HomeMy WebLinkAbout2019-203E
Osprey Acres Stormwater Park & Nature Preserve
Constructed during fiscal year 2019 at a cost of $7.7 million, this 83.7-acre facility is home
to a range of natural Florida ecosystems including uphill pine, mesic oak hammock, a
small scrub area, and now manmade wetlands. Having these various habitats promotes
a wealth of biodiversity within the property.
Originally slated for more than 400 home parcels, Osprey Acres was purchased by Indian
River County to preserve these fragile ecosystems and aide in further treatment of
stormwater and reverse osmosis reject water before entering the Indian River Lagoon.
Waters for treatment come from both the Osprey Marsh and untreated canal water.
Special treatment cells and a constructed serpentine floway filter the surface water,
removing nutrients that could cause harmful algal growth in the Lagoon. It also provides
essential wetland habitat for birds, mammals, reptiles, amphibians, fish and insects – up
to which 45% are rare and endangered.
Photo is courtesy of Alexis Peralta, Indian River County Stormwater Educator &
Fertilizer Enforcement Officer
INDIAN RIVER COUNTY, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR
OCTOBER 1, 2018
THROUGH
SEPTEMBER 30, 2019
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, 2019
Board of County Commissioners as of September 30, 2019
Bob Solari Peter D. O'Bryan
Chairman Joseph E. Flescher
Susan Adams Tim Zorc
Vice-Chairman
Current Board of County Commissioners (effective November 19, 2019)
Susan Adams Peter D. O'Bryan
Chairman Bob Solari
Joseph E. Flescher Tim Zorc
Vice-Chairman
Constitutional Officers as of September 30, 2019
Jeffrey R. Smith Wesley Davis
Clerk of the Ciruit Court and Comptroller Property Appraiser
Leslie R. Swan Deryl Loar Carole Jean Jordan
Supervisor of Elections Sheriff Tax Collector
County Management
Jason Brown Dylan Reingold
County Administrator County Attorney
Michael Zito Kristin Daniels Rich Szpyrka
Assistant County Administrator Budget Director Director of Public Works
Phil Matson 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, 2019
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, 2019
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 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 109
Schedule of the County's Proportionate Share of the Net Pension Liability - Retiree
Health Insurance Subsidy (HIS) Program Defined Benefit Pension Plan 109
Schedule of the County's Contributions - FRS Defined Benefit Pension Plan 110
Schedule of the County's Contributions - HIS Defined Benefit Pension Plan 110
Schedule of Changes in Net OPEB Liability and Related Ratios 111
Schedule of OPEB Contributions 112
Notes to Schedule of OPEB Contributions 113
Schedule of OPEB Investment Returns Multiyear 114
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES:
Combining Balance Sheet - Nonmajor Governmental Funds 120
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances - Nonmajor Governmental Funds 128
Budgetary Comparison Schedules 134
Combining Statement of Net Position - Internal Service Funds 164
Combining Statement of Revenues, Expenses, and
Changes in Fund Net Position - Internal Service Funds 165
Combining Statement of Cash Flows - Internal Service Funds 166
Combining Statement of Changes in Assets and Liabilities - Agency Fund 170
Indian River County, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS- CONTINUED
Fiscal Year Ended September 30, 2019
STATISTICAL SECTION
Page
Number
SCHEDULE 1 Net Position by Component - Last Ten Fiscal Years 172
SCHEDULE 2 Changes in Net Position - Last Ten Fiscal Years 174
SCHEDULE 3 Fund Balances, Governmental Funds - Last Ten Fiscal Years 178
SCHEDULE 4 Changes in Fund Balances, Governmental Funds -
Last Ten Fiscal Years 180
SCHEDULE 5 Tax Revenues by Source, Governmental Funds -
Last Ten Fiscal Years 182
SCHEDULE 6 Assessed Value and Actual Value of Taxable Property -
Last Ten Fiscal Years 183
SCHEDULE 7 Property Tax Rates - Direct and Overlapping Tax Rates -
Last Ten Fiscal Years 184
SCHEDULE 8 Principal Property Taxpayers - Year 2019 and Year 2010 186
SCHEDULE 9 Property Tax Levies and Collections - Last Ten Fiscal Years 187
SCHEDULE 10 Ratios of Outstanding Debt by Type - Last Ten Fiscal Years 188
SCHEDULE 11 Ratio of Net General Bonded Debt Outstanding to Taxable Value
and Net Bonded Debt Per Capita - Last Ten Fiscal Years 190
SCHEDULE 12 Computation of Legal Debt Margin 191
SCHEDULE 13 Direct and Overlapping Governmental Activities Debt 192
SCHEDULE 14 Pledged Revenue Coverage - Water and Sewer Revenue Bonds -
Last Ten Fiscal Years 194
Indian River County, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS- CONTINUED
Fiscal Year Ended September 30, 2019
Page
Number
SCHEDULE 15 Demographic and Economic Statistics - Last Ten Years 196
SCHEDULE 16 Principal Employers - Year 2019 and Year 2010 197
SCHEDULE 17 Building Permits - Last Ten Fiscal Years 198
SCHEDULE 18 Operating Indicators by Function/Program - Last Ten Fiscal Years 200
SCHEDULE 19 Full Time Equivalent County Government Employees
by Function/Program - Last Ten Fiscal Years 204
SCHEDULE 20 Capital Asset Statistics by Function/Program - Last Ten Fiscal Years 206
SCHEDULE 21 Department of Utility Services - Historical Rate Structure -
Last Ten Fiscal Years 210
SCHEDULE 22 Water and Wastewater Customers - Last Ten Fiscal Years 212
SCHEDULE 23 Top 10 High Volume Customers of Utility Services 213
SCHEDULE 24 Capacity Charges - Utilities Department - Last Ten Fiscal Years 214
SCHEDULE 25 Pledged Revenues for Spring Training Facility Revenue Bonds, Series 2001-
Last Ten Fiscal Years 215
Indian River County, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS- CONTINUED
Fiscal Year Ended September 30, 2019
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 217
County Management Letter 219
Independent Accountants' Report 221
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 222
Schedule of Expenditures of Federal Awards and State Projects 223
Notes to Schedule of Expenditures of Federal Awards and State Projects 228
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 229
Schedule of Findings and Questioned Costs 231
Summary Schedule of Prior Audit Findings 233
Impact Fee Affidavit 234
Indian River County, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS- CONTINUED
Fiscal Year Ended September 30, 2019
AUDITOR GENERAL REPORTS SECTION
Page
Number
BOARD OF COUNTY COMMISSIONERS
Independent Auditors’ Report 236
Fund Financial Statements 238
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 314
Management Letter 316
Independent Accountants' Report 318
CLERK OF THE CIRCUIT COURT AND COMPTROLLER
Independent Auditors’ Report 320
Fund Financial Statements 322
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 334
Management Letter 336
Independent Accountants' Report 338
PROPERTY APPRAISER
Independent Auditors’ Report 340
Fund Financial Statements 342
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 351
Management Letter 353
Independent Accountants' Report 355
Indian River County, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS-CONTINUED
Fiscal Year Ended September 30, 2019
Page
Number
SHERIFF
Independent Auditors’ Report 358
Fund Financial Statements 360
Independent Auditors' Report on Internal Control over Financial Reporting and on
Compliance And Other Matters Based on an Audit of Financial Statements
Performed In Accordance with Government Auditing Standards 371
Management Letter 373
SUPERVISOR OF ELECTIONS
Independent Auditors’ Report 376
Fund Financial Statements 378
Independent Auditors' Report on Internal Control over Financial Reporting and on
Compliance And Other Matters Based on an Audit of Financial Statements
Performed In Accordance with Government Auditing Standards 388
Management Letter 390
TAX COLLECTOR
Independent Auditors’ Report 394
Fund Financial Statements 396
Independent Auditors' Report on Internal Control over Financial Reporting and on
Compliance And Other Matters Based on an Audit of Financial Statements
Performed In Accordance with Government Auditing Standards 408
Management Letter 410
Independent Accountants' Report 412
i
March 16, 2020
To the Citizens of Indian River County:
The Comprehensive Annual Financial Report of Indian River County, Florida for the fiscal year ended
September 30, 2019, 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, 2019 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.
JEFFREY R. SMITH, CPA, CGFO, CGMA
Clerk of Circuit Court & Comptroller
1801 27th Street
Vero Beach, FL 32960
Telephone: (772) 226-1945
ii
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 June 1. These
operating budgets include proposed expenditures and the sources to finance them as set forth in Section
28.36, Florida Statutes.
Constitutional Officers, all departments controlled by the Board of County Commissioners, and outside
State and local agencies submit their proposed budgets to the Office of Management and Budget for
assistance, review and compilation. The County Administrator then reviews all the budgets of the
County departments, state agencies and nonprofit organizations, and makes his budget recommendations
to the Board of County Commissioners 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.
iii
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 154,939 was a 2.05% 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 30.1%. 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 8.94% of total employed persons, are the School
District, Cleveland Clinic Indian River Hospital and Indian River County Government. The
unemployment rate has decreased from 3.9% in 2018 to 3.7% in 2019.
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 $17.3 billion in 2018 to $18.5 billion in 2019. Construction activity saw a
significant increase with 31.23% more building permits issued for new construction in 2019 over 2018.
Please see Statistical Schedules 6 and 17 for more information.
The citrus industry in Indian River County saw an increase in production of 11% from 2.6 million boxes
in 2018 to 2.9 million in 2019. This ranked the County 8th among all Florida counties in total citrus
production. The acreage dedicated to citrus production within the County saw an 18% decrease from
19,228 acres in 2018 to 15,708 acres in 2019, ranking Indian River County 8th among all Florida
counties.
iv
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:
County Road 512(CR512) Resurfacing & Shoulder Widening from Myrtle Street to 125th
Avenue – The $2.0 million project consists of adding five foot paved shoulders to accommodate
bicycle lanes, milling and resurfacing the roadway. Upgrades to existing traffic signal
equipment, replacing school zone flashers, and installation of a traffic signal at Willow Street &
CR512 will also be completed. Funding is provided by a Florida Department of Transportation
(FDOT) Small County Outreach Program (SCOP) grant and gas taxes.
49th Street Milling and Resurfacing from 58th Avenue to 31st Avenue – The milling and
resurfacing of the roadway, adding sidewalks and shoulders, and replacing signs and pavement
markings will be constructed. The $1.0 million project will be funded by a FDOT SCOP grant
and gas taxes.
Sector 5 Beach Restoration - The $6.3 million Sector 5 project is a 3.1 mile section of shoreline
that sustained damages from Hurricane Matthew (2016), Hurricane Irma (2017) and Hurricane
Dorian (2019). The project will place approximately 123,800 cubic yards of beach compatible
sand within the project area. Funding is provided by Federal Emergency Management Agency
grants, Florida Department of Environmental Protection (FDEP) grants and local option tourist
tax.
Jones Pier Wetland Restoration and Conservation Improvements – The planned improvements
include a 4-acre saltmarsh with boardwalks, parking area with pavilion and restroom, restored
hydric hammock, 100 foot living shoreline, hiking trail and elevating the 1920s Bungalow
Cottage. The $1.4 million project will be funded from Optional Sales Tax, Indian River Lagoon
National Estuary Program grant, Florida Inland Navigation District grant and FDEP grant.
State Road 60 (SR60) and 43rd Avenue Intersection Improvements – Through the County
Incentive Grant Program with FDOT, improvements will be completed at the intersection of
SR60 and 43rd Avenue. The project includes adding right turn lanes along SR60, 43rd Avenue
reconstruction and widening from 2-lane undivided to 4-lane divided roadway, mill and
resurface existing pavement, add bike lanes, pedestrian sidewalks and upgrade existing curb
ramps to meet Americans with Disabilities Act standards. The FDOT and County agreed to share
equal funding of fifty percent of the total estimated construction costs of $16.1 million. Optional
sales tax will provide funding.
v
Major projects or initiatives that were completed during fiscal year 2019 are listed below:
Osprey Acres Floway and Nature Preserve - The 83 acre stormwater park that removes nitrogen
and phosphorus from Osprey Marsh's outflow water and increases the County's ability to meet
proposed total maximum daily loads (“TMDL”) for nutrients discharged into the Indian River
Lagoon was completed at a cost of $7.7 million.
North County Commercial Septic to Sewer – The $3.0 million gravity sanitary sewer system was
built to serve commercial areas along US Highway #1 and in the City of Sebastian.
North County Office at Sebastian Corners Renovations – This $2.6 million renovation to the
commercial plaza known as Sebastian Corners was constructed for the relocation of the North
County offices.
1st Street SW and 43rd Avenue Intersection Improvements – The $2.2 million project included
addition of turn lanes, milling and resurfacing the roadway, canal enclosure, traffic signal
enhancements, paved shoulders, curbing and sidewalk.
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 of the policy was to provide short-term and long-term investment guidelines. This policy also
outlines the same criteria as noted in the County’s investment policy, as well as including performance
measures. The County's policy is to fund the annual OPEB obligation monthly.
The County’s goal is to maintain an overall fund balance equal to 30% of the annual budget in all of its
taxing funds, which provides a three month cushion for operating expenses. The three month reserve is
necessary due to the timing of property tax levies in the State of Florida. Although the fiscal year begins
in October, property tax monies are not typically received until mid to late December, which would
require the County to operate in a deficit position for the first two months of the fiscal year without this
reserve. Reserve funds are needed in order to allow the County to respond to events without facing
serious financial burdens. County policy is to maintain fund balance levels and prohibit the use of fund
balance to fund recurring expenditures. Information on the County’s fund balance policy can be found
in County Note 16.
vi
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, 2018. This was
the 36th 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, 2018. This was the fourth 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 2018-2019 fiscal year. This was the 28th 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
vii
Indian River County BCC Departmental Organization
Residents of
Indian River County
Clerk of Circuit
Court Sheriff Supervisor of
Elections
Board of
County
Commissioners
Property
Appraiser
Tax
Collector
Assistant
County Administrator/
General Services
Finance
Department
Public Works
County Attorney
Geographic Info
Systems
Emergency
Services
Community
Development
Office of
Management & Budget
Wastewater
Treatment
Water
Production
General &
Engineering
Customer
Service
Wastewater
Collection
Solid Waste
Disposal District
Water
Distribution
Biosolids
Operations Emergency
Base Grant
Animal
Control
Fire / Rescue
Radiological
Emergency
Preparedness
911
Coordinator
Emergency
Management
County Administrator
Golf Course Planning
Division
Soil & Water
Conservation
Environmental
Planning &
Code Enforcement
Ag
Extension
Building
Division
Metropolitan
Planning
Organization
IRCLHAP /
SHIP Program
Rental
Assistance
Assistant to
Administrator
Commission Office
Veterans
Services
Shooting
Range
Libraries
Risk
Management
Computer
Services
Purchasing
Mailroom
Switchboard
Human
Services
Human
Resources
Utilities
Services
Parks and
Recreation
Secondary
Road
Construction
Roads &
Bridges
Facilities
Management
Stormwater
Coastal
Engineering
Fleet
Management
Engineering
Traffic
Engineering
Telecommunication
Legislative Affairs &
Communications Manager
viii
Rehmann Robson
5070 North Highway A1A,
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
CPAs & Consultants Wealth Advisors Corporate Investigators
Rehmann is an independent member of Nexia International.
INDEPENDENT AUDITORS’ REPORT
March 13, 2020
The Honorable Board of County Commissioners
and Constitutional
Officers Indian River
County, Florida
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-
type activities, each major fund and the aggregate remaining fund information of Indian River County,
Florida (the “County”), as of and for the year ended September 30, 2019, 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.
1
The Honorable Board of County Commissioners
Indian River County, Florida
March 13, 2020
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, 2019,
and the respective changes in financial position and, where applicable, cash flows thereof, and the
respective budgetary comparison for the general fund and each major special revenue fund, for the
year then ended in accordance with accounting principles generally accepted in the United States of
America.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis and the schedules for the pension and other postemployment benefit plans, as
listed in the table of contents, be presented by management to supplement the basic financial
statements. Such information, although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting
for placing the basic financial statements in an appropriate operational, economic, or historical context.
We have applied certain limited procedures to the required supplementary information in accordance
with auditing standards generally accepted in the United States of America, which consisted of inquiries
of management about the methods of preparing the information and comparing the information for
consistency with management’s responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an opinion
or provide any assurance on the information because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the County’s basic financial statements. The combining and individual fund
financial statements and schedules, and introductory and statistical sections are presented for purposes
of additional analysis and are not a required part of the basic financial statements.
The combining and individual fund financial statements and schedules are the responsibility of
management and were derived from and relate directly to the underlying accounting and other records
used to prepare the basic financial statements. Such information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the basic financial statements or to the basic financial statements themselves,
and other additional procedures in accordance with auditing standards generally accepted in the United
States of America. In our opinion, the information is fairly stated, in all material respects, in relation
to the basic financial statements as a whole.
The introductory section and statistical tables have not been subjected to the auditing procedures
applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or
provide any assurance on them.
2
The Honorable Board of County Commissioners
Indian River County, Florida
March 13, 2020
Page 3
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March 13,
2020, 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.
3
4
Indian River County, Florida
Management’s Discussion and Analysis
For the Year Ended September 30, 2019
5
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, 2019. 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 2018.
The assets and deferred outflows of resources of the County exceeded its liabilities and deferred
inflows by $1,025.5 million (net position). Of this amount, $72.0 million (unrestricted net
position) may be used to meet the government’s ongoing obligations to its citizens and creditors.
Further information can be found on page 8.
The government’s total net position increased by $22.3 million or 2.2%. Governmental activities
accounted for $14.9 million of this increase and business-type activities accounted for the
remaining $7.4 million. Further information can be found on page 10.
Governmental activities expenses reflected a 9.7% increase ($183.6 million in 2018 to $201.4
million in 2019) and business-type activities expenses reflected a 10.9% increase ($60.7 million
in 2018 to $67.3 million in 2019). Further information can be found on page 10.
Unassigned fund balance for the general fund was $52.8 million, or an 10.2% increase from the
prior year general fund unassigned fund balance of $47.9 million.
OVERVIEW OF FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the County’s basic financial
statements. The County’s basic financial statements are composed of three elements: 1) government-wide
financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report
also contains other supplementary information in addition to the basic financial statements themselves.
Government-wide financial statements
The government-wide financial statements are designed to provide readers with a broad overview of the
County’s finances, in a manner similar to a private-sector business.
The Statement of Net Position presents information on all of the County’s assets, liabilities, and deferred
inflows/outflows of resources, with the difference reported as net position. Over time, increases or
decreases in net position may serve as a useful indicator of whether the financial position of the County is
improving or deteriorating.
Indian River County, Florida
Management’s Discussion and Analysis
For the Year Ended September 30, 2019
6
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.
Indian River County, Florida
Management’s Discussion and Analysis
For the Year Ended September 30, 2019
7
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 115-161 of this report.
The County adopts an annual appropriated budget for its general fund. A budgetary comparison statement
has been provided for the general fund to demonstrate compliance with this budget. The basic
governmental fund financial statements can be found on pages 24-35 of this report.
Proprietary funds. The County maintains two different types of proprietary funds. Enterprise funds are
used to report the same functions presented as business-type activities in the government-wide financial
statements. The County uses enterprise funds to account for its water and sewer utility, solid waste
disposal district, golf course, and building department. Internal service funds are an accounting device
used to accumulate and allocate costs internally among the County’s various functions. The County uses
internal service funds to account for fleet management, self-insurance, and information technology.
Because these services predominantly benefit governmental rather than business-type functions, they
have been included within governmental activities in the government-wide financial statements.
Proprietary fund financial statements provide the same type of information as the government-wide
financial statements, only in more detail. The proprietary fund financial statements provide separate
information for the water and sewer utility, solid waste disposal district, golf course, and building
department, which are considered to be major funds of the County. Conversely, internal service funds are
combined into a single, aggregated presentation in the proprietary fund financial statements. Individual
fund data for the internal service funds is provided in the form of combining statements behind the notes
to the financial statements on pages 163-167 of this report. The basic proprietary fund financial
statements can be found on pages 37-43 of this report.
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside
the government. The Indian River County OPEB Trust holds the assets of the County’s other
postemployment benefits. Fiduciary funds are not reflected in the government-wide financial statements
because the resources of those funds are not available to support the County’s own programs. The
accounting used for fiduciary funds is much like that used for proprietary funds. The basic fiduciary fund
financial statements can be found on pages 44-45 of this report.
Notes to the financial statements
The notes provide additional information that is essential to a full understanding of the data provided in
the government-wide and fund financial statements. The notes to the financial statements can be found on
pages 47-108 of this report.
Indian River County, Florida
Management’s Discussion and Analysis
For the Year Ended September 30, 2019
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
109-114 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 $1,025.5 million at the close of the fiscal year.
Indian River County Net Position (In Millions)
Governmental Business-type
Activities Activities Total
2019 2018 2019 2018 2019 2018
Current and other assets $ 286.8 $ 269.7 $ 130.9 $ 143.9 $ 417.7 $ 413.6
Capital assets 580.6 570.4 217.1 215.7 797.7 786.1
Total assets 867.4 840.1 348.0 359.6 1,215.4 1,199.7
Deferred outflows of resources 50.4 54.5 3.7 4.5 54.1 59.0
Other liabilities 158.6 140.3 19.1 17.1 177.7 157.4
Long-term liabilities 33.9 39.8 12.4 33.9 46.3 73.7
Total liabilities 192.5 180.1 31.5 51.0 224.0 231.1
Deferred inflows of resources 18.5 22.6 1.5 1.8 20.0 24.4
Net position:
Net investment in capital assets 569.4 553.5 212.2 197.9 781.6 751.4
Restricted 171.9 159.4 - - 171.9 159.4
Unrestricted (34.5) (21.0) 106.5 113.4 72.0 92.4
Total net position $ 706.8 $ 691.9 $ 318.7 $ 311.3 $ 1,025.5 $ 1,003.2
Governmental Activities
In governmental activities, the increase in restricted net position was mainly due to an increase in net
position restricted for capital projects. This increase was caused by greater optional sales tax revenues
offset by a decrease in expenditures for projects to be completed in future fiscal years. 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 was due to an increase in the net pension liability.
Business-type Activities
In business-type activities, the increase in invested in capital assets resulted from an increase in capital
purchases as well as decreased outstanding debt. The decrease in unrestricted net position was due to the
write-off of outstanding utilities accounts under the amnesty program approved during the fiscal year.
8
Indian River County, Florida
Management’s Discussion and Analysis
For the Year Ended September 30, 2019
9
By far, the largest portion of the County’s net position (76% or $781.6 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 (17% or $171.9 million) represents resources that are subject to
external restrictions on how they may be used. The remaining balance of the unrestricted net position
(7% or $72.0 million) may be used to meet the government’s ongoing obligations to its citizens and
creditors.
Indian River County, Florida
Management’s Discussion and Analysis
For the Year Ended September 30, 2019
10
Indian River County Changes in Net Position (In Millions)
Governmental Business-type
Activities Activities Total
2019 2018 2019 2018 2019 2018
Revenues:
Program revenues:
Charges for services $ 28.9 $ 27.3 $ 56.7 $ 55.5 $ 85.6 $ 82.8
Operating grants/contributions 29.4 28.8 0.008 1.5 29.4 30.3
Capital grants/contributions 4.2 7.1 14.0 6.8 18.2 13.9
General revenues:
Property taxes 105.2 98.6 - - 105.2 98.6
Sales taxes 27.5 27.1 - - 27.5 27.1
Franchise fees 9.1 9.4 - - 9.1 9.4
Other 12.2 5.7 3.8 1.3 16.0 7.0
Total revenues 216.5 204.0 74.5 65.1 291.0 269.1
Expenses:
General government 31.4 28.3 - - 31.4 28.3
Public safety 100.6 86.0 - - 100.6 86.0
Physical environment 1.9 1.6 - - 1.9 1.6
Transportation 31.2 34.9 - - 31.2 34.9
Economic environment 0.5 0.4 - - 0.5 0.4
Human services 9.6 9.3 - - 9.6 9.3
Culture/recreation 17.9 15.4 - - 17.9 15.4
Court related 7.9 7.0 - - 7.9 7.0
Interest and fiscal charges 0.4 0.7 - - 0.4 0.7
Water and sewer - - 45.1 38.3 45.1 38.3
Solid waste - - 14.7 15.7 14.7 15.7
Golf course - - 2.9 2.8 2.9 2.8
Building - - 4.6 3.9 4.6 3.9
Total expenses 201.4 183.6 67.3 60.7 268.7 244.3
Increase (decrease) in net position before transfers 15.1 20.4 7.2 4.4 22.3 24.8
Transfers (0.20) (0.08) 0.20 0.08 - -
Increase (decrease) in net position 14.9 20.4 7.4 4.4 22.3 24.8
Net position - beginning 691.9 691.7 311.3 308.8 1,003.2 1,000.5
Restatement to implement GASB 75 - (20.2) - (1.9) - (22.1)
Net position - ending $ 706.8 $ 691.9 $ 318.7 $ 311.3 $ 1,025.5 $ 1,003.2
Indian River County, Florida
Management’s Discussion and Analysis
For the Year Ended September 30, 2019
11
Governmental Activities
Overall program revenues decreased $0.7 million.
Capital grants and contributions decreased $2.9 million due to the completion of the Osprey Acres
project. This was offset by an increase in charges for services of $1.6 million due to increased
service fee collections in general government and court-related activities.
Overall general revenues increased by $13.2 million due to higher property tax collections
(increase of $6.6 million or 6.7%) as a result of increased property tax values and a $6.5 million
increase in other revenues mainly due to increased interest earnings as a result of improving
economic conditions.
0
20
40
60
80
100
120
Revenues By Source (In Millions)
Governmental Activities
Fiscal Years 2018 and 2019
FY 2018
FY 2019
Indian River County, Florida
Management’s Discussion and Analysis
For the Year Ended September 30, 2019
12
The governmental activities expenses were $17.8 million higher in 2019 than in 2018. This
increase was mainly due to governmental activities expenses being charged $18.1 million for their
related share of overall net pension/retirement contribution expense as calculated by the Florida
Retirement System. The increase in expense was allocated to the following functions: general
government $1.9 million, public safety $14.1 million, physical environment $0.07 million,
transportation $0.8 million, economic environment $0.01 million, human services $0.07 million,
culture and recreation $0.7 million, and court related $0.5 million.
Business-type Activities
Business-type activities net position increased by $7.4 million. Key elements of this increase are as
follows:
Overall program revenues increased $6.9 million. This was mainly due to a $7.2 million increase in
capital grants and contributions resulting from increased developer capital asset contributions.
Other revenues increased $2.5 million due to increased interest earnings.
Indian River County, Florida
Management’s Discussion and Analysis
For the Year Ended September 30, 2019
13
Overall expenses were $6.6 million or 11% higher in 2019 than in 2018. The water and sewer
utilities expenses were $6.8 million or about 18% higher in 2019 than in 2018 due to the write-off
of several outstanding balances under an amnesty program. The solid waste expenses were $1.0
million or 6% lower in 2019 than in 2018 due to hurricane-related expenses in 2018. The golf
course had $0.1 million or 3% higher expenses in 2019 than in 2018 due to increased maintenance
and personnel costs. The building department had $0.7 million or 18% higher expenses in 2019
than in 2018 due to increases in personnel and contracted labor services required to meet service
level needs of developers and builders.
Business-type activities expenses were charged $1.2 million for their related share of overall net
pension/retirement contribution expense as calculated by the Florida Retirement System. The
expense was allocated to the following activities: water and sewer $0.8 million, solid waste $0.06
million, golf course $0.05 million, and building $0.3 million.
FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS
As noted earlier, the County uses fund accounting to ensure and demonstrate compliance with finance
related legal requirements.
Governmental funds
Unassigned fund balance may serve as a useful measure of the County’s net resources available for
spending at the end of the fiscal year. Approximately 23% ($52.6 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 ($0.8 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 ($167.5
million), 3) a committed category for constraints imposed by approval of ordinances and contracts by the
Board of County Commissioners ($2.8 million), and 4) an assigned category for constraints by the
County’s intent to use for specific purposes ($8.7 million).
The two largest restricted amounts are in the Impact Fees Fund with a $23.8 million restricted fund
balance and the Optional Sales Tax Fund with a $87.5 million restricted fund balance. Forty-two percent
of the Impact Fees Fund ($10.1 million) and twenty-seven percent ($23.7 million) of the Optional Sales
Tax Fund is slated for major road expansions throughout the County in fiscal year 2020. 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 $232.4 million, which is an
increase of $18.3 million over the prior year of $214.1 million. Contributing factors to the $18.3 million
increase in fund balance are:
Indian River County, Florida
Management’s Discussion and Analysis
For the Year Ended September 30, 2019
14
Fund balance in the General Fund increased by $4.0 million. This was due to increased tax
revenues and interest earnings.
Fund balance in the Impact Fees Fund increased by $4.4 million due to an increase in building
permits for construction and interest earnings.
Fund balance in the Secondary Roads Construction Fund decreased by $2.2 million due to
increased expenditures for the 45th Street Beautification capital project.
Fund balance in the Transportation Fund increased by $1 million due to increased interest
earnings, grant reimbursements and permit fee revenues.
Fund balance in the Emergency Services District Fund increased by $4.0 million mainly due to
greater interest earnings and an increase in tax revenues because of increasing home values.
Fund balance in the Optional Sales Tax Fund increased by $9.6 million due to increases in sales
tax and interest revenues, which was offset by decreased expenditures for capital projects slated
for future fiscal years.
Proprietary funds
Unrestricted net position at the end of the year amounted to $17.1 million in the Solid Waste Disposal
District (SWDD) Fund, ($0.4) million in the Golf Course Fund, $5.9 million in the County Building
Fund, and $83.9 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 $12.2 million increase in operating appropriations between the original and
final amended budget. The main components of the increase are as follows:
$6.4 million grants appropriations and prior year rollovers for the Senior Resource Association
(SRA) to provide County-wide public transportation
$1.3 million for capital improvements and purchases at recreational facilities
$1.0 million for Virgin Trains legal and professional services
$0.5 million in Hurricane Dorian related expenses
$0.3 million for the purchase of a fiber documentation system
Indian River County, Florida
Management’s Discussion and Analysis
For the Year Ended September 30, 2019
15
Actual expenditures were $9.2 million lower than anticipated for the following reasons:
$3.4 million in SRA grant costs not yet expended
$1.1 million in unspent recreational capital expenditures
$0.9 million in unspent professional and other contractual services
$0.4 million in unspent salary and benefits expenditures
$0.5 million in unspent Virgin Trains legal and professional services
The General Fund Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and
Actual is shown on page 31.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
The County’s investment in capital assets for its governmental and business-type activities as of
September 30, 2019, amounts to $797.7 million (net of accumulated depreciation). This investment in
capital assets includes land, right-of-way, buildings and improvements, intangibles, equipment,
infrastructure and construction in progress. The overall increase in the County’s investment in capital
assets for the current fiscal year was 1%.
Indian River County Capital Assets
(Net of Depreciation, In Millions)
Governmental Business-type
Activities Activities Total
2019 2018 2019 2018 2019 2018
Land $ 137.2 $ 134.8 $ 26.7 $ 25.7 $ 163.9 $ 160.5
Right-of-way 63.2 59.3 - - 63.2 59.3
Buildings and improvements 161.9 162.0 171.4 174.5 333.3 336.5
Equipment 28.5 24.9 4.6 4.3 33.1 29.2
Intangibles 2.4 2.4 2.2 2.0 4.6 4.4
Infrastructure 156.4 151.0 - - 156.4 151.0
Construction in progress 31.0 36.0 12.2 9.2 43.2 45.2
Total $ 580.6 $ 570.4 $ 217.1 $ 215.7 $ 797.7 $ 786.1
Indian River County, Florida
Management’s Discussion and Analysis
For the Year Ended September 30, 2019
16
Governmental activities had the following major increases during the fiscal year:
An increase in equipment primarily due to the purchase of department vehicles, heavy roadway
equipment and emergency services vehicles.
An increase in infrastructure due to the completion of the Osprey Acres Stormwater project.
Governmental activities only major decrease occurred in construction in progress as a result of numerous
completed projects during the fiscal year.
Business-type activities major increases were in construction in progress due to the landfill expansion
project and land due to the purchase of a property by the Utilities fund.
Business-type activities only major decrease occurred in buildings and improvements as a result of
increasing depreciation on existing assets.
Additional information on the County’s capital assets can be found in Note 5 on pages 67-69 of this
report.
Indian River County, Florida
Management’s Discussion and Analysis
For the Year Ended September 30, 2019
17
Debt Administration – Long-term debt
At the end of the current fiscal year, the County had total debt outstanding of $14.7 million. Of this
amount, $7.3 million is debt backed by the full faith and credit of the government. The revenue bonds
represent bonds secured solely by specified revenue sources.
Indian River County’s Outstanding Debt
General Obligation and Revenue Bonds
(In Millions)
Governmental Business-type
Activities Activities Total
General Obligation Debt: 2019 2018 2019 2018 2019 2018
Limited General Oblig. Note, Series 2015 $ 7.3 $ 11.5 $ - $ - $ 7.3 $ 11.5
Revenue Bonds/Notes:
Spring Training Facility, Series 2001 4.2 5.7 - - 4.2 5.7
Water and Sewer Rev Note, Series 2015 - - 3.2 4.2 3.2 4.2
Water and Sewer Ref. Rev., Series 2009 - - - 14.5 - 14.5
Total $ 11.5 $ 17.2 $ 3.2 $ 18.7 $ 14.7 $ 35.9
Additional information on the County’s long-term debt can be found in Note 10 on pages 74-80 of this
report.
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 County continues to increase our focus on catching up on deferred maintenance and capital item
replacement. Funding for these items was drastically reduced to absorb the funding reduction during the
economic downturn. While a determined effort has been made to catch up on these items over the last
several years, a substantial amount of work remains. A departmental review earlier this year revealed a
total backlog of $44 million across the County. Additionally, ongoing renewal and replacement work
needs to be considered. The proposed budget includes $11,287,253 in funding ($1,107,253 in taxing
funds).
Indian River County voters approved two bond issues to acquire and preserve environmentally sensitive
lands several years ago. Over the ensuing years, the County has acquired over 12,250 acres of property
(2,791 acres actively managed) with these funds as well as matching grants. County funding in the
amount of $77.7 million was supplemented with grant funding totaling $63.1 million, for a total
expenditure of $140.8 million. Over the last few years, the County has made a concerted effort to make
these lands accessible. These properties also require a significant amount of maintenance. The proposed
budget includes funding for two (2) Conservation Lands Technicians to help maintain these valuable
community assets. The addition of these two positions will allow for the current backlog of exotics
treatments, estimated at $205,000 to be handled in-house. This will enable the County to realize a current
cost savings in addition to reaping the benefit of ongoing exotics maintenance.
Indian River County, Florida
Management’s Discussion and Analysis
For the Year Ended September 30, 2019
18
A major issue affecting both governments and corporations alike is the threat from cybersecurity
breaches and ransomware attacks. There have been numerous attacks on local governments, as well as
other entities, across the entire nation in recent years. These types of cybersecurity attacks are becoming
increasingly prevalent among government agencies and therefore the need to protect against them has
become a top priority. The proposed budget recommends the addition of an IT Director to oversee the
Information Technology Department to help boost our cybersecurity readiness. This position will also
oversee the GIS Division and Telecommunications, which currently are housed in separate departments.
The approved budget for FY 2019/2020 is $367,725,135, a decrease of $31,295,303 or 7.8% from the
prior year. For FY 2019/2020 the tax roll is increasing 7.0% countywide.
The largest individual expense in the budget is Personnel Services. In total, 40 additional full-time (FT)
positions are proposed for FY 2019/2020; Board of County Commissioners (BCC) departments reflect a
net increase of 37 full-time positions, while Constitutional Officers reflect a net increase of 3 full-time
positions. This results in an additional cost of $2,594,142 in BCC departments.
There are changes in the proposed millage rates for fiscal year 2019/2020. Overall, the countywide
millage rate is increasing by 1.64%; this is reflective of the General Fund millage rate increase of 2.5%,
offset by a 9.2% reduction in the Land Acquisition Bond millage.
The M.S.T.U. Fund millage rate of 1.1506 is an increase of 7.2% over the current year, and is the first
millage increase in 16 years. The Emergency Services District millage is remaining flat at 2.3655.
Within the Solid Waste Fund, proposed residential assessment rates are increasing by $4.05 or 3.5% to
$120.90 per Equivalent Residential Unit. Commercial rates are increasing by $1.50 or 3.7% to $42.00
per Waste Generation Unit (W.G.U). The proposed readiness-to-use fee is $24.69 per W.G.U., an
increase of $0.09 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
19
BASIC FINANCIAL STATEMENTS
20
21
Indian River County, Florida
Statement of Net Position
September 30, 2019
Governmental
Activities
Business-type
Activities Total
ASSETS
Current assets:
Cash and investments $ 264,177,650 $ 72,613,517 $ 336,791,167
Accounts receivable - net 4,828,007 3,390,788 8,218,795
Internal balances 437,021 (437,021) -
Due from other governments 8,727,564 2,303,838 11,031,402
Interest receivable 1,063,275 861,613 1,924,888
Inventories 444,786 1,535,449 1,980,235
Prepaid expenses 1,526,324 1,350 1,527,674
Current restricted assets:
Cash and investments 5,403,291 45,850,049 51,253,340
Total current assets 286,607,918 126,119,583 412,727,501
Non-current assets:
Capital assets - non-depreciable 236,427,972 40,908,277 277,336,249
Capital assets - depreciable 713,843,802 488,228,481 1,202,072,283
Capital assets - accumulated depreciation (369,674,236) (312,025,553) (681,699,789)
Non-current restricted assets:
Special assessments receivable 165,805 1,816,553 1,982,358
Impact fees receivable - 295,992 295,992
Liens receivable - 2,665,632 2,665,632
Total non-current assets 580,763,343 221,889,382 802,652,725
Total assets 867,371,261 348,008,965 1,215,380,226
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions 47,529,649 3,193,699 50,723,348
Deferred outflows related to other postemployment benefits 2,631,927 243,262 2,875,189
Deferred amounts on refunding 250,927 243,329 494,256
Total deferred outflows of resources 50,412,503 3,680,290 54,092,793
LIABILITIES
Current liabilities (payable from current assets):
Accounts payable 15,175,781 4,448,020 19,623,801
Retainage payable - 370,352 370,352
Claims payable 2,600,000 - 2,600,000
Due to other governments 1,047,122 38,856 1,085,978
Other deposits held in escrow 24,895 1,000 25,895
Unearned revenues 672,957 962,624 1,635,581
Accrued compensated absences 6,759,059 816,267 7,575,326
Pollution remediation costs payable 74,273 - 74,273
Current liabilities (payable from current restricted assets):
Accounts payable - 70,062 70,062
Retainage payable 638,646 80,991 719,637
Accrued interest payable 718 4,364 5,082
Customer deposits 172,613 3,478,760 3,651,373
Notes payable 4,298,000 1,042,000 5,340,000
Lease payable 3,314 - 3,314
Closure and maintenance costs payable - 1,250,481 1,250,481
Bonds payable 290,000 - 290,000
Total current liabilities 31,757,378 12,563,777 44,321,155
Non-current liabilities:
Accrued compensated absences 5,871,451 220,825 6,092,276
Pollution remediation costs payable 1,541,027 - 1,541,027
Claims payable 5,654,000 - 5,654,000
Net pension liability 138,323,624 9,366,305 147,689,929
Net other postemployment benefits liability 2,463,807 235,813 2,699,620
Notes payable 2,970,000 2,132,000 5,102,000
Lease payable 12,133 - 12,133
Closure and maintenance costs payable - 6,904,201 6,904,201
Bonds payable, net of premium and discount 3,865,000 - 3,865,000
Total non-current liabilities 160,701,042 18,859,144 179,560,186
Total liabilities 192,458,420 31,422,921 223,881,341
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions 10,055,094 716,111 10,771,205
Deferred inflows related to other postemployment benefits 8,489,577 801,848 9,291,425
Total deferred inflows of resources 18,544,671 1,517,959 20,062,630
NET POSITION
Net investment in capital assets 569,410,018 212,240,133 781,650,151
Restricted for:
Transportation/road projects 23,085,628 - 23,085,628
Public safety 23,732,984 - 23,732,984
Court related costs 1,641,631 - 1,641,631
Housing assistance 825,747 - 825,747
Capital projects 89,189,559 - 89,189,559
Beach renourishment 18,512,425 - 18,512,425
Culture/recreation 9,269,934 - 9,269,934
Debt service 2,350,434 - 2,350,434
Environmental conservation/preservation 1,168,370 - 1,168,370
Special assessment projects 2,134,707 - 2,134,707
Unrestricted (deficit) (34,540,764) 106,508,242 71,967,478
Total net position $ 706,780,673 $ 318,748,375 $ 1,025,529,048
The accompanying notes are an integral part of the financial statements.
22
23
Indian River County, Florida
Statement of Activities
For the Year Ended September 30, 2019
Program Revenues
Net (Expense) Revenue and
Changes in Net Position
Functions/Programs Expenses
Charges for
Services
Operating
Grants and
Contributions
Capital
Grants and
Contributions
Governmental
Activities
Business-type
Activities Total
Primary Government:
Governmental activities:
General government $ 31,389,285 $ 8,022,184 $ 16,773,570 $ 30,675 $ (6,562,856) $ - $ (6,562,856)
Public safety 100,559,725 8,425,164 927,793 338,543 (90,868,225) - (90,868,225)
Physical environment 1,929,479 9,350 278,996 1,148,462 (492,671) - (492,671)
Transportation 31,169,505 5,357,114 7,545,347 1,777,040 (16,490,004) - (16,490,004)
Economic environment 471,588 - 75,940 - (395,648) - (395,648)
Human services 9,647,749 151,861 3,556,617 - (5,939,271) - (5,939,271)
Culture/recreation 17,877,861 3,224,903 44,010 873,627 (13,735,321) - (13,735,321)
Court related 7,906,671 3,658,067 200,711 - (4,047,893) - (4,047,893)
Interest and fiscal charges 460,704 - - - (460,704) - (460,704)
Total governmental activities 201,412,567 28,848,643 29,402,984 4,168,347 (138,992,593) - (138,992,593)
Business-type activities:
Water and sewer 45,076,191 34,050,737 - 13,990,806 - 2,965,352 2,965,352
Solid waste 14,731,205 15,837,635 6,996 - - 1,113,426 1,113,426
Golf course 2,870,275 3,306,251 1,340 - - 437,316 437,316
Building 4,675,422 3,555,314 - - - (1,120,108) (1,120,108)
Total business-type activities 67,353,093 56,749,937 8,336 13,990,806 - 3,395,986 3,395,986
Total primary government $ 268,765,660 $ 85,598,580 $ 29,411,320 $ 18,159,153 (138,992,593) 3,395,986 (135,596,607)
General revenues:
Property taxes, levied for general purposes 100,483,536 - 100,483,536
Property taxes, levied for debt service 4,744,345 - 4,744,345
Sales and use taxes 27,458,882 - 27,458,882
Franchise fees, levied on gross receipts 9,124,073 - 9,124,073
Interest earnings 8,494,530 3,813,252 12,307,782
Miscellaneous 3,728,033 39,363 3,767,396
Transfers (190,160) 190,160 -
Total general revenues and transfers 153,843,239 4,042,775 157,886,014
Change in net position 14,850,646 7,438,761 22,289,407
Net position - beginning 691,930,027 311,309,614 1,003,239,641
Net position - ending $ 706,780,673 $ 318,748,375 $ 1,025,529,048
The accompanying notes are an integral part of the financial statements.
24
Indian River County, Florida
Balance Sheet
Governmental Funds
September 30, 2019
General
Impact
Fees
Secondary
Roads
Construction
ASSETS
Cash and investments $ 58,661,963 $ 24,105,885 $ 8,663,583
Accounts receivable 1,113,094 - 29
Special assessments receivable - - -
Due from other funds 387,031 - -
Due from other governments 3,638,906 96,250 527,601
Interest receivable 122,792 50,184 17,889
Inventories 116,981 - -
Prepaids and other assets 222,296 - 1,968
Advances to other funds 275,000 - -
Total assets $ 64,538,063 $ 24,252,319 $ 9,211,070
LIABILITIES
Accounts payable $ 4,026,790 $ 297,185 $ 728,058
Retainage payable - 11,297 179,821
Due to other funds 976,168 - -
Due to other governments 711,212 160,648 -
Unearned revenues 622,965 - -
Other deposits 184,127 - -
Total liabilities 6,521,262 469,130 907,879
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - special assessments - - -
Unavailable revenue - ambulance services - - -
Unavailable revenue - state and federal grants 2,322,031 - 98,941
Total deferred inflows of resources 2,322,031 - 98,941
FUND BALANCES
Nonspendable:
Inventories 116,981 - -
Prepaid items 222,296 - 1,968
Advances to other funds 275,000 - -
Restricted for:
Transportation/road improvements - 14,435,162 8,202,282
Court-related costs and improvements - - -
Housing assistance - - -
Law enforcement/public safety - 1,418,502 -
Fire/emergency services - 922,796 -
Tourism-related activities - - -
Beach renourishment - - -
Boating related projects - - -
Library services - 437,539 -
Land acquisition - - -
Stormwater, street lighting, and other special assessments - - -
Voting/election activities - - -
Debt service - - -
Capital projects - 1,646,426 -
Parks/recreational projects 1,001,230 4,922,764 -
Committed to:
Economic incentives 1,069,240 - -
Environmental conservation/preservation - - -
Law enforcement/public safety 18,353 - -
Library services 66,050 - -
Parks/recreational projects 156,978 - -
Assigned to:
Law enforcement/public safety - - -
Transportation/road improvements - - -
Unassigned (deficit) 52,768,642 - -
Total fund balances 55,694,770 23,783,189 8,204,250
Total liabilities, deferred inflows and fund balances $ 64,538,063 $ 24,252,319 $ 9,211,070
The accompanying notes are an integral part of the financial statements.
