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Cover Photos:
Top Row - left to right
• Citrus is an important part of Indian River County's agricultural history dating back to
the early 1900's.
• The small ceranus blue butterfly is commonly found throughout Florida.
• Kayakers take advantage of the beautiful Indian River Lagoon.
• The buttonbush flower is one of the wildflowers found in Indian River County's
freshwater wetlands.
• Indian River County has made significant efforts in the protection of the Florida Scrub -
jay, a federally threatened species.
Middle Row - left to right
• Jones' Pier Conservation Area observation platform is a beautiful resting spot along
the Historic Jungle Trail, which is on the National Register of Historic Places.
• Beautiful wildflowers are commonly found in the wetlands.
• The Painted Turtle can be found in many of Indian River County's freshwater wetlands,
ponds and other water bodies like canals and ditches.
• The shallow waters of the Indian River Lagoon provide an abundance of recreational
and commercial fishing opportunities.
Bottom Row - left to right
• Brown Pelicans resting on the dock along the Indian River Lagoon.
• The new observation platform on the Indian River Lagoon at the Oyster Bar Marsh.
• Walking the 7.5 -mile Historic Jungle Trail.
• Indian River County's beaches are some of the most beautiful and pristine in the state,
not only for visitors, but also for record numbers of nesting sea turtles.
Bottom: View of the Indian River Lagoon (foreground), with Orchid Island, Indian River
County's barrier island, and the Atlantic Ocean in the background. Photo courtesy of Nick
Verola.
INDIAN RIVER COUNTY, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR
OCTOBER 1, 2019
THROUGH
SEPTEMBER 30, 2020
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, 2020
Board of County Commissioners as of September 30, 2020
Susan Adams
Chairman
Joseph E. Flescher
Vice -Chairman
Peter D. O'Bryan
Bob Solari
Tim Zorc
Current Board of County Commissioners (effective November 17, 2020)
Joseph E. Flescher
Chairman
Peter D. O'Bryan
Vice -Chairman
Susan Adams
Joe Earman
Laura Moss
Constitutional Officers as of September 30, 2020
Jeffrey R. Smith
Clerk of the Ciruit Court and Comptroller
Deryl Loar
Sheriff
(through January 4, 2021)
Leslie R. Swan
Supervisor of Elections
Jason Brown
County Administrator
Michael Zito
Assistant
County Administrator
Phil Matson
Director of
Community Development
Suzanne Boyll
Director of
Human Resources
County Management
Wesley Davis
Property Appraiser
Eric Flowers
Sheriff
(effective January 5, 2021)
Kristin Daniels
Director Office of
Management Et Budget
Vincent Burke
Director of
Utilities
Dan Russell
Director of
Information Technology
Carole Jean Jordan
Tax Collector
Dylan Reingold
County Attorney
Rich Szpyrka
Director of
Public Works
Tad Stone
Director of
Emergency Services
Kevin Ki rwi n
Director of
Parks Et Recreation
Indian River County, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS
Fiscal Year Ended September 30, 2020
INTRODUCTORY SECTION
Page
Number
LETTER OF TRANSMITTAL i
ORGANIZATION CHART viii
CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE
IN FINANCIAL REPORTING ix
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 22
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 - Transportation Fund 33
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual -Emergency Services District Fund 34
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual - Beach Restoration 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, 2020
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
Schedule of the County's Proportionate Share of the Net Pension Liability -
Retiree Health Insurance Subsidy (HIS) Program Defined Benefit Pension Plan
Schedule of the County's Contributions - FRS Defined Benefit Pension Plan
Schedule of the County's Contributions - HIS Defined Benefit Pension Plan
Schedule of Changes in Net OPEB Liability and Related Ratios
Schedule of OPEB Contributions
Notes to Schedule of OPEB Contributions
Schedule of OPEB Investment Returns Multiyear
113
113
114
114
115
116
117
118
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES:
Combining Balance Sheet - Nonmajor Governmental Funds 124
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances - Nonmajor Governmental Funds 130
Budgetary Comparison Schedules 137
Combining Statement of Net Position - Internal Service Funds 168
Combining Statement of Revenues, Expenses, and
Changes in Fund Net Position - Internal Service Funds 169
Combining Statement of Cash Flows - Internal Service Funds 170
Combining Statement of Changes in Assets and Liabilities - Agency Fund 174
Indian River County, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS- CONTINUED
Fiscal Year Ended September 30, 2020
STATISTICAL SECTION
Page
Number
SCHEDULE 1 Net Position by Component - Last Ten Fiscal Years 176
SCHEDULE 2 Changes in Net Position - Last Ten Fiscal Years 178
SCHEDULE 3 Fund Balances, Governmental Funds - Last Ten Fiscal Years 182
SCHEDULE 4 Changes in Fund Balances, Governmental Funds -
Last Ten Fiscal Years 184
SCHEDULE 5 Tax Revenues by Source, Governmental Funds -
Last Ten Fiscal Years 186
SCHEDULE 6 Assessed Value and Actual Value of Taxable Property -
Last Ten Fiscal Years 187
SCHEDULE 7 Property Tax Rates - Direct and Overlapping Tax Rates -
Last Ten Fiscal Years 188
SCHEDULE 8 Principal Property Taxpayers - Year 2020 and Year 2011 190
SCHEDULE 9 Property Tax Levies and Collections - Last Ten Fiscal Years 191
SCHEDULE 10 Ratios of Outstanding Debt by Type - Last Ten Fiscal Years 192
SCHEDULE 11 Ratio of Net General Bonded Debt Outstanding to Taxable Value
and Net Bonded Debt Per Capita - Last Ten Fiscal Years 194
SCHEDULE 12 Computation of Legal Debt Margin 195
SCHEDULE 13 Direct and Overlapping Governmental Activities Debt 196
SCHEDULE 14 Pledged Revenue Coverage - Water and Sewer Revenue Bonds -
Last Ten Fiscal Years 198
Indian River County, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS- CONTINUED
Fiscal Year Ended September 30, 2020
Page
Number
SCHEDULE 15 Demographic and Economic Statistics - Last Ten Years 200
SCHEDULE 16 Principal Employers - Year 2020 and Year 2011 201
SCHEDULE 17 Building Permits - Last Ten Fiscal Years 202
SCHEDULE 18 Operating Indicators by Function/Program - Last Ten Fiscal Years 204
SCHEDULE 19 Full Time Equivalent County Government Employees
by Function/Program - Last Ten Fiscal Years 208
SCHEDULE 20 Capital Asset Statistics by Function/Program - Last Ten Fiscal Years 210
SCHEDULE 21 Department of Utility Services - Historical Rate Structure -
Last Ten Fiscal Years 214
SCHEDULE 22 Water and Wastewater Customers - Last Ten Fiscal Years 216
SCHEDULE 23 Top 10 High Volume Customers of Utility Services 217
SCHEDULE 24 Capacity Charges - Utilities Department - Last Ten Fiscal Years 218
SCHEDULE 25 Pledged Revenues for Spring Training Facility Revenue Bonds,
Series 2001 - Last Ten Fiscal Years 219
Indian River County, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS- CONTINUED
Fiscal Year Ended September 30, 2020
COMPLIANCE SECTION
Page
Number
Independent Auditors' Report on Internal Control over Financial Reporting and on
Compliance And Other Matters Based on an Audit of Financial Statements
Performed In Accordance with Government Auditing Standards 221
County Management Letter 223
Independent Accountants' Report 225
Federal and State Grants:
Independent Auditors' Report on the Schedule of Expenditures of
Federal Awards and State Projects Required by Uniform Guidance
and Chapter 10.550, Rules of the Auditor General 226
Schedule of Expenditures of Federal Awards and State Projects 227
Notes to Schedule of Expenditures of Federal Awards and State Projects 232
Independent Auditors' Report on Compliance for Each Major Federal
Program and Major State Project and on Internal Control over
Compliance Required by the Uniform Guidance and Chapter 10.550,
Rules of the Auditor General 233
Schedule of Findings and Questioned Costs 236
Summary Schedule of Prior Audit Findings 238
Impact Fee Affidavit 239
Indian River County, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS- CONTINUED
Fiscal Year Ended September 30, 2020
AUDITOR GENERAL REPORTS SECTION
Page
Number
BOARD OF COUNTY COMMISSIONERS
Independent Auditors' Report 242
Fund Financial Statements 244
Independent Auditors' Report on Internal Control over Financial Reporting and on
Compliance And Other Matters Based on an Audit of Financial Statements
Performed In Accordance with Government Auditing Standards 323
Management Letter 325
Independent Accountants' Report 327
CLERK OF THE CIRCUIT COURT AND COMPTROLLER
Independent Auditors' Report 330
Fund Financial Statements 332
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 345
Management Letter 347
Independent Accountants' Report 349
PROPERTY APPRAISER
Independent Auditors' Report 352
Fund Financial Statements 354
Independent Auditors' Report on Internal Control over Financial Reporting and on
Compliance And Other Matters Based on an Audit of Financial Statements
Performed In Accordance with Government Auditing Standards 364
Management Letter 366
Independent Accountants' Report 368
Indian River County, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS -CONTINUED
Fiscal Year Ended September 30, 2020
Page
Number
SHERIFF
Independent Auditors' Report 370
Fund Financial Statements 372
Independent Auditors' Report on Internal Control over Financial Reporting and on
Compliance And Other Matters Based on an Audit of Financial Statements
Performed In Accordance with Government Auditing Standards 384
Management Letter 386
SUPERVISOR OF ELECTIONS
Independent Auditors' Report
Fund Financial Statements
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
Management Letter
390
392
402
404
TAX COLLECTOR
Independent Auditors' Report 408
Fund Financial Statements 410
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 423
Management Letter 425
Independent Accountants' Report 427
JEFFREY R. SMITH, CPA, CGFO, CGMA
Clerk of Circuit Court & Comptroller
1801 27th Street
Vero Beach, FL 32960
Telephone: (772) 226-1516
March 12, 2021
To the Citizens of Indian River County
And the Honorable Members of the
Board of County Commissioners:
The Comprehensive Annual Financial Report of Indian River County, Florida for the fiscal
year ended September 30, 2020, 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
property 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, 2020 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 (MDMA),
which provides basic financial information about the County and an overview of the County's
activities. The MDMA immediately follows the independent auditors' report.
Profile of Indian River County
Indian River County, established on June 29, 1925 by an act of the Florida Legislature, is
located on the central Atlantic coast of Florida, approximately 100 miles southeast of
Orlando and 135 miles north of Miami. The County is bordered by Brevard County to the
north, St. Lucie County to the south, and Osceola and Okeechobee Counties on the west.
There are approximately 100 miles of waterfront land in the County, including 23 miles of
Atlantic beaches.
The City of Vero Beach is the seat of County government. Indian River County is a non -
charter county established under the Constitution and the Laws of the State of Florida. It is
governed by a five member Board of County Commissioners (Board) elected at large from the
five districts within the County. A County Administrator is appointed by the Board and is
responsible for implementing the policies set forth by the Board. The Administrator is
charged with the 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 majority of the funding for
all Constitutional Officers is part of the County's General Fund, the Board does not have
direct responsibility for their operations. Each office is run separately within each of its
respective legal guidelines.
Indian River County provides a full range of services including, but not limited to:
construction and maintenance of roadways, sidewalks and other infrastructure, fire
rescue/emergency services, law enforcement, library services, traffic operations and
control, parks and recreational services, human services, building inspections, licenses and
permits, water/sewer utility services, and refuse collection and disposal.
The Clerk of the Circuit Court and Comptroller (Clerk), Sheriff, and Supervisor of Elections
submit proposed operating budgets to the Board prior to May 1. The Florida Department of
Revenue receives budgets from the Property Appraiser prior to June 1 and from the Tax
Collector prior to August 1. Once these budgets are approved, they are forwarded to the
Board. The court -related function of the Clerk submits a budget to the Florida Clerks of
Court Operations Corporation (CCOC) prior to May 1. These operating budgets include
proposed expenditures and the sources to finance them as set forth in Section 28.36, Florida
Statutes.
Constitutional Officers, all departments controlled by the Board of County Commissioners,
and outside state and local agencies submit their proposed budgets to the Office of
Management and Budget for assistance, review and compilation. The County Administrator
then reviews all the budgets of the County departments, state agencies and nonprofit
organizations, and makes his budget recommendations to the Board of County Commissioners
in July of each year. The Board then holds public workshops to review the tentative budget
by fund on a departmental level.
During September, public hearings are held pursuant to Section 200.065, Florida Statutes, in
order for the Board to receive public input on the tentative budget. At the end of the last
public hearing, the Board enacts ordinances to legally adopt (at the fund level) the budgets
for all governmental fund types. The budgets legally adopted by the Board set forth the
anticipated revenues by source and the appropriations by function. Budgets for Enterprise
and Internal Service funds are adopted on a basis consistent with generally accepted
accounting principles. Management is authorized to transfer budgeted amounts between
objects and departments in any fund as tong 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.
This Comprehensive Annual Financial Report 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 Comprehensive Annual Financial Report does not
include the Indian River County School District, the Indian River County Mosquito Control
District or the Cleveland Clinic Indian River Hospital.
Loca / Economy
Indian River County's estimated population of 158,834 was a 2.51% 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 33.8%. Nationally, average ages
have risen due to the increasing age of the baby boomer generation as well as the increase
in life expectancy for all Americans. In addition, Florida continues to be a popular
destination for retirees.
Historically, Indian River County's economy was made up of agriculture (citrus and cattle)
and tourism. Those industries have now been complemented with an increase in health care
and information technology firms, light manufacturing, wholesale and retail trade and
service sector jobs. The top three major employers in Indian River County, providing 9.71%
of total employed persons, are the School District, Cleveland Clinic Indian River Hospital and
Indian River County Government. The unemployment rate has increased from 3.7% in 2019
to 5.9% in 2020.
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
iii
industry. Residents can enjoy these resources at any of the County parks, the Sebastian
Inlet State Park or the Pelican Island National Wildlife Refuge.
While Indian River County was not immune to the economic effects of COVID-19, the County
did experience some positive economic activity. Total property tax values increased from
$18.6 billion in 2019 to $19.6 billion in 2020. The citrus industry saw an increase in
production of 13.8% from 2.9 million boxes in 2019 to 3.3 million in 2020. As reported
previously, the population increased by 2.51%.
Indian River County also experienced some adverse economic data. While property tax
values increased, construction activity decreased with 7.30% less building permits for new
construction issued in 2020 over 2019. Additionally, while citrus production increased,
acreage dedicated to citrus production decreased by 5% from 15,708 acres in 2019 to 14,990
acres in 2020. Lastly, even though the population increased, as indicated above,
unemployment increased as well.
This economic activity data for the County in fiscal year 2020 is further confirmation of the
effects of the pandemic. Please see the Statistical Section schedules 6 and 17 for additional
information.
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:
❖ 58th Avenue from North of 57th Street to 85th Street/CR 510 Full Depth Reclamation -
The $7.3 million project consists of reconstructing the roadway utilizing full depth
reclamation, milting and resurfacing, widening the existing shoulders to 5 feet,
structural asphalt, surface asphalt, drainage improvements, waterline directional
bore, utility adjustments, intersection improvements and signalization at 69th Street,
signing and pavement markings. Funding is provided by a Florida Department of
Transportation (FDOT) Small County Outreach Program (SCOP) grant, gas taxes and
optional sales tax.
❖ 45th Street Beautification Project Phase II - The improvements include enclosing the
Sub -lateral H Canal by culverting certain portions of the canal on the south side of
45th Street, adding a 6 -foot sidewalk and landscaping improvements. The $3.0 million
project will be funded with gas taxes.
iv
❖ Courthouse Renovations - The ongoing $1.9 million renovations include the
construction of a new courtroom on the second floor of the courthouse and conversion
of the first floor Law Library into new office space. The project will be funded from
impact fees, court facilities surcharges and optional sales tax.
❖ State Road 60 (SR60) and 43rd Avenue Intersection Improvements - Through the County
Incentive Grant Program (CIGP) with FDOT, improvements will be completed at the
intersection of State Road 60 and 43rd Avenue. The project includes adding right turn
lanes along SR60, 43rd Avenue reconstruction and widening from a 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 ADA standards. The
FDOT and County agreed to share equally the total estimated construction costs of
$16.1 million. Optional sales tax will provide funding.
❖ Countywide Meter Replacement Program - The County is currently replacing close to
37,000 manual read meters to Automatic Meter Reading (AMR) meters at a cost of
approximately $14.7 million. Funding is provided by the Utilities operating fund.
Operating funds are generated from water and sewer sales.
Major projects or initiatives that were completed during fiscal year 2020 are listed below:
❖ Landfill Segment 3, Cell 2 Expansion, Segment 2 Partial Closure and Landfill Gas
System Expansion - The $13.4 million project consisted of the expansion of a 10.6
acre segment located immediately to the east of the existing Segment 3, Cell 1. The
partial closure of Segment 2 (approximately 25 acres in size) includes closure of the
Segment 1 infill vertical expansion area and final elevations of Segment 2. The
current Segment 3, Cell 1 is approximately 50% full; therefore, the new Segment 3,
Cell 2 was constructed to handle future capacity of the landfill from Indian River
County residents as required by the Florida Department of Environmental Protection.
❖ Sector 5 Beach Restoration - The $6.6 million Sector 5 project placed approximately
123,800 cubic yards of beach compatible sand within the project area. The 3.1 mile
section of shoreline sustained damages from Hurricane Matthew (2016), Hurricane
Irma (2017) and Hurricane Dorian (2019).
❖ Premier Citrus Property - The 243.5 acre parcel located east of Interstate 95 was
purchased due to increased growth within the County. The $6.0 million parcel will
assist with the need for additional sites to dispose of reclaimed water, as well as the
possibility of creating a western corridor park and projects affiliated with the Indian
River Lagoon Initiative.
❖ 1200 37th Street Right -of -Way - This $1.6 million 2.2 acre parcel will be utilized for
right-of-way and stormwater treatment purposes for the future extension of 11th Drive
from 37th Street to 41st Street.
v
❖ Vero Lake Estates Paving from 101St Avenue to 96th Avenue - Construction of the paved
roadway was completed at a cost of $0.7 million.
❖ Old Dixie Highway and Highland Drive Intersection Improvements - The $0.4 million
project included milling and resurfacing, striping, overhead signal beacon system
design, roadside swale grading, culverts, drainage, sidewalk and pedestrian ramp
upgrades within the County right-of-way.
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.
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 for the fiscal year ended September
30, 2019. This was the 37th 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.
vi
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, 2019. This was the fifth
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 Comprehensive
Annual Financial Report 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 2019-2020 fiscal year. This was the 29th
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 Board of County Commissioners Departmental Organization
Assistant County Atlministratoll
General Services
egislative Affairs & Communications Manager
Golf Course
Libraries
Public Works
Utility Services
Emergency
Services
Community
Development
Human
Resources
Office of Mgmt.
& Budget
Information
Technology
Engineering
Wastewater
Treatment
Emergency
Management
Planning Division
Risk
Management
Information Systems &
Telecommunications
Human Services
Veterans Service
Water Production
Road & Bridge
Fire/Rescue
Purchasing
Geographic Info
Systems
Traffic
General &
Engineering
Metropolitan
Planning Org.
Mailroom
Switchboard
Parks &
Recreation
Fleet
Management
Parks
Secondary Road
Construction
Recreation
Stormwater
Aquatic Centers
Shooting Range
Beach
Restoration
Facilities
Management
Customer
Service
Wastewater
Collection
.................................................
Water
Distribution
Solid Waste
Disposal District
Osprey Marsh
Spoonbill Marsh
Emergency Base IRCLHAP/SHIP
Grant Program
Animal Control
911 Coordinator
Building Division
Impact Fees
Ag Extension
Soil & Water
Conservation
Rental
Assistance
Government Finance Officers Association
Certificate of
Achievement
for H;xcellence
in Financial
Reporting
Presented to
Indian River County
Florida
For its Comprehensive Annual
Financial Report
For the Fiscal Year Ended
September 30, 2019
Executive Director/CEO
ix
X
Rehmann
EMPOWER YOUR PURPOSE
INDEPENDENT AUDITORS' REPORT
March 10, 2021
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, 2020, and the
related notes to the financial statements, which collectively comprise the County's basic financial
statements as listed in the table ofcontents.
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.
Rehmann is an independent member of Nexia International.
R member of
exia
The Honorable Board of County Commissioners
Indian River County, Florida
March 10, 2021
Page 2
We believe that the audit evidence we have obtained is sufficientand appropriate to provide a
basis for our audit opinion.
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, 2020, 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 awhole.
2
The Honorable Board of County Commissioners
Indian River County, Florida
March 10, 2021
Page3
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, vvedonot express anopinion
or provide any assurance on them.
Other Reporting Required by Government Auditing Standards
|naccordance with Government Auditing Standards, we have also issued our report dated March 10L
2021. 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 overfinancial reportingand compliance and the results of thattesting, and
notto 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, 2020
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, 2020. 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 -viii of this report.
FINANCIAL HIGHLIGHTS
• The County's overall financial position improved over 2019.
• The assets and deferred outflows of resources of the County exceeded its liabilities and
deferred inflows by $1,059.1 million (net position). Of this amount, $63.7 million
(unrestricted net position) may be used to meet the government's ongoing obligations
to its citizens and creditors. Further information can be found on page 8.
• The government's total net position increased by $33.6 million or 3.3%. Governmental
activities accounted for $31.8 million of this increase and business -type activities
accounted for the remaining $1.8 million. Further information can be found on page 10.
• Governmental activities expenses reflected a 5.9% increase ($201.4 million in 2019 to
$213.3 million in 2020) and business -type activities expenses reflected a 1.2% decrease
($67.3 million in 2019 to $66.5 million in 2020). Further information can be found on
page 10.
• Unassigned fund balance for the general fund was $56.3 million, or an 6.6% increase
from the prior year general fund unassigned fund balance of $52.8 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.
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
5
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2020
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
wilt 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 alt 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 21-23 of this report.
Fund financial statements
A fund is a grouping of related accounts that is used to maintain control over resources that
have been segregated for specific activities or objectives. The County, like other state and
local governments, uses fund accounting to ensure and demonstrate compliance with finance -
related legal requirements. All of the funds of the County can be divided into three categories:
governmental funds, proprietary funds, and fiduciary funds.
Governmental funds. Governmental funds are used to account for essentially the same
functions reported as governmental activities in the government -wide financial statements.
However, unlike the government -wide financial statements, governmental fund financial
statements focus on near-term inflows and outflows of spendable resources, as well as on
balances of spendable resources available at the end of the fiscal year. Such information may
be useful in evaluating a government's near-term financial requirements.
Because the focus of governmental funds is narrower than that of the government -wide
financial statements, it is useful to compare the information presented for governmental funds
with similar information presented for governmental activities in the government -wide
financial statements. By doing so, readers may better understand the long-term impact of the
government's near-term financial decisions. Both the governmental fund Balance Sheet and
the governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balances
provide a reconciliation to facilitate this comparison between governmental funds and
governmental activities.
6
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2020
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 119-166 of this report.
The County adopts an annual appropriated budget for its general fund. A budgetary comparison
statement has been provided for the general fund to demonstrate compliance with this budget.
The basic governmental fund financial statements can be found on pages 24-35 of this report.
Proprietary funds. The County maintains two different types of proprietary funds. Enterprise
funds are used to report the same functions presented as business -type activities in the
government -wide financial statements. The County uses enterprise funds to account for its
water and sewer utility, solid waste disposal district, golf course, and building department.
Internal service funds are an accounting device used to accumulate and allocate costs
internally among the County's various functions. The County uses internal service funds to
account for fleet management, self-insurance, and information technology. Because these
services predominantly benefit governmental rather than business -type functions, they have
been included within governmental activities in the government -wide financial statements.
Proprietary fund financial statements provide the same type of information as the government -
wide financial statements, only in more detail. The proprietary fund financial statements
provide separate information for the water and sewer utility, solid waste disposal district, golf
course, and building department, which are considered to be major funds of the County.
Conversely, internal service funds are combined into a single, aggregated presentation in the
proprietary fund financial statements. Individual fund data for the internal service funds is
provided in the form of combining statements behind the notes to the financial statements on
pages 167-171 of this report. The basic proprietary fund financial statements can be found on
pages 37-43 of this report.
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of
parties outside the government. The Indian River County OPEB Trust holds the assets of the
County's other postemployment benefits. Fiduciary funds are not reflected in the government -
wide financial statements because the resources of those funds are not available to support
the County's own programs. The accounting used for fiduciary funds is much like that used for
proprietary funds. The basic fiduciary fund financial statements can be found on pages 44-45
of this report.
7
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2020
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 47-112 of this report.
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 113-118 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 $1,059.1 million at the close of the fiscal year.
