimated that the amount is likely to equal or exceed $537,000. Accordingly,
management has recorded an estimated liability in that amount in the financial statements.
Various other 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.
318
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2018
NOTE 18 - COMMITMENTS AND CONTINGENCIES - Continued
B. Contracts and Other Commitments
The Board has various contracts and commitments outstanding at September 30, 2018. 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 resurfacing and shoulder widening from Myrtle
Street to 125th Avenue, Courthouse renovations, 45th Street beautification - Phase II, beach profile
surveys and monitoring, several conservation area improvements as well as a variety of other road
paving and drainage projects. In the Capital Projects Fund, contracts are for roof replacements at the
jail, health department and Sebastian Corners, the Osprey Acres floway and nature preserve, P25 radio
system migration project, 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, Countywide meter replacement program, landfill closure,
expansion & gas system, and various other water and sewer projects. In the Internal Service Funds,
contracts are for GIS oblique aerial imagery acquisition.
A summary of these projects at September 30, 2018, is as follows:
Total
Contract Price
Total Paid as of
September 30, 2018
Remaining
Balance at
September 30, 2018
General $ 1,228,107 $ (551,378) $ 676,729
Special Revenue 11,716,034 (5,249,011) 6,467,023
Capital Projects 19,358,468 (11,532,277) 7,826,191
Enterprise 30,883,618 (10,661,789) 20,221,829
Internal Service 345,933 (230,622) 115,311
Total $ 63,532,160 $ (28,225,077) $ 35,307,083
C. Grants
Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor
agencies. If any expenditures are disallowed as a result of these audits, the claims for reimbursement to
the grantor agency would become a liability of the Board. In the opinion of management, any such
adjustments would not be significant.
319
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2018
NOTE 19 - SUBSEQUENT EVENTS
On December 18, 2018 the Board approved a new lease agreement with Major League Baseball (MLB)
for the Historic Dodgertown facility. This 11 year agreement included repairs and improvements to be
completed by both the Board and MLB. In addition, the Board will fund $800,000 per year into the
Capital Reserve Account for the first 5 years of the agreement, and then $400,000 per year for the
remainder of the term. On January 22, 2019, the Board approved a partial payoff of the Series 2001
Spring Training Bonds in the amount of $1,125,000 with Fourth Cent Tourist Tax reserves. This partial
payoff eliminated the need to utilitze the Fourth Cent Tourist Development Tax for debt service
payments. Future debt service payments will be funded from the State of Florida spring training facility
payments. In February 2019, the City of Vero Beach agreed to sell the former Dodgertown Golf Course
property to the Board for $2,450,000. The property will be used for future anticipated expansions and
parking needs.
320
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Rehmann Robson
5070 North Highway AIA,
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Vero Beach, FL 32963
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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 AUDITINGSTANDARDS
March 5, 2019
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, 2018, which
collectively comprise the Board's fund financial statements and have issued our report thereon dated
March 5, 2019.
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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Indian River Board, Florida
March 5, 2019
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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322
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MANAGEMENT LETTER
March 5, 2019
The Honorable Board of County Commissioners
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 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, 2018, and have issued our report thereon dated March 5, 2019.
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 5, 2019, 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
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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Indian River County, Florida
March 5, 2019
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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INDEPENDENT ACCOUNTANTS' REPORT
March 5, 2019
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, 2018.
Management's Responsibility
Management is responsible for compliance with those requirements.
Independent Accountants' Responsibility
Our responsibility is to express an opinion on the Board's compliance with those requirements based on
our examination. Our examination was conducted in accordance with attestation standards established
by the American Institute of Certified Public Accountants. Those standards require that we plan and
perform the examination to obtain reasonable assurance about whether the Board is in compliance with
specified requirements established by Florida Statute and performing such procedures as we considered
necessary in the circumstances.
We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for
our opinion. Our examination does not provide a legal determination on the Board's compliance with
specified requirements.
Opinion
In our opinion, the Board complied, in all material respects, with the aforementioned requirements for
the year ended September 30, 2018.
Purpose of this Report
This report is intended solely for the information 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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CPAs & Consultants Wealth Advisors Corporate Investigators
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CLERK OF THE CIRCUIT COURT AND
COMPTROLLER
327
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INDEPENDENT AUDITORS' REPORT
March 5, 2019
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 AIA,
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, 2018, 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.
Rehmann is an independent member of Nexia International.
CPAs & Consultants Wealth Advisors Corporate Investigators
328
A member of
ik
International
The Honorable Jeffrey R. Smith
Clerk of the Court and Comptroller
March 5, 2019
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, 2018 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, 2018, 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 5, 2019,
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.
-4-11t44,g4cX514ryt, LLC
329
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Balance Sheet
Governmental Funds
September 30, 2018
Total
Nonmajor Fund Governmental
General Special Revenue Funds
ASSETS
Cash $ 1,002,779 $ 1,655,711 $ 2,658,490
Accounts receivable 5,388 - 5,388
Prepaid items 57,071 56,342 113,413
Due from other governments 86,640 - 86,640
Total assets $ 1,151,878 $ 1,712,053 $ 2,863,931
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ 95,679 $ 9,594 $ 105,273
Due to other governments 195,934 120 196,054
Other deposits held in escrow 653,253 12,195 665,448
Unearned revenues 207,012 - 207,012
Total liabilities 1,151,878 21,909 1,173,787
Fund Balances:
Nonspendable:
Prepaid items 57,071 56,342 113,413
Restricted for:
Court -related costs and improvements - 1,633,802 1,633,802
Unassigned (57,071) - (57,071)
Total fund balances - 1,690,144 1,690,144
Total liabilities fund balances
$ 1,151,878 $ 1,712,053 $ 2,863,931
The accompanying notes are an integral part of the financial statements.