25
Transportation
Emergency
Services
District
Optional
Sales
Tax
Other
Governmental
Funds
Total
Governmental
Funds
$ 9,098,217 $ 15,875,395 $ 86,217,568 $ 35,136,973 $ 237,759,584
2,787 2,077,219 - 130,159 3,323,288
165,805 - - - 165,805
- 369,730 201,024 709,581 1,667,366
643,509 476,677 1,876,230 1,393,966 8,653,139
185,629 35,391 180,207 65,426 657,518
- 38,408 - 22,251 177,640
490 11,453 - 70,595 306,802
- - - - 275,000
$ 10,096,437 $ 18,884,273 $ 88,475,029 $ 37,528,951 $ 252,986,142
$ 768,664 $ 1,951,502 $ 430,072 $ 1,212,663 $ 9,414,934
- - 444,063 3,465 638,646
- - - 941,024 1,917,192
115,051 - 57,761 2,450 1,047,122
- - - 49,992 672,957
- - - 13,381 197,508
883,715 1,951,502 931,896 2,222,975 13,888,359
333,007 - - - 333,007
- 2,076,391 - - 2,076,391
327,696 456,417 2,698 1,120,892 4,328,675
660,703 2,532,808 2,698 1,120,892 6,738,073
- 38,408 - 22,251 177,640
490 11,453 - 70,595 306,802
- - - - 275,000
- - - 2,435 22,639,879
- - - 1,591,295 1,591,295
- - - 797,282 797,282
- - - 4,106,006 5,524,508
- 14,350,102 - - 15,272,898
- - - 1,059,237 1,059,237
- - - 17,439,249 17,439,249
- - - 2,006,514 2,006,514
- - - - 437,539
- - - 1,168,370 1,168,370
- - - 2,134,707 2,134,707
- - - 2,939 2,939
- - - 2,350,434 2,350,434
- - 87,540,435 - 89,186,861
- - - - 5,923,994
- - - - 1,069,240
- - - 1,314,916 1,314,916
- - - 164,077 182,430
- - - - 66,050
- - - - 156,978
- - - 115,307 115,307
8,551,529 - - - 8,551,529
- - - (160,530) 52,608,112
8,552,019 14,399,963 87,540,435 34,185,084 232,359,710
$ 10,096,437 $ 18,884,273 $ 88,475,029 $ 37,528,951 $ 252,986,142
26
Indian River County, Florida
Reconciliation of Total Governmental Fund Balances
to Net Position of Governmental Activities
September 30, 2019
Total governmental fund balances $ 232,359,710
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 579,179,032
in the funds.
Long-term liabilities, including bonds payable ($4,067,667), notes payable ($7,104,406), accrued compensated
absences ($12,460,191), capital leases ($15,447), accrued interest payable ($718), and accrued pollution
remediation costs ($1,615,300), are not due and payable in the current period and, therefore, not reported in the
funds. (25,263,729)
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 ($137,060,394)
of the cost-sharing defined benefit pension plans in which the County participates is reported. The County's
net OPEB liability ($2,433,151) of the single employer defined benefit plan is also reported on the statement
of net position. Additionally, deferred outflows ($47,095,149) and deferred inflows ($9,961,298) related
to pensions and deferred outflows ($2,599,483) and deferred inflows ($8,384,319) related to OPEB are
also reported. (108,144,530)
Special assessments, ambulance services, and state and federal grant receivables, are not available
to pay for current period expenditures and, therefore, are reported as unavailable revenue in the funds. 6,738,073
Accrued interest receivable is not recognized in the current period because the resources are not available
and, therefore, not reported in the funds. 300,180
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. 21,611,937
Net position of governmental activities $ 706,780,673
The accompanying notes are an integral part of the financial statements.
27
28
Indian River County, Florida
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended September 30, 2019
General
Impact
Fees
Secondary
Roads
Construction
REVENUES
Taxes $ 69,268,688 $ - $ 3,823,809
Permits, fees and special assessments 9,522,835 7,596,973 -
Intergovernmental 18,377,222 - 2,068,912
Charges for services 9,185,241 - -
Judgments, fines and forfeits 1,755,195 - -
Interest 2,393,574 650,158 278,168
Miscellaneous 4,488,586 54,277 45,460
Total revenues 114,991,341 8,301,408 6,216,349
EXPENDITURES
Current:
General government 22,919,647 125,026 -
Public safety 51,907,118 - -
Physical environment 622,707 - -
Transportation 4,213,412 3,543,808 8,548,703
Economic environment 449,702 - -
Human services 5,178,320 - -
Culture/recreation 10,457,693 249,804 -
Court related 6,513,255 - -
Debt service:
Principal 1,632 - -
Interest and other fiscal charges 164 - -
Capital projects - - -
Total expenditures 102,263,650 3,918,638 8,548,703
Excess of revenues over (under) expenditures 12,727,691 4,382,770 (2,332,354)
OTHER FINANCING SOURCES (USES)
Lease purchase proceeds 20,855 - -
Insurance recoveries 33,168 - -
Transfers in 2,607,080 - 157,880
Transfers out (11,343,023) - -
Total other financing sources (uses) (8,681,920) - 157,880
Net change in fund balances 4,045,771 4,382,770 (2,174,474)
Fund balances at beginning of year 51,648,999 19,400,419 10,378,724
Fund balances at end of year $ 55,694,770 $ 23,783,189 $ 8,204,250
The accompanying notes are an integral part of the financial statements.
29
Transportation
Emergency
Services
District
Optional
Sales
Tax
Other
Governmental
Funds
Total
Governmental
Funds
$ - $ 32,490,883 $ 19,263,128 $ 7,840,255 $ 132,686,763
451,082 - - 521,818 18,092,708
3,556,213 100,439 1,643,971 6,210,164 31,956,921
100,536 7,030,662 - 1,602,642 17,919,081
500 7,150 - 385,364 2,148,209
237,473 672,898 2,360,213 983,155 7,575,639
566,353 24,446 - 807,840 5,986,962
4,912,157 40,326,478 23,267,312 18,351,238 216,366,283
353,031 - - 1,527,925 24,925,629
- 35,611,859 - 1,501,701 89,020,678
626,381 - - 104,535 1,353,623
13,773,513 - - 299,678 30,379,114
- - - 19,863 469,565
- - - 4,306,222 9,484,542
- - - 4,876,175 15,583,672
- - - 728,279 7,241,534
- - - 5,737,000 5,738,632
- - - 442,835 442,999
- - 13,393,105 - 13,393,105
14,752,925 35,611,859 13,393,105 19,544,213 198,033,093
(9,840,768) 4,714,619 9,874,207 (1,192,975) 18,333,190
- - - - 20,855
15,661 41 60,801 - 109,671
11,101,166 - 1,725,000 727,570 16,318,696
(236,200) (732,705) (2,046,810) (2,193,450) (16,552,188)
10,880,627 (732,664) (261,009) (1,465,880) (102,966)
1,039,859 3,981,955 9,613,198 (2,658,855) 18,230,224
7,512,160 10,418,008 77,927,237 36,843,939 214,129,486
$ 8,552,019 $ 14,399,963 $ 87,540,435 $ 34,185,084 $ 232,359,710
30
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, 2019
Net change in fund balances - total governmental funds $ 18,230,224
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 30,982,125
Less current year loss on assets (7,766)
Less current year depreciation (21,673,675) 9,300,684
Payments of bond and note principal, pollution remediation, and capital lease costs are
expenditures in the governmental funds, but the payment reduces long-term liabilities
in the statement of net position.
Bond principal payment 1,510,000
Note principal payment 4,227,000
Capital lease (16,165)
Pollution remediation costs 506,600 6,227,435
Changes in accrued compensated absences do not require the use of current financial
resources and, therefore, are not reported as expenditures in governmental funds. (566,422)
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 (18,783)
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. 3,094,931
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 defined benefit plan. (19,148,691)
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. (1,949,708)
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. (330,045)
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. 11,021
Change in net position of governmental activities $ 14,850,646
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
General Fund
For the Year Ended September 30, 2019
Budgeted Amounts Actual
Variance with
Final Budget
Positive
Original Final Amounts (Negative)
REVENUES
Taxes $ 68,115,496 $ 68,115,496 $ 69,268,688 $ 1,153,192
Permits, fees and special assessments 8,838,800 8,838,800 9,522,835 684,035
Intergovernmental 13,700,644 18,334,299 18,377,222 42,923
Charges for services 9,833,280 9,097,427 9,185,241 87,814
Judgments, fines and forfeits 1,183,152 1,183,152 1,755,195 572,043
Interest 316,855 316,855 2,393,574 2,076,719
Miscellaneous 4,201,807 4,345,042 4,488,586 143,544
Total revenues 106,190,034 110,231,071 114,991,341 4,760,270
EXPENDITURES
Current:
General government 23,240,233 25,526,847 22,919,647 2,607,200
Public safety 52,257,520 53,129,301 51,907,118 1,222,183
Physical environment 527,257 911,829 622,707 289,122
Transportation 1,115,800 7,694,472 4,213,412 3,481,060
Economic environment 452,491 456,447 449,702 6,745
Human services 5,309,350 5,341,366 5,178,320 163,046
Culture/recreation 10,380,690 12,446,208 10,457,693 1,988,515
Court related 6,040,147 6,003,916 6,513,255 (509,339)
Debt service:
Principal - - 1,632 (1,632)
Interest and other fiscal charges - - 164 (164)
Total expenditures 99,323,488 111,510,386 102,263,650 9,246,736
Excess of revenues over (under) expenditures 6,866,546 (1,279,315) 12,727,691 14,007,006
OTHER FINANCING SOURCES (USES)
Lease purchase proceeds - - 20,855 20,855
Insurance recoveries - - 33,168 33,168
Transfers in 1,751,625 2,528,962 2,607,080 78,118
Transfers out (12,302,743) (12,302,743) (11,343,023) 959,720
Total other financing sources (uses) (10,551,118) (9,773,781) (8,681,920) 1,091,861
Net change in fund balances (3,684,572) (11,053,096) 4,045,771 $ 15,098,867
Fund balances at beginning of year 3,684,572 11,053,096 51,648,999
Fund balances at end of year $ - $ - $ 55,694,770
--- -
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
Impact Fees Fund
For the Year Ended September 30, 2019
Budgeted Amounts Actual
Variance
with Final
Budget
Positive
Original Final Amounts (Negative)
REVENUES
Permits, fees and special assessments $ 4,056,975 $ 4,056,975 $ 7,596,973 $ 3,539,998
Interest 42,750 42,750 650,158 607,408
Miscellaneous - - 54,277 54,277
Total revenues 4,099,725 4,099,725 8,301,408 4,201,683
EXPENDITURES
General government 591,331 595,149 125,026 470,123
Public safety 175,000 175,000 - 175,000
Transportation 5,618,500 9,193,500 3,543,808 5,649,692
Culture/recreation 905,302 2,000,262 249,804 1,750,458
Total expenditures 7,290,133 11,963,911 3,918,638 8,045,273
Excess of revenues over (under) expenditures (3,190,408) (7,864,186) 4,382,770 12,246,956
OTHER FINANCING SOURCES (USES)
Transfers out - (200,000) - 200,000
Total other financing sources (uses) - (200,000) - 200,000
Net change in fund balances (3,190,408) (8,064,186) 4,382,770 $ 12,446,956
Fund balances at beginning of year 3,190,408 8,064,186 19,400,419
Fund balances at end of year $ - $ - $ 23,783,189
- - - -
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
Secondary Roads Construction Fund
For the Year Ended September 30, 2019
Budgeted Amounts Actual
Variance
with Final
Budget
Positive
Original Final Amounts (Negative)
REVENUES
Taxes $ 3,678,875 $ 3,678,875 $ 3,823,809 $ 144,934
Intergovernmental - 4,626,720 2,068,912 (2,557,808)
Interest 33,250 33,250 278,168 244,918
Miscellaneous - - 45,460 45,460
Total revenues 3,712,125 8,338,845 6,216,349 (2,122,496)
EXPENDITURES
Transportation 8,584,725 16,900,766 8,548,703 8,352,063
Total expenditures 8,584,725 16,900,766 8,548,703 8,352,063
Excess of revenues over (under) expenditures (4,872,600) (8,561,921) (2,332,354) 6,229,567
OTHER FINANCING SOURCES (USES)
Transfers in - 157,881 157,880 (1)
Total other financing sources (uses) - 157,881 157,880 (1)
Net change in fund balances (4,872,600) (8,404,040) (2,174,474) $ 6,229,566
Fund balances at beginning of year 4,872,600 8,404,040 10,378,724
Fund balances at end of year $ - $ - $ 8,204,250
- - - -
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
Transportation Fund
For the Year Ended September 30, 2019
Budgeted Amounts Actual
Variance
with Final
Budget
Positive
Original Final Amounts (Negative)
REVENUES
Permits, fees and special assessments $ 251,750 $251,750 $ 451,082 $ 199,332
Intergovernmental 2,883,250 3,005,878 3,556,213 550,335
Charges for services 92,150 92,150 100,536 8,386
Judgments, fines and forfeits - - 500 500
Interest 35,150 35,150 237,473 202,323
Miscellaneous 387,875 387,875 566,353 178,478
Total revenues 3,650,175 3,772,803 4,912,157 1,139,354
EXPENDITURES
General government 367,987 375,559 353,031 22,528
Physical environment 945,550 1,006,107 626,381 379,726
Transportation 14,304,147 15,453,136 13,773,513 1,679,623
Total expenditures 15,617,684 16,834,802 14,752,925 2,081,877
Excess of revenues over (under) expenditures (11,967,509) (13,061,999) (9,840,768) 3,221,231
OTHER FINANCING SOURCES (USES)
Insurance recoveries - - 15,661 15,661
Transfers in 11,101,166 11,101,166 11,101,166 -
Transfers out (78,319) (236,200) (236,200) -
Total other financing sources (uses) 11,022,847 10,864,966 10,880,627 15,661
Net change in fund balances (944,662) (2,197,033) 1,039,859 $ 3,236,892
Fund balances at beginning of year 944,662 2,197,033 7,512,160
Fund balances at end of year $ - $ - $ 8,552,019
- - - -
The accompanying notes are an integral part of the financial statements.
35
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, 2019
Budgeted Amounts Actual
Variance
with Final
Budget
Positive
Original Final Amounts (Negative)
REVENUES
Taxes $ 32,072,106 $ 32,072,110 $ 32,490,883 $ 418,773
Intergovernmental 47,500 67,231 100,439 33,208
Charges for services 5,954,426 5,954,426 7,030,662 1,076,236
Judgments, fines and forfeits 4,750 4,750 7,150 2,400
Interest 47,500 47,500 672,898 625,398
Miscellaneous 32,029 32,029 24,446 (7,583)
Total revenues 38,158,311 38,178,046 40,326,478 2,148,432
EXPENDITURES
Public safety 38,056,065 40,425,153 35,611,859 4,813,294
Total expenditures 38,056,065 40,425,153 35,611,859 4,813,294
Excess of revenues over (under) expenditures 102,246 (2,247,107)4,714,619 6,961,726
OTHER FINANCING SOURCES (USES)
Insurance recoveries - - 41 41
Transfers out (613,508) (642,726) (732,705) (89,979)
Total other financing sources (uses) (613,508) (642,726) (732,664) (89,938)
Net change in fund balances (511,262) (2,889,833) 3,981,955 $ 6,871,788
Fund balances at beginning of year 511,262 2,889,833 10,418,008
Fund balances at end of year $ - $ - $ 14,399,963
--- -
The accompanying notes are an integral part of the financial statements.
36
37
Indian River County, Florida
Statement of Fund Net Position
Proprietary Funds
September 30, 2019
Business-type Activities - Enterprise Funds Governmental
Solid Waste
Disposal
District
Golf
Course
County
Utilities
County
Building Total
Activities
Internal
Service Funds
ASSETS
Current assets:
Cash and investments $ 16,728,658 $ 652,899 $ 46,874,124 $ 8,357,836 $ 72,613,517 $ 31,821,357
Accounts receivable - net 114,108 1,391 3,275,289 - 3,390,788 1,504,719
Due from other funds 135,010 - - - 135,010 411,847
Due from other governments 1,065,944 16,335 1,201,028 20,531 2,303,838 74,425
Interest receivable 62,762 2,708 767,784 28,359 861,613 105,577
Inventories - 117,001 1,418,448 - 1,535,449 267,146
Prepaids and other assets - 1,238 - 112 1,350 1,219,522
Current restricted assets:
Cash and investments 8,828,425 - 37,021,624 - 45,850,049 -
Total current assets 26,934,907 791,572 90,558,297 8,406,838 126,691,614 35,404,593
Non-current assets:
Capital assets - non-depreciable 17,695,668 6,606,283 16,606,326 - 40,908,277 -
Capital assets - depreciable 32,005,334 5,023,190 450,656,380 543,577 488,228,481 3,954,309
Capital assets - accumulated depreciation (15,890,013) (2,275,913) (293,456,037) (403,590) (312,025,553) (2,535,803)
Non-current restricted assets:
Special assessments receivable - - 1,816,553 - 1,816,553 -
Impact fees receivable - - 295,992 - 295,992 -
Liens receivable - - 2,665,632 - 2,665,632 -
Total non-current assets 33,810,989 9,353,560 178,584,846 139,987 221,889,382 1,418,506
Total assets 60,745,896 10,145,132 269,143,143 8,546,825 348,580,996 36,823,099
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions 193,148 158,013 2,340,923 501,615 3,193,699 434,500
Deferred outflows related to other postemployment benefits 14,508 4,269 181,224 43,261 243,262 32,444
Deferred amounts on refundings - - 243,329 - 243,329 -
Total deferred outflows of resources 207,656 162,282 2,765,476 544,876 3,680,290 466,944
LIABILITIES
Current liabilities (payable from current assets):
Accounts payable 1,406,229 181,544 2,633,285 226,962 4,448,020 5,760,847
Retainage payable 215,088 - 155,264 - 370,352 -
Due to other funds - 297,031 - - 297,031 -
Claims payable - - - - - 2,600,000
Due to other governments 1,514 8,560 1,607 27,175 38,856 -
Other deposits - 1,000 - - 1,000 -
Unearned revenues - 54,662 - 907,962 962,624 -
Accrued compensated absences 51,101 26,364 614,969 123,833 816,267 119,501
Total current liabilities (payable from current assets) 1,673,932 569,161 3,405,125 1,285,932 6,934,150 8,480,348
Current liabilities (payable from restricted assets):
Accounts payable - - 70,062 - 70,062 -
Retainage payable - - 80,991 - 80,991 -
Accrued interest payable - - 4,364 - 4,364 -
Closure and maintenance costs payable 1,250,481 - - - 1,250,481 -
Notes payable - - 1,042,000 - 1,042,000 -
Customer deposits 173,743 - 3,305,017 - 3,478,760 -
Total current liabilities (payable from restricted assets) 1,424,224 - 4,502,434 - 5,926,658 -
Total current liabilities 3,098,156 569,161 7,907,559 1,285,932 12,860,808 8,480,348
Non-current liabilities:
Accrued compensated absences 8,804 50,159 161,862 - 220,825 50,818
Advance from other funds - 275,000 - - 275,000 -
Claims payable - - - - - 5,654,000
Closure and maintenance costs payable 6,904,201 - - - 6,904,201 -
Net pension liability 537,834 462,980 6,880,392 1,485,099 9,366,305 1,263,230
Net other postemployment benefits liability 14,296 4,200 176,025 41,292 235,813 30,656
Notes payable - - 2,132,000 - 2,132,000 -
Total non-current liabilities 7,465,135 792,339 9,350,279 1,526,391 19,134,144 6,998,704
Total liabilities 10,563,291 1,361,500 17,257,838 2,812,323 31,994,952 15,479,052
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions 35,388 36,957 546,603 97,163 716,111 93,796
Deferred inflows related to other postemployment benefits 48,315 14,202 598,102 141,229 801,848 105,258
Total deferred inflows of resources 83,703 51,159 1,144,705 238,392 1,517,959 199,054
NET POSITION
Net investment in capital assets 33,159,606 9,329,044 169,611,496 139,987 212,240,133 1,418,506
Unrestricted (deficit) 17,146,952 (434,289) 83,894,580 5,900,999 106,508,242 20,193,431
Total net position $ 50,306,558 $ 8,894,755 $ 253,506,076 $ 6,040,986 $ 318,748,375 $ 21,611,937
The accompanying notes are an integral part of the financial statements.
38
Indian River County, Florida
Statement of Revenues, Expenses, and Changes in Fund Net Position
Proprietary Funds
For the Year Ended September 30, 2019
Business-type Activities -
Solid Waste
Disposal
District
Golf
Course
OPERATING REVENUES
Charges for services $15,837,635 $3,306,251
Total operating revenues 15,837,635 3,306,251
OPERATING EXPENSES
Personal services 722,794 647,555
Material, supplies, services and other operating 12,865,875 1,968,516
Depreciation 1,142,536 240,790
Total operating expenses 14,731,205 2,856,861
Operating income (loss) 1,106,430 449,390
NONOPERATING REVENUES (EXPENSES)
Intergovernmental 6,996 1,340
Interest income 891,881 25,321
Insurance recoveries 843 -
Gain on disposal of assets 4,015 6,394
Interest expense - (13,414)
Loss on disposal of assets - -
Total nonoperating revenues (expenses) 903,735 19,641
Income (loss) before transfers and capital grants and
contributions 2,010,165 469,031
Capital grants and contributions - -
Transfers - -
Change in net position 2,010,165 469,031
Total net position - beginning 48,296,393 8,425,724
Total net position - ending $50,306,558 $8,894,755
The accompanying notes are an integral part of the financial statements.
39
Enterprise Funds Governmental
County
Utilities
County
Building Total
Activities -
Internal
Service Funds
$34,050,737 $3,555,314 $56,749,937 $31,225,469
34,050,737 3,555,314 56,749,937 31,225,469
9,880,711 2,742,924 13,993,984 3,045,212
20,519,600 1,848,745 37,202,736 31,623,018
14,385,959 83,753 15,853,038 195,556
44,786,270 4,675,422 67,049,758 34,863,786
(10,735,533) (1,120,108) (10,299,821) (3,638,317)
- - 8,336 -
2,660,446 235,604 3,813,252 901,447
- - 843 735,121
28,111 - 38,520 8,163
(288,802) - (302,216) -
(1,119) - (1,119) (569)
2,398,636 235,604 3,557,616 1,644,162
(8,336,897) (884,504) (6,742,205) (1,994,155)
13,990,806 - 13,990,806 1,115
190,160 - 190,160 43,332
5,844,069 (884,504) 7,438,761 (1,949,708)
247,662,007 6,925,490 311,309,614 23,561,645
$253,506,076 $6,040,986 $318,748,375 $21,611,937
40
Indian River County, Florida
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2019
Business-type Activities -
Solid Waste
Disposal
District Golf Course
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $ 15,855,984 $ 3,311,841
Cash paid to suppliers for goods and services (18,794,336) (1,900,306)
Cash paid to employees for services (670,440) (594,049)
Net cash provided by (used in) operating activities (3,608,792) 817,486
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Transfers - -
Operating grants 311,834 15,299
Insurance recoveries 683,622 -
Net cash provided by (used in) noncapital financing activities 995,456 15,299
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Principal payments - bonds/notes - -
Interest paid on long-term debt - (13,414)
Payments on advances from other funds - (340,218)
Proceeds from sales of capital assets 4,015 6,394
Purchase of capital assets (4,627,830) (158,461)
Bond paying agent fees - -
Capital contributed by others - -
Net cash flows provided by (used in) capital and related financing activities (4,623,815) (505,699)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest and dividends on investments 890,427 24,266
Net cash provided by investing activities 890,427 24,266
Net increase (decrease) in cash and investments (6,346,724) 351,352
Cash and investments at beginning of year 31,903,807 301,547
Cash and investments at end of year $ 25,557,083 $ 652,899
Classified as:
Current assets $ 16,728,658 $ 652,899
Restricted assets 8,828,425 -
Total $ 25,557,083 $ 652,899
The accompanying notes are an integral part of the financial statements.
41
Enterprise Funds Governmental
Activities -
County County Internal
Utilities Building Total Service Funds
$ 34,608,104 $ 4,463,354 $ 58,239,283 $ 31,927,060
(15,480,477) (1,770,753) (37,945,872) (26,976,960)
(9,139,330) (2,529,180) (12,932,999) (2,894,309)
9,988,297 163,421 7,360,412 2,055,791
190,160 - 190,160 43,332
22,676 8,766 358,575 -
141,890 - 825,512 -
354,726 8,766 1,374,247 43,332
(14,545,000) - (14,545,000) -
(745,282) - (758,696) -
- - (340,218) -
28,111 - 38,520 8,163
(5,138,787) (7,458) (9,932,536) (1,000,800)
(12,050) - (12,050) -
3,744,549 - 3,744,549 -
(16,668,459) (7,458) (21,805,431) (992,637)
2,631,469 232,850 3,779,012 901,430
2,631,469 232,850 3,779,012 901,430
(3,693,967) 397,579 (9,291,760) 2,007,916
87,589,715 7,960,257 127,755,326 29,813,441
$ 83,895,748 $ 8,357,836 $ 118,463,566 $ 31,821,357
$ 46,874,124 $ 8,357,836 $ 72,613,517 $ 31,821,357
37,021,624 - 45,850,049 -
$ 83,895,748 $ 8,357,836 $ 118,463,566 $ 31,821,357
Continued
42
Indian River County, Florida
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2019
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) $ 1,106,430 $ 449,390
Adjustments to reconcile operating income to net cash
provided by (used in) operating activities:
Depreciation 1,142,536 240,790
Work in progress reclassified as expense - -
(Increase) Decrease in assets:
Accounts receivable 60,638 206
Due from other funds (1,570) -
Due from other governments (51,219) (199)
Inventories - (8,794)
Impact fees receivable - -
Special assessments receivable - -
Liens receivable - -
Prepaid expenses - (1,178)
Increase (Decrease) in liabilities:
Accounts payable 32,035 79,976
Due to other governments - (1,794)
Retainage payable - -
Customer deposits 10,500 -
Closure and maintenance costs payable (5,960,496) -
Net pension liability 62,214 54,706
Net OPEB liability (10,132) (2,994)
Unearned revenues - 5,583
Claims payable - -
Accrued compensated absences 272 1,794
Total adjustments (4,715,222) 368,096
Net cash provided by (used in) operating activities $ (3,608,792) $ 817,486
NONCASH CAPITAL AND RELATED
FINANCING ACTIVITIES
Change in fair value of investments $ 266,220 $ 9,931
Contributed property, infrastructure, and equipment $ - $ -
Capital assets purchased through accounts payable $ 436,295 $ 24,516
The accompanying notes are an integral part of the financial statements.
43
Enterprise Funds Governmental
Activities -
County County Internal
Utilities Building Total Service Funds
$ (10,735,533) $ (1,120,108) $ (10,299,821) $ (3,638,317)
14,385,959 83,753 15,853,038 195,556
16,387 - 16,387 -
(525,265) 78 (464,343) 707,911
- - (1,570) -
(260,477) - (311,895) (6,320)
(11,546) - (20,340) (11,562)
377,756 - 377,756 -
819,269 - 819,269 -
5,072,491 - 5,072,491 -
11,113 (112) 9,823 (60,508)
(22,369) 80,270 169,912 4,903,128
(47,920) (2,166) (51,880) -
20,967 - 20,967 -
146,084 - 156,584 -
- - (5,960,496) -
842,037 253,148 1,212,105 164,118
(132,178) (33,160) (178,464) (25,560)
- 907,962 913,545 -
- - - (185,000)
31,522 (6,244) 27,344 12,345
20,723,830 1,283,529 17,660,233 5,694,108
$ 9,988,297 $ 163,421 $ 7,360,412 $ 2,055,791
$ 1,056,275 $ 101,358 $ 1,433,784 $ 370,962
$ 10,111,339 $ - $ 10,111,339 $ 1,115
$ 1,096,610 $ - $ 1,557,421 $ -
44
Indian River County, Florida
Statement of Fiduciary Net Position
Fiduciary Funds
September 30, 2019
Agency
Other
Postemployment
Benefits Trust
ASSETS
Cash $ 11,645,168 $ 146,224
Investments, at fair value
Index funds - 15,116,359
U.S. government securities funds - 12,201,259
Primary money market fund - 3,044,003
Total assets $ 11,645,168 $ 30,507,845
- -
LIABILITIES
Due to other governments $ 5,902,614 $ -
Other deposits held in escrow 5,742,554 -
Total liabilities $ 11,645,168 -
NET POSITION
Net position restricted for OPEB 30,507,845
Total net position $ 30,507,845
The accompanying notes are an integral part of the financial statements.
45
Indian River County, Florida
Statement of Changes in Fiduciary Net Position
Other Postemployment Benefits Trust Fund
For the Year Ended September 30, 2019
ADDITIONS
Employer contributions $ 2,178,500
Net appreciation in fair value of investments 1,049,800
Less investment expense (2,782)
Net investment income 1,047,018
Total additions 3,225,518
DEDUCTIONS
Benefit payments 2,238,521
Total deductions 2,238,521
Change in net position 986,997
Net position - beginning 29,520,848
Net position - ending $ 30,507,845
The accompanying notes are an integral part of the financial statements.
46
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2019
47
Note Page Note Page
1 Summary of Significant Accounting 4 Property Tax Revenues 66
Policies 48 5 Capital Assets 67
Reporting Entity 48 6 Restricted Cash and Investments 70
Measurement Focus and Basis of 7 Interfund Balances 71
Accounting 49 8 Interfund Transfers 72
Basis of Presentation 52 9 Accounts Payable 73
Assets, Liabilities, Deferred Outflows/ 10 Long-term Liabilities 74
Inflows of Resources, and Net Changes in Long-term Liabilities 74
Position or Fund Balances 54 Governmental Activities 75
Cash and Investments 54 Annual Debt Service Payments 75
Allowance for Doubtful Accounts 55 Spring Training Facility Rev Bonds 75
Receivables and Payables 55 Limited General Obligation Ref Note 78
Inventories 55 Business-type Activities 79
Prepaid and Other Assets 55 Annual Debt Service Payments 79
Restricted Net Position 55 Water and Sewer Revenue
Capital Assets 56 Refunding Note, Series 2015 79
Capitalization of Interest 57 Water and Sewer Revenue
Deferred Outflows/Inflows of Refunding Bonds, Series 2009 80
Resources 57 Compensated Absences 80
Pensions/Net Pension Liability 58 11 Provision for Closure Costs 81
Net OPEB Liability 58 12 Pollution Remediation 82
Unearned Revenues 58 13 Retirement Plan 83
Accrued Compensated Absences 59 14 Other Postemployment Benefits Plan 94
Obligation for Bond Arbitrage Rebate 59 15 Leases 101
Landfill Closure Costs 59 16 Fund Balance 103
Uamortized Bond Discounts 17 Net Position 105
and Premiums 59 18 Risk Management 106
Capital Contributions 59 19 Commitments and Contingencies 107
2 Stewardship, Compliance and Litigation 107
Accountability 60 Contracts and Other Commitments 107
Budgets and Budgetary Accounting 60 Grants 108
3 Cash and Investments 61 20 Subsequent Events 108
Deposits 61
Accrued Interest 61
Investments 62
OPEB Trust Investments 65
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2019
48
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 154,939. 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.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2019
49
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued
A. Reporting Entity – Continued
Blended Component Units
Solid Waste Disposal District (SWDD) – Created pursuant to County Ordinance 87-67, the Board of
County Commissioners serves as the governing body for and has operational responsibility over the
SWDD. The Board also sets the non ad valorem assessment fees for the SWDD. Although legally
separate, the SWDD is appropriately blended as a proprietary fund type (enterprise) component unit
into the primary government.
Emergency Services District (EMS) – Created pursuant to County Ordinance 90-25, the Board of
County Commissioners serves as the governing body for and has operational responsibility over the
EMS. The Board also sets the millage rate for the EMS. Although legally separate, the EMS is
appropriately blended as a governmental fund type (special revenue) component unit into the primary
government.
B. Measurement Focus and Basis of Accounting
The basic financial statements of the County are composed of the following:
Government-wide financial statements
Fund financial statements
Notes to the financial statements
1. Government-wide Financial Statements
Government-wide financial statements display information about the reporting government as a whole,
except for its fiduciary activities. These statements include separate columns for the governmental and
business-type activities of the primary government (including its blended component units).
Governmental activities, which normally are supported by taxes and intergovernmental revenues, are
reported separately from business-type activities, which rely, to a significant extent, on fees and charges
for support. Government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements.
Under the accrual basis of accounting, revenues, expenses, gains, losses, assets, deferred
outflows/inflows of resources, and liabilities resulting from exchange and exchange-like transactions
are recognized when the exchange takes place. Revenues, expenses, gains, losses, assets, and liabilities
resulting from nonexchange transactions are recognized in accordance with the requirements of GASB
Statement 33 – Accounting and Financial Reporting for Nonexchange Transactions.
Program revenues include charges for services, special assessments, and payments made by parties
outside of the reporting government’s citizenry if that money is restricted to a particular program.
Program revenues are netted with program expenses in the statement of activities to present the net
expense of each program.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2019
50
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.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2019
51
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.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2019
52
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued
B. Measurement Focus and Basis of Accounting - Continued
2. Fund Financial Statements - Continued
Proprietary Funds - Continued
Amounts paid to acquire capital assets are capitalized as assets in the fund financial statements, rather
than reported as expenditures. Issuance of long-term debt is recorded as a liability in the fund financial
statements, rather than as an other financing source. Amounts paid to reduce long-term indebtedness are
reported as a reduction of the related liabilities, rather than as an expense.
Fiduciary Funds
The fiduciary funds financial statements include financial information for the agency fund and the other
postemployment benefit trust fund. The agency fund of the County primarily represents assets held by
the County in a custodial capacity for other individuals or governments. The other postemployment
benefits trust fund (OPEB Trust) accounts for activities of the OPEB Trust, which accumulates
resources for health insurance benefit payments for current retirees and for current employees upon
their retirement. The agency and OPEB Trust fund statements are presented using the accrual basis of
accounting.
C. Basis of Presentation
GASB Statement 34, 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.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2019
53
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.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2019
54
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 market value based upon the
custodian bank's valuation. 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.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2019
55
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, 2019, the allowance for water and sewer services was
$424,493 and the allowance for ambulance services was $176,678. No other allowances for doubtful
accounts are maintained since other accounts receivable are considered collectible as reported at
September 30, 2019.
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.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2019
56
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
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2019
57
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 $494,256 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 $6,738,073.
The sources of the unavailable revenue are a special assessment on road paving, ambulance service
billings, and state and federal grants. These amounts are deferred and recognized as an inflow of
resources in the period that the amounts become available.
In addition to the above two deferred items, there are deferred outflows and inflows items related to
pensions as calculated in accordance with GASB Statement 68, Accounting and Financial Reporting
for Pensions. These deferred outflows and inflows will be recognized as adjustments to pension
expense in future reporting years. 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.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2019
58
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. Net Other Postemployment Benefits (OPEB) Liability
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. Unearned Revenues
Unearned revenues represent revenues, which are available but unearned. At September 30, 2019, the
total amount of unearned revenues reported on the statement of net position for the governmental
activities is $672,957 and for the business-type activities is $962,624. In the County's Building Fund, a
business-type activity, revenue was previously considered earned on receipt but has been changed in the
current fiscal year to reflect future performance obligations.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2019
59
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position or Fund
Balances - Continued
13. Accrued Compensated Absences
The County accrues accumulated unpaid vacation and sick leave when earned by the employee. The
current portion is the amount estimated to be used in the following year. The non-current portion is the
amount estimated to be used in subsequent fiscal years. Both the current and non-current estimated
accrued compensated absences amounts for governmental funds are maintained separately and
represent a reconciling item between the fund and government-wide presentations.
14. Obligation for Bond Arbitrage Rebate
Pursuant to Section 148(f) of the U. S. Internal Revenue Code, the County must rebate to the United
States Government the excess of interest earned from the investment of certain debt proceeds and
pledged revenues over the yield rate of the applicable debt. The County uses the “revenue reduction”
approach in accounting for rebatable arbitrage. This approach treats excess earnings as a reduction of
revenue. The County has no arbitrage liability outstanding as of September 30, 2019.
15. Landfill Closure Costs
Under the terms of current state and federal regulations, the Solid Waste Disposal District (SWDD) is
required to place a final cover on closed landfill areas, and to perform certain monitoring and
maintenance functions for a period of up to thirty years after closure. The SWDD recognizes these costs
of closure and post-closure maintenance over the active life of each landfill area, based on landfill
capacity used during the period. Required obligations for closure and post-closure costs are recognized
in the Solid Waste Disposal District Enterprise Fund.
16. Unamortized Bond Discounts and Premiums
Bond discounts and premiums associated with the issuance of proprietary fund revenue bonds are
amortized according to the straight-line method over the remaining life of the bonds. For financial
reporting, unamortized bond discounts and premiums are netted against the applicable long-term debt.
17. Capital Contributions
The capital contributions accounted for in the proprietary fund types represent contributions from other
funds, developers, state and federal grant programs, and impact fees charged to new customers for their
anticipated burden on the existing system. The contributions amount is reported after non-operating
revenues and expenses on the Statement of Revenues, Expenses, and Changes in Fund Net Position in
accordance with GASB Statement 33. Capital contributions for the governmental funds are reported on
the Statement of Activities in accordance with GASB Statement 34 and represent contributions of
capital assets from developers and state agencies.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2019
60
NOTE 2 - STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
Budgets and Budgetary Accounting
The County uses the following procedures in establishing the budgetary data reflected in the financial
statements:
(1) The constitutional officers submit, at various times, to the Board and to certain divisions within
the Florida Department of Revenue and the Florida Clerks of Court Operations Corporation, a proposed
operating budget for the following fiscal year. The operating budget includes proposed expenditures
and the means of financing them, as set forth in Chapter 129 of the Florida Statutes.
(2) The Department of Revenue, State of Florida, has the final authority on the operating budgets for
the Tax Collector and the Property Appraiser included in the General Fund.
(3) Constitutional officers, all departments controlled by the Board, and outside state and local
agencies submit their proposed budgets to the Office of Management and Budget for assistance, review
and compilation. The County Administrator then reviews all County departments, state agencies and
nonprofit organization’s budgets and makes his budget recommendation to the Board.
(4) On or before July 15 of each year, the County Administrator and the Director of the Office of
Management and Budget, as the Board’s designated budget officer, submit to the Board a tentative
budget for the ensuing fiscal year. The tentative budget includes proposed expenditures and the means
of financing them. The Board then holds workshops to review the tentative budget by fund on a
departmental level.
(5) During September, public hearings are held pursuant to Section 200.065 of the Florida Statutes in
order for the Board to receive public input on the tentative budget. At the end of the last public hearing,
the Board enacts ordinances to legally adopt the budgets at the fund level. The budgets legally adopted
by the Board set forth the anticipated revenues by source and the appropriations by function.
(6) Formal budgetary integration on an object level is used as a management control device for the
governmental and proprietary funds of the County. Management is authorized to transfer budgeted
amounts between objects and departments in any fund as long as management does not exceed the total
appropriations of a fund. Board approval to amend the budget is only required when unanticipated
revenues are received that management wishes to have appropriated, thereby increasing the total
appropriations of a fund.
(7) Budgets for the governmental and proprietary fund types are adopted on a basis consistent with
generally accepted accounting principles.
(8) Appropriations for the County lapse at the close of the fiscal year. Unexpected ongoing project
costs may be appropriated in the new fiscal year through a budget amendment.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2019
61
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 $ 336,791,167
Restricted cash and investments 51,253,340
Cash - Statement of Fiduciary Net Position-Agency Fund 11,645,168
Total $ 399,689,675
Deposits $ 117,299,132
Investments 282,390,543
Total $ 399,689,675
A. Deposits
At September 30, 2019, the carrying amount of the primary government’s deposits, including
$11,645,168 in the Agency Fund, was $117,299,132, and the bank balance was $120,595,392. 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, 2019, accrued interest for the County’s portfolio totaled $966,407. The remaining
accrued interest is reflected in utilities and road paving assessments.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2019
62
NOTE 3 - CASH AND INVESTMENTS - Continued
C. Investments
As of September 30, 2019, the County had the following investments:
Weighted
Average
Maturity Portfolio Credit
Investment Type Fair Value In Years Percentage Risks*
Fixed Rate Debt Instruments:
U.S. Treasuries $ 92,014,521 0.96 32.58 % N/A
U.S. Agencies:**
Federal Farm Credit Bureau 48,973,290 0.82 17.34 AA+
Federal Home Loan Bank 38,980,870 0.82 13.80 AA+
Federal Home Loan Mortgage 44,017,080 1.13 15.59 AA+
Federal National Mortgage Assoc. 28,960,030 0.94 10.26 AA+
Other Market Rate Investments:
Florida Trust Day to Day Fund 1,044,047 0.08 0.37 AAAm
Florida PRIME 1,964,131 0.10 0.70 AAAm
FLCLASS 25,294,112 0.21 8.96 AAAm
W&S Sinking Fund Reserve:
U.S. Treasuries 1,142,462 1.22 0.40 N/A
Total Fair Value $ 282,390,543 100.00 %
Weighted Average Maturity of Investments 0.85
* 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 custodian
bank 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.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2019
63
NOTE 3 - CASH AND INVESTMENTS - Continued
C. Investments - Continued
Fair Value Measurement - 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, 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;
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2019
64
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 (Florida Prime) 75%
Florida Trust Day to Day Fund (Florida Trust) 75%
Florida Cooperative Liquid Assets Securities System (FLCLASS) 75%
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 25%
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 any one qualified public depository financial institution and no more than
40% of the portfolio in any one money market fund, non-operating checking or savings account, or
intergovernmental investment pool.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2019
65
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, 2019, 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, 2019 was $2,178,500. Cash balance in the OPEB Trust at September 30, 2019 was $146,224. 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 December 4, 2018). 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 and cash equivalents.
