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HomeMy WebLinkAbout2019-064DINDIAN RIVER COUNTY 2017 Popular Annual Financial Report for the Fiscal Year Ended September 30, 2017 Prepared by Jeffrey R. Smith, CPA, CGFO, CGMA `J Indian River County Clerk of the Circuit Court and Comptroller Table of Contents Message from the Clerk 1 About this Report 2 County Overview 3 Board of County Commissioners 4 Elected Constitutional Officers 5 Major Initiatives and Accomplishments 6-7 Local Economy 8 Property Taxes 9 Government -Wide Financial Statements ....10-11 Governmental Funds 12-13 General Fund 14-15 Capital Assets 16 Debt 17 Cash and Investments 18 Role of the Clerk 19 Glossary of Terms 20 Contacting Your Government 21 Clerk's Online Services Back Cover Indian River County Administration Building A Photo courtesy of Gary Tummond Cover Photos: Cypress trees at Blue Cypress Lake photo courtesy of JPRlmages.com, Skydivers over Indian River County photo courtesy of the Sebastian River Area Chamber of Commerce, Palm Trees near Vero Beach's South Beach photo courtesy of Laura McIver, Horseshoe crab on an Indian River County beach photo courtesy of Deanna DeRosia (Instagram @sweet.dea.drawings) MESSAGE FROM THE CLERK Jeffrey R. Smith, CPA, CGFO, CGMA Indian River County Clerk of the Circuit Court and Comptroller To the Residents of Indian River County: I am proud to present you with the County's Popular Annual Financial Report (PAFR) for the fiscal year ended September 30, 2017. The PAFR is intended to provide readers with an easy to understand summary of Indian River County's financial activities. This report provides a brief analysis of where County revenues come from and how those dollars were managed and spent over the past fiscal year. It is my responsibility as Clerk of the Circuit Court and County Comptroller to safeguard our County's funds and public records. As such, I serve as the official watchdog of County funds, providing checks and balances on the County budget, revenue, and spending. I remain committed to reviewing our County's financials each year and reporting the information through our Comprehensive Annual Financial Report (CAFR) and through this PAFR. Most of the information in this report is derived from Indian River County's CAFR. Awarded the Certificate of Achievement for Excellence in Financial Reporting for the past 34 consecutive years from the Government Finance Officers Association, the CAFR contains more detailed audited financial information. Since the information in the PAFR is summarized and does not provide financial information for all funds at the fund level, it does not conform to generally accepted accounting principles reporting requirements for government entities. Rather, this PAFR is prepared in a format so that non-financial readers can easily understand it. For a more in-depth and audited review of the County's finances, please refer to the CAFR, which includes detailed financial statements, notes, schedules, and reports. Both the CAFR and the PAFR are available on our website and can be accessed at www.clerk.indian-river.org/en/finance. I hope you will find this report to be informative. It is my honor and privilege to serve as your Clerk and Comptroller. Thank you for the trust you continue to place in your County and those who work to serve you. Sincerely, Jeffrey R. Smith, CPA, CGFO, CGMA Indian River County Clerk of the Circuit Court and Comptroller 1 ABOUT THIS REPORT G�9 Government Finance Officers Association Award for Outstanding Achievement in Popular Annual Financial Reporting Presented to Indian River County Florida For its Annual Financial Report for the Fiscal Year Ended September 30, 2016 I:.rctleiV4 Director/CEO The Government Finance Officers Association of the United States and Canada (GFOA) has given an Award for Outstanding Achievement in Popular Annual Financial Reporting to Indian River County, Florida for its Popular Annual Financial Report for the fiscal year ended September 30, 2016. The Award for Outstanding Achievement in Popular Annual Financial Reporting is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government popular reports. In order to receive an Award for Outstanding Achievement in Popular Annual Financial Reporting, a government unit must publish a Popular Annual Financial Report, whose contents conform to program standards of creativity, presentation, understandability and reader appeal. An Award for Outstanding Achievement in Popular Annual Financial Reporting is valid for a period of one year only. Indian River County has received a Popular Award for the last 2 consecutive years (fiscal years ended 2015-2016). We