Indian River County Net Position (In Millions)
Current and other assets
Capital, assets
Total assets
Deferred outflfzA is of resources
Other liabilities
Long-term liabilities
Total liabilities
Deferred inflows of resources
Governmental Business -t
Activities Activities Total
2020 2019 2020 2019 2020 2019
322.9 $ 286,8 $ 125.2 $ 130,9 $ 448,1 $ 417.7
596.2 580.6 224.3 217.1 820.5 797,7
919,1 867.4 349,5 348.0 1,268.6 1,215,4
59.8 50,4 4,2 3.7 64.0 54.1
2tX).5 158,6 21,2 19.1 221,7 177.7
27.8 33.9 10.9 12.4 38.7 46.3
228.3 192.5 32,1 31.5 260.4 224,0
12.0 18,5 1,1 13.1 20.0
llet position:
Ilet innestrnent in capital 592.2 869,4 221.3 212,2 813.5 781.6
Restricted 181.9 171.9 . 181.9 171.9
Urtrestritted (deficit) (35.5) (34.5) 99,2 1 (R3, 5 63.7' 72.0
Total. net position 738.ti $ 706.8 $ 320,5 5 318.7 $ 1,059.1 $ 1,025,5
8
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2020
Governmental Activities
In governmental activities, the increase in restricted net position was mainly due to an increase
in net position restricted for capital projects and public safety. The increase in capital projects
restricted net position was mainly caused by lower than expected expenditures for projects to
be completed in future fiscal years. The increase in public safety restricted net position is due
to increased property tax revenue for emergency services and increased public -safety related
impact fees. 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 was due to an increase in
capital purchases and decreasing outstanding debt. The increase in invested in capital assets,
along with the increase in the net pension liability, contributed to the decrease in unrestricted
net position.
Indian River County Total Net Position (In i' Zillions
September 30, 2019 and 2020
net investment in capital..
assets
restricted
un restricted
200
400
600
800
1000
2019
2020
By far, the largest portion of the County's net position (77% or $813.5 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 $181.9 million) represents resources that are
subject to external restrictions on how they may be used. The remaining balance of the
unrestricted net position (6% or $63.7 million) may be used to meet the government's ongoing
obligations to its citizens and creditors.
9
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2020
Indian River County Changes in Net Position (In Millions)
Governmental Business -type
Activities Activities
Total
2020 2019 2020 2019 2020 2019
Revenues:
Program revenues:
Charges for services $ 29.4 $ 28.9 $ 57.9 $ 56.7 $ 87.3 $ 85.6
Operating grants/contributions 48.6 29.4 0.3 0.008 48.9 29.4
Capital grants/contributions 8.4 4.2 8.0 14.0 16.4 18.2
General revenues:
Property taxes 114.4 105.2 114.4 105.2
Sales taxes 26.6 27.5 26.6 27.5
Franchise fees 9.0 9.1 9.0 9.1
Other 8.8 12.2 2.0 3.8 10.8 16.0
Total revenues 245.2 216.5 68.2 74.5 313.4 291.0
Expenses:
General government 32.5 31.4 - 32.5 31.4
Public safety 110.3 100.6 - 110.3 100.6
Physical environment 4.7 1.9 - 4.7 1.9
Transportation 29.2 31.2 - 29.2 31.2
Economic environment 0.7 0.5 - 0.7 0.5
Human services 11.6 9.6 - 11.6 9.6
Culture/recreation 16.5 17.9 16.5 17.9
Court related 7.3 7.9 - - 7.3 7.9
Interest and fiscal charges 0.5 0.4 - 0.5 0.4
Water and sewer - 42.8 45.1 42.8 45.1
Solid waste 15.8 14.7 15.8 14.7
Golf course 2.8 2.9 2.8 2.9
Building 5.1 4.6 5.1 4.6
Total expenses 213.3 201.4 66.5 67.3 279.8 268.7
Increase (decrease) in net position before transfers
Transfers
Increase (decrease) in net position
Net position - beginning
31.9 15.1 1.7 7.2
(0.10) (0.20) 0.10 0.20
31.8 14.9 1.8 7.4
33.6 22.3
33.6 22.3
706.8 691.9 318.7 311.3 1,025.5 1,003.2
Net position - ending $ 738.6 $ 706.8 $ 320.5 $ 318.7 $ 1,059.1 $ 1,025.5
10
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2020
140
120
100
80
60 -
40
20-
0 -
Revenues By Source (In Millions)
Governmental Activities
Fiscal Years 2019 and 2020
4.
5e
enc() a; �� a;�c
Orae a'�1�q, .„zo.
Qet 0
O
J`")e
c�a
FY 2019
• FY 2020
Governmental Activities
• Overall program revenues increased $23.9 million due to increases in operating and
capital grants and contributions, mainly from the CARES Act funding provided to local
governments.
• Overall general revenues increased by $4.8 million due to higher property tax collections
as a result of increased property tax values and increased millage rates for the General
and M.S.T.U. funds (increase of $9.2 million or 8.7%) which was offset by a $3.4 million
decrease in other revenues ($3.3 million was in interest earnings) and a $0.9 million
decrease in sales taxes. These decreases were the result of declining economic
conditions caused by the coronavirus pandemic.
11
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2020
Expenses By Function (In 'lions)
Governmental Activities
Fiscal Years 2019 and
FY 2019
FY 2020
• The governmental activities expenses were $11.9 million higher in 2020 than in 2019.
This was mainly due to increases in public safety salaries and benefits and increases in
human services -related expenditures to provide coronavirus relief to community
agencies.
Business -type Activities
Business -type activities net position increased by $1.8 million. Key elements of this increase
are as follows:
• Overall program revenues decreased $4.5 million. This was mainly due to a $6.0 million
decrease in capital grants and contributions resulting from decreased developer capital
asset contributions. Charges for services increased $1.2 million
• Other revenues decreased $1.8 million due to decreased interest earnings.
12
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2020
• Overall expenses were $0.8 million or 1% higher in 2020 than in 2019. The water and
sewer utilities expenses were $2.3 million or about 5% tower in 2020 than in 2019 due a
decrease in the write-off of outstanding balances under an amnesty program, the
majority of which occurred in 2019. The solid waste expenses were $1.7 million or 7%
higher in 2020 than in 2019 due to landfill expansion -related costs. The golf course had
$0.1 million or less than 1% lower expenses in 2020 than in 2019. The building
department had $0.5 million or 9% higher expenses in 2020 than in 2019 due to increases
in personnel and contracted labor services required to meet service level needs of
developers and builders.
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. Of the total fund balance, 23% ($56.0 million)
constitutes unassigned fund balance, which is available for spending at the County's discretion.
The remainder of fund balance is presented in classifications that comprise a hierarchy based
primarily on the extent to which the County is bound to honor constraints on the specific
purposes for which amounts in those funds can be spent. The County had fund balances in 1)
a nonspendable category for inventories, prepaid items, and advances to other funds ($1.0
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 ($170.6 million), 3) a committed
category for constraints imposed by approval of ordinances and contracts by the Board of
County Commissioners ($2.3 million), and 4) an assigned category for constraints by the
County's intent to use for specific purposes ($9.5 million).
The two largest restricted amounts are in the Impact Fees Fund with a $28.7 million restricted
fund balance and the Optional Sales Tax Fund with a $90.8 million restricted fund balance.
Thirty-seven percent of the Impact Fees Fund ($10.6 million) and thirty-six percent ($32.4
million) of the Optional Sales Tax Fund is slated for major road expansions throughout the
County in fiscal year 2021. 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 $239.4 million, which
is an increase of $7.0 million over the prior year of $232.4 million. Contributing factors to the
$7.0 million increase in fund balance are:
• Fund balance in the General Fund increased by $3.4 million. This was due to increased
tax revenues.
13
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2020
• Fund balance in the Impact Fees Fund increased by $4.9 million due to decreased
expenditures for capital projects slated for future fiscal years.
• Fund balance in the Transportation Fund increased by $0.8 million due to operating
expenditures being lower than anticipated.
• Fund balance in the Emergency Services District Fund increased by $5.0 million mainly
due to an increase in tax revenues because of increasing home values and
reimbursements from CARES Act funding.
• Fund balance in the Beach Restoration Fund decreased by $5.9 million due to
expenditures for the Sector 5 beach renourishment project.
• Fund balance in the Optional Sales Tax Fund increased by $3.2 million due to decreased
expenditures for capital projects slated for future fiscal years.
Proprietary funds
Unrestricted net position (deficit) at the end of the year amounted to $17.2 million in the Solid
Waste Disposal District (SWDD) Fund, ($0.1) million in the Golf Course Fund, $77.6 million in
the County Utilities Fund, and $4.5 million in the County Building 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 $17.8 million increase in operating appropriations between the
original and final amended budget. The main components of the increase are as follows:
• $13.8 million grants appropriations and prior year rollovers for the Senior Resource
Association (SRA) to provide County -wide public transportation
• $2.7 million for capital improvements
• $0.7 million for Virgin Trains legal and professional services
Actual expenditures were $17.6 million lower than anticipated for the following reasons:
• $11.9 million in SRA grant costs not yet expended
• $1.5 million in expenditures previously budgeted in the general fund that were
ultimately paid from the CARES Act fund.
• $1.0 million in unspent professional and other contractual services
• $0.9 million in unspent salary and benefits expenditures
• $0.4 million in unspent Virgin Trains legal and professional services
14
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2020
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, 2020, amounts to $820.5 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 2.8%.
Land
Right-of-way
Buildings and improvements
Equipment
Intangibles
Infrastructure
Construction in progress
Total
Indian River County Capital Assets
(Net of Depreciation, In Millions)
Governmental
Activities
2020 2019
Business -type
Activities Total
2020 2019 2020 2019
$ 137.2 $ 137.2 $ 32.8 $ 26.7 $ 170.0 $ 163.9
66.8 63.2 - 66.8 63.2
154.7 161.9 167.0 171.4 321.7 333.3
30.9 28.5 5.5 4.6 36.4 33.1
2.2 2.4 2.3 2.2 4.5 4.6
151.4 156.4 151.4 156.4
53.0 31.0 16.7 12.2 69.7 43.2
$ 596.2 $ 580.6 $ 224.3 $ 217.1 $ 820.5 $ 797.7
Governmental activities had the following major increases during the fiscal year:
• An increase in right-of-way purchases for 37th Street from US1 to Indian River Boulevard.
• An increase in equipment due to the purchases of emergency services and road and
bridge maintenance equipment.
• An increase in construction -in -progress due to the near completion of the Sector 5 beach
renourishment project, improvements at the Jones Pier conservation area, and
improvements at the Jackie Robinson Training Center.
Governmental activities only major decreases occurred in buildings and improvements and
infrastructure as a result of increasing depreciation on existing assets.
Business -type activities major increases were in land due to a Utilities fund land purchase and
construction in progress due to the countywide water meter replacement project and several
other water and sewer projects.
Business -type activities only major decrease occurred in buildings and improvements as a result
of increasing depreciation on existing assets.
15
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2020
Capital Assets, Net
Total Primary Government
September 30, 2020
I Land
Right of Way
Buildings and Improvements
IJ Equipment
Intangibles
Infrastructure
•• Construction In Progress
Additional information on the County's capital assets can be found in Note 5 on pages 71-72
of this report.
Debt Administration
At the end of the current fiscal year, the County had total debt outstanding of $6.0 million.
The revenue bonds represent bonds secured solely by specified revenue sources.
Indian River County's Outstanding Debt
General Obligation and Revenue Bonds
(In Millions)
General Obligation Debt:
Limited General Oblig. Note, Series 2015
Revenue Bonds/Notes:
Spring Training Facility, Series 2001
Water and Sewer Rev Note, Series 2015
Total
Governmental Business -type
Activities Activities
Total
2020 2019 2020 2019 2020 2019
$ - $ 7.3 $ - $ - $ - $ 7.3
3.9 4.2 - 3.9 4.2
2.1 3.2 2.1 3.2
$ 3.9 $ 11.5 $ 2.1 $ 3.2 $ 6.0 $ 14.7
Additional information on the County's long-term debt can be found in Note 10 on pages 76-
81 of this report.
16
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2020
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES
COVID-19 has had a significant impact on the proposed budget. The County has incurred
additional expenses to respond to this public health crisis. Additionally, it has caused a
significant reduction in various revenues that the County depends upon to fund the provision
of services to the community. County staff has constructed the budget based upon
conservative revenue estimates, per our normal practice. However, there is much more
uncertainty in future projections due to many unknowns about COVID-19 and its potential
impact on the economy going forward. The County has received a CARES Act allocation that
may be used to fund some of the additional expenses necessitated by COVID-19. Staff continues
to develop the CARES Act funding plan and will adjust the budget as appropriate as details are
finalized.
For FY 2020/2021 the tax roll is increasing 5.33% countywide, which provides an additional $5.9
million. However, due to COVID-19, this increase is offset by losses in other revenues, such as
sales tax, state revenue sharing, gas tax, tourist taxes and other revenues, which are expected
to decrease by $5.5 million collectively. Unfortunately, the County's CARES Act allocation
cannot be used to supplant revenue losses and therefore, the burden of these lost revenues is
realized in the reduction of expenditures or the dependence on other revenue sources to
balance the budget.
The County continues to focus on catching up on deferred maintenance and capital item
replacement in the proposed budget. Funding for these items was drastically reduced to absorb
the funding reduction during the previous economic downturn. White a concerted effort has
been made to catch up on these items over the last several years, a substantial amount of work
remains. The approved budget, which is the second year into the original five-year plan,
includes $8,681,900 in funding for these projects. Although challenging to fund given the
current reduction in major revenues, staff continues to prioritize these projects.
The approved budget for FY 2020/2021 is $393,534,815, a decrease of $36,964,116 or 8.59%
from the prior year. The largest individual expense in the budget is Personnel Services. In
total, there is a decrease 0.95 net full-time (FT) positions for FY 2020/2021; BCC departments
are decreasing one FT position, while Constitutional Officers reflect a net increase of 0.05 FT
positions.
There are changes in the miltage rates for fiscal year 2020/2021. Overall, the countywide
miltage rate is decreasing by 6.75%; this is reflective of the General Fund miltage rate remaining
the same, combined with the elimination of the Land Acquisition Bond miltage of 0.2568 mills.
The M.S.T.U. Fund miltage rate remains unchanged at 1.1506, while the Emergency Services
District miltage is at 2.3531 mills, which is a 0.0124 or 0.52% decrease.
Within the Solid Waste Fund, residential assessment rates are increasing by $3.47 or 2.87% to
$124.37 per Equivalent Residential Unit. Commercial rates are increasing by $2.29 or 5.45% to
$44.29 per Waste Generation Unit (W.G.U). The readiness -to -use fee is $27.42 per W.G.U., an
increase of $2.73 or 11.06% from last fiscal year.
17
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2020
As recommended in the Comprehensive Water, Wastewater, and Reclaimed Water Rate Study,
an annual CPI adjustment of 1.5% was included for FY 2020/2021 in the Utilities Fund. In
addition, four Streetlighting District assessments are decreasing as a result of Florida Power Et
Light's lower electric rates when compared to those of the City of Vero Beach. The Oceanside
Street Paving M.S.B.U. assessment of $415 per lot is scheduled to sunset in FY 2020/2021, as
the five-year implementation is now complete.
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the County's finances for all
those with an interest in the government's finances. Questions concerning any of the
information provided in this report or requests for additional financial information should be
addressed to:
Clerk of the Circuit Court and Comptroller
Attention: Comptroller Division
1801 27th Street
Vero Beach, FL 32960
18
19
20
Indian River County, Florida
Statement of Net Position
September 30, 2020
Governmental Business -type
Activities Activities
Total
ASSETS
Current assets:
Cash and investments $ 284,089,967 $ 69,867,937 $ 353,957,904
Accounts receivable - net 5,149,386 3,333,889 8,483,275
Internal balances 400,527 (400,527)
Due from other governments 28,620,236 743,320 29,363,556
Interest receivable 758,812 717,915 1,476,727
Inventories 527,459 1,461,946 1,989,405
Prepaid expenses 2,044,828 12,308 2,057,136
Current restricted assets:
Cash and investments 1,115,146 45,138,785 46,253,931
Total current assets 322,706,361 120,875,573 443,581,934
Non-current assets:
Capital assets - non -depreciable 261,934,290 51,636,853 313,571,143
Capital assets - depreciable 724,073,336 499,856,779 1,223,930,115
Capital assets - accumulated depreciation (389,805,593) (327,176,924) (716,982,517)
Non-current restricted assets:
Special assessments receivable 163,190 1,560,028 1,723,218
Impact fees receivable 260,846 260,846
Liens receivable 2,527,412 2,527,412
Total non-current assets 596,365,223 228,664,994 825,030,217
Total assets 919,071,584 349,540,567 1,268,612,151
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions 55,220,257 3,651,419 58,871,676
Deferred outflows related to other postemployment benefits 4,519,939 408,330 4,928,269
Deferred charge on refunding 80,055 159,902 239,957
Total deferred outflows of resources 59,820,251 4,219,651 64,039,902
LIABILITIES
Current liabilities (payable from current assets):
Accounts payable 19,911,675 3,924,195 23,835,870
Retainage payable 392,219 392,219
Claims payable 2,649,000 - 2,649,000
Due to other governments 638,634 42,201 680,835
Other deposits held in escrow 23,430 1,000 24,430
Unearned revenues 2,436,402 1,435,277 3,871,679
Accrued compensated absences 6,571,403 816,642 7,388,045
Pollution remediation costs payable 63,533 251,300 314,833
Current liabilities (payable from current restricted assets):
Accounts payable 11,895 11,895
Retainage payable 606,636 - 606,636
Accrued interest payable 440 2,932 3,372
Customer deposits 199,689 3,460,069 3,659,758
Notes payable 1,058,000 1,058,000
Lease payable 3,381 - 3,381
Closure and maintenance costs payable - 1,949,965 1,949,965
Bonds payable 305,000 - 305,000
Total current liabilities 33,409,223 13,345,695 46,754,918
Non-current liabilities:
Accrued compensated absences 7,759,680 307,728 8,067,408
Pollution remediation costs payable 1,546,467 - 1,546,467
Claims payable 5,295,000 - 5,295,000
Net pension liability 175,502,277 11,732,554 187,234,831
Net other postemployment benefits liability 1,254,552 130,088 1,384,640
Notes payable 1,074,000 1,074,000
Lease payable 8,752 8,752
Closure and maintenance costs payable 5,491,706 5,491,706
Bonds payable, net of premium and discount 3,560,000 - 3,560,000
Total non-current liabilities 194,926,728 18,736,076 213,662,804
Total liabilities 228,335,951 32,081,771 260,417,722
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions
Deferred inflows related to other postemployment benefits
Total deferred inflows of resources
2,568,596
9,462,323
242,261 2,810,857
886,893 10,349,216
12,030,919
1,129,154 13,160,073
NET POSITION
Net investment in capital assets 592,232,052 221,342,196 813,574,248
Restricted for:
Transportation/road projects 26,601,322 26,601,322
Public safety 30,161,671 - 30,161,671
Court related costs 1,385,758 - 1,385,758
Housing assistance 1,397,192 - 1,397,192
Capital projects 94,121,082 - 94,121,082
Beach renourishment 16,129,172 - 16,129,172
Culture/recreation 8,598,384 - 8,598,384
Debt service 627,116 - 627,116
Environmentat conservation/preservation 1,083,205 - 1,083,205
Special assessment projects 1,771,754 - 1,771,754
Unrestricted (deficit) (35,583,743) 99,207,097 63,623,354
Total net position $ 738,524,965 $ 320,549,293 $ 1,059,074,258
The accompanying notes are an integral part of the financial statements.
21
Indian River County, Florida
Statement of Activities
For the Year Ended September 30, 2020
Functions/Programs Expenses
Primary Government:
Governmental activities:
Program Revenues
Operating Grants Capital Grants
Charges for and and
Services Contributions Contributions
General government $ 32,530,843 $ 8,216,420 $ 15,397,903 $ 2,010,114
Public safety 110,273,562 8,668,917 16,059,107 -
Physical environment 4,689,444 2,150 134,168 -
Transportation 29,192,110 7,268,659 6,834,320 2,544,110
Economic environment 731,507 - 57,002 -
Human services 11,647,461 314,202 9,645,195 -
Culture/recreation 16,485,742 2,106,421 204,124 3,798,663
Court related 7,286,197 2,816,548 258,770 -
Interest and fiscal charges 496,647 -
Total governmentat activities 213,333,513 29,393,317 48,590,589 8,352,887
Business -type activities:
Water and sewer 42,817,472 34,484,220
Solid waste 15,828,035 16,638,875
Golf course 2,814,165 3,234,590
Building 5,029,336 3,556,867
Total business -type activities 66,489,008 57,914,552
Total primary government
47,311
193,378
8,029,748
240,689 8,029,748
$ 279,822,521 $ 87,307,869 $ 48,831,278 $ 16,382,635
General revenues:
Property taxes, levied for general purposes
Property taxes, levied for debt service
Sales and use taxes
Franchise fees, levied on gross receipts
Interest earnings
Miscellaneous
Transfers
Total general revenues and transfers
Change in net position
Net position - beginning
Net position - ending
The accompanying notes are an integral part of the financial statements.
22
Net (Expense) Revenue and
Changes in Net Position
Governmental Business -type
Activities Activities
Total
$ (6,906,406) $ $ (6,906,406)
(85,545,538) (85,545,538)
(4,553,126) (4,553,126)
(12,545,021) (12,545,021)
(674,505) (674,505)
(1,688,064) (1,688,064)
(10,376,534) (10,376,534)
(4,210,879) (4,210,879)
(496,647) (496,647)
(126,996,720) (126,996,720)
(256,193) (256,193)
1,004,218 1,004,218
420,425 420,425
(1,472,469) (1,472,469)
(304,019) (304,019)
(126, 996, 720)
(304,019) (127,300,739)
109,831,793 - 109,831,793
4,608,719 4,608,719
26,552,956 26,552,956
9,005,020 9,005,020
5,104,542 1,991,158 7,095,700
3,745,498 6,263 3,751,761
(107, 516) 107,516 -
158,741,012
2,104,937 160,845,949
31,744,292 1,800,918 33,545,210
706,780,673 318,748,375 1,025,529,048
$ 738,524,965 $ 320,549,293 $ 1,059,074,258
23
Indian River County, Florida
Balance Sheet
Governmental Funds
September 30, 2020
General
Impact
Fees
Transportation
ASSETS
Cash and investments $ 63,132,189 $ 28,890,087 $ 10,013,970
Accounts receivable 1,634,446 2,957
Special assessments receivable - 163,190
Due from other funds 433,421
Due from other governments 16,786,376 169,844 588,036
Interest receivable 130,920 59,261 195,712
Inventories 208,855 -
Prepaids and other assets 309,432 - 13,365
Advances to other funds 183,568 -
Total assets $ 82,819,207 $ 29,119,192 $ 10,977,230
LIABILITIES
Accounts payable
Retainage payable
Due to other funds
Due to other governments
Other deposits held in escrow
Unearned revenues
Other deposits
Total liabilities
5,770,007 $ 294,107 $ 951,270
5,163
517,431 -
560,087 78,368 -
185,109 -
541,449 - -
23,430
7,602,676 372,475 951,270
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - special assessments - - 338,395
Unavailable revenue - ambulance services - -
Unavailable revenue - state and federal grants 16,068,984 343,403
Unavailable revenue - investment interest 38,978 17,848 6,176
Total deferred inflows of resources 16,107,962 17,848 687,974
FUND BALANCES
Nonspendable:
Inventories 208,855
Prepaid items 309,432 - 13,365
Advances to other funds 259,687 -
Restricted for:
Transportation/road improvements - 18,477,797 -
Court -related costs and improvements - -
Housing assistance - -
Law enforcement/public safety - 1,817,217
Fire/emergency services - 1,298,911 -
Tourism -related activities -
Beach renourishment - - -
Boating related projects -
Library services 212,195
Land acquisition -
Stormwater, street lighting, and other special assessments - - -
Voting/election activities - - -
Coronavirus assistance -
Debt service
Capital projects 1,626,893
Parks/recreational projects 815,990 5,295,856 -
Committed to:
Economic incentives 1,022,573 -
Environmental conservation/preservation
Law enforcement/public safety - -
Library services 33,784 - -
Parks/recreational projects 158,428
Assigned to:
Law enforcement/public safety - -
Transportation/road improvements - 9,324,621
Unassigned (deficit) 56,299,820
Total fund balances 59,108,569 28,728,869 9,337,986
Total liabilities, deferred inflows and fund balances $ 82,819,207 $ 29,119,192 $ 10,977,230
The accompanying notes are an integral part of the financial statements.