For the fiscal year ended September 30, 2019, the annual money-weighted rate of return on
investments, net of investment expense, was 3.45%. The money-weighted rate of return expresses
investment performance, net of investment expense, adjusted for the changing amounts actually
invested.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2019
66
NOTE 3 - CASH AND INVESTMENTS - Continued
D. OPEB Trust Investments - Continued
As of September 30, 2019, the OPEB Trust had the following investments:
Weighted
Average
Maturity Portfolio
Investment Type Fair Value in Years Percentage
Vanguard 500 Index $ 6,781,765 N/A 22.34 %
Vanguard All World Ex-US 6,081,081 N/A 20.03
Vanguard Mid Cap Index 1,507,343 N/A 4.96
Vanguard Small Cap Index 746,170 N/A 2.46
Vanguard Short-Term Treasury 9,149,265 2.10 30.13
Vanguard Intermediate Treasury 3,051,994 5.50 10.05
Vanguard Prime Money Market 3,044,003 0.13 10.03
Total Fair Value $ 30,361,621 100.00 %
The County has the following recurring fair value measurements for investments in the OPEB Trust as
of September 30, 2019:
Level 1 Level 2 Level 3 Total
Index funds $ 15,116,359 $ - $ - $ 15,116,359
U.S. government securities funds 12,201,259 - - 12,201,259
Money market fund 3,044,003 - - 3,044,003
Total investments $ 30,361,621 $ - $ - $ 30,361,621
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 2018-2019 fiscal year were levied in
October 2018. All taxes are due and payable on November 1 or as soon as the assessment roll is
certified and delivered to the Tax Collector. Discounts are allowed for early payment at the rate of 4%
in November, 3% in December, 2% in January, and 1% in February. Taxes paid in March are without
discount. All unpaid taxes become delinquent as of April 1. Virtually all unpaid taxes are collected via
the sale of tax certificates on or prior to June 1; therefore, there were no material taxes receivable at
fiscal year end.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2019
67
NOTE 5 - CAPITAL ASSETS
A. Governmental Activities
Primary Government Beginning Ending
Governmental activities: Balance Additions Deletions Balance
Capital assets, not being depreciated:
Land $ 134,781,655 $ 2,422,720 $ - $ 137,204,375
Construction in progress 36,022,705 18,596,010 (23,586,712) 31,032,003
Right-of-way 59,336,440 4,093,870 (172,902) 63,257,408
Intangibles 1,184,036 175,083 - 1,359,119
Infrastructure 3,575,067 - - 3,575,067
Total capital assets, not being depreciated 234,899,903 25,287,683 (23,759,614) 236,427,972
Capital assets, being depreciated:
Buildings and improvements 246,845,048 7,492,309 - 254,337,357
Equipment 77,329,465 10,853,135 (5,063,322) 83,119,278
Intangibles 4,923,141 256,417 - 5,179,558
Infrastructure 357,770,368 13,437,241 - 371,207,609
Total capital assets, being depreciated 686,868,022 32,039,102 (5,063,322) 713,843,802
Less accumulated depreciation for:
Buildings and improvements (84,906,464) (7,548,544) - (92,455,008)
Equipment (52,425,148) (5,735,881) 3,485,904 (54,675,125)
Intangibles (3,671,652) (467,665) - (4,139,317)
Infrastructure (210,287,645) (8,117,141) - (218,404,786)
Total accumulated depreciation (351,290,909) (21,869,231) 3,485,904 (369,674,236)
Total capital assets, being depreciated, net 335,577,113 10,169,871 (1,577,418) 344,169,566
Governmental activities capital assets, net $ 570,477,016 $ 35,457,554 $ (25,337,032) $ 580,597,538
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2019
68
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 $ 3,774,810
Public safety 5,441,381
Physical environment 717,923
Transportation 7,834,007
Economic environment 232
Human service 132,694
Culture/recreation 3,520,667
Court related 251,961
Capital assets held by the government’s internal service funds are
charged to the various functions based on their usage of the assets 195,556
Total depreciation expense – governmental activities $ 21,869,231
In accordance with GASB Statement 42, Accounting and Financial Reporting for Impairment of
Capital Assets and for Insurance Recoveries, the County wrote down the value of the Sector 3 Beach
Restoration asset in the amount of $202,362. This impairment was caused by Hurricane Dorian erosion
damage that occurred in September 2019. The impairment amount is included as a culture and
recreation program expense on the Statement of Activities.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2019
69
NOTE 5 - CAPITAL ASSETS – Continued
B. Business-type Activities
Primary Government Beginning Ending
Business-type activities: Balance Additions Deletions Balance
Capital assets, not being depreciated:
Land, improvements to land $ 25,731,192 $ 1,012,684 $ - $ 26,743,876
Intangibles 1,799,406 205,128 - 2,004,534
Construction in progress 9,224,525 8,615,617 (5,680,275) 12,159,867
Total capital assets, not being depreciated 36,755,123 9,833,429 (5,680,275) 40,908,277
Capital assets, being depreciated:
Buildings, distribution systems, & improvements 456,246,633 11,250,965 - 467,497,598
Intangibles 1,341,671 25,951 (45,791) 1,321,831
Equipment 18,285,846 1,808,021 (684,815) 19,409,052
Total capital assets, being depreciated 475,874,150 13,084,937 (730,606) 488,228,481
Less accumulated depreciation for:
Buildings, distribution systems, & improvements (281,721,926) (14,346,914) - (296,068,840)
Intangibles (1,146,270) (73,734) 45,791 (1,174,213)
Equipment (14,032,534) (1,432,390) 682,424 (14,782,500)
Total accumulated depreciation (296,900,730) (15,853,038) 728,215 (312,025,553)
Total capital assets, being depreciated, net 178,973,420 (2,768,101) (2,391) 176,202,928
Business-type activities capital assets, net $ 215,728,543 $ 7,065,328 $ (5,682,666) $ 217,111,205
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 $ 1,142,536
Golf Course 240,790
County Utilities 14,385,959
County Building 83,753
Total depreciation expense – business-type activities $ 15,853,038
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2019
70
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:
Primary Government
Governmental Business-type
Activities Activities Total
Sinking funds/current portion of debt $ 4,592,032 $ 1,233,660 $ 5,825,692
Renewal and replacement - 3,485,928 3,485,928
Retainage payable 638,646 - 638,646
Customer deposits 172,613 3,478,760 3,651,373
Capital construction - 29,497,019 29,497,019
Closure and maintenance costs - 8,154,682 8,154,682
Total $ 5,403,291 $ 45,850,049 $ 51,253,340
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2019
71
NOTE 7 - INTERFUND BALANCES
Interfund balances at September 30, 2019, consisted of the following:
Receivable Fund Payable Fund Amount
Major Governmental Funds:
General Fund Metropolitan Planning Organization Fund $ 85,000
General Fund Federal/State Grants Fund 5,000
General Fund Golf Course Enterprise Fund 297,031
387,031
Emergency Services District Fund General Fund 369,730
Optional Sales Tax Fund Jackie Robinson Training Complex
Reserve Fund 201,024
Nonmajor Governmental Funds:
Land Acquisition Bonds Fund General Fund 54,067
Street Lighting Districts Fund General Fund 2,930
Vero Lake Estates Fund General Fund 2,574
East Gifford Stormwater Fund General Fund 10
Tourist Development Fund Jackie Robinson Training Complex
Reserve Fund 650,000
709,581
Total Governmental Funds $ 1,667,366
Major Enterprise Fund:
Solid Waste Disposal District Fund General Fund $ 135,010
Internal Service Fund:
Self Insurance Fund General Fund $ 411,847
Amounts due from the General Fund represent excess fees and payments of the constitutional officers
remitted to various funds subsequent to September 30, 2019. In January 2016, the General Fund loaned
$254,500 to the Golf Course Enterprise Fund to purchase new golf carts at an interest rate of 2.0%. In
September 2017, the General Fund loaned $1,100,000 to the Golf Course Enterprise Fund for a new
irrigation system at an interest rate of 1.5%. The amount reported as due from the Golf Course
Enterprise Fund is the current portion of the scheduled payments due to the General Fund in fiscal year
2020. The amounts due from the nonmajor governmental funds represent short-term cash loans that are
expected to be repaid within the next twelve months. The remaining amount due from the Golf Course
Enterprise Fund is reported as an interfund advance.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2019
72
NOTE 7 - INTERFUND BALANCES - Continued
Interfund advances at September 30, 2019, consisted of the following:
Receivable Fund Payable Fund Amount
General Fund Golf Course Enterprise Fund $ 275,000
This amount is considered a long-term advance between major funds expected to be paid in fiscal years
2021 and 2022. 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, 2019, consisted of the following:
Transfers In:
Secondary
Roads Optional Nonmajor County Internal
General Construction Transportation Sales Tax Governmental Utilities Service
Transfers Out: Fund Fund Fund Fund Funds Fund Funds Total
General Fund $ - $ - $ 11,101,166 $ - $ 198,525 $ - $ 43,332 $ 11,343,023
Transportation
Fund - 157,880 - - - 78,320 - 236,200
Emergency
Services
District Fund 732,705 - - - - - - 732,705
Optional Sales
Tax Fund 1,618,650 - - - 316,320 111,840 - 2,046,810
Nonmajor
Governmental
Funds 255,725 - - 1,725,000 212,725 - - 2,193,450
Total $ 2,607,080 $ 157,880 $ 11,101,166 $ 1,725,000 $ 727,570 $ 190,160 $ 43,332 $ 16,552,188
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2019
73
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) use capital project fund revenues for
improvements to the Jackie Robinson Training Complex and subsidize the North Sebastian Septic to
Sewer incentive program, 6) use nonmajor governmental fund revenues for improvements to the Jackie
Robinson Training Complex, 7) provide matching funds for grants, and 8) 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 at September 30, 2019, were as follows:
Salaries and Total
Governmental Activities: Vendors Benefits Payables
General $ 2,605,618 $ 1,421,172 $ 4,026,790
Impact Fees 297,185 - 297,185
Secondary Roads Construction 701,553 26,505 728,058
Transportation 432,017 336,647 768,664
Emergency Services 870,929 1,080,573 1,951,502
Optional Sales Tax 430,072 - 430,072
Other Governmental 6,849,542 123,968 6,973,510
Total Governmental Activities $ 12,186,916 $ 2,988,865 $ 15,175,781
Business-type Activities:
Payable from current assets:
Solid Waste $ 1,379,685 $ 26,544 $ 1,406,229
Golf Course 159,342 22,202 181,544
Utilities 2,278,443 354,842 2,633,285
Building 117,949 109,013 226,962
Payable from restricted assets:
Utilities 70,062 - 70,062
Total Business-type Activities $ 4,005,481 $ 512,601 $ 4,518,082
Included in salaries and benefits payable is a liability to the Florida Retirement System (FRS) for
pension contributions due for the month of September 2019. The amounts due to FRS at September 30,
2019 are $282,960 for governmental activities and $38,460 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 2019 other than that listed in Note 8.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2019
74
NOTE 10 - LONG-TERM LIABILITIES
A. Changes in Long-Term Liabilities
Long-term liability activity for the year ended September 30, 2019, was as follows:
Due
Beginning Ending Within
Balance Additions Retirements Balance One Year
Governmental Activities:
Bonds payable:
Spring Training Facility Revenue Bonds -
Series 2001 $ 5,665,000 $ - $ 1,510,000 $ 4,155,000 $ 290,000
Notes from direct borrowings and direct
placements:
Limited General Obligation Refunding Note 11,495,000 - 4,227,000 7,268,000 4,298,000
Other liabilities:
Pollution remediation 2,121,900 - 506,600 1,615,300 74,273
Capital lease - 20,855 5,408 15,447 3,314
Claims payable 8,439,000 25,995,950 26,180,950 8,254,000 2,600,000
Compensated absences 12,051,743 7,716,152 7,137,385 12,630,510 6,759,059
Total other liabilities 22,612,643 33,732,957 33,830,343 22,515,257 9,436,646
Governmental activities long-term liabilities $ 39,772,643 $ 33,732,957 $ 39,567,343 $ 33,938,257 $ 14,024,646
Business-type Activities:
Bonds payable:
Water & Sewer Refunding Revenue Bonds -
Series 2009 $ 13,520,000 $ - $ 13,520,000 $ - $ -
Add: Unamortized bonds premium 1,030,183 - 1,030,183 - -
Total bonds payable 14,550,183 - 14,550,183 - -
Notes from direct borrowings and direct
placements:
Water & Sewer Revenue Refunding Note 4,199,000 - 1,025,000 3,174,000 1,042,000
Other liabilities:
Landfill closure and maintenance costs 14,115,178 1,495,000 7,455,496 8,154,682 1,250,481
Compensated absences 1,009,749 823,550 796,207 1,037,092 816,267
Total notes payable and other liabilities 19,323,927 2,318,550 9,276,703 12,365,774 3,108,748
Business-type activities long-term liabilities $ 33,874,110 $ 2,318,550 $ 23,826,886 $ 12,365,774 $ 3,108,748
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2019
75
NOTE 10 - LONG-TERM LIABILITIES - Continued
B. Primary Government
Governmental Activities
Annual Debt Service Payments - Governmental Activities
The annual debt service payments for bonds and notes from direct borrowings and direct placements
outstanding at September 30, 2019, are as follows:
Fiscal Year Spring Training Facility Limited General
Ending Revenue Bonds Obligation Refunding Note
September 30 Series 2001 Series 2015
Principal Interest Principal Interest
2020 $ 290,000 $ 209,237 $ 4,298,000 $ 120,649
2021 305,000 194,013 2,970,000 49,302
2022 305,000 178,000 - -
2023 320,000 162,750 - -
2024 340,000 146,750 - -
2025-2029 1,960,000 462,000 - -
2030-2031 635,000 40,750 - -
Total 4,155,000 1,393,500 7,268,000 169,951
Less:
Current portion 290,000 4,298,000
Total - long-term $ 3,865,000 $ 2,970,000
Spring Training Facility Revenue Bonds
Purpose - On August 15, 2001, the County issued $16,810,000 of Spring Training Facility Revenue
Bonds, Series 2001. The Series 2001 bonds are being issued by the County to provide funds, together
with other available funds, to (1) finance a portion of the cost of acquisition and expansion of a spring
training facility currently known as the “Jackie Robinson Training Complex”; (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.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2019
76
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.
On February 26, 2019, the County elected a partial redemption of the bonds outstanding and maturing
on 2021 and 2031. The principal amount of the redeemed bonds totaled $1,125,000. The net economic
gain was $91,579 and will be amortized over the remaining life of the debt. The unamortized balance
as of September 30, 2019 is $87,333 and is reflected as a deferred outflow of resources on the
government-wide Statement of Net Position.
The current principal and interest payments of $1,762,018 represent 18.24% of total pledged revenues.
All three revenue sources totaled $9,660,773 for the current fiscal year. The County applied 100% of
the state subsidy and none of the Half-Cent Sales Tax to the debt service payments. The County also
applied 100% of the Fourth-Cent Tourist Tax up to the day of the partial payoff. The total principal and
interest remaining to be paid on the bonds is $5,548,500.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2019
77
NOTE 10 - LONG-TERM LIABILITIES - Continued
B. Primary Government - Continued
Spring Training Facility Revenue Bonds - Continued
Bonds Issued - At September 30, 2019, Spring Training Facility Revenue Bonds consisted of the
following:
Interest Outstanding at
Rates and September 30,
Description Date Maturity Issue 2019
Spring Training Facility Revenue 3.30%-5.25%
Bonds, Series 2001 4/1 and 10/1 2031 $ 16,810,000 $ 4,155,000
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, 2020 $ 290,000
April 1, 2021 305,000
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 180,000
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2019
78
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 included 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 $163,594 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 ½ 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 $4,744,345 of which 100% is pledged for payment of this note and the 2006 bond. Total
principal and interest paid on this note was $4,417,817 and represents 93% of total pledged revenue.
Maturity and Interest Rate - Interest payments are made semiannually beginning July 1, 2015 through
July 1, 2021. Annual principal payments begin July 1, 2015 and end July 1, 2021. The interest rate is
fixed at 1.66%. The note may be paid early without a prepayment penalty.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2019
79
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 notes from direct borrowings and direct placements outstanding
at September 30, 2019, are as follows:
Fiscal Year Water and Sewer
Ending Revenue Refunding
September 30 Note Series 2015
Principal Interest
2020 $ 1,042,000 $ 52,371
2021 1,058,000 35,178
2022 1,074,000 17,721
Total 3,174,000 105,270
Less:
Current portion 1,042,000
Total - long-term $ 2,132,000
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) was $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, 2019 is $243,329 and is reflected as a deferred outflow of
resources on the Statement of Net Position.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2019
80
NOTE 10 - LONG-TERM LIABILITIES - Continued
B. Primary Government - Continued
Water and Sewer Revenue Refunding Note, Series 2015 - Continued
Pledge of Revenues – The note is collateralized, for the remaining term of the note, by a pledge of all
net revenues derived from the operation of the system, certain surcharges, and special assessments.
Annual principal and interest payments of $1,094,284 represent approximately eleven percent of net
revenues of $9,721,760 of the utility system. The total principal and interest remaining to be paid on
the 2015 note is $3,279,270. 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 County elected to redeem 100% of the outstanding bonds in the amount of $11,315,000, at par, on
September 1, 2019 in addition to the regularly scheduled debt payment of $2,205,000, which was due
and payable on September 1, 2019.
At the time of the early call, $3,151,995 of debt service reserve was released from restricted cash to
operating cash. In addition, $869,445 in unamortized bond premium and $452,340 in unamortized net
economic gain was charged to bond amortization expense.
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.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2019
81
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 $14.0 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 71% 2021 $ 5,981,893
Construction and Demolition - Cell I 93% 2027 954,866
Post-closure Costs
Class I - Segments I and II N/A N/A 1,163,435
Construction and Demolition - Cell I N/A N/A 54,488
Total account balance at 9/30/19 $ 8,154,682
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, 2019, $8,144,664 was on deposit at the Florida Cooperative Liquid Assets
Securities System (FLCLASS) and $10,018 was on deposit in the County’s Operating account.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2019
82
NOTE 11 - PROVISION FOR CLOSURE COSTS - Continued
A summary of changes in the landfill closure liability account is as follows:
Balance Balance
10/1/2018 Deposits Withdrawals 09/30/19
Closure and long-term care costs $ 14,115,178 $ 1,495,000 $ (7,455,496) $ 8,154,682
Of the $8,154,682 liability for closure and long-term care costs, management estimates that $1,250,481
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 $1,615,300 at September 30, 2019 for the two sites. Of the
$1,615,300 liability for pollution remediation, management estimates that $74,273 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 $1,600,000 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 $15,300 and will be paid from
the General Fund.
Total Governmental Activities liability: $1,615,300
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2019
83
NOTE 13 - RETIREMENT PLAN
General Information: All of the County's employees participate in the Florida Retirement System
(FRS). As provided by Chapters 121 and 112, Florida Statutes, the FRS provides two cost sharing,
multiple-employer defined benefit plans administered by the Florida Department of Management
Services, Division of Retirement, including the FRS Pension Plan (Pension Plan) and the Retiree Health
Insurance Subsidy (HIS Program). Under Section 121.4501, Florida Statutes, the FRS also provides a
defined contribution plan (Investment Plan) alternative to the FRS Pension Plan, which is administered
by the State Board of Administration (SBA). As a general rule, membership in the FRS is compulsory
for all employees working in a county, state university, community college, or a participating city or
special district within the State of Florida. The FRS provides retirement and disability benefits, annual
cost-of-living adjustments, and death benefits to plan members and beneficiaries. Benefits are
established by Chapter 121, Florida Statutes, and Chapter 60S, Florida Administrative Code.
Amendments to the law can be made only by an act of the Florida State Legislature.
The State of Florida annually issues a publicly available financial report that includes financial
statements and required supplementary information for the FRS. The latest available report may be
obtained by writing to the State of Florida Division of Retirement, Department of Management
Services, P.O. Box 9000, Tallahassee, Florida 32315-9000, or from the web site:
www.dms.myflorida.com/workforce_operations/retirement/publications.
Pension Plan
Plan Description: The Pension Plan is a cost-sharing multiple-employer defined benefit pension plan,
with a Deferred Retirement Option Program (DROP) for eligible employees.
Benefits Provided: Benefits under the Pension Plan are computed on the basis of age, average final
compensation, and service credit. For Pension Plan members enrolled before July 1, 2011, Regular
class members who retire at or after age 62 with at least six years of credited service or 30 years of
service regardless of age are entitled to a retirement benefit payable monthly for life, equal to 1.6% of
their final average compensation based on the five highest years of salary for each year of credited
service. Vested members with less than 30 years of service may retire before age 62 and receive
reduced retirement benefits.
Special Risk Administrative Support class members who retire at or after age 55 with at least six years
of credited service or 25 years of service regardless of age are entitled to a retirement benefit payable
monthly for life, equal to 1.6% of their final average compensation based on the 5 highest years of
salary for each year of credited service.
Special Risk class members (sworn law enforcement officers, firefighters, and correctional officers)
who retire at or after age 55 with at least 6 years of credited service, or with 25 years of service
regardless of age, are entitled to a retirement benefit payable monthly for life equal to 3% of their final
average compensation based on the 5 highest years of salary for each year of credited service.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2019
84
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, 2019 were:
Regular class 8.47%, Special Risk 25.48%, Special Risk Administrative Support 38.59%, Senior
Management 25.41%, DROP 14.60%, and Elected Official class 48.82%. 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.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2019
85
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,
2019, was $11,186,468. Employee contributions for September 30, 2019 were $1,859,394. 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, 2019, the Division of Retirement calculated the
County’s liability of $120,518,805 for the FRS plan for its proportionate share of the net pension liability.
The net pension liability was measured as of June 30, 2019, and the total pension liability used to calculate
the net pension liability was determined by an actuarial valuation as of July 1, 2019. 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, 2019, the County’s proportion share was .3499% for the FRS Pension
Plan. This was an increase of 0.0038% from its proportionate share measured as of June 30, 2018.
The County anticipates that the pension liability will be liquidated in the following manner: General Fund
54 percent, Emergency Services District Fund 34 percent, Transportation Fund 4 percent, Enterprise
Funds 6 percent, and the remaining 2 percent is by the Other Governmental Funds and Internal Service
Funds.
For the year ended September 30, 2019, the County's calculated total increase of actuarially determined
pension expense was $21,552,716. 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 $ 7,148,316 $ 74,793
Changes in assumptions 30,954,426 -
Net difference between projected and actual
earnings on pension plan investments - 6,667,722
Changes in proportion and differences between
County contributions and proportionate share of
contributions 4,337,459 1,479,948
County contributions subsequent to the measure-
ment date 2,957,939 -
Total $ 45,398,140 $ 8,222,463
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2019
86
NOTE 13 - RETIREMENT PLAN - Continued
Pension Plan - Continued
The deferred outflows of resources related to the pension plan totaling $2,957,939 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, 2020. Other amounts reported as deferred outflows of
resources and deferred inflows of resources related to pensions will be recognized in pension expense
as follows:
Fiscal Year Ending September 30:
Amount
Recognized
2020 $ 12,409,385
2021 3,743,531
2022 9,044,723
2023 6,823,005
2024 1,759,623
Thereafter 437,471
Total $ 34,217,738
Actuarial Assumptions: The total pension liability in the July 1, 2019 actuarial valuation was
determined using the following actuarial assumptions, applied to all periods included in the
measurement:
Valuation date: July 1, 2019
Measurement date: June 30, 2019
Discount rate: 6.90%
Long-term expected rate of return: 6.90%, net of pension plan investment expense,
including inflation
Inflation: 2.60%
Salary increase: 3.25%, including inflation
Mortality: PUB-2010 base table, projected generationally
with Scale MP-2018
Actuarial cost method: Individual Entry Age
The actuarial assumptions that determined the total pension liability used in the July 1, 2019 valuation
were based on the results of an actuarial experience study for the period July 1, 2013 through June 30,
2018.
The following changes in actuarial assumptions occurred in 2019:
The long-term expected rate of return was decreased from 7.00% to 6.90%, and the active
member mortality assumption was changed from the Generational RP-2000 with Projection
Scale BB tables to the PUB-2010 base table, projected generationally with Scale MP-2018.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2019
87
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
Target
Allocation
Annual
Arithmetic
Return
Compound
Annual
(Geometric)
Return
Standard
Deviation
Cash 1% 3.3% 3.3% 1.2%
Fixed Income 18% 4.1% 4.1% 3.5%
Global Equity 54% 8.0% 6.8% 16.5%
Real Estate (Property) 10% 6.7% 6.1% 11.7%
Private Equity 11% 11.2% 8.4% 25.8%
Strategic Investments 6% 5.9% 5.7% 6.7%
Total 100%
Assumed inflation-mean 2.6% 1.7%
Discount Rate for Pension Plan: The discount rate used to measure the total pension liability was
6.90%. 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 6.90%. 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 Current Discount 1% Increase
(5.90%) Rate (6.90%) (7.90%)
County’s proportionate share of NPL $208,336,882 $120,518,805 $47,175,857
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2019
88
NOTE 13 - RETIREMENT PLAN - Continued
Pension Plan - Continued
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.
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, 2019, 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, 2019, 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 $1,373,064 for the fiscal year ended September 30, 2019.
Pension Liabilities, Pension Expense, and Deferred Outflow of Resources and Deferred Inflow of
Resources Related to HIS Program: At September 30, 2019, the Division of Retirement calculated the
County’s liability of $27,171,124 for its proportionate share of the HIS Program’s net pension liability.
The net pension liability was measured as of June 30, 2019, and the total pension liability used to
calculate the net pension liability was determined by an actuarial valuation as of July 1, 2019. At June
30, 2019, the County’s proportional share was 0.2428% for the HIS Program. This was an increase of
0.0031% from its proportionate share measured as of June 30, 2018.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2019
89
NOTE 13 - RETIREMENT PLAN - Continued
Retiree Health Insurance Subsidy (HIS) Program - Continued
For the year ended September 30, 2019, the County recognized pension expense of $1,280,370. 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 $ 330,023 $ 33,270
Changes in assumptions 3,146,141 2,220,745
Net difference between projected and actual
earnings on pension plan investments 17,533 -
Changes in proportion and differences between
County contributions and proportionate share of
contributions 1,485,067 294,727
County contributions subsequent to the measure-
ment date 346,444 -
Total $ 5,325,208 $ 2,548,742
The deferred outflows of resources related to HIS Program totaling $346,444 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, 2020. Other amounts reported as deferred outflows of
resources and deferred inflows of resources related to HIS Program will be recognized in pension
expense as follows:
Fiscal Year Ending September 30:
Amount
Recognized
2020 $ 1,035,582
2021 828,808
2022 453,687
2023 (329,450)
2024 59,842
Thereafter 381,553
Total $ 2,430,022
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2019
90
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, 2019 actuarial
valuation was determined using the following actuarial assumptions, applied to all periods included in
the measurement:
Valuation date: July 1, 2019
Measurement date: June 30, 2019
Discount rate: 3.50%
Long-term expected rate of return: N/A
Municipal bond rate: 3.50%
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,
2019 valuation were based on the results of an actuarial experience study for the period July 1, 2013
through June 30, 2018.
The following changes in actuarial assumptions occurred in 2019:
The municipal rate used to determine the total pension liability was decreased from 3.87% to
3.50%.
Discount Rate for HIS Program: In general, the discount rate for calculating the total pension liability is
equal to the single rate equivalent to discounting at the long-term expected rate of return for benefit
payments prior to the projected depletion date. Because the HIS Program is essentially funded on a
pay-as-you-go basis, the depletion date is considered to be immediate. The single equivalent discount
rate is equal to the municipal bond rate selected by the plan sponsor. The Bond Buyer General
Obligation 20-Bond Municipal Bond Index was adopted as the applicable municipal bond index.
Long-term Expected Rate of Return: As stated above, the HIS Program is essentially funded on a pay-
as-you-go basis. As such, there is no assumption for a long-term expected rate of return on a portfolio,
no assumptions for cash flows into and out of the pension plan, or assumed asset allocation.
Sensitivity of the 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 3.50%. 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
(2.50%) Rate (3.50%) (4.50%)
County’s proportionate share of NPL $31,017,231 $27,171,124 $23,967,752
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2019
91
NOTE 13 - RETIREMENT PLAN - Continued
Retiree Health Insurance Subsidy (HIS) Program - Continued
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.
Total Pension Liability - FRS Pension and HIS Program Combined
At September 30, 2019, the Division of Retirement calculated the County’s total liability of $147,689,929
for its proportionate share of the net pension liability. The net pension liability was measured as of June
30, 2019, and the total pension liability used to calculate the net pension liability was determined by an
actuarial valuation as of July 1, 2019. At June 30, 2019, the County’s total proportional share was
0.5928%. This was an increase of 0.0070% from its proportionate share measured as of June 30, 2018.
For the year ended September 30, 2019, the County recognized pension expense of $22,833,086. In
addition, the County reported deferred outflows of resources and deferred inflows of resources related to
the pension and HIS program from the following sources:
Deferred Outflows Deferred Inflows
Description of Resources of Resources
Differences between expected and actual experience $ 7,478,339 $ 108,063
Changes in assumptions 34,100,567 2,220,745
Net difference between projected and actual
earnings on pension plan investments 17,533 6,667,722
Changes in proportion and differences between
County contributions and proportionate share of
contributions 5,822,526 1,774,675
County contributions subsequent to the measure-
ment date 3,304,383 -
Total $ 50,723,348 $ 10,771,205
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2019
92
NOTE 13 - RETIREMENT PLAN - Continued
Total Pension Liability – FRS Pension and HIS Program Combined - Continued
The deferred outflows of resources totaling $3,304,383 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, 2020. Other amounts reported as deferred outflows of resources and deferred inflows of
resources will be recognized in pension expense as follows:
Fiscal Year Ending September 30:
Amount
Recognized
2020 $ 13,416,086
2021 4,466,977
2022 9,533,714
2023 6,645,901
2024 1,831,654
Thereafter 753,428
Total $ 36,647,760
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.
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, 2019, 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.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2019
93
NOTE 13 - RETIREMENT PLAN - Continued
FRS Investment Plan - Continued
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 2018-2019 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 $2,000,281 for fiscal year
ended September 30, 2019. Employee contributions totaled $403,432 for the same period.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2019
94
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, 2018, range from $317 for single coverage Medicare
participants to $875 for family coverage. Life insurance is available to retirees at a flat rate of $.70 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.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2019
95
NOTE 14 – OTHER POSTEMPLOYMENT BENEFITS PLAN (OPEB) - Continued
A. Plan Description - Continued
The County subsidizes the cost of the health premiums for each retiree based upon their years of service
and employment date (as mentioned above); a 2% discount is given for each year of service based upon
the following table:
Hired Before 2/1/2006 Hired On
or After
2/1/2006
Retirement
Date Service Under Age 65
Retiree or Spouse
Medicare Eligible
Before 10/1/2004 No Subsidy 60%*
No Subsidy
**
After 10/1/2004 but on
or before
1/31/2009***
Less than 15
years No Subsidy 20% Subsidy**
At least 15
years
2% per Year of Service
(maximum of 40%)
Additional 20% Subsidy
(maximum of 60%)**
After 1/31/2009***
Less than 15
years No Subsidy No Subsidy
At least 15
years
2% per Year of Service
(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.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2019
96
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 $1,578 per employee, approximately 2.63% 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, 2019, the County contributed $2.2 million to the qualifying
OPEB Trust. Plan members receiving benefits contributed $2.2 million. We anticipate that the OPEB
liability will be liquidated in the following manner: General Fund 56 percent, Transportation Fund 6
percent, Emergency Services District Fund 28 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.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2019
97
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, 2019, were as follows:
Total OPEB Liability $ 33,207,465
Plan fiduciary net position (30,507,845)
County's net OPEB liability $ 2,699,620
Plan fiduciary net position as a percentage of the total
OPEB liability 91.87%
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 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.
Healthcare Cost Trend Rates Based on the Getzen Model, with trend starting at 7.0%
and gradually decreasing to an ultimate trend rate of
4.39% (including the impact of the excise tax).
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2019
98
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 There were no benefit changes during the year.
E. 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 2.75%; 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%.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2019
99
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:
Sensitivity of Net OPEB Liability
to the Single Discount Rate Assumption
Current Single Discount
1% Decrease Rate Assumption 1% Increase
(5.00%) (6.00%) (7.00%)
$ 5,280,961 $ 2,699,620 $ 379,224
Regarding the sensitivity of the net OPEB liability to changes in the healthcare cost trend rates, the
following presents the plan's net OPEB liability, calculated using the assumed trend rates as well as
what the plan's net OPEB liability would be if it were calculated using a trend rate that is one percent
lower or one percent higher:
Sensitivity of Net OPEB Liability
to the Healthcare Cost Trend Rate Assumption
Current Healthcare Cost
1% Decrease Trend Rate Assumption 1% Increase
(6% down to 3.39%) (7% down to 4.39%) (8% down to 5.39%)
$(331,749) $ 2,699,620 $ 6,189,812
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2019
100
NOTE 14 – OTHER POSTEMPLOYMENT BENEFITS PLAN (OPEB) - Continued
G. Changes in the Net OPEB Liability
Increase (Decrease)
Plan
Total OPEB Fiduciary Net OPEB
Liability Net Position Liability
(a) (b) (a) - (b)
Balances at 9/30/2018 $ 32,974,379 $ 29,520,848 $ 3,453,531
Changes for the year:
Service cost 528,585 - 528,585
Interest 1,943,022 - 1,943,022
Contributions - employer - 2,178,500 (2,178,500)
Net investment income - 1,047,018 (1,047,018)
Benefit payments (2,238,521) (2,238,521) -
Net changes 233,086 986,997 (753,911)
Balances at 9/30/2019 $ 33,207,465 $ 30,507,845 $ 2,699,620
H. OPEB Expense and Deferred Outflows and Inflows of Resources Related to OPEB
For the year ended September 30, 2019, the County recognized OPEB expense of ($124,247). At
September 30, 2019, the County reported deferred outflows of resources and deferred inflows of
resources related to OPEB from the following sources:
Deferred Deferred
Outflows of Inflows of
Description Resources Resources
Differences between expected and actual experience $ 2,148,784 $ -
Changes of assumptions - 9,291,425
Net difference between projected and actual earnings on
OPEB plan investments 726,405 -
$ 2,875,189 $ 9,291,425
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2019
101
NOTE 14 – OTHER POSTEMPLOYMENT BENEFITS PLAN (OPEB) - Continued
I. 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
September 30
Net Deferred Outflows
of Resources
2020 $ (826,404)
2021 (826,404)
2022 (826,406)
2023 (875,889)
2024 (1,020,377)
Thereafter (2,040,756)
Total $ (6,416,236)
NOTE 15 - LEASES
A. 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 $686,782 and lease expenditures totaled $325,132 for
the year ended September 30, 2019. The County also leases other equipment and office facilities as
both lessor and lessee on a month-to-month basis.
1. Future Minimum Lease Receipts
Year Amount
2020 $ 724,207
2021 689,000
2022 632,461
2023 604,851
2024 535,945
2025-2029 1,984,350
2030-2034 1,021,262
2035-2039 583,481
2040-2044 509,760
2045-2048 115,281
Total future minimum receipts $ 7,400,598
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2019
102
NOTE 15 - LEASES - Continued
A. 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 $32,231,874 and a carrying value of $20,748,460.
Current year depreciation on property being leased was $645,147.
2. 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, 2019:
Year Amount
2020 $ 216,085
2021 160,314
2022 95,564
2023 28,904
2024 21,294
2025-2029 25,559
2030-2034 7,500
2035-2039 6,000
2040-2044 4,500
2045-2049 3,900
2050-2054 3,000
2055-2059 1,500
2060-2064 1,500
2065-2069 1,500
2070-2074 1,500
2075-2078 600
Total future minimum lease payments $ 579,220
B. Capital Lease
The County has entered into a noncancelable capital lease. Assets acquired under this lease totaled
$20,855 for the fiscal year ended September 30, 2019. The following is a schedule, by years, of
minimum future lease payments to be paid for noncancelable capital leases as of September 30:
Year Amount
2020 $ 3,592
2021 3,592
2022 3,592
2023 3,592
2024 1,796
Total future minimum lease payments $ 16,164
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2019
103
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.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2019
104
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, 2019, reserve amounts for those funds were:
Budget
Disaster Relief Stabilization Total
General Fund $ 6,800,000 $ 6,800,000 $ 13,600,000
Transportation Fund 900,000 900,000 1,800,000
Emergency Services District Fund 2,100,000 2,100,000 4,200,000
Total $ 9,800,000 $ 9,800,000 $ 19,600,000
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.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2019
105
NOTE 16 - FUND BALANCE – Continued
D. Fund Balance Deficit
The Federal/State Grants Fund, a nonmajor Governmental Fund, had a deficit in fund balance of $3,180
at September 30, 2019. This deficit will be eliminated by grant proceeds in fiscal year 2020. The
Jackie Robinson Training Complex Reserve Fund, a nonmajor Governmental Fund, had a deficit in
fund balance of $157,350 at September 30, 2019. This deficit will be eliminated by tourist tax
collections in future fiscal years.
NOTE 17 – NET POSITION
A. Net Position Restricted by Enabling Legislation
The government-wide statement of net position for the primary government reports $171,911,419 of
restricted net position, of which $124,004,434 is restricted by enabling legislation.
NOTE 18 - RISK MANAGEMENT
General Liability, Property, Worker’s Compensation and Medical
The County is exposed to various risks of loss related to torts, theft of, damage to and destruction of
assets, errors or omissions, injuries to employees, and natural disasters. The County established a Self
Insurance Fund (an internal service fund) to account for and finance its uninsured risk of loss. Under
this program, the Self Insurance Fund provides coverage as follows:
10/01/15 to
9/30/2019
Worker’s Compensation $ 650,000
General Liability 200,000
Auto Liability 200,000
Property Damage 200,000
Error or Omissions 200,000
Annual Aggregate 2,000,000
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 $41,832 in
fiscal year 2019, three workers compensation reimbursements totaling $1,685 in fiscal year 2018, and
three workers compensation reimbursements totaling $37,643 in fiscal year 2017.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2019
106
NOTE 18 - RISK MANAGEMENT - Continued
General Liability, Property, Worker’s Compensation and Medical - Continued
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.
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 eight medical claim reimbursements totaling $670,688 in
excess of the $300,000 limit for fiscal year 2019. In fiscal year 2018 there were eleven medical claim
reimbursements totaling $471,549 and in fiscal year 2017 there were three totaling $61,593.
The claims liability of $8,254,000 reported at September 30, 2019, is based on the requirements of
generally accepted governmental accounting standards, which require that a liability for claims be
reported if information prior to the issuance of the financial statements indicates that it is probable that
a liability has been incurred at the date of the financial statements, and the amount of the loss can be
reasonably estimated. Estimates for claims incurred but not reported are actuarially determined and
recorded. Based on the actuary’s report, $2,600,000 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
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
2018-2019 8,439,000 25,995,950 (26,180,950) 8,254,000
Included in the charges to other funds is an amount to fund future catastrophic losses not actuarially
determined and at September 30, 2019, unrestricted net position of $19,927,761 has been designated for
this purpose. The County has elected to accrue the larger of the discounted liability or undiscounted
liability. At September 30, 2019, the undiscounted liability was the greater of the two amounts. The
discount rate used in the calculation was 2%.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2019
107
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 $3,783,727. 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, 2019. 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 49th
Street milling and resurfacing, CR512 resurfacing and shoulder widening from Myrtle Street to 125th
Avenue, Courthouse renovations, 45th Street beautification - Phase II, Sector 5 beach restoration, beach
profile surveys and monitoring, serveral conservation area improvements as well as a variety of other
road paving and drainage projects. In the Capital Projects Fund, contracts are for the north county
offices at Sebastian Corners renovation, 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,
Countywide meter replacement program, landfill closure, expansion & gas system, and various other
water and sewer projects. In the Internal Service Funds, contracts are for benefit administration
services.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2019
108
NOTE 19 - COMMITMENTS AND CONTINGENCIES - Continued
B. Contracts and Other Commitments - Continued
A summary of these projects at September 30, 2019, is as follows:
Remaining
Total Total Paid as of Balance at
Contract Price September 30, 2019 September 30, 2019
General $ 1,283,598 $ (618,728) $ 664,870
Special Revenue 18,870,598 (7,937,558) 10,933,040
Capital Projects 21,839,878 (14,693,242) 7,146,636
Enterprise 42,427,275 (18,220,564) 24,206,711
Internal Service 209,636 (84,640) 124,996
Total $ 84,630,985 $ (41,554,732) $ 43,076,253
C. Grants
Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor
agencies. If any expenditures are disallowed as a result of these audits, the claims for reimbursement to
the grantor agency would become a liability of the County. In the opinion of management, any such
adjustments would not be significant.
NOTE 20 - SUBSEQUENT EVENTS
On March 3, 2020, the Board of County Commissioners approved a Federally-Funded Subaward and
Grant Agreement with the Florida Division of Emergency Management for reimbursement of
expenditures related to Hurricane Dorian. This agreement will allow the County to receive
reimbursements from the Federal Emergency Management Agency. Hurricane Dorian impacted Indian
River County on September 3, 2019 causing approximately $8.9 million in expenditures.
109
Indian River County, Florida
Required Supplementary Information
For the Year Ended September 30, 2019
Schedule of the County's Proportionate Share of the Net Pension Liability
Florida Retirement System (FRS) Defined Benefit Pension Plan
County's
Proportionate FRS Plan
County's County's Share of the Fiduciary Net
Plan Sponsor Proportion Proportionate FRS Net Pension Position as a
Fiscal Year Measurement of the FRS Share of the County's Liability as a Percentage of
Ending Date Net Pension FRS Net Pension Covered Percentage of Total Pension
September 30, June 30, Liability Liability Payroll Covered Payroll Liability
2019 2019 0.3499% $ 120,518,805 $ 68,038,591 177.13% 82.61%
2018 2018 0.3461% $ 104,240,729 $ 65,771,799 158.49% 84.26%
2017 2017 0.3484% $ 103,046,280 $ 64,801,659 159.02% 83.89%
2016 2016 0.3356% $ 84,737,012 $ 60,358,527 140.39% 84.88%
2015 2015 0.3067% $ 39,616,455 $ 57,879,163 68.45% 92.00%
2014 2014 0.3018% $ 18,416,343 $ 55,095,601 33.43% 96.09%
Schedule of the County's Proportionate Share of the Net Pension Liability
Retiree Health Insurance Subsidy (HIS) Program Defined Benefit Pension Plan
County's
Proportionate HIS Plan
County's County's Share of the Fiduciary Net
Plan Sponsor Proportion Proportionate HIS Net Pension Position as a
Fiscal Year Measurement of the HIS Share of the County's Liability as a Percentage of
Ending Date Net Pension HIS Net Pension Covered Percentage of Total Pension
September 30, June 30, Liability Liability Payroll Covered Payroll Liability
2019 2019 0.2428% $ 27,171,124 $ 81,262,395 33.44% 2.63%
2018 2018 0.2397% $ 25,374,133 $ 78,355,087 32.39% 2.15%
2017 2017 0.2374% $ 25,383,666 $ 75,720,001 33.52% 1.64%
2016 2016 0.2281% $ 26,578,559 $ 70,444,190 37.73% 0.97%
2015 2015 0.2232% $ 22,760,252 $ 67,812,302 33.56% 0.50%
2014 2014 0.2186% $ 20,441,863 $ 64,984,255 31.46% 0.99%
The County implemented 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 the Florida Department of
Management Services at (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, 2019
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 FRS Contributions
Ending Required Contractually Deficiency Covered as a Percentage of
September 30, Contribution Required Contribution (Excess) Payroll Covered Payroll
2019 $ 11,186,468 $ 11,186,468 $ - $ 69,181,344 16.17%
2018 $ 10,011,292 $ 10,011,292 $ - $ 65,642,971 15.26%
2017 $ 9,099,495 $ 9,099,495 $ - $ 64,835,532 14.03%
2016 $ 8,660,907 $ 8,660,907 $ - $ 61,851,481 14.01%
2015 $ 7,503,166 $ 7,503,166 $ - $ 57,717,461 13.00%
2014 $ 6,760,058 $ 6,760,058 $ - $ 56,156,975 11.94%
Schedule of the County's Contributions
Retiree Health Insurance Subsidy (HIS) Program Defined Benefit Pension Plan
HIS HIS Contributions HIS
Fiscal Year Contractually in Relation to the Contribution County's HIS Contributions
Ending Required Contractually Deficiency Covered as a Percentage of
September 30, Contribution Required Contribution (Excess) Payroll Covered Payroll
2019 $ 1,373,064 $ 1,373,064 $ - $ 82,736,898 1.66%
2018 $ 1,299,514 $ 1,299,514 $ - $ 78,304,866 1.66%
2017 $ 1,262,482 $ 1,262,482 $ - $ 76,071,289 1.66%
2016 $ 1,198,477 $ 1,198,477 $ - $ 72,247,706 1.66%
2015 $ 918,200 $ 918,200 $ - $ 67,455,498 1.36%
2014 $ 782,940 $ 782,940 $ - $ 66,229,010 1.18%
The County implemented GASB Statement No. 68 for the fiscal year ended September 30, 2015, including a restatement as
of September 30, 2014. Information for prior years is not available. This schedule is being built prospectively. Ultimately,
10 years of data will be presented.
111
Indian River County, Florida
Required Supplementary Information
Fiscal Year Ended September 30, 2019
Schedules of Changes in Net OPEB Liability and Related Ratios
Fiscal year ending September 30, 2019 2018 2017
Total OPEB liability
Service cost $ 528,585 $ 498,665 $ 673,067
Interest on the total OPEB liability 1,943,022 2,443,943 2,405,638
Difference between expected and
actual experience - 2,762,722 -
Changes of assumptions and other inputs - (11,946,117) -
Benefit payments (2,238,521) (2,037,101) (2,494,672)
Net change in total OPEB liability 233,086 (8,277,888) 584,033
Total OPEB liability - beginning 32,974,379 41,252,267 40,668,234
Total OPEB liability - ending (a) $ 33,207,465 $ 32,974,379 $ 41,252,267
Plan fiduciary net position
Employer contributions $ 2,178,500 $ 2,461,947 $ 2,274,341
OPEB plan net investment income 1,047,018 1,425,540 2,387,483
Benefit payments (2,238,521) (2,037,101) (2,494,672)
Net change in plan fiduciary net position 986,997 1,850,386 2,167,152
Plan fiduciary net position - beginning 29,520,848 27,670,462 25,503,310
Plan fiduciary net position - ending (b) $ 30,507,845 $ 29,520,848 $ 27,670,462
Net OPEB liability - ending (a) - (b) $ 2,699,620 $ 3,453,531 $ 13,581,805
Plan fiduciary net position as a percentage
of total OPEB liability 91.87% 89.53% 67.08%
Covered payroll* $ 82,697,197 $ 80,387,008 $ 77,080,800
Net OPEB liability as a percentage
of covered payroll 3.26% 4.30% 17.62%
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, 2019).
GASB 74 was implemented in fiscal year 2017. This schedule is being built prospectively.
Ultimately, 10 years of data will be presented.
* Estimate
112
Indian River County, Florida
Required Supplementary Information
For the Year Ended September 30, 2019
Schedule of OPEB Contributions
FY Ending
September 30,
Actuarially
Determined
Contribution
Actual
Contribution
Contribution
Deficiency
(Excess)
Covered
Payroll
Actual Contribution
as a % of
Covered Payroll
2019 $ 1,107,134 $ 2,178,500 $ (1,071,366) $ 82,697,197 2.63%
2018 $ 1,061,118 $ 2,461,947 $ (1,400,829) $ 80,387,008 3.06%
2017 $ 2,583,447 $ 2,274,341 $ 309,106 $ 77,080,800 2.95%
Note: GASB 74 was implemented in fiscal year 2017. This schedule is being built prospectively. Ultimately, 10 years of data
will be presented.