330
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, 2018
Total
Nonmajor Fund Governmental
General Special Revenue Funds
REVENUES
Intergovernmental $ 165,314 $ - $ 165,314
Charges for services 3,300,955 454,939 3,755,894
Judgments, fines and forfeits 918,354 - 918,354
Interest 43,909 12,323 56,232
Miscellaneous 29,385 - 29,385
Total revenues 4,457,917 467,262 4,925,179
EXPENDITURES
General government 1,920,111 674,182 2,594,293
Court related 3,355,980 - 3,355,980
Total expenditures 5,276,091 674,182 5,950,273
Excess of revenues over
(under) expenditures
(818,174) (206,920) (1,025,094)
OTHER FINANCING SOURCES (USES)
Transfers from Board of County Commissioners 1,013,285 - 1,013,285
Transfer to Board of County Commissioners (195,111) - (195,111)
Total other financing sources (uses) 818,174 - 818,174
Net change in fund balances - (206,920) (206,920)
Fund balances at beginning of year - 1,897,064 1,897,064
Fund balances at end of year $ - $ 1,690,144 $ 1,690,144
The accompanying notes are an integral part of the financial statements.
331
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, 2018
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
Budgeted Amount
Original Final
$ 130,646 $
3,184,025
684,000
4,805
39,544
4,043,020
1,945,190
3,111,115
Variance with
Final Budget
Positive
Actual (Negative)
130,646 $
3,214,025
684,000
4,805
39,544
4,073,020
1,971,050
3,115,255
165,314 $
3,300,955
918,354
43,909
29,385
4,457,917
1,920,111
3,355,980
34,668
86,930
234,354
39,104
(10,159)
384,897
50,939
(240,725)
5,056,305
5,086,305
5,276,091
(189,786)
(1,013,285)
1,013,285
(1,013,285)
1,013,285
(818,174)
1,013,285
195,111
(195,111) (195,111)
1,013,285
1,013,285
818,174
The accompanying notes are an integral part of the financial statements.
332
(195,111)
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Statement of Fiduciary Net Position
Agency Fund
September 30, 2018
ASSETS
Cash $ 3,696,964
Total assets $ 3,696,964
LIABILITIES
Due to other governments $ 975,322
Escrow deposits 2,721,642
Total liabilities $ 3,696,964
The accompanying notes are an integral part of the financial statements.
333
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Notes To Financial Statements
Year Ended September 30, 2018
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).
334
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Notes To Financial Statements
Year Ended September 30, 2018
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
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.
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.
335
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Notes To Financial Statements
Year Ended September 30, 2018
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
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.
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.
11. Transfer In
The non -court operations (finance function and board meeting recordings) were funded by the Board of
County Commissioners in the amount of $1,013,285.
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 $195,111 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.
336
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Notes To Financial Statements
Year Ended September 30, 2018
NOTE 2 - CASH
A. Deposits
At September 30, 2018, the carrying value of the Clerk's deposits was $6,355,454 and the bank balance
was $7,052,199. 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.
337
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Notes To Financial Statements
Year Ended September 30, 2018
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, F.S.),
• 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, 2018 were: regular class 8.26%, senior management class
24.06%, DROP class 14.03%, and elected official class 48.70%. 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.
338
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Notes To Financial Statements
Year Ended September 30, 2018
NOTE 3 — PENSION PLAN - Continued
Florida Retirement System - Continued
Under the Pension Plan, early retirement is available before reaching normal retirement age and will be
subject to an early-retirement reduction of 5% for each year your age at retirement is under your normal
retirement age. For those employees who elect participation in the Investment Plan rather than the
Pension Plan, vesting occurs after one year of service. Participants have access to the full value of their
vested account balance when they leave FRS employment, regardless of age. These participants receive
a defined contribution for self-direction in an investment product with a third party administrator
selected by the State Board of Administration.
Benefits Provided: Retirement benefits are determined by age, years of service, the average of the
highest 5 or 8 fiscal years of pay, membership class and the payment option selected at retirement. For
further information concerning the 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, 2018, the Clerk's actuarial contribution to FRS under the Pension Plan
was $281,013 and the Health Insurance Subsidy (HIS Program) was $57,920. Employee contributions
for both plans were $88,707. Both employer and employee contributions were equal to 100% of the
required contribution for each year.
Pension Liabilities: At September 30, 2018, the Division of Retirement calculated the Clerk's liability
of $3,162,940 for the FRS plan and $1,136,721 for the HIS Program, for a total of $4,299,661 for its
proportionate share of the net pension liability. The net pension liability was measured as of June 30,
2018, and the total pension liability used to calculate the net pension liability was determined by an
actuarial valuation as of July 1, 2018. 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, 2018, the Clerk's
proportion was .010501% for the FRS Pension Plan and .010740% for the HIS Program.
Discount Rate for Pension Plan: The discount rate used to measure the total pension liability was
7.00%. 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.
339
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Notes To Financial Statements
Year Ended September 30, 2018
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 7.00%. Also presented is what
the Clerk's proportionate share of the FRS plan NPL would be if it were calculated using a discount rate
that is 1% lower or 1% higher than the current rate:
1% Decrease (6.00%)
Clerk's proportionate
share of NPL $ 5,772,498
Current Discount
Rate (7.00%) 1% Increase (8.00%)
$ 3,162,940 $ 995,548
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 3.87%. Also presented is what the Clerk's
proportionate share of the HIS Program NPL would be if it were calculated using a discount rate that is
1% lower or 1% higher than the current rate:
1% Decrease (2.87%)
Clerk's proportionate
share of NPL $ 1,294,659
Current Discount
Rate (3.87%) 1% Increase (4.87%)
$ 1,136,721 $ 1,005,071
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.
340
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Notes To Financial Statements
Year Ended September 30, 2018
NOTE 4 — OTHER POSTEMPLOYMENT BENEFITS
The Clerk participated in the Indian River County Other Postemployment Benefits Trust (OPEB Trust).
The Clerk's 2018 annual contribution of $96,385 was funded by: the Board of County Commissioners in
the amount of $18,574; non -court operations in the amount of $12,708; court operations in the amount
of $60,139; and special revenue funds in the amount of $4,964. 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 $605,897.
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, 2018:
Beginning Ending
Balance Balance
10/01/17 Additions Deletions 9/30/18
Accrued Compensated Absences $ 251,730 $ 282,784 $ 288,681 $ 245,833
Of the $245,833 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.
341
Rehmann
Rehmann Robson
5070 North Highway AIA,
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 AUDITINGSTANDARDS
March 5, 2019
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 aerk of
Court (the "Clerk"), as of and for the year ended September 30, 2018, which collectively comprise the
Clerk's fund financial statements and have issued our report thereon dated March 5, 2019.
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 internalcontrol.