believe our current report continues to conform to the Popular Annual Financial Reporting requirements, and we are submitting it to GFOA. COUNTY OVERVIEW Indian River County was established on June 29, 1925 by an act of the Florida Legislature. The City of Vero Beach is the seat of the County government. The current population of Indian River County is 148,962, increasing 1.74% over the previous year. Indian River County 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 to the west. There are approximately 100 miles of waterfront land in the county, including 23 miles of Atlantic beaches. The comfortable climate provides the basis for year-round enjoyment of the beaches, Indian River Lagoon, County parks, Sebastian Inlet State Park, and the Pelican Island National Wildlife Refuge by both residents and tourists. 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. Roseate Spoonbills at Stick Marsh in northwestern Indian River County. Photo courtesy of JPRlmages.com 3 BOARD OF COUNTY COMMISSIONERS 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 also charged with the fiscal control of the resources of the County. Susan Adams District 1 Joseph E. Flescher District 2 Tim Zorc District 3 Peter D. O'Bryan District 4 Bob Solari District 5 Map Legend raunic,i &planes Commissioner Qistricts DISTRICT 1 DISTRICT 2 DISTRICT 3 DISTRICT 4 DISTRICT 5 4 ELECTED CONSTITUTIONAL OFF Deryl Loar Sheriff Carole Jean Jordan Tax Collector David C. Nolte Property Appraiser Leslie Rossway Swan Supervisor of Elections Jeffrey R. Smith Clerk of Court and Comptroller In addition to the Board, there are five elected Constitutional Officers serving specific governmental functions: Sheriff, Tax Collector, Property Appraiser, Supervisor of Elections, and Clerk of the Circuit Court and Comptroller (Clerk). Although the funding for all Constitutional Offices 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. Plumeria after a rain storm Photo courtesy of Laura McIver The Clerk, Sheriff, and Supervisor of Elections submit proposed operating budgets to the Board prior to May 1St The Florida Department of Revenue receives budgets from the Property Appraiser prior to June 1St and from the Tax Collector prior to August 1St. Once these budgets are approved, they are forwarded to the Board. The court - related function of the Clerk submits a budget to the Florida Clerks of Court Operations Corporation (CCOC) prior to June 1st. The Clerk's Court operating budget includes proposed expenditures and the sources to finance them as set forth in Section 28.36, Florida Statutes. Constitutional Officers, all departments controlled by the Board of County Commissioners, and outside State and local agencies submit their proposed budgets to the Office of Management and Budget for assistance, review and compilation. The County Administrator then reviews all the budgets of the County departments, state agencies and nonprofit organizations, and makes his budget recommendations to the Board of County Commissioners on or before July 15th of each year. During September, public hearings are held pursuant to 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 (at the fund level) the budgets for all governmental fund types. 5 MAJOR INITIATIVES AND ACCOMPLISHMENTS Listed are some major projects included in the current Capital Improvements Plan (CIP), which estimates the cost of improvements and evaluates the need for public facilities. The CIP is updated annually and encompasses a period of five years. County Road 512 Resurfacing: The $3.5 million project consists of dual resurfacing of the westbound lanes between Roseland Road and US Highway 1 and the eastbound lanes between Easy Street and US Highway 1. The project requires the use of the full depth reclamation process which shortens the duration of the construction process, but requires special expertise and equipment. A Small County Outreach Program (SCOP) Grant from the Florida Department of Transportation will fund $2.4 million of the project with the remainder coming from gas taxes. Osprey Acres Floway and Nature Preserve: The 83.14 acres of undeveloped land purchased east of Osprey Marsh Treatment Facility will serve to create a pollutant removal system (stormwater park) that will remove nitrogen and phosphorus from Osprey Marsh's outflow water and increase the County's ability to meet proposed total maximum daily loads (TMDL) for nutrients discharged into the Indian River Lagoon. The cost for construction is estimated at $7.5 million and will be funded with an FDEP TMDL Grant, St. John's River Water Management District Cost -Share Grant, Florida House Appropriations Grant, and optional one cent sales tax. North County Commercial Septic to Sewer: The $3 million project will construct a gravity sewer system to service an area that has a land use designation of commercial properties on septic. The area currently has 38 existing structures with a total of 61 parcels. Indian River County Department of Utility Services is constructing a new gravity sanitary sewer system and sections of the 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. 