113
Indian River County, Florida
Required Supplementary Information
For the Year Ended September 30, 2019
Notes to Schedule of OPEB Contributions
Valuation Date: October 1, 2017
Notes
Actuarially determined contribution rates are calculated as of October 1, the
beginning of the fiscal year preceding the year in which contributions are
reported.
Methods and Assumptions Used to Determine Contribution Rates:
Actuarial Cost Method Entry Age Normal
Amortization Method Level Percentage of Payroll, Closed
Remaining Amortization Period 10 years
Asset Valuation Method Market Value
Inflation 2.50%
Salary Increases 3.7% to 7.8%, including inflation; varies by plan type and years of service.
Investment Rate of Return 6.00%
Retirement Age
Experience-based table of rates that are specific to the plan and type of
eligibility condition.
Mortality
Mortality tables used in July 1, 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.
Health Care Trend Rates
Based on the Getzen Model, with trend starting at 7.0% and gradually decreasing
to an ultimate trend rate of 4.39% (including the impact of the excise tax).
Aging factors
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.
Expenses
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, 2019
Schedule of OPEB Investment Returns Multiyear
FY Ending
September 30,
Annual
Return*
2019 3.45%
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
COMBINING AND INDIVIDUAL
FUND STATEMENTS
AND
SCHEDULES
116
NONMAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
Court Facilities- To account for the court facility surcharge, additional court costs,
the additional recording fee for court technology, and
improvements made to court facilities.
Section 8 Rental Assistance- To account for the provision of rental assistance for low income
housing. Financing is provided by grants from the U.S. Department
of Housing and Urban Development.
Special Law Enforcement- To account for the expenditures of providing law enforcement
equipment. Financing is provided by confiscation of monies and
property in accordance with Section 932.704 of the Florida
Statutes.
Tree Ordinance Fines- To account for fines assessed against individuals for illegal
removal of protected trees. Funds are used for park improvements.
Tourist Development- To account for the proceeds from the levy of a local option Tourist
Development tax. Funds are used to attract tourism trade and for
the benefit of County residents.
911 Surcharge- To account for the receipt of the 911 surcharge on all telephone
bills of the County. Monies are used to pay the operating costs of
the 911 Emergency Center.
Drug Abuse- To account for the collection of fines on criminal drug cases.
Monies are used for drug prevention and education programs.
State Housing Initiatives
Partnership- To account for State funds distributed under the State Housing
Initiatives Partnership Act. The purpose of this program is to
provide for the creation and preservation of affordable housing.
Funds are provided by the documentary stamp taxes.
117
Metropolitan Planning Organization- To account for expenditures incurred for planning community
transportation in the County. Financing is provided by grants.
Native Uplands Land Acquisition- To account for expenditures related to the acquisition of native
habitat preserve areas and for the management of such lands.
Funding is provided by developers of property who pay to mitigate
native uplands destruction where native upland plant communities
will be destroyed.
Beach Restoration- To account for the expenditure of funds to preserve and improve
County beaches. Funds are provided by the levy of a local option
tourist development tax.
CDBG Neighborhood Stabilization
Program- To account for the proceeds from the Community Development
Block Grant. The purpose of this grant is to provide neighborhood
stabilization through resale and rental of housing units purchased
by the grant funds.
Florida Boating Improvement Program- To account for boat registration fees which may be used for
providing recreational channel marking, public launching facilities,
and other boating-related activities.
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.
118
Land Acquisition- To account for expenditures incurred in the purchase of
environmentally sensitive land, preservation of water sources,
historic sites and agricultural lands. Financing is provided by bond
proceeds and state grants.
East Gifford Stormwater- To account for expenditures of funds for stormwater improvements
in the East Gifford Watershed. Funds are provided by non-ad
valorem taxes.
Vero Lake Estates- To account for the expenditure of funds to improve roads in the
Vero Lake Estates subdivision. Funds are provided by the levying
of special assessments.
Jackie Robinson Training
Complex Reserve- To provide additional improvements to the Jackie Robinson
Training Complex per a lease agreement. Funds are provided from
tourist tax and one-cent sales tax.
Clerk Special Revenue- To account for the proceeds from a special recording fee to be used
for computer linkage and modernizing the Clerk of the Circuit
Court and Comptroller’s public records system.
Sheriff Special Revenue- To account for the expenditure of grants, fines, and restricted
revenues received by the Sheriff.
Supervisor of Elections
Special Revenue- To account for revenues and expenditures from state grants for
voter education and pollworker activities.
Street Lighting Districts- To account for the costs of providing street lights. Financing is
provided by the levying of special assessments.
CDBG Neighborhood Stabilization
Program 3 Grant- To account for the proceeds from the Community Development
Block Neighborhood Stabilization Program 3 Grant. The purpose
of this grant is to provide neighborhood stabilization through resale
of housing units purchased with the grant funds.
119
DEBT SERVICE FUNDS
Spring Training Facility Bonds- To account for the accumulation of State assistance and tourist tax
monies pledged to pay the principal, interest, and fiscal charges on
the Spring Training Facility Bonds.
Land Acquisition Bonds- To account for the accumulation of ad valorem taxes to pay the
principal, interest, and fiscal charges related to the Land
Acquisition Bonds and Note.
MAJOR CAPITAL PROJECTS FUND
Optional Sales Tax- To account for revenues generated by the local option one cent
sales tax. Monies are used for various capital projects.
120
Indian River County, Florida
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2019
Special Revenue
Court
Facilities
Section 8 Rental
Assistance
Special Law
Enforcement
ASSETS
Cash and investments $ 307,446 $ 356,944 $ 353,400
Accounts receivable - 2,995 -
Due from other funds - - -
Due from other governments - - -
Interest receivable 635 511 732
Inventories - - -
Prepaids and other assets - 5,276 -
Total Assets $ 308,081 $ 365,726 $ 354,132
LIABILITIES
Accounts payable $ 80,213 $ 39,424 $ -
Retainage payable - - -
Due to other funds - - -
Due to other governments - - -
Unearned revenues - - -
Other deposits - - -
Total Liabilities 80,213 39,424 -
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - state and federal grants - - -
Total Deferred Inflows of Resources - - -
FUND BALANCES
Nonspendable:
Inventories - - -
Prepaid items - 5,276 -
Restricted for:
Transportation/road improvements - - -
Court-related costs and improvements 227,868 - -
Housing assistance - 321,026 -
Law enforcement/public safety - - 354,132
Tourism-related activities - - -
Beach renourishment - - -
Boating related projects - - -
Land acquisition - - -
Stormwater, street lighting, and other special assessments - - -
Voting/election activities - - -
Debt service - - -
Committed to:
Environmental conservation/preservation - - -
Law Enforcement/public safety - - -
Assigned to:
Law enforcement/public safety - - -
Unassigned ---
Total Fund Balances 227,868 326,302 354,132
Total Liabilities and Fund Balances $ 308,081 $ 365,726 $ 354,132
121
Special Revenue
Tree Ordinance
Fines
Tourist
Development 911 Surcharge Drug Abuse
State Housing
Initiatives
Partnership
Metropolitan
Planning
Organization
$ 538,515 $ 507,353 $ 1,317,059 $ 273,675 $ 295,000 $ 1,081
- - - - 570 -
- 650,000 - - - -
82,067 - 71,622 - 156 122,096
1,124 1,424 2,793 568 63 -
- - - - - -
- - 14,983 - - -
$ 621,706 $ 1,158,777 $ 1,406,457 $ 274,243 $ 295,789 $ 123,177
$ - $ 99,540 $ 20,402 $ - $ 18,730 $ 18,598
- - - - - -
- - - - - 85,000
- - - - - -
- - - - - -
- - - - - -
- 99,540 20,402 - 18,730 103,598
- - 7,383 - 156 17,144
- - 7,383 - 156 17,144
- - - - - -
- - 14,983 - - -
- - - - - 2,435
- - - - - -
- - - - 276,903 -
- - 1,363,689 274,243 - -
- 1,059,237 - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
621,706 - - - - -
- - - - - -
- - - - - -
- - - - - -
621,706 1,059,237 1,378,672 274,243 276,903 2,435
$ 621,706 $ 1,158,777 $ 1,406,457 $ 274,243 $ 295,789 $ 123,177
Continued
122
Indian River County, Florida
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2019
Special Revenue
Native Uplands
Land Acquisition Beach Restoration
CDBG
Neighborhood
Stabilization
Program
ASSETS
Cash and investments $ 691,759 $ 17,572,931 $ 56,506
Accounts receivable - 4 -
Due from other funds - - -
Due from other governments - 1,073,176 19,853
Interest receivable 1,451 36,785 125
Inventories - - -
Prepaids and other assets - - -
Total Assets $ 693,210 $ 18,682,896 $ 76,484
LIABILITIES
Accounts payable $ - $ 167,006 $ 6,951
Retainage payable - 3,465 -
Due to other funds - - -
Due to other governments - - -
Unearned revenues - - -
Other deposits - - -
Total Liabilities - 170,471 6,951
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - state and federal grants - 1,073,176 19,853
Total Deferred Inflows of Resources - 1,073,176 19,853
FUND BALANCES
Nonspendable:
Inventories - - -
Prepaid items - - -
Restricted for:
Transportation/road improvements - - -
Court-related costs and improvements - - -
Housing assistance - - 49,680
Law enforcement/public safety - - -
Tourism-related activities - - -
Beach renourishment - 17,439,249 -
Boating related projects - - -
Land acquisition - - -
Stormwater, street lighting, and other special assessments - - -
Voting/election activities - - -
Debt service - - -
Committed to:
Environmental conservation/preservation 693,210 - -
Law Enforcement/public safety - - -
Assigned to:
Law enforcement/public safety - - -
Unassigned ---
Total Fund Balances 693,210 17,439,249 49,680
Total Liabilities and Fund Balances $ 693,210 $ 18,682,896 $ 76,484
123
Special Revenue
Florida Boating
Improvement
Program
Disabled Access
Program
Federal/State
Grants
Traffic Education
Program Land Acquisition
East Gifford
Stormwater
$ 2,012,837 $ 70,928 $ 357 $ 105,482 $ 1,218,394 $ 25,095
- - - - - -
- - - - - 10
- - 24,993 - - -
4,274 149 - 205 2,555 53
- - - - - -
- - - - - -
$ 2,017,111 $ 71,077 $ 25,350 $ 105,687 $ 1,220,949 $ 25,158
$ 8,328 $ - $ 20,350 $ - $ 52,579 $ -
- - - - - -
- - 5,000 - - -
2,269 - - - - -
- - - - - -
- - - - - -
10,597 - 25,350 - 52,579 -
- - 3,180 - - -
- - 3,180 - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- 71,077 - 105,687 - -
- - - - - -
- - - - - -
2,006,514 - - - - -
- - - - 1,168,370 -
- - - - - 25,158
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - (3,180) - - -
2,006,514 71,077 (3,180)105,687 1,168,370 25,158
$ 2,017,111 $ 71,077 $ 25,350 $ 105,687 $ 1,220,949 $ 25,158
Continued
124
Indian River County, Florida
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2019
Special Revenue
Vero Lakes Estates
Jackie Robinson
Training Complex
Reserve
Clerk Special
Revenue
ASSETS
Cash and investments $ 1,457,627 $ 1,194,818 $ 1,390,471
Accounts receivable - - -
Due from other funds 2,574 - -
Due from other governments 1 - -
Interest receivable 3,057 2,358 -
Inventories - - -
Prepaids and other assets - - 50,336
Total Assets $ 1,463,259 $ 1,197,176 $ 1,440,807
LIABILITIES
Accounts payable $ 1,183 $ 503,502 $ 13,482
Retainage payable - - -
Due to other funds - 851,024 -
Due to other governments - - 181
Unearned revenues - - -
Other deposits - - 13,381
Total Liabilities 1,183 1,354,526 27,044
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - state and federal grants - - -
Total Deferred Inflows of Resources - - -
FUND BALANCES
Nonspendable:
Inventories - - -
Prepaid items - - 50,336
Restricted for:
Transportation/road improvements - - -
Court-related costs and improvements - - 1,363,427
Housing assistance - - -
Law enforcement/public safety - - -
Tourism-related activities - - -
Beach renourishment - - -
Boating related projects - - -
Land acquisition - - -
Stormwater, street lighting, and other special assessments 1,462,076 - -
Voting/election activities - - -
Debt service - - -
Committed to:
Environmental conservation/preservation - - -
Law Enforcement/public safety - - -
Assigned to:
Law enforcement/public safety - - -
Unassigned - (157,350) -
Total Fund Balances 1,462,076 (157,350) 1,413,763
Total Liabilities and Fund Balances $ 1,463,259 $ 1,197,176 $ 1,440,807
125
Special Revenue
Sheriff Special
Revenue
Supervisor of
Elections Special
Revenue
Street Lighting
Districts
CDBG NSP3
Grant
$ 2,241,482 $ 52,931 $ 657,195 $ 146,156
123,379 - - 3,211
- - 2,930 -
- - 2 -
- - 1,422 306
22,251 - - -
- - - -
$ 2,387,112 $ 52,931 $ 661,549 $ 149,673
$ 148,299 $ - $ 14,076 $ -
- - - -
- - - -
- - - -
- 49,992 - -
- - - -
148,299 49,992 14,076 -
- - - -
- - - -
22,251 - - -
- - - -
- - - -
- - - -
- - - 149,673
1,937,178 - - -
- - - -
- - - -
- - - -
- - - -
- - 647,473 -
- 2,939 - -
- - - -
- - - -
164,077 - - -
115,307 - - -
- - - -
2,238,813 2,939 647,473 149,673
$ 2,387,112 $ 52,931 $ 661,549 $ 149,673
Continued
126
Indian River County, Florida
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2019
Debt Service
Spring Training
Facility Bonds
Land Acquisition
Bonds
Total
Nonmajor
Governmental
Funds
ASSETS
Cash and investments $ 614,812 $ 1,676,719 $ 35,136,973
Accounts receivable - - 130,159
Due from other funds - 54,067 709,581
Due from other governments - - 1,393,966
Interest receivable 1,347 3,489 65,426
Inventories - - 22,251
Prepaids and other assets - - 70,595
Total Assets $ 616,159 $ 1,734,275 $ 37,528,951
LIABILITIES
Accounts payable $ - $ - $ 1,212,663
Retainage payable - - 3,465
Due to other funds - - 941,024
Due to other governments - - 2,450
Unearned revenues - - 49,992
Other deposits - - 13,381
Total Liabilities - - 2,222,975
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - state and federal grants - - 1,120,892
Total Deferred Inflows of Resources - - 1,120,892
FUND BALANCES
Nonspendable:
Inventories - - 22,251
Prepaid items - - 70,595
Restricted for:
Transportation/road improvements - - 2,435
Court-related costs and improvements - - 1,591,295
Housing assistance - - 797,282
Law enforcement/public safety - - 4,106,006
Tourism-related activities - - 1,059,237
Beach renourishment - - 17,439,249
Boating related projects - - 2,006,514
Land acquisition - - 1,168,370
Stormwater, street lighting, and other special assessments - - 2,134,707
Voting/election activities - - 2,939
Debt service 616,159 1,734,275 2,350,434
Committed to:
Environmental conservation/preservation - - 1,314,916
Law Enforcement/public safety - - 164,077
Assigned to:
Law enforcement/public safety - - 115,307
Unassigned - - (160,530)
Total Fund Balances 616,159 1,734,275 34,185,084
Total Liabilities and Fund Balances $ 616,159 $ 1,734,275 $ 37,528,951
127
128
Indian River County, Florida
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended September 30, 2019
Special Revenue
Court
Facilities
Section 8
Rental
Assistance
Special Law
Enforcement
Tree
Ordinance
Fines
REVENUES
Taxes $-$-$- $-
Permits, fees and special assessments - - - -
Intergovernmental - 2,294,097 - 82,067
Charges for services 547,504 10,615 43,324 -
Judgments, fines and forfeits - - 55,237 175,700
Interest 9,204 8,862 9,841 20,019
Miscellaneous - - - -
Total revenues 556,708 2,313,574 108,402 277,786
EXPENDITURES
Current:
General government 67,635 - - -
Public safety - - - -
Physical environment - - - -
Transportation - - - -
Economic environment - - - -
Human services - 2,361,403 - -
Culture/recreation - - - 374,420
Court related 728,279 - - -
Debt service:
Principal - - - -
Interest and other fiscal charges - - - -
Total expenditures 795,914 2,361,403 - 374,420
Excess of revenues over (under) expenditures (239,206) (47,829) 108,402 (96,634)
OTHER FINANCING SOURCES (USES)
Transfers in - - - -
Transfers out - - (72,725) -
Total other financing sources (uses) - - (72,725) -
Net changes in fund balances (239,206) (47,829) 35,677 (96,634)
Fund balances at beginning of year 467,074 374,131 318,455 718,340
Fund balances at end of year $ 227,868 $ 326,302 $ 354,132 $ 621,706
129
Special Revenue
Tourist
Development 911 Surcharge Drug Abuse
State Housing
Initiatives
Partnership
Metropolitan
Planning
Organization
Native
Uplands Land
Acquisition
$ 1,160,228 $ - $ - $ - $ - $ -
- - ----
- 751,870 - 350,000 596,183 -
- - - 287,653 - -
- - 28,291 - - -
18,798 37,214 7,419 8,186 - 19,626
- 142 - 267,008 - -
1,179,026 789,226 35,710 912,847 596,183 19,626
- - - - 597,090 -
- 754,218 ----
- - ----
- - ----
- - ----
- - 12,160 1,020,139 - -
864,307 - ----
- - ----
- - ----
- - ----
864,307 754,218 12,160 1,020,139 597,090 -
314,719 35,008 23,550 (107,292) (907) 19,626
- - ----
(250,000) (272,975) ----
(250,000) (272,975) ----
64,719 (237,967) 23,550 (107,292) (907) 19,626
994,518 1,616,639 250,693 384,195 3,342 673,584
$ 1,059,237 $ 1,378,672 $ 274,243 $ 276,903 $ 2,435 $ 693,210
Continued
130
Indian River County, Florida
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended September 30, 2019
Special Revenue
Beach
Restoration
CDBG
Neighborhood
Stabilization
Program
Florida
Boating
Improvement
Program
Disabled
Access
Program
REVENUES
Taxes $ 1,160,228 $ - $ - $ -
Permits, fees and special assessments - - - -
Intergovernmental 355,275 - 101,449 -
Charges for services - - - -
Judgments, fines and forfeits - - - 218
Interest 495,333 1,746 69,871 2,011
Miscellaneous - 8,773 - -
Total revenues 2,010,836 10,519 171,320 2,229
EXPENDITURES
Current:
General government - - - -
Public safety - - - -
Physical environment - - - -
Transportation - - - -
Economic environment - 19,863 - -
Human services --- -
Culture/recreation 1,402,909 - 1,045,374 -
Court related - - - -
Debt service:
Principal - - - -
Interest and other fiscal charges - - - -
Total expenditures 1,402,909 19,863 1,045,374 -
Excess of revenues over (under) expenditures 607,927 (9,344) (874,054) 2,229
OTHER FINANCING SOURCES (USES)
Transfers in 195,884 - - -
Transfers out - - - -
Total other financing sources (uses) 195,884 - - -
Net changes in fund balances 803,811 (9,344) (874,054) 2,229
Fund balances at beginning of year 16,635,438 59,024 2,880,568 68,848
Fund balances at end of year $ 17,439,249 $ 49,680 $ 2,006,514 $ 71,077
131
Special Revenue
Federal/State
Grants
Traffic
Education
Program
Land
Acquisition
East Gifford
Stormwater
Vero Lakes
Estates
Jackie
Robinson
Training
Complex
Reserve
$ - $ - $ - $ 1 $ 480 $ 469,395
- - - 968 244,005 -
911,740 - - - - 31,250
- - ----
- 59,036 ----
- 2,822 35,372 702 40,462 5,293
- - - - - 1,247
911,740 61,858 35,372 1,671 284,947 507,185
- - ----
- - ----
- - 104,535 - - -
- 41,496 - - 14,021 -
- - ----
912,520 - ----
- - - - - 1,189,165
- - ----
- - ----
- - ----
912,520 41,496 104,535 - 14,021 1,189,165
(780) 20,362 (69,163) 1,671 270,926 (681,980)
- - - - - 316,320
- - - (58) (4,824) -
- - - (58) (4,824) 316,320
(780) 20,362 (69,163) 1,613 266,102 (365,660)
(2,400) 85,325 1,237,533 23,545 1,195,974 208,310
$ (3,180) $ 105,687 $ 1,168,370 $ 25,158 $ 1,462,076 $ (157,350)
Continued
132
Indian River County, Florida
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended September 30, 2019
Special Revenue
Clerk Special
Revenue
Sheriff Special
Revenue
Supervisor of
Elections
Special
Revenue
Street
Lighting
Districts
REVENUES
Taxes $-$-$- $1,488
Permits, fees and special assessments - - - 276,845
Intergovernmental - 123,817 112,412 -
Charges for services 443,722 269,824 - -
Judgments, fines and forfeits - 66,882 - -
Interest 20,980 - 302 20,195
Miscellaneous 9,366 481,509 - 1,267
Total revenues 474,068 942,032 112,714 299,795
EXPENDITURES
Current:
General government 750,449 - 112,751 -
Public safety - 747,483 - -
Physical environment - - - -
Transportation - - - 244,161
Economic environment - - - -
Human services --- -
Culture/recreation - - - -
Court related - - - -
Debt service:
Principal - - - -
Interest and other fiscal charges - - - -
Total expenditures 750,449 747,483 112,751 244,161
Excess of revenues over (under) expenditures (276,381) 194,549 (37) 55,634
OTHER FINANCING SOURCES (USES)
Transfers in - 212,725 2,641 -
Transfers out - - - (8,161)
Total other financing sources (uses) - 212,725 2,641 (8,161)
Net changes in fund balances (276,381) 407,274 2,604 47,473
Fund balances at beginning of year 1,690,144 1,831,539 335 600,000
Fund balances at end of year $ 1,413,763 $ 2,238,813 $ 2,939 $ 647,473
133
Special Revenue Debt Service
CDBG NSP3
Grant
Spring
Training
Facility Bonds
Land
Acquisition
Bonds
Total
Nonmajor
Governmental
Funds
$ - $ 304,090 $ 4,744,345 $ 7,840,255
- - - 521,818
- 500,004 - 6,210,164
- - - 1,602,642
- - - 385,364
3,770 34,273 110,854 983,155
38,528 - - 807,840
42,298 838,367 4,855,199 18,351,238
- - - 1,527,925
- - - 1,501,701
- - - 104,535
- - - 299,678
- - - 19,863
- - - 4,306,222
- - - 4,876,175
- - - 728,279
- 1,510,000 4,227,000 5,737,000
- 252,018 190,817 442,835
- 1,762,018 4,417,817 19,544,213
42,298 (923,651) 437,382 (1,192,975)
- - - 727,570
- (1,475,000) (109,707) (2,193,450)
- (1,475,000) (109,707) (1,465,880)
42,298 (2,398,651) 327,675 (2,658,855)
107,375 3,014,810 1,406,600 36,843,939
$ 149,673 $ 616,159 $ 1,734,275 $ 34,185,084
134
Indian River County, Florida
Budgetary Comparison Schedule
Court Facilities
For the Year Ended September 30, 2019
Final
Budget
Actual
Amounts
Variance
Positive
(Negative)
REVENUES
Charges for services $ 542,500 $ 547,504 $ 5,004
Interest 6,500 9,204 2,704
Total revenues 549,000 556,708 7,708
EXPENDITURES
General government 112,940 67,635 45,305
Court related 801,198 728,279 72,919
Total expenditures 914,138 795,914 118,224
Net change in fund balances (365,138) (239,206) 125,932
Fund balances at beginning of year 365,138 467,074 101,936
Fund balances at end of year $ - $ 227,868 $ 227,868
135
Indian River County, Florida
Budgetary Comparison Schedule
Section 8 Rental Assistance
For the Year Ended September 30, 2019
Final
Budget
Actual
Amounts
Variance
Positive
(Negative)
REVENUES
Intergovernmental $ 2,220,026 $ 2,294,097 $ 74,071
Charges for services 50,000 10,615 (39,385)
Interest - 8,862 8,862
Total revenues 2,270,026 2,313,574 43,548
EXPENDITURES
Human services 2,592,334 2,361,403 230,931
Total expenditures 2,592,334 2,361,403 230,931
Net change in fund balances (322,308) (47,829) 274,479
Fund balances at beginning of year 322,308 374,131 51,823
Fund balances at end of year $ - $ 326,302 $ 326,302
136
Indian River County, Florida
Budgetary Comparison Schedule
Special Law Enforcement
For the Year Ended September 30, 2019
Final
Budget
Actual
Amounts
Variance
Positive
(Negative)
REVENUES
Charges for services $ - $ 43,324 $ 43,324
Judgments, fines and forfeits - 55,237 55,237
Interest - 9,841 9,841
Total revenues - 108,402 108,402
OTHER FINANCING SOURCES (USES)
Transfers out (72,725) (72,725) -
Total other financing sources (uses) (72,725) (72,725) -
Net change in fund balances (72,725) 35,677 108,402
Fund balances at beginning of year 72,725 318,455 245,730
Fund balances at end of year $ - $ 354,132 $ 354,132
137
Indian River County, Florida
Budgetary Comparison Schedule
Tree Ordinance Fines
For the Year Ended September 30, 2019
Final
Budget
Actual
Amounts
Variance
Positive
(Negative)
REVENUES
Intergovernmental $ 82,068 $ 82,067 $ (1)
Judgments, fines and forfeits - 175,700 175,700
Interest - 20,019 20,019
Total revenues 82,068 277,786 195,718
EXPENDITURES
Culture/recreation 423,660 374,420 49,240
Total expenditures 423,660 374,420 49,240
Net change in fund balances (341,592) (96,634) 244,958
Fund balances at beginning of year 341,592 718,340 376,748
Fund balances at end of year $ - $ 621,706 $ 621,706
138
Indian River County, Florida
Budgetary Comparison Schedule
Tourist Development
For the Year Ended September 30, 2019
Final
Budget
Actual
Amounts
Variance
Positive
(Negative)
REVENUES
Taxes $ 997,500 $ 1,160,228 $ 162,728
Interest 950 18,798 17,848
Total revenues 998,450 1,179,026 180,576
EXPENDITURES
Culture/recreation 993,876 864,307 129,569
Total expenditures 993,876 864,307 129,569
Excess of revenues over (under) expenditures 4,574 314,719 310,145
OTHER FINANCING SOURCES (USES)
Transfers out (1,550,000) (250,000) 1,300,000
Total other financing sources (uses) (1,550,000) (250,000) 1,300,000
Net change in fund balances (1,545,426) 64,719 1,610,145
Fund balances at beginning of year 1,545,426 994,518 (550,908)
Fund balances at end of year $ - $ 1,059,237 $ 1,059,237
139
Indian River County, Florida
Budgetary Comparison Schedule
911 Surcharge
For the Year Ended September 30, 2019
Final
Budget
Actual
Amounts
Variance
Positive
(Negative)
REVENUES
Intergovernmental $ 598,500 $ 751,870 $ 153,370
Interest - 37,214 37,214
Miscellaneous - 142 142
Total revenues 598,500 789,226 190,726
EXPENDITURES
Public safety 1,046,125 754,218 291,907
Total expenditures 1,046,125 754,218 291,907
Excess of revenues over (under) expenditures (447,625) 35,008 482,633
OTHER FINANCING SOURCES (USES)
Transfers out (272,975) (272,975) -
Total other financing sources (uses) (272,975) (272,975) -
Net change in fund balances (720,600) (237,967) 482,633
Fund balances at beginning of year 720,600 1,616,639 896,039
Fund balances at end of year $ - $ 1,378,672 $ 1,378,672
140
Indian River County, Florida
Budgetary Comparison Schedule
Drug Abuse
For the Year Ended September 30, 2019
Final
Budget
Actual
Amounts
Variance
Positive
(Negative)
REVENUES
Judgments, fines and forfeits $ - $ 28,291 $ 28,291
Interest - 7,419 7,419
Total revenues - 35,710 35,710
EXPENDITURES
Human services 25,000 12,160 12,840
Total expenditures 25,000 12,160 12,840
Net change in fund balances (25,000) 23,550 48,550
Fund balances at beginning of year 25,000 250,693 225,693
Fund balances at end of year $ - $ 274,243 $ 274,243
141
Indian River County, Florida
Budgetary Comparison Schedule
State Housing Initiatives Partnership
For the Year Ended September 30, 2019
Final
Budget
Actual
Amounts
Variance
Positive
(Negative)
REVENUES
Intergovernmental $ 350,000 $ 350,000 $ -
Charges for services 335,000 287,653 (47,347)
Interest 5,000 8,186 3,186
Miscellaneous - 267,008 267,008
Total revenues 690,000 912,847 222,847
EXPENDITURES
Human services 1,074,332 1,020,139 54,193
Total expenditures 1,074,332 1,020,139 54,193
Net change in fund balances (384,332) (107,292) 277,040
Fund balances at beginning of year 384,332 384,195 (137)
Fund balances at end of year $ - $ 276,903 $ 276,903
142
Indian River County, Florida
Budgetary Comparison Schedule
Metropolitan Planning Organization
For the Year Ended September 30, 2019
Final
Budget
Actual
Amounts
Variance
Positive
(Negative)
REVENUES
Intergovernmental $ 848,142 $ 596,183 $ (251,959)
Total revenues 848,142 596,183 (251,959)
EXPENDITURES
General government 849,971 597,090 252,881
Total expenditures 849,971 597,090 252,881
Net change in fund balances (1,829) (907) 922
Fund balances at beginning of year 1,829 3,342 1,513
Fund balances at end of year $ - $ 2,435 $ 2,435
143
Indian River County, Florida
Budgetary Comparison Schedule
Native Uplands Land Acquisition
For the Year Ended September 30, 2019
Final
Budget
Actual
Amounts
Variance
Positive
(Negative)
REVENUES
Interest $ - $ 19,626 $ 19,626
Total revenues - 19,626 19,626
EXPENDITURES
Physical environment 215,000 - 215,000
Total expenditures 215,000 - 215,000
Net change in fund balances (215,000) 19,626 234,626
Fund balances at beginning of year 215,000 673,584 458,584
Fund balances at end of year $ - $ 693,210 $ 693,210
144
Indian River County, Florida
Budgetary Comparison Schedule
Beach Restoration
For the Year Ended September 30, 2019
Final
Budget
Actual
Amounts
Variance
Positive
(Negative)
REVENUES
Taxes $ 997,500 $ 1,160,228 $ 162,728
Intergovernmental 55,250 355,275 300,025
Interest 9,500 495,333 485,833
Total revenues 1,062,250 2,010,836 948,586
EXPENDITURES
Culture/recreation 6,894,529 1,402,909 5,491,620
Total expenditures 6,894,529 1,402,909 5,491,620
Excess of revenues over (under) expenditures (5,832,279) 607,927 6,440,206
OTHER FINANCING SOURCES (USES)
Transfers in 195,884 195,884 -
Total other financing sources (uses) 195,884 195,884 -
Net change in fund balances (5,636,395) 803,811 6,440,206
Fund balances at beginning of year 5,636,395 16,635,438 10,999,043
Fund balances at end of year $ - $ 17,439,249 $ 17,439,249
145
Indian River County, Florida
Budgetary Comparison Schedule
CDBG Neighborhood Stabilization Program
For the Year Ended September 30, 2019
Final
Budget
Actual
Amounts
Variance
Positive
(Negative)
REVENUES
Intergovernmental $ 750,000 $ - $ (750,000)
Interest - 1,746 1,746
Miscellaneous 100 8,773 8,673
Total revenues 750,100 10,519 (739,581)
EXPENDITURES
Economic environment 750,100 19,863 730,237
Total expenditures 750,100 19,863 730,237
Net change in fund balances - (9,344) (9,344)
Fund balances at beginning of year - 59,024 59,024
Fund balances at end of year $ - $ 49,680 $ 49,680
146
Indian River County, Florida
Budgetary Comparison Schedule
Florida Boating Improvement Program
For the Year Ended September 30, 2019
Final
Budget
Actual
Amounts
Variance
Positive
(Negative)
REVENUES
Intergovernmental $ 70,000 $ 101,449 $ 31,449
Interest - 69,871 69,871
Total revenues 70,000 171,320 101,320
EXPENDITURES
Culture/recreation 1,431,018 1,045,374 385,644
Total expenditures 1,431,018 1,045,374 385,644
Net change in fund balances (1,361,018) (874,054) 486,964
Fund balances at beginning of year 1,361,018 2,880,568 1,519,550
Fund balances at end of year $ - $ 2,006,514 $ 2,006,514
147
Indian River County, Florida
Budgetary Comparison Schedule
Disabled Access Program
For the Year Ended September 30, 2019
Final
Budget
Actual
Amounts
Variance
Positive
(Negative)
REVENUES
Judgments, fines and forfeits $ - $ 218 $ 218
Interest - 2,011 2,011
Total revenues - 2,229 2,229
EXPENDITURES
Human services 20,000 - 20,000
Total expenditures 20,000 - 20,000
Net change in fund balances (20,000) 2,229 22,229
Fund balances at beginning of year 20,000 68,848 48,848
Fund balances at end of year $ - $ 71,077 $ 71,077
148
Indian River County, Florida
Budgetary Comparison Schedule
Federal/State Grants
For the Year Ended September 30, 2019
Final
Budget
Actual
Amounts
Variance
Positive
(Negative)
REVENUES
Intergovernmental $ 1,055,043 $ 911,740 $ (143,303)
Total revenues 1,055,043 911,740 (143,303)
EXPENDITURES
Human services 1,055,043 912,520 142,523
Total expenditures 1,055,043 912,520 142,523
Net change in fund balances - (780) (780)
Fund balances at beginning of year - (2,400) (2,400)
Fund balances at end of year $ - $ (3,180) $ (3,180)
149
Indian River County, Florida
Budgetary Comparison Schedule
Traffic Education Program
For the Year Ended September 30, 2019
Final
Budget
Actual
Amounts
Variance
Positive
(Negative)
REVENUES
Judgments, fines and forfeits $ 57,000 $ 59,036 $ 2,036
Interest - 2,822 2,822
Total revenues 57,000 61,858 4,858
EXPENDITURES
Transportation 48,000 41,496 6,504
Total expenditures 48,000 41,496 6,504
Net change in fund balances 9,000 20,362 11,362
Fund balances at beginning of year (9,000) 85,325 94,325
Fund balances at end of year $ - $ 105,687 $ 105,687
150
Indian River County, Florida
Budgetary Comparison Schedule
Land Acquisition
For the Year Ended September 30, 2019
Final
Budget
Actual
Amounts
Variance
Positive
(Negative)
REVENUES
Interest $ - $ 35,372 $ 35,372
Total revenues - 35,372 35,372
EXPENDITURES
Physical environment 302,645 104,535 198,110
Total expenditures 302,645 104,535 198,110
Net change in fund balances (302,645) (69,163) 233,482
Fund balances at beginning of year 302,645 1,237,533 934,888
Fund balances at end of year $ - $ 1,168,370 $ 1,168,370
151
Indian River County, Florida
Budgetary Comparison Schedule
East Gifford Stormwater
For the Year Ended September 30, 2019
Final
Budget
Actual
Amounts
Variance
Positive
(Negative)
REVENUES
Taxes $ - $ 1 $ 1
Permits, fees and special assessments 940 968 28
Interest - 702 702
Total revenues 940 1,671 731
EXPENDITURES
Transportation 876 - 876
Total expenditures 876 - 876
Excess of revenues over (under) expenditures 64 1,671 1,607
OTHER FINANCING SOURCES (USES)
Transfers out (64) (58) 6
Total other financing sources (uses) (64) (58) 6
Net change in fund balances - 1,613 1,613
Fund balances at beginning of year - 23,545 23,545
Fund balances at end of year $ - $ 25,158 $ 25,158
152
Indian River County, Florida
Budgetary Comparison Schedule
Vero Lakes Estates
For the Year Ended September 30, 2019
Final
Budget
Actual
Amounts
Variance
Positive
(Negative)
REVENUES
Taxes $ - $ 480 $ 480
Permits, fees and special assessments 238,450 244,005 5,555
Interest 2,850 40,462 37,612
Total revenues 241,300 284,947 43,647
EXPENDITURES
Transportation 926,855 14,021 912,834
Total expenditures 926,855 14,021 912,834
Excess of revenues over (under) expenditures (685,555) 270,926 956,481
OTHER FINANCING SOURCES (USES)
Transfers out (5,011) (4,824) 187
Total other financing sources (uses) (5,011) (4,824) 187
Net change in fund balances (690,566) 266,102 956,668
Fund balances at beginning of year 690,566 1,195,974 505,408
Fund balances at end of year $ - $ 1,462,076 $ 1,462,076
153
Indian River County, Florida
Budgetary Comparison Schedule
Jackie Robinson Training Complex Reserve
For the Year Ended September 30, 2019
Final
Budget
Actual
Amounts
Variance
Positive
(Negative)
REVENUES
Taxes $ - $ 469,395 $ 469,395
Intergovernmental 125,000 31,250 (93,750)
Interest - 5,293 5,293
Miscellaneous - 1,247 1,247
Total revenues 125,000 507,185 382,185
EXPENDITURES
Culture/recreation 1,850,000 1,189,165 660,835
Total expenditures 1,850,000 1,189,165 660,835
Excess of revenues over (under) expenditures (1,725,000) (681,980) 1,043,020
OTHER FINANCING SOURCES (USES)
Transfers in 1,725,000 316,320 (1,408,680)
Total other financing sources (uses) 1,725,000 316,320 (1,408,680)
Net change in fund balances - (365,660) (365,660)
Fund balances at beginning of year - 208,310 208,310
Fund balances at end of year $ - $ (157,350) $ (157,350)
154
Indian River County, Florida
Budgetary Comparison Schedule
Clerk Special Revenue
For the Year Ended September 30, 2019
Final
Budget
Actual
Amounts
Variance
Positive
(Negative)
REVENUES
Charges for services $ 400,000 $ 443,722 $ 43,722
Interest 7,500 20,980 13,480
Miscellaneous - 9,366 9,366
Total revenues 407,500 474,068 66,568
EXPENDITURES
General government 847,342 750,449 96,893
Total expenditures 847,342 750,449 96,893
Net change in fund balances (439,842) (276,381) 163,461
Fund balances at beginning of year 439,842 1,690,144 1,250,302
Fund balances at end of year $ - $ 1,413,763 $ 1,413,763
155
Indian River County, Florida
Budgetary Comparison Schedule
Sheriff Special Revenue
For the Year Ended September 30, 2019
Final
Budget
Actual
Amounts
Variance
Positive
(Negative)
REVENUES
Intergovernmental $ 123,817 $ 123,817 $ -
Charges for services 250,000 269,824 19,824
Judgments, fines and forfeits 70,000 66,882 (3,118)
Miscellaneous 543,458 481,509 (61,949)
Total revenues 987,275 942,032 (45,243)
EXPENDITURES
Public safety 1,200,000 747,483 452,517
Total expenditures 1,200,000 747,483 452,517
Excess of revenues over (under) expenditures (212,725) 194,549 407,274
OTHER FINANCING SOURCES (USES)
Transfers in 212,725 212,725 -
Total other financing sources (uses) 212,725 212,725 -
Net change in fund balances - 407,274 407,274
Fund balances at beginning of year - 1,831,539 1,831,539
Fund balances at end of year $ - $ 2,238,813 $ 2,238,813
156
Indian River County, Florida
Budgetary Comparison Schedule
Supervisor of Elections Special Revenue
For the Year Ended September 30, 2019
Final
Budget
Actual
Amounts
Variance
Positive
(Negative)
REVENUES
Intergovernmental $ 112,412 $ 112,412 $ -
Interest - 302 302
Total revenues 112,412 112,714 302
EXPENDITURES
General government 115,053 112,751 2,302
Total expenditures 115,053 112,751 2,302
Excess of revenues over (under) expenditures (2,641) (37) 2,604
OTHER FINANCING SOURCES (USES)
Transfers in 2,641 2,641 -
Total other financing sources (uses) 2,641 2,641 -
Net change in fund balances - 2,604 2,604
Fund balances at beginning of year - 335 335
Fund balances at end of year $ - $ 2,939 $ 2,939
157
Indian River County, Florida
Budgetary Comparison Schedule
Street Lighting Districts
For the Year Ended September 30, 2019
Final
Budget
Actual
Amounts
Variance
Positive
(Negative)
REVENUES
Taxes $ - $ 1,488 $ 1,488
Permits, fees and special assessments 271,632 276,845 5,213
Interest 2,706 20,195 17,489
Miscellaneous 2,144 1,267 (877)
Total revenues 276,482 299,795 23,313
EXPENDITURES
Transportation 356,988 244,161 112,827
Total expenditures 356,988 244,161 112,827
Excess of revenues over (under) expenditures (80,506) 55,634 136,140
OTHER FINANCING SOURCES (USES)
Transfers out (8,673) (8,161) 512
Total other financing sources (uses) (8,673) (8,161) 512
Net change in fund balances (89,179) 47,473 136,652
Fund balances at beginning of year 89,179 600,000 510,821
Fund balances at end of year $ - $ 647,473 $ 647,473
158
Indian River County, Florida
Budgetary Comparison Schedule
CDBG NSP3 Grant
For the Year Ended September 30, 2019
Final
Budget
Actual
Amounts
Variance
Positive
(Negative)
REVENUES
Interest $ - $ 3,770 $ 3,770
Miscellaneous - 38,528 38,528
Total revenues - 42,298 42,298
Net change in fund balances - 42,298 42,298
Fund balances at beginning of year - 107,375 107,375
Fund balances at end of year $ - $ 149,673 $ 149,673
159
Indian River County, Florida
Budgetary Comparison Schedule
Spring Training Facility Bonds
For the Year Ended September 30, 2019
Final
Budget
Actual
Amounts
Variance
Positive
(Negative)
REVENUES
Taxes $ 665,000 $ 304,090 $ (360,910)
Intergovernmental 475,000 500,004 25,004
Interest - 34,273 34,273
Total revenues 1,140,000 838,367 (301,633)
EXPENDITURES
Debt service:
Principal 1,710,000 1,510,000 200,000
Interest and other fiscal charges 444,358 252,018 192,340
Total expenditures 2,154,358 1,762,018 392,340
Excess of revenues over (under) expenditures (1,014,358) (923,651) 90,707
OTHER FINANCING SOURCES (USES)
Transfers out (1,475,000) (1,475,000) -
Total other financing sources (uses) (1,475,000) (1,475,000) -
Net change in fund balances (2,489,358) (2,398,651) 90,707
Fund balances at beginning of year 2,489,358 3,014,810 525,452
Fund balances at end of year $ - $ 616,159 $ 616,159
160
Indian River County, Florida
Budgetary Comparison Schedule
Land Acquisition Bonds
For the Year Ended September 30, 2019
Final
Budget
Actual
Amounts
Variance
Positive
(Negative)
REVENUES
Taxes $ 4,664,801 $ 4,744,345 $ 79,544
Interest 11,514 110,854 99,340
Total revenues 4,676,315 4,855,199 178,884
EXPENDITURES
Debt service:
Principal 4,227,000 4,227,000 -
Interest and other fiscal charges 200,817 190,817 10,000
Total expenditures 4,427,817 4,417,817 10,000
Excess of revenues over (under) expenditures 248,498 437,382 188,884
OTHER FINANCING SOURCES (USES)
Transfers out (120,863) (109,707) 11,156
Total other financing sources (uses) (120,863) (109,707) 11,156
Net change in fund balances 127,635 327,675 200,040
Fund balances at beginning of year (127,635) 1,406,600 1,534,235
Fund balances at end of year $ - $ 1,734,275 $ 1,734,275
161
Indian River County, Florida
Budgetary Comparison Schedule
Optional Sales Tax Capital Projects Fund
For the Year Ended September 30, 2019
Final
Budget
Actual
Amounts
Variance
Positive
(Negative)
REVENUES
Taxes $ 17,337,500 $ 19,263,128 $ 1,925,628
Intergovernmental 181,000 1,643,971 1,462,971
Interest 237,500 2,360,213 2,122,713
Miscellaneous 1,869,852 - (1,869,852)
Total revenues 19,625,852 23,267,312 3,641,460
EXPENDITURES
Capital projects 44,868,712 13,393,105 31,475,607
Total expenditures 44,868,712 13,393,105 31,475,607
Excess of revenues over (under) expenditures (25,242,860) 9,874,207 35,117,067
OTHER FINANCING USES
Insurance recoveries - 60,801 60,801
Transfers in 1,725,000 1,725,000 -
Transfers out (2,295,290) (2,046,810) 248,480
Total other financing uses (570,290) (261,009) 309,281
Net change in fund balances (25,813,150) 9,613,198 35,426,348
Fund balances at beginning of year 25,813,150 77,927,237 52,114,087
Fund balances at end of year $ - $ 87,540,435 $ 87,540,435
162
163
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.