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 materia! 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.
Rehmann is an independent member of Nexia International.
CPAs & Consultants Wealth Advisors Corporate Investigators
342
A .Irerna,er of
IVexia
International
Clerk of the Circuit Court and Comptroller
March 5, 2019
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.
',\P--isait41.442�,rP LLC
343
Rehmann
MANAGEMENT LETTER
March 5, 2019
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 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 Clerk of Court (the "Clerk"), as of and for the year
ended September 30, 2018, which collectively comprise the Clerk's fund financial statements and have
issued our report thereon dated March 5, 2019.
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 5, 2019, 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.
Rehmann is an independent member of Nexia International.
CPAs & Consultants Wealth Advisors Corporate Investigators
344
A Irerna,er of
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Clerk of the Court and Comptroller
March 5, 2019
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.
41444404..44"w LLC
345
Rehmann
INDEPENDENT ACCOUNTANTS' REPORT
March 5, 2019
The Honorable Jeffrey R. Smith
Clerk of the Circuit Court and Comptroller
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 aerk of Circuit Court and
Comptroller ("the Clerk") with Sections 218.415, 28.35, 28.36, and 61.81 Florida Statutes, during the
year ended September 30, 2018.
Management's Responsibility
Management is responsible for compliance with those requirements.
Independent Accountants' Responsibility
Our responsibility is to express an opinion on the Clerk's compliance with those requirements based on
our examination. Our examination was conducted in accordance with attestation standards established
by the American Institute of Certified Public Accountants. Those standards require that we plan and
perform the examination to obtain reasonable assurance about whether the Clerk is in compliance with
specified requirements established by Florida Statute and performing such procedures as we considered
necessary in the circumstances.
We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for
our opinion. Our examination does not provide a legal determination on the Clerk's compliance with
specified requirements.
Opinion
In our opinion, the Clerk complied, in all material respects, with the aforementioned requirements for
the year ended September 30, 2018.
Purpose of this Report
This report is intended solely for the information of management, the Clerk, the Board of County
Commissioners and the Florida Auditor General and is not intended to be and should not be used by anyone
other than these specified parties.
Rehmann is an independent member of Nexia International.
CPAs & Consultants Wealth Advisors Corporate Investigators
"":e4414-. LLC
346
A .Irerna,er of
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International
PROPERTY APPRAISER
347
Rehmann
INDEPENDENT AUDITORS' REPORT
March 5, 2019
The Honorable Wesley Davis
Property Appraiser
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 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, 2018, 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.
Rehmann is an independent member of Nexia International.
CPAs & Consultants Wealth Advisors Corporate Investigators
348
A .rrerna,er of
IVexia
International
The Honorable Wesley Davis
Property Appraiser
March 5, 2019
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, 2018, 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, 2018, 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 5,
2019, 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.
',Natift,t40(.74474-n.. LLC
349
Indian River County, Florida
Property Appraiser
Balance Sheet
General Fund
September 30, 2018
ASSETS
Cash $ 80,416
Prepaid items 34,674
Total assets $ 115,090
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ 34,452
Due to other governments 80,086
Other deposits 552
Total liabilities 115,090
Fund Balances:
Nonspendable:
Prepaid items 34,674
Unassigned (34,674)
Total fund balances
Total liabilities and fund balances $ 115,090
The accompanying notes are an integral part of the financial statements.
350
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, 2018
Variance
with Final
Budget
Budgeted Amount Positive
Original Final Actual (Negative)
REVENUES
Charges for services $ 3,783,993 $ 3,791,954 $ 3,792,715 $ 761
Interest - - 1,567 1,567
Miscellaneous - - 7,097 7,097
Total revenues 3,783,993 3,791,954 3,801,379 9,425
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
3,783,993 3,791,954 3,728,252 63,702
3,783,993 3,791,954 3,728,252 63,702
73,127 73,127
(73,127) (73,127)
(73,127) (73,127)
$
The accompanying notes are an integral part of the financial statements.
351
Indian River County, Florida
Property Appraiser
Notes To Financial Statements
Year Ended September 30, 2018
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.
352
Indian River County, Florida
Property Appraiser
Notes To Financial Statements
Year Ended September 30, 2018
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 $80,087 at
September 30, 2018, and are included as due to other governments on the balance sheet. Of this amount,
$73,127 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.
353
Indian River County, Florida
Property Appraiser
Notes To Financial Statements
Year Ended September 30, 2018
NOTE 2 - CASH
Deposits
At September 30, 2018, the carrying amount of the Property Appraiser's deposits was $80,416 and the
bank balance was $129,199. 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.
NOTE 3 — PENSION PLAN
Florida Retirement System
Plan Description: The Property Appraiser's employees participate in the Florida Retirement System
(FRS), a cost-sharing, multiple -employer public employee retirement system, administered by the
Florida DepaitHuent 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, 2018 were: regular class 8.26%, senior management class
24.06%, DROP class 14.03%, and elected official class 48.70%. 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.
354
Indian River County, Florida
Property Appraiser
Notes To Financial Statements
Year Ended September 30, 2018
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 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, 2018, the Property Appraiser's actuarial contributions to FRS under
the Pension Plan were $204,615 and the Health Insurance Subsidy (HIS Program) were $36,931.
Employee contributions were $56,630. Both employer and employee contributions were equal to 100%
of the required contribution for each year.
Pension Liabilities: At September 30, 2018, the Division of Retirement calculated the Property
Appraiser's liability of $2,130,603 for the FRS plan and $727,077 for the HIS Program, for a total of
$2,857,680 for its proportionate share of the net pension liability. The net pension liability was
measured as of June 30, 2018, and the total pension liability used to calculate the net pension liability
was determined by an actuarial valuation as of July 1, 2018. 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, 2018, the Property Appraiser's proportion was .007073% for
the FRS Pension Plan and .006869% for the HIS Program.
Discount Rate for Pension Plan: The discount rate used to measure the total pension liability was
7.00%. 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.