24
Emergency
Services
District
Beach Restoration
Optional Other Total
Sales Governmental Governmental
Tax Funds Funds
$ 20,559,843 $ 11,671,873 $ 90,440,820 $ 25,350,490 $ 250,059,272
2,217,326 - 61,000 439,166 4,354,895
- - - 163,190
376,810 851,024 5,159 1,666,414
617,314 4,604,811 3,583,196 2,230,872 28,580,449
43,558 23,917 189,405 48,063 690,836
48,591 - 22,251 279,697
21,057 250 113,778 457,882
183,568
$ 23,884,499 $ 16,300,851 $ 95,125,445 $ 28,209,779 $ 286,436,203
1,703,996 $ 164,476
1,703,996
2,098,725
617,315
13,119
2,729,159
1,979,996 $ 3,145,976 $ 14,009,828
594,216 7,257 606,636
932,024 1,449,455
179 638,634
14,580 199,689
1,894,953 2,436,402
23,430
164,476 2,574,212
4,604,811
5,994,969 19,364,074
1,703,556 1,736,057
7,203 57,044 14,447
4,612,014 1,760,600
338,395
2,098,725
25,074,126
154,815
1,750,504 27,666,061
48,591 22,251 279,697
21,057 250 113,778 457,882
259,687
6,121,639 24,599,436
1,279,250 1,279,250
1,373,953 1,373,953
4,593,974 6,411,191
19,381,696 - 20,680,607
1,168,169 1,168,169
11,524,111 - - 11,524,111
1,333,844 1,333,844
212,195
1,083,205 1,083,205
1,771,754 1,771,754
544 544
27,133 27,133
- 627,116 627,116
90,790,633 92,417,526
6,111,846
19,451,344
11,524,361 90,790,633
23,884,499 $ 16,300,851 $ 95,125,445
25
1,022,573
1,042,421 1,042,421
76,921 76,921
33,784
158,428
146,169 146,169
9,324,621
(317,815) 55,982,005
20,464,306 239,406,068
28,209,779 $ 286,436,203
Indian River County, Florida
Reconciliation of Total Governmental Fund Balances
to Net Position of Governmental Activities
September 30, 2020
Total governmental fund balances
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets used in governmental activities are not financial resources and, therefore, are not reported
in the funds.
Long-term liabilities, including bonds payable ($3,784,945), accrued compensated absences ($14,136,244)
capital leases ($12,133), accrued interest payable ($440), and accrued pollution remediation costs ($1,610,000),
are not due and payable in the current period and, therefore, not reported in the funds.
On the governmental fund statements, a net pension or OPEB plan liability is not recorded until an amount
is due and payable and the plan's fiduciary net position is not sufficient for payment of those benefits. On
the statement of net position, the County's proportionate share of the net pension liability ($167,249,452)
of the cost-sharing defined benefit pension plans in which the County participates is reported. The County's
net OPEB liability ($1,241,122) of the single employer defined benefit plan is also reported on the statement
of net position. Additionally, deferred outflows ($48,089,138) and deferred inflows ($2,547,541) related
to pensions and deferred outflows ($4,460,600) and deferred inflows ($9,343,207) related to OPEB are
also reported.
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.
Accrued interest receivable is not recognized in the current period because the resources are not available
and, therefore, not reported in the funds.
Internal service funds are used by management to charge the costs of certain activities, such as insurance,
fleet, and information technology services, to individual funds. The assets and liabilities of the internal
service funds are included in governmental activities in the statement of net position.
$ 239,406,068
594,610,308
(19,543,762)
(127,831,584)
27,511,246
154,815
24,217,874
Net position of governmental activities $ 738,524,965
The accompanying notes are an integral part of the financial statements.
26
27
Indian River County, Florida
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended September 30, 2020
General
Impact
Fees
Transportation
REVENUES
Taxes $ 76,282,083 $ - $ -
Permits, fees and special assessments 9,462,719 7,500,725 490,819
Intergovernmental 17,883,159 3,081,998
Charges for services 8,303,097 - 95,538
Judgments, fines and forfeits 1,067,687 500
Interest 1,519,989 422,066 156,602
Miscellaneous 4,949,097 6,000 419,027
Total revenues 119,467,831 7,928,791 4,244,484
EXPENDITURES
Current:
General government 24,329,577 658,555 342,210
Public safety 55,247,350
Physical environment 325,033 1,001,821
Transportation 4,202,981 1,424,274 13,873,064
Economic environment 473,417 -
Human services 5,298,834
Culture/recreation 11,117,375 900,282
Court related 5,979,428 -
Debt service:
Principal 3,314
Interest and other fiscal charges 279
Capital projects
Total expenditures 106,977,588 2,983,111 15,217,095
Excess of revenues over (under) expenditures 12,490,243 4,945,680 (10,972,611)
OTHER FINANCING SOURCES (USES)
Insurance recoveries - 111,746
Transfers in 4,216,086 11,724,151
Transfers out (13,292,530) - (77,319)
Total other financing sources (uses) (9,076,444) 11,758,578
Net change in fund balances 3,413,799 4,945,680 785,967
Fund balances at beginning of year 55,694,770 23,783,189 8,552,019
Fund balances at end of year $ 59,108,569 $ 28,728,869 $ 9,337,986
The accompanying notes are an integral part of the financial statements.
28
Emergency Optional Other Total
Services Beach Sates Governmental Governmental
District Restoration Tax Funds Funds
$ 34,801,213 $ 1,017,849 $ 18,984,618 $ 9,907,705 $ 140,993,468
505,025 17,959,288
355,120 76,028 5,732 12,336,388 33,738,425
7,194,148 1,782,726 17,375,509
19,000 - 310,841 1,398,028
506,083 230,101 1,460,299 422,874 4,718,014
517,727 - 1,593,398 951,167 8,436,416
43,393,291 1,323,978
22,044,047 26,216,726 224,619,148
- - 2,259,010 27,589,352
37,826,281 2,374,605 95,448,236
- 392,439 1,719,293
7,134,865 26,635,184
246,593 720,010
6,153,560 11,452,394
7,432,799 2,221,384 21,671,840
556,673 6,536,101
7,558,000 7,561,314
- 325,774 326,053
17,302,374 - 17,302,374
37,826,281 7,432,799 17,302,374 29,222,903 216,962,151
5,567,010 (6,108,821)
287,126
4,741,673 (3,006,177) 7,656,997
193,933
(802,755) - (1,491,475)
(515,629)
5,051,381
14,399,963
193,933 (1,491,475)
(5,914,888) 3,250,198
17,439,249 87,540,435
398,872
1,636,061 17,770,231
(3,115,663) (18,779,742)
(1,479,602) (610,639)
(4,485,779) 7,046,358
24,950,085 232,359,710
$ 19,451,344 $ 11,524,361 $ 90,790,633 $ 20,464,306 $ 239,406,068
29
Indian River County, Florida
Reconciliation of the Statement of Revenues,
Expenditures, and Changes in Fund Balances of Governmental Funds
to the Statement of Activities
For the Year Ended September 30, 2020
Net change in fund balances - total governmental funds $ 7,046,358
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 38,606,865
Less current year adjustments to capital assets (132,312)
Less current year toss on assets (133,616)
Less current year depreciation (22,909,661)
15,431,276
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 290,000
Note principal payment 7,268,000
Capital lease 3,314
Pollution remediation costs 5,300 7,566,614
Changes in accrued compensated absences do not require the use of current financial
resources and, therefore, are not reported as expenditures in governmental funds. (1,676,053)
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 charge on refunding amortization expense (170,872)
Accrued capital lease interest expense 278 (170,594)
Governmental funds report contributions in defined benefit pension plans as expenditures.
However, in the statement of activities, the amount contributed to defined benefit pension
plans reduces future net pension liabilities and is reported as part of deferred outflows of
resources.
In the statement of activities, pension expense is recorded for the County's proportionate share
of collective pension expense of the cost-sharing defined benefit plans in which the County
participates. Also included in the statement of activities is the County's OPEB expense for
the single employer defined benefit plan.
Internal service funds are used by management to charge the costs of insurance, fleet and
information technology services to individual funds. The net costs of the
internal service funds are reported in governmental activities.
Governmental funds report non-exchange transactions when the applicable eligibility
requirements have been met and resources are available. However, in the statement
of activities, non-exchange transactions are recognized when the eligibility requirements
are met. This is the net number of the prior year and current year accrual.
Some interest revenues reported in the statement of activities do not provide current
financial resources, therefore, are not reported as revenues in governmental funds.
This is the net number of the prior year and current year accrual.
3,313,177
(23,000,231)
2,605,937
20,773,173
(145,365)
Change in net position of governmental activities $ 31,744,292
The accompanying notes are an integral part of the financial statements.
30
Indian River County, Florida
Statement of Revenues, Expenditures, and
Changes in Fund Balances - Budget and Actual
General Fund
For the Year Ended September 30, 2020
REVENUES
Taxes
Permits, fees and special assessments
Intergovernmental
Charges for services
Judgments, fines and forfeits
Interest
Miscellaneous
Total revenues
EXPENDITURES
Current:
General government
Public safety
Physical environment
Transportation
Economic environment
Human services
Culture/recreation
Court related
Debt service:
Principal
Interest and other fiscal charges
Total expenditures
Excess of revenues over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
$
75, 018,191
8,948,050
14,392,886
10,504,728
1,211,963
362,024
4,037,884
$ 75,018,191
8,948,050
28,572,158
8,931,899
1,161,963
362,024
4,439,800
$
76,282,083
9,462,719
17,883,159
8,303,097
1,067,687
1,519,989
4,949,097
$ 1,263,892
514,669
(10,688,999)
(628,802)
(94,276)
1,157, 965
509,297
114,475,726
127,434,085
119,467,831
(7,966,254)
25,117,126 26,623,060
55,479,754 56,009,586
510,076 572,724
1,160,000 15,034,612
503,942 509,740
5,829,644 6,094,785
11,678,894 13,558,970
6,507,840 6,158,232
24,329,577
55,247,350
325,033
4,202,981
473,417
5,298,834
11,117,375
5,979,428
3,314
279
2,293,483
762,236
247,691
10,831,631
36,323
795,951
2,441,595
178,804
(3,314)
(279)
106,787,276
124,561,709
106,977,588
17,584,121
7,688,450
2,872,376
12,490,243
9,617,867
1,597,902
(11,934,745)
2,670,640
(13,292,531)
4,216,086
(13,292,530)
1,545,446
1
(10, 336, 843 )
(10,621,891)
(9,076,444)
1,545,447
(2,648,393)
(7,749,515)
3,413,799 $ 11,163,314
2,648,393
7,749,515
55,694,770
$
$
$ 59,108,569
The accompanying notes are an integral part of the financial statements.
31
Indian River County, Florida
Statement of Revenues, Expenditures, and
Changes in Fund Balances - Budget and Actual
Impact Fees Fund
For the Year Ended September 30, 2020
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
REVENUES
Permits, fees and special assessments $ 4,179,997 $
Interest 47,500
Miscellaneous
Total revenues 4,227,497
EXPENDITURES
General government
Public safety
Transportation
Culture/ recreation
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
4,179,997 $
47,500
7,500,725 $
422,066
6,000
3,320,728
374,566
6,000
4,227,497
7,928,791 3,701,294
467,670 1,049,978
175,000 175,000
5,152,000 10,593,667
1,041,913 2,989,961
658,555
1,424,274
900,282
391,423
175,000
9,169,393
2,089,679
6,836,583 14,808,606
2,983,111 11,825,495
(2,609,086) (10,581,109)
4,945,680 $ 15,526,789
2,609,086 10,581,109 23,783,189
- $ 28,728,869
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
Transportation Fund
For the Year Ended September 30, 2020
REVENUES
Permits, fees and special assessments
Intergovernmental
Charges for services
Judgments, fines and forfeits
Interest
Miscellaneous
Total revenues
EXPENDITURES
General government
Physical environment
Transportation
Total expenditures
Excess of revenues over (under) expenditures
OTHER FINANCING SOURCES (USES)
Insurance recoveries
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
$
451,250 $ 451,250
3,042,779 3,042,779
92,150 92,150
42,750 42,750
373,825 373,825
$ 490,819 $
3,081,998
95,538
500
156,602
419,027
39,569
39,219
3,388
500
113,852
45,202
4,002,754 4,002,754
4,244,484
241,730
362,756 373,867
1,078,028 1,211,622
15,003,150 15,998,530
342,210
1,001,821
13,873,064
31,657
209,801
2,125,466
16,443, 934 17, 584, 019
15,217,095 2,366,924
(12,441,180) (13,581,265) (10,972,611) 2,608,654
11,692,691 11,840,401
(77,319) (77,319)
111,746 111,746
11,724,151 (116,250)
(77, 319) -
11,615,372 11,763,082
11,758,578
(4,504)
(825,808) (1,818,183)
785,967 $ 2,604,150
825,808 1,818,183
8,552,019
$
$
$ 9,337,986
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
Emergency Services District Fund
For the Year Ended September 30, 2020
REVENUES
Taxes
Intergovernmental
Charges for services
Judgments, fines and forfeits
Interest
Miscellaneous
Total revenues
EXPENDITURES
Public safety
Total expenditures
Excess of revenues over (under) expenditures
OTHER FINANCING SOURCES (USES)
Insurance recoveries
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
34,231,964
52,250
6,167,405
4,750
71,250
190
34,231,964
68,706
6,399,492
4,750
71,250
190
$ 34,801,213 $
355,120
7,194,148
19,000
506,083
517,727
569,249
286,414
794,656
14,250
434,833
517,537
40,527,809
40,776,352
43,393,291 2,616,939
40,014,095
43,237,148
37,826,281 5,410,867
40,014,095
43,237,148
37,826,281 5,410,867
513,714
(2,460,796)
5,567,010 8,027,806
(673,492) (826,659)
287,126 287,126
(802,755) 23,904
(673,492) (826,659)
(515,629) 311,030
(159,778) (3,287,455)
5,051,381 $ 8,338,836
159,778 3,287,455
14,399,963
$ - $ 19,451,344
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
Beach Restoration Fund
For the Year Ended September 30, 2020
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes $ 997,500 $ 997,500 $ 1,017,849 $ 20,349
Intergovernmental 1,748,751 76,028 (1,672,723)
Interest 9,500 9,500 230,101 220,601
Total revenues 1,007,000 2,755,751 1,323,978 (1,431,773)
EXPENDITURES
Culture/recreation 2,112,704 11,114,057 7,432,799 3,681,258
Total expenditures 2,112,704 11,114,057 7,432,799 3,681,258
Excess of revenues over (under) expenditures (1,105,704) (8,358,306) (6,108,821) 2,249,485
OTHER FINANCING SOURCES (USES)
Transfers in
Total other financing sources (uses)
193,933 193,933 193,933
193,933 193,933 193,933
Net change in fund balances (911,771) (8,164,373) (5,914,888) $ 2,249,485
Fund balances at beginning of year 911,771 8,164,373 17,439,249
Fund balances at end of year $ $ - $ 11,524,361
The accompanying notes are an integral part of the financial statements.
35
36
ASSETS
Current assets:
Cash and investments
Accounts receivable - net
Due from other funds
Due from other governments
Interest receivable
Inventories
Prepaids and other assets
Current restricted assets:
Cash and investments
Total current assets
Non-current assets:
Capital assets - non -depreciable
Capital assets - depreciable
Capital assets - accumulated depreciation
Non-current restricted assets:
Special assessments receivable
Impact fees receivable
Liens receivable
Total non-current assets
Total assets
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions
Deferred outflows related to other postemployment benefits
Deferred amounts on refundings
Total deferred outflows of resources
LIABILITIES
Current liabilities (payable from current assets):
Accounts payable
Retainage payable
Due to other funds
Claims payable
Due to other governments
Other deposits
Unearned revenues
Pollution remediation costs payable
Accrued compensated absences
Total current liabilities (payable from current assets)
Current liabilities (payable from restricted assets):
Accounts payable
Accrued interest payable
Closure and maintenance costs payable
Notes payable
Customer deposits
Total current liabilities (payable from restricted assets)
Total current liabilities
Non-current liabilities:
Accrued compensated absences
Advance from other funds
Claims payable
Closure and maintenance costs payable
Net pension liability
Net other postemployment benefits liability
Notes payable
Total non-current liabilities
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions
Deferred inflows related to other postemployment benefits
Total deferred inflows of resources
NET POSITION
Net investment in capital assets
Unrestricted (deficit)
Total net position
Indian River County, Florida
Statement of Fund Net Position
Proprietary Funds
September 30, 2020
Business -type Activities - Enterprise Funds
Solid Waste
Disposal
District
Golf
Course
County
Utilities
County
Building
Governmental
Activities
Internal
Total Service Funds
17,584,575 $
152,361
135,462
271,877
41,673
894,703 $ 43,722,873
1,664 3,139,075
3,624
1,585
111,769
11,500
453,088
658,789
1,350,177
808
8,106,914 37,031,871
7,665,786 $
40,789
14,731
15,868
69,867,937 $ 35,145,841
3,333,889 794,491
135,462 -
743,320 39,787
717,915 67,976
1,461,946 247,762
12,308 1,586,946
45,138,785
26,292,862 1,024,845 86,356,681
7,737,174
121,411,562 37,882,803
12,522,347
38,375,210
(17,056,903)
6,622,459
5,101,567
(2,243,632)
32,428,273
455,808,111
(307,444,947)
1,560,028
260,846
2,527,412
63,774
571,891
(431,442)
51,636,853
499,856,779
(327,176,924)
1,560,028
260,846
2,527,412
134,672
4,704,510
(3,247,457)
33,840,654 9,480,394 185,139,723
204,223 228,664,994 1,591,725
60,133,516 10,505,239 271,496,404
7,941,397
350,076,556 39,474,528
217,640 176,482 2,662,130
24,157 6,938 303,793
159,902
595,167
73,442
3,651,419
408,330
159,902
504,765
59,339
241,797
183,420 3,125,825
668,609 4,219,651
564,104
966,814 51,669 2,668,208
392,219
352,421
49,038
11,654 -
1,000
69,938 12,195
251,300
29,645 612,578
237,504
30,547
1,353,144
125,381
3,924,195
392,219
352,421
42,201
1,000
1,435,277
251,300
816,642
5,901,847
2,649,000
93,691
1,015,852
516,327 3,936,500
1,746,576
7,215,255 8,644,538
11,895
2,932
1,949,965
1,058,000
165,243 - 3,294,826
11,895
2,932
1,949,965
1,058,000
3,460,069
2,115,208 4,367,653
6,482,861
3,131,060 516,327 8,304,153
1,746,576 13,698,116
8,644,538
15,700 43,151 227,962
183,568
5,491,706
664,449 558,460 8,540,918
8,115 2,491 97,520
1,074,000
20,915
1,968,727
21,962
307,728 101,148
5,295,000
183,568
5,491,706
11,732,554
130,088
1,074,000
1,626,471
13,430
6,179,970 787,670 9,940,400
2,011,604
18,919,644 7,036,049
9,311,030 1,303,997 18,244,553
3,758,180 32,617,760 15,680,587
10,033 17,837 214,076
53,286 15,577 661,252
63,319 33,414 875,328
315
156,778
157,093
242,261
886,893
1,129,154
21,055
119,116
140,171
33,826,409 9,480,394 177,849,348 186,045 221,342,196 1,418,822
17,174,555 (129,146) 77,653,000 4,508,688 99,207,097 22,799,052
$ 51,000,964 $ 9,351,248 $ 255,502,348 $ 4,694,733 $ 320,549,293 $ 24,217,874
The accompanying notes are an integral part of the financial statements.
37
Indian River County, Florida
Statement of Revenues, Expenses, and Changes in Fund Net Position
Proprietary Funds
For the Year Ended September 30, 2020
OPERATING REVENUES
Charges for services
Total operating revenues
Business -type Activities -
Solid Waste
Disposal Golf
District Course
$ 16,638,875 $ 3,234,590
16,638,875 3,234,590
OPERATING EXPENSES
Personal services 865,765 633,933
Material, supplies, services and other operating 13,790,934 1,912,628
Depreciation 1,171, 336 252,108
Total operating expenses 15,828,035 2,798,669
Operating income (loss) 810,840 435,921
NONOPERATING REVENUES (EXPENSES)
Intergovernmental 193,378
Interest income 463,843 17,359
Gain on disposal of assets 4,220 156
Interest expense (15,496)
Loss on disposal of assets -
Total nonoperating revenues (expenses) 661,441 2,019
Income (loss) before transfers and capital grants
and contributions 1,472,281 437,940
Capital grants and contributions 18,553
Transfers (777,875)
Change in net position 694,406 456,493
Total net position - beginning 50,306,558 8,894,755
Total net position - ending $ 51,000,964 $ 9,351,248
The accompanying notes are an integral part of the financial statements.
38
Enterprise Funds
County County
Utilities Building
$
Total
Governmental
Activities -
Internal
Service Funds
34,484,220 $ 3,556,867 $ 57,914,552 $ 35,437,701
34,484,220 3,556,867 57,914,552 35,437,701
11,073,448 3,054,391 15,627,537 3,708,834
17, 269, 676 1,894,988 34, 868, 226 30, 332,140
14,335,660 79,957 15,839,061 397,905
42,678,784 5,029,336 66,334,824 34,438,879
(8,194,564) (1,472,469)
(8,420,272) 998,822
193,378 8,813
1,383,740 126,216 1,991,158 523,889
1,887 6,263
(138, 517) - (154,013)
(171) (171) (1,254)
1,246,939 126,216
2,036,615 531,448
(6,947,625) (1,346,253) (6,383,657) 1,530,270
8,058,506 8,077,059 173,672
885,391 107,516 901,995
1,996,272 (1,346,253) 1,800,918 2,605,937
253,506,076 6,040,986 318,748,375 21,611,937
$ 255,502,348 $ 4,694,733 $ 320,549,293 $ 24,217,874
Indian River County, Florida
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2020
Business -type Activities -
Solid Waste
Disposal
District
Golf Course
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $ 16,568,032 $ 3,259,917
Cash paid to suppliers for goods and services (14,737,911) (2,019,923)
Cash paid to employees for services (795,023) (582,772)
Net cash provided by (used in) operating activities 1,035,098 657,222
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Transfers (777,875)
Operating grants 1,011,083 2,387
Net cash provided by (used in) noncapital financing activities 233,208 2,387
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Principal payments - bonds/notes
Interest paid on tong -term debt - (15,496)
Payments on advances from other funds (352,942)
Proceeds from advances from other funds 316,900
Proceeds from sales of capital assets 4,220 156
Purchase of capitat assets (1,623,052) (384,905)
Bond paying agent fees
Capital contributed by others
Net cash flows provided by (used in) capital
and related financing activities (1,618,832) (436,287)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest and dividends on investments
Net cash provided by investing activities
Net increase (decrease) in cash and investments
Cash and investments at beginning of year
Cash and investments at end of year
484,932 18,482
484,932 18,482
134,406 241,804
25,557,083 652,899
$ 25,691,489 $ 894,703
Classified as:
Current assets $ 17,584,575 $ 894,703
Restricted assets 8,106,914 -
Total $ 25,691,489 $ 894,703
The accompanying notes are an integral part of the financial statements.
40
Enterprise Funds
County County
Utilities Building
Total
Governmental
Activities -
Internal
Service Funds
$ 35,065,923 $ 3,967,060 $ 58,860,932 $ 36,603,226
(16,450,403) (1,899,140) (35,107,377) (31,022,082)
(10,140,871) (2,772,662) (14,291,328) (3,494,342)
8,474,649
885,391
66,522
951,913
(704,742) 9,462,227 2,086,802
107,516
1,079,992
901,995
1,187,508 901,995
(1,042,000) (1,042,000)
(52,371) - (67,867)
- (352,942)
- 316,900
1,887 6,263
(16,541,214) (126,015) (18,675,186)
(4,150) (4,150)
3,577,597 3,577,597
(14,060,251) (126,015)
1,492,735 138,707
1,492,735 138,707
(3,140,954) (692,050)
83,895,698
(225,803)
(16,241,385) (225,803)
2,134,856 561,490
2,134,856 561,490
(3,456,794) 3,324,484
8,357,836 118,463,516 31,821,357
$ 80,754,744 $ 7,665,786 $ 115,006,722 $ 35,145,841
$ 43,722,873 $ 7,665,786 $ 69,867,937 $ 35,145,841
37,031,871 - 45,138,785 -
$ 80,754,744 $ 7,665,786 $ 115,006,722 $ 35,145,841
Continued
Indian River County, Florida
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2020
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) $ 810,840 $ 435,921
Adjustments to reconcile operating income to net cash
provided by (used in) operating activities:
Depreciation 1,171,336 252,108
Work in progress reclassified as expense
(Increase) Decrease in assets:
Accounts receivable (38,253) (273)
Due from other funds (452)
Due from other governments (23,638) 10,324
Inventories 5,232
Impact fees receivable
Special assessments receivable - -
Liens receivable
Prepaid expenses (10,262)
Increase (Decrease) in liabilities:
Accounts payable (232,452) (105,359)
Due to other governments (1,514) 3,094
Retainage payable
Customer deposits (8,500)
Closure and maintenance costs payable (713,011)
Pollution remediation costs payable
Net pension liability 126,615 95,480
Deferred inflows of resources related to the net pension liability (24,492) (19,120)
Deferred outflows of resources related to the net pension liability (25,355) (18,469)
Net OPEB liability (6,181) (1,709)
Deferred intflows of resources related to the net OPEB liability (9,649) 1,375
Deferred outflows of resources related to the net OPEB liability 4,971 (2,669)
Unearned revenues - 15,276
Claims payable -
Accrued compensated absences 4,833 (3,727)
Total adjustments
Net cash provided by (used in) operating activities
NONCASH CAPITAL AND RELATED
FINANCING ACTIVITIES
224,258 221,301
$ 1,035,098 $ 657,222
Change in fair value of investments $ 7,320 $
Contributed property, infrastructure, and equipment $ - $
Capital assets purchased through accounts payable $ 14,245 $
The accompanying notes are an integral part of the financial statements.