164
Indian River County, Florida
Combining Statement of Net Position
Internal Service Funds
September 30, 2019
Fleet
Management
Self
Insurance
Information
Technology Totals
ASSETS
Current assets:
Cash and investments $ 516,832 $ 30,674,602 $ 629,923 $ 31,821,357
Accounts receivable - net 90,797 1,413,465 457 1,504,719
Due from other funds - 411,847 - 411,847
Due from other governments 62,509 129 11,787 74,425
Interest receivable 1,755 101,767 2,055 105,577
Inventories 267,146 - - 267,146
Prepaids and other assets - 1,171,421 48,101 1,219,522
Total current assets 939,039 33,773,231 692,323 35,404,593
Non-current assets:
Capital assets - depreciable 315,095 4,405 3,634,809 3,954,309
Capital assets - accumulated depreciation (274,982) (3,639) (2,257,182) (2,535,803)
Total non-current assets 40,113 766 1,377,627 1,418,506
Total assets 979,152 33,773,997 2,069,950 36,823,099
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions 134,243 61,444 238,813 434,500
Deferred outflows related to other postemployment benefits 9,974 4,290 18,180 32,444
Total deferred outflows of resources 144,217 65,734 256,993 466,944
LIABILITIES
Current liabilities (payable from current assets):
Accounts payable 302,931 5,412,898 45,018 5,760,847
Claims payable - 2,600,000 - 2,600,000
Accrued compensated absences 24,754 12,189 82,558 119,501
Total current liabilities (payable from current assets) 327,685 8,025,087 127,576 8,480,348
Non-current liabilities:
Accrued compensated absences - 9,991 40,827 50,818
Claims payable - 5,654,000 - 5,654,000
Net pension liability 362,868 188,687 711,675 1,263,230
Net other postemployment benefits liability 9,750 4,125 16,781 30,656
Total non-current liabilities 372,618 5,856,803 769,283 6,998,704
Total liabilities 700,303 13,881,890 896,859 15,479,052
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions 26,536 15,245 52,015 93,796
Deferred inflows related to other postemployment benefits 33,051 14,069 58,138 105,258
Total deferred inflows of resources 59,587 29,314 110,153 199,054
NET POSITION
Net investment in capital assets 40,113 766 1,377,627 1,418,506
Unrestricted (deficit) 323,366 19,927,761 (57,696) 20,193,431
Total net position $ 363,479 $ 19,928,527 $ 1,319,931 $ 21,611,937
165
Indian River County, Florida
Combining Statement of Revenues, Expenses,
and Changes in Fund Net Position
Internal Service Funds
For the Year Ended September 30, 2019
Fleet
Management
Self
Insurance
Information
Technology
Totals
OPERATING REVENUES
Charges for services $ 3,160,438 $ 25,205,467 $ 2,859,564 $ 31,225,469
Total revenues 3,160,438 25,205,467 2,859,564 31,225,469
OPERATING EXPENSES
Personal services 442,001 1,392,806 1,210,405 3,045,212
Material, supplies, services and other operating 2,695,622 28,379,643 547,753 31,623,018
Depreciation 7,060 236 188,260 195,556
Total operating expenses 3,144,683 29,772,685 1,946,418 34,863,786
Operating income (loss) 15,755 (4,567,218) 913,146 (3,638,317)
NONOPERATING REVENUES (EXPENSES)
Interest income 13,892 869,065 18,490 901,447
Insurance recoveries - 735,121 - 735,121
Gain on disposal of assets - 3,158 5,005 8,163
Loss on disposal of assets - - (569) (569)
Total nonoperating revenues (expenses) 13,892 1,607,344 22,926 1,644,162
Income (loss) before transfers 29,647 (2,959,874) 936,072 (1,994,155)
Capital grants and contributions 1,115 - - 1,115
Transfers in (out) - 43,332 - 43,332
Change in net position 30,762 (2,916,542) 936,072 (1,949,708)
Total net position - beginning 332,717 22,845,069 383,859 23,561,645
Total net position - ending $ 363,479 $ 19,928,527 $ 1,319,931 $ 21,611,937
166
Indian River County, Florida
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended September 30, 2019
Fleet Self Information
Management Insurance Technology Totals
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $ 3,172,922 $ 25,895,030 $ 2,859,108 $ 31,927,060
Cash paid to suppliers for goods and services (2,692,163) (23,720,063) (564,734) (26,976,960)
Cash paid to employees for services (417,690) (1,366,831) (1,109,788) (2,894,309)
Net cash provided by (used in) operating activities 63,069 808,136 1,184,586 2,055,791
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers - 43,332 - 43,332
Net cash provided by noncapital financing activities - 43,332 - 43,332
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Proceeds from sales of capital assets - 3,158 5,005 8,163
Purchase of capital assets (10,549) - (990,251) (1,000,800)
Net cash provided by (used in) capital and
related financing activities (10,549) 3,158 (985,246) (992,637)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest and dividends on investments 13,551 870,179 17,700 901,430
Net cash provided by investing activities 13,551 870,179 17,700 901,430
Net increase (decrease) in cash and investments 66,071 1,724,805 217,040 2,007,916
Cash and investments at beginning of year 450,761 28,949,797 412,883 29,813,441
Cash and investments at end of year $ 516,832 $ 30,674,602 $ 629,923 $ 31,821,357
Classified as:
Current assets $ 516,832 $ 30,674,602 $ 629,923 $ 31,821,357
167
Indian River County, Florida
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended September 30, 2019
Fleet Self Information
Management Insurance Technology Totals
RECONCILIATION OF OPERATING
INCOME (LOSS) TO NET CASH
PROVIDED BY OPERATING ACTIVITIES
Operating income (loss) $ 15,755 $ (4,567,218) $ 913,146 $ (3,638,317)
Adjustments to reconcile operating income (loss) to
net cash provided by operating activities:
Depreciation 7,060 236 188,260 195,556
(Increase) decrease in assets:
Accounts receivable 11,602 696,766 (457) 707,911
Due from other governments 882 (7,203) 1 (6,320)
Inventories (11,562) - - (11,562)
Deposits 825 (60,807) (526) (60,508)
Increase (decrease) in liabilities:
Accounts payable 14,196 4,905,387 (16,455) 4,903,128
Claims payable - (185,000) - (185,000)
Net pension liability 35,398 26,817 101,903 164,118
Net OPEB liability (7,138) (3,224) (15,198) (25,560)
Accrued compensated absences (3,949) 2,382 13,912 12,345
Total adjustments 47,314 5,375,354 271,440 5,694,108
Net cash provided by (used in) operating activities $ 63,069 $ 808,136 $ 1,184,586 $ 2,055,791
NONCASH CAPITAL AND RELATED
FINANCING ACTIVITIES
Change in fair value of investments $ 5,870 $ 357,399 $ 7,693 $ 370,962
Capital grants and contributions $ 1,115 $ - $ - $ 1,115
168
169
FIDUCIARY FUND
Agency Fund- To account for the assets held solely in a custodial
capacity by the County.
170
Indian River County, Florida
Combining Statement of Changes in Assets and Liabilities
Agency Fund
For the Fiscal Year Ended September 30, 2019
Balance Balance
October 1, September 30,
2018 Additions Deductions 2019
ASSETS
Cash and investments $ 10,439,782 $ 443,768,965 $ 442,563,579 $ 11,645,168
Total assets $ 10,439,782 $ 443,768,965 $ 442,563,579 $ 11,645,168
LIABILITIES
Due to other governments $ 5,809,711 $ 454,356,718 $ 454,263,815 $ 5,902,614
Other deposits held in escrow 4,630,071 24,056,160 22,943,677 5,742,554
Total liabilities $ 10,439,782 $ 478,412,878 $ 477,207,492 $ 11,645,168
171
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) 172-182
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) 183-187
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) 188-195
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) 196-197
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) 198-209
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) 210-215
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.
172
Indian River County, Florida
Net Position by Component (Unaudited)
Last Ten Fiscal Years
(accrual basis of accounting)
2010 2011 2012 2013
Governmental activities
Net investment in capital assets $ 480,243,738 $ 492,300,301 $ 509,076,923 $ 518,255,719
Restricted 132,928,838 125,452,516 121,189,228 117,321,755
Unrestricted (Deficit) 85,810,359 84,860,897 76,523,757 71,830,421
Total governmental activities net position $ 698,982,935 $ 702,613,714 $ 706,789,908 $ 707,407,895
Business-type activities
Net investment in capital assets $ 223,375,337 $ 217,876,742 $ 211,631,529 $ 210,772,860
Restricted 27,898,292 24,230,101 17,941,773 20,871,037
Unrestricted 54,592,201 61,041,483 70,286,599 68,686,611
Total business-type activities net position $ 305,865,830 $ 303,148,326 $ 299,859,901 $ 300,330,508
Primary government
Net investment in capital assets $ 703,619,075 $ 710,177,043 $ 720,708,452 $ 729,028,579
Restricted 160,827,130 149,682,617 139,131,001 138,192,792
Unrestricted 140,402,560 145,902,380 146,810,356 140,517,032
Total primary government net position $ 1,004,848,765 $ 1,005,762,040 $ 1,006,649,809 $ 1,007,738,403
(A) The County reclassified water and sewer funds from restricted to
unrestricted net position.
173
Schedule 1
2014 2015 2016 2017 2018 2019
$ 514,764,316 $ 520,214,002 $ 533,304,941 $ 542,933,904 $ 553,586,726 $ 569,410,018
116,203,827 128,580,087 132,069,178 150,132,598 159,375,667 171,911,419
72,873,567 7,158,887 5,985,180 (1,350,721) (21,032,366) (34,540,764)
$ 703,841,710 $ 655,952,976 $ 671,359,299 $ 691,715,781 $ 691,930,027 $ 706,780,673
$ 211,660,190 $ 213,114,279 $ 206,497,575 $ 201,774,405 $ 197,842,084 $ 212,240,133
- (A) - - - - -
88,420,541 91,057,348 100,336,692 107,047,824 113,467,530 106,508,242
$ 300,080,731 $ 304,171,627 $ 306,834,267 $ 308,822,229 $ 311,309,614 $ 318,748,375
$ 726,424,506 $ 733,328,281 $ 739,802,516 $ 744,708,309 $ 751,428,810 $ 781,650,151
116,203,827 128,580,087 132,069,178 150,132,598 159,375,667 171,911,419
161,294,108 98,216,235 106,321,872 105,697,103 92,435,164 71,967,478
$ 1,003,922,441 $ 960,124,603 $ 978,193,566
$ 1,000,538,010 $ 1,003,239,641 $ 1,025,529,048
174
Indian River County, Florida
Changes in Net Position (Unaudited)
Last Ten Fiscal Years
(accrual basis of accounting)
2010 2011 2012 2013
Expenses
Governmental activities:
General government $ 23,506,576 $ 21,324,680 $ 19,069,181 $ 20,637,750
Public safety 68,235,492 67,393,943 66,456,674 66,178,467
Physical environment 1,405,690 1,353,074 2,424,109 1,858,307
Transportation 20,861,672 22,300,819 23,629,799 26,286,998
Economic environment 2,525,988 2,056,453 1,986,091 2,550,157
Human service 7,370,995 7,762,962 7,749,253 6,818,023
Cultural/recreation 16,009,122 16,484,242 18,089,432 19,369,326
Court related 6,251,773 5,774,032 5,635,245 5,835,184
Interest on long-term debt 2,714,422 2,526,114 2,350,241 2,087,204
Total governmental activities expenses 148,881,730 146,976,319 147,390,025 151,621,416
Business-type activities:
Water and sewer 34,748,276 33,818,640 34,246,967 33,815,749
Solid waste 10,683,984 10,370,476 10,659,004 10,405,143
Golf course 2,715,607 2,537,665 2,451,603 2,537,525
Building 1,858,420 1,623,862 1,487,515 1,547,815
Total business-type activities expenses 50,006,287 48,350,643 48,845,089 48,306,232
Total primary government expenses $ 198,888,017 $ 195,326,962 $ 196,235,114 $ 199,927,648
Program Revenues
Governmental activities:
Charges for services:
General government $ 5,889,678 $ 5,845,567 $ 5,304,385 $ 5,482,814
Public safety 5,267,209 6,076,085 5,852,093 6,625,924
Physical environment 21,006 24,204 20,923 5,900
Transportation 1,514,132 2,090,194 2,345,186 2,768,107
Human service 295,812 346,689 358,279 213,485
Cultural/recreation 1,328,225 1,340,550 1,397,660 1,765,912
Court related 545,967 501,980 414,356 1,301,135
Operating grants and contributions 15,772,265 (A) 7,926,832 8,230,411 26,921,514 (C)
Capital grants and contributions 7,016,429 (B) 1,937,488 7,053,494 6,681,421
Total governmental activities program revenues 37,650,723 26,089,589 30,976,787 51,766,212
Business-type activities:
Charges for services:
Water and sewer 27,738,920 27,842,092 28,361,246 28,522,667
Solid waste 8,972,136 9,221,396 9,582,955 9,998,410
Golf course 3,148,029 3,163,062 3,216,471 3,072,332
Building 1,612,870 1,588,934 1,735,713 2,018,104
Operating grants and contributions - - - -
Capital grants and contributions 1,713,074 1,923,271 2,545,759 4,700,473
Total business-type activities program revenues 43,185,029 43,738,755 45,442,144 48,311,986
Total primary government program revenues $ 80,835,752 $ 69,828,344 $ 76,418,931 $ 100,078,198
Notes:
(A) Received Neighborhood Stabilization Grant of $2.6 million.
(B) Contribution of $4.2 million for Sector 3 beach renourishment from Sebastian Inlet District.
(C) State Shared Revenues reclassified to operating grants and contributions.
175
Schedule 2
2014 2015 2016 2017 2018 2019
$ 22,968,835 $ 24,732,636 $ 27,472,414 $ 25,936,632 $ 28,331,287 $ 31,389,285
66,954,956 66,364,113 77,587,638 83,312,452 85,963,087 100,559,725
1,031,710 1,636,749 1,457,248 2,312,036 1,610,264 1,929,479
23,577,720 25,992,461 28,221,515 28,844,114 34,860,409 31,169,505
1,084,204 421,057 427,227 439,460 422,142 471,588
7,136,042 7,352,777 7,790,430 8,030,927 9,346,942 9,647,749
16,610,269 17,011,188 14,713,304 16,000,837 15,399,398 17,877,861
6,360,814 6,677,054 7,077,295 7,241,707 7,038,280 7,906,671
1,944,229 1,013,527 938,123 763,636 668,269 460,704
147,668,779 151,201,562 165,685,194 172,881,801 183,640,078 201,412,567
35,821,287 35,223,882 35,420,291 38,609,232 38,257,678 45,076,191
10,801,408 11,708,383 12,714,713 14,542,100 15,756,764 14,731,205
2,588,424 2,498,397 2,605,612 2,693,389 2,785,664 2,870,275
1,833,528 7,085,190 2,724,650 3,504,086 3,908,938 4,675,422
51,044,647 56,515,852 53,465,266 59,348,807 60,709,044 67,353,093
$ 198,713,426 $ 207,717,414 $ 219,150,460 $ 232,230,608 $ 244,349,122 $ 268,765,660
$ 5,895,424 $ 6,641,363 $ 7,192,821 $ 6,436,467 $ 7,029,378 $ 8,022,184
8,025,849 6,457,584 8,244,224 8,557,148 8,389,034 8,425,164
20,970 - 9,153 9,650 9,192 9,350
3,365,961 4,273,591 4,508,637 4,139,569 5,098,549 5,357,114
211,294 277,279 165,041 201,484 458,452 151,861
1,883,347 1,941,993 2,405,951 2,723,416 3,136,349 3,224,903
3,592,298 3,308,235 2,394,385 3,214,658 3,225,394 3,658,067
22,229,254 24,872,734 24,587,446 32,161,715 28,765,842 29,402,984
7,521,538 11,671,085 5,969,099 6,820,530 7,158,737 4,168,347
52,745,935 59,443,864 55,476,757 64,264,637 63,270,927 62,419,974
29,565,901 30,089,101 31,089,758 32,020,230 32,834,696 34,050,737
10,272,415 11,455,302 13,345,745 13,784,379 14,769,028 15,837,635
3,080,960 3,235,879 3,230,630 3,219,311 3,216,513 3,306,251
2,417,724 2,958,488 3,406,022 3,742,659 4,673,531 3,555,314
- - - 1,523,631 1,465,891 8,336
5,032,042 8,616,416 5,035,914 6,108,117 6,737,992 13,990,806
50,369,042 56,355,186 56,108,069 60,398,327 63,697,651 70,749,079
$ 103,114,977 $ 115,799,050 $ 111,584,826 $ 124,662,964 $ 126,968,578 $ 133,169,053
Continued
176
Indian River County, Florida
Changes in Net Position (Unaudited)
Last Ten Fiscal Years
(accrual basis of accounting)
2010 2011 2012 2013
Net (Expense)/Revenue
Governmental activities $ (111,231,007) $ (120,886,730) $ (116,413,238) $ (99,855,204)
Business-type activities (6,821,258) (4,611,888) (3,402,945) 5,754
Total primary government net expenses $ (118,052,265) $ (125,498,618) $ (119,816,183) $ (99,849,450)
General Revenues and Other Changes in Net Position
Governmental activities:
Property taxes, levied for general purposes $ 78,670,463 $ 69,856,750 $ 64,753,566 $ 62,305,177
Property taxes, levied for debt service 5,933,535 5,600,767 5,574,183 4,664,885
Sales and use taxes 19,022,728 19,261,033 20,144,820 21,035,360
Franchise fees 9,254,621 8,730,861 8,620,401 8,818,952
State shared revenues 17,487,653 17,328,867 17,908,806 - (B)
Interest earnings 2,079,873 1,299,894 668,012 637,099
Miscellaneous 2,061,415 3,082,481 3,079,701 2,903,771
Transfers (25,965) (643,144) (32,957) -
Total governmental activities 134,484,323 124,517,509 120,716,532 100,365,244
Business-type activities:
State shared revenues - - - -
Interest earnings 1,173,512 723,870 600,116 427,041
Miscellaneous 70,181 562,651 (A) 8,400 37,812
Transfers 25,965 643,144 32,957 -
Total business-type activities 1,269,658 1,929,665 641,473 464,853
Total primary government $ 135,753,981 $ 126,447,174 $ 121,358,005 $ 100,830,097
Change in Net Position
Governmental activities $ 23,253,316 $ 3,630,779 $ 4,303,294 $ 510,040
Business-type activities (5,551,600) (2,682,223) (2,761,472) 470,607
Total primary government change in net position $ 17,701,716 $ 948,556 $ 1,541,822 $ 980,647
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.
177
Schedule 2
2014 2015 2016 2017 2018 2019
$ (94,922,844) $ (91,757,698) $ (110,208,437) $ (108,617,164) $ (120,369,151) $ (138,992,593)
(675,605) 4,839,334 2,642,803 1,049,520 2,988,607 3,395,986
$ (95,598,449) $ (86,918,364) $ (107,565,634) $ (107,567,644) $ (117,380,544) $ (135,596,607)
$ 67,985,321 $ 71,825,109 $ 80,100,810 $ 85,572,692 $ 94,003,409 $ 100,483,536
4,730,556 4,795,927 4,594,381 4,619,804 4,636,034 4,744,345
21,860,958 23,549,042 24,387,340 25,564,904 27,083,593 27,458,882
9,310,711 9,180,652 9,273,567 9,130,133 9,447,649 9,124,073
- - - - - -
542,542 1,051,822 1,333,048 1,474,698 2,768,691 8,494,530
2,459,033 1,799,538 5,141,162 2,694,082 2,906,764 3,728,033
(44,000) (3,057,421) 784,452 (82,667) (85,616) (190,160)
106,845,121 109,144,669 125,614,760 128,973,646 140,760,524 153,843,239
- - - - - -
381,497 625,525 791,683 818,490 1,302,025 3,813,252
331 56,887 12,606 37,285 29,650 39,363
44,000 3,057,421 (784,452) 82,667 85,616 190,160
425,828 3,739,833 19,837 938,442 1,417,291 4,042,775
$ 107,270,949 $ 112,884,502 $ 125,634,597 $ 129,912,088 $ 142,177,815 $ 157,886,014
$ 11,922,277 $ 17,386,971 $ 15,406,323 $ 20,356,482 $ 20,391,373 $ 14,850,646
(249,777) 8,579,167 2,662,640 1,987,962 4,405,898 7,438,761
$ 11,672,500 $ 25,966,138 $ 18,068,963 $ 22,344,444 $ 24,797,271 $ 22,289,407
178
Indian River County, Florida
Fund Balances, Governmental Funds (Unaudited)
Last Ten Fiscal Years
(modified accrual basis of accounting)
2010 (A) 2011 2012 2013
General Fund
Nonspendable $ 162,760 $ 363,619 $ 311,241 $ 1,224,835
Restricted 18,290 50,015 1,120,087 1,000,000
Committed 21,757,565 21,041,045 2,374,790 (B) 2,370,079
Assigned 1,415,000 1,660,000 1,808,000 900,000
Unassigned 33,160,873 33,694,612 48,722,929 (B) 44,385,674
Total general fund $ 56,514,488 $ 56,809,291 $ 54,337,047 $ 49,880,588
All other governmental funds
Nonspendable $ 2,316,373 $ 814,858 $ 557,128 $ 50,788
Restricted 130,175,284 125,082,370 116,379,943 112,523,743
Committed 4,691,573 4,661,146 1,483,393 1,481,312
Assigned 9,471,022 10,013,457 11,288,602 8,964,238
Unassigned (deficit) (1,184,722) (354,995) (202,971) (339,223)
Total all other governmental funds $ 145,469,530 $ 140,216,836 $ 129,506,095 $ 122,680,858
Total governmental funds $ 201,984,018 $ 197,026,127 $ 183,843,142 $ 172,561,446
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.
179
Schedule 3
2014 2015 2016 2017 2018 2019
$ 1,134,846 $ 459,546 $ 371,121 $ 1,183,875 $ 976,972 $ 614,277
1,000,000 1,000,000 1,000,000 1,246,278 1,139,811 1,001,230
1,223,183 1,092,575 1,166,830 1,655,789 1,627,628 1,310,621
- (C) - - - - -
48,320,836 47,727,109 45,909,787 43,334,507 47,904,588 52,768,642
$ 51,678,865 $ 50,279,230 $ 48,447,738 $ 47,420,449 $ 51,648,999 $ 55,694,770
$ 39,337 $ 69,907 $ 121,906 $ 217,550 $ 199,134 $ 145,165
112,266,321 120,531,318 127,285,732 133,714,625 153,053,248 166,534,476
1,492,929 1,504,391 1,401,530 1,515,217 1,610,299 1,478,993
8,139,695 7,139,358 7,118,688 7,400,390 7,620,206 8,666,836
(201,587) (439,479) - (290,542) (2,400) (160,530)
$ 121,736,695 $ 128,805,495 $ 135,927,856 $ 142,557,240 $ 162,480,487 $ 176,664,940
$ 173,415,560 $ 179,084,725 $ 184,375,594 $ 189,977,689 $ 214,129,486 $ 232,359,710
180
Indian River County, Florida
Changes in Fund Balances, Governmental Funds (Unaudited)
Last Ten Fiscal Years
(modified accrual basis of accounting)
2010 2011 2012 2013
Revenues
Taxes $ 103,626,726 $ 94,718,550 $ 90,472,569 $ 88,005,422
Permits, fees, and special assessments 11,322,039 11,189,393 11,486,235 12,769,844
Intergovernmental 37,687,574 37,687,574 29,759,832 30,086,479
Charges for services 14,665,805 15,030,329 14,760,125 15,887,241
Judgments, fines and forfeits 852,012 936,995 739,275 778,575
Interest 2,061,385 1,173,103 613,023 570,559
Miscellaneous 2,383,493 2,383,493 5,237,426 3,841,294
Total Revenues 172,599,034 163,119,437 153,068,485 151,939,414
Expenditures
Current:
General government 20,894,116 19,271,196 20,477,898 19,056,322
Public safety 71,489,613 70,432,615 67,761,985 66,908,328
Physical environment 1,131,173 1,371,734 1,751,623 771,942
Transportation 27,497,907 28,432,207 29,058,310 28,223,229
Economic environment 2,520,339 2,099,698 2,021,184 2,581,401
Human service 7,267,406 7,625,369 6,888,883 6,952,460
Culture/recreation 18,453,642 14,706,194 13,808,303 11,538,809
Court related 6,214,831 5,983,085 5,860,925 6,054,822
Debt service:
Principal 5,315,000 4,270,000 8,060,000 (A) 6,050,000 (B)
Interest and fiscal charges 2,758,138 2,562,374 2,426,083 2,118,704
Capital projects 7,487,068 5,825,287 8,108,370 13,037,552
Total Expenditures 171,029,233 162,579,759 166,223,564 163,293,569
Excess of revenues over
(under) expenditures 1,569,801 539,678 (13,155,079) (11,354,155)
Other Financing Sources (Uses)
Issuance of refunding notes - - - -
Lease purchase proceeds - - - -
Insurance recoveries - - - -
Transfers out (17,057,014) (8,918,267) (11,622,984) (12,540,187)
Payments to refunded bond escrow agent - - - -
Transfers in 17,001,997 8,862,969 11,595,078 12,504,699
Total other financing sources (uses) (55,017) (55,298) (27,906) (35,488)
Net change in fund balances $ 1,514,784 $ 484,380 $ (13,182,985) $ (11,389,643)
Debt service as a percentage of
noncapital expenditures 5.6% 5.0% 7.6% 6.0%
(A) Early call of remaining General Obligation Bonds, Series 2001 of $3.6 million.
(B) Payoff of portion of Spring Training Bonds, Series 2001 of $2.275 million.
(C) Refunded all of General Obligation Bonds, Series 2006 with a fixed rate 7-year note.
(D) Completed widening of major north-south road.
181
Schedule 4
2014 2015 2016 2017 2018 2019
$ 94,585,345 $ 100,170,078 $ 109,082,531 $ 115,757,400 $ 125,723,036 $ 132,686,763
14,321,389 15,567,731 16,530,179 15,900,775 17,825,047 18,092,708
30,563,650 32,065,821 33,535,027 30,031,350 36,535,393 31,956,921
18,076,888 18,558,182 15,532,928 16,006,929 17,133,195 17,919,081
1,004,374 897,860 1,672,773 1,620,964 1,697,085 2,148,209
463,274 894,705 1,133,215 1,287,415 2,273,375 7,575,639
3,221,548 2,470,553 8,158,393 6,392,927 5,891,296 5,986,962
162,236,468 170,624,930 185,645,046 186,997,760 207,078,427 216,366,283
20,681,570 22,957,111 22,693,234 24,681,861 25,016,607 24,925,629
67,799,667 71,703,248 77,316,218 83,397,539 85,158,140 89,020,678
781,306 1,055,021 788,803 1,300,862 1,131,396 1,353,623
23,321,248 27,945,569 27,505,659 26,562,596 26,900,384 30,379,114
1,106,886 436,320 424,593 437,031 426,085 469,565
7,178,542 7,519,756 7,868,392 8,116,910 9,302,125 9,484,542
11,627,286 15,719,709 13,562,765 12,013,338 12,089,937 15,583,672
6,487,906 6,677,909 6,605,682 6,755,050 6,540,045 7,241,534
3,700,000 4,180,000 4,383,000 4,573,000 4,708,000 5,738,632
1,984,616 1,266,070 832,007 657,520 562,153 442,999
16,560,991 5,309,597 (D) 13,329,391 12,777,795 17,978,862 13,393,105
161,230,018 164,770,310 175,309,744 181,273,502 189,813,734 198,033,093
1,006,450 5,854,620 10,335,302 5,724,258 17,264,693 18,333,190
- 20,369,000 (C) - - - -
- - - - - 20,855
- - - - 7,014,087 109,671
(10,244,980) (11,354,519) (17,375,606) (14,453,902) (13,274,738) (16,552,188)
- (20,340,959) (C) - - - -
10,092,644 11,141,023 12,331,173 14,331,739 13,147,755 16,318,696
(152,336) (185,455) (5,044,433) (122,163) 6,887,104 (102,966)
$ 854,114 $ 5,669,165 $ 5,290,869 $ 5,602,095 $ 24,151,797 $ 18,230,224
4.3% 3.8% 3.6% 3.4% 3.2% 3.7%
182
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
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
2019 105,227,881 19,263,128 3,093,941 3,823,809 1,278,004 132,686,763
(A) The County 's primary source of revenue is property taxes, amounting to 79 percent of Governmental Funds tax revenues
in 2019. Consequently, supplemental required schedules are provided only for property tax revenues.
183
Indian River County, Florida
Assessed Value and Actual Value of Taxable Property (Unaudited)
Last Ten Fiscal Years Schedule 6
Real Personal Less: Total Taxable Total
Fiscal Property Property Total Tax-Exempt Assessed Direct
Year Actual Value Actual Value Actual Value Property Value Tax Rate
2010 $ 21,272,439,325 $ 761,011,306 $ 22,033,450,631 $ 6,237,291,938 $ 15,796,158,693 4.1666
2011 18,741,543,869 711,180,228 19,452,724,097 5,313,689,267 14,139,034,830 4.1625
2012 17,291,910,945 644,205,795 17,936,116,740 4,731,112,173 13,205,004,567 4.1625
2013 16,563,604,291 635,119,066 17,198,723,357 4,497,471,382 12,701,251,975 4.1625
2014 16,832,196,339 697,294,522 17,529,490,861 4,670,052,667 12,859,438,194 4.3353
2015 17,855,660,837 696,658,855 18,552,319,692 5,150,260,231 13,402,059,461 4.4108
2016 19,941,465,452 698,630,083 20,640,095,535 6,338,690,254 14,301,405,281 4.4335
2017 23,725,954,463 675,815,085 24,401,769,548 8,125,447,769 16,276,321,779 4.4335
2018 25,295,251,822 634,654,180 25,929,906,002 8,547,972,646 17,381,933,356 4.5337
2019 26,921,744,684 737,895,129 27,659,639,813 9,079,222,273 18,580,417,540 4.5337
Source: Indian River County Property Appraiser; values are established as of January 1 of the previous
calendar year, i.e., January 1, 2018 taxable values apply to the fiscal year ending September 30, 2019.
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.
184
Indian River County, Florida
Property Tax Rates
Direct and Overlapping Tax Rates (Unaudited)
Last Ten Fiscal Years
2010 2011 2012 2013
County direct rate
General fund 3.0892 3.0892 3.0892 3.0892
Municipal service 1.0774 1.0733 1.0733 1.0733
Total direct rate (A) 4.1666 4.1625 4.1625 4.1625
County-wide district school board rate 7.5960 8.2500 8.2440 8.3130
Other County-wide rates
Emergency Management Services District 1.7148 1.7148 1.7148 1.7148
Land acquisition bond 0.3879 0.4087 0.4364 0.3799
Total other County-wide rates 2.1027 2.1235 2.1512 2.0947
Total County-wide rate (B) 13.8653 14.5360 14.5577 14.5702
City rates
Fellsmere 4.4300 4.4300 5.2455 5.4999
Indian River Shores 1.3923 1.4105 1.4731 1.4731
Sebastian 3.3456 3.3041 3.3041 3.7166
Orchid 0.4550 0.4550 0.4550 0.5000
Vero Beach 1.9367 1.9367 2.0336 2.0336
Average of cities rates 2.3119 2.3073 2.5023 2.6446
Other special district rates 1.7515 1.7663 1.6856 1.6859
(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
185
Schedule 7
2014 2015 2016 2017 2018 2019
3.2620 3.3375 3.3602 3.3602 3.4604 3.4604
1.0733 1.0733 1.0733 1.0733 1.0733 1.0733
4.3353 4.4108 4.4335 4.4335 4.5337 4.5337
8.1160 7.9950 7.9550 7.4100 7.0530 6.7930
1.9799 1.9799 2.2551 2.3010 2.3655 2.3655
0.3788 0.3694 0.3315 0.3143 0.2955 0.2827
2.3587 2.3493 2.5866 2.6153 2.6610 2.6482
14.8100 14.7551 14.9751 14.4588 14.2477 13.9749
5.6190 5.5309 5.2756 4.9599 4.9599 5.3662
1.4731 1.6786 1.6786 1.7186 1.3774 1.2890
3.7166 3.8556 3.8556 3.8556 3.4000 3.1514
0.4864 0.5500 0.7000 1.2500 2.3000 1.4000
2.0336 2.0336 2.3800 2.3800 2.5194 2.5194
2.6657 2.7297 2.7780 2.8328 2.9113 2.7452
1.7128 1.7124 1.6993 1.5170 1.5390 1.5396
186
Indian River County, Florida
Principal Property Taxpayers (Unaudited)
Year 2019 and Year 2010 Schedule 8
2019 2010
Real Percentages Real Percentages
Property of Total Property of Total
Assessed Assessed Assessed Assessed
Taxpayer Valuation Rank Valuation Valuation Rank Valuation
Florida Power & Light $ 286,759,699 1 1.54% $ 97,540,932 1 0.62%
Disney Vacation Dev. Inc. 79,950,211 2 0.43 73,978,167 2 0.52
Windsor Properties 52,924,742 3 0.28 32,987,768 7 0.23
Johns Island Club, Inc. 41,644,059 4 0.22 43,873,235 6 0.30
Adult Community Total Services, Inc. 33,096,795 5 0.18 51,563,000 3 0.36
Welltower TCG Ridea Landlord, LLC 27,614,231 6 0.15 -
Bellsouth Telecommunications 26,974,425 7 0.15 51,024,833 4 0.36
TSO Vero Beach, LP 25,341,441 8 0.14 -
MPT of Sebastian-Steward, LLC 23,168,504 9 0.12 24,904,164 9 0.18
DSTS, LLC 21,895,974 10 0.12 - -
Indian River Mall Association - - 43,145,900 5 0.30
Fellsmere Joint Venture - - 30,313,940 8 0.21
CVS Vero FL Distribution, LLC - - 23,922,276 10 0.17
Total Principal Property Taxpayers
Real Property Assessed Valuation $ 619,370,081 3.33% $ 473,254,215 3.32%
Total County Taxable Valuation $ 18,580,417,540 $ 15,796,158,693
(from schedule 6)
Source: Indian River County Property Appraiser
Indian River County, Florida annual budgets
187
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
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
2019 108,994,936 105,148,685 96.47 26,255 105,174,940 96.50
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 property tax collections differ from actual collections reported on Schedule 5 due to the exclusion of interest earnings
on collections of $52,941.
188
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)
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
2019 7,268,000 15,447 4,155,000 - - 3,174,000 (F)
(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. 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.
(F) The County elected to redeem 100% of the outstanding Water & Sewer Revenue Refunding Bonds, Series
2009 on September 1, 2019.
Further information may be found in Note 10.
Source of per capita income is University of Florida, Bureau of Economic and Business Research.
189
Schedule 10
Percentage
Total of Total Debt Debt
Primary to Personal Per
Government Income (E) Capita (E)
$ 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 0.29 237
14,612,447 (D) 94
190
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
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 10,088,400 0.0006 66.4476
2019 154,939 18,580,417,540 7,268,000 1,734,275 5,533,725 0.0003 35.7155
(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.
191
Indian River County, Florida
Computation of Legal Debt Margin (Unaudited)
September 30, 2019 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.
192
Indian River County, Florida
Direct and Overlapping Governmental Activities Debt (Unaudited)
September 30, 2019 Schedule 13
Governmental Unit Share of
Debt Percentage Overlapping
Debt repaid with property taxes: Outstanding Applicable Debt
Indian River County Limited General Obligation
Refunding Note, Series 2015 $ 7,268,000 100% $ 7,268,000
Revenue Bonds - Spring Training Facility - Series 2001 4,155,000 100% 4,155,000
Total direct debt of County: 11,423,000
Other debt:
Indian River County School District Certificates of Participation 98,802,832 (A) 100% 98,802,832
Total overlapping debt 98,802,832
Total direct and overlapping debt $ 110,225,832
(A) Indian River County School District, as of June 30, 2019
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.
193
194
Indian River County, Florida
Pledged Revenue Coverage (Unaudited)
Water and Sewer Revenue Bonds
(Series 1993A, 1996, 2005, 2009)
Last Ten Fiscal Years
2010 2011 2012 2013
Uniform Charges
Water sales $ 13,570,657 $ 13,565,766 $ 13,621,878 $ 13,667,115
Wastewater sales 12,375,346 12,203,750 12,515,394 12,546,429
Other 1,430,966 1,639,985 1,727,411 1,763,426
Total uniform charges 27,376,969 27,409,501 27,864,683 27,976,970
Septage/Sludge 302,187 314,969 373,616 426,634
Surcharges 245,011 245,245 246,298 246,363
Interest earnings 686,776 491,260 315,377 239,270
1989/1990 Special assessments 438 8,718 - -
1996 Special assessments 151,316 93,513 75,037 69,757
Gross revenues 28,762,697 28,563,206 28,875,011 28,958,994
Less: Direct expenses 16,007,055 15,404,503 15,657,085 15,217,294
Net revenues available
for debt service $ 12,755,642 $ 13,158,703 $ 13,217,926 $ 13,741,700
Annual debt service
Principal $ 2,870,000 $ 2,990,000 $ 3,090,000 $ 3,205,000
Interest 2,510,910 2,324,525 2,193,450 2,080,951
Total debt service payment $ 5,380,910 $ 5,314,525 $ 5,283,450 $ 5,285,951
Debt service coverage 2.37x 2.48x 2.50x 2.60x
Notes:
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.
The County elected to redeem 100% of the outstanding Water and Sewer Revenue Refunding Bonds, Series 2009 on
September 1, 2019.
Water and Sewer debt information can be found in Note 10.
195
Schedule 14
2014 2015 2016 2017 2018 2019
$ 14,059,231 $ 14,345,074 $ 14,829,381 $ 15,325,231 $ 15,350,614 $ 16,554,964
12,879,006 13,116,393 13,498,090 13,777,255 13,980,424 14,234,084
2,025,378 2,005,106 2,068,865 2,262,801 2,793,060 2,591,943
28,963,615 29,466,573 30,396,336 31,365,287 32,124,098 33,380,991
478,555 483,828 531,432 521,882 507,233 503,408
242,073 98,163 - - - -
258,741 294,303 363,597 375,208 624,790 1,903,024
- - - - - -
22,091 30,872 31,915 22,440 9,008 6,917
29,965,075 30,373,739 31,323,280 32,284,817 33,265,129 35,794,340
16,040,433 16,129,860 18,064,619 18,590,922 18,754,402 26,072,580
$ 13,924,642 $ 14,243,879 $ 13,258,661 $ 13,693,895 $ 14,510,727 $ 9,721,760
$ 3,350,000 $ 3,485,000 $ 2,878,000 $ 2,992,000 $ 3,107,000 $ 3,230,000
1,937,450 1,827,867 1,095,886 983,267 866,899 745,284
$ 5,287,450 $ 5,312,867 $ 3,973,886 $ 3,975,267 $ 3,973,899 $ 3,975,284
2.63x 2.68x 3.34x 3.44x 3.65x 2.45x
196
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)
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 11,972,633,000 76,059 3.9
2019 154,939 (D) (D) 3.7
Sources:
(A) University of Florida, Bureau of Economic and Business Research
(B) US Department of Commerce, Bureau of Economic Analysis
(C) Florida Agency for Workforce Innovation
(D) Information not available
The population and personal income information is used in Schedule 10 for calculation of
Debt Per Capita and Percentage of Debt to Personal Income.
197
Indian River County, Florida
Principal Employers (Unaudited)
Year 2019 and Year 2010 Schedule 16
2019
Percentage
Number of of Total County
Employer Employees Employment
School District of Indian River County 2,121 3.30%
Cleveland Clinic Indian River Hospital ** 2,097 3.27
Indian River County* 1,518 2.37
Publix Supermarkets 1,380 2.15
Piper Aircraft Inc. 1,003 1.56
Wal-Mart 806 1.26
Sebastian River Medical Center 750 1.17
John's Island 589 0.92
Indian River Estates 486 0.76
Visiting Nurse Association 484 0.75
Total 11,234 17.51
0
Total County Employees 64,181
2010
Percentage
Number of of Total County
Employer Employees Employment
School District of Indian River County 2,080 3.93%
Indian River County* 1,411 2.66
Indian River Medical Center ** 1,334 2.52
Publix Supermarkets 960 1.81
Piper Aircraft Inc. 850 1.60
Sebastian River Medical Center 600 1.13
John's Island 550 1.04
City of Vero Beach 505 0.95
Visiting Nurse Association 475 0.90
Indian River Estates 442 0.83
Total 9,207 17.37
Total County Employees 52,985
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.
**Effective January 1, 2019 Indian River Medical Center is now Cleveland Clinic Indian River Hospital
198
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
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 (A) 1,071 348,481,070 7,342 73,002,815 227 69,562,947
2018 1,133 412,240,706 11,889 185,405,814 276 143,690,820
2019 1,561 486,180,472 10,377 131,512,299 288 91,152,794
Source: Building Departments - Indian River County (including the City of Vero Beach),
Town of Orchid, Town of Indian River Shores, City of Sebastian, and City of Fellsmere.
(A) Data for the Town of Indian River Shores was only available through April 30, 2017 due to conversion to
new software.
199
Schedule 17
Countywide
# of Additions & # of New # of Additions &
Permits Alterations Permits Construction Permits Alterations
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 65,096,641 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
7,603 115,858,317 1,849 577,333,266 17,980 247,370,616
200
Indian River County, Florida
Operating Indicators by Function/Program (Unaudited)
Last Ten Fiscal Years
Function/Program
2010 2011 2012 2013
General Government
Purchasing
Purchase orders issued 1,970 1,805 1,852 1,740
Public Safety
Fire rescue
Vehicle rescue response 34,529 37,550 39,316 39,340
Fire code inspections 2,358 2,239 1,874 1,992
Advanced life support calls 9,751 10,935 10,904 10,991
Basic life support calls (transport only) 3,269 3,077 3,406 3,544
Sheriff
Arrests 5,065 4,464 3,144 3,885
Violent crimes 310 394 107 439
Non-violent crimes 5,719 6,058 6,063 5,683
Total calls for service 154,480 162,944 176,170 199,687
Building department
Construction permits issued 394 416 421 562
Estimated value of construction (millions) $ 83.0 $ 96.3 $ 95.7 $ 159.4
Physical Environment
Solid waste
Waste stream tonnage received 201,561 180,434 205,355 211,382
Total recycled material (tons) 45,298 30,424 53,255 50,792
Utilities - water & sewer
Number of water customers 43,723 44,254 44,571 45,216
Number of wastewater customers 25,205 25,465 25,773 26,233
Water ERUs 64,146 64,391 64,820 65,477
Wastewater ERUs 45,427 45,863 46,107 46,576
Water consumption (Average Daily Demand) 8,225,000 8,198,000 7,798,000 7,558,000
Source: Internal reports prepared by the various departments of Indian River County
201
Schedule 18
2014 2015 2016 2017 2018 2019
1,760 1,826 2,033 2,312 2,418 2,617
41,540 45,485 45,874 47,357 48,615 47,362
1,753 1,993 2,200 2,500 2,162 1,869
11,283 11,571 12,428 12,947 13,711 13,746
3,851 4,180 4,524 4,798 4,969 5,004
4,262 3,832 3,660 3,922 3,699 3,602
552 495 548 549 606 582
5,853 5,804 5,682 5,501 5,376 5,722
216,082 250,814 274,464 235,540 273,760 283,732
611 666 827 1,071 1,133 1,561
$ 190.8 $ 241.1 $ 309.0 $ 348.4 $ 412.2 $ 486.2
265,278 265,958 279,910 310,007 295,380 290,413
101,444 86,564 98,009 119,773 94,218 82,795
46,223 46,865 48,540 49,176 50,254 51,548
26,948 27,448 28,767 29,229 30,021 30,745
66,261 66,829 72,488 68,506 69,463 69,957
47,027 47,596 53,428 48,748 49,425 49,217
8,620,000 9,200,000 9,200,000 9,900,000 10,162,000 10,400,000
Continued
202
Indian River County, Florida
Operating Indicators by Function/Program (Unaudited)
Last Ten Fiscal Years
Function/Program
2010 2011 2012 2013
Transportation
Public works
Projects under design 13 26 19 20
Projects awarded for construction 7 7 10 5
Construction projects completed 6 8 8 5
County engineering
Roads designed 6 4 4 6
Miles of roads designed 6.00 1.00 8.00 6.00
Traffic engineering
Site plans reviewed 271 218 290 357
Culture/Recreation
Library
Circulation (County-wide) 1,403,367 1,362,857 1,277,253 1,300,764 (A)
Recreation department
Total beach park attendance 467,434 449,213 420,609 404,287
Athletic and event attendance 23,750 24,112 23,979 23,841
Aquatic centers attendance 87,107 98,515 97,965 97,183
Shooting range
Safety/Registration cards issued 6,471 8,176 8,302 8,462
Golf course
Rounds played 96,593 94,713 96,723 91,770
Court Related
Law library
Circulation 13,079 9,168 9,428 N/A (A)
(A) Law library circulation is now included in the County-wide library circulation.