355
Indian River County, Florida
Property Appraiser
Notes To Financial Statements
Year Ended September 30, 2018
NOTE 3 — PENSION PLAN - Continued
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
7.00%. Also presented is what the Property Appraiser's proportionate share of the FRS plan NPL would
be if it were calculated using a discount rate that is 1% lower or 1% higher than the current rate:
Property Appraiser 's proportionate
share of NPL
1% Decrease
(6.00%)
Current Discount
Rate (7.00%)
1% Increase
(8.00%)
$ 3,888,439 $ 2,130,603 $ 670,615
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 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 3.87%. 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
(2.87%)
Property Appraiser's
proportionate share of NPL $ 828,098
Current Discount
Rate (3.87%)
1% Increase
(4.87%)
$ 727,077 $ 642,870
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.
356
Indian River County, Florida
Property Appraiser
Notes To Financial Statements
Year Ended September 30, 2018
NOTE 4 — OTHER POSTEMPLOYMENT BENEFITS
The Property Appraiser participated in the Indian River County Other Postemployment Benefits Trust
(OPEB Trust). The Property Appraiser's 2018 annual contribution of $47,158 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 2018 at an annual cost of approximately
$319,892. Further details on the self-insurance program are discussed in the County -wide financial
statements and County notes.
NOTE 6 — LONG-TERM LIABILITIES
Changes in Long -Term Liabilities
A summary of changes in long-term liabilities is as follows:
Accrued Compensated Absences
Beginning Ending
Balance Balance
10/01/17 Additions Deletions 9/30/2018
$ 21,914 $ 244,048 $ 217,425 $ 48,537
Of the $48,537 liability for accrued compensated absences, management estimates that $10,000 will be
due and payable within one year. The long-term liabilities are not reported in the financial statements of
the Property Appraiser since they are not payable from available spendable resources. They are reported
in the financial statements of the County.
357
Rehmann
Rehmann Robson
5070 North Highway AIA,
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 AUDITINGSTANDARDS
March 5, 2019
The Honorable Wesley Davis
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, 2018, which collectively comprise the Property Appraiser's fund
financial statements and have issued our report thereon dated March 5, 2019.
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
Rehmann is an independent member of Nexia International.
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358
A .rrerna,er of
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Property Appraiser
March 5, 2019
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.
41-4":44-114,-, LLC
359
Rehmann
MANAGEMENT LETTER
March 5, 2019
The Honorable Wesley Davis
Property Appraiser
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 of the Indian River County, Florida
Property Appraiser (the "Property Appraiser"), as of and for the year ended September 30, 2018,
which collectively comprise the Property Appraiser's fund financial statements and have issued our
report thereon dated March 5, 2019.
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 5, 2019, 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.
Rehmann is an independent member of Nexia International.
CPAs & Consultants Wealth Advisors Corporate Investigators
360
'W A +rerna,er. of
Nexia
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The Honorable Wesley Davis
Property Appraiser
March 5, 2019
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 Property Appraiser and applicable
management and is not intended to be and should not be used by anyone other than these specified
parties.
L LC
361
Rehmann
INDEPENDENT ACCOUNTANTS' REPORT
March 5, 2019
The Honorable Wesley Davis
Property Appraiser
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 Property Appraiser ("the
Property Appraiser") with Sections 218.415 Florida Statutes, during the year ended September 30,
2018.
Management's Responsibility
Management is responsible for compliance with those requirements.
Independent Accountants' Responsibility
Our responsibility is to express an opinion on the Property Appraiser's compliance with those
requirements based on our examination. Our examination was conducted in accordance with
attestation standards established by the American Institute of Certified Public Accountants. Those
standards require that we plan and perform the examination to obtain reasonable assurance about
whether the Property Appraiser is in compliance with specified requirements established by Florida
Statute and performing such procedures as we considered necessary in the circumstances.
We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis
for our opinion. Our examination does not provide a legal determination on the Property Appraiser's
compliance with specified requirements.
Opinion
In our opinion, the Property Appraiser complied, in all material respects, with the aforementioned
requirements for the year ended September 30, 2018.
Purpose of this Report
This report is intended solely for the information of management, the Property Appraiser, the Board of
County Commissioners and the Florida Auditor General and is not intended to be and should not be
used by anyone other than these specified parties.
Rehmann is an independent member of Nexia International.
CPAs & Consultants Wealth Advisors Corporate Investigators
362
LLC
A .Irerna,er of
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363
Rehmann
INDEPENDENT AUDITORS' REPORT
March 5, 2019
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 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, 2018, 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.
Rehmann is an independent member of Nexia International.
CPAs & Consultants Wealth Advisors Corporate Investigators
364
A .rrerna,er of
IVexia
International
The Honorable Deryl Loar
Sheriff
March 5, 2019
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, 2018, 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, 2018, 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 5,
2019, 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.
-ecateAft440(.441..r-LLC
365
Indian River County, Florida
Sheriff
Balance Sheet
Governmental Funds
September 30, 2018
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
Special
Revenue
$ 1,807,087 $
57,857
77,730
Total
Governmental
Funds
1,892,680 $
98,981
22,881
3,699,767
156,838
100,611
$ 1,942,674 $ 2,014,542 $ 3,957,216
$ 1,896,179 $
46,495
1,942,674
77,730
(77,730)
183,003 $ 2,079,182
46,495
183,003
2,125,677
22,881
1,481,298
218,375
108,985
100,611
1,481,298
218,375
108,985
(77,730)
1,831,539
1,831,539
$ 1,942,674 $ 2,014,542 $ 3,957,216
The accompanying notes are an integral part of the financial statements.
366
Indian River County, Florida
Sheriff
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended September 30, 2018
REVENUES
Intergovernmental
Charges for services
Judgments, fines and forfeits
Miscellaneous
Total revenues
General
Nonmajor
Fund Total
Special Governmental
Revenue Funds
- $ 120,150 $ 120,150
- 261,547 261,547
- 67,419 67,419
58,674 378,513 437,187
58,674
827,629 886,303
EXPENDITURES
Public safety 44,603,262 1,051,210 45,654,472
Court related 2,332,436 - 2,332,436
Total expenditures 46,935,698 1,051,210 47,986,908
Excess of revenues over
(under) expenditures (46,877,024) (223,581) (47,100,605)
OTHER FINANCING SOURCES (USES)
Transfers from Board of County Commissioners 46,923,519 278,925 47,202,444
Transfers to Board of County Commissioners (46,495) - (46,495)
Total other financing sources 46,877,024 278,925 47,155,949
Net change in fund balances - 55,344 55,344
Fund balances at beginning of year - 1,776,195 1,776,195
Fund balances at end of year $ - $ 1,831,539 $ 1,831,539
The accompanying notes are an integral part of the financial statements.