6 South County Water Treatment Plant Well Construction and Rehabilitation: The Indian River County Department of Utility Services currently owns and operates six 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, the replacement of a well, and the rehabilitation of three wells at a cost of $2.5 million from the Utilities operating fund. 800 Mhz P25 Radio System Migration Project: To meet current operational standards, the 800 Mhz radio system will migrate to the Federal Communications Commission recommended Project 25 (P25) which is the standard for the design and manufacture of interoperable digital two way communications for public safety organizations. The $5.9 million phased upgrade of the system over a five year period will be funded from optional one cent sales tax. The following major projects were completed in fiscal year 2017: GoLine Bus Transfer Hub: GoLine is the Indian River County public transportation system with bus service on 14 fixed routes throughout the County. The main hub facility was completed at a cost of $1.9 million. Shooting Range Skeet & Trap Facility Improvements: The $1.7 million improvements at the Indian River County Shooting Range consisted of national competition skeet and trap fields, hi/low trap houses, and a 15 station sporting clays course. Sheriffs Helicopter Hangar & Helipad: The Sheriff Office's on-site helicopter hangar building and helipad was constructed at a cost of $2.3 million. Sebastian Corners Retail Center: The 2.35 acre property located on US Highway 1 in Sebastian was purchased for $2.7 million to relocate the North County offices of the Clerk of the Circuit Court and Comptroller, Property Appraiser, Tax Collector, Utilities Department, and Veterans Services. Water Lily at McKee Botanical Garden LOCAL ECONOMY 8 PRINCIPAL EMPLOYERS NUMBER OF EMPLOYEES PERCENTAGE OF TOTAL COUNTY EMPLOYMENT 1. School District of Indian River County 2. Indian River Medical Center 3. Indian River County* 4. Publix Supermarkets 5. Piper Aircraft Inc. 6. Wal-Mart 7. Sebastian River Medical Center 8. John's Island 9. Medical Data Systems 10. City of Vero Beach Principal Employers' Total: 2,073 1,753 1,501 1,250 904 693 595 584 500 409 10,262 3.40% 2.88% 2.46% 2.05% 1.48% 1.14% 0.98% 0.96% 0.82% 0.67% 16.84% Total Employed in County: 60,921 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, Supervisor of Elections, Property Appraiser, Sheriff, Tax Collector, and Clerk of the Circuit Court and Comptroller. $57,107 141.667 10.1% $47,689 $48,378 4.4 141.475 15.2% 138,028 15.2% $51,041 138,694 13.7% $52,855 139,446 11.3% 2008 2009 2010 2011 2012 Population —4Unemployment Rate $54,448 139,586 8.8% 2013 Indian River County continues to experience signs of improvement in the economy. Total taxable property tax values increased from $14.3 billion in 2016 to $16.3 billion in 2017. Construction activity also saw a significant increase with 13% more building permits issued for new construction in 2017 over 2016. The population of the County has been steadily increasing, growing to 148,962 in 2017. Unemployment has been decreasing, dramatically falling from 6.7% in 2016 to 4.6% in 2017. 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 nearly 9% of the total number of jobs in the County, are the School District of Indian River County, Indian River Medical Center, and Indian River County Government. $63,140 140,955 7.9% 2014 $67,978 $68,491 2015 146,410 6.7% 2016 Per Capita Personal Income (2017 Per Capita Personal Income information not available) 148,962 4.6% 2017 PERCENTAGE OF TOTAL ASSESSED VALUE PROPERTY TAXES The Board of County Commissioners and other taxing entities each set a property tax rate called a "millage rate". This rate is used to calculate overall property taxes. A "mill" is equal to $1 of tax for every $1,000 of assessed property value. The picture below illustrates how each dollar of the County -wide portion of the property tax bill is broken down. The County -wide portion is paid by all property owners within the County boundaries. If you own a home in Indian River County, the tax bill you pay each year funds much more than County Government. Depending on where you live, your tax bill