203
Schedule 18
2014 2015 2016 2017 2018 2019
43 34 13 15 31 20
7 9 3 7 8 8
20 17 17 13 11 10
8 8 6 5 4 6
8.35 10.00 8.50 11.00 4.75 18.75
387 554 412 560 715 890
1,317,458 1,295,310 1,389,188 1,315,425 1,254,954 1,365,623
434,397 416,962 669,465 553,630 792,782 788,389
23,900 24,073 24,267 23,974 25,016 24,832
105,459 110,186 116,997 112,308 113,592 114,700
7,911 7,655 5,984 6,867 7,318 7,196
90,306 93,739 91,426 96,332 93,361 96,775
N/A N/A N/A N/A N/A N/A
204
Indian River County, Florida
Full-Time Equivalent County Government Employees by Function/Program (Unaudited)
Last Ten Fiscal Years
2010 2011 2012 2013
General Government
Board of County Commissioners 10 10 8.5 9
County Attorney 6 6 6 6
Administration 2.72 2.35 2.35 2.35
Financial/Administrative Service 21.5 19.85 19.85 19.35
Comprehensive Planning 16 14.32 15 15
Other 36.5 34 34.75 33.9
Clerk of Circuit Court 98.5 98 96 98
Property Appraiser 40 36 35 35
Supervisor of Elections 9.5 8 8.5 8.5
Tax Collector 38 38 38 44
Public Safety
Fire Department 246 244 243 243
Sheriff - Corrections 198 207 163 163
Sheriff - Court Service 29.5 29.5 27.5 27.5
Sheriff - Law Enforcement 301 301 303 303
Building Department 17 15 14 15
Other 9 6.68 6 4
Physical Environment
Solid Waste 49 10 9 9
Utilities - water and sewer 118 112.5 112.5 113.5
Other 9 8 8 7
Transportation
Road and Bridges 80 77 77.25 77.1
County Engineering 28 27 26 24
Traffic Engineering 21 20 20 19
Real Estate Acquisition 2.28 1 1 1
Economic Environment 3.5 2.5 2.5 2.5
Human Services 13 13 13 12
Culture/Recreation
Libraries 47.5 46.5 42 41.5
Parks 37 34 28 28
Recreation Department 37.5 33 33.3 32.3
Coastal Engineering 2 2 2 2
Shooting Range 5.5 5 5 5
Golf Course 15.5 15.5 15 13.5
Court Related
Law Library 1 1 1 1
Total 1,549.0 1,478.0 1,416.0 1415.0
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.
205
Schedule 19
2014 2015 2016 2017 2018 2019
9 9 9 9 9 9
6 6 6 6 6 6
2.35 2.35 2.35 2.35 2.35 3.35
20.85 21.85 22.85 21.85 22.35 24.35
14.5 14.5 14.5 15 16 16.5
33.4 33.4 33.4 35.4 36.4 37.9
93 93 97 90 87 85.5
36 36 39 38 39 39
9.5 9.5 9.5 10.5 11 9
45 47 47 49 51 59.5
243 244 265 276 295 295.5
163 163 168 171 171 174
27.5 27.5 34 29 29 32
303 303 278 289 305 310
18.5 21.5 25 29.5 30.5 33.5
4 4.5 5.5 6 6 6
9 10 10 11 11 10
116.5 118.5 120.5 122.5 127.5 131.5
8 8 10 9 11 13
78.1 78.1 79.1 79.1 79.1 82.1
24 26 26 28 30 32
19 20 21 22 22 22
1 1 1 1 1 1
2.5 2.5 2.5 2.5 2.5 2.5
12 12 12 12 12.5 14
41.5 42 42 42 42 40.5
28 28 28 30 30 30
32.8 38.3 38.3 42.3 43.3 43.3
2 2 2 2 3 3
5 5 5.5 9.5 9.5 9.5
13.5 13.5 13 13 13 13
1 1 1 1 1 1
1,422.5 1,442.0 1,456.0 1,501.0 1,555.0 1,589.5
206
Indian River County, Florida
Capital Asset Statistics by Function/Program (Unaudited)
Last Ten Fiscal Years
Function/Program 2010 2011 2012 2013
General Government
Facilities Management
Total square footage maintained (A) 715,215 715,215 720,215 720,215
Number of facilities and sites maintained (A) 47 47 48 48
Vehicles 15 15 15 15
General government
Vehicles 26 31 31 30
Planning
Vehicles 7 7 6 5
GIS
Vehicles 1 1 1 1
Public Safety
Fire department
Vehicles 51 51 51 46
Fire stations 12 12 12 12
Advanced life support
Vehicles 17 18 18 19
E911 Center
Vehicles 1 1 1 1
Sheriff
Vehicles 288 298 295 274
Building department
Vehicles 9 9 9 9
Physical Environment
Solid waste
Vehicles 30 1 1 1
Telecommunications
Vehicles 1 1 1 1
Ag Extension
Vehicles 1 1 1 1
Utilities - Water and Sewer
Vehicles 81 81 85 79
Water treatment plants 2 2 2 2
Wastewater treatment facilities 6 6 6 6
Water main - miles 845 839 843 847
Force main - miles 226 229 223 225
Gravity sewer lines - miles 269 271 270 273
Transportation
Road and bridge
Miles maintained (paved & unpaved) 636 636 638 650
Bridges maintained 78 75 75 71
Vehicles 64 67 67 64
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 2019, the 2018 total square footage maintained was restated.
207
Schedule 20
2014 2015 2016 2017 2018 2019
720,215 720,215 760,801 881,874 909,559 903,452
48 48 66 55 56 54
16 15 15 14 14 17
30 28 26 28 28 26
6 6 6 6 6 6
1 1 1 1 1 1
47 58 60 57 58 70
12 12 13 13 14 14
19 17 19 18 18 18
1 1 1 1 1 1
293 282 323 321 311 311
10 16 25 19 19 19
1 2 2 2 2 2
1 1 1 1 2 2
1 1 1 2 2 3
80 81 81 83 83 85
2 2 2 2 2 2
6 6 6 6 6 6
852 857 859 860 866 879
225 221 223 222 222 223
269 268 267 271 273 282
650 650 653 653 660 702
72 72 72 72 72 72
64 67 63 56 56 77
Continued
208
Indian River County, Florida
Capital Asset Statistics by Function/Program (Unaudited)
Last Ten Fiscal Years
Function/Program 2010 2011 2012 2013
Transportation - continued:
Senior Resource Association
Vehicles 32 34 34 38
Engineering
Vehicles 16 16 13 13
Traffic engineering
Traffic signals operated 137 137 137 150
Beacons operated 48 53 46 45
Vehicles 1 1 1 1
Traffic operations
Vehicles 16 18 18 19
Human Services
Health department
Vehicles 15 15 17 17
Animal Control
Vehicles 7 7 7 7
Rental Assistance
Vehicles 2 2 2 2
Culture/Recreation
Libraries
Locations 4 4 4 4
Parks
Number of neighborhood parks 12 12 12 10
Number of County parks 47 47 47 40
Acreage 4,014 4,014 4,014 4,014
Picnic shelters maintained 69 69 69 69
Boat ramps maintained 8 8 8 8
Vehicles 24 25 24 22
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
209
Schedule 20
2014 2015 2016 2017 2018 2019
35 35 39 36 39 31
13 14 13 15 16 18
150 150 160 155 159 160
45 43 47 56 56 55
1 1 1 1 1 1
21 20 22 18 19 19
17 17 9 10 18 18
6 6 6 6 6 7
2 2 3 3 3 3
4 4 4 4 4 5
10 11 12 12 12 12
37 37 37 36 36 36
3,429 3,429 3,429 5,081 5,081 5,081
69 69 69 69 69 69
8 8 8 8 8 8
23 20 20 18 20 25
5 7 6 5 4 5
1 1 1 1 1 1
29 29 29 29 29 29
35 35 35 35 35 35
- - - - 3 3
36 36 36 36 36 36
2 2 1 1 1 1
210
Indian River County, Florida
Department of Utility Services
Historical Rate Structure (Unaudited)
Last Ten Fiscal Years
WATER RATES 2010 - February 2019
Billing charge per account $ 1.29
Service availability charge (per ERU) *
Single-family and commercial 7.76
Multi-family and 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
7,001-12,999 gallons 3.85
Greater than 13,000 gallons per month (per ERU) 7.70
Service availability charge where capacity is reserved
but lines are not available (per ERU)
Single-family and commercial 3.88
Multi-family and manufactured home 3.30
WATER RATES 2019 **
Service availability charge (per ERU)
Single-family and commercial $ 8.75
Multi-family and manufactured home 7.44
Volumetric charge - per 1,000 gallons (per ERU)
0-4,000 gallons 2.20
4,001-7,000 gallons 2.57
7,001-12,000 gallons 4.95
12,001 and over gallons per month (per ERU) 9.75
Service availability charge where capactity is reserved
but lines are not available (per ERU)
Single-family and commercial 4.38
Multi-family and manufactured home 3.72
*Formerly known as base facility charge
**The last change to the County's water rates occurred on March 1, 2019.
Source: Indian River County Resolution 2009-012 and 2018-126
211
Indian River County, Florida
Department of Utility Services
Historical Rate Structure (Unaudited)
Last Ten Fiscal Years
(Continued) Schedule 21
SEWER RATES 2010 - February 2019
Billing charge per account $ 1.29
Service availability charge (per ERU)*
Single-family and commercial 14.58
Multi-family and manufactured home 12.40
Volume charge - per 1,000 gallons
Single-family and manufactured home (1,000-12,000) 2.86
Multi-family and commercial (0-13,000) 2.86
Multi-family and commercial (>13,000) 4.29
Service availability charge where capacity is reserved
but lines are not available (per ERU)
Single-family and commercial 7.29
Multi-family and manufactured home 6.20
SEWER RATES 2019 **
Service availability charge (per ERU)
Single-family and commercial $ 15.60
Multi-family and manufactured home 13.26
Volumetric charge - per 1,000 gallons (per ERU)
Single-family and manufactured home (0-12,000) 2.86
Multi-family and commercial (>12,000) 4.29
Service availability charge where capacity is reserved
but lines are not available (per ERU)
Single-family and commercial 7.80
Multi-family and manufactured home 6.63
*Formerly known as base facility charge
**The last change to the County's sewer rates occurred on March 1, 2019.
Source: Indian River County Resolution 2009-012 and 2018-126
212
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 2010 through 2019 as set forth below:
Fiscal Year Water ERUs Wastewater ERUs
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
2019 69,957 49,217
Source: Indian River County Utilities Department
213
Indian River County, Florida
Top 10 High Volume Customers of Utility Services (Unaudited)
Fiscal Year 2019 Schedule 23
Below is a table depicting the ten highest volume customers of the utility system for the fiscal year ended
September 30, 2019:
Annual Water Annual Wastewater
Volume Volume
Customer (x 1,000 gals.) (x 1,000 gals.)
Vista Royale 1 30,795 1 30,795
MHC Village Green LLC 2 26,747 2 26,747
Acts, Inc. 3 26,264 3 26,195
City of Fellsmere - 4 23,226
IRC School Board 4 25,096 6 19,743
IRC Facilities Management 5 20,213 5 20,213
NHC FL1 LP/DBA Encore RV Park 6 19,467 7 19,467
Disney's Vero Beach Resort 7 19,157 8 19,157
Palms of Vero Beach, Ltd. 8 14,448 9 14,448
Lakewood Village MHC, LLC 9 13,515 10 13,515
Vista Gardens 10 13,180
Source: Indian River County Utilities Department
214
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:
Wastewater
Water Capacity Capacity Total
Fiscal Year Charges Charges Charges
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
2019 1,473,940 1,655,135 3,129,075
215
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)
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
2019 500,004 3,093,939 773,485 10,298,464
(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.
216
Rehmann Robson
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Vero Beach, FL 32963
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ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
March 13, 2020
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 Indian River County, Florida (the “County”), as of and for the year ended September 30,
2019, which collectively comprise the County’s fund financial statements and have issued our report
thereon dated March 13, 2020.
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.
217
The Honorable Board of County Commissioners
Indian River County, Florida
March 13, 2020
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.
218
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Suite 250
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Ph: 772.234.8484
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MANAGEMENT LETTER
March 13, 2020
The Honorable Board of County Commissioners
and Constitutional Officers
Indian River County, Florida
Report on the Financial Statements
We have audited the financial statements of 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 have issued our report thereon dated
March 13, 2020.
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 13, 2020, 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.
219
The Honorable Board of County Commissioners
Indian River County, Florida
March 13, 2020
Page 2
Financial Condition and Management
Section 10.554(1)(i)5a. 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.
220
Rehmann Robson
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Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
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INDEPENDENT ACCOUNTANTS’ REPORT
March 13, 2020
The Honorable Board of County Commissioners
and Constitutional Officers
Indian River County, Florida
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, 2019.
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, 2019.
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.
221
Rehmann Robson
5070 North Highway A1A,
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
CPAs & Consultants Wealth Advisors Corporate Investigators
Rehmann is an independent member of Nexia International.
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 13, 2020
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, 2019, and the related notes to the financial
statements, which collectively comprise the County’s basic financial statements. We issued our report
thereon dated March 13, 2020, 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.
222
Federal/State Agency CFDA/ Contract/
Pass-through Entity CSFA Grant Transfers to
Federal Program/State Project No. No. Expenditures Subrecipients
Department of Housing and Urban Development:
Passed through Florida
Dept. of Economic Opportunity:
CDBG NSP #1 Program Income
Expenditures 14.228 10DB-4X-10-40-01-F13 $10
Program Income
CDBG NSP Grant 14.228 19DB-ON-10-40-01-H03 19,853
Subtotal CFDA - 14.228 19,863
Direct Programs:
Continuum of Care:
Rental Assistance 14.267 FL0113L4H091705 100,384 $ 7,030
Rental Assistance 14.267 FL0380L4H091703 89,340 6,221
Rental Assistance 14.267 FL0360L4H091708 58,174
Rental Assistance 14.267 FL0119L4H091710 231,321 18,043
Homeless Management Information Systems 14.267 FL0116L4H091710 30,600 30,600
Rental Assistance 14.267 FL0114L4H091710 37,614 3,246
Rental Assistance 14.267 FL0338L4H091704 70,776 4,954
Rental Assistance 14.267 FL0440L4H091706 65,162
Homeless Management Information Systems 14.267 FL0418L4H091705 27,840 27,840
Homeless Management Information Systems 14.267 FL0418L4H091604 2,436 2,436
Rental Assistance 14.267 FL0113L4H091806 780
Rental Assistance 14.267 FL0114L4H091811 46,435
Homeless Management Information Systems 14.267 FL0116L4H091811 4,800 4,800
Rental Assistance 14.267 FL0119L4H091811 55,254
Rental Assistance 14.267 FL0338L4H091805 1,352
Rental Assistance 14.267 FL0360L4H091809 35,098
Rental Assistance 14.267 FL0380L4H091804 850
Rental Assistance 14.267 FL0440L4H091807 54,304
Subtotal CFDA - 14.267 912,520 105,170
Housing Voucher Cluster:
Section 8 Housing Choice Vouchers 14.871 FL-132 2,361,403
Total Department of Housing and Urban Development 3,293,786 105,170
U.S. Fish and Wildlife Service:
Passed through Florida Fish and Wildlife
Conservation Commission:
Florida Artificial Reef Program 15.605 FWC-18101 53,200
Total Fish and Wildlife Cluster 53,200
For the Fiscal Year Ended September 30, 2019
Indian River County, Florida
Schedule of Expenditures of Federal Awards and State Projects
223
Federal/State Agency CFDA/ Contract/
Pass-through Entity CSFA Grant Transfers to
Federal Program/State Project No. No. Expenditures Subrecipients
Department of Justice:
Passed through Office of the Attorney General:
Crime Victim Assistance Program 16.575 V-2018-IRCSO-00502 $ 46,817
Passed through Florida Department of Law
Enforcement:
2019 Local Solicitation Justice Assistance Program 16.738 2019-JAGC-INRI-4-N2-172 11,782
2017 Local Solicitation Justice Assistance Program 16.738 2017-DJ-BX-0706 2,173
Subtotal CFDA - 16.738 13,955
Direct Program:
State Criminal Alien Assistance Program 16.606 2017-AP-BX-0357 23,573 *
Total Department of Justice 84,345
Department of Transportation:
Passed through Florida Department of Transportation:
LAP - Indian River Blvd. 20.205 G0S17 105,822
Metropolitan Planning Organization 20.205 G0Y81 426,477
Passed through University of Florida:
Florida Safe Routes to School 20.205 G0N54 37,147
Total Highway Planning and Construction Cluster 569,446
Passed through Florida Department of Transportation:
Federal Transit Metropolitan Planning Grant 20.505 G0359 42,396
Section 5311 Non-Urbanized Public Transit 20.509 ARQ46/G1462 68,747 $ 68,747
Direct Programs:
Federal Transit Formula Section 5307 Grant 20.507 FL-2018-103-00 538,526 538,526
Federal Transit Formula Section 5307 Grant 20.507 FL-2018-003-00 13,077 13,077
Federal Transit Formula Section 5307 Grant 20.507 FL-2016-033-00 21,866 21,866
Federal Transit Formula Section 5307 Grant 20.507 FL-90-X888 3,341 3,341
Federal Transit Formula Section 5307 Grant 20.507 FL-2019-061-00 1,420,128 1,420,128
Subtotal CFDA - 20.507 1,996,938 1,996,938
Total Federal Transit Cluster 1,996,938 1,996,938
Total Department of Transportation 2,677,527 2,065,685
* Expenditures incurred in prior fiscal years
For the Fiscal Year Ended September 30, 2019
Indian River County, Florida
Schedule of Expenditures of Federal Awards and State Projects
224
Federal/State Agency CFDA/ Contract/
Pass-through Entity CSFA Grant Transfers to
Federal Program/State Project No. No. Expenditures Subrecipients
Elections Assistance Commission:
Passed through the Florida Dept. of State
Divison of Elections:
Elections Security Grant 90.401 19.e.es.000.100 $ 39,882
Elections Security Grant 90.401 19.e.es.000.355 32,201
Albert Network Monitoring Solution Grant 90.401 2018-2019-002-IND 8,318
Federal Elections Activities 2014/2015 90.401 N/A 6,086
Federal Elections Activities 2015/2016 90.401 N/A 16,418
Federal Elections Activities 2016/2017 90.401 N/A 9,507
Total Elections Assistance Commission 112,412
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 93.563 O0331 3,544
Child Support Enforcement-Title IV D 93.563 COC31 397,514
Total Department of Health and Human Services 401,058
Department of Homeland Security:
Passed through Division of Emergency Management:
Disaster Relief Funding - Hurricane Jeanne 97.036 05-PA-E=10-41-00-864 56,087 *
Disaster Relief Funding - Hurricane Matthew 97.036 FEMA4283DR 563,589 *
Disaster Relief Funding - Hurricane Irma 97.036 FEMA4337 66,864 *
Subtotal CFDA - 97.036 686,540
Emergency Management Performance Grant 97.042 19-FG-AF-10-40-01-079 43,580
Emergency Management Performance Grant 97.042 G0002 3,623
Subtotal CFDA - 97.042 47,203
Operation Stonegarden 97.067 17-DS-W1-10-53-02-250 44,453
Total Department of Homeland Security 778,196
TOTAL EXPENDITURES OF FEDERAL AWARDS:$ 7,400,524 $ 2,170,855
* Expenditures incurred in prior fiscal years
Indian River County, Florida
Schedule of Expenditures of Federal Awards and State Projects
For the Fiscal Year Ended September 30, 2019
225
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 19-BG-21-10-40-01-016 $ 91,155
Emergency Management Preparedness and Assistance 31.063 A0004 25,969
Subtotal CSFA - 31.063 117,124
Hazardous Materials Analysis Grant 31.067 19-CP-11-10-40-01-164 3,143
Total Division of Emergency Management 120,267
Department of Environmental Protection:
Direct Projects:
Wabasso Beach Restoration Post Construction Monitoring 37.003 17IR2 118,637
Hurricane Irma Recovery Project 37.003 19IR2 16,613
Sector 5 Beach Restoration 37.003 19IR3 201,915
Subtotal CSFA - 37.003 337,165
Osprey Acres Floway and Nature Preserve 37.039 NS027 1,140,725 *
West Wabasso Phase II Septic to Sewer 37.039 NS045 450,000
Red Tide Management 37.039 AB010 122,627
Subtotal CSFA - 37.039 1,713,352
Total Department of Environmental Protection 2,050,517
Department of Economic Opportunity:
Direct Project:
Growth Management Implementation: Living Shoreslines 40.024 P03037 13,500
Total Department of Economic Opportunity 13,500
Florida Housing Finance Corporation:
Direct Project:
State Housing Initiatives Partnership 40.901 N/A 1,019,239
Total Florida Housing Finance Corporation 1,019,239
Department of State:
Direct Project:
State Aid to Libraries 45.030 19-ST-21 86,869
Passed through the Division of Historical
Resources:
Jones Pier Fruit Stand 45.031 19.H.SM.100.020 26,034
Total Department of State 112,903
* Expenditures incurred in prior fiscal years
For the Fiscal Year Ended September 30, 2019
Indian River County, Florida
Schedule of Expenditures of Federal Awards and State Projects
226
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 Transportation:
Passed through the Senior Resource Association:
Transportation Disadvantaged Grant 55.001 G0Y13 $ 22,553 *
Direct Projects:
Transportation Disadvantaged Planning Grant 55.001 G1857 4,286
2017-2018 Highway Beautification Grant 55.003 G0X81 82,067
SCOP - CR512 Resurfacing 55.009 G0U52 536,178
SCOP - Restructuring 58th Ave 55.009 G0G81 1,240,307
Subtotal CSFA - 55.009 1,776,485
Fl Public Transit Block Grant 55.010 ARQ56/G1476 405,145 $ 405,145
FDOT Service Development Grant 55.012 G0G90/G1276 275,900 275,900
FDOT Service Development Grant 55.012 G1652 140,500 140,500
Subtotal CSFA - 55.012 416,400 416,400
Transit Corridor Grant 55.013 ARE86 61,567 126,374
Transit Corridor Grant 55.013 G1650 48,585
Subtotal CSFA - 55.013 110,152
Total Department of Transportation 2,817,088 947,919
Department of Health:
Direct Projects:
County Awards Grant-Emergency Medical Svc 64.005 C5031/C6031 146
County Awards Grant-Emergency Medical Svc 64.005 C7031 19,731
Subtotal CSFA - 64.005 19,877
Total Department of Health 19,877
Department of Revenue:
Direct Project:
Facilities for Retained Spring Training Franchise 73.016 N/A 500,004
Total Department of Revenue 500,004
TOTAL EXPENDITURES OF STATE FINANCIAL ASSISTANCE:$ 6,653,395 $ 947,919
* Expenditures incurred in prior fiscal years
For the Fiscal Year Ended September 30, 2019
Indian River County, Florida
Schedule of Expenditures of Federal Awards and State Projects
227
228
Indian River County, Florida
Notes to Schedule of Expenditures of Federal Awards and State Projects
For the Fiscal Year Ended September 30, 2019
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.
NOTE 2 – 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.
Rehmann Robson
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INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND
MAJOR STATE PROJECT AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE
UNIFORM GUIDANCE AND CHAPTER 10.550, RULES OF THE AUDITOR GENERAL
March 13, 2020
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, 2019. 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.
229
The Honorable Board of County Commissioners
Indian River County, Florida
March 13, 2020
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, 2019.
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.
230
INDIAN RIVER COUNTY, FLORIDA
Schedule of Findings and Questioned Costs
SECTION I - SUMMARY OF AUDITORS’ RESULTS
Financial Statements
yes Xno
yes X none reported
yes Xno
Federal Awards and State Projects
yes Xno
yes X none reported
yes Xno
CFDA Number Name of Federal Program or Cluster
CSFA Number Name of State Project
Wastewater Projects
Small County Outreach Program
(Federal and State)
Xyes no
2 CFR 200.516(a)?
between Type A and Type B programs: $ 750,000
Auditee qualified as low-risk auditee?
14.871 Housing Voucher Cluster
14.267 Continuum of Care Program (B, C)
Identification of major programs:
40.901
55.009
37.039 Statewide Surface Water Restoration and
Dollar threshold used to distinguish
State Housing Initiatives Partnership Program
For the Year Ended September 30, 2019
to be reported in accordance with
Type of auditors’ report issued: Unmodified
Internal control over financial reporting:
Material weakness(es) identified?
Significant deficiency(ies) identified?
Noncompliance material to financial statements
noted?
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: Unmodified
Any audit findings disclosed that are required
231
INDIAN RIVER COUNTY, FLORIDA
Schedule of Findings and Questioned Costs
For the Year Ended September 30, 2019
SECTION II – FINANCIAL STATEMENT FINDINGS
None noted.
SECTION III – FEDERAL AWARD AND STATE PROJECT FINDINGS AND QUESTIONED COSTS
None noted.
232
INDIAN RIVER COUNTY, FLORIDA
Summary Schedule of Prior Audit Findings
For the Year Ended September 30, 2019
None noted.
233
235
BOARD OF COUNTY COMMISSIONERS
Rehmann Robson
5070 North Highway A1A,
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INDEPENDENT AUDITORS’ REPORT
March 13, 2020
The Honorable Board of County Commissioners
Indian River County, Florida
Report on the Financial Statements
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, 2019, 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.
236
The Honorable Board of County Commissioners
Indian River County, Florida
March 13, 2020
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, 2019, 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, 2019, 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 13,
2020, 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.
237
238
Indian River County, Florida
Board of County Commissioners
Balance Sheet
Governmental Funds
September 30, 2019
General
Impact
Fees
Secondary
Roads
Construction
ASSETS
Cash and investments $ 52,894,269 $ 24,105,885 $ 8,663,583
Accounts receivable 696,484 - 29
Special assessments receivable - - -
Due from other funds 387,031 - -
Due from other governments 6,796,634 96,250 527,601
Interest receivable 122,792 50,184 17,889
Inventories 40,938 - -
Prepaids and other assets 26,373 - 1,968
Advances to other funds 275,000 - -
Total assets $ 61,239,521 $ 24,252,319 $ 9,211,070
LIABILITIES
Accounts payable $ 2,464,314 $ 297,185 $ 728,058
Retainage payable - 11,297 179,821
Due to other funds - - -
Due to other governments 425,893 160,648 -
Unearned revenues 309,439 - -
Other deposits 23,074 - -
Total liabilities 3,222,720 469,130 907,879
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - special assessments - - -
Unavailable revenue - ambulance services - - -
Unavailable revenue - state and federal grants 2,322,031 - 98,941
Total deferred inflows of resources 2,322,031 - 98,941
FUND BALANCES
Nonspendable:
Inventories 40,938 - -
Prepaid items 26,373 - 1,968
Advances to other funds 275,000 - -
Restricted for:
Transportation/road improvements - 14,435,162 8,202,282
Court-related costs and improvements - - -
Housing assistance - - -
Law enforcement/public safety - 1,418,502 -
Fire/emergency services - 922,796 -
Tourism-related activities - - -
Beach renourishment - - -
Boating related projects - - -
Library services - 437,539 -
Land acquisition - - -
Stormwater, street lighting, and other special assessments - - -
Debt service - - -
Capital projects - 1,646,426 -
Parks/recreational projects 1,001,230 4,922,764 -
Committed to:
Economic incentives 1,069,240 - -
Environmental conservation/preservation - - -
Law enforcement/public safety 18,353 - -
Library services 66,050 - -
Parks/recreational projects 156,978 - -
Assigned to:
Transportation/road improvements - - -
Unassigned 53,040,608 - -
Total fund balances 55,694,770 23,783,189 8,204,250
Total liabilities, deferred inflows and fund balances $ 61,239,521 $ 24,252,319 $ 9,211,070
The accompanying notes are an integral part of the financial statements.
239
Transportation
Emergency
Services
District
Optional
Sales
Tax
Other
Governmental
Funds
Total
Governmental
Funds
$ 9,098,217 $ 15,875,000 $ 86,217,568 $ 31,215,884 $ 228,070,406
2,787 2,077,219 - 6,780 2,783,299
165,805 - - - 165,805
- - 201,024 650,000 1,238,055
643,509 846,802 1,876,230 1,689,752 12,476,778
185,629 35,391 180,207 65,426 657,518
- 38,408 - - 79,346
490 11,453 - 20,259 60,543
- - - - 275,000
$ 10,096,437 $ 18,884,273 $ 88,475,029 $ 33,648,101 $ 245,806,750
$ 768,664 $ 1,951,502 $ 430,072 $ 1,050,882 $ 7,690,677
- - 444,063 3,465 638,646
- - - 941,024 941,024
115,051 - 57,761 2,269 761,622
- - - - 309,439
- - - - 23,074
883,715 1,951,502 931,896 1,997,640 10,364,482
333,007 - - - 333,007
- 2,076,391 - - 2,076,391
327,696 456,417 2,698 1,120,892 4,328,675
660,703 2,532,808 2,698 1,120,892 6,738,073
- 38,408 - - 79,346
490 11,453 - 20,259 60,543
- - - - 275,000
- - - 2,435 22,639,879
- - - 227,868 227,868
- - - 797,282 797,282
- - - 2,168,828 3,587,330
- 14,350,102 - - 15,272,898
- - - 1,059,237 1,059,237
- - - 17,439,249 17,439,249
- - - 2,006,514 2,006,514
- - - - 437,539
- - - 1,168,370 1,168,370
- - - 2,134,707 2,134,707
- - - 2,350,434 2,350,434
- - 87,540,435 - 89,186,861
- - - - 5,923,994
- - - - 1,069,240
- - - 1,314,916 1,314,916
- - - - 18,353
- - - - 66,050
- - - - 156,978
8,551,529 - - - 8,551,529
- - - (160,530) 52,880,078
8,552,019 14,399,963 87,540,435 30,529,569 228,704,195
$ 10,096,437 $ 18,884,273 $ 88,475,029 $ 33,648,101 $ 245,806,750
240
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, 2019
General
Impact
Fees
Secondary
Roads
Construction
REVENUES
Taxes $ 69,268,688 $ - $ 3,823,809
Permits, fees and special assessments 9,522,835 7,596,973 -
Intergovernmental 18,176,170 - 2,068,912
Charges for services 2,989,095 - -
Judgments, fines and forfeits 284,800 - -
Interest 2,227,954 650,158 278,168
Miscellaneous 4,371,883 54,277 45,460
Total revenues 106,841,425 8,301,408 6,216,349
EXPENDITURES
Current:
General government 11,114,259 125,026 -
Public safety 4,598,061 - -
Physical environment 622,707 - -
Transportation 4,213,412 3,543,808 8,548,703
Economic environment 449,702 - -
Human services 5,178,320 - -
Culture/recreation 10,457,693 249,804 -
Court related 252,484 - -
Debt service:
Principal - - -
Interest and other fiscal charges - - -
Capital projects - - -
Total expenditures 36,886,638 3,918,638 8,548,703
Excess of revenues over (under) expenditures 69,954,787 4,382,770 (2,332,354)
OTHER FINANCING SOURCES (USES)
Insurance recoveries 33,168 - -
Transfers in - - 157,880
Transfers out (11,340,382) - -
Transfers to constitutional officers (54,601,802) - -
Total other financing sources (uses) (65,909,016) - 157,880
Net change in fund balances 4,045,771 4,382,770 (2,174,474)
Fund balances at beginning of year 51,648,999 19,400,419 10,378,724
Fund balances at end of year $ 55,694,770 $ 23,783,189 $ 8,204,250
The accompanying notes are an integral part of the financial statements.
241
Transportation
Emergency
Services
District
Optional
Sales
Tax
Other
Governmental
Funds
Total
Governmental
Funds
$ - $ 32,490,883 $ 19,263,128 $ 7,840,255 $ 132,686,763
451,082 - - 521,818 18,092,708
3,556,213 100,439 1,643,971 5,973,935 31,519,640
100,536 7,030,662 - 889,096 11,009,389
500 7,150 - 318,482 610,932
237,473 672,898 2,360,213 961,873 7,388,737
566,353 24,446 - 316,965 5,379,384
4,912,157 40,326,478 23,267,312 16,822,424 206,687,553
353,031 - - 664,725 12,257,041
- 35,611,859 - 754,218 40,964,138
626,381 - - 104,535 1,353,623
13,773,513 - - 299,678 30,379,114
- - - 19,863 469,565
- - - 4,306,222 9,484,542
- - - 4,876,175 15,583,672
- - - 728,279 980,763
- - - 5,737,000 5,737,000
- - - 442,835 442,835
- - 13,393,105 - 13,393,105
14,752,925 35,611,859 13,393,105 17,933,530 131,045,398
(9,840,768) 4,714,619 9,874,207 (1,111,106) 75,642,155
15,661 41 60,801 - 109,671
11,101,166 - 1,725,000 512,204 13,496,250
(236,200) - (428,160) (1,725,000) (13,729,742)
- (732,705) (1,618,650) (468,450) (57,421,607)
10,880,627 (732,664) (261,009) (1,681,246) (57,545,428)
1,039,859 3,981,955 9,613,198 (2,792,352) 18,096,727
7,512,160 10,418,008 77,927,237 33,321,921 210,607,468
$ 8,552,019 $ 14,399,963 $ 87,540,435 $ 30,529,569 $ 228,704,195
242
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, 2019
Budgeted Amounts Actual
Variance with
Final Budget
Positive
Original Final Amounts (Negative)
REVENUES
Taxes $ 68,115,496 $ 68,115,496 $ 69,268,688 $ 1,153,192
Permits, fees and special assessments 8,838,800 8,838,800 9,522,835 684,035
Intergovernmental 13,569,998 18,203,653 18,176,170 (27,483)
Charges for services 2,780,801 2,795,801 2,989,095 193,294
Judgments, fines and forfeits 304,152 304,152 284,800 (19,352)
Interest 270,024 270,024 2,227,954 1,957,930
Miscellaneous 4,170,248 4,173,992 4,371,883 197,891
Total revenues 98,049,519 102,701,918 106,841,425 4,139,507
EXPENDITURES
General government 11,308,919 13,448,099 11,114,259 2,333,840
Public safety 4,359,607 5,055,027 4,598,061 456,966
Physical environment 527,257 911,829 622,707 289,122
Transportation 1,115,800 7,694,472 4,213,412 3,481,060
Economic environment 452,491 456,447 449,702 6,745
Human services 5,309,350 5,341,366 5,178,320 163,046
Culture/recreation 10,380,690 12,446,208 10,457,693 1,988,515
Court related 343,410 345,241 252,484 92,757
Total expenditures 33,797,524 45,698,689 36,886,638 8,812,051
Excess of revenues over (under) expenditures 64,251,995 57,003,229 69,954,787 12,951,558
OTHER FINANCING SOURCES (USES)
Insurance recoveries - - 33,168 33,168
Transfers out (12,298,843) (12,298,843) (11,340,382) 958,461
Transfers to constitutional officers (55,637,724) (55,757,482) (54,601,802) 1,155,680
Total other financing sources (uses) (67,936,567) (68,056,325) (65,909,016) 2,147,309
Net change in fund balances (3,684,572) (11,053,096) 4,045,771 $ 15,098,867
Fund balances at beginning of year 3,684,572 11,053,096 51,648,999
Fund balances at end of year $ - $ - $ 55,694,770
- - - -
The accompanying notes are an integral part of the financial statements.
243
Indian River County, Florida
Board of County Commissioners
Statement of Revenues, Expenditures, and
Changes in Fund Balances - Budget and Actual
Impact Fees Fund
For the Year Ended September 30, 2019
Budgeted Amounts Actual
Variance
with Final
Budget
Positive
Original Final Amounts (Negative)
REVENUES
Permits, fees and special assessments $ 4,056,975 $ 4,056,975 $ 7,596,973 $ 3,539,998
Interest 42,750 42,750 650,158 607,408
Miscellaneous - - 54,277 54,277
Total revenues 4,099,725 4,099,725 8,301,408 4,201,683
EXPENDITURES
General government 591,331 595,149 125,026 470,123
Public safety 175,000 175,000 - 175,000
Transportation 5,618,500 9,193,500 3,543,808 5,649,692
Culture/recreation 905,302 2,000,262 249,804 1,750,458
Total expenditures 7,290,133 11,963,911 3,918,638 8,045,273
Excess of revenues over (under) expenditures (3,190,408) (7,864,186) 4,382,770 12,246,956
OTHER FINANCING SOURCES (USES)
Transfers to constitutional officers - (200,000) - 200,000
Total other financing sources (uses) - (200,000) - 200,000
Net change in fund balances (3,190,408) (8,064,186) 4,382,770 $ 12,446,956
Fund balances at beginning of year 3,190,408 8,064,186 19,400,419
Fund balances at end of year $ - $ - $ 23,783,189
- - - -
The accompanying notes are an integral part of the financial statements.
244
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, 2019
Budgeted Amounts Actual
Variance
with Final
Budget
Positive
Original Final Amounts (Negative)
REVENUES
Taxes $ 3,678,875 $ 3,678,875 $ 3,823,809 $ 144,934
Intergovernmental - 4,626,720 2,068,912 (2,557,808)
Interest 33,250 33,250 278,168 244,918
Miscellaneous - - 45,460 45,460
Total revenues 3,712,125 8,338,845 6,216,349 (2,122,496)
EXPENDITURES
Transportation 8,584,725 16,900,766 8,548,703 8,352,063
Total expenditures 8,584,725 16,900,766 8,548,703 8,352,063
Excess of revenues over (under) expenditures (4,872,600) (8,561,921) (2,332,354) 6,229,567
OTHER FINANCING SOURCES (USES)
Transfers in - 157,881 157,880 (1)
Total other financing sources (uses) - 157,881 157,880 (1)
Net change in fund balances (4,872,600) (8,404,040) (2,174,474) $ 6,229,566
Fund balances at beginning of year 4,872,600 8,404,040 10,378,724
Fund balances at end of year $ - $ - $ 8,204,250
--- -
The accompanying notes are an integral part of the financial statements.
245
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, 2019
Budgeted Amounts Actual
Variance
with Final
Budget
Positive
Original Final Amounts (Negative)
REVENUES
Permits, fees and special assessments $ 251,750 $251,750 $ 451,082 $ 199,332
Intergovernmental 2,883,250 3,005,878 3,556,213 550,335
Charges for services 92,150 92,150 100,536 8,386
Judgments, fines and forfeits - - 500 500
Interest 35,150 35,150 237,473 202,323
Miscellaneous 387,875 387,875 566,353 178,478
Total revenues 3,650,175 3,772,803 4,912,157 1,139,354
EXPENDITURES
General government 367,987 375,559 353,031 22,528
Physical environment 945,550 1,006,107 626,381 379,726
Transportation 14,304,147 15,453,136 13,773,513 1,679,623
Total expenditures 15,617,684 16,834,802 14,752,925 2,081,877
Excess of revenues over (under) expenditures (11,967,509) (13,061,999) (9,840,768) 3,221,231
OTHER FINANCING SOURCES (USES)
Insurance recoveries - - 15,661 15,661
Transfers in 11,101,166 11,101,166 11,101,166 -
Transfers out (78,319) (236,200) (236,200) -
Total other financing sources (uses) 11,022,847 10,864,966 10,880,627 15,661
Net change in fund balances (944,662) (2,197,033) 1,039,859 $ 3,236,892
Fund balances at beginning of year 944,662 2,197,033 7,512,160
Fund balances at end of year $ - $ - $ 8,552,019
- - - -
The accompanying notes are an integral part of the financial statements.
246
Indian River County, Florida
Board of County Commissioners
Statement of Revenues, Expenditures, and
Changes in Fund Balances - Budget and Actual
Emergency Services District Fund
For the Year Ended September 30, 2019
Budgeted Amounts Actual
Variance
with Final
Budget
Positive
Original Final Amounts (Negative)
REVENUES
Taxes $ 32,072,106 $ 32,072,110 $ 32,490,883 $ 418,773
Intergovernmental 47,500 67,231 100,439 33,208
Charges for services 5,954,426 5,954,426 7,030,662 1,076,236
Judgments, fines and forfeits 4,750 4,750 7,150 2,400
Interest 47,500 47,500 672,898 625,398
Miscellaneous 32,029 32,029 24,446 (7,583)
Total revenues 38,158,311 38,178,046 40,326,478 2,148,432
EXPENDITURES
Public safety 38,056,065 40,425,153 35,611,859 4,813,294
Total expenditures 38,056,065 40,425,153 35,611,859 4,813,294
Excess of revenues over (under) expenditures 102,246 (2,247,107)4,714,619 6,961,726
OTHER FINANCING SOURCES (USES)
Insurance recoveries - - 41 41
Transfers to constitutional officers (613,508) (642,726) (732,705) (89,979)
Total other financing sources (uses) (613,508) (642,726) (732,664) (89,938)
Net change in fund balances (511,262) (2,889,833) 3,981,955 $ 6,871,788
Fund balances at beginning of year 511,262 2,889,833 10,418,008
Fund balances at end of year $ - $ - $ 14,399,963
- - - -
The accompanying notes are an integral part of the financial statements.
247
Indian River County, Florida
Board of County Commissioners
Statement of Fund Net Position
Proprietary Funds
September 30, 2019
Enterprise Funds
Solid Waste
Disposal
District
Golf
Course
County
Utilities
County
Building Total
Internal
Service Funds
ASSETS
Current assets:
Cash and investments $ 16,726,829 $ 652,899 $ 46,874,074 $ 8,357,836 $ 72,611,638 $ 31,821,311
Accounts receivable - net 114,108 1,391 3,275,289 - 3,390,788 1,504,719
Due from other governments 1,202,783 16,335 1,201,078 20,531 2,440,727 486,318
Interest receivable 62,762 2,708 767,784 28,359 861,613 105,577
Inventories - 117,001 1,418,448 - 1,535,449 267,146
Prepaids and other assets - 1,238 - 112 1,350 1,219,522
Current restricted assets:
Cash and investments 8,828,425 - 37,021,624 - 45,850,049 -
Total current assets 26,934,907 791,572 90,558,297 8,406,838 126,691,614 35,404,593
Non-current assets:
Capital assets - non-depreciable 17,695,668 6,606,283 16,606,326 - 40,908,277 -
Capital assets - depreciable 32,005,334 5,023,190 450,656,380 543,577 488,228,481 3,954,309
Capital assets - accumulated depreciation (15,890,013) (2,275,913) (293,456,037) (403,590) (312,025,553) (2,535,803)
Non-current restricted assets:
Special assessments receivable - - 1,816,553 - 1,816,553 -
Impact fees receivable - - 295,992 - 295,992 -
Liens receivable - - 2,665,632 - 2,665,632 -
Total non-current assets 33,810,989 9,353,560 178,584,846 139,987 221,889,382 1,418,506
Total assets 60,745,896 10,145,132 269,143,143 8,546,825 348,580,996 36,823,099
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions 193,148 158,013 2,340,923 501,615 3,193,699 434,500
Deferred outflows related to other postemployment benefits 14,508 4,269 181,224 43,261 243,262 32,444
Deferred amounts on refundings - - 243,329 - 243,329 -
Total deferred outflows of resources 207,656 162,282 2,765,476 544,876 3,680,290 466,944
LIABILITIES
Current liabilities (payable from current assets):
Accounts payable 1,406,229 181,544 2,633,285 226,962 4,448,020 5,760,847
Retainage payable 215,088 - 155,264 - 370,352 -
Due to other funds - 297,031 - - 297,031 -
Claims payable - - - - - 2,600,000
Due to other governments 1,514 8,560 1,607 27,175 38,856 -
Other deposits - 1,000 - - 1,000 -
Unearned revenues - 54,662 - 907,962 962,624 -
Accrued compensated absences 51,101 26,364 614,969 123,833 816,267 119,501
Total current liabilities (payable from current assets) 1,673,932 569,161 3,405,125 1,285,932 6,934,150 8,480,348
Current liabilities (payable from restricted assets):
Accounts payable - - 70,062 - 70,062 -
Retainage payable - - 80,991 - 80,991 -
Accrued interest payable - - 4,364 - 4,364 -
Closure and maintenance costs payable 1,250,481 - - - 1,250,481 -
Notes payable - - 1,042,000 - 1,042,000 -
Customer deposits 173,743 - 3,305,017 - 3,478,760 -
Total current liabilities (payable from restricted assets) 1,424,224 - 4,502,434 - 5,926,658 -
Total current liabilities 3,098,156 569,161 7,907,559 1,285,932 12,860,808 8,480,348
Non-current liabilities:
Accrued compensated absences 8,804 50,159 161,862 - 220,825 50,818
Advance from other funds - 275,000 - - 275,000 -
Claims payable - - - - - 5,654,000
Closure and maintenance costs payable 6,904,201 - - - 6,904,201 -
Net pension liability 537,834 462,980 6,880,392 1,485,099 9,366,305 1,263,230
Net other postemployment benefits liability 14,296 4,200 176,025 41,292 235,813 30,656
Notes payable - - 2,132,000 - 2,132,000 -
Total non-current liabilities 7,465,135 792,339 9,350,279 1,526,391 19,134,144 6,998,704
Total liabilities 10,563,291 1,361,500 17,257,838 2,812,323 31,994,952 15,479,052
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions 35,388 36,957 546,603 97,163 716,111 93,796
Deferred inflows related to other postemployment benefits 48,315 14,202 598,102 141,229 801,848 105,258
Total deferred inflows of resources 83,703 51,159 1,144,705 238,392 1,517,959 199,054
NET POSITION
Net investment in capital assets 33,159,606 9,329,044 169,611,496 139,987 212,240,133 1,418,506
Unrestricted (deficit) 17,146,952 (434,289) 83,894,580 5,900,999 106,508,242 20,193,431
Total net position $ 50,306,558 $ 8,894,755 $ 253,506,076 $ 6,040,986 $ 318,748,375 $ 21,611,937
The accompanying notes are an integral part of the financial statements.