367
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, 2018
Variance
with Final
Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES
Miscellaneous $ - $ 58,674 $ 58,674 $
Total revenues - 58,674 58,674
EXPENDITURES
Public safety 44,490,613 44,660,280 44,603,262 57,018
Court related 2,417,906 2,321,913 2,332,436 (10,523)
Total expenditures 46,908,519 46,982,193 46,935,698 46,495
Excess of revenues over
(under) expenditures
(46,908,519) (46,923,519) (46,877,024) 46,495
OTHER FINANCING SOURCES (USES)
Transfers from Board
of County Commissioners 46,908,519 46,923,519 46,923,519
Transfers to Board
of County Commissioners - - (46,495) (46,495)
Total other financing sources 46,908,519 46,923,519 46,877,024 (46,495)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
$ - $
The accompanying notes are an integral part of the financial statements.
368
Indian River County, Florida
Sheriff
Statement of Fiduciary Net Position
Agency Fund
September 30, 2018
ASSETS
Cash $ 34,355
Total assets $ 34,355
LIABILITIES
Escrow deposits $ 34,355
Total liabilities $ 34,355
The accompanying notes are an integral part of the financial statements.
369
Indian River County, Florida
Sheriff
Notes To Financial Statements
Year Ended September 30, 2018
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.
370
Indian River County, Florida
Sheriff
Notes To Financial Statements
Year Ended September 30, 2018
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, 2018 amount totaled $46,495 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.
371
Indian River County, Florida
Sheriff
Notes To Financial Statements
Year Ended September 30, 2018
NOTE 2 - CASH
Deposits
At September 30, 2018, the carrying amount of the Sheriff's deposits was $3,734,122 and the bank
balance was $5,454,184. 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
Equipment used by the Sheriff in operations is reported in the financial statements of the County. State
law requires the Sheriff to account for all tangible property used by the Sheriff. A summary of changes
in capital assets is as follows:
Beginning Ending
Balance Balance
10/01/17 Additions Deletions 09/30/18
Equipment $ 25,489,634 $ 3,862,742 $ 1,786,650 $ 27,565,726
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.
372
Indian River County, Florida
Sheriff
Notes To Financial Statements
Year Ended September 30, 2018
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, 2018 were: regular class 8.26%, special risk 24.50%, senior
management class 24.06%, DROP class 14.03%, and elected official class 48.70%. 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, 2018, the Sheriffs actuarial contributions to FRS under the Pension
Plan were $3,930,490 and the HIS Program were $421,043. Employee contributions were $693,272.
Both employer and employee contributions were equal to 100% of the required contribution for each
year.
373
Indian River County, Florida
Sheriff
Notes To Financial Statements
Year Ended September 30, 2018
NOTE 5 — PENSION PLAN - Continued
Florida Retirement System - Continued
Pension Liabilities: At September 30, 2018, the Division of Retirement calculated the Sheriff's liability
of $40,917,513 for the FRS plan and $8,256,279 for the HIS Program, for a total of $49,173,793 for its
proportionate share of the net pension liability. The net pension liability was measured as of June 30,
2018, and the total pension liability used to calculate the net pension liability was determined by an
actuarial valuation as of July 1, 2018. 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, 2018, the
Sheriffs proportion was .135846% for the FRS Pension Plan and .078006% for the HIS Program.
Discount Rate for Pension Plan: The discount rate used to measure the total pension liability was
7.00%. 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 Sheriffs proportionate share of the net pension
liability (NPL) of the Pension Plan calculated using the discount rate of 7.00%. Also presented is what
the Sheriffs proportionate share of the FRS plan NPL would be if it were calculated using a discount
rate that is 1% lower or 1% higher than the current rate:
Current Discount
1% Decrease (6.00%) Rate (7.00%) 1% Increase (8.00%)
Sheriffs proportionate
share of NPL $ 74,676,178 $ 40,917,513 $ 12,878,947
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.
374
Indian River County, Florida
Sheriff
Notes To Financial Statements
Year Ended September 30, 2018
NOTE 5 — PENSION PLAN - Continued
Florida Retirement System - Continued
Sensitivity of the Sheriffs Proportionate Share of the Net Position Liability to Changes in the Discount
Rate for the HIS Program: The following presents the Sheriffs proportionate share of the NPL of the
HIS Program calculated using the discount rate of 3.87%. Also presented is what the Sheriffs
proportionate share of the HIS Program NPL would be if it were calculated using a discount rate that is
1% lower or 1% higher than the current rate:
1% Decrease (2.87%)
Sheriffs proportionate
share of NPL $ 9,403,418
Current Discount
Rate (3.87%)
1% Increase (4.87%)
$ 8,256,279 $ 7,300,072
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 Postemployment Benefits Trust (OPEB
Trust). The Sheriff's 2018 annual contribution of $1,000,154 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 2018 at an annual cost of approximately $3,971,393.
Further details on this self-insurance program are disclosed in the County -wide financial statements and
County notes.
375
Indian River County, Florida
Sheriff
Notes To Financial Statements
Year Ended September 30, 2018
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, 2018:
Accrued Compensated Absences
Beginning Ending
Balance Balance
10/01/17 Additions Deletions 09/30/18
$ 6,868,926 $ 4,000,934 $ 3,551,240 $ 7,318,620
Of the $7,318,620 liability for accrued compensated absences, management estimates that $3,698,450
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 $86,665 for the year ended September 30, 2018.
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
2019 $ 48,566
2020 38,425
2021 37,494
2022 10,522
Total Future Minimum Lease Payments $ 135,007
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.
376
Rehmann
Rehmann Robson
5070 North Highway AIA,
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 AUDITINGSTANDARDS
March 5, 2019
The Honorable Deryl Loar
Sheriff
Indian River County, Florida
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial statements contained in Government Auditing
Standards issued by the Comptroller General of the United States, the fund financial statements of the
major fund and the aggregate remaining fund information of the Indian River County, Florida Sheriff
(the "Sheriff"), as of and for the year ended September 30, 2018, which collectively comprise the
Sheriff's fund financial statements and have issued our report thereon dated March 5, 2019.