42
1,496
18,553
Enterprise Funds
County County
Utilities Building
Total
Governmental
Activities -
Internal
Service Funds
$ (8,194,564) $ (1,472,469) $ (8,420,272) $ 998,822
14,335,660 79,957 15,839,061 397,905
2,873 2,873
136,214 (40,789) 56,899 710,228
(452) -
(115,188) 5,800 (122,702) 455,298
68,271 73,503 19,384
235,146 235,146
323,527 323,527
138,220 138,220
(808) 112 (10,958) (367,424)
166,178 (7,636) (179,269) (31,903)
(1,607) 3,372 3,345 -
194,846 194,846 -
(10,191) - (18,691)
- (713,011) -
251,300 251,300
1,660,526 483,628 2,366,249 363,241
(332,527) (96,848) (472,987) (72,741)
(321,207) (93,552) (458,583) (70,265)
(78,505) (19,330) (105,725) (17,226)
63,150 15,549 70,425 13,858
(122,569) (30,181) (150,448) (26,895)
12,195 445,182 472,653
(310,000)
63,709 22,463 87,278 24,520
16,669,213 767,727 17,882,499 1,087,980
$
8,474,649 $ (704,742) $ 9,462,227 $ 2,086,802
$ 10,206 $ 1,599 $ 20,621 $ 10,428
$ 5,010,563 $ - $ 5,029,116 $ 173,672
$ 927,882 $ 18,178 $ 960,305 $ 172,903
43
Indian River County, Florida
Statement of Fiduciary Net Position
Fiduciary Funds
September 30, 2020
Other
Postemployment
Agency Benefits Trust
ASSETS
Cash $ 11,123,022 $ 76,576
Investments, at fair value
Index funds - 16,523,170
U.S. government securities funds - 12,843,800
Money market fund 3,210,957
Total assets $ 11,123,022 $ 32,654,503
LIABILITIES
Due to other governments $ 6,482,959 $
Escrow deposits 2,374,072
Other deposits held in escrow 2,265,991
Total liabilities $ 11,123,022
NET POSITION
Net position restricted for OPEB 32,654,503
Total net position $ 32,654,503
The accompanying notes are an integral part of the financial statements.
44
Indian River County, Florida
Statement of Changes in Fiduciary Net Position
Other Postemployment Benefits Trust Fund
For the Year Ended September 30, 2020
ADDITIONS
Employer contributions $ 2,206,025
Net appreciation in fair value of investments 2,520,594
Less investment expense (2,115)
Net investment income 2,518,479
Total additions 4,724,504
DEDUCTIONS
Benefit payments
Total deductions
2,577,846
2,577,846
Change in net position 2,146,658
Net position - beginning
Net position - ending
30,507,845
$ 32,654,503
The accompanying notes are an integral part of the financial statements.
45
46
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
Note
1 Summary of Significant Accounting
Policies
Reporting Entity
Measurement Focus and Basis of
Accounting
Basis of Presentation
Assets, Liabilities, Deferred Outflows/
Inflows of Resources, and Net
Position or Fund Balances
Cash and Investments
Allowance for Doubtful Accounts
Receivables and Payables
Inventories
Prepaid and Other Assets
Restricted Net Position
Capital Assets
Capitalization of Interest
Deferred Outflows/Inflows of
Resources
Pensions/Net Pension Liability
Net OPEB Liability
Unearned Revenues
Accrued Compensated Absences
Obligation for Bond Arbitrage Rebate
Landfill Closure Costs
Uamortized Bond Discounts
and Premiums
Capital Contributions
2 Stewardship, Compliance and
Accountability
Budgets and Budgetary Accounting
3 Cash and Investments
Deposits
Accrued Interest
Investments
OPEB Trust Investments
Page Note
4 Property Tax Revenues
48 5 Capital Assets
48 6 Restricted Cash and Investments
7 Interfund Balances
49 8 Interfund Transfers
53 9 Accounts Payable
10 Long-term Liabilities
Changes in Long-term Liabilities
55 Governmental Activities
55 Annual Debt Service Payments
56 Spring Training Facility Rev Bonds
56 Limited General Obligation Ref Note
56 Business -type Activities
57 Annual Debt Service Payments
57 Water and Sewer Revenue
57 Refunding Note, Series 2015
58 Compensated Absences
11 Provision for Closure Costs
59 12 Pollution Remediation
60 13 Retirement Plan
60 14 Other Postemployment Benefits Plan
60 15 Leases
61 16 Fund Balance
61 17 Net Position
61 18 Risk Management
19 Commitments and Contingencies
61 Litigation
62 Contracts and Other Commitments
Grants
62 COVID-19
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Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
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 158,834. 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.
48
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
A. Reporting Entity - Continued
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.
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 miltage 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
. 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.
49
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
B. Measurement Focus and Basis of Accounting - Continued
1. Government -wide Financial Statements - Continued
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.
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.
50
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
B. Measurement Focus and Basis of Accounting - Continued
2. Fund Financial Statements - Continued
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.
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.
51
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
B. Measurement Focus and Basis of Accounting - Continued
2. Fund Financial Statements - Continued
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.
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.
52
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
B. Measurement Focus and Basis of Accounting - Continued
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.
. 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.
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.
53
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
C. Basis of Presentation - Continued
1. Governmental Major Funds - Continued
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.
Beach Restoration Fund - The Beach Restoration Fund accounts for the expenditures of
funds to preserve and improve County beaches. Funds are provided by grant funding and
the levy of a local tourist development tax.
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.
54
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
C. Basis of Presentation - Continued
3. Other Fund Types - Continued
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.
4. Non-current Governmental Assets/Liabilities
GASB Statement 34 requires non-current governmental assets, such as land and buildings,
and non-current governmental liabilities, such as general obligation bonds and capital
leases, be reported in the governmental activities column in the government -wide
Statement of Net Position.
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position or
Fund Balances
. Cash and Investments
Cash reported on the financial statements includes bank deposits, cash on hand,
certificates of deposit, money market accounts, and all highly liquid investments with
maturities of ninety days or less when purchased. Investments consist of U.S. Treasury
Securities, U.S. Government Agency Securities, 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.
55
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position or
Fund Balances - Continued
. Cash and Investments - Continued
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.
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, 2020, the allowance for
water and sewer services was $424,493 and the allowance for ambulance services was
$114,932. No other allowances for doubtful accounts are maintained since other accounts
receivable are considered collectible as reported at September 30, 2020.
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.
56
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position or
Fund Balances - Continued
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.
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.
57
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
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 - Continued
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
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.
58
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position or
Fund Balances - Continued
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 $239,957 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 wilt 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 $27,666,061. The sources of the unavailable
revenue are a special assessment on road paving, ambulance service billings, state and
federal grants, and investment interest. 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.
59
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
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 Nan 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, 2020, the total amount of unearned revenues reported on the statement of net position
for the governmental activities is $2,436,402 and for the business -type activities is
$1,435,277.
60
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
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, 2020.
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.
61
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position or
Fund Balances - Continued
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.
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.
62
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 2 - STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY - Continued
Budgets and Budgetary Accounting - Continued
(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) Format 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.
63
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 3 - CASH AND INVESTMENTS
The County maintains a cash and investment pool that is available for use by alt 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 $ 353,957,904
Restricted cash and investments 46,253,931
Cash - Statement of Fiduciary Net Position -Agency Fund 11,123,022
Total $ 411,334,857
Deposits $ 135,241,537
Investments 276,093,320
Total $ 411,334,857
A. Deposits
At September 30, 2020, the carrying amount of the primary government's deposits,
including $11,123,022 in the Agency Fund, was $135,241,537, and the bank balance was
$139,670,560. 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, 2020, accrued interest for the County's portfolio
totaled $806,078. The remaining accrued interest is reflected in utilities and road paving
assessments.
64
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 3 - CASH AND INVESTMENTS - Continued
C. Investments
As of September 30, 2020, the County had the following investments:
Weighted
Average Investment
Maturity Portfolio Credit
Investment Type Fair Value In Years Percentage*** Risks*
Fixed Rate Debt Instruments:
U.S. Treasuries $ 81,623,670 0.59 29.56 % N/A
U.S. Agencies:**
Federal Farm Credit Bureau 43,101,030 1.32 15.61 AA+
Federal Home Loan Bank 22,993,300 1.26 8.33 AA+
Federal Home Loan Mortgage 61,069,740 1.63 22.12 AA+
Federal National Mortgage Assoc. 18,170,480 0.70 6.58 AA+
Other Market Rate Investments:
Florida Trust Day to Day Fund 348,881 0.08 0.13 AAAm
Florida PRIME 3,660,428 0.18 1.33 AAAm
FLSTAR 5,015,954 0.10 1.82 AAAm
FLCLASS 38,944,659 0.23 14.10 AAAm
W&tS Sinking Fund Reserve:
U.S. Treasuries
Total Fair Value
1,165,178
$ 276,093,320
0.17
Weighted Average Maturity of Investments 0.90
0.42 N/A
100.00
* 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).
***Percentages calculated do not include the cash and deposits portion of the portfolio.
Fair Value Measurement
0/0
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
65
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 3 - CASH AND INVESTMENTS - Continued
C. Investments - Continued
Fair Value Measurement - Continued
valuation models or matrix pricing, which consider benchmark yields, reported trades,
broker/dealer quotes, benchmark securities, bids or offers, and reference data.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), Florida
Short Term Asset Reserve (FLSTAR) and the Florida Trust, all 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, FLSTAR and
Florida Trust are to generate investment income while maintaining safety and liquidity.
There were no unfunded committments as of Setpember 30, 2020. Investments may be
redeemed weekly/daily based on similar investments of other clients.
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. Alt 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;
66
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 3 - CASH AND INVESTMENTS - Continued
C. Investments - Continued
Credit Risk - Continued
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.
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 entire cash and
investment portfolio may be placed in any one money market fund, mutual fund, or
intergovernmental investment pool.
67
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 3 - CASH AND INVESTMENTS - Continued
C. Investments - Continued
Concentration Risk - Continued
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 8 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 ant 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.
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, 2020, the Boards's investment portfolio in U.S.
Treasuries, U.S. Agencies, and money market funds, was held by The Bank of New
York/Mellon. Additional Board investments in FLSTAR were held by JP Morgan Chase Et Co.
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.
68
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 3 - CASH AND INVESTMENTS - Continued
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/Melton. The contribution
for the year ended September 30, 2020 was $2,206,025. Cash balance in the OPEB Trust at
September 30, 2020 was $76,576. 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, 2020, the annual money -weighted rate of return on
investments, net of investment expense, was 7.99%. The money -weighted rate of return
expresses investment performance, net of investment expense, adjusted for the changing
amounts actually invested.
As of September 30, 2020, the OPEB Trust had the following investments:
Investment Type
Vanguard 500 Index
Vanguard All World Ex -US
Vanguard Mid Cap Index
Vanguard Small Cap Index
Vanguard Short -Term Treasury
Vanguard Intermediate Treasury
Vanguard Prime Money Market
Fair Value
$ 7,508,027
6,517,414
1,667,098
830,631
9,632,870
3,210,930
3,210,957
Total Fair Value $ 32,577,927
69
Weighted
Average
Maturity Portfolio
in Years Percentage
N/A
N/A
N/A
N/A
2.80
5.70
0.15
23.04
20.00
5.12
2.55
29.57
9.86
9.86
100.00
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 3 - CASH AND INVESTMENTS - Continued
D. OPEB Trust Investments - Continued
The County has the following recurring fair value measurements for investments in the
OPEB Trust as of September 30, 2020:
Level 1
Level 2 Level 3 Total
Index funds $ 16, 523,170 $ $ $ 16, 523,170
U.S. government securities funds 12,843,800 - - 12,843,800
Money market fund 3,210,957 - - 3,210,957
Total investments $ 32,577,927 $ - $ $ 32,577,927
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 2019-2020 fiscal
year were levied in October 2019. 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.
70
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 5 - CAPITAL ASSETS
A. Governmental Activities
Primary Government
Governmental activities:
Capital assets, not being depreciated:
Land
Construction in progress
Right-of-way
Intangibles
Infrastructure
Total capital assets,
not being depreciated
Capital assets, being depreciated:
Buildings and improvements
Equipment
Intangibles
Infrastructure
Total capital assets,
being depreciated
Less accumulated depreciation for:
Buildings and improvements
Equipment
Intangibles
Infrastructure
Total accumulated depreciation
Beginning
Balance
Additions
Deletions
Transfers
Ending
Balance
$ 137,204,375
31,032,003
63,257,408
1,359,119
3,575,067
$ 32,067 $
27,703,388
311,778
3,849
(7,820) $ - $ 137,228,622
(117,260) (5,605,230) 53,012,901
- 3,185,546 66,754,732
- 1,362,968
3,575,067
236,427,972
28,051,082
(125,080) (2,419,684) 261,934,290
254,337,357 413,855
83,119,278 9,190,080
5,179,558 121,352
371,207,609 1,794,996
(322,384)
(3,280,610)
(82,578)
(24,861)
306,358
384,518
53,915
1,674,893
254,735,186
89,413,266
5,272,247
374,652,637
713,843,802 11,520,283
(3,710,433) 2,419,684 724,073,336
(92,455,008)
(54,675,125)
(4,139,317)
(218,404,786)
(7,823,907)
(6,692,104)
(347,211)
(8,444,343)
284,654
2,828,976
62,578
(99,994,261)
(58,538,253)
(4,423,950)
- (226,849,129)
(369,674,236) (23,307,565) 3,176,208
(389,805,593)
Total capital assets, being depreciated, net 344,169,566 (11,787,282)
Governmental activities capital assets, net
(534,225) 2,419,684 334,267,743
$ 580,597,538 $ 16,263,800 $ (659,305) $
- $ 596,202,033
Depreciation expense, which includes amortization expense on intangible assets, was
charged to the functions/programs of the primary government's governmental activities as
follows:
General government
Public safety
Physical environment
Transportation
Economic environment
Human service
Culture/recreation
Court related
Capital assets held by the government's internal service funds are
charged to the various functions based on their usage of the assets
$ 3,909,080
6,315,893
1,048,873
8,115,229
527
135,181
3,328,702
56,176
397,904
Total depreciation expense - governmental activities $ 23,307,565
71
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 5 - CAPITAL ASSETS - Continued
B. Business -type Activities
Primary Government
Business -type activities:
Capital assets, not being depreciated:
Land, improvements to land
Intangibles
Construction in progress
Total capital assets,
not being depreciated
Capital assets, being depreciated:
Buildings, distribution systems,
& improvements
Intangibles
Equipment
Total capital assets,
being depreciated
Less accumulated depreciation for:
Buildings, distribution systems,
& improvements
Intangibles
Equipment
Total accumulated depreciation
Total capital assets, being depreciated, net
Business -type activities capital assets, net
Beginning
Balance
$
26,743,876
2,004,534
12,159,867
40,908,277
467,497,598
1,321,831
19,409,052
488,228,481
(296,068,840)
(1,174,213)
(14,782,500)
(312,025,553)
176,202,928
$
217,111,205
Additions
Deletions
$ 6,009,325 $
145,695
11,358,039
17,513,059
3,147,989
2,386,560
5,534,549
(14,175,179)
(36,625)
(1,627,257)
(15,839,061)
(10, 304, 512 )
Transfers
Ending
Balance
$ - $ 32,753,201
- 2,150, 229
(2,873) (6,781,610) 16,733,423
(2,873) (6,781,610) 51,636,853
(6,609) 6,602,249
(10, 768)
(670,484)
(687,861)
6,609
10,768
670,313
687,690
477,241,227
1,311,063
179,361 21,304,489
6,781,610 499,856,779
(310,237,410)
(1,200,070)
(15,739,444)
(327,176,924)
(171) 6,781,610 172,679,855
$ 7,208,547 $ (3,044) $
$ 224,316,708
Depreciation expense, which includes amortization expense on intangible assets, was
charged to the functions/programs of the primary government's business -type activities as
follows:
Solid Waste Disposal District
Golf Course
County Utilities
County Building
$ 1,171,337
252,108
14,335,659
79,957
Total depreciation expense - business -type activities S15,839,061
72
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 6 - RESTRICTED CASH AND INVESTMENTS
Various bond covenants, resolutions, and state regulations require that the County restrict
cash and investments. Restricted cash and investments are as follows:
Sinking funds/current portion of debt
Renewal and replacement
Retainage payable
Customer deposits
Capital construction
Closure and maintenance costs
Total
NOTE 7 - INTERFUND BALANCES
Primary Government
Governmental
Activities
Business -type
Activities
Total
$ 308,821 $ 1,256,276 $
3,485,928
606,636
199,689
3,460,069
29,494,841
7,441,671
1,565,097
3,485,928
606,636
3,659,758
29,494,841
7,441,671
$ 1,115,146 $ 45,138, 785 $
Interfund balances at September 30, 2020, consisted of the following:
Receivable Fund
Payable Fund
Major Governmental Funds:
General Fund
General Fund
General Fund
Emergency Services District Fund
Optional Sales Tax Fund
Vero Lakes Estate Fund
East Gifford Stormwater Fund
Street Lighting Districts Fund
Total Governmental Funds
Major Enterprise Fund:
Solid Waste Disposal District Fund
Metropolitan Planning Organization Fund
Federal/State Grants Fund
Golf Course Enterprise Fund
General Fund
Jackie Robinson Training Complex
Reserve Fund
73
General Fund
General Fund
General Fund
46,253,931
Amount
$
75,000
6,000
352,421
433,421
376,810
851,024
2,462
10
2,687
5,159
$
1,666,414
General Fund $
135,462
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 7 - INTERFUND BALANCES - Continued
Amounts due from the General. Fund represent excess fees and payments of the
constitutional officers remitted to various funds subsequent to September 30, 2020. 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%. In January 2020, the General Fund loaned
$316,900 to the Golf Course Enterprise Fund to purchase new golf carts at an interest rate
of 3%. 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 2021. 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 Fund is reported as an interfund advance.
Interfund advances at September 30, 2020, consisted of the following:
Receivable Fund Payable Fund Amount
General Fund Golf Course Enterprise Fund $ 183,568
This amount is considered a long-term advance between major funds expected to be paid in
fiscal years 2022 and 2023. 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, 2020, consisted of the following:
Transfers In:
Transfers Out:
General Fund
Transportation
Fund
Emergency Services
District Fund
Optional Sales Tax
Fund
Beach Nonmajor County Internal
General Restoration Transportation Governmental Utilities Service
Fund Fund Fund Funds Fund Funds
Total
$ - $ 193,933 $ 11,692,691 $ 1,139,589 $ $ 266,317 $ 13,292,530
77,319 77,319
802,755 - - 802,755
1,311,278 150,000 30,197 - 1,491,475
Nonmajor
Governmental
Funds 2,012,053 346,472 757,138 3,115,663
Solid Waste Disposal
District Fund 777,875 777,875
Internal Service
Funds 90,000 31,460 - 121,460
Total $ 4,216,086 $ 193,933 $ 11,724,151 $ 1,636,061 $ 885,391 $ 1,023,455 $ 19,679,077
74
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
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 general fund revenues to early payoff a general obligation note
payable, 5) transfer a capital asset paid for by the SWDD fund to the utilities fund, 6) use
unrestricted stormwater revenues to offset Osprey Marsh employee costs accounted for in
the utilities fund, 7) use capital project fund revenues for improvements to the Jackie
Robinson Training Complex and subsidize the North Sebastian Septic to Sewer incentive
program, 8) move insurance funds received in a prior year to the correct fund, and 9)
provide matching funds for grants, and 10) move revenues from the fund state law requires
to collect them to the fund that state law requires to expend them.
NOTE 9 - ACCOUNTS PAYABLE
Payables at September 30, 2020, were as follows:
Governmental Activities:
General
Impact Fees
Transportation
Emergency Services
Beach Restoration
Optional Sales Tax
Other Governmental
Total Governmental Activities
Business -type Activities:
Payable from current assets:
Solid Waste
Golf Course
Utilities
Building
Payable from restricted assets:
Utilities
Total Business -type Activities
Vendors
$ 3,925,291
290,712
551,522
315,508
157,023
1,979,996
8,856,278
$ 16,076,330
Salaries and
Benefits
$ 1,844,716
3,395
399,748
1,388,488
7,453
Total
Payables
$ 5,770,007
294,107
951,270
1,703,996
164,476
1,979,996
191,545 9,047,823
$ 3,835,345 $ 19,911,675
$ 927,887 $
24,277
2,189,922
103,299
38,927 $ 966,814
27,392 51,669
478,286 2,668,208
134,205 237,504
11,895 11,895
$ 3,257,280 $ 678,810 $ 3,936,090
Included in salaries and benefits payable is a liability to the Florida Retirement System
(FRS) for pension contributions due for the month of September 2020. The amounts due to
FRS at September 30, 2020 are $361,586 for governmental activities and $59,753 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 2020 other than that listed in Note 8.
75
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 10 - LONG-TERM LIABILITIES
A. Changes in Long -Term Liabilities
Long-term liability activity for the year ended September 30, 2020, was as follows:
Due
Beginning Ending Within
Balance Additions Retirements Balance One Year
Governmental Activities:
Bonds payable:
Spring Training Facility Revenue Bonds -
Series 2001 $ 4,155,000 $ - $ 290,000 $ 3,865,000 $ 305,000
Notes and leases from direct borrowings and
direct placements:
Limited General Obligation Refunding Note 7,268,000 7,268,000 -
Capital lease 15,447 3,314 12,133 3,381
Total notes and teases from direct
borrowings and direct placements 7,283,447 7,271,314 12,133 3,381
Other liabilities:
Pollution remediation 1,615,300 - 5,300 1,610,000 63,533
Claims payable 8,254,000 23,627,530 23,937,530 7,944,000 2,649,000
Compensated absences 12,630,510 8,180,489 6,479,916 14,331,083 6,571,403
Total other liabilities 22,499,810 31,808,019 30,422,746 23,885,083 9,283,936
Governmental activities long-term liabilities $ 33,938,257
$
31,808,019
$
37,984,060 $ 27,762,216 $ 9,592,317
Business -type Activities:
Notes from direct borrowings and direct
placements:
Water & Sewer Revenue Refunding Note $ 3,174,000 $ - $ 1,042,000 $ 2,132,000 $ 1,058,000
Other liabilities:
Pollution remediation 251,300 251,300 251,300
Landfill closure and maintenance costs 8,154,682 1,515,017 2,228,028 7,441,671 1,949,965
Compensated absences 1,037,092 850,868 763,590 1,124,370 816,642
Total notes payable and other liabilities 12,365,774 2,617,185 4,033,618 10,949,341 4,075,907
Business -type activities long-term liabilities $
12,365,774 $ 2,617,185 $ 4,033,618
76
$
10,949,341 $ 4,075,907
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
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, 2020, are as follows:
Fiscal Year Spring Training Facility
Ending Revenue Bonds
September 30 Series 2001
Principal Interest
2021 $ 305,000 $ 194,013
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 3,865,000 $ 1,184,263
Less:
Current portion 305,000
Non-current $ 3,560,000
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.
77
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
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, 2020 is $80,055 and is
reflected as a deferred outflow of resources on the government -wide Statement of Net
Position.
The current principal and interest payments of $491,625 represent 4.99% of total pledged
revenues. All three revenue sources totaled $9,841,736 for the current fiscal year. The
County applied 98% of the state subsidy and none of the Half -Cent Sales Tax or Fourth -Cent
Tourist Tax to the debt service payments. The total principal and interest remaining to be
paid on the bonds is $5,049,263.