248
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, 2019
Enterprise Funds
Solid Waste
Disposal
District
Golf
Course
OPERATING REVENUES
Charges for services $ 15,837,635 $ 3,306,251
Total operating revenues 15,837,635 3,306,251
OPERATING EXPENSES
Personal services 722,794 647,555
Material, supplies, services and other operating 12,865,875 1,968,516
Depreciation 1,142,536 240,790
Total operating expenses 14,731,205 2,856,861
Operating income (loss) 1,106,430 449,390
NONOPERATING REVENUES (EXPENSES)
Intergovernmental 6,996 1,340
Interest income 891,881 25,321
Insurance recoveries 843 -
Gain on disposal of assets 4,015 6,394
Interest expense - (13,414)
Loss on disposal of assets - -
Total nonoperating revenues (expenses) 903,735 19,641
Income (loss) before transfers and capital contributions 2,010,165 469,031
Capital grants and contributions - -
Transfers - -
Change in net position 2,010,165 469,031
Total net position - beginning 48,296,393 8,425,724
Total net position - ending $ 50,306,558 $ 8,894,755
The accompanying notes are an integral part of the financial statements.
249
Enterprise Funds
County
Utilities
County
Building Total
Internal
Service Funds
$ 34,050,737 $ 3,555,314 $ 56,749,937 $ 31,225,469
34,050,737 3,555,314 56,749,937 31,225,469
9,880,711 2,742,924 13,993,984 3,045,212
20,519,600 1,848,745 37,202,736 31,623,018
14,385,959 83,753 15,853,038 195,556
44,786,270 4,675,422 67,049,758 34,863,786
(10,735,533) (1,120,108) (10,299,821) (3,638,317)
- - 8,336 -
2,660,446 235,604 3,813,252 901,447
- - 843 735,121
28,111 - 38,520 8,163
(288,802) - (302,216) -
(1,119) - (1,119) (569)
2,398,636 235,604 3,557,616 1,644,162
(8,336,897) (884,504) (6,742,205) (1,994,155)
13,990,806 - 13,990,806 1,115
190,160 - 190,160 43,332
5,844,069 (884,504) 7,438,761 (1,949,708)
247,662,007 6,925,490 311,309,614 23,561,645
$ 253,506,076 $ 6,040,986 $ 318,748,375 $ 21,611,937
250
Indian River County, Florida
Board of County Commissioners
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2019
Enterprise Funds
Solid Waste
Disposal Golf
District Course
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $ 15,855,961 $ 3,311,841
Cash paid to suppliers for goods and services (18,795,850) (1,900,306)
Cash paid to employees for services (670,440) (594,049)
Net cash provided by (used in) operating activities (3,610,329) 817,486
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Transfers - -
Operating grants 311,834 15,299
Insurance recoveries 683,622 -
Net cash provided by (used in) noncapital financing activities 995,456 15,299
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Principal payments - bonds/notes - -
Interest paid on long-term debt - (13,414)
Payments on advances from other funds - (340,218)
Proceeds from sales of capital assets 4,015 6,394
Purchase of capital assets (4,627,830) (158,461)
Bond paying agent and arbitrage fees - -
Capital grants and contributions - -
Net cash provided by (used in) capital and related financing activities (4,623,815) (505,699)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest and dividends on investments 890,427 24,266
Net cash provided by investing activities 890,427 24,266
Net increase (decrease) in cash and investments (6,348,261) 351,352
Cash and investments at beginning of year 31,903,515 301,547
Cash and investments at end of year $ 25,555,254 $ 652,899
Classified as:
Current assets $ 16,726,829 $ 652,899
Restricted assets 8,828,425 -
Totals $ 25,555,254 $ 652,899
The accompanying notes are an integral part of the financial statements.
251
Enterprise Funds
County County Internal
Utilities Building Total Service Funds
$ 34,608,104 $ 4,463,354 $ 58,239,260 $ 31,927,060
(15,480,477) (1,770,753) (37,947,386) (26,976,960)
(9,139,330) (2,529,180) (12,932,999) (2,894,309)
9,988,297 163,421 7,358,875 2,055,791
190,160 - 190,160 43,332
22,676 8,766 358,575 -
141,890 - 825,512 -
354,726 8,766 1,374,247 43,332
(14,545,000) - (14,545,000) -
(745,282) - (758,696) -
- - (340,218) -
28,111 - 38,520 8,163
(5,138,787) (7,458) (9,932,536) (1,000,800)
(12,050) - (12,050) -
3,744,549 - 3,744,549 -
(16,668,459) (7,458) (21,805,431) (992,637)
2,631,469 232,850 3,779,012 901,430
2,631,469 232,850 3,779,012 901,430
(3,693,967) 397,579 (9,293,297) 2,007,916
87,589,665 7,960,257 127,754,984 29,813,395
$ 83,895,698 $ 8,357,836 $ 118,461,687 $ 31,821,311
$ 46,874,074 $ 8,357,836 $ 72,611,638 $ 31,821,311
37,021,624 - 45,850,049 -
$ 83,895,698 $ 8,357,836 $ 118,461,687 $ 31,821,311
Continued
252
Indian River County
Board of County Commissioners
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2019
Enterprise Funds
Solid Waste
Disposal Golf
District Course
RECONCILIATION OF NET OPERATING INCOME (LOSS) TO NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
Operating income (loss) $ 1,106,430 $ 449,390
Adjustments to reconcile operating income to net cash
provided by operating activities:
Depreciation 1,142,536 240,790
Work in progress reclassified as expense - -
(Increase) decrease in assets:
Accounts receivable 60,638 206
Due from other governments (54,326) (199)
Inventories - (8,794)
Liens receivable - -
Impact fees receivable - -
Special assessments receivable - -
Prepaid items - (1,178)
Increase (decrease) in liabilities:
Accounts payable 30,521 79,976
Due to other governments 1,514 (1,794)
Retainage payable - -
Customer deposits 10,500 -
Closure and maintenance costs payable (5,960,496) -
Net pension liability 62,214 54,706
Net OPEB liability (10,132) (2,994)
Unearned revenues - 5,583
Claims payable - -
Accrued compensated absences 272 1,794
Total adjustments (4,716,759) 368,096
Net cash provided by (used in) operating activities $ (3,610,329) $ 817,486
NONCASH CAPITAL AND RELATED
FINANCING ACTIVITIES
Change in fair value of investments $ 266,220 $ 9,931
Capital grants and contributions $ - $ -
Capital assets purchased through accounts payable $ 436,295 $ 24,516
The accompanying notes are an integral part of the financial statements.
253
Enterprise Funds
County County Internal
Utilities Building Total Service Funds
$ (10,735,533) $ (1,120,108) $ (10,299,821) $ (3,638,317)
14,385,959 83,753 15,853,038 195,556
16,387 - 16,387 -
(525,265) 78 (464,343) 707,911
(260,477) - (315,002) (6,320)
(11,546) - (20,340) (11,562)
5,072,491 - 5,072,491 -
377,756 - 377,756 -
819,269 - 819,269 -
11,113 (112) 9,823 (60,508)
(22,369) 80,270 168,398 4,903,128
(47,920) (2,166) (50,366) -
20,967 - 20,967 -
146,084 - 156,584 -
- - (5,960,496) -
842,037 253,148 1,212,105 164,118
(132,178) (33,160) (178,464) (25,560)
- 907,962 913,545 -
- - - (185,000)
31,522 (6,244) 27,344 12,345
20,723,830 1,283,529 17,658,696 5,694,108
$ 9,988,297 $ 163,421 $ 7,358,875 $ 2,055,791
$ 1,056,275 $ 101,358 $ 1,433,784 $ 370,962
$ 10,111,339 $ - $ 10,111,339 $ 1,115
$ 1,096,610 $ - $ 1,557,421 $ -
254
Indian River County, Florida
Board of County Commissioners
Statement of Fiduciary Net Position
Fiduciary Funds
September 30, 2019
Agency
Other
Postemployment
Benefits Trust
ASSETS
Cash $ 2,836,719 $ 146,224
Investments, at fair value:
Index funds - 15,116,359
U.S. government securities funds - 12,201,259
Primary money market fund - 3,044,003
Total assets $ 2,836,719 $ 30,507,845
- -
LIABILITIES
Due to other governments 708,241 -
Other deposits held in escrow 2,128,478 -
Total liabilities $ 2,836,719 -
NET POSITION
Net position restricted for OPEB 30,507,845
Total net position $ 30,507,845
The accompanying notes are an integral part of the financial statements.
255
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, 2019
ADDITIONS
Employer contributions $ 2,178,500
Net appreciation in fair value of investments 1,049,800
Less investment expense (2,782)
Net investment income 1,047,018
Total additions 3,225,518
DEDUCTIONS
Benefit payments 2,238,521
Total deductions 2,238,521
Change in net position 986,997
Net position - beginning 29,520,848
Net position - ending $ 30,507,845
The accompanying notes are an integral part of the financial statements.
256
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2019
257
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.
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2019
258
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 collectible 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.
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2019
259
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued
B. Fund Financial Statements – Continued
Governmental Funds - 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.
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2019
260
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.
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2019
261
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 market value based upon the custodian bank's valuation. 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.
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2019
262
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, 2019, the allowance for water and sewer was $424,493
and for ambulance services was $176,678. No other allowances for doubtful accounts are maintained
since other accounts receivable are considered collectible as reported at September 30, 2019.
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, 2019.
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.
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2019
263
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
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2019
264
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, 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 Notes 12 and 13.
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2019
265
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. 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.
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2019
266
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued
N. Landfill Closure Costs
Under the terms of current state and federal regulations, the Solid Waste Disposal District (SWDD) is
required to place a final cover on closed landfill areas, and to perform certain monitoring and
maintenance functions for a period of up to thirty years after closure. The SWDD recognizes these costs
of closure and post-closure maintenance over the active life of each landfill area, based on landfill
capacity used during the period. Required obligations for closure and post-closure costs are recognized
in the Solid Waste Disposal District Enterprise Fund.
O. Unearned Revenues
In governmental fund financial statements, unearned revenues represent revenues which are available
but not earned. In the Board's Building Fund, a proprietary fund, revenue was previously considered
earned on receipt but has been changed in the current fiscal year to reflect future performance
obligations.
P. Accrued Compensated Absences
The Board does not report compensated absences in the governmental fund statements since they are not
current liabilities payable from available spendable resources. They are reported in the government-wide
financial statements of the County. Proprietary fund types accrue compensated absences in the period
they are earned.
Q. Obligation for Bond Arbitrage Rebate
Pursuant to Section 148(f) of the U.S. Internal Revenue Code, the Board must rebate to the United States
Government the excess of interest earned from the investment of certain debt proceeds and pledged
revenues over the yield rate of the applicable debt. The Board has no arbitrage liability outstanding as
of September 30, 2019.
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2019
267
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued
R. Budgets and Budgetary Accounting
The Board uses the following procedures in establishing the budgetary data reflected in the financial
statements:
1. The constitutional officers submit, at various times, to the Board and to certain divisions within the
Florida Department of Revenue and the Florida Clerks of Court Operations Corporation, a proposed
operating budget for the following fiscal year. The operating budget includes proposed expenditures
and the means of financing them, as set forth in Chapter 129 of the Florida Statutes.
2. The Department of Revenue, State of Florida, has the final authority on the operating budgets for the
Tax Collector and the Property Appraiser included in the General Fund.
3. Constitutional officers, all departments controlled by the Board, and outside state and local agencies
submit their proposed budgets to the Office of Management and Budget for assistance, review, and
compilation. The County Administrator then reviews all County departments, state agencies, and
nonprofit organization’s budgets and makes the budget recommendation to the Board.
4. On or before July 15 of each year, the County Administrator and the Director of the Office of
Management and Budget, as the Board’s designated budget officer, submit to the Board a tentative
budget for the ensuing fiscal year. The tentative budget includes proposed expenditures and the
means of financing them. The Board then holds workshops to review the tentative budget by fund on
a departmental level.
5. During September, public hearings are held pursuant to Section 200.065 of the Florida Statutes in
order for the Board to receive public input on the tentative budget. At the end of the last public
hearing, the Board enacts resolutions to legally adopt the budgets at the fund level for all
governmental and proprietary fund types. The budgets legally adopted by the Board set forth the
anticipated revenues by source and the appropriations by function.
6. Formal budgetary integration on an object level is used as a management control device for the
governmental and proprietary funds of the Board. Management is authorized to transfer budgeted
amounts between objects and departments in any fund as long as management does not exceed the
total appropriations of a fund. Board approval to amend the budget is only required when
unanticipated revenues are received that management wishes to have appropriated, thereby
increasing the total appropriations of a fund.
7. Budgets for the governmental and proprietary fund types are adopted on a basis consistent with
generally accepted accounting principles.
8. Appropriations for the Board lapse at the close of the fiscal year.
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2019
268
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, 2019, the carrying value of the Board’s deposits was $103,631,203 and the bank
balance was $105,454,414. 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, 2019, accrued interest for the Board’s portfolio totaled $966,407 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.
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2019
269
NOTE 2 - CASH AND INVESTMENTS - Continued
C. Investments
As of September 30, 2019, the Board had the following investments:
Weighted
Average
Maturity Portfolio Credit
Investment Type Fair Value In Years Percentage Risks*
Fixed Rate Debt Instruments:
U.S. Treasuries $ 92,014,521 0.96 33.15 % N/A
U.S. Agencies:**
Federal Farm Credit Bureau 48,973,290 0.82 17.65 AA+
Federal Home Loan Bank 38,980,870 0.82 14.04 AA+
Federal Home Loan Mortgage 44,017,080 1.13 15.86 AA+
Federal National Mortgage Assoc. 28,960,030 0.94 10.43 AA+
Other Market Rate Investments:
Florida CLASS 23,470,667 0.21 8.46 AAAm
W&S Sinking Fund Reserve:
U.S. Treasuries 1,142,462 1.22 0.41 N/A
Total Fair Value $ 277,558,920 100.00 %
Weighted Average Maturity of Investments 0.86
* 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 custodial bank
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.
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2019
270
NOTE 2 - CASH AND INVESTMENTS - Continued
C. Investments – Continued
Fair Value Measurement - 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, 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.
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2019
271
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, 2019, 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 FLCLASS which was held by Wells Fargo
Bank, N.A.
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, 2019 was $2,178,500. The cash balance in the OPEB Trust at September 30, 2019 was
$146,224. 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 December 4, 2018). 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, 2019, the annual money-weighted rate of return on investments,
net of investment expense, was 3.45%. The money-weighted rate of return expresses investment
performance, net of investment expense, adjusted for the changing amounts actually invested.
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2019
272
NOTE 2 - CASH AND INVESTMENTS - Continued
D. OPEB Trust - Continued
As of September 30, 2019, the OPEB Trust had the following investments:
Weighted
Average
Maturity Portfolio
Investment Type Fair Value In Years Percentage
Vanguard 500 Index $ 6,781,765 N/A 22.34 %
Vanguard All World Ex-US 6,081,081 N/A 20.03
Vanguard Mid Cap Index 1,507,343 N/A 4.96
Vanguard Small Cap Index 746,170 N/A 2.46
Vanguard Short Term Treasury 9,149,265 2.10 30.13
Vanguard Intermediate Treasury 3,051,994 5.50 10.05
Vanguard Prime Money Market 3,044,003 0.13 10.03
Total Fair Value $ 30,361,621 100.00 %
The Board has the following recurring fair value measurements for investments in the OPEB Trust as of
September 30, 2019:
Level 1 Level 2 Level 3 Total
Index Funds $ 15,116,359 $ - $ - $ 15,116,359
U.S. Government Securities Funds 12,201,259 - - 12,201,259
Money Market Fund 3,044,003 - - 3,044,003
Total investments $ 30,361,621 $ - $ - $ 30,361,621
Investments classified as Level 1 of the fair value hierarchy are valued using quoted prices in active
markets from the Board's custodian bank.
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2019
273
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 10/1/2018 $ 134,781,655 $ 246,831,232 $ 48,798,540 $ 4,068,565 $ 420,681,875 $ 36,022,705 $ 891,184,572
Additions 2,422,721 7,492,309 5,122,150 316,188 17,531,111 18,596,010 51,480,489
Deletions - - (2,423,543) - (172,902) (23,586,712) (26,183,157)
Balance 9/30/2019 $ 137,204,376 $ 254,323,541 $ 51,497,147 $ 4,384,753 $ 438,040,084 $ 31,032,003 $ 916,481,904
Depreciation expense, which includes amortization expense on intangible assets, for governmental fund
type capital assets is not reported in the financial statements of the Board. Depreciation expense is
reported in the financial statements of the County. Please refer to the County Notes for a more detailed
explanation of the County’s policy on depreciation.
In accordance with GASB Statement 42, Accounting and Financial Reporting for Impairment of Capital
Assets and for Insurance Recoveries, the Board wrote down the value of the Sector 3 Beach Restoration
asset in the amount of $202,362. This impairment was caused by Hurricane Dorian erosion damage that
occurred in September 2019. The impairment amount is included as a culture and recreation program
expense on the Statement of Activities.
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2019
274
NOTE 4 – CAPITAL ASSETS - Continued
B. Proprietary Fund Type Capital Assets
Enterprise Funds
A summary of changes in the Enterprise fund type capital assets is as follows:
Buildings
And Construction
Land Improvements Equipment Intangibles In Progress Total
Balance 10/1/2018 $ 19,794,538 $ 462,183,287 $ 18,285,847 $ 3,141,078 $ 9,224,523 $ 512,629,273
Additions 1,012,684 11,250,964 1,808,021 231,079 8,615,618 22,918,366
Deletions - - (684,816) (45,791) (5,680,274) (6,410,881)
20,807,222 473,434,251 19,409,052 3,326,366 12,159,867 529,136,758
Less:
Accumulated Depreciation - (296,068,839) (14,782,502) (1,174,212) - (312,025,553)
Balance 9/30/2019 $ 20,807,222 $ 177,365,412 $ 4,626,550 $ 2,152,154 $ 12,159,867 $ 217,111,205
Internal Service Funds
A summary of changes in the Internal Service fund type capital assets is as follows:
Buildings
And
Improvements Equipment Intangibles Total
Balance 10/1/2018 $ 13,815 $ 965,200 $ 2,038,612 $ 3,017,627
Additions - 927,128 115,311 1,042,439
Deletions - (105,757) - (105,757)
13,815 1,786,571 2,153,923 3,954,309
Less:
Accumulated Depreciation (5,673) (819,679) (1,710,451) (2,535,803)
Balance 9/30/2019 $ 8,142 $ 966,892 $ 443,472 $ 1,418,506
NOTE 5 – RESTRICTED CASH AND INVESTMENTS
Solid Waste
Disposal County
District Utilities Total
Sinking funds $ - $ 1,233,660 $ 1,233,660
Renewal and
replacement - 3,485,928 3,485,928
Customer deposits 173,743 3,305,017 3,478,760
Capital construction 500,000 28,997,019 29,497,019
Closure and maintenance cost 8,154,682 - 8,154,682
Total $ 8,828,425 $ 37,021,624 $ 45,850,049
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2019
275
NOTE 6 - INTERFUND BALANCES
Interfund balances at September 30, 2019, consisted of the following:
Receivable Fund Payable Fund Amount
General Fund Nonmajor Governmental Funds $ 90,000
Tourist Development Nonmajor Fund Nonmajor Governmental Funds 650,000
General Fund Golf Course Enterprise Fund 297,031
Optional Sales Tax Fund Nonmajor Governmental Funds 201,024
$ 1,238,055
In January 2016, the General Fund loaned $254,500 to the Golf Course Fund to purchase new golf carts
at an interest rate of 2.0%. In September 2017, the General Fund loaned $1,100,000 to the Golf Course
Fund for a new irrigation system at an interest rate of 1.5%. 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
2020. 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 are expected
to be repaid within the next twelve months.
Interfund advance at September 30, 2019, consisted of the following:
Receivable Fund Payable Fund Amount
General Fund Golf Course Fund $ 275,000
This amount is considered a long-term advance between major funds expected to be paid in fiscal years
2021 and 2022. This amount has been presented as nonspendable on the General Fund Balance Sheet.
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2019
276
NOTE 7 - INTERFUND TRANSFERS
Interfund transfers for the year ended September 30, 2019, consisted of the following:
Transfers In:
Secondary
Roads Optional Nonmajor Internal
Construction Transportation Sales Tax Governmental Utilities Service
Fund Fund Fund Funds Fund Funds Total
Transfers Out:
General Fund $ - $ 11,101,166 $ - $ 195,884 $ - $ 43,332 $ 11,340,382
Transportation
Fund 157,880 - - - 78,320 - 236,200
Optional Sales
Tax Fund - - - 316,320 111,840 - 428,160
Nonmajor
Governmental
Funds
- - 1,725,000 - - - 1,725,000
Total $ 157,880 $ 11,101,166 $ 1,725,000 $ 512,204 $ 190,160 $ 43,332 $ 13,729,742
i
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) transfer petition paving assessments received in the
transportation fund to the fund that paid project costs, 5) use unrestricted stormwater revenues to offset
Egret Marsh employee costs accounted for in the utilities fund and petition paving assessments and 6)
use capital project fund revenues for improvements to the Jackie Robinson Training Complex and
subsidize the North Sebastian Septic to Sewer incentive program, and 7) use nonmajor governmental
fund revenues for improvements at the Jackie Robinson Training Complex.
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2019
277
NOTE 8 – ACCOUNTS PAYABLE
Accounts payable at September 30, 2019, were as follows:
Total
Salaries and Accounts
Governmental Funds: Vendors Benefits Payable
General $ 1,893,121 $ 571,193 $ 2,464,314
Impact Fees 297,185 - 297,185
Secondary Roads Construction 701,553 26,505 728,058
Transportation 432,017 336,647 768,664
Emergency Services 870,929 1,080,573 1,951,502
Optional Sales Tax 430,072 - 430,072
Other Governmental 1,010,768 40,114 1,050,882
Total Governmental Funds $ 5,635,645 $ 2,055,032 $ 7,690,677
Proprietary Funds:
Payable from current assets:
Solid Waste $ 1,379,685 $ 26,544 $ 1,406,229
Golf Course 159,342 22,202 181,544
Utilities 2,278,443 354,842 2,633,285
Building 117,949 109,013 226,962
Other Proprietary 5,695,380 65,467 5,760,847
Payable from restricted assets:
Utilities 70,062 - 70,062
Total Proprietary Funds $ 9,700,861 $ 578,068 $ 10,278,929
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, 2019 were $278,008 for
governmental funds and $43,413 for proprietary funds.
The Board has not engaged in any short-term debt activity during fiscal year 2019 other than that listed
in Note 6.
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2019
278
NOTE 9 - LONG-TERM LIABILITIES
A. Governmental Long-Term Debt
Changes in Long-Term Liabilities
Balance Balance
October 1, September 30,
2018 Additions Deletions 2019
Accrued Compensated Absences: $ 4,130,913 $ 2,805,891 $ 2,818,249 $ 4,118,555
Bonds Payable:
Spring Training Facility
Revenue Bonds - 2001 Series 5,665,000 - 1,510,000 4,155,000
Notes From Direct Borrowings
And Direct Placements:
Limited General Obligation
Refunding - 2015 Series 11,495,000 - 4,227,000 7,268,000
Grand Total $ 21,290,913 $ 2,805,891 $ 8,555,249 $ 15,541,555
Of the $4,118,555 liability for accrued compensated absences, management estimates that $2,938,439
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).
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2019
279
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 from direct borrowings and direct placements
outstanding at September 30, 2019, are as follows:
Fiscal Year Spring Training Facility Limited General
Ending Revenue Bonds Obligation Refunding Note
September 30 Series 2001 Series 2015
Principal Interest Principal Interest
2020 $ 290,000 $ 209,237 $ 4,298,000 $ 120,649
2021 305,000 194,013 2,970,000 49,302
2022 305,000 178,000 - -
2023 320,000 162,750 - -
2024 340,000 146,750 - -
2025-2029 1,960,000 462,000 - -
2030-2031 635,000 40,750 - -
Total 4,155,000 1,393,500 7,268,000 169,951
Less:
Current portion 290,000 - 4,298,000 -
Total $ 3,865,000 $ 1,393,500 $ 2,970,000 $ 169,951
Spring Training Facility Revenue Bonds, Series 2001
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 the “Jackie Robinson Training Complex”; (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
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2019
280
NOTE 9 - LONG-TERM LIABILITIES - Continued
A. Governmental Long-Term Debt – Continued
Spring Training Facility Revenue Bonds, Series 2001 - 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.
On February 26, 2019, the Board elected a partial redemption of the bonds outstanding and maturing on
2021 and 2031. The principal amount of the redeemed bonds totaled $1,125,000. The net economic gain
was $91,579 and will be amortized over the remaining life of the debt. The unamortized balance as of
September 30, 2019 is $87,333 and is reflected as a deferred outflow of resources on the government-
wide Statement of Net Position.
The current principal and interest payments of $1,762,018 represent 18.24% of total pledged revenues.
All three pledged revenue sources totaled $9,660,773 for the current fiscal year. The Board applied
100% of the state subsidy and none of the Half-Cent Sales Tax to the debt service payments. The Board
also applied 100% of the Fourth-Cent Tourist Tax up to the day of the partial payoff. The total
principal and interest remaining to be paid on the bonds is $5,548,500.
Bonds Issued - At September 30, 2019, Spring Training Facility Revenue Bonds consisted of the
following:
Outstanding at
Interest Rates September 30,
Description and Date Maturity Issue 2019
Spring Training Facility 3.30%-5.25%
Revenue Bonds, 2001 Series 4/1 and 10/1 2031 $ 16,810,000 $ 4,155,000
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2019
281
NOTE 9 - LONG-TERM LIABILITIES - Continued
A. Governmental Long-Term Debt – Continued
Spring Training Facility Revenue Bonds, Series 2001 - 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, 2020 $ 290,000
April 1, 2021 305,000
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 180,000
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.
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2019
282
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 included 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 $163,594 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 ½ 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 $4,744,345 of which 100% is pledged for payment of this note and the 2006 bond. Total principal
and interest paid on this note was $4,417,817 and represents 93% 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
Balance
October 1,
Balance
September 30,
2018 Additions Deletions 2019
Accrued Compensated Absences $ 1,167,722 $ 944,007 $ 904,318 $ 1,207,411
Notes From Direct Borrowings And
Direct Placements:
Water & Sewer Revenue
Refunding Note Series 2015 4,199,000 - 1,025,000 3,174,000
Bonds Payable:
Water & Sewer Revenue
Refunding Series 2009 13,520,000 - 13,520,000 -
Grand Total $ 18,886,722 $ 944,007 $ 15,449,318 $ 4,381,411
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2019
283
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 from direct borrowings and direct placements
outstanding at September 30, 2019 are as follows:
Fiscal Year Water and Sewer
Ending Revenue Refunding
September 30 Note Series 2015
Principal Interest
2020 $ 1,042,000 $ 52,371
2021 1,058,000 35,178
2022 1,074,000 17,721
Total 3,174,000 105,270
Less:
Current portion 1,042,000 -
Total $ 2,132,000 $ 105,270
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, 2019 is $243,329 and is reflected as a deferred outflow of
resources on the Statement of Net Position.
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2019
284
NOTE 9 - LONG-TERM LIABILITIES - Continued
B. Proprietary Funds Long-Term Debt - Continued
Water and Sewer Revenue Refunding Note, Series 2015 - Continued
Pledge of Revenues – The note is collateralized, for the remaining term of the note, by a pledge of all net
revenues derived from the operation of the system, certain surcharges, and special assessments. Annual
principal and interest payments of $1,094,284 represent approximately eleven percent of net revenues of
$9,721,760 of the utility system. The total principal and interest remaining to be paid on the 2015 note
is $3,279,270. 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
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 Board elected to redeem 100% of the outstanding bonds in the amount of $11,315,000, at par, on
September 1, 2019 in addition to the regularly scheduled debt payment of $2,205,000, which was due
and payable on September 1, 2019.
At the time of the early call, $3,151,995 of debt service reserve was released from restricted cash to
operating cash. In addition, $869,445 in unamortized bond premium and $452,340 in unamortized net
economic gain was charged to bond amortization expense.
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2019
285
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 $14.0 million. These costs will
be recognized in future periods as the remaining capacity is filled. The Board’s policy is to fund 100%
of the current year’s allocation (based upon the consulting engineers’ report) of both closure and post-
closure care. Required closure and post-closure sub-accounts:
Capacity Estimated
Used Closing Amount
Closure Costs
Class I - Segment III, Cell I 71% 2021 $ 5,981,893
Construction and Demolition 93% 2027 954,866
Post-closure Costs
Class I - Segments I and II N/A N/A 1,163,435
Construction and Demolition N/A N/A 54,488
Total account balance at 9/30/19 $ 8,154,682
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, 2019, $8,144,664 was on deposit at the Florida Cooperative Liquid Assets Securities
System (FLCLASS) and $10,018 was on deposit in the Board’s operating account.
A summary of changes in the landfill closure liability account is as follows:
Balance Balance
10/1/2018 Deposits Withdrawals 9/30/2019
Closure and long-term care costs $ 14,115,178 $ 1,495,000 $ (7,455,496) $ 8,154,682
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2019
286
NOTE 10 - PROVISION FOR CLOSURE COSTS - Continued
Of the $8,154,682 liability for closure and long-term care costs, management estimates that $1,250,481
will be due and payable within one year.
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 $1,615,300 at September 30, 2019 for the two sites. Of the $1,615,300 liability for
pollution remediation, management estimates that $74,273 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 $1,600,000 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 $15,300 and will be paid from the
General Fund.
Total governmental funds liability: $1,615,300
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.
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2019
287
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.
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2019
288
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, 2019 were:
Regular Class 8.47%, Special Risk 25.48%, Special Risk Administrative Support 38.59%, Senior
Management 25.41%, DROP 14.60%, and Elected Official Class 48.82%. 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.
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2019
289
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,
2019, was $5,952,034. Employee contributions for September 30, 2019 were $1,086,076. 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, 2019, the Division of Retirement calculated the
Board’s liability of $64,262,397 for the FRS plan for its proportionate share of the net pension liability.
The net pension liability was measured as of June 30, 2019, and the total pension liability used to
calculate the net pension liability was determined by an actuarial valuation as of July 1, 2019. 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, 2019, the Board’s proportionate share was 0.186599% for the FRS
Pension Plan. This was an increase of 0.003761% from its proportionate share measured as of June 30,
2018.
For the year ended September 30, 2019, the Board's calculated total increase of actuarially determined
pension expense was $11,566,151. Of this amount, the Board recognized $1,306,975 in the enterprise
funds and $176,960 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 $ 3,811,587 $ 39,881
Changes in assumptions 16,505,350 -
Net difference between projected and actual
earnings on pension plan investments - 3,555,331
Changes in proportion and differences between
Board contributions and proportionate share of
contributions 2,682,389 634,651
Board contributions subsequent to the measure-
ment date 1,447,174 -
Total $ 24,446,500 $ 4,229,863
Deferred outflows related to pensions recognized by enterprise funds were $3,193,699 and $434,500 for
internal service funds. Deferred inflows related to pensions recognized by the enterprise funds were
$716,111 and $93,796 for the internal service funds.
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2019
290
NOTE 12 - RETIREMENT PLAN - Continued
Pension Plan - Continued
The deferred outflows of resources related to pensions totaling $1,447,174 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, 2020. Other amounts reported as deferred outflows of
resources and deferred inflows of resources related to pensions will be recognized in pension expense as
follows:
Fiscal Year Ending September 30:
Amount
Recognized
2020 $ 6,806,923
2021 2,053,440
2022 4,961,303
2023 3,742,624
2024 965,207
Thereafter 239,966
Total $ 18,769,463
Actuarial Assumptions: The total pension liability in the July 1, 2019 actuarial valuation was
determined using the following actuarial assumption, applied to all periods included in the measurement:
Valuation date: July 1, 2019
Measurement date: June 30, 2019
Discount rate: 6.90%
Long-term expected rate of return: 6.90%, net of pension plan investment expense,
including inflation
Inflation: 2.60%
Salary increase: 3.25%, including inflation
Mortality: PUB-2010 base table, projected generationally
with Scale MP-2018
Actuarial cost method: Individual Entry Age
The actuarial assumptions that determined the total pension liability used in the July 1, 2019 valuation
were based on the results of an actuarial experience study for the period July 1, 2013 through June 30,
2018.
The following changes in actuarial assumptions occurred in 2019:
The long-term expected rate of return was decreased from 7.00% to 6.90%, and the active member
mortality assumption was changed from the Generational RP-2000 with Projections Scale BB tables
to the PUB-2010 base table, projected generationally with Scale MP-2018.
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2019
291
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
Target
Allocation
Annual
Arithmetic
Return
Compound
Annual
(Geometric)
Return
Standard
Deviation
Cash 1% 3.3% 3.3% 1.2%
Fixed Income 18% 4.1% 4.1% 3.5%
Global Equity 54% 8.0% 6.8% 16.5%
Real Estate (Property) 10% 6.7% 6.1% 11.7%
Private Equity 11% 11.2% 8.4% 25.8%
Strategic Investments 6% 5.9% 5.7% 6.7%
Total 100%
Assumed inflation-mean 2.6% 1.7%
Discount Rate for Pension Plan: The discount rate used to measure the total pension liability was 6.90%.
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.
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2019
292
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 6.90%. 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 Current Discount 1% Increase
(5.90%) Rate (6.90%) (7.90%)
Board’s proportionate share of NPL $111,088,285 $64,262,397 $25,154,860
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.
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2019
293
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, 2019, 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, 2019, 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 $787,554 for the fiscal year ended September 30, 2019.
Pension Liabilities, Pension Expense, and Deferred Outflow of Resources and Deferred Inflow of
Resources Related to HIS Program: At September 30, 2019, the Division of Retirement calculated the
Board’s liability of $15,565,320 for its proportionate share of the HIS Program’s net pension liability.
The net pension liability was measured as of June 30, 2019, and the total pension liability used to
calculate the net pension liability was determined by an actuarial valuation as of July 1, 2019. At June
30, 2019, the Board’s proportional share was 0.139113% for the HIS Program. This was an increase of
0.002615% from its proportionate share measured as of June 30, 2018.
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2019
294
NOTE 12 - RETIREMENT PLAN - Continued
Retiree Health Insurance Subsidy (HIS Program) - Continued
For the year ended September 30, 2019, the Board's calculated total actuarially determined pension
expense was $792,965. Of this amount, the Board recognized $89,605 in the enterprise funds and
$12,135 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 $ 189,058 $ 19,059
experience
Changes in assumptions 1,802,314 1,272,182
Net difference between projected and actual
earnings on pension plan investments 10,044 -
Changes in proportion and differences between
Board contributions and proportionate share of
contributions 1,041,354 101,430
Board contributions subsequent to the measure-
ment date 185,343 -
Total $ 3,228,113 $ 1,392,671
The deferred outflows of resources related to the HIS Program totaling $185,343 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, 2020. Other amounts reported as deferred outflows of
resources and deferred inflows of resources related to HIS Program will be recognized in pension
expense as follows:
Fiscal Year Ending September 30:
Amount
Recognized
2020 $ 703,209
2021 562,799
2022 308,075
2023 (223,712)
2024 40,636
Thereafter 259,092
Total $ 1,650,099
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2019
295
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, 2019 actuarial
valuation was determined using the following actuarial assumption, applied to all periods included in the
measurement:
Valuation date: July 1, 2019
Measurement date: June 30, 2019
Discount rate: 3.50%
Long-term expected rate of return: N/A
Municipal bond rate: 3.50%
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,
2019 valuation were based on the results of an actuarial experience study for the period July 1, 2013
through June 30, 2018.
The following changes in actuarial assumptions occurred in 2019:
The municipal rate used to determine the total pension liability was decreased from 3.87% to 3.50%
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.
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2019
296
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 3.50%. 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
(2.50%) Rate (3.50%) (4.50%)
Board’s proportionate share of NPL $ 17,768,611 $15,565,320 $ 13,730,228
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.
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2019
297
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, 2019, 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 2018-2019 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 $881,021 for fiscal year ended
September 30, 2019. Employee contributions totaled $204,300 for the same period.
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2019
298
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, 2018 range from $364 for single coverage Medicare participants to $875
for family coverage. Life insurance is available to retirees at a flat rate of $.70 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.
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2019
299
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.
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2019
300
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 254-255
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, 2019, the Board contributed $2.2 million to the qualifying
OPEB Trust. The average employer’s contribution was $1,578 per employee, approximately 2.63% of
current payroll. Plan members receiving benefits contributed $2.2 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, 2019, were as follows:
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2019
301
NOTE 13 – OTHER POSTEMPLOYMENT BENEFITS PLAN (OPEB) – Continued
C. Net OPEB Liability - Continued
Total OPEB liability $ 33,207,465
Plan fiduciary net position (30,507,845)
County's net OPEB liability $ 2,699,620
Plan fiduciary net position as a percentage of the total
OPEB liability 91.87%
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 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.
Healthcare Cost Trend Rates Based on the Getzen Model, with trend starting at 7.0% and
gradually decreasing to an ultimate trend rate of 4.39%
(including the impact of the excise tax).
Aging Factors Based on the 2013 SOA Study "Health Care Costs - From
Birth to Death".
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2019
302
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
Increase(Decrease)
Plan
Total OPEB Fiduciary Net OPEB
Liability Net Position Liability
(a) (b) (a)-(b)
Balances at 9/30/2018 $ 32,974,379 $ 29,520,848 $ 3,453,531
Changes for the year:
Service cost 528,585 - 528,585
Interest 1,943,022 - 1,943,022
Contributions - employer - 2,178,500 (2,178,500)
Net investment income - 1,047,018 (1,047,018)
Benefit payments (2,238,521) (2,238,521) -
Net changes 233,086 986,997 (753,911)
Balances at 9/30/2019 $ 33,207,465 $ 30,507,845 $ 2,699,620
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2019
303
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 2.75%; 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 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:
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2019
304
NOTE 13 - OTHER POSTEMPLOYMENT BENEFITS PLAN (OPEB) - Continued
G. Sensitivity of Net OPEB Liability - Continued
Sensitivity of Net OPEB Liability
to the Single Discount Rate Assumption
Current Single Discount
1% Decrease Rate Assumption 1% Increase
(5.00%) (6.00%) (7.00%)
$ 5,280,961 $ 2,699,620 $ 379,224
Regarding the sensitivity of the net OPEB liability to changes in the healthcare cost trend rates, the
following presents the plan's net OPEB liability, calculated using the assumed trend rates as well as what
the plan's net OPEB liability would be if it were calculated using a trend rate that is one percent lower or
one percent higher:
Sensitivity of Net OPEB Liability
to the Healthcare Cost Trend Rate Assumption
Current Healthcare Cost
1% Decrease Trend Rate Assumption 1% Increase
(6% down to 3.39%) (7% down to 4.39%) (8% down to 5.39%)
$(331,749) $ 2,699,620 $ 6,189,812
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2019
305
NOTE 13 - OTHER POSTEMPLOYMENT BENEFITS (OPEB) - Continued
H. OPEB Expense and Deferred Outflows and Inflows of Resources Related to OPEB
For the year ended September 30, 2019, the Board recognized OPEB Expense of ($124,247). At
September 30, 2019, the Board 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 $ 2,148,784 $ -
Changes of assumptions - 9,291,425
Net difference between projected and actual earnings on
OPEB plan investments 726,405 -
$ 2,875,189 $ 9,291,425
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2019
306
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
2020 $ (826,404)
2021 (826,404)
2022 (826,406)
2023 (875,889)
2024 (1,020,377)
Thereafter (2,040,756)
Total $ (6,416,236)
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 $686,782 and lease expenditures totaled $96,612 for the year
ended September 30, 2019. 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
2020 $ 724,207
2021 689,000
2022 632,461
2023 604,851
2024 535,945
2025-2029 1,984,350
2030-2034 1,021,262
2035-2039 583,481
2040-2044 509,760
2045-2048 115,281
Total future minimum receipts: $ 7,400,598
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2019
307
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
$32,231,874, and a carrying value of $20,748,460. Current year depreciation on property being leased is
$645,147.
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, 2019:
Year Amount
2020 $ 55,325
2021 19,559
2022 19,559
2023 19,559
2024 19,559
2025-2029 25,559
2030-2034 7,500
2035-2039 6,000
2040-2044 4,500
2045-2049 3,900
2050-2054 3,000
2055-2059 1,500
2060-2064 1,500
2065-2069 1,500
2070-2074 1,500
2075-2077 600
Total future minimum lease payments: $ 190,620
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2019
308
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.
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2019
309
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, 2019, reserve amounts for those funds were:
Budget
Disaster Relief Stabilization Total
General Fund $ 6,800,000 $ 6,800,000 $ 13,600,000
Transportation Fund 900,000 900,000 1,800,000
Emergency Services District Fund 2,100,000 2,100,000 4,200,000
Total $ 9,800,000 $ 9,800,000 $ 19,600,000
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.
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2019
310
NOTE 15 - FUND BALANCE - Continued
D. Fund Balance Deficit
The Federal/State Grants Fund, a nonmajor Governmental Fund, had a deficit in fund balance of $3,180
at September 30, 2019. This deficit will be eliminated by grant proceeds in fiscal year 2020. The Jackie
Robinson Training Complex Fund, a nonmajor Governmental Fund, had a deficit in fund balance of
$157,350 at September 30, 2019. This deficit will be eliminated by tourist tax collections in future fiscal
years.
NOTE 16 - RISK MANAGEMENT
General Liability, Property, Worker’s Compensation and Medical
The Board is exposed to various risks of loss related to torts, theft of, damage to and destruction of
assets, errors or omissions, injuries to employees, and natural disasters. The Board established a Self
Insurance Fund (an internal service fund) to account for and finance its uninsured risk of loss. Under
this program, the Self Insurance Fund provides coverage as follows:
10/01/15 to
9/30/2019
Worker’s Compensation $ 650,000
General Liability 200,000
Auto Liability 200,000
Property Damage 200,000
Error or Omissions 200,000
Annual Aggregate 2,000,000
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 $41,832 in fiscal
year 2019, three workers compensation reimbursements totaling $1,685 in fiscal year 2018, and three
workers compensation reimbursements totaling $37,643 in fiscal year 2017.
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.
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2019
311
NOTE 16 - RISK MANAGEMENT - Continued
General Liability, Property, Worker’s Compensation and Medical - Continued
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 eight medical claim reimbursements totaling
$670,688 in excess of the $300,000 limit for fiscal year 2019. In fiscal year 2018 there were eleven
medical claim reimbursements totaling $471,549 and in fiscal year 2017 there were three totaling
$61,593.
The claims liability of $8,254,000 reported at September 30, 2019, 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, $2,600,000 will be liquidated over the next
twelve months.
Changes in the fund’s claims liability amount during the current and prior three fiscal years are as
follows:
Balance at Claims Balance
Fiscal Year and Changes Claims at Fiscal
Beginning in Estimates Payments Year End
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
2018-2019 8,439,000 25,995,950 (26,180,950) 8,254,000
Included in the charges to other funds is an amount to fund future catastrophic losses not actuarially
determined; and at September 30, 2019, unrestricted net position of $19,927,761 has been designated for
this purpose. The Board has elected to accrue the larger of the discounted liability or undiscounted
liability. At September 30, 2019, the undiscounted liability was the greater of the two amounts. The
discount rate used in the calculation was 2%.
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2019
312
NOTE 17 - 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 $3,783,727. 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.
B. Contracts and Other Commitments
The Board has various contracts and commitments outstanding at September 30, 2019. 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 49th
Street milling and resurfacing, CR512 resurfacing and shoulder widening from Myrtle Street to 125th
Avenue, Courthouse renovations, 45th Street beautification - Phase II, Sector 5 beach restoration, 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 the north county
offices at Sebastian Corners renovation, 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,
Countywide meter replacement program, landfill closure, expansion & gas system, and various other
water and sewer projects. In the Internal Service Funds, contracts are for benefit administration services.
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2019
313
NOTE 17 - COMMITMENTS AND CONTINGENCIES - Continued
B. Contracts and Other Commitments - Continued
A summary of these projects at September 30, 2019, is as follows:
Remaining
Total Total Paid as of Balance at
Contract Price September 30, 2019 September 30, 2019
General $ 1,283,598 $ (618,728) $ 664,870
Special Revenue 18,870,598 (7,937,558) 10,933,040
Capital Projects 21,839,878 (14,693,242) 7,146,636
Enterprise 42,427,275 (18,220,564) 24,206,711
Internal Service 209,636 (84,640) 124,996
Total $ 84,630,985 $ (41,554,732) $ 43,076,253
C. Grants
Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor
agencies. If any expenditures are disallowed as a result of these audits, the claims for reimbursement to
the grantor agency would become a liability of the Board. In the opinion of management, any such
adjustments would not be significant.
NOTE 18 - SUBSEQUENT EVENTS
On March 3, 2020, the Board of County Commissioners approved a Federally-Funded Subaward and
Grant Agreement with the Florida Division of Emergency Management for reimbursement of
expenditures related to Hurricane Dorian. This agreement will allow the County to receive
reimbursements from the Federal Emergency Management Agency. Hurricane Dorian impacted Indian
River County on September 3, 2019 causing approximately $8.9 million in expenditures.
Rehmann Robson
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Suite 250
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rehmann.com
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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 13, 2020
The Honorable Board of County Commissioners
Indian River County, Florida
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial statements contained in Government Auditing
Standards issued by the Comptroller General of the United States, the fund financial statements of the
major fund and the aggregate remaining fund information of the Indian River County, Florida Board
of County Commissioners (the “Board”), as of and for the year ended September 30, 2019, which
collectively comprise the Board’s fund financial statements and have issued our report thereon dated
March 13, 2020.