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 internalcontrol.
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
377
A .Irerna,er of
IVexia
International
The Honorable Deryl Loar
Sheriff
March 5, 2019
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.
L LG
378
Rehmann
MANAGEMENT LETTER
March 5, 2019
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, 2018, which collectively comprise the Sheriff's fund financial statements and have
issued our report thereon dated March 5, 2019.
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 5, 2019, 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.
Rehmann is an independent member of Nexia International.
CPAs & Consultants Wealth Advisors Corporate Investigators
379
A member of
ik
International
The Honorable Deryl Loar
Sheriff
March 5, 2019
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.
LLC
380
SUPERVISOR OF ELECTIONS
381
Rehmann
INDEPENDENT AUDITORS' REPORT
March 5, 2019
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 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, 2018, 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
382
A .rrerna,er of
IVexia
International
The Honorable Leslie Swan
Supervisor of Elections
March 5, 2019
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, 2018, 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, 2018, 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.
',Natift,t40(.74474-n.. LLC
383
Indian River County, Florida
Supervisor of Elections
Balance Sheet
Governmental Funds
September 30, 2018
General
Nonmajor Fund Total
Special Governmental
Revenue Funds
ASSETS
Cash $ 11,100 $ 121,467 $ 132,567
Prepaid items 62,010 - 62,010
Total assets $ 73,110 $ 121,467 $ 194,577
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ 65,939 $ - $ 65,939
Due to other governments 7,171 - 7,171
Unearned revenues - 121,132 121,132
Total liabilities 73,110 121,132 194,242
Fund Balances:
Nonspendable:
Prepaid items 62,010 - 62,010
Restricted for:
Voting/election activities 335 335
Unassigned (62,010) - (62,010)
Total fund balances 335 335
Total liabilities and fund balances
$ 73,110 $ 121,467 $ 194,577
The accompanying notes are an integral part of the financial statements.
384
Indian River County, Florida
Supervisor of Elections
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended September 30, 2018
REVENUES
Intergovernmental
Charges for services
Interest
Miscellaneous
Total revenues
EXPENDITURES
General government
Total expenditures
General
Nonmajor
Fund Total
Special Governmental
Revenue Funds
- $ 89,742 $ 89,742
3,301 - 3,301
361 361
61,324 - 61,324
64,625 90,103 154,728
1,362,323
1,362,323
96,051 1,458,374
96,051 1,458,374
Excess of revenues over
(under) expenditures (1,297,698) (5,948) (1,303,646)
OTHER FINANCING SOURCES (USES)
Transfers from Board of County Commissioners 1,307,355 - 1,307,355
Transfers from other funds 2,486 2,486
Transfers to Board of County Commissioners (7,171) - (7,171)
Transfers to other funds (2,486) - (2,486)
Total other financing sources (uses) 1,297,698 2,486 1,300,184
Net change in fund balances (3,462) (3,462)
Fund balances at beginning of year 3,797 3,797
Fund balances at end of year $ - $ 335 $ 335
The accompanying notes are an integral part of the financial statements.
385
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, 2018
Variance
with Final
Budget
Budgeted Amount Positive
Original Final Actual (Negative)
REVENUES
Charges for services S - $ - $ 3,301 $ 3,301
Miscellaneous - 61,324 61,324
Total revenues - 61,324 64,625 3,301
EXPENDITURES
General government 1,303,455 1,364,779 1,362,323 2,456
Total expenditures 1,303,455 1,364,779 1,362,323 2,456
Excess of revenues over
(under) expenditures
(1,303,455) (1,303,455) (1,297,698) 5,757
OTHER FINANCING SOURCES (USES)
Transfers from Board of County
Commissioners 1,307,355 1,307,355 1,307,355
Transfers to Board of County
Commissioners - - (7,171) (7,171)
Transfers to other funds (3,900) (3,900) (2,486) 1,414
Total other financing sources (uses) 1,303,455 1,303,455 1,297,698 (5,757)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
The accompanying notes are an integral part of the financial statements.
386
Indian River County, Florida
Supervisor of Elections
Notes To Financial Statements
Year Ended September 30, 2018
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.
387
Indian River County, Florida
Supervisor of Elections
Notes To Financial Statements
Year Ended September 30, 2018
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
$7,171 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.
388
Indian River County, Florida
Supervisor of Elections
Notes To Financial Statements
Year Ended September 30, 2018
NOTE 2 - CASH
Deposits
At September 30, 2018, the carrying amount of the Supervisor of Elections' deposits was $132,567, and
the bank balance was $210,653. All deposits with financial institutions were 100% insured by federal
depository insurance or by collateral provided by qualified public depositories to the State Treasurer in
accordance with Section 280.01, Florida Statutes, also known as the Florida Security for Public Deposits
Act.
The Supervisor of Elections has adopted the Board of County Commissioners' investment policy. This
policy requires the Supervisor of Elections' office to follow the above state law (governing custodial
credit risk) for cash deposits. Refer to the County -wide note on cash and investments for the definition
of custodial credit risk.
NOTE 3 — PENSION PLAN
Florida Retirement System
Plan Description: The Supervisor of Elections' employees participate in the Florida Retirement System
(FRS), a cost-sharing, multiple -employer public employee retirement system, administered by the
Florida Department of Management Services (DMS). Benefit provisions are established and may be
amended by state statute. A financial report is available from the DMS website at
www.dms.myflorida.com or by mail at Florida Division of Retirement, PO Box 9000, Tallahassee, FL
32315-9000.
Effective July 1, 2011, the FRS became a contributory plan for all members, except DROP participants,
whereby members contribute 3% and employers pay a rate based upon each member's employment
class. Classes and rates in effect at July 1, 2018 were: regular class 8.26%, senior management class
24.06%, DROP class 14.03%, and elected official class 48.70%. 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.
389
Indian River County, Florida
Supervisor of Elections
Notes To Financial Statements
Year Ended September 30, 2018
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, 2018, the Supervisor of Elections' actuarial contribution to FRS under
the Pension Plan were $80,330 and the HIS Program were $8,554. Employee contributions were
$15,455. Both employer and employee contributions were equal to 100% of the required contribution
for each year.