78
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 10 - LONG-TERM LIABILITIES - Continued
B. Primary Government - Continued
Spring Training Facility Revenue Bonds - Continued
Bonds Issued - At September 30, 2020, Spring Training Facility Revenue Bonds consisted of
the following:
Description
Spring Training Facility Revenue
Bonds, Series 2001
Interest
Rates and
Date
3.30%-5.25%
4/1 and 10/1
Maturity Issue
Outstanding at
September 30,
2020
2031 $ 16,810,000 $ 3,865,000
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, 2021 $
Term Bonds due April 1, 2027
Date
April 1, 2022
April 1, 2023
April 1, 2024
April 1, 2025
April 1, 2026
April 1, 2027
Term Bonds due April 1, 2031
Date
April 1, 2028
April 1, 2029
April 1, 2030
April 1, 2031
79
305,000
Principal Amount
$
305,000
320,000
340,000
355,000
375,000
390,000
Principal Amount
$
410,000
430,000
455,000
180,000
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
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.
On May 19, 2020, the County approved to early payoff the remaining balance of the Note in
the amount of $7,268,000 on July 1, 2020.
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, 2020, are as follows:
Fiscal Year Water and Sewer
Ending Revenue Refunding
September 30 Note Series 2015
Principal Interest
2021 $ 1,058,000 $ 35,178
2022 1,074,000 17,721
Total 2,132,000 $ 52,899
Less:
Current portion 1,058,000
Non-current $ 1,074,000
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.
80
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 10 - LONG-TERM LIABILITIES - Continued
B. Primary Government - Continued
Water and Sewer Revenue Refunding Note, Series 2015 - Continued
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,
2020 is $159,902 and is reflected as a deferred outflow of resources on the Statement of
Net Position.
Pledge of Revenues - The note is collateralized, for the remaining term of the note, by a
pledge of all net revenues derived from the operation of the system, certain surcharges,
and special assessments. Annual principal and interest payments of $1,094,371 represent
approximately eight percent of net revenues of $13,106,552 of the utility system. The total
principal and interest remaining to be paid on the 2015 note is $2,184,899. 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.
C. Compensated Absences
For the governmental activities compensated absences liability, the General Fund normally
liquidates 74 percent, and the Transportation and Emergency Services District funds
normally liquidate 6 percent and 17 percent, respectively. The remaining 3 percent is
liquidated by other governmental and internal service funds.
81
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
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 $11.6 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! - Segments 111, Cell 1 90% 2022 $ 4,763,882
Construction and Demolition 93% 2027 1,034,866
Post -closure Costs
Class! - Segments 1 and 11 N/A N/A 1,563,435
Construction and Demolition N/A N/A 79,488
Total account balance at 9/30/20 $ 7,441,671
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, 2020,
$7,430,173 was on deposit at the Florida Cooperative Liquid Assets Securities System
(FLCLASS) and $11,498 was on deposit in the County's Operating account.
82
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 11 - PROVISION FOR CLOSURE COSTS - Continued
A summary of changes in the landfill closure liability account is as follows:
Balance Balance
10/1/2019 Deposits Withdrawals 09/30/20
Closure and long-term care costs $ 8,154,682 $ 1,515,017 $ (2,228,028) $ 7,441,671
Of the $7,441,671 liability for closure and long-term care costs, management estimates that
$1,949,965 will be due and payable within one year.
NOTE 12 - POLLUTION REMEDIATION
In accordance with GASB Statement 49, Accounting and Financia( Reporting for Pollution
Remediation Obligations, a consultant evaluated three 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 sites requiring the County (using the consultant's
services) to attempt to accrue a liability for pollution remediation. The liability totaled
$1,861,300 at September 30, 2020 for the three sites. Of the $1,861,300 liability for
pollution remediation, management estimates that $314,833 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 $10,000 and will be paid from the General Fund.
Total Governmental Activities liability: $1,610,000
83
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 12 - POLLUTION REMEDIATION - Continued
Business -type Activities:
3) Premier Citrus Property - The nature of the pollution remediation obligation is
aboveground storage tank petroleum and/or pesticide and herbicide contamination. The
consultant will conduct monitoring, bioremediation and reporting with the FDEP. The
amount of the estimated year end liability is $251,300 and will be paid from the Utilities
Operating Fund.
Total Business -type Activities liability: S251,300
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_operationsketirennent/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.
84
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 13 - RETIREMENT PLAN - Continued
Pension Plan - Continued
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.
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
85
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 13 - RETIREMENT PLAN - Continued
Pension Plan - Continued
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, 2020 were: Regular class 10.00%, Special Risk
24.45%, Special Risk Administrative Support 35.84%, Senior Management 27.29%, DROP
16.98%, and Elected Official class 49.18%. 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.
The County's actuarial contribution to FRS under the Pension Plan for the year ended
September 30, 2020, was $12,265,839. Employee contributions for September 30, 2020
were $2,153,645. 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, 2020, the Division of
Retirement calculated the County's liability of $156,966,332 for the FRS plan for its
proportionate share of the net pension liability. The net pension liability was measured as
of June 30, 2020, and the total pension liability used to calculate the net pension liability
was determined by an actuarial valuation as of July 1, 2020. 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
86
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 13 - RETIREMENT PLAN - Continued
Pension Plan - Continued
employers, actuarially determined. At June 30, 2020, the County's proportion share was
0.3622% for the FRS Pension Plan. This was an increase of 0.0123% from its proportionate
share measured as of June 30, 2019.
The County anticipates that the pension liability will be liquidated in the following manner:
General Fund 53 percent, Emergency Services District Fund 34 percent, Transportation Fund
4 percent, Enterprise Funds 7 percent, and the remaining 2 percent is by the Other
Governmental Funds and Internal Service Funds.
For the year ended September 30, 2020, the County's calculated total increase of
actuarially determined pension expense was $23,524,032. 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 $ 6,007,420 $ -
Changes in assumptions 28,415,892
Net difference between projected and actual
earnings on pension plan investments 9,345,928 -
Changes in proportion and differences between
County contributions and proportionate share of
contributions 5,448,481 877,100
County contributions subsequent to the
measurement date 3,190,741
Total $ 52,408,462 $ 877,100
The deferred outflows of resources related to the pension plan totaling $3,190,741 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, 2021. 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
2021 $ 9,961,832
2022 15,514,963
2023 13,187,658
2024 7,883,640
2025 1,792,528
Total $ 48,340,621
87
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 13 - RETIREMENT PLAN - Continued
Pension Plan - Continued
Actuarial Assumptions: The total pension liability in the July 1, 2020 actuarial valuation
was determined using the following actuarial assumptions, applied to all periods included in
the measurement:
Valuation date:
Measurement date:
Discount rate:
Long-term expected rate of return:
Inflation:
Salary increase:
Mortality:
Actuarial cost method:
July 1, 2020
June 30, 2020
6.80%
6.80%, net of pension plan investment
expense, including inflation
2.40%
3.25%, including inflation
PUB -2010 base table, projected
generationally with Scale MP -2018
Individual Entry Age
The actuarial assumptions that determined the total pension liability used in the July
1,2020 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 2020:
• The long-term expected rate of return was decreased from 6.90% to 6.80%.
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:
88
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 13 - RETIREMENT PLAN - Continued
Pension Plan - Continued
Asset Class
Cash
Fixed Income
Global Equity
Real Estate (Property)
Private Equity
Strategic Investments
Total
Assumed inflation -mean
Annual
Target Arithmetic
Allocation Return
1% 2.2%
19% 3.0%
54.2% 8.0%
10.3% 6.4%
11.1% 10.8%
4.4% 5.5%
100%
Compound
Annual
(Geometric)
Return
2.2%
2.9%
6.7%
5.8%
8.1%
5.3%
Standard
Deviation
1.2%
3.5%
17.1%
11.7%
25.7%
6.9%
2.4% 1.7%
Discount Rate for Pension Plan: The discount rate used to measure the total pension
liability was 6.80%. 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 6.80%. 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% tower or 1% higher than the
current rate:
1% Decrease
(5.80%)
Current
Discount 1% Increase
Rate (6.80%) (7.80%)
County's proportionate share of NPL $ 250,648,853 $ 156,966,332 $ 78,722,283
89
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
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 (877) 377-1737 or (850) 488-5706.
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, 2020, 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,
2020, 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 $1,444,839 for the fiscal year ended September 30, 2020.
90
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 13 - RETIREMENT PLAN - Continued
Retiree Health Insurance Subsidy (HIS) Program - Continued
Pension Liabilities, Pension Expense, and Deferred Outflow of Resources and Deferred
Inflow of Resources Related to HIS Program: At September 30, 2020, the Division of
Retirement calculated the County's liability of $30,268,499 for its proportionate share of
the HIS Program's net pension liability. The net pension liability was measured as of June
30, 2020, and the total pension liability used to calculate the net pension liability was
determined by an actuarial valuation as of July 1, 2020. At June 30, 2020, the County's
proportional share was 0.2479% for the HIS Program. This was an increase of 0.0051% from
its proportionate share measured as of June 30, 2019.
For the year ended September 30, 2020, the County recognized pension expense of
$1,707,140. 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 $ 1,238,165 $ 23,352
Changes in assumptions 3,254,725 1,759,994
Net difference between projected and actual
earnings on pension plan investments 24,167
Changes in proportion and differences between
County contributions and proportionate share of
contributions 1,583,420 150,411
County contributions subsequent to the measure-
ment date 362,737
Total $ 6,463,214 $ 1,933,757
The deferred outflows of resources related to HIS Program totaling $362,737 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, 2021. Other
amounts reported as deferred outflows of resources and deferred inflows of resources
related to HIS Program will be recognized in pension expense as follows:
Amount
Fiscal Year Ending September 30: Recognized
2021 $ 1,153,167
2022 855,395
2023 233,739
2024 542,760
2025 739,066
Thereafter 642,593
Total $ 4,166,720
91
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
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, 2020
actuarial valuation was determined using the following actuarial assumptions, applied to all
periods included in the measurement:
Valuation date:
Measurement date:
Discount rate:
Long-term expected rate of return:
Municipal bond rate:
Inflation:
Salary increase:
Mortality:
Actuarial cost method:
July 1, 2020
June 30, 2020
2.21%
N/A
2.21%
2.40%
3.25% average, including inflation
PUB -2010 base table, projected
generationally with Scale MP -2018
Individual Entry Age
The actuarial assumptions that determined the total HIS Program pension liability used in
the July 1, 2020 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 2020:
• The municipal rate used to determine the total pension liability decreased from 3.87%
to 2.21%.
• The mortality assumption changed from Generational RP -2000 with Projection Scale BB
tables to the PUB -2010 base table, projected generationally with Scale MP -2018.
Discount Rate for HIS Program: In general, the discount rate for calculating the total
pension liability is equal to the single rate equivalent to discounting at the long-term
expected rate of return for benefit payments prior to the projected depletion date.
Because the HIS Program is essentially funded on a pay-as-you-go basis, the depletion date
is considered to be immediate. The single equivalent discount rate is equal to the
municipal bond rate selected by the plan sponsor. The Bond Buyer General Obligation
20 -Bond Municipal Bond Index was adopted as the applicable municipal bond index.
Long-term Expected Rate of Return: As stated above, the HIS Program is essentially funded
on a pay-as-you-go basis. As such, there is no assumption for a long-term expected rate of
return on a portfolio, no assumptions for cash flows into and out of the pension plan, or
assumed asset allocation.
92
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 13 - RETIREMENT PLAN - Continued
Retiree Health Insurance Subsidy (HIS) Program - Continued
Sensitivity of the County's Proportionate Share of the Net Position Liability to Changes in
the Discount Rate for the HIS Program: The following presents the County's proportionate
share of the Net Pension Liability (NPL) of the HIS Program calculated using the discount
rate of 2.21%. 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
(1.21%) Rate (2.21%) (3.21%)
County's proportionate share of NPL $ 34,989,033 $ 30,268,499 $ 26,404,755
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 (877) 377-1737 or (850) 488-5706.
Total Pension Liability - FRS Pension and HIS Program Combined
At September 30, 2020, the Division of Retirement calculated the County's total liability of
$187,234,831 for its proportionate share of the net pension liability. The net pension
liability was measured as of June 30, 2020, and the total pension liability used to calculate
the net pension liability was determined by an actuarial valuation as of July 1, 2020. At
June 30, 2020, the County's total proportional share was 0.6101%. This was an increase of
0.0173% from its proportionate share measured as of June 30, 2019.
For the year ended September 30, 2020, the County recognized pension expense of
$26,989,704. 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 $ 7,245,585 $ 23,352
Changes in assumptions 31,670,617 1,759,994
Net difference between projected and actual
earnings on pension plan investments 9,370,095 -
Changes in proportion and differences between
County contributions and proportionate share of
contributions 7,031,901 1,027,511
County contributions subsequent to the measure-
ment date 3,553,478
Total $ 58,871,676 $ 2,810,857
93
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 13 - RETIREMENT PLAN - Continued
Total Pension Liability - FRS Pension and HIS Program Combined - Continued
The deferred outflows of resources totaling $3,553,478 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, 2021. Other amounts reported as deferred
outflows of resources and deferred inflows of resources wilt be recognized in pension
expense as follows:
Amount
Fiscal Year Ending September 30: Recognized
2021 $ 11,130,809
2022 16,344,488
2023 13,372,924
2024 8,419,058
2025 2,562,974
Thereafter 677,089
Total $ 52,507,342
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.
94
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 13 - RETIREMENT PLAN - Continued
FRS Investment Plan - Continued
For all membership classes, employees are immediately vested in their own contributions
and are vested after one year of service for employer contributions and investment
earnings. Nonvested employer contributions are placed in a suspense account for up to five
years. If the employee returns to FRS -covered employment within the five year period, the
employee will regain control over his/her account. If the employee does not return within
the five-year period, the employee will forfeit the accumulated account balance. For fiscal
year ended September 30, 2020, the information for the amount of forfeitures was
unavailable from the SBA; however, management believes that these amounts, if any,
would be immaterial to the County.
If an accumulated benefit obligation for service credit originally earned under the Pension
Plan is transferred to the Investment Plan, the member must have the years of service
required for Pension Plan vesting (including the service credit represented by the
transferred funds) to be vested for these funds and the earnings on the funds.
After termination and applying to receive benefits, the member may rollover vested funds
to another qualified plan, structure a periodic payment under the Investment Plan, receive
a lump -sum distribution, leave the funds invested for future distribution, or any
combination of these options. Disability coverage is provided; the member may either
transfer the account balance to the FRS Pension Plan when approved for disability
retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or
remain in the Investment Plan and rely upon that account balance for retirement income.
Contributions: Cost of administering the Investment Plan, including the FRS Financial
Guidance Program, are funded through an employer contribution of .06% of payroll and by
forfeited benefits of Investment Plan members. The Investment Plan is funded with the
same employer and employee contribution rates that are based on salary and membership
class as the FRS defined benefit plan. Contributions are directed to individual member
accounts, and the individual members allocate contributions and account balances to
various approved investment choices.
Allocations to the investment member's accounts during the 2019-2020 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 $2,253,519 for
fiscal year ended September 30, 2020. Employee contributions totaled $454,653 for the
same period.
95
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
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, 2019, range from
$295 for single coverage Medicare participants to $1,167.50 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.
96
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
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.
97
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
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. Questions
regarding the OPEB Plan may be directed to the Finance Director.
At October 1, 2019, the date of the latest actuarial valuation, plan participation consisted
of:
Active participants 1,536
Retired participants 536
Total participants 2,072
There are two classes of participants at October 1, 2019:
Regular and senior management 1,313
Special risk 759
Total participants 2,072
The average employer's contribution was $1,466 per employee, approximately 2.49% 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, 2020 the County
contributed $2.2 million to the qualifying OPEB Trust. Plan members receiving benefits
contributed $2.6 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.
98
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 14 - OTHER POSTEMPLOYMENT BENEFITS PLAN (OPEB) - Continued
C. Net OPEB Liability
The County's net OPEB liability was measured as of October 1, 2019 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,
2020, were as follows:
Total OPEB Liability $ 34,039,143
Plan fiduciary net position (32,654,503)
County's net OPEB liability S 1,384,640
Plan fiduciary net position as a percentage of the total
OPEB liability 95.93%
D. Actuarial Methods and Assumptions
The total OPEB liability was determined by an actuarial valuation as of October 1, 2019,
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, 2018 actuarial
valuation of the Florida Retirement System. They
are based on the results of a statewide experience
study covering the period 2008 through 2013.
99
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 14 - OTHER POSTEMPLOYMENT BENEFITS PLAN (OPEB) - Continued
D. Actuarial Methods and Assumptions - Continued
Healthcare Cost Trend Rates
Based on the Getzen Model, with trend
starting at 6.5% and gradually decreasing to
an ultimate trend rate of 4.24%.
Aging Factors Based on the 2013 SOA Study "Health Care
Costs - From Birth to Death".
Expenses
Other Information:
Notes
E. Discount Rate
Calculation of the Single Discount Rate
Investment expenses are net of the investment
returns; Administrative expenses are included in the
per capita health costs.
There were no benefit changes during the year.
GASB Statement No. 74 includes a specific requirement for the discount rate that is used
for the purpose of the measurement of the Total OPEB Liability. This rate considers the
ability of the fund to meet benefit obligations in the future. To make this determination,
employer contributions, employee contributions, benefit payments, expenses and
investment returns are projected into the future. The Plan Net Position (assets) in future
years can then be determined and compared to its obligation to make benefit payments in
those years. As long as assets are projected to be on hand in a future year, the assumed
valuation discount rate is used. In years where assets are not projected to be sufficient to
meet benefit payments, the use of a municipal bond rate is required, as described in the
following paragraph.
100
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 14 - OTHER POSTEMPLOYMENT BENEFITS PLAN (OPEB) - Continued
E. Discount Rate - Continued
Calculation of the Single Discount Rate - Continued
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 2.41%; 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%.
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
1% Decrease
(5.00%)
$ 3,857,389
Current Single Discount
Rate Assumption
(6.00%)
1% Increase
(7.00%)
$ 1,384,640 $(864,355)
101
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 14 - OTHER POSTEMPLOYMENT BENEFITS PLAN (OPEB) - Continued
F. Sensitivity of Net OPEB Liability - Continued
Regarding the sensitivity of the net OPEB liability to changes in the healthcare cost trend
rates, the following presents the plan's net OPEB liability, calculated using the assumed
trend rates as well as what the plan's net OPEB liability would be if it were calculated using
a trend rate that is one percent lower or one percent higher:
G.
Sensitivity of Net OPEB Liability
to the Healthcare Cost Trend Rate Assumption
1% Decrease
(5.5% down to 3.24%)
$(1,321,106)
Current Healthcare
Cost
Trend Rate Assumption
(6.5% down to 4.24%)
$ 1,384,640
Changes in the Net OPEB Liability
Balances at 9/30/2019
Changes for the year:
Service cost
Interest
Contributions - employer
Net investment income
Experience
Assumptions
Benefit payments
Net changes
Balances at 9/30/2020
1% Increase
(7.5% down to 5.24%)
$ 4,475,056
Increase (Decrease)
Total OPEB
Liability
(a)
$ 33,207,465
638,013
1,953,393
2,869,333
(2,051,215)
(2,577,846)
831,678
$ 34,039,143
102
Plan
Fiduciary
Net Position
(b)
$ 30,507,845
Net OPEB
Liability
(a) - (b)
$ 2,699,620
638,013
1,953,393
2,206,025 (2,206,025)
2,518,479 (2,518,479)
2,869,333
(2,051,215)
(2,577,846) -
2,146,658 (1,314,980)
$ 32,654,503 $ 1,384,640
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 14 - OTHER POSTEMPLOYMENT BENEFITS PLAN (OPEB) - Continued
H. OPEB Expense and Deferred Outflows and Inflows of Resources Related to OPEB
For the year ended September 30, 2020, the County recognized OPEB expense of
($104,244). At September 30, 2020, 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 $ 4,395,837 $ -
Changes of assumptions 9,789,886
Net difference between projected and actual earnings on
OPEB plan investments 532,432 559,330
$ 4,928,269 $ 10, 349, 216
I. OPEB Expense and Deferred Outflows and Inflows of Resources Related to OPEB
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
2021 $ (876,334)
2022 (876,334)
2023 (925,819)
2024 (1,070,305)
2025 (930,474)
Thereafter (741,681)
Total $ (5,420,947)
103
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
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 $769,509 and lease
expenditures totaled $256,827 for the year ended September 30, 2020. The County also
leases other equipment and office facilities as both lessor and lessee on a month-to-month
basis.
. Future Minimum Lease Receipts
Year Amount
2021 $ 673,193
2022 593,244
2023 542,272
2024 493,475
2025 419,321
2026-2030 1,744,562
2031-2035 859,492
2036-2040 559,835
2041-2045 530,110
2046-2050 1,000
Total future minimum receipts $ 6,416,504
104
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
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 $32,314,621 and a carrying
value of $20,205,277. Current year depreciation on property being leased was $663,926.
2. Future Minimum Lease Payments
The following is a schedule of minimum future lease payments to be paid by the County for
various non -cancelable operating leases such as office space and office equipment as of
September 30, 2020:
Year Amount
2021 $ 238,904
2022 126,913
2023 47,912
2024 20,887
2025 19,559
2026-2030 7,500
2031-2035 7,500
2036-2040 5,400
2041-2045 4,500
2046-2050 3,600
20512055 2,400
2056-2060 1,500
2061-2065 1,500
2066-2070 1,500
2071-2075 300
Total future minimum lease payments $ 489,875
105
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 15 - LEASES - Continued
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, 2020. 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
2021 $ 3,592
2022 3,592
2023 3,592
2024 1,796
Total future minimum tease payments $ 12,572
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.
106
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 16 - FUND BALANCE - Continued
A. Categories - Continued
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 wilt be replenished over a five-year period after the
completion of the recovery from the disaster.
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, 2020, reserve amounts for those funds were:
Budget
Disaster Relief Stabilization Total
General Fund $ 7,650,000 $ 7,650,000 $ 15,300,000
Transportation Fund 950,000 950,000 1,900,000
Emergency Services District Fund 2,250,000 2,250,000 4,500,000
Total $ 10,850,000 $ 10,850,000 $ 21,700,000
107
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 16 - FUND BALANCE - Continued
B. Fund Balance Policy - Continued
The General Fund reserves are included in the unassigned fund balance on the balance
sheet. The Transportation Fund reserves are included in the assigned fund balance and the
Emergency Services District Fund reserves are included in the restricted fund balance on
the balance sheet. Emergency/Disaster Relief and Budget Stabilization Reserve amounts
may only be revised by the Board of County Commissioners.
Minimum Fund Balance - The approved fund balance policy dictates the County's attempt
to maintain a minimum fund balance in the General, Transportation, and Emergency
Services District funds of 20% of budgeted annual operating expenditures. The minimum
fund balance level may be revised by the County Administrator or his designee.
C. Spending Hierarchy
For all governmental funds, when restricted, committed, assigned, and unassigned fund
balances are combined in a fund, qualified expenditures are paid first from restricted or
committed fund balance, as appropriate, then assigned and finally unassigned fund
balances.
D. Fund Balance Deficit
The Metropolitan Planning Organization Fund, a nonmajor Governmental Fund, had a deficit
in fund balance of $89,708 at September 30, 2020. This deficit will be eliminated by grant
proceeds in fiscal year 2021. The Jackie Robinson Training Complex Reserve Fund, a
nonmajor Governmental Fund, had a deficit in fund balance of $227,670 at September 30,
2020. 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
$181,876,656 of restricted net position, of which $119,270,840 is restricted by enabling
legislation.
108
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
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
9/30/2020
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 workers compensation
reimbursements totaling $3,072 for fiscal year 2020, $41,832 for fiscal year 2019, and
$1,685 for fiscal year 2018.
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 medical plan assumes all risk for claims, other than worker's
compensation, up to $300,000 per occurrence.
109
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 18 - RISK MANAGEMENT - Continued
General Liability, Property, Worker's Compensation and Medical - Continued
The County has purchased a reinsurance policy to cover claims in excess of these limits.
There were medical claim reimbursements totaling $1,022,187 for fiscal year 2020,
$670,688 for fiscal year 2019, and $471,549 for fiscal year 2018.
The claims liability of $7,944,000 reported at September 30, 2020, 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, $2,649,000 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:
2016-2017
2017-2018
2018-2019
2019-2020
Balance at
Fiscal Year
Beginning
$ 8,512,520
8,255,000
8,439,000
8,254,000
Claims
and Changes
in Estimates
$ 16,364,331
21,400,694
25,995,950
23,627,530
Claims
Payments
$ (16,621,851)
(21,216,694)
(26,180,950)
(23,937,530)
Balance
at Fiscal
Year End
$ 8,255,000
8,439,000
8,254,000
7,944,000
Included in the charges to other funds is an amount to fund future catastrophic losses not
actuarially determined and at September 30, 2020, unrestricted net position of $22,070,750
has been designated for this purpose.
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
$3,917,250. Accordingly, management has recorded an estimated liability in that amount
in the financial statements.