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.
314
The Honorable Board of County Commissioners
Indian River County, Florida
March 13, 2020
Page 2
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.
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.
315
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Suite 250
Vero Beach, FL 32963
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rehmann.com
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MANAGEMENT LETTER
March 13, 2020
The Honorable Board of County Commissioners
Indian River County, Florida
Report on the Financial Statements
We have audited the financial statements of each major fund and the aggregate remaining fund
information of the Indian River County, Florida Board of County Commissioners (the “Board”), as of
and for the year ended September 30, 2019, and have issued our report thereon dated March 13, 2020.
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 13, 2020, 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.
316
The Honorable Board of County Commissioners
Indian River County, Florida
March 13, 2020
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.
317
Rehmann Robson
5070 North Highway A1A,
Suite 250
Vero Beach, FL 32963
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Fx: 772.234.8488
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INDEPENDENT ACCOUNTANTS’ REPORT
March 13, 2020
The Honorable Board of County Commissioners
Indian River County, Florida
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, 2019.
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, 2019.
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.
318
319
CLERK OF THE CIRCUIT COURT AND
COMPTROLLER
Rehmann Robson
5070 North Highway A1A,
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
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INDEPENDENT AUDITORS’ REPORT
March 13, 2020
The Honorable Jeffrey R. Smith
Clerk of the Court and Comptroller
Indian River County, Florida
Report on the Financial Statements
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, 2019, 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.
320
The Honorable Jeffrey R. Smith
Clerk of the Circuit Court and Comptroller
March 13, 2020
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, 2019 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, 2019, 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 13,
2020, 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.
321
322
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Balance Sheet
Governmental Funds
September 30, 2019
Nonmajor Fund
Total
Governmental
General Special Revenue Funds
ASSETS
Cash $417,662 $1,390,471 $1,808,133
Accounts receivable 23,762 - 23,762
Prepaid items 52,146 50,336 102,482
Due from other governments 206,685 - 206,685
Total assets $700,255 $1,440,807 $2,141,062
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $102,840 $13,482 $116,322
Due to other governments 203,116 181 203,297
Other deposits held in escrow 158,664 13,381 172,045
Unearned revenues 235,635 - 235,635
Total liabilities 700,255 27,044 727,299
Fund Balances:
Nonspendable:
Prepaid items 52,146 50,336 102,482
Restricted for:
Court-related costs and improvements - 1,363,427 1,363,427
Unassigned (52,146) - (52,146)
Total fund balances - 1,413,763 1,413,763
Total liabilities fund balances $700,255 $1,440,807 $2,141,062
The accompanying notes are an integral part of the financial statements.
323
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, 2019
Nonmajor Fund
Total
Governmental
General Special Revenue Funds
REVENUES
Intergovernmental $ 200,711 $ - $ 200,711
Charges for services 3,348,080 443,722 3,791,802
Judgments, fines and forfeits 1,470,395 - 1,470,395
Interest 76,907 20,980 97,887
Miscellaneous 23,635 9,366 33,001
Total revenues 5,119,728 474,068 5,593,796
EXPENDITURES
General government 2,080,950 750,449 2,831,399
Court related 3,878,172 - 3,878,172
Total expenditures 5,959,122 750,449 6,709,571
Excess of revenues over
(under) expenditures (839,394) (276,381) (1,115,775)
OTHER FINANCING SOURCES (USES)
Transfers from Board of County Commissioners 1,041,315 - 1,041,315
Transfer to Board of County Commissioners (201,921) - (201,921)
Total other financing sources (uses) 839,394 - 839,394
Net change in fund balances - (276,381) (276,381)
Fund balances at beginning of year - 1,690,144 1,690,144
Fund balances at end of year $ - $ 1,413,763 $ 1,413,763
The accompanying notes are an integral part of the financial statements.
324
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Statement of Revenues, Expenditures, and
Changes in Fund Balances - Budget and Actual
General Fund
For the Year Ended September 30, 2019
Budgeted Amount
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES
Intergovernmental $ 130,646 $ 130,646 $ 200,711 $ 70,065
Charges for services 3,143,725 3,168,725 3,348,080 179,355
Judgments, fines and forfeits 879,000 879,000 1,470,395 591,395
Interest 23,831 23,831 76,907 53,076
Miscellaneous 31,559 31,559 23,635 (7,924)
Total revenues 4,208,761 4,233,761 5,119,728 885,967
EXPENDITURES
General government 2,052,244 2,074,145 2,080,950 (6,805)
Court related 3,197,832 3,200,931 3,878,172 (677,241)
Total expenditures 5,250,076 5,275,076 5,959,122 (684,046)
Excess of revenues over
(under) expenditures (1,041,315) (1,041,315) (839,394) 201,921
OTHER FINANCING SOURCES (USES)
Transfers from Board
of County Commissioners 1,041,315 1,041,315 1,041,315 -
Transfers to Board
of County Commissioners - - (201,921) (201,921)
Total other financing sources (uses) 1,041,315 1,041,315 839,394 (201,921)
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.
325
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Statement of Fiduciary Net Position
Agency Fund
September 30, 2019
ASSETS
Cash $ 4,222,044
Total assets $ 4,222,044
-
LIABILITIES
Due to other governments $ 1,139,472
Escrow deposits 3,082,572
Total liabilities $ 4,222,044
The accompanying notes are an integral part of the financial statements.
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Notes To Financial Statements
Year Ended September 30, 2019
326
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).
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Notes To Financial Statements
Year Ended September 30, 2019
327
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.
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Notes To Financial Statements
Year Ended September 30, 2019
328
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 Note 6.
H. Transfer In
The non-court operations (finance function and board meeting recordings) were funded by the Board of
County Commissioners in the amount of $1,041,315.
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 $201,921 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.
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Notes To Financial Statements
Year Ended September 30, 2019
329
NOTE 2 - CASH
A. Deposits
At September 30, 2019, the carrying value of the Clerk’s deposits was $6,030,177 and the bank balance
was $6,679,429. 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.
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Notes To Financial Statements
Year Ended September 30, 2019
330
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, 2019 were: regular class 8.47%, senior management class
25.41%, DROP class 14.60%, and elected official class 48.82%. 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.
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Notes To Financial Statements
Year Ended September 30, 2019
331
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, 2019, the Clerk's actuarial contribution to FRS under the Pension Plan
was $260,827 and the Health Insurance Subsidy (HIS Program) was $59,504. Employee contributions
for both plans were $88,831. Both employer and employee contributions were equal to 100% of the
required contribution for each year.
Pension Liabilities: At September 30, 2019, the Division of Retirement calculated the Clerk's liability
of $2,820,971 for the FRS plan and $1,180,047 for the HIS Program, for a total of $4,001,018 for its
proportionate share of the net pension liability. The net pension liability was measured as of June 30,
2019, and the total pension liability used to calculate the net pension liability was determined by an
actuarial valuation as of July 1, 2019. 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, 2019, the Clerk's
proportion was .008191% for the FRS Pension Plan and .010546% for the HIS Program.
Discount Rate for Pension Plan: The discount rate used to measure the total pension liability was
6.90%. 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.
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Notes To Financial Statements
Year Ended September 30, 2019
332
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 6.90%. 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:
Current Discount
1% Decrease (5.90%) Rate (6.90%) 1% Increase (7.90%)
Clerk's proportionate
share of NPL $ 4,876,520 $ 2,820,971 $ 1,104,240
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 3.50%. 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:
Current Discount
1% Decrease (2.50%) Rate (3.50%) 1% Increase (4.50%)
Clerk's proportionate
share of NPL $ 1,347,084 $ 1,180,047 $ 1,040,924
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.
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Notes To Financial Statements
Year Ended September 30, 2019
333
NOTE 4 – OTHER POSTEMPLOYMENT BENEFITS
The Clerk participated in the Indian River County Other Postemployment Benefits Trust (OPEB Trust).
The Clerk’s 2019 annual contribution of $71,788 was funded by: the Board of County Commissioners in
the amount of $13,356; non-court operations in the amount of $9,330; court operations in the amount of
$45,286; and special revenue funds in the amount of $3,816. 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 $614,128.
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, 2019:
Beginning Ending
Balance Balance
10/01/18 Additions Deletions 9/30/19
Accrued Compensated Absences $ 245,833 $ 324,585 $ 299,023 $ 271,395
Of the $271,395 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.
Rehmann Robson
5070 North Highway A1A,
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
CPAs & Consultants Wealth Advisors Corporate Investigators
Rehmann is an independent member of Nexia International.
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 13, 2020
The Honorable Jeffrey R. Smith
Clerk of the Circuit Court and Comptroller
Indian River County, Florida
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial statements contained in Government Auditing
Standards issued by the Comptroller General of the United States, the fund financial statements of the
major fund and the aggregate remaining fund information of the Indian River County, Florida Clerk of
Court (the “Clerk”), as of and for the year ended September 30, 2019, which collectively comprise the
Clerk’s fund financial statements and have issued our report thereon dated March 13, 2020.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Clerk’s internal
control over financial reporting (internal control) to determine the audit procedures that are appropriate
in the circumstances for the purpose of expressing our opinions on the financial statements, but not for
the purpose of expressing an opinion on the effectiveness of the Clerk’s internal control. Accordingly,
we do not express an opinion on the effectiveness of the Clerk’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control such that there is a reasonable possibility that a material
misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a
timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control
that is less severe than a material weakness, yet important enough to merit attention by those charged
with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Clerk’s financial statements are free of
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on
the determination of financial statement amounts. However, providing an opinion on compliance with
those provisions was not an objective of our audit and, accordingly, we do not express such an opinion.
334
The Honorable Jeffrey R. Smith
Clerk of the Circuit Court and Comptroller
March 13, 2020
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.
335
Rehmann Robson
5070 North Highway A1A,
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
CPAs & Consultants Wealth Advisors Corporate Investigators
Rehmann is an independent member of Nexia International.
MANAGEMENT LETTER
March 13, 2020
The Honorable Jeffrey R. Smith
Clerk of the Circuit Court and Comptroller
Indian River County, Florida
Report on the Financial Statements
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, 2019, which collectively comprise the Clerk’s fund financial statements and have
issued our report thereon dated March 13, 2020.
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 13, 2020, 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.
336
The Honorable Jeffrey R. Smith
Clerk of the Circuit Court and Comptroller
March 13, 2020
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.
337
Rehmann Robson
5070 North Highway A1A,
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
CPAs & Consultants Wealth Advisors Corporate Investigators
Rehmann is an independent member of Nexia International.
INDEPENDENT ACCOUNTANTS’ REPORT
March 13, 2020
The Honorable Jeffrey R. Smith
Clerk of the Circuit Court and Comptroller
Indian River County, Florida
We have examined the compliance of Indian River County, Florida Clerk 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, 2019.
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, 2019.
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.
338
339
PROPERTY APPRAISER
Rehmann Robson
5070 North Highway A1A,
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
CPAs & Consultants Wealth Advisors Corporate Investigators
Rehmann is an independent member of Nexia International.
INDEPENDENT AUDITORS’ REPORT
March 13, 2020
The Honorable Wesley Davis
Property Appraiser
Indian River County, Florida
Report on the Financial Statements
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, 2019, 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.
340
The Honorable Wesley Davis
Property Appraiser
March 13, 2020
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, 2019, 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, 2019, 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 13, 2020,
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.
341
342
Indian River County, Florida
Property Appraiser
Balance Sheet
General Fund
September 30, 2019
ASSETS
Cash $ 244,985
Accounts receivable 567
Prepaid items 29,267
Total assets $ 274,819
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ 47,415
Due to other governments 226,836
Other deposits 568
Total liabilities 274,819
Fund Balances:
Nonspendable:
Prepaid items 29,267
Unassigned (29,267)
Total fund balances -
Total liabilities and fund balances $ 274,819
The accompanying notes are an integral part of the financial statements.
343
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, 2019
Budgeted Amount
Variance
with Final
Budget
Positive
Original Final Actual (Negative)
REVENUES
Charges for services $ 3,943,434 $ 3,945,203 $ 3,945,502 $ 299
Interest - - 8,746 8,746
Miscellaneous - - 7,001 7,001
Total revenues 3,943,434 3,945,203 3,961,249 16,046
EXPENDITURES
Current:
General government 3,943,434 3,945,203 3,773,886 171,317
Debt Service:
Principal - - 1,632 (1,632)
Interest and fiscal charges - - 164 (164)
Total expenditures 3,943,434 3,945,203 3,775,682 169,521
Excess of revenues over
(under) expenditures - - 185,567 185,567
OTHER FINANCING SOURCES (USES)
Lease Purchase Proceeds - - 20,855 20,855
Transfers to Board of
County Commissioners - - (206,422) (206,422)
Total other financing uses - - (185,567) (185,567)
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.
Indian River County, Florida
Property Appraiser
Notes To Financial Statements
Year Ended September 30, 2019
344
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.
Indian River County, Florida
Property Appraiser
Notes To Financial Statements
Year Ended September 30, 2019
345
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 $226,836 at
September 30, 2019, and are included as due to other governments on the balance sheet. Of this amount,
$206,422 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.
Indian River County, Florida
Property Appraiser
Notes To Financial Statements
Year Ended September 30, 2019
346
NOTE 2 - CASH
Deposits
At September 30, 2019, the carrying amount of the Property Appraiser’s deposits was $244,985 and the
bank balance was $275,731. 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 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, 2019 were: regular class 8.47%, senior management class
25.41%, DROP class 14.60%, and elected official class 48.82%. 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.
Indian River County, Florida
Property Appraiser
Notes To Financial Statements
Year Ended September 30, 2019
347
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, 2019, the Property Appraiser's actuarial contributions to FRS under
the Pension Plan were $229,659 and the Health Insurance Subsidy (HIS Program) were $37,535.
Employee contributions were $57,968. Both employer and employee contributions were equal to 100%
of the required contribution for each year.
Pension Liabilities: At September 30, 2019, the Division of Retirement calculated the Property
Appraiser's liability of $2,416,944 for the FRS plan and $741,827 for the HIS Program, for a total of
$3,158,771 for its proportionate share of the net pension liability. The net pension liability was
measured as of June 30, 2019, and the total pension liability used to calculate the net pension liability
was determined by an actuarial valuation as of July 1, 2019. 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, 2019, the Property Appraiser's proportion was .007018% for
the FRS Pension Plan and .006630% for the HIS Program.
Discount Rate for Pension Plan: The discount rate used to measure the total pension liability was
6.90%. 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.
Indian River County, Florida
Property Appraiser
Notes To Financial Statements
Year Ended September 30, 2019
348
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
6.90%. Also presented is what the Property Appraiser's proportionate share of the FRS plan NPL would
be if it were calculated using a discount rate that is 1% lower or 1% higher than the current rate:
1% Decrease
(5.90%)
Current Discount
Rate (6.90%)
1% Increase
(7.90%)
Property Appraiser 's proportionate
share of NPL $ 4,178,091 $ 2,416,944 $ 946,088
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 3.50%. 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
(2.50%)
Current Discount
Rate (3.50%)
1% Increase
(4.50%)
Property Appraiser's
proportionate share of NPL $ 846,834 $ 741,827 $ 654,369
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.
Indian River County, Florida
Property Appraiser
Notes To Financial Statements
Year Ended September 30, 2019
349
NOTE 4 – OTHER POSTEMPLOYMENT BENEFITS
The Property Appraiser participated in the Indian River County Other Postemployment Benefits Trust
(OPEB Trust). The Property Appraiser’s 2019 annual contribution of $36,252 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 2019 at an annual cost of approximately
$323,806. 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:
Beginning Ending
Balance Balance
10/01/18 Additions Deletions 9/30/2019
Accrued Compensated Absences $ 48,537 $ 279,162 $ 263,017 $ 64,682
Of the $64,682 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.
Indian River County, Florida
Property Appraiser
Notes To Financial Statements
Year Ended September 30, 2019
350
NOTE 7 – OPERATING LEASES
The Property Appraiser has entered into a noncancelable operating leases as lessee for office space.
Lease expenditures totaled $5,833 for the fiscal year ended September 30, 2019.
The following is a schedule by years of minimum future lease payments to be paid by the Property
Appraiser for noncancelable operating leases as of September 30:
Year Ended Amount
2020 $ 12,000
2021 6,000
Future minimum lease payments $ 18,000
NOTE 8 – CAPITAL LEASES
The Property Appraiser has entered into a noncancelable capital lease for a backup computer system.
Assets acquired under this lease totaled $20,855 for the fiscal year ended September 30, 2019.
The following is a schedule by years of minimum future lease payments to be paid by the Property
Appraiser for noncancelable capital leases as of September 30:
Year Ended Amount
2020 $ 3,592
2021 3,592
2022 3,592
2023 3,592
2024 1,796
Future minimum lease payments $ 16,164
Rehmann Robson
5070 North Highway A1A,
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
CPAs & Consultants Wealth Advisors Corporate Investigators
Rehmann is an independent member of Nexia International.
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 13, 2020
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, 2019, which collectively comprise the Property Appraiser’s fund
financial statements and have issued our report thereon dated March 13, 2020.
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
351
The Honorable Wesley Davis
Property Appraiser
March 13, 2020
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 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.
352
Rehmann Robson
5070 North Highway A1A,
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
CPAs & Consultants Wealth Advisors Corporate Investigators
Rehmann is an independent member of Nexia International.
MANAGEMENT LETTER
March 13, 2020
The Honorable Wesley Davis
Property Appraiser
Indian River County, Florida
Report on the Financial Statements
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, 2019, which
collectively comprise the Property Appraiser’s fund financial statements and have issued our report thereon
dated March 13, 2020.
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 13, 2020, 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.
353
The Honorable Wesley Davis
Property Appraiser
March 13, 2020
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.
354
Rehmann Robson
5070 North Highway A1A,
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
CPAs & Consultants Wealth Advisors Corporate Investigators
Rehmann is an independent member of Nexia International.
INDEPENDENT ACCOUNTANTS’ REPORT
March 13, 2020
The Honorable Wesley Davis
Property Appraiser
Indian River County, Florida
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, 2019.
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, 2019.
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.
355
356
357
SHERIFF
Rehmann Robson
5070 North Highway A1A,
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
CPAs & Consultants Wealth Advisors Corporate Investigators
Rehmann is an independent member of Nexia International.
INDEPENDENT AUDITORS’ REPORT
March 13, 2020
The Honorable Deryl Loar
Sheriff
Indian River County, Florida
Report on the Financial Statements
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, 2019, 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.
358
The Honorable Deryl Loar
Sheriff
March 13, 2020
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, 2019, 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, 2019, 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 13,
2020, 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.
359
360
Indian River County, Florida
Sheriff
Balance Sheet
Governmental Funds
September 30, 2019
Nonmajor
Fund
Total
General
Special
Revenue
Governmental
Funds
ASSETS
Cash $ 2,321,224 $ 2,241,482 $ 4,562,706
Accounts receivable 69,243 123,379 192,622
Inventories 72,158 22,251 94,409
Total assets $ 2,462,625 $ 2,387,112 $ 4,849,737
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ 1,622,263 $ 148,299 $ 1,770,562
Due to other governments 840,362 - 840,362
Total liabilities 2,462,625 148,299 2,610,924
Fund Balances:
Nonspendable:
Inventories 72,158 22,251 94,409
Restricted for:
Law enforcement/public safety - 1,937,178 1,937,178
Committed to:
Law enforcement/public safety - 164,077 164,077
Assigned to:
Law enforcement/public safety - 115,307 115,307
Unassigned (72,158) - (72,158)
Total fund balances - 2,238,813 2,238,813
Total liabilities and fund balances $ 2,462,625 $ 2,387,112 $ 4,849,737
The accompanying notes are an integral part of the financial statements.
361
Indian River County, Florida
Sheriff
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended September 30, 2019
Nonmajor
Fund
Total
General
Special
Revenue
Governmental
Funds
REVENUES
Intergovernmental $ - $ 123,817 $ 123,817
Charges for services - 269,824 269,824
Judgments, fines and forfeits - 66,882 66,882
Miscellaneous 96,627 481,509 578,136
Total revenues 96,627 942,032 1,038,659
EXPENDITURES
Public safety 47,309,057 747,483 48,056,540
Court related 2,382,599 - 2,382,599
Total expenditures 49,691,656 747,483 50,439,139
Excess of revenues over
(under) expenditures (49,595,029) 194,549 (49,400,480)
OTHER FINANCING SOURCES (USES)
Transfers from Board of County Commissioners 50,435,391 212,725 50,648,116
Transfers to Board of County Commissioners (840,362) - (840,362)
Total other financing sources 49,595,029 212,725 49,807,754
Net change in fund balances - 407,274 407,274
Fund balances at beginning of year - 1,831,539 1,831,539
Fund balances at end of year $ - $ 2,238,813 $ 2,238,813
The accompanying notes are an integral part of the financial statements.
362
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, 2019
Budgeted Amounts
Variance
with Final
Budget
Positive
Original Final Actual (Negative)
REVENUES
Miscellaneous $ - $ 96,627 $ 96,627 $ -
Total revenues - 96,627 96,627 -
EXPENDITURES
Public safety 47,897,913 48,074,274 47,309,057 765,217
Court related 2,498,905 2,457,744 2,382,599 75,145
Total expenditures 50,396,818 50,532,018 49,691,656 840,362
Excess of revenues over
(under) expenditures (50,396,818) (50,435,391) (49,595,029) 840,362
OTHER FINANCING SOURCES (USES)
Transfers from Board
of County Commissioners 50,396,818 50,435,391 50,435,391 -
Transfers to Board
of County Commissioners - - (840,362) (840,362)
Total other financing sources 50,396,818 50,435,391 49,595,029 (840,362)
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.
363
Indian River County, Florida
Sheriff
Statement of Fiduciary Net Position
Agency Fund
September 30, 2019
ASSETS
Cash $ 33,428
Total assets $ 33,428
LIABILITIES
Escrow deposits $ 33,428
Total liabilities $ 33,428
The accompanying notes are an integral part of the financial statements.
Indian River County, Florida
Sheriff
Notes To Financial Statements
Year Ended September 30, 2019
364
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.
Indian River County, Florida
Sheriff
Notes To Financial Statements
Year Ended September 30, 2019
365
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, 2019 amount totaled $840,362 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.
Indian River County, Florida
Sheriff
Notes To Financial Statements
Year Ended September 30, 2019
366
NOTE 2 - CASH
Deposits
At September 30, 2019, the carrying amount of the Sheriff’s deposits was $4,596,134 and the bank
balance was $5,295,414. 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
10/01/18 Additions Deletions 09/30/19
Equipment $ 27,565,726 $ 4,212,129 $ 1,942,294 $ 29,835,561
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.
Indian River County, Florida
Sheriff
Notes To Financial Statements
Year Ended September 30, 2019
367
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, 2019 were: regular class 8.47%, special risk 25.48%, senior
management class 25.41%, DROP class 14.60%, and elected official class 48.82%. 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, 2019, the Sheriff's actuarial con0tributions to FRS under the Pension
Plan were $4,422,338 and the HIS Program were $442,025. Employee contributions were $744,569.
Both employer and employee contributions were equal to 100% of the required contribution for each
year.
Indian River County, Florida
Sheriff
Notes To Financial Statements
Year Ended September 30, 2019
368
NOTE 5 – PENSION PLAN - Continued
Florida Retirement System - Continued
Pension Liabilities: At September 30, 2019, the Division of Retirement calculated the Sheriff's liability
of $47,529,592 for the FRS plan and $8,768,325 for the HIS Program, for a total of $56,297,917 for its
proportionate share of the net pension liability. The net pension liability was measured as of June 30,
2019, and the total pension liability used to calculate the net pension liability was determined by an
actuarial valuation as of July 1, 2019. The Sheriff's proportion of the net pension liability was based on
a projection of the Sheriff's long-term share of contributions to the Pension Plan relative to the projected
contributions of all participating employers, actuarially determined. At September 30, 2019, the
Sheriff's proportion was .138012% for the FRS Pension Plan and .078365% for the HIS Program.
Discount Rate for Pension Plan: The discount rate used to measure the total pension liability was
6.90%. 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 Sheriff'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 Sheriff's Proportionate Share of the Net Position Liability to Changes in the Discount
Rate for the Pension Plan: The following presents the Sheriff's proportionate share of the net pension
liability (NPL) of the Pension Plan calculated using the discount rate of 6.90%. Also presented is what
the Sheriff's proportionate share of the FRS plan NPL would be if it were calculated using a discount
rate that is 1% lower or 1% higher than the current rate:
Current Discount
1% Decrease (5.90%) Rate (6.90%) 1% Increase (7.90%)
Sheriff's proportionate
share of NPL $ 82,162,838 $ 47,529,592 $ 18,604,974
Discount rate for the HIS Program: In general, the discount rate for calculating the pension liability is
equal to the single rate equivalent to discounting at the long-term expected rate of return for benefit
payments prior to the projected depletion date. Because the HIS Program is essentially funded on a pay-
as-you-go basis, the depletion date is considered to be immediate. The single equivalent discount rate is
equal to the municipal bond rate selected by the plan sponsor. The Bond Buyer General Obligation 20-
Bond Municipal Bond Index was adopted as the applicable municipal bond index.
Indian River County, Florida
Sheriff
Notes To Financial Statements
Year Ended September 30, 2019
369
NOTE 5 – PENSION PLAN - Continued
Florida Retirement System - Continued
Sensitivity of the Sheriff's Proportionate Share of the Net Position Liability to Changes in the Discount
Rate for the HIS Program: The following presents the Sheriff's proportionate share of the NPL of the
HIS Program calculated using the discount rate of 3.50%. Also presented is what the Sheriff's
proportionate share of the HIS Program NPL would be if it were calculated using a discount rate that is
1% lower or 1% higher than the current rate:
Current Discount
1% Decrease (2.50%) Rate (3.50%) 1% Increase (4.50%)
Sheriff's proportionate
share of NPL $ 10,009,492 $ 8,768,325 $ 7,734,573
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 2019 annual contribution of $920,884 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 2019 at an annual cost of approximately $4,034,760.
Further details on this self-insurance program are disclosed in the County-wide financial statements and
County notes.
Indian River County, Florida
Sheriff
Notes To Financial Statements
Year Ended September 30, 2019
370
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, 2019:
Beginning Ending
Balance Balance
10/01/18 Additions Deletions 09/30/19
Accrued Compensated Absences $ 7,318,620 $ 4,122,764 $ 3,573,334 $ 7,868,050
Of the $7,868,050 liability for accrued compensated absences, management estimates that $3,578,789
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 $84,911 for the year ended September 30, 2019.
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
2020 $ 51,015
2021 47,007
2022 18,091
2023 5,952
2024 887
Total Future Minimum Lease Payments $ 122,952
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.
Rehmann Robson
5070 North Highway A1A,
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
CPAs & Consultants Wealth Advisors Corporate Investigators
Rehmann is an independent member of Nexia International.
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 13, 2020
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, 2019, which collectively comprise the
Sheriff’s fund financial statements and have issued our report thereon dated March 13, 2020.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Sheriff’s internal
control over financial reporting (internal control) to determine the audit procedures that are appropriate
in the circumstances for the purpose of expressing our opinions on the financial statements, but not for
the purpose of expressing an opinion on the effectiveness of the Sheriff’s internal control. Accordingly,
we do not express an opinion on the effectiveness of the Sheriff’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control such that there is a reasonable possibility that a material
misstatement of the entity’s financial statements will not be prevented, or detected and corrected on
a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal
control that is less severe than a material weakness, yet important enough to merit attention by those
charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Sheriff’s financial statements are free of
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on
the determination of financial statement amounts. However, providing an opinion on compliance with
those provisions was not an objective of our audit and, accordingly, we do not express such an opinion.
371
The Honorable Deryl Loar
Sheriff
March 13, 2020
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.
372
Rehmann Robson
5070 North Highway A1A,
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
CPAs & Consultants Wealth Advisors Corporate Investigators
Rehmann is an independent member of Nexia International.
MANAGEMENT LETTER
March 13, 2020
The Honorable Deryl Loar
Sheriff
Indian River County, Florida
Report on the Financial Statements
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, 2019, which collectively comprise the Sheriff’s fund financial statements and have issued
our report thereon dated March 13, 2020.
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 13, 2020, 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.
373
The Honorable Deryl Loar
Sheriff
March 13, 2020
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.
374
375
SUPERVISOR OF ELECTIONS
Rehmann Robson
5070 North Highway A1A,
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
CPAs & Consultants Wealth Advisors Corporate Investigators
Rehmann is an independent member of Nexia International.
INDEPENDENT AUDITORS’ REPORT
March 13, 2020
The Honorable Leslie Swan
Supervisor of Elections
Indian River County, Florida
Report on the Financial Statements
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, 2019, 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.
376
The Honorable Leslie Swan
Supervisor of Elections
March 13, 2020
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, 2019, 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, 2019, 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 13,
2020, 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.
377
378
Indian River County, Florida
Supervisor of Elections
Balance Sheet
Governmental Funds
September 30, 2019
Nonmajor Fund Total
General
Special
Revenue
Governmental
Funds
ASSETS
Cash $ 3,002 $ 52,931 $ 55,933
Accounts receivable 5,266 - 5,266
Prepaid items 63,312 - 63,312
Total assets $ 71,580 $ 52,931 $ 124,511
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ 34,885 $ - $ 34,885
Due to other governments 36,695 - 36,695
Unearned revenues - 49,992 49,992
Total liabilities 71,580 49,992 121,572
Fund Balances:
Nonspendable:
Prepaid items 63,312 - 63,312
Restricted for:
Voting/election activities - 2,939 2,939
Unassigned (63,312) - (63,312)
Total fund balances - 2,939 2,939
Total liabilities and fund balances $ 71,580 $ 52,931 $ 124,511
The accompanying notes are an integral part of the financial statements.
379
Indian River County, Florida
Supervisor of Elections
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended September 30, 2019
Nonmajor
Fund
Total
General
Special
Revenue
Governmental
Funds
REVENUES
Intergovernmental $ 341 $ 112,412 $ 112,753
Charges for services 3,914 - 3,914
Interest - 302 302
Miscellaneous 42,864 - 42,864
Total revenues 47,119 112,714 159,833
EXPENDITURES
General government 1,365,867 112,751 1,478,618
Total expenditures 1,365,867 112,751 1,478,618
Excess of revenues over
(under) expenditures (1,318,748) (37) (1,318,785)
OTHER FINANCING SOURCES (USES)
Transfers from Board of County Commissioners 1,358,084 - 1,358,084
Transfers from other funds - 2,641 2,641
Transfers to Board of County Commissioners (36,695) - (36,695)
Transfers to other funds (2,641) - (2,641)
Total other financing sources (uses) 1,318,748 2,641 1,321,389
Net change in fund balances - 2,604 2,604
Fund balances at beginning of year - 335 335
Fund balances at end of year $ - $ 2,939 $ 2,939
The accompanying notes are an integral part of the financial statements.
380
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, 2019
Budgeted Amount
Variance
with Final
Budget
Positive
Original Final Actual (Negative)
REVENUES
Intergovernmental $ - $ - $ 341 $ 341
Charges for services - - 3,914 3,914
Miscellaneous - 42,864 42,864 -
Total revenues - 42,864 47,119 4,255
EXPENDITURES
General government 1,354,184 1,397,048 1,365,867 31,181
Total expenditures 1,354,184 1,397,048 1,365,867 31,181
Excess of revenues over
(under) expenditures (1,354,184) (1,354,184) (1,318,748) 35,436
OTHER FINANCING SOURCES (USES)
Transfers from Board of County
Commissioners 1,358,084 1,358,084 1,358,084 -
Transfers to Board of County
Commissioners - - (36,695) (36,695)
Transfers to other funds (3,900) (3,900) (2,641) 1,259
Total other financing sources (uses) 1,354,184 1,354,184 1,318,748 (35,436)
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.
Indian River County, Florida
Supervisor of Elections
Notes To Financial Statements
Year Ended September 30, 2019
381
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.
Indian River County, Florida
Supervisor of Elections
Notes To Financial Statements
Year Ended September 30, 2019
382
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
C. Budgetary Requirements - Continued
The budgeted revenues and expenditures in the accompanying financial statements reflect all
amendments approved by the Board of County Commissioners. The budget is prepared on a basis
consistent with generally accepted accounting principles.
D. Prepaid 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
$36,695 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.
Indian River County, Florida
Supervisor of Elections
Notes To Financial Statements
Year Ended September 30, 2019
383
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
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.
NOTE 2 - CASH
Deposits
At September 30, 2019, the carrying amount of the Supervisor of Elections’ deposits was $55,933, and
the bank balance was $86,466. 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, 2019 were: regular class 8.47%, senior management class
25.41%, DROP class 14.60%, and elected official class 48.82%. Included in these rates is a health
insurance subsidy of 1.66%.
Indian River County, Florida
Supervisor of Elections
Notes To Financial Statements
Year Ended September 30, 2019
384
NOTE 3 – PENSION PLAN - Continued
Florida Retirement System - Continued
Employees elect participation in either the defined benefit plan (Pension Plan) or the defined
contribution plan (Investment Plan). If the employee enrolled in the FRS prior to July 1, 2011, normal
retirement is age 62 with 6 years of service or 30 years of service, regardless of age. If the employee
enrolled in the FRS on or after July 1, 2011, normal retirement is age 65 with 8 years of service or 33
years of service, regardless of age.
Under the Pension Plan, early retirement is available before reaching normal retirement age and will be
subject to an early-retirement reduction of 5% for each year your age at retirement is under your normal
retirement age. For those employees who elect participation in the Investment Plan rather than the
Pension Plan, vesting occurs after one year of service. Participants have access to the full value of their
vested account balance when they leave FRS employment, regardless of age. These participants receive
a defined contribution for self-direction in an investment product with a third party administrator
selected by the State Board of Administration.
Benefits Provided: Retirement benefits are determined by age, years of service, the average of the
highest 5 or 8 fiscal years of pay, membership class and the payment option selected at retirement. For
further information concerning the Florida Retirement System and contribution rates, please read the
County-wide note on pension plans.
Contributions: Employer contributions to the FRS are based on a percentage of covered payroll that has
been actuarially determined as an amount, when combined with employee contributions, is expected to
finance the cost of benefits earned by employees during the year with an additional amount to finance
any unfunded accrued liability.
For the year ended September 30, 2019, the Supervisor of Elections' actuarial contribution to FRS under
the Pension Plan were $86,557 and the HIS Program were $9,108. Employee contributions were
$16,501. Both employer and employee contributions were equal to 100% of the required contribution
for each year.
Pension Liabilities: At September 30, 2019, the Division of Retirement calculated the Supervisor of
Elections' liability of $953,589 for the FRS plan and $179,893 for the HIS Program, for a total of
$1,133,482 for its proportionate share of the net pension liability. The net pension liability was
measured as of June 30, 2019, and the total pension liability used to calculate the net pension liability
was determined by an actuarial valuation as of July 1, 2019. 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, 2019, the Supervisor of Elections' proportion was .002769%
for the FRS Pension Plan and .001608% for the HIS Program.
Indian River County, Florida
Supervisor of Elections
Notes To Financial Statements
Year Ended September 30, 2019
385
NOTE 3 – PENSION PLAN - Continued
Florida Retirement System - Continued
Discount Rate for Pension Plan: The discount rate used to measure the total pension liability was
6.90%. 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.
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 6.90%. 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
(5.90%)
Current Discount
Rate (6.90%)
1% Increase
(7.90%)
Supervisor of Elections's
proportionate share of NPL $ 1,648,438 $ 953,589 $ 373,273
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 3.50%. 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
(2.50%)
Current Discount
Rate (3.50%)
1% Increase
(4.50%)
Supervisor of Election's
proportionate share of NPL $ 205,357 $ 179,893 $ 158,684
Indian River County, Florida
Supervisor of Elections
Notes To Financial Statements
Year Ended September 30, 2019
386
NOTE 3 – PENSION PLAN - Continued
Florida Retirement System - Continued
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.
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 2019 annual contribution of $9,540 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 2019 at an annual cost of
approximately $59,663.
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, 2019:
Beginning Ending
Balance Balance
10/1/2018 Additions Deletions 9/30/2019
Accrued Compensated Absences $ 27,452 $ 26,476 $ 36,989 $ 16,939
Of the $16,939 liability for accrued compensated absences, management estimates that $8,833 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.
Indian River County, Florida
Supervisor of Elections
Notes To Financial Statements
Year Ended September 30, 2019
387
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 $3,588 for the year ended September 30, 2019.
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
2020 $ 3,588
2021 3,588
2022 1,794
$ 8,970
Rehmann Robson
5070 North Highway A1A,
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
CPAs & Consultants Wealth Advisors Corporate Investigators
Rehmann is an independent member of Nexia International.
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 13, 2020
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,
2019, which collectively comprise the Supervisor of Elections’ fund financial statements and have issued
our report thereon dated March 13, 2020.
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
388
The Honorable Leslie Swan
Supervisor of Elections
March 13, 2020
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.
389
Rehmann Robson
5070 North Highway A1A,
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
CPAs & Consultants Wealth Advisors Corporate Investigators
Rehmann is an independent member of Nexia International.
MANAGEMENT LETTER
March 13, 2020
The Honorable Leslie Swan
Supervisor of Elections
Indian River County, Florida
Report on the Financial Statements
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, 2019, which collectively comprise the Supervisor of Elections’
fund financial statements and have issued our report thereon dated March 13, 2020.
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 13, 2020, 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.
390
The Honorable Leslie Swan
Supervisor of Elections
March 13, 2020
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.
391
392
393
TAX COLLECTOR
Rehmann Robson
5070 North Highway A1A,
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
CPAs & Consultants Wealth Advisors Corporate Investigators
Rehmann is an independent member of Nexia International.
INDEPENDENT AUDITORS’ REPORT
March 13, 2020
The Honorable Carole Jean Jordan
Tax Collector
Indian River County, Florida
Report on the Financial Statements
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, 2019, 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.
394
The Honorable Carole Jean Jordan
Tax Collector
March 13, 2020
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, 2019, 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, 2019, 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 13,
2020, 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.
395
396
Indian River County, Florida
Tax Collector
Balance Sheet
General Fund
September 30, 2019
ASSETS
Cash and investments $ 2,717,270
Accounts receivable 317,772
Inventories 3,885
Prepaid items 51,198
Total assets $ 3,090,125
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ 166,920
Due to other governments 2,843,493
Unearned revenues 77,891
Other deposits 1,821
Total liabilities 3,090,125
Fund Balances:
Nonspendable:
Inventories 3,885
Prepaid items 51,198
Unassigned (55,083)
Total fund balances -
Total liabilities and fund balances $ 3,090,125
The accompanying notes are an integral part of the financial statements.
397
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, 2019
Budgeted Amount
Variance with
Final Budget
Positive
Original Final Actual (Negative)
REVENUES
Charges for services $ 6,760,000 $ 6,760,000 $ 7,113,519 $ 353,519
Interest 23,000 23,000 79,967 56,967
Total revenues 6,783,000 6,783,000 7,193,486 410,486
EXPENDITURES
General government 4,581,452 4,662,352 4,638,109 24,243
Total expenditures 4,581,452 4,662,352 4,638,109 24,243
Excess of revenues
over (under) expenditures 2,201,548 2,120,648 2,555,377 434,729
OTHER FINANCING USES
Transfers to Board
of County Commissioners (2,201,548) (2,120,648) (2,555,377) (434,729)
Total other financing uses (2,201,548) (2,120,648) (2,555,377) (434,729)
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.
398
Indian River County, Florida
Tax Collector
Statement of Fiduciary Net Position
Agency Fund
September 30, 2019
ASSETS
Cash and investments $ 4,855,053
Total assets $ 4,855,053
-
LIABILITIES
Due to other governments $ 4,855,053
Total liabilities $ 4,855,053
The accompanying notes are an integral part of the financial statements.
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2019
399
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.
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2019
400
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 $77,891 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.
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2019
401
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 $2,843,493 at
September 30, 2019, and are included as due to other governments on the balance sheet. Of this amount,
$2,555,377 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, 2019, the carrying amount of the Tax Collector’s deposits was $2,740,699 and
the bank balance was $2,803,938.
B. Investments
At September 30, 2019, the Tax Collector had investments with a balance of $4,831,624. The Florida
Prime had a balance of $1,964,131 and weighted average maturity of 37 days. The Florida Trust Day to
Day Fund (Florida Trust) had a balance of $1,044,047 and weighted average maturity of 30 days. The
FLCLASS had a balance of $1,823,446 and a weighted average maturity of 77 days.
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2019
402
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 March 2019. 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) 75%
Florida Trust Day to Day Fund (Florida Trust) 75%
Florida Cooperative Liquid Assets Securities System (FLCLASS) 75%
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 25%
United States Government Agencies 25%
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2019
403
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, 2019
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
and Sunpass transponders.
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.
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2019
404
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, 2019 were: regular class 8.47%, senior management class
25.41%, DROP class 14.60%, and elected official class 48.82%. 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, 2019, the Tax Collector's actuarial contributions to FRS under the
Pension Plan were $235,053 and the Health Insurance Subsidy (HIS Program) were $37,338. Employee
contributions were $64,581. Both employer and employee contributions were equal to 100% of the
required contribution for each year.
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2019
405
NOTE 4 – PENSION PLAN - Continued
Florida Retirement System - Continued
Pension Liabilities: At September 30, 2019, the Division of Retirement calculated the Tax Collector's
liability of $2,535,312 for the FRS plan and $735,712 for the HIS Program, for a total of $3,271,024 for
its proportionate share of the net pension liability. The net pension liability was measured as of June 30,
2019, and the total pension liability used to calculate the net pension liability was determined by an
actuarial valuation as of July 1, 2019. 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,
2019, the Tax Collector's proportion was .007362% for the FRS Pension Plan and .006575% for the HIS
Program.
Discount Rate for Pension Plan: The discount rate used to measure the total pension liability was
6.90%. 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 6.90%. Also
presented is what the Tax Collector's proportionate share of the FRS plan NPL would be if it were
calculated using a discount rate that is 1% lower or 1% higher than the current rate:
Current Discount
1% Decrease (5.90%) Rate (6.90%) 1% Increase (7.90%)
Tax Collector's proportionate
share of NPL $ 4,382,710 $ 2,535,312 $ 992,422
Discount rate for the HIS Program: In general, the discount rate for calculating the pension liability is
equal to the single rate equivalent to discounting at the long-term expected rate of return for benefit
payments prior to the projected depletion date. Because the HIS Program is essentially funded on a pay-
as-you-go basis, the depletion date is considered to be immediate. The single equivalent discount rate is
equal to the municipal bond rate selected by the plan sponsor. The Bond Buyer General Obligation 20-
Bond Municipal Bond Index was adopted as the applicable municipal bond index.
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2019
406
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 3.50%. Also presented is what the
Tax Collector's proportionate share of the HIS Program NPL would be if it were calculated using a
discount rate that is 1% lower or 1% higher than the current rate:
Current Discount
1% Decrease (2.50%) Rate (3.50%) 1% Increase (4.50%)
Tax Collector's proportionate
share of NPL $ 839,853 $ 735,712 $ 648,974
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 2019 annual contribution of $56,286 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 2019 at an annual cost of approximately $453,398.
Further details of this self-insurance program are discussed in the risk management note in the County-
wide financial statements.
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2019
407
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, 2019:
Beginning Ending
Balance Balance
10/1/2018 Additions Deletions 9/30/2019
Accrued Compensated Absences $ 122,414 $ 36,818 $ 38,662 $ 120,570
Of the $120,570 liability for accrued compensated absences, management estimates that $28,497 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 $134,188 for the fiscal year ended September 30, 2019.
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
2020 $ 94,157
2021 84,160
2022 56,120
2023 3,393
2024 848
Total future minimum lease payments $ 238,678
Rehmann Robson
5070 North Highway A1A,
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
CPAs & Consultants Wealth Advisors Corporate Investigators
Rehmann is an independent member of Nexia International.
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 13, 2020
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, 2019, which collectively
comprise the Tax Collector’s fund financial statements and have issued our report thereon dated
March 13, 2020.
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
408
The Honorable Carole Jean Jordan
Tax Collector
March 13, 2020
Page 2
andmaterial 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.
409
Rehmann Robson
5070 North Highway A1A,
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
CPAs & Consultants Wealth Advisors Corporate Investigators
Rehmann is an independent member of Nexia International.
MANAGEMENT LETTER
March 13, 2020
The Honorable Carole Jean Jordan
Tax Collector
Indian River County, Florida
Report on the Financial Statements
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, 2019, which collectively comprise the Tax Collector’s fund financial
statements and have issued our report thereon dated March 13, 2020.
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 March 13, 2020, 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.
410
The Honorable Carole Jean Jordan
Tax Collector
March 13, 2020
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.
411
Rehmann Robson
5070 North Highway A1A,
Suite 250
Vero Beach, FL 32963
Ph: 772.234.8484
Fx: 772.234.8488
rehmann.com
CPAs & Consultants Wealth Advisors Corporate Investigators
Rehmann is an independent member of Nexia International.
INDEPENDENT ACCOUNTANTS’ REPORT
March 13, 2020
The Honorable Carole Jean Jordan
Tax Collector
Indian River County, Florida
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, 2019.
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, 2019.
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.
412