Pension Liabilities: At September 30, 2018, the Division of Retirement calculated the Supervisor of
Elections' liability of $826,008 for the FRS plan and $163,911 for the HIS Program, for a total of
$989,919 for its proportionate share of the net pension liability. The net pension liability was measured
as of June 30, 2018, and the total pension liability used to calculate the net pension liability was
determined by an actuarial valuation as of July 1, 2018. 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, 2018, the Supervisor of Elections' proportion was .002742%
for the FRS Pension Plan and .001549% for the HIS Program.
Discount Rate for Pension Plan: The discount rate used to measure the total pension liability was
7.00%. 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.
390
Indian River County, Florida
Supervisor of Elections
Notes To Financial Statements
Year Ended September 30, 2018
NOTE 3 — PENSION PLAN - Continued
Florida Retirement System - Continued
Sensitivity of the Supervisor of Elections' 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 7.00%. 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
(6.00%)
Supervisor of Elections's
proportionate share of NPL $ 1,507,500
Current Discount
Rate (7.00%)
1% Increase
(8.00%)
$ 826,008 $ 259,989
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' 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 3.87%. 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
(2.87%)
Supervisor of Election's
proportionate share of NPL $ 186,684
Current Discount
Rate (3.87%)
1% Increase
(4.87%)
$ 163,911 $ 144,927
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.
391
Indian River County, Florida
Supervisor of Elections
Notes To Financial Statements
Year Ended September 30, 2018
NOTE 4 — OTHER POSTEMPLOYMENT BENEFITS
The Supervisor of Elections participated in the Indian River County Other Postemployment Benefit
Trust (OPEB Trust). The Supervisor of Election's 2018 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 2018 at an annual cost of
approximately $66,132.
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, 2018:
Beginning Ending
Balance Balance
10/1/2017 Additions Deletions 9/30/2018
Accrued Compensated Absences $ 23,660 $ 30,802 $ 27,010 $ 27,452
Of the $27,452 liability for accrued compensated absences, management estimates that $11,542 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.
392
Indian River County, Florida
Supervisor of Elections
Notes To Financial Statements
Year Ended September 30, 2018
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 $3,217 for the year ended September 30, 2018.
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
2019 $ 3,588
2020 3,588
2021 3,588
2022 1,813
$ 12,577
393
Rehmann
Rehmann Robson
5070 North Highway AIA,
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 AUDITINGSTANDARDS
March 5, 2019
The Honorable Leslie Swan
Supervisor of Elections
Indian River County, Florida
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial statements contained in Government Auditing
Standards issued by the Comptroller General of the United States, the fund financial statements of the
major fund and the aggregate remaining fund information of the Indian River County, Florida
Supervisor of Elections (the "Supervisor of Elections"), as of and for the year ended September 30,
2018, which collectively comprise the Supervisor of Elections' fund financial statements and have issued
our report thereon dated March 5, 2019.
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
Rehmann is an independent member of Nexia International.
CPAs & Consultants Wealth Advisors Corporate Investigators
394
A +rerna,er of
Nexis
International
The Honorable Leslie Swan
Supervisor of Elections
March 5, 2019
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.
LLC
395
Rehmann
MANAGEMENT LETTER
March 5, 2019
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, 2018, which collectively comprise the
Supervisor of Elections' fund financial statements and have issued our report thereon dated March 5,
2019.
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 5, 2019, 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.
Rehmann is an independent member of Nexia International.
CPAs & Consultants Wealth Advisors Corporate Investigators
396
A .rrerna,er of
IVexia
International
The Honorable Leslie Swan
Supervisor of Elections
March 5, 2019
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.
L LC
397
398
TAX COLLECTOR
399
Rehmann
INDEPENDENT AUDITORS' REPORT
March 5, 2019
The Honorable Carole Jean Jordan
Tax Collector
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 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, 2018, 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
400
A .rrerna,er of
IVexia
International
The Honorable Carole Jean Jordan
Tax Collector
March 5, 2019
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, 2018, 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, 2018, 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 5,
2019, 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.
-444",„ L LC
401
Indian River County, Florida
Tax Collector
Balance Sheet
General Fund
September 30, 2018
ASSETS
Cash and investments $ 3,035,739
Accounts receivable 288,149
Inventories 5,314
Prepaid items 18,384
Total assets $ 3,347,586
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ 388,550
Due to other governments 2,890,492
Unearned revenues 67,536
Other deposits 1,008
Total liabilities 3,347,586
Fund Balances:
Nonspendable:
Inventories 5,314
Prepaid items 18,384
Unassigned (23,698)
Total fund balances
Total liabilities and fund balances $ 3,347,586
The accompanying notes are an integral part of the financial statements.
402
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, 2018
Variance with
Final Budget
Budgeted Amount Positive
Original Final Actual (Negative)
REVENUES
Charges for services $ 6,504,920 $ 6,504,920 $ 6,858,696 $ 353,776
Interest 14,000 14,000 45,533 31,533
Total revenues 6,518,920 6,518,920 6,904,229 385,309
EXPENDITURES
General government 3,935,230 4,343,787 4,290,717 53,070
Total expenditures 3,935,230 4,343,787 4,290,717 53,070
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
2,583,690 2,175,133
2,613,512 438,379
(2,583,690) (2,175,133) (2,613,512) (438,379)
(2,583,690) (2,175,133) (2,613,512) (438,379)
The accompanying notes are an integral part of the financial statements.
403
Indian River County, Florida
Tax Collector
Statement of Fiduciary Net Position
Agency Fund
September 30, 2018
ASSETS
Cash and investments $ 4,520,091
Total assets $ 4,520,091
LIABILITIES
Due to other governments $ 4,520,091
Total liabilities $ 4,520,091
The accompanying notes are an integral part of the financial statements.
404
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2018
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.
405
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2018
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 $67,536 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.
406
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2018
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 $2,890,492 at
September 30, 2018, and are included as due to other governments on the balance sheet. Of this amount,
$2,613,512 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, 2018, the carrying amount of the Tax Collector's deposits was $4,788,235 and
the bank balance was $4,929,662.
B. Investments
At September 30, 2018, the Tax Collector had investments with a balance of $2,767,595. The Florida
Prime had a balance of $1,151,486 and weighted average maturity of 35 days. The Florida Trust Day to
Day Fund had a balance of $531,066 and weighted average maturity of 34 days. The FL CLASS had a
balance of $1,085,043 and a weighted average maturity of 71 days.