110
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 19 - COMMITMENTS AND CONTINGENCIES - Continued
A. Litigation - Continued
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, 2020. 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 the Courthouse renovations, Indian River Blvd. and 8th
Street signalization and intersection improvements, 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 intersection
improvements at State Road 60 and 43rd Avenue, 58th Avenue full depth reclamation
project, 43rd Avenue improvements from 18th Street to 26th Street, 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, Roseland elevated
storage tank conversion, pump station and water transmission mainstem, and various other
water and sewer projects. In the Internal Service Funds, contracts are for benefit
administration services and GIS aerial imagery.
111
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 19 - COMMITMENTS AND CONTINGENCIES - Continued
B.
Contracts and Other Commitments - Continued
A summary of these projects at September 30, 2020, is as follows:
General
Special Revenue
Capital Projects
Enterprise
Internal Service
Total
C. Grants
Total
Contract Price
$ 3,338,260
9,277,222
35, 577, 950
18,858,071
583,391
$ 67,634,894
Total Paid as of
September 30, 2020
$
Remaining
Balance at
September 30, 2020
(1,787,648) $
(6,408,159)
(11,688,226)
(10,074,741)
(286,232)
$
1,550,612
2,869,063
23,889,724
8,783,330
297,159
(30,245,006) $
37,389,888
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.
D. COVID-19
In March 2020, the World Health Organization declared the novel coronavirus outbreak
(COVID-19) to be a global pandemic. The extent of the ultimate impact on the County's
operational and financial performance will depend on various developments, including the
duration and spread of the outbreak and its impact on employees, vendors, and taxpayers,
all of which cannot be reasonably predicted at this time. County staff will closely monitor
the situation and make necessary adjustments as needed to maintain its sound financial
position.
112
Indian River County, Florida
Required Supplementary Information
For the Year Ended September 30, 2020
Schedule of the County's Proportionate Share of the Net Pension Liability
Florida Retirement System (FRS) Defined Benefit Pension Plan
County's County's
Plan Sponsor Proportion Proportionate
Fiscal Year Measurement of the FRS Share of the County's
Ending Date Net Pension FRS Net Pension Covered
September 30, June 30, Liability Liability Payroll
2020 2020 0.3622% $ 156,966,332 $ 71,329,133
2019 2019 0.3499% $ 120,518,805 $ 68,038,591
2018 2018 0.3461% $ 104,240,729 $ 65,771,799
2017 2017 0.3484% $ 103,046,280 $ 64,801,659
2016 2016 0.3356% $ 84,737,012 $ 60,358,527
2015 2015 0.3067% $ 39,616,455 $ 57,879,163
2014 2014 0.3018% $ 18,416,343 $ 55,095,601
County's
Proportionate
Share of the
FRS Net Pension
Liability as a
Percentage of
Covered Payroll
220.06%
177.13%
158.49%
159.02%
140.39%
68.45%
33.43%
FRS Plan
Fiduciary Net
Position as a
Percentage of
Total Pension
Liability
78.85%
82.61%
84.26%
83.89%
84.88%
92.00%
96.09%
Schedule of the County's Proportionate Share of the Net Pension Liability
Retiree Health Insurance Subsidy (HIS) Program Defined Benefit Pension Plan
Fiscal Year
Ending
September 30,
2020
2019
2018
2017
2016
2015
2014
Plan Sponsor
Measurement
Date
June 30,
2020
2019
2018
2017
2016
2015
2014
County's
Proportion
of the HIS
Net Pension
Liability
0.2479%
0.2428%
0.2397%
0.2374%
0.2281 %
0.2232%
0.2186%
County's
Proportionate
Share of the
HIS Net Pension
Liability
30,268,499
27,171,124
25, 374,133
25,383,666
26,578,559
22,760,252
20,441,863
County's
Covered
Payroll
86,079,134
81,262,395
78,355,087
75,720,001
70,444,190
67,812,302
64,984,255
County's
Proportionate
Share of the
HIS Net Pension
Liability as a
Percentage of
Covered Payroll
35.16%
33.44%
32.39%
33.52%
37.73%
33.56%
31.46%
HIS Plan
Fiduciary Net
Position as a
Percentage of
Total Pension
Liability
3.00%
2.63%
2.15%
1.64%
0.97%
0.50%
0.99%
The County implemented GASB Statement No. 68 for the fiscal year ended September 30, 2015, including a
restatement as of September 30, 2014. Information for prior years is not available. This schedule is being built
prospectively. Ultimately, 10 years of data will be presented.
Information on the above defined benefit pension plan's annual money -weighted rate of return on pension plan
investments can be obtained in a separately issued report. Information may also be requested by calling the
Florida Department of Management Services at (844) 377-1888 or online at frs.myflorida.com, click on
publications, then annual reports.
113
Fiscal Year
Ending
September 30,
Indian River County, Florida
Required Supplementary Information
For the Year Ended September 30, 2020
Schedule of the County's Contributions
Florida Retirement System (FRS) Defined Benefit Pension Plan
FRS FRS Contributions
Contractually in Relation to the
Required Contractually
Contribution Required Contribution
2020 $ 12,325,839 $ 12,325,839
2019 $ 11,186,468 $ 11,186,468
2018 $ 10,011,292 $ 10,011,292
2017 $ 9,099,495 $ 9,099,495
2016 $ 8,660,907 $ 8,660,907
2015 $ 7,503,166 $ 7,503,166
2014 $ 6,760,058 $ 6,760,058
FRS
Contribution
Deficiency
(Excess)
County's
Covered
Payroll
71,928,506
69,181,344
65,642,971
64,835,532
61,851,481
57,717,461
56,156,975
FRS Contributions
as a Percentage of
Covered Payroll
Schedule of the County's Contributions
Retiree Health Insurance Subsidy (HIS) Program Defined Benefit Pension Plan
Fiscal Year
Ending
September 30,
2020
2019
2018
2017
2016
2015
2014
HIS
Contractually
Required
Contribution
$ 1,444,839
$ 1,373,064
$ 1,299,514
$ 1,262,482
$ 1,198,477
$ 918,200
$ 782,940
HIS Contributions
in Relation to the
Contractually
Required Contribution
1,444,839
1,373,064
1,299,514
1,262,482
1,198,477
918,200
782,940
HIS
Contribution
Deficiency
(Excess)
County's
Covered
Payroll
87,086,582
82,736,898
78,304,866
76,071,289
72,247,706
67,455,498
66,229,010
17.14%
16.17%
15.26%
14.03%
14.01%
13.00%
11.94%
HIS Contributions
as a Percentage of
Covered Payroll
1.66%
1.66%
1.66%
1.66%
1.66%
1.36%
1.18%
The County implemented GASB Statement No. 68 for the fiscal year ended September 30, 2015, including a
restatement as of September 30, 2014. Information for prior years is not available. This schedule is being built
prospectively. Ultimately, 10 years of data will be presented.
114
Indian River County, Florida
Required Supplementary Information
Fiscal Year Ended September 30, 2020
Schedules of Changes in Net OPEB Liability and Related Ratios
Fiscal year ending September 30, 2020
Total OPEB liability
Service cost
Interest on the total OPEB liability
Difference between expected
and actual experience
Changes of assumptions and other inputs
Benefit payments
Net change in total OPEB liability
$ 638,013
1,953,393
2,869,333
(2,051,215)
(2,577,846)
2019
2018
$ 528,585 $
1,943,022
(2,238,521)
831,678 233,086
Total OPEB liability - beginning 33,207,465
Total OPEB liability - ending (a) $ 34,039,143
Plan fiduciary net position
Employer contributions
OPEB plan net investment income
Benefit payments
Net change in plan fiduciary net position
$
2,206,025
2,518,479
(2,577,846)
32,974,379
2017
498,665 $
2,443,943
673,067
2,405,638
2,762,722
(11,946,117)
(2,037,101) (2,494,672)
(8,277,888)
41,252,267
$ 33,207,465 $
584,033
40,668,234
32,974,379 $ 41,252,267
$ 2,178, 500 $
1,047,018
(2,238,521)
2,146,658 986,997
Plan fiduciary net position - beginning 30,507,845
Plan fiduciary net position - ending (b) $ 32,654,503
Net OPEB liability - ending (a) - (b) $
Plan fiduciary net position as a percentage
of total OPEB liability
Covered payroll*
Net OPEB liability as a percentage
of covered payroll
2,461,947 $
1,425,540
(2,037,101)
1,850,386
29,520,848 27,670,462
$ 30,507,845 $ 29,520,848
1,384,640 $ 2,699,620 $
2,274,341
2,387,483
(2,494,672)
2,167,152
25,503,310
$ 27,670,462
3,453,531 $ 13,581,805
95.93% 91.87% 89.53% 67.08%
$ 88,630,805 $ 82,697,197 $ 80,387,008 $ 77,080,800
1.56% 3.26%
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, 2020).
GASB 74 was implemented in fiscal year 2017. This schedule is being built prospectively.
Ultimately, 10 years of data will be presented.
* Estimate
115
4.30%
17.62%
Indian River County, Florida
Required Supplementary Information
For the Year Ended September 30, 2020
Schedule of OPEB Contributions
Actual
Actuarially Contribution Contribution
FY Ending Determined Actual Deficiency Covered as a % of
September 30, Contribution Contribution (Excess) Payroll Covered Payroll
2020 $ 1,005,952 $ 2,206,025 $ (1,200,073) $ 88,630,805 2.49%
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.
116
Valuation Date:
Notes
Indian River County, Florida
Required Supplementary Information
For the Year Ended September 30, 2020
Notes to Schedule of OPEB Contributions
October 1, 2019
Actuarially determined contribution rates are calculated as of October 1, the
beginning of the fiscal year preceding the year in which contributions are
reported.
Methods and Assumptions Used to Determine Contribution Rates:
Actuarial Cost Method
Amortization Method
Remaining Amortization Period
Asset Valuation Method
Inflation
Salary Increases
Investment Rate of Return
Retirement Age
Mortality
Health Care Trend Rates
Aging factors
Expenses
Entry Age Normal
Level Percentage of Payroll, Closed
8 years
Market Value
2.50%
3.7% to 7.8%, including inflation; varies by plan type and years of service.
6.00%
Experience -based table of rates that are specific to the plan and type of
eligibility condition.
Mortality tables used in July 1, 2018 actuarial valuation of the Florida
Retirement System. They are based on the results of a statewide experience
study covering the period 2008 to 2013 and include generational projections.
Based on the Getzen Model, with trend starting at 6.5% and gradually decreasing
to an ultimate trend rate of 4.24%.
Based on the 2013 SOA Study "Health Care Costs - From Birth to Death". See Section C
of the October 1, 2019, Actuarial Valuation Report dated March 13, 2020.
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.
117
Indian River County, Florida
Required Supplementary Information
For the Year Ended September 30, 2020
Schedule of OPEB Investment Returns Multiyear
FY Ending Annual
September 30, Return*
2020 7.99%
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.
118
COMBINING AND INDIVIDUAL
FUND STATEMENTS
AND
SCHEDULES
NONMAJOR GOVERNMENTAL FUNDS
Court Facilities -
Section 8 Rental Assistance -
Secondary Roads Construction -
Special Law Enforcement -
SPECIAL REVENUE FUNDS
To account for the court facility surcharge, additional
court costs, the additional recording fee for court
technology, and improvements made to court facilities.
To account for the provision of rental assistance for low
income housing. Financing is provided by grants from the
U.S. Department of Housing and Urban Development.
To account for the expenditures of 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.
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.
120
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.
Metropolitan Planning Organization- To account for expenditures incurred for planning
community transportation in the County. Financing is
provided by grants.
Native Uplands Land Acquisition-
CDBG Neighborhood Stabilization
Program -
SHIP Coronavirus Relief -
To account for expenditures related to the acquisition of
native habitat preserve areas and for the management of
such lands. Funding is provided by developers of property
who pay to mitigate native uplands destruction where
native upland plant communities will be destroyed.
To account for the 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.
To account for revenues and expenditures from the
Coronavirus Aid, Relief, and Economic Security (CARES) Act
federal grant. This grant was provided to assist with rental
and mortgage assistance, related expenses, and housing
rehabilitation by State Housing Initiative Partnership (SHIP)
jurisdictions.
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.
121
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.
CARES Act- To account for revenues and expenditures from the
Coronavirus Aid, Relief, and Economic Security (CARES) Act
federal grant. This grant was provided to assist with
navigating the impact of the COVID-19 outbreak.
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 -
Jackie Robinson Training
Complex Reserve -
Clerk Special Revenue -
To account for the expenditure of funds to improve roads
in the Vero Lake Estates subdivision. Funds are provided by
the levying of special assessments.
To provide additional improvements to the Jackie Robinson
Training Complex per a lease agreement. Funds are
provided from tourist tax and one -cent sales tax.
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.
122
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 (NSP3)-
Spring Training Facility Bonds -
Land Acquisition Bonds -
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.
DEBT SERVICE FUNDS
To account for the accumulation of State assistance and
tourist tax monies pledged to pay the principal, interest,
and fiscal charges on the Spring Training Facility Bonds.
To account for the accumulation of ad valorem taxes to
pay the principal, interest, and fiscal charges related to
the Land Acquisition Bonds and Note.
MAJOR CAPITAL PROJECTS FUND
Optional Sales Tax- To account for revenues generated by the local option one
cent sales tax. Monies are used for various capital projects.
123
Indian River County, Florida
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2020
Special Revenue
Court
Facilities
Section 8 Rental
Assistance
Secondary Road Special Law
Construction Enforcement
ASSETS
Cash and investments $ 281,315 $ 452,849 $ 6,469,341 $ 340,921
Accounts receivable 1,074
Due from other funds -
Due from other governments 1,981,775 -
Interest receivable 527 95 14,022 617
Inventories -
Prepaids and other assets 4,978
Total Assets $ 281,842 $ 458,996 $ 8,465,138 $ 341,538
LIABILITIES
Accounts payable $ 37,626 $ 17,758 $ 773,846 $
Retainage payable
Due to other funds
Due to other governments -
Other deposits held in escrow
Unearned revenues 89,807
Total Liabilities 37,626 107,565 773,846
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - state and federal grants
Unavailable revenue - investment interest
Total Deferred Inflows of Resources
FUND BALANCES
Nonspendable:
Inventories
158
1,565,430 -
4,223 186
158
1,569,653 186
Prepaid items 4,978
Restricted for:
Transportation/road improvements 6,121,639
Court -related costs and improvements 244,058
Housing assistance - 346,453
Law enforcement/public safety - 341,352
Tourism -related activities
Boating related projects
Land acquisition
Stormwater, street lighting, and other special
assessments
Voting/election activities
Coronavirus assistance
Debt service
Committed to:
Environmental conservation/preservation
Law Enforcement/public safety
Assigned to:
Law enforcement/public safety
Unassigned (deficit)
Total Fund Balances 244,058 351,431 6,121,639 341,352
Total Liabilities and Fund Balances $ 281,842 $ 458,996 $ 8,465,138 $ 341,538
124
Special Revenue
State Housing Metropolitan
Tree Ordinance Tourist Initiatives Planning
Fines Development 911 Surcharge Drug Abuse Partnership Organization
$ 666,488 $ 1,296,817 $ 1,323,511 $ 314,924 $ 634,602 $
18,600 21,768
- - 75,412 465
1,354 1,223 2,721 637 1,313
1,201
93,053
$ 686,442 $ 1,298,040 $ 1,401,644 $ 315,561 $ 658,148 $
94,254
$ - $ 129,503 $ 31,561 $ $ 8,818 $
952 -
72,649
15,909
75,000
952 129,503 31,561 81,467 90,909
- - 11,168 465
408 368 820 192 395
93,053
408 368 11,988 192 860
93,053
685,082
- 1,358,095
1,168,169 -
315,369
575,821
- (89,708)
685,082 1,168,169
1,358,095 315,369
575,821 (89,708)
$ 686,442 $ 1,298,040 $ 1,401,644 $ 315,561 $ 658,148 $ 94,254
Continued
125
Indian River County, Florida
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2020
Special Revenue
CDBG
Neighborhood
Native Uplands Stabilization SHIP Coronavirus
Land Acquisition Program Relief
ASSETS
Cash and investments $ 372,541 $ 263,528 $ 554,671
Accounts receivable
Due from other funds
Due from other governments 50,000 15,941
Interest receivable 775 513 1,163
Inventories
Prepaids and other assets 2,292
Total Assets $ 423,316 $ 279,982 $ 558,126
LIABILITIES
Accounts payable $ 9,439 $ 3,154 $ 4,088
Retainage payable 6,305
Due to other funds
Due to other governments
Other deposits held in escrow
Unearned revenues 551,833
Total Liabilities 15,744 3,154 555,921
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - state and federal grants 50,000 15,941 -
Unavailable revenue - investment interest 233 155 350
Total Deferred Inflows of Resources 50,233 16,096 350
FUND BALANCES
Nonspendable:
Inventories -
Prepaid items - 2,292
Restricted for:
Transportation/road improvements - -
Court -related costs and improvements
Housing assistance - 260,732
Law enforcement/public safety -
Tourism -related activities
Boating related projects -
Land acquisition
Stormwater, street lighting, and other special
assessments
Voting/election activities
Coronavirus assistance -
Debt service -
Committed to:
Environmental conservation/preservation 357,339
Law Enforcement/public safety -
Assigned to:
Law enforcement/public safety
Unassigned (deficit) (437)
Total Fund Balances 357,339 260,732 1,855
Total Liabilities and Fund Balances $ 423,316 $ 279,982 $ 558,126
126
Special Revenue
Florida Boating
Improvement Disabled Access Federal/State Traffic Education
Program Program Grants Program CARES Act Land Acquisition
$ 1,331,930 $ 72,302 $ 449 $ 133,233 $ 2,996,131 $ 1,085,990
2,739
149
11,621
265 11,096 2,245
$ 1,334,669 $ 72,451 $ 12,070 $ 133,498 $ 3,007,227 $ 1,088,235
$ $ $ 6,070 $ $ 1,879,531 $ 4,354
- 6,000 -
1,097,220
12,070
2,976,751 4,354
825 45 80 3,343 676
825 45 - 80 3,343 676
72,406
1,333,844
133,418
27,133
1,083,205
1,333,844 72,406
133,418
27,133 1,083,205
1,334,669 $ 72,451 $
12,070 $ 133,498 $
3,007,227 $ 1,088,235
Continued
127
ASSETS
Cash and investments
Accounts receivable
Due from other funds
Due from other governments
Interest receivable
Inventories
Prepaids and other assets
Total Assets
Indian River County, Florida
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2020
Special Revenue
Jackie Robinson
East Gifford Vero Lakes Training Complex Clerk Special
Stormwater Estates Reserve Revenue
26,440 $ 1,140,071 $ 648,788 $ 1,064,842
17,032
10 2,462
2,605
55 2,012 1,488 -
106,508
26,505 $ 1,144,545 $
650,276 $ 1,190,987
LIABILITIES
Accounts payable $ $ 14 $ 26,474 $ 34,528
Retainage payable -
Due to other funds 851,024 -
Due to other governments - - 179
Other deposits held in escrow - 14,580
Unearned revenues - -
Total Liabilities 14 877,498 49,287
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - state and federal grants
Unavailable revenue - investment interest 17 606 448
Total Deferred Inflows of Resources 17 606 448
FUND BALANCES
Nonspendable:
Inventories
Prepaid items - - 106,508
Restricted for:
Transportation/road improvements
Court -related costs and improvements - - 1,035,192
Housing assistance - -
Law enforcement/public safety -
Tourism -related activities -
Boating related projects - -
Land acquisition - -
Stormwater, street lighting, and other special
assessments 26,488 1,143,925
Voting/election activities
Coronavirus assistance
Debt service
Committed to:
Environmental conservation/preservation - -
Law Enforcement/public safety - - -
Assigned to:
Law enforcement/public safety
Unassigned (deficit) (227,670)
Total Fund Balances 26,488 1,143,925 (227,670) 1,141,700
Total Liabilities and Fund Balances $ 26,505 $ 1,144,545 $ 650,276 $ 1,190,987
128
Special Revenue Debt Service
Sheriff Special
Revenue
Supervisor of
Elections Special
Revenue
Street Lighting Spring Training
Districts CDBG NSP3 Grant Facility Bonds
Total
Nonmajor
Governmental
Funds
$ 2,366,716 $
380,692
22,251
83,988 $
610,067 $
2,687
1,295
190,674 $
391
626,160 $ 25,350,490
439,166
5,159
2,230,872
1,368 48,063
22,251
113,778
$ 2,769,659 $
83,988 $
$ 150,984 $
83,444
614,049 $
12,319 $
191,065 $
627,528 $
28,209,779
3,145, 976
7,257
932,024
179
14,580
1,894,953
150,984
83,444
12,319
5,994,969
389
389
118
412
1,736,057
14,447
118
412
1,750,504
22,251
2,373,334
544
76,921
146,169
601,341
190,947
627,116
22,251
113,778
6,121,639
1,279,250
1,373,953
4,593,974
1,168,169
1,333,844
1,083,205
1,771,754
544
27,133
627,116
1,042,421
76,921
146,169
(317,815)
2,618,675 544 601,341
190,947 627,116 20,464,306
$ 2,769,659 $ 83,988 $ 614,049 $ 191,065 $ 627,528 $ 28,209,779
129
Indian River County, Florida
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended September 30, 2020
REVENUES
Taxes
Permits, fees and special assessments
Intergovernmental
Charges for services
Judgments, fines and forfeits
Interest
Miscellaneous
Total revenues
EXPENDITURES
Current:
General government
Public safety
Physical environment
Transportation
Economic environment
Human services
Culture/recreation
Court related
Debt service:
Principal
Interest and other fiscal charges
Total expenditures
Special Revenue
Section 8 Secondary
Court Rental Road
Facilities Assistance Construction
$
$ - $ 3,598,127
2,556,861 285,495
586,384 31,410
3,367 2,425 126,627
83,124
589,751
2,590,696 4,093,373
17,628
2,565,567
556,673
5,987,622
574,301
2,565,567 5,987,622
Excess of revenues over (under) expenditures 15,450 25,129 (1,894,249)
OTHER FINANCING SOURCES (USES)
Transfers in 740 -
Transfers out (188,362)
Total other financing sources (uses) 740 - (188,362)
Net changes in fund balances 16,190 25,129 (2,082,611)
Fund balances at beginning of year 227,868 326,302 8,204,250
Fund balances at end of year $ 244,058 $ 351,431 $ 6,121,639
130
Special Revenue
Tree State Housing
Special Law Ordinance Tourist Initiatives
Enforcement Fines Development 911 Surcharge Drug Abuse Partnership
$
$
41,860
97,465
6,005
$ 1,017,849 $ - $
822,353
79,900
10,450 8,436 20,015
499 89
37,530
4,735
$
285,582
282,792
8,783
7,343
145,330
90,350 1,026,784
842,457 42,265 584,500
576,410
26,974 917,852
1,139 285,582
26,974
917,852 576,410
1,139 285,582
145,330 63,376
108,932 266,047
41,126 298,918
(158,110) - (286,624)
(158,110) - (286,624)
(12,780)
354,132
63,376
621,706
108,932
1,059,237
(20,577)
1,378,672
41,126 298,918
274,243 276,903
$ 341,352 $ 685,082 $ 1,168,169 $ 1,358,095 $ 315,369 $ 575,821
Continued
131
Indian River County, Florida
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended September 30, 2020
Special Revenue
CDBG
Metropolitan Native Neighborhood
Planning Uplands Land Stabilization
Organization Acquisition Program
REVENUES
Taxes $ - $ $ -
Permits, fees and special assessments
Intergovernmental 414,586 40,446
Charges for services 10,580
Judgments, fines and forfeits -
Interest 8,704 2,525
Miscellaneous 7,750 204,674
Total revenues 414,586 27,034 247,645
EXPENDITURES
Current:
General government
Public safety
Physical environment
Transportation
Economic environment
Human services
Culture/ recreation
Court related
Debt service:
Principal
Interest and other fiscal charges
Total expenditures
506,729
231,016