may also include millage rates for taxes paid to cities, such as the City of Vero Beach, or a special taxing district, such as the Sebastian Inlet Taxing District. PRINCIPAL TAXPAYERS REAL PROPERTY ASSESSED VALUATION 1. Florida Power & Light 2. Disney Vacation Dev. Inc. 3. McGuire, Allen Robert Jr. 4. Windsor Properties 5. Johns Island Club, Inc. 6. Adult Communities Total Services, Inc. 7. Bellsouth Telecommunications 8. Health Care REIT, Inc. 9. TSO Vero Beach, LP 10. INEOS New Planet Bioenergy, LLC Principal Taxpayers' Total: $140,292,008 80,101,112 53, 869,142 52,586,721 42,540,303 31,961,755 29,480,482 27,785,306 24,201,486 22,751,761 505,570,076 0.86% 0.49% 0.33% 0.32% 0.26% 0.20% 0.18% 0.17% 0.15% 0.14% 3.10% otal County Taxable Valuation: $16,276,321,779 Source: Indian River County Property Appraiser Breakdown of the County -wide Portion of a Property Tax Bill Based on Taxable Value of $200,000 Total Taxes: $2,960.36 For illustrative purposes only. Amounts shown in the example do not include cities, unincorporated areas, or any applicable taxing districts within. Amounts shown are also net of applicable exemption amounts. *Note: The residents of the Town of Indian River Shores are not levied the Emergency Management Services District tax. IGEEMEIMEEKIMEE nwifflio THIS MOTT 19 LEGA! TINALR FOR ALL OESTS, PUBLIC AND PRIVATE 2 r imAwm How property taxes are calculated: [Assessed Value of Property minus Exemption(s)] = 1,000 x Total Millage Rate = Total Property Tax Indian River County School Board 7.4100 mills: $1,482.00, 50% Indian River County 3.3602 mills: $672.04, 23% Emergency Management Services District* 2.3010 mills: $460.20, 15% Special Districts Land Acquisition 1.4163 mills: Bond $283.26, 10% 0.3143 mills: $62.86, 2% 9 GOVERNMENT -WIDE FINANCIAL STATEMENTS STATEMENT OF NET POSITION The Statement of Net Position presents information on all the County's assets, liabilities, and deferred inflows/ outflows of resources. The difference is 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. In the case of the County, assets and deferred outflows of resources exceeded liabilities and deferred inflows by $1,000.5 million at the close of the fiscal year. The largest portion of the County's net position reflects its net investment in capital assets, such as land, buildings, infrastructure, intangibles, machinery, and equipment, less any related outstanding debt used to acquire those assets. These capital assets amount to $744.7 million, or 74% of the County's net position. $150.2 million, or 15%, represents resources that are subject to external restrictions on how they may be used. The remaining $105.6 million is unrestricted and may be used to meet the County's ongoing obligations to citizens and creditors. The increase in restricted net position was mainly due to an increase in revenues for state and federal grants, including hurricane reimbursements, and insurance proceeds. The increase in net investment in capital assets was a result of completed construction projects and decreased outstanding debt. The decrease in unrestricted net position is due to an increase in the net pension liability. 2016 Increase (Decrease) Assets Current and other assets Capital assets Total Assets $361.8 789.8 $1,151.6 Deferred Outflows of Resources Liabilities Other liabilities Long-term liabilities Total liabilities 47.8 $30.8 (2.6) 28.2 11.3 128.5 87.6 216.1 20.5 (6.9) 13.6 Deferred Inflows of Resources 5.1 3.6 Net Position Net investment in capital assets Restricted Unrestricted Total net position 739.8 132.1 106.3 $978.2 4.9 18.1 (0.7) $22.3 (Chart in millions) 4 STATEMENT OF ACTIVITIES The Statement of Activities presents information showing how the County'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. Increase (Decrease) Percent Change REVENUES Program revenues: Charges for services Operating grants/contributions Capital grants/contributions General revenues: Property taxes Sales taxes Franchise fees Other Total revenues EXPENSES General Government Public safety Physical environment Transportation Economic environment Human services Culture/recreation Court related Interest and fiscal charges Water and sewer Solid waste Golf course Building Total expenses $75.9 24.6 11.0 2.9% 36.6% 17.3% 84.7 24.4 9.3 7.2 237.1 6.5% 4.9% (2.2%) (30.6%) 7.3% 27.5 77.6 1.4 28.2 0.4 7.8 14.7 7.1 0.9 35.4 12.7 2.6 2.7 219.0 (5.8%) 7.3% 64.3% 2.5% 0.0% 2.6% 8.8% 2.8% (11.1%) 9.0% 14.2% 3.8% 29.6% 6.0% Increase (decrease) in net position Net position - Beginning Net position - Ending 978.2 $1,000.5 (Chart in millions) 1.9% $978.2 2.3% Fourth of July fireworks over'the Indian River. Photo courtesy of JPRlmages. com 