407
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2018
NOTE 2 - CASH AND INVESTMENTS - Continued
B. Investments - Continued
Fair Value Measurement
The Tax Collector's investments in the Florida Cooperative Liquid Assets Securities Systems
(FLCLASS) and the Florida Trust, both external local government investment pools organized under the
laws of the State of Florida, are presented at Net Asset Value (NAV), which reflects fair value. The
objectives of the FLCLASS and the Florida Trust are to generate investment income while maintaining
safety and liquidity. The Florida PRIME is valued at amortized cost. There are no restrictions or
limitations on withdrawals, however, Florida PRIME may, on occurrence of an event that has a material
impact on liquidity or operations, impose restrictions on withdrawals for up to 48 hours.
C. Deposit and Investment Policy
The Tax Collector last modified their investment and deposit policy in September 2016. This policy
requires the Tax Collector's office to follow the above state law (governing custodial credit risk) for
deposits and Section 218.415, Florida Statutes. Refer to the County -wide note on cash and investments
for the definition of custodial credit risk.
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%
408
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2018
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, 2018
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
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 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.
409
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2018
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, 2018 were: regular class 8.26%, senior management class
24.06%, DROP class 14.03%, and elected official class 48.70%. 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, 2018, the Tax Collector's actuarial contributions to FRS under the
Pension Plan were $208,965 and the Health Insurance Subsidy (HIS Program) were $33,692. Employee
contributions were $58,137. Both employer and employee contributions were equal to 100% of the
required contribution for each year.
410
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2018
NOTE 4 — PENSION PLAN - Continued
Florida Retirement System - Continued
Pension Liabilities: At September 30, 2018, the Division of Retirement calculated the Tax Collector's
liability of $2,132,009 for the FRS plan and $643,036 for the HIS Program, for a total of $2,775,045 for
its proportionate share of the net pension liability. The net pension liability was measured as of June 30,
2018, and the total pension liability used to calculate the net pension liability was determined by an
actuarial valuation as of July 1, 2018. 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,
2018, the Tax Collector's proportion was .007078% for the FRS Pension Plan and .006075% for the HIS
Program.
Discount Rate for Pension Plan: The discount rate used to measure the total pension liability was
7.00%. 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 7.00%. Also
presented is what the Tax Collector's proportionate share of the FRS plan NPL would be if it were
calculated using a discount rate that is 1% lower or 1% higher than the current rate:
1% Decrease (6.00%)
Tax Collector's proportionate
share of NPL $ 3,891,006
Current Discount
Rate (7.00%)
1% Increase (8.00%)
$ 2,132,009 $ 671,058
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.
411
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2018
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 3.87%. 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:
1% Decrease (2.87%)
Tax Collector's proportionate
share of NPL $ 732,380
Current Discount
Rate (3.87%) 1% Increase (4.87%)
$ 643,036 $ 568,562
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 2018 annual contribution of $60,809 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 2018 at an annual cost of approximately $424,886.
Further details of this self-insurance program are discussed in the risk management note in the County-
wide financial statements.
412
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2018
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, 2018:
Beginning Ending
Balance Balance
10/1/2017 Additions Deletions 9/30/2018
Accrued Compensated Absences $ 117,608 $ 28,268 $ 23,462 $ 122,414
Of the $122,414 liability for accrued compensated absences, management estimates that $12,490 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 $122,469 for the fiscal year ended September 30, 2018.
The following is a schedule by years of minimum future rentals to be paid by the Tax Collector for
noncancelable operating leases as of September 30:
Year Amount
2019 $ 104,354
2020 66,765
2021 68,768
2022 52,728
Total future minimum lease payments $ 292,615
413
Rehmann
Rehmann Robson
5070 North Highway AIA,
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 AUDITINGSTANDARDS
March 5, 2019
The Honorable Carole Jean Jordan
Tax Collector
Indian River County, Florida
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial statements contained in Government Auditing
Standards issued by the Comptroller General of the United States, the fund financial statements of the
major fund and the aggregate remaining fund information of the Indian River County, Florida Tax
Collector (the "Tax Collector"), as of and for the year ended September 30, 2018, which collectively
comprise the Tax Collector's fund financial statements and have issued our report thereon dated
March 5, 2019.
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
Rehmann is an independent member of Nexia International.
CPAs & Consultants Wealth Advisors Corporate Investigators
414
'W A Irerna,er of
Nexia
International
The Honorable Carole Jean Jordan
Tax Collector
March 5, 2019
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.
LLC
415
Rehmann
MANAGEMENT LETTER
March 5, 2019
The Honorable Carole Jean Jordan
Tax Collector
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 Tax Collector (the "Tax Collector"), as of and for the
year ended September 30, 2018, which collectively comprise the Tax Collector's fund financial
statements and have issued our report thereon dated March 5, 2019.
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 5, 2019, 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.
Rehmann is an independent member of Nexia International.
CPAs & Consultants Wealth Advisors Corporate Investigators
416
'W A +rerna,er. of
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The Honorable Carole Jean Jordan
Tax Collector
March 5, 2019
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 Tax Collector 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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Rehmann
INDEPENDENT ACCOUNTANTS' REPORT
March 5, 2019
The Honorable Carole Jean Jordan
Tax Collector
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 Tax Collector ("the Tax Collector")
with Sections 218.415 Florida Statutes, during the year ended September 30, 2018.
Management's Responsibility
Management is responsible for compliance with those requirements.
Independent Accountants' Responsibility
Our responsibility is to express an opinion on the Tax Collector's compliance with those requirements
based on our examination. Our examination was conducted in accordance with attestation standards
established by the American Institute of Certified Public Accountants. Those standards require that we
plan and perform the examination to obtain reasonable assurance about whether the Tax Collector is in
compliance with specified requirements established by Florida Statute and performing such procedures
as we considered necessary in the circumstances.
We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for
our opinion. Our examination does not provide a legal determination on the Tax Collector's compliance
with specified requirements.
Opinion
In our opinion, the Tax Collector complied, in all material respects, with the aforementioned
requirements for the year ended September 30, 2018.
Purpose of this Report
This report is intended solely for the information 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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