131,889
36,593
506,729
362,905 36,593
Excess of revenues over (under) expenditures (92,143) (335,871) 211,052
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out - - -
Total other financing sources (uses) - Net changes in fund balances (92,143) (335,871) 211,052
Fund balances at beginning of year 2,435 693,210 49,680
Fund balances at end of year $ (89,708) $ 357,339 $ 260,732
132
Special Revenue
Florida
SHIP Boating Disabled Traffic
Coronavirus Improvement Access Federal/State Education
Relief Program Program Grants Program CARES Act
$ - $ - $ $ - $ $
20,468 79,129 - 919,933 - 5,879,112
160 - 50,224
1,855 27,364 1,169 - 2,035 27,133
22,323 106,493 1,329 919,933 52,259 5,906,245
9,149
4,438
6,881 22,025
916,753
24,528
660,711
782,812
58,430
39,519
210,000
2,380,081
198,480
20,468 22,025
916,753
24,528 4,330,033
1,855 84,468
1,329 3,180
27,731 1,576,212
(757,138)
(1,549,079)
(757,138)
(1,549,079)
1,855
(672,670)
2,006,514
1,329 3,180 27,731 27,133
71,077
(3,180) 105,687
$ 1,855 $ 1,333,844 $ 72,406 $ - $ 133,418 $ 27,133
Continued
133
Indian River County, Florida
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended September 30, 2020
Special Revenue
Land East Gifford Vero Lakes
Acquisition Stormwater Estates
REVENUES
Taxes $ $ 23 $ 78
Permits, fees and special assessments - 948 243,058
Intergovernmental -
Charges for services - - -
Judgments, fines and forfeits
Interest 17,828 420 22,146
Miscellaneous
Total revenues 17,828 1,391 265,282
EXPENDITURES
Current:
General government - -
Public safety
Physical environment 102,993 -
Transportation 766,772
Economic environment - -
Human services - -
Culture/recreation - -
Court related
Debt service:
Principal - -
Interest and other fiscal charges - Total expenditures 102,993 - 766,772
Excess of revenues over (under) expenditures (85,165) 1,391 (501,490)
OTHER FINANCING SOURCES (USES)
Transfers in - 188,362
Transfers out - (61) (5,023)
Total other financing sources (uses) - (61) 183,339
Net changes in fund balances (85,165) 1,330 (318,151)
Fund balances at beginning of year 1,168,370 25,158 1,462,076
Fund balances at end of year $ 1,083,205 $ 26,488 $ 1,143,925
134
Special Revenue
Jackie
Robinson Supervisor of
Training Elections Street
Complex Clerk Special Sheriff Special Special Lighting CDBG NSP3
Reserve Revenue Revenue Revenue Districts Grant
$ 678,566 $ $ $ $ 4,343 $
261,019 -
8,379 340,126 192,293
516,826 312,874 - -
45,562
10,018 6,674 50 266 12,077 2,745
69,369 538,523 1,267 38,529
696,963 592,869 1,237,135 192,559
278,706 41,274
864,932 199,861
1,015,383
917,283
316,424
917,283
864,932 1,015,383
199,861 316,424
(220,320) (272,063)
221,752 (7,302)
(37,718) 41,274
150,000
158,110 4,907
(8,414)
150,000 - 158,110 4,907 (8,414)
(70,320) (272,063) 379,862 (2,395) (46,132) 41,274
(157,350) 1,413,763 2,238,813 2,939 647,473 149,673
$ (227,670) $ 1,141,700 $ 2,618,675 $ 544 $ 601,341 $ 190,947
Continued
135
Indian River County, Florida
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended September 30, 2020
REVENUES
Taxes
Permits, fees and special assessments
Intergovernmental
Charges for services
Judgments, fines and forfeits
Interest
Miscellaneous
Total revenues
Debt Service
Total
Spring Land Nonmajor
Training Acquisition Governmental
Facility Bonds Bonds Funds
$
$ 4,608,719 $ 9,907,705
505,025
491,625 12,336,388
1,782,726
310,841
10,957 78,065 422,874
951,167
502,582
4,686,784 26,216,726
EXPENDITURES
Current:
General government - - 2,259,010
Public safety 2,374,605
Physical environment - - 392,439
Transportation - 7,134,865
Economic environment - - 246,593
Human services 6,153,560
Culture/recreation - - 2,221,384
Court related - 556,673
Debt service:
Principal 290,000 7,268,000 7,558,000
Interest and other fiscal charges 201,625 124,149 325,774
Totat expenditures 491,625 7,392,149 29,222,903
Excess of revenues over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total other financing sources (uses)
Net changes in fund balances
10,957 (2,705,365) (3,006,177)
1,133,942 1,636,061
(162,852) (3,115,663)
971,090 (1,479,602)
10,957
(1,734,275) (4,485,779)
Fund balances at beginning of year 616,159 1,734,275 24,950,085
Fund balances at end of year $ 627,116 $ $ 20,464,306
136
Indian River County, Florida
Budgetary Comparison Schedule
Court Facilities
For the Year Ended September 30, 2020
REVENUES
Charges for services
Interest
Total revenues
EXPENDITURES
General government
Court related
Total expenditures
Excess of revenues over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Total other financing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
137
Final
Budget
$
Actual
Amounts
Variance
Positive
(Negative)
543,500 $ 586,384 $ 42,884
6,500 3,367 (3,133)
550,000 589,751
35,652
630,856
666,508
(116,508)
740
740
(115,768)
115,768
17,628
556,673
574,301
15,450
740
740
16,190
227,868
39,751
18,024
74,183
92,207
131,958
131,958
112,100
$ $ 244,058 $ 244,058
Indian River County, Florida
Budgetary Comparison Schedule
Section 8 Rental Assistance
For the Year Ended September 30, 2020
REVENUES
Intergovernmental
Charges for services
Interest
Total revenues
EXPENDITURES
Human services
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
138
Variance
Final Actual Positive
Budget Amounts (Negative)
$ 2,634,904 $ 2,556,861 $ (78,043)
25,095 31,410 6,315
2,425 2,425
2,659,999 2,590,696 (69,303)
2,783,933 2,565,567 218,366
2,783,933
(123,934)
123,934
2,565,567 218,366
25,129
326,302
149,063
202,368
$ $ 351,431 $ 351,431
Indian River County, Florida
Budgetary Comparison Schedule
Secondary Road Construction
For the Year Ended September 30, 2020
REVENUES
Taxes
Intergovernmental
Interest
Miscellaneous
Total revenues
EXPENDITURES
Transportation
Total expenditures
Excess of revenues over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
139
Final
Budget
Actual
Amounts
$ 3,583,875 $ 3,598,127
3,458,056 285,495
33,250 126,627
83,124
7,075,181 4,093,373
11,281,773 5,987,622
11,281,773 5,987,622
(4,206,592) (1,894,249)
(188,362) (188,362)
(188,362) (188,362)
(4,394,954) (2,082,611)
4,394,954 8,204,250
$
Variance
Positive
(Negative)
$ 14,252
(3,172,561)
93,377
83,124
(2,981,808)
5,294,151
5,294,151
2,312,343
2,312,343
3,809,296
- $ 6,121,639 $ 6,121,639
Indian River County, Florida
Budgetary Comparison Schedule
Special Law Enforcement
For the Year Ended September 30, 2020
REVENUES
Charges for services
Judgments, fines and forfeits
Interest
Total revenues
OTHER FINANCING SOURCES (USES)
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
140
Final
Budget
$
(180,000)
(180,000)
(180,000)
180,000
$
Actual
Amounts
Variance
Positive
(Negative)
41,860 $ 41,860
97,465 97,465
6,005 6,005
145,330 145,330
(158,110)
(158,110)
(12, 780)
354,132
$
21,890
21,890
167,220
174,132
341,352 $ 341,352
Indian River County, Florida
Budgetary Comparison Schedule
Tree Ordinance Fines
For the Year Ended September 30, 2020
REVENUES
Judgments, fines and forfeits
Interest
Total revenues
Variance
Final Actual Positive
Budget Amounts (Negative)
$
50,000 $ 79,900 $ 29,900
10,450 10,450
50,000
90,350 40,350
EXPENDITURES
Culture/recreation 275,000 26,974 248,026
Total expenditures 275,000 26,974 248,026
Net change in fund balances (225,000) 63,376 288,376
Fund balances at beginning of year 225,000 621,706 396,706
Fund balances at end of year $ $ 685,082 $ 685,082
141
REVENUES
Taxes
Interest
Miscellaneous
Total revenues
Indian River County, Florida
Budgetary Comparison Schedule
Tourist Development
For the Year Ended September 30, 2020
Variance
Final Actual Positive
Budget Amounts (Negative)
$
997,500 $ 1,017,849 $ 20,349
950 8,436 7,486
499 499
998,450
1,026,784 28,334
EXPENDITURES
Culture/recreation 1,073,450 917,852 155,598
Total expenditures 1,073,450 917,852 155,598
Net change in fund balances (75,000) 108,932 183,932
Fund balances at beginning of year 75,000 1,059,237 984,237
Fund balances at end of year $ $ 1,168,169 $ 1,168,169
142
Indian River County, Florida
Budgetary Comparison Schedule
911 Surcharge
For the Year Ended September 30, 2020
REVENUES
Intergovernmental
Interest
Miscellaneous
Total revenues
EXPENDITURES
Public safety
Total expenditures
Excess of revenues over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
143
Final
Budget
$
Actual
Amounts
Variance
Positive
(Negative)
736,750 $ 822,353 $
20,015
89
736,750 842,457
1,262,063 576,410
1,262,063 576,410
(525,313) 266,047
(286,624) (286,624)
(286,624) (286,624)
(811,937)
811,937
(20, 577)
1,378,672
1,358,095
85,603
20,015
89
105,707
685,653
685,653
791,360
791,360
566,735
$
1,358,095
Indian River County, Florida
Budgetary Comparison Schedule
Drug Abuse
For the Year Ended September 30, 2020
REVENUES
Judgments, fines and forfeits
Interest
Total revenues
Variance
Final Actual Positive
Budget Amounts (Negative)
$
14,250 $ 37,530 $ 23,280
4,735 4,735
14,250
42,265 28,015
EXPENDITURES
Human services 50,000 1,139 48,861
Total expenditures 50,000 1,139 48,861
Net change in fund balances (35,750) 41,126 76,876
Fund balances at beginning of year 35,750 274,243 238,493
Fund balances at end of year $ $ 315,369 $ 315,369
144
Indian River County, Florida
Budgetary Comparison Schedule
State Housing Initiatives Partnership
For the Year Ended September 30, 2020
REVENUES
Intergovernmental
Charges for services
Interest
Miscellaneous
Total revenues
EXPENDITURES
Human services
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
145
Final
Budget
$
Actual
Amounts
358,231 $ 285,582
250,000 282,792
8,783
5,008 7,343
613,239 584,500
1,013,638 285,582
1,013,638 285,582
(400,399)
400,399
298,918
276,903
$ $ 575,821
Variance
Positive
(Negative)
$ (72,649)
32,792
8,783
2,335
(28,739)
728,056
728,056
699,317
(123,496)
$ 575,821
Indian River County, Florida
Budgetary Comparison Schedule
Metropolitan Planning Organization
For the Year Ended September 30, 2020
REVENUES
Intergovernmental
Total revenues
EXPENDITURES
General government
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
146
Final
Budget
$
Actual
Amounts
Variance
Positive
(Negative)
715,078 $ 414,586 $ (300,492)
715,078 414,586 (300,492)
715,078
715,078
506,729 208,349
506,729 208,349
(92,143)
2,435
(92,143)
2,435
$ - $ (89,708) $ (89,708)
Indian River County, Florida
Budgetary Comparison Schedule
Native Uplands Land Acquisition
For the Year Ended September 30, 2020
REVENUES
Intergovernmental
Charges for services
Interest
Miscellaneous
Total revenues
EXPENDITURES
Physical environment
Culture/recreation
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
147
Final
Budget
$
Actual
Amounts
309,316 $
309,316
472,605
150,000
622,605
(313,289)
313,289
Variance
Positive
(Negative)
$ (309,316)
10,580 10,580
8,704 8,704
7,750 7,750
27,034 (282,282)
231,016
131,889
241,589
18,111
362,905 259,700
(335,871)
693,210
(22,582)
379,921
$ $ 357,339 $ 357,339
REVENUES
Intergovernmental
Interest
Miscellaneous
Total revenues
EXPENDITURES
Economic environment
Total expenditures
Indian River County, Florida
Budgetary Comparison Schedule
CDBG Neighborhood Stabilization Program
For the Year Ended September 30, 2020
Final
Budget
$
Actual
Amounts
730,147 $
100
730,247
730,247
730,247
Variance
Positive
(Negative)
40,446 $ (689,701)
2,525 2,525
204,674 204,574
247,645 (482,602)
36,593
36,593
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year $ $
148
211,052
49,680
693,654
693,654
211,052
49,680
260,732 $ 260,732
Indian River County, Florida
Budgetary Comparison Schedule
SHIP Coronavirus Relief
For the Year Ended September 30, 2020
Variance
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Intergovernmental $ 572,301 $ 20,468 $ (551,833)
Interest - 1,855 1,855
Total revenues 572,301 22,323 (549,978)
EXPENDITURES
General government 10,859 9,149 1,710
Human services 554,561 4,438 550,123
Culture/ recreation 6,881 6,881
Total expenditures 572,301 20,468 551,833
Net change in fund balances - 1,855 1,855
Fund balances at beginning of year -
Fund balances at end of year $ $ 1,855 $ 1,855
149
Indian River County, Florida
Budgetary Comparison Schedule
Florida Boating Improvement Program
For the Year Ended September 30, 2020
REVENUES
Intergovernmental
Interest
Total revenues
EXPENDITURES
Culture/recreation
Total expenditures
Excess of revenues over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
150
Final
Budget
$
Actual
Amounts
Variance
Positive
(Negative)
92,100 $ 79,129 $ (12,971)
27,364 27,364
92,100
106,493 14,393
94,100 22,025
94,100 22,025
72,075
72,075
(2,000) 84,468
(847,196) (757,138)
(847,196) (757,138)
(849,196)
849,196
$
(672,670)
2,006,514
$
1,333,844
86,468
90,058
90,058
176,526
1,157,318
$
1,333,844
Indian River County, Florida
Budgetary Comparison Schedule
Disabled Access Program
For the Year Ended September 30, 2020
REVENUES
Judgments, fines and forfeits
Interest
Total revenues
Variance
Final Actual Positive
Budget Amounts (Negative)
$
160 $ 160
1,169 1,169
1,329 1,329
EXPENDITURES
Human services 20,000 - 20,000
Total expenditures 20,000 - 20,000
Net change in fund balances (20,000) 1,329 21,329
Fund balances at beginning of year 20,000 71,077 51,077
Fund balances at end of year $ $ 72,406 $ 72,406
151
Indian River County, Florida
Budgetary Comparison Schedule
Federal/State Grants
For the Year Ended September 30, 2020
REVENUES
Intergovernmental
Total revenues
EXPENDITURES
Human services
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
152
Final
Budget
Actual
Amounts
Variance
Positive
(Negative)
$ 1,116,676 $ 919,933 $ (196,743)
1,116,676 919,933 (196,743)
1,116,676
1,116,676
$
916,753
916,753
3,180
(3,180)
199,923
199,923
3,180
(3,180)
Indian River County, Florida
Budgetary Comparison Schedule
Traffic Education Program
For the Year Ended September 30, 2020
REVENUES
Judgments, fines and forfeits
Interest
Total revenues
Variance
Final Actual Positive
Budget Amounts (Negative)
$
57,000 $ 50,224 $ (6,776)
2,035 2,035
57,000
52,259 (4,741)
EXPENDITURES
Transportation 49,000 24,528 24,472
Total expenditures 49,000 24,528 24,472
Net change in fund balances 8,000 27,731 19,731
Fund balances at beginning of year (8,000) 105,687 113,687
Fund balances at end of year $ $ 133,418 $ 133,418
153
Indian River County, Florida
Budgetary Comparison Schedule
CARES Act
For the Year Ended September 30, 2020
Variance
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Intergovernmental $ 11,638,933 $ 5,879,112 $ (5,759,821)
Interest 27,133 27,133
Total revenues 11,638,933 5,906,245 (5,732,688)
EXPENDITURES
General government 1,244,426 660,711 583,715
Public safety 782,168 782,812 (644)
Physical environment 64,517 58,430 6,087
Transportation 39,523 39,519 4
Economic environment 930,000 210,000 720,000
Human services 7,159,300 2,380,081 4,779,219
Culture/recreation 186,822 198,480 (11,658)
Total expenditures 10,406,756 4,330,033 6,076,723
Excess of revenues over (under) expenditures 1,232,177 1,576,212 344,035
OTHER FINANCING SOURCES (USES)
Transfers out (1,232,177) (1,549,079) (316,902)
Total other financing sources (uses) (1,232,177) (1,549,079) (316,902)
Net change in fund balances 27,133 27,133
Fund balances at beginning of year - - -
Fund balances at end of year $ - $ 27,133 $ 27,133
154
Indian River County, Florida
Budgetary Comparison Schedule
Land Acquisition
For the Year Ended September 30, 2020
Variance
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Intergovernmental $ 148,500 $ $ (148,500)
Interest 17,828 17,828
Total revenues 148,500 17,828 (130,672)
EXPENDITURES
Physical environment 1,099,121 102,993 996,128
Total expenditures 1,099,121 102,993 996,128
Net change in fund balances (950,621) (85,165) 865,456
Fund balances at beginning of year 950,621 1,168,370 217,749
Fund balances at end of year $ $ 1,083,205 $ 1,083,205
155
Indian River County, Florida
Budgetary Comparison Schedule
East Gifford Stormwater
For the Year Ended September 30, 2020
Variance
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Taxes $ - $ 23 $ 23
Permits, fees and special assessments 940 948 8
Interest 420 420
Total revenues 940 1,391 451
EXPENDITURES
Transportation 25,874 - 25,874
Total expenditures 25,874 25,874
Excess of revenues over (under) expenditures (24,934) 1,391 26,325
OTHER FINANCING SOURCES (USES)
Transfers out (66) (61) 5
Total other financing sources (uses) (66) (61) 5
Net change in fund balances (25,000) 1,330 26,330
Fund balances at beginning of year 25,000 25,158 158
Fund balances at end of year $ $ 26,488 $ 26,488
156
Indian River County, Florida
Budgetary Comparison Schedule
Vero Lakes Estates
For the Year Ended September 30, 2020
REVENUES
Taxes
Permits, fees and special assessments
Interest
Total revenues
EXPENDITURES
Transportation
Total expenditures
Excess of revenues over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
157
Final
Budget
$
238,450
2,850
Actual
Amounts
Variance
Positive
(Negative)
78 $
243,058
22,146
241,300 265,282
1,145,533 766,772
1,145,533 766,772
78
4,608
19,296
23,982
378,761
378,761
(904,233) (501,490) 402,743
188,362
(5,124)
188,362
(5,023)
183,238 183,339
(720,995)
720,995
$
(318,151)
1,462,076
$
101
101
402,844
741,081
1,143,925 $ 1,143,925
Indian River County, Florida
Budgetary Comparison Schedule
Jackie Robinson Training Complex Reserve
For the Year Ended September 30, 2020
REVENUES
Taxes
Intergovernmental
Interest
Total revenues
EXPENDITURES
Culture/recreation
Total expenditures
Excess of revenues over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Total other financing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
158
Final
Budget
$
Actual
Amounts
650,000 $
650,000
917,284
917,284
Variance
Positive
(Negative)
678,566 $
8,379
10,018
696,963
917,283
917,283
(267,284) (220,320)
150,000
150,000
(117, 284)
117,284
150,000
150,000
(70, 320)
(157,350)
28,566
8,379
10,018
46,963
1
1
46,964
46,964
(274,634)
$ $ (227,670) $ (227,670)
Indian River County, Florida
Budgetary Comparison Schedule
Clerk Special Revenue
For the Year Ended September 30, 2020
REVENUES
Charges for services
Interest
Miscellaneous
Total revenues
EXPENDITURES
General government
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
159
Final
Budget
$
Actual
Amounts
419,876 $
10,000
429,876
Variance
Positive
(Negative)
516,826 $
6,674
69,369
592,869
978,649 864,932
978,649 864,932
(548,773)
548,773
(272,063)
1,413,763
1,141,700
96,950
(3,326)
69,369
162,993
113,717
113,717
276,710
864,990
$
1,141,700
Indian River County, Florida
Budgetary Comparison Schedule
Sheriff Special Revenue
For the Year Ended September 30, 2020
REVENUES
Intergovernmental
Charges for services
Judgments, fines and forfeits
Interest
Miscellaneous
Total revenues
EXPENDITURES
Public safety
Total expenditures
Excess of revenues over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Total other financing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
160
Final
Budget
$ 340,126
250,000
70,000
543,458
Actual
Amounts
$
Variance
Positive
(Negative)
340,126 $
312,874 62,874
45,562 (24,438)
50 50
538,523 (4,935)
1,203,584 1,237,135 33,551
1,383,584 1,015,383
1,383,584 1,015,383
(180,000) 221,752
180,000 158,110
180,000 158,110
$
379,862
2,238,813
$ 2,618,675
368,201
368,201
401,752
(21,890)
(21,890)
379,862
2,238,813
$ 2,618,675
Indian River County, Florida
Budgetary Comparison Schedule
Supervisor of Elections Special Revenue
For the Year Ended September 30, 2020
Variance
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Intergovernmental $ 192,293 $ 192,293 $
Interest 266 266
Total revenues 192,293 192,559 266
EXPENDITURES
General government 197,200 199,861 (2,661)
Total expenditures 197,200 199,861 (2,661)
Excess of revenues over (under) expenditures (4,907) (7,302) (2,395)
OTHER FINANCING SOURCES (USES)
Transfers in 4,907 4,907 -
Total other financing sources (uses) 4,907 4,907
Net change in fund balances (2,395) (2,395)
Fund balances at beginning of year 2,939 2,939
Fund balances at end of year $ $ 544 $ 544
161
Indian River County, Florida
Budgetary Comparison Schedule
Street Lighting Districts
For the Year Ended September 30, 2020
REVENUES
Taxes
Permits, fees and special assessments
Interest
Miscellaneous
Total revenues
EXPENDITURES
Transportation
Total expenditures
Excess of revenues over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
162
Final
Budget
$
256,100
2,972
2,144
261,216
365,427
365,427
(104,211)
(8,926)
(8,926)
(113,137)
113,137
$
Actual
Amounts
4,343
261,019
12,077
1,267
278,706
316,424
316,424
(37,718)
(8,414)
(8,414)
(46,132)
647,473
$
Variance
Positive
(Negative)
$ 4,343
4,919
9,105
(877)
17,490
49,003
49,003
66,493
512
512
67,005
534,336
601,341 $ 601,341
Indian River County, Florida
Budgetary Comparison Schedule
CDBG NSP3 Grant
For the Year Ended September 30, 2020
Variance
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Interest $ - $ 2,745 $ 2,745
Miscellaneous - 38,529 38,529
Total revenues 41,274 41,274
Net change in fund balances 41,274 41,274
Fund balances at beginning of year - 149,673 149,673
Fund balances at end of year $ $ 190,947 $ 190,947
163
Indian River County, Florida
Budgetary Comparison Schedule
Spring Training Facility Bonds
For the Year Ended September 30, 2020
REVENUES
Intergovernmental
Interest
Total revenues
EXPENDITURES
Debt service:
Principal
Interest and other fiscal charges
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
164
Final
Budget
$
Actual
Amounts
Variance
Positive
(Negative)
475,000 $ 491,625 $ 16,625
475,000
290,000
209,238
499,238
(24,238)
24,238
10,957
502,582
290,000
201,625
491,625
10,957
616,159
10,957
27,582
7,613
7,613
35,195
591,921
$ $ 627,116 $ 627,116
Indian River County, Florida
Budgetary Comparison Schedule
Land Acquisition Bonds
For the Year Ended September 30, 2020
REVENUES
Taxes
Interest
Total revenues
EXPENDITURES
Debt service:
Principal
Interest and other fiscal charges
Total expenditures
Excess of revenues over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
165
Final
Budget
Actual
Amounts
Variance
Positive
(Negative)
$ 4,531,827 $ 4,608,719 $ 76,892
11,514 78,065 66,551
4,543,341 4,686,784 143,443
7,268,000
124,149
7,392,149
(2,848,808)
1,133,943
(162,853)
971,090
(1,877,718)
1,877,718
$
7,268,000
124,149
7,392,149
(2,705,365) 143,443
1,133,942
(162,852)
971,090
(1,734,275)
1,734,275
(1)
1
143,443
(143,443)
REVENUES
Taxes
Intergovernmental
Interest
Miscellaneous
Total revenues
EXPENDITURES
Capital projects
Total expenditures
Indian River County, Florida
Budgetary Comparison Schedule
Optional Sales Tax Capital Projects Fund
For the Year Ended September 30, 2020
Final
Budget
$
18, 050, 000
8,981,891
237,500
27,269,391
63,325,951
63,325,951
Excess of revenues over (under) expenditures (36,056,560)
OTHER FINANCING USES
Transfers out
Total other financing uses
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
(1,601,078)
(1,601,078)
(37,657,638)
37,657,638
Actual
Amounts
$
18, 984, 618
5,732
1,460,299
1,593,398
22,044,047
17,302,374
17,302,374
4,741,673
(1,491,475)
(1,491,475)
3,250,198
87,540,435
Variance
Positive
(Negative)
$ 934,618
(8,976,159)
1,222,799
1,593,398
(5,225,344)
46,023,577
46,023,577
40,798,233
109,603
109,603
40,907,836
49,882,797
$ - $ 90,790,633 $ 90,790,633
166
INTERNAL SERVICE FUNDS
Fleet Management -
Self Insurance -
Information Technology -
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.