11 GOVERNMENTAL FUNDS 12 REVENUES REVENUE SOURCES 2017 2016 Property Taxes Intergovernmental Sales & Use Taxes Charges for Services Permits, Fees, and Special Assessments Miscellaneous Gasoline Tax Tourist Tax $90,192,496 30,031,350 17,623,741 16,006,929 15,900,775 6,392,927 3,821,095 2,817,766 Judgments, Fines, Forfeits�IL_ 1,620,964 1,302,302 1,287,415 Other Taxes Interest $84,695,191 33,535,027 16,858,894 15,532,928 16, 530,179 8,158,393 3,741,935 2,433,491 1,672,773 1,353,020 1,133,215 Total Revenues $186,997,760 $185,645,046 Miscellaneous, 3.4% Gasoline Tax, 2.0% Tourist Tax, 1.5% ▪ Judgments, Fines, Forfeits, 0.9% ▪ Other Taxes, 0.7% Interest, 0.7% Overall, general revenues for fiscal year 2017 increased from the prior year. This is due mainly to increased property tax values and tax rates. The County's primary source of revenue is property taxes, amounting to $90.2 million, or 48.2%, of Governmental Funds revenues in 2017. This is an increase of $5.5 million from fiscal year 2016. EXPENDITURES Expenditures for fiscal year 2017 totaled $181.3 million, which was an increase over the previous year. By far, the largest expenditure of County funds is for Public Safety, increasing this year mainly due to the completion of the helicopter hangar and increases in salaries and benefits. Physical environment increased due in part to hurricane related repairs at the Lateral D canal and for professional services for an aquatic plant pilot study. Culture and Recreation decreased due to the completion of the South County Intergenerational Facility in fiscal year 2016. The newly completed GoLine Bus Transfer Hub Photo courtesy of the Senior Resource Association EXPENDITURES 2017 2016 Public Safety Transportation General Government Capital Outlay Culture/Recreation Human Service Court Related Debt Service Physical Environment Economic Environment $83,397,539 26,562,596 24,681,861 12,777,795 12,013,338 8,116,910 6,755,050 5,230,520 1,300,862 437,031 $77,316,218 27,505,659 22,693,234 13,329,391 13,562,765 7,868,392 6,605,682 5,215,007 788,803 424,593 otal Expen o tires Makij Human Services, 4.5% Court Related, 3.7% Debt Service, 2.9% • Physical Environment, 0.7% Economic Environment, 0.3% 13 GENERAL FUND The General Fund is the chief operating fund of the County. The ending fund balance as of September 30, 2017 was $47.4 million. In 2010, the County implemented the Governmental Accounting Standards Board (GASB) Statement 54. The objective of Statement 54 is to provide clearer fund balance classifications that can be more consistently applied and by clarifying the existing governmental fund type definitions. The fund balance classifications used are: • Nonspendable - Amounts that cannot be spent because they are not in spendable form, such as inventory, prepaid items, and advances to other funds. • Restricted - Use of these resources is based on constraints imposed by external parties, such as creditors, grantors, contributors, or laws and regulations. Fund Balance Comparison Nonspendable Restricted Committed Unassigned Total 2017 $1,183,875 1,246,278 1,655,789 43,334,507 $47,420,449 2016 $371,121 1,000,000 1,166,830 45,909,787 $48,447,738 • Committed - Amounts that can only be spent by approval by a County ordinance by the Board of County Commissioners. • Unassigned - Amounts in the general fund that do not meet any other fund balance classifications. $52.9 $56.5 $56.8 $55.6 $54.3 $49.9 Fund Balance Trend (in millions as of September 30) $51.7 $50.3 $48.4 $47.4 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 The Atlantic Ocean from one of Indian River County beaches .14 Photo courteay of Laura McIver- Budgeted Amounts Original Actual Amounts Variance with Final Budget Positive (Negative) Revenues Taxes Permits, fees and special assessments Intergovernmental Charges for services Judgments, fines and forfeits Interest Miscellaneous Expenditures General government Public safety Physical environment Transportation Economic environment Human services Culture/recreation Court related Total revenues Total expenditures Excess of revenues over (under) expenditures Other Financing Sources (Uses) Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year $58,366,967 9,017,875 12,558,196 8,671,955 1,028,399 154,195 4,106,316 93,903,903 20,693,370 45,566,861 323,682 800,000 432,221 4,368,656 9,705,321 5,760,270 87,650,381 6,253,522 853,399 (9,917,088) (9,063,689) (2,810,167) 2,810,167 $58,366,967 9,017,875 16,028,792 8,108,310 1,094,342 154,195 4,257,063 97,027,544 22,337,406 46,439,989 421,305 5,549,941 441,174 4,514,279 10,678,806 5,926,541 96,309,441 $59,268,103 9,407,266 16,054,567 8,080,904 1,182,194 389,073 5,015,643 99,397,750 20, 646, 898 46,157, 514 378,006 4,539,860 433,553 4,239,760 9,611,836 6,063,329 92,070,756 $901,136 389,391 25,775 (27,406) 87,852 234,878 758,580 2,370,206 1,690,508 282,475 43,299 1,010,081 7,621 274,519 1,066,970 (136,788) 4,238,685 718,103 7,326,994 6,608,891 1,600,807 (9,917,276) (8,316,469) (7,598,366) 7,598,366 1,562,993 (9,917,276) (8,354,283) (1,027,289) 48,447,738 $47,420,449 (37,814) (37,814) 6,571,077 This chart shows the original and final amended budget for the General Fund for fiscal year 2017. There was an $8.7 million increase in operating appropriations between the original and final amended budget. This included $4.8 million in grants appropriations and prior year rollovers for the Senior Resource Association (SRA) to provide County -wide public transportation, $0.5 million for All Aboard Florida legal and professional services, $0.3 million in building and equipment maintenance including replacement carpeting at the library, $0.6 million in salary and benefit increases due to hurricane - related overtime, and $0.2 million in hurricane related operating expenses. Actual expenditures for the fiscal year 2017 were $4.2 million lower than anticipated. This included $1.0 million in SRA grant costs not yet expended, $1.0 million in unspent legal, professional, and other contractual services, and $0.4 million in unspent salary and benefits expenditures. 15 CAPITAL ASSETS 16 CAPITAL ASSETS 2017 2016 Buildings and Improvements Land Infrastructure Right -of -Way Construction in Progress Equipment Intangibles Total Capital Assets $348.2 162.0 156.2 58.6 34.0 23.5 4.7 $787.2 (Chart in millions) $353.4 161.3 166.8 57.6 26.0 19.8 4.8 $789.7 The County's investment in capital assets for its governmental and business -type activities on September 30, 2017 amounted to $787.2 million, net of accumulated depreciation. This investment in capital assets includes land, right-of-way, buildings and improvements, intangibles, equipment, infrastructure, and construction in progress. The overall decrease in the County's investment in capital assets for fiscal year 2017 was less than 1% over the previous year. Fiscal year 2017 saw an increase in equipment primarily due to the purchase of new voting equipment ($0.9 million) and fire rescue vehicles and equipment ($2.4 million). There was an increase in construction in progress due to the 800mhz P25 compliance project ($2.1 million), Fire Station #14 construction ($2.0 million) and various road and sidewalk projects ($2.6 million). Decreases occurred in buildings and improvements as a result of increasing depreciation on existing assets. Right-of-way, 7.4% Construction in Progress, 4.3% Equipment, 3.0% Intangibles, 0.6% Photos of the completed Indian River County Sheriff's helicopter hangar Photos courtesy of the Indian River County Sheriff DEBT At the end of fiscal year 2017, the County had $43.9 million in outstanding long-term debt. Of this amount, $15.7 million is debt backed by the full faith and credit of the government. Outstanding debt decreased by $7.7 million during fiscal year 2017 due to scheduled annual debt payments. The chart below shows the amount of debt per capita within the County. The debt per capita has been steadily decreasing over the last 10 fiscal years falling by another $58 during fiscal year 2017. $910 $862 $818 $756 2008 2009 2010 2011 2017 2016 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 Debt Per Capita $666 $581 (Chart in millions) $523 $412 $15.7 $19.7 6.2 6.7 5.2 6.2 16.8 19.0 $43.9 $51.6 $353 $295 2012 2013 2014 2015 2016 2017 17 CASH AND INVESTMENTS In accordance with the Florida Statutes, the County adopted investment policies which guide the investment of County funds. These policies establish 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 Clerk invests the surplus funds in accordance with the policy guidelines and earned $2.3 million in interest income in fiscal year 2017. Cash and investments totaled $357.6 million as of September 30. 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. Total cash was $127.0 million. Investments consist of U.S. Treasury Securities and U.S. Government Agency Securities. Other Market Rate Investments consist of the Florida PRIME Fund, the Florida Trust Day to Day and Short Term Bond Funds, and the Florida Cooperative Liquid Assets Securities System. Investments totaled $230.6 million and the weighted average maturity was 0.92 years. CASH & INVESTMENTS AMOUNT PERCENTAGE OF PORTFOLIO U.S. Agencies Cash U.S. Treasuries Other Market Rate Investments $129,531,640 127,030,941 86, 849,111 14,213,772 36.2% 35.5% 24.3% 4.0% $357,625,464 100% 18