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.
To account for the expenses incurred for maintaining
the County's computer services, geographic
information and telecommunications systems.
Revenues are generated by charging user departments
based on their number of computer equipment
and their use of the geographic information and
telecommunications systems.
167
Indian River County, Florida
Combining Statement of Net Position
Internal Service Funds
September 30, 2020
ASSETS
Current assets:
Cash and investments
Accounts receivable - net
Due from other governments
Interest receivable
Inventories
Prepaids and other assets
Total current assets
Non-current assets:
Capital assets - non -depreciable
Capital assets - depreciable
Capital assets - accumulated depreciation
Total non-current assets
Total assets
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions
Deferred outflows related to other postemployment
benefits
Total deferred outflows of resources
LIABILITIES
Current liabilities (payable from current assets):
Accounts payable
Claims payable
Accrued compensated absences
Total current liabilities (payable from current
assets)
Non-current liabilities:
Accrued compensated absences
Claims payable
Net pension liability
Net other postemployment benefits liability
Total non-current liabilities
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions
Deferred inflows related to other postemployment
benefits
Total deferred inflows of resources
NET POSITION
Net investment in capital assets
Unrestricted (deficit)
Total net position
Fleet
Management
Self
Insurance
Information
Technology
Totals
$
483,734 $ 33,214,427
57,876 736,615
19,011 1,471
1,012 63,826
247,762
1,499,877
$
1,447,680
19,305
3,138
87,069
$
35,145,841
794,491
39,787
67,976
247,762
1,586,946
809,395 35,516,216
1,557,192
37,882,803
486,667
(456,464)
3,321
(2,790)
134,672
4,214,522
(2,788,203)
134,672
4,704,510
(3,247,457)
30,203
531
1,560,991
1,591,725
839,598
35,516,747
3,118,183
39,474,528
149,902
17,160
71,884
7,164
282,979
35,015
504,765
59,339
167,062
79,048
317,994
564,104
225,334 5,326,742 349,771 5,901,847
2,649,000 2,649,000
17,883 13,398 62,410 93,691
243,217 7,989,140 412,181 8,644,538
13,402 8,168 79,578 101,148
5,295,000 5,295,000
443,819 242,655 939,997 1,626,471
5,148 2,284 5,998 13,430
462,369 5,548,107 1,025,573 7,036,049
705,586 13,537,247 1,437,754 15,680,587
10,325 4,437 6,293 21,055
36,753 15,550 66,813 119,116
47,078 19,987 73,106 140,171
30,203 531 1,388,088 1,418,822
223,793 22,038,030 537,229 22,799,052
$
253,996 $ 22,038,561 $ 1,925,317 $ 24,217,874
168
OPERATING REVENUES
Charges for services
Total revenues
Indian River County, Florida
Combining Statement of Revenues, Expenses,
and Changes in Fund Net Position
Internal Service Funds
For the Year Ended September 30, 2020
Fleet
Management
Self
Insurance
Information
Technology
Totals
$ 2,673,847 $ 29,565,736 $ 3,198,118 $ 35,437,701
2,673,847 29,565,736 3,198,118 35,437,701
OPERATING EXPENSES
Personal services 531,014
Material, supplies, services and other operating 2,250,119
Depreciation 9,909
Total operating expenses
Operating income (toss)
NONOPERATING REVENUES (EXPENSES)
Intergovernmental
Interest income
Loss on disposal of assets
Total nonoperating revenues (expenses)
1,543,449
27,183, 242
236
1,634,371
898,779
387,760
3,708,834
30, 332,140
397,905
2,791,042 28,726,927
2,920,910 34,438,879
(117,195) 838,809
7,712
1,296
496,130
277,208
7,517
20,047
(1,254)
998,822
8,813
523,889
(1,254)
7,712
497,426
26,310
531,448
Income (loss) before transfers (109,483)
Capital grants and contributions
Transfers
Change in net position (109,483)
Total net position - beginning 363,479
Total net position - ending $ 253,996
1,336,235
773,799
303,518 1,530,270
173,672
128,196
173,672
901,995
2,110, 034
19,928,527
605,386
1,319,931
2,605,937
21,611,937
$
22,038,561
$
1,925,317 $ 24,217,874
169
Indian River County, Florida
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended September 30, 2020
Fleet
Management
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $ 2,750,266
Cash paid to suppliers for goods and services (2,308,331)
Cash paid to employees for services (483,488)
Net cash provided by (used in) operating activities (41,553)
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfers
Net cash provided by noncapital financing activities
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Purchase of capital assets
Net cash provided by (used in) capital and
related financing activities
CASH FLOWS FROM INVESTING ACTIVITIES
Interest and dividends on investments
Net cash provided by investing activities
Self
Insurance
$ 30,654,386
(27,907,854)
(1,514,577)
1,231,955
Information
Technology Totals
$ 3,198,574
(805,897)
(1,496,277)
896,400
773,799 128,196
773,799 128,196
$ 36,603,226
(31,022,082)
(3,494,342)
2,086,802
901,995
901,995
(225,803) (225,803)
(225,803) (225,803)
8,455 534,071 18,964
8,455 534,071 18,964
(33,098) 2,539,825 817,757
561,490
561,490
Net increase (decrease) in cash and investments 3,324,484
Cash and investments at beginning of year 31,821,357
Cash and investments at end of year $ 35,145,841
Classified as:
Current assets $ 483,734 $ 33,214,427 $ 1,447,680 $ 35,145,841
516,832 30,674,602 629,923
$ 483,734 $ 33,214,427 $ 1,447,680
170
Indian River County, Florida
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended September 30, 2020
RECONCILIATION OF OPERATING
INCOME (LOSS) TO NET CASH
PROVIDED BY OPERATING ACTIVITIES
Operating income (loss)
Adjustments to reconcile operating income (loss) to
net cash provided by operating activities:
Fleet Self Information
Management Insurance Technology Totals
$ (117,195) $ 838,809 $ 277,208 $ 998,822
Depreciation 9,909 236 387,760 397,905
(Increase) decrease in assets:
Accounts receivable 32,921 676,850 457 710,228
Due from other governments 43,498 411,801 (1) 455,298
Inventories 19,384 - 19,384
Deposits - (328,456) (38,968) (367,424)
Increase (decrease) in liabilities:
Accounts payable (77,596) (86,157) 131,850 (31,903)
Claims payable (310,000) (310,000)
Net pension liability 80,951 53,968 228,322 363,241
Deferred inflows related to pension (16,211) (10,808) (45,722) (72,741)
Deferred outflows related to pension (15,659) (10,440) (44,166) (70,265)
Net OPEB liability (4,602) (1,841) (10,783) (17,226)
Deferred inflows related to OPEB 3,702 1,481 8,675 13,858
Deferred outflows related to OPEB (7,186) (2,874) (16,835) (26,895)
Accrued compensated absences 6,531 (614) 18,603 24,520
Total adjustments
75,642 393,146 619,192 1,087,980
Net cash provided by (used in) operating activities $ (41,553) $ 1,231,955 $ 896,400 $ 2,086,802
NONCASH CAPITAL AND RELATED
FINANCING ACTIVITIES
Change in fair value of investments $ 71 $ 10,549 $ (192) $ 10,428
Capital grants and contributions $ - $ - $ 173,672 $ 173,672
Capital assets purchased through accounts payable $ - $ - $ 172,903 $ 172,903
171
172
FIDUCIARY FUND
Agency Fund- To account for the assets held solely in a
custodial capacity by the County.
173
Indian River County, Florida
Combining Statement of Changes in Assets and Liabilities
Agency Fund
For the Fiscal Year Ended September 30, 2020
ASSETS
Cash and investments
Total assets
Balance Balance
October 1, September 30,
2019 Additions Deductions 2020
$ 11,645,168 $ 500,787,182 $ 501,309,328 $ 11,123,022
$ 11,645,168 $ 500,787,182 $ 501,309,328 $ 11,123,022
LIABILITIES
Due to other governments $ 5,902,614 $ 506,701,577 $ 506,121,231 $ 6,482,960
Other deposits held in escrow 5,742,554 34,858,803 35,961,295 4,640,062
Total liabilities $ 11,645,168 $ 541,560,380 $ 542,082,526 $ 11,123,022
174
Statistical Section
This part of the Indian River County Comprehensive Annual Financial Report presents detailed information as a
context for understanding what the information in the financial statements, note disclosures and required
supplementary information says about the County's overall financial health.
Contents Page(s)
Financial Trends (Schedules 1 - 5)
These schedules contain trend information to help the reader understand how
the County's financial performance and welt -being have changed over time.
Revenue Capacity (Schedules 6 - 9)
These schedules contain information to help the reader assess the County's most
significant local revenue source, the property tax.
Debt Capacity (Schedules 10 - 14)
These schedules present information to help the reader assess the affordability
of the County's current levels of outstanding debt and the County's ability
to issue additional debt in the future.
Demographic and Economic Information (Schedules 15 - 16)
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the County's financial activities take
place.
Operating Information (Schedules 17 - 20)
These schedules contain service and infrastructure data to help the reader
understand how the information in the County's financial report relates to the
services the County provides and the activities it performs.
Additional Bond Disclosures (Schedules 21 - 25)
These schedules provide information for required continuing disclosure for the
water and sewer revenue refunding note and the spring training
facility revenue bonds.
176-186
187-191
192-199
200-201
202-213
214-219
Sources:
Unless otherwise noted, the information in these schedules is derived from the comprehensive annual
financial report for the relevant year.
175
Indian River County, Florida
Net Position by Component (Unaudited)
Last Ten Fiscal Years
(accrual basis of accounting)
Governmental activities
Net investment in capital assets
Restricted
Unrestricted (Deficit)
Total governmental activities net position
Business -type activities
Net investment in capital assets
Restricted
Unrestricted
Total business -type activities net position
Primary government
Net investment in capital assets
Restricted
Unrestricted
Total primary government net position
2011 2012
2013
$ 492,300,301 $ 509,076,923 $
125,452,516 121,189,228
84,860,897 76,523,757
2014
518,255,719 $
117,321,755
71,830,421
$ 702,613,714 $ 706,789,908 $
514,764,316
116,203,827
72,873,567
707,407,895 $ 703,841,710
$ 217,876,742 $ 211,631,529 $
24,230,101 17,941,773
61,041,483 70,286,599
210,772,860 $
20,871,037
68,686,611
$ 303,148,326 $ 299,859,901 $
211,660,190
- (A)
88,420,541
300,330,508 $ 300,080,731
$ 710,177,043 $ 720,708,452 $
149,682,617 139,131,001
145,902,380 146,810,356
729,028,579
138,192,792
140,517,032
$ 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.
176
$ 726,424,506
116,203,827
161,294,108
$ 1,003,922,441
Schedule 1
2015 2016
$ 520,214,002 $
128,580,087
7,158,887
2017
533,304,941 $
132,069,178
665,374,119
2018
542,933,904 $
150,132,598
(1,350,721)
$ 655,952,976 $ 1,330,748,238 $
$
553,586,726
159,375,667
(21,032,366)
691,715,781 $ 691,930,027
213,114,279 $ 206,497,575 $
91,057,348
100,336,692
$ 304,171,627 $
201,774,405 $
107,047,824
2019
2020
$ 569,410,018 $
171,911,419
(34,540,764)
592,232,052
181,876,656
(35,583,743)
$ 706,780,673 $
738,524,965
197,842,084 $ 212,240,133 $
113,467,530
306,834,267 $ 308,822,229 $
$ 733,328,281 $
128,580,087
98,216,235
739,802,516 $
132,069,178
106,321,872
$ 960,124,603 $
744,708,309
150,132,598
105,697,103
978,193,566 $ 1,000,538,010
106,508,242
221,342,196
99,207,097
311,309,614 $ 318,748,375 $
$ 751,428,810
159,375,667
92,435,164
$ 1,003,239,641
177
$ 781,650,151
171,911,419
71,967,478
$ 1,025,529,048
320,549,293
$ 813,574,248
181,876,656
63,623,354
$ 1,059,074,258
Indian River County, Florida
Changes in Net Position (Unaudited)
Last Ten Fiscal Years
(accrual basis of accounting)
Expenses
Governmental activities:
General government
Public safety
Physical environment
Transportation
Economic environment
Human service
Cultural/recreation
Court related
Interest on long-term debt
Total governmental activities expenses
Business -type activities:
Water and sewer
Solid waste
Golf course
Building
Total business -type activities expenses
Total primary government expenses
Program Revenues
Governmental activities:
Charges for services:
General government
Public safety
Physical environment
Transportation
Human service
Cultural/recreation
Court related
Operating grants and contributions
Capital grants and contributions
Total governmental activities program revenues
Business -type activities:
Charges for services:
Water and sewer
Solid waste
Golf course
Building
Operating grants and contributions
Capital grants and contributions
Total business -type activities program revenues
Total primary government program revenues
Notes:
2011
$ 21,324,680
67,393,943
1,353,074
22,300,819
2,056,453
7,762,962
16,484,242
5,774,032
2,526,114
146,976,319
33,818,640
10,370,476
2,537,665
1,623,862
2012
19,069,181
66,456,674
2,424,109
23,629,799
1,986,091
7,749,253
18,089,432
5,635,245
2,350,241
147,390,025
2013
$
20,637,750
66,178,467
1,858,307
26,286,998
2,550,157
6,818,023
19,369,326
5,835,184
2,087,204
151,621,416
34,246,967 33,815,749
10,659,004 10,405,143
2,451,603 2,537,525
1,487,515 1,547,815
2014
$ 22,968,835
66,954,956
1,031,710
23,577,720
1,084,204
7,136,042
16,610,269
6,360,814
1,944,229
147,668,779
35,821,287
10,801,408
2,588,424
1,833,528
48,350,643 48,845,089 48,306,232 51,044,647
$ 195,326,962 $
$ 5,845,567
6,076,085
24,204
2,090,194
346,689
1,340,550
501,980
7,926,832
1,937,488
26,089,589
27,842,092
9,221,396
3,163,062
1,588,934
1,923,271
43,738,755
196,235,114 $ 199,927,648 $ 198,713,426
$ 5,304,385 $ 5,482,814 $ 5,895,424
5,852,093 6,625,924 8,025,849
20,923 5,900 20,970
2,345,186 2,768,107 3,365,961
358,279 213,485 211,294
1,397,660 1,765,912 1,883,347
414,356 1,301,135 3,592,298
8,230,411 26,921,514 (A) 22,229,254
7,053,494 6,681,421 7,521,538
30,976,787 51,766,212 52,745,935
28,361,246
9,582,955
3,216,471
1,735,713
2,545,759
45,442,144
28,522,667
9,998,410
3,072,332
2,018,104
4,700,473
48,311,986
29,565,901
10,272,415
3,080,960
2,417,724
5,032,042
50,369,042
$ 69,828,344 $ 76,418,931 $ 100,078,198 $ 103,114,977
(A) State Shared Revenues reclassified to operating grants and contributions.
178
Schedule 2
2015 2016 2017 2018 2019 2020
$ 24,732,636 $ 27,472,414 $ 25,936,632 $ 28,331,287 $ 31,389,285 $ 32,530,843
66,364,113 77,587,638 83,312,452 85,963,087 100,559,725 110,273,562
1,636,749 1,457,248 2,312,036 1,610,264 1,929,479 4,689,444
25,992,461 28,221,515 28,844,114 34,860,409 31,169,505 29,192,110
421,057 427,227 439,460 422,142 471,588 731,507
7,352,777 7,790,430 8,030,927 9,346,942 9,647,749 11,647,461
17,011,188 14,713,304 16,000,837 15,399,398 17,877,861 16,485,742
6,677,054 7,077,295 7,241,707 7,038,280 7,906,671 7,286,197
1,013,527 938,123 763,636 668,269 460,704 496,647
151,201,562 165,685,194
172,881,801 183,640,078
201,412,567 213,333,513
35,223,882 35,420,291 38,609,232 38,257,678 45,076,191 42,817,472
11,708,383 12,714,713 14,542,100 15,756,764 14,731,205 15,828,035
2,498,397 2,605,612 2,693,389 2,785,664 2,870,275 2,814,165
7,085,190 2,724,650 3,504,086 3,908,938 4,675,422 5,029,336
56,515,852 53,465,266
59,348,807 60,709,044
207,717,414 $ 219,150,460 $ 232,230,608 $ 244,349,122
67,353,093 66,489,008
268,765,660 $ 279,822,521
$ 6,641,363 $ 7,192,821 $ 6,436,467 $ 7,029,378 $ 8,022,184 $ 8,216,420
6,457,584 8,244,224 8,557,148 8,389,034 8,425,164 8,668,917
9,153 9,650 9,192 9,350 2,150
4,273,591 4,508,637 4,139,569 5,098,549 5,357,114 7,268,659
277,279 165,041 201,484 458,452 151,861 314,202
1,941,993 2,405,951 2,723,416 3,136,349 3,224,903 2,106,421
3,308,235 2,394,385 3,214,658 3,225,394 3,658,067 2,816,548
24,872,734 24,587,446 32,161,715 28,765,842 29,402,984 48,590,589
11,671,085 5,969,099 6,820,530 7,158,737 4,168,347 8,352,887
59,443,864 55,476,757
64,264,637 63,270,927
62,419,974 86,336,793
30,089,101 31,089,758 32,020,230 32,834,696 34,050,737 34,484,220
11,455,302 13,345,745 13,784,379 14,769,028 15,837,635 16,636,375
3,235,879 3,230,630 3,219,311 3,216,513 3,306,251 3,234,590
2,958,488 3,406,022 3,742,659 4,673,531 3,555,314 3,556,867
1,523,631 1,465,891 8,336 243,189
8,616,416 5,035,914 6,108,117 6,737,992 13,990,806 8,029,748
56,355,186 56,108,069
$
60,398,327 63,697,651
70,749,079 66,184,989
115,799,050 $ 111,584,826 $ 124,662,964 $ 126,968,578 $ 133,169,053 $ 152,521,782
Continued
Indian River County, Florida
Changes in Net Position (Unaudited)
Last Ten Fiscal Years
(accrual basis of accounting)
Net (Expense)/Revenue
Governmental activities
Business -type activities
Total primary government net expenses
2011 2012 2013 2014
$ (120,886,730) $ (116,413,238) $ (99,855,204) $ (94,922,844)
(4,611,888) (3,402,945) 5,754 (675,605)
$ (125,498,618) $ (119,816,183) $ (99,849,450) $ (95,598,449)
General Revenues and Other Changes in Net Position
Governmental activities:
Property taxes, levied for general purposes $ 69,856,750 $ 64,753,566 $ 62,305,177 $ 67,985,321
Property taxes, levied for debt service 5,600,767 5,574,183 4,664,885 4,730,556
Sales and use taxes 19,261,033 20,144,820 21,035,360 21,860,958
Franchise fees 8,730,861 8,620,401 8,818,952 9,310,711
State shared revenues 17,328,867 17,908,806 (C) -
Interest earnings 1,299,894 668,012 637,099 542,542
Miscellaneous 3,082,481 3,079,701 2,903,771 2,459,033
Transfers (643,144) (32,957) (44,000)
Total governmental activities
124,517,509 120,716,532
Business -type activities:
Interest earnings 723,870 600,116
Miscellaneous 562,651 (B) 8,400
Transfers 643,144 32,957
Total business -type activities 1,929,665 641,473
Total primary government
100,365,244 106,845,121
427,041
37,812
381,497
331
44,000
464,853 425,828
$ 126,447,174 $ 121,358,005 $ 100,830,097 $ 107,270,949
Change in Net Position
Governmental activities $ 3,630,779 $ 4,303,294 $ 510,040 $ 11,922,277
Business -type activities (2,682,223) (2,761,472) 470,607 (249,777)
Total primary government change in net position
$ 948,556 $ 1,541,822 $ 980,647 $ 11,672,500
Notes:
(B) Gain on sale of capital assets due to the privatization of the County landfill.
(C) State Shared Revenues reclassified to operating grants and contributions.
180
Schedule 2
2015 2016 2017 2018 2019 2020
$ (91,757,698) $ (110,208,437) $ (108,617,164) $ (120,369,151) $ (138,992,593) $ (126,996,720)
4,839,334 2,642,803 1,049,520 2,988,607 3,395,986 (304,019)
(86,918,364) $ (107,565,634)
(107,567,644) $ (117,380,544) $ (135,596,607) $ (127,300,739)
71,825,109 $ 80,100,810 $ 85,572,692 $ 94,003,409 $ 100,483,536 $ 109,831,793
4,795,927 4,594,381 4,619,804 4,636,034 4,744,345 4,608,719
23,549,042 24,387,340 25,564,904 27,083,593 27,458,882 26,552,956
9,180,652 9,273,567 9,130,133 9,447,649 9,124,073 9,005,020
1,051,822 1,333,048 1,474,698 2,768,691 8,494,530 5,104,542
1,799,538 5,141,162 2,694,082 2,906,764 3,728,033 3,745,498
(3,057,421) 784,452 (82,667) (85,616) (190,160) (107,516)
109,144,669 125,614,760
128,973,646 140,760,524
153,843,239 158,741,012
625,525 791,683 818,490 1,302,025 3,813,252 1,991,158
56,887 12,606 37,285 29,650 39,363 6,263
3,057,421 (784,452) 82,667 85,616 190,160 107,516
3,739,833 19,837 938,442 1,417,291 4,042,775 2,104,937
$
112,884,502 $ 125,634,597 $ 129,912,088 $ 142,177,815
$
157,886,014 $ 160,845,949
17,386,971 $ 15,406,323 $ 20,356,482 $ 20,391,373 $ 14,850,646 $ 31,744,292
8,579,167 2,662,640 1,987,962 4,405,898 7,438,761 1,800,918
$ 25,966,138 $ 18,068,963 $ 22,344,444 $ 24,797,271 $ 22,289,407 $ 33,545,210
181
Indian River County, Florida
Fund Balances, Governmental Funds (Unaudited)
Last Ten Fiscal Years
(modified accrual basis of accounting)
General Fund
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total general fund
All other governmental funds
Nonspendable
Restricted
Committed
Assigned
Unassigned deficit
Total all other governmental funds
Total governmental funds
2011 2012
$ 363,619
50,015
21,041,045
1,660,000
33,694,612
$ 56,809,291
$ 814,858
125,082,370
4,661,146
10,013,457
(354,995)
$ 140,216,836
$ 197,026,127
311,241
1,120,087
2,374,790 (A)
1,808,000
48,722,929 (A)
$ 54,337,047
$ 557,128
116,379,943
1,483,393
11,288,602
(202,971)
$ 129,506,095
$ 183,843,142
2013
$ 1,224,835
1,000,000
2,370,079
900,000
44,385,674
2014
$ 1,134,846
1,000,000
1,223,183
(B)
48,320,836
$ 49,880,588 $ 51,678,865
$ 50,788 $ 39,337
112,523,743 112,266,321
1,481,312 1,492,929
8,964,238 8,139,695
(339,223) (201,587)
$
122,680,858
$
121,736,695
$ 172,561,446 $ 173,415,560
Notes:
(A) Reclassified emergency/disaster and budget stabilization reserves from Committed to Unassigned fund
balance categories.
(B) Budget appropriation of fund balance to balance budget no longer necessary.
182
Schedule 3
2015 2016
$ 459,546
1,000,000
1,092,575
47, 727,109
2017
$ 371,121 $ 1,183,875
1,000,000 1,246,278
1,166,830 1,655,789
45,909,787
43,334,507
$ 50,279,230 $ 48,447,738 $ 47,420,449
$ 69,907
120,531,318
1,504,391
7,139,358
(439,479)
$
128,805,495
$
179,084,725
$ 121,906
127,285,732
1,401,530
7,118,688
$ 135,927,856
$ 184,375,594
$ 217,550
133,714,625
1,515,217
7,400,390
(290,542)
$ 142,557,240
$ 189,977,689
183
2018
$ 976,972
1,139,811
1,627,628
47,904,588
$ 51,648,999
$ 199,134
153,053,248
1,610,299
7,620,206
(2,400)
$ 162,480,487
2019
2020
$ 614,277 $
1,001,230
1,310,621
52,768,642
$ 55,694,770
777,974
815,990
1,214,785
56,299,820
$
59,108,569
$ 145,165 $
166,534,476
1,478,993
8,666,836
(160,530)
219,292
169,805,890
1,119,342
9,470,790
(317,815)
$ 176,664,940 $ 180,297,499
$ 214,129,486 $ 232,359,710 $ 239,406,068
Indian River County, Florida
Changes in Fund Balances, Governmental Funds (Unaudited)
Last Ten Fiscal Years
(modified accrual basis of accounting)
Revenues
Taxes
Permits, fees, and special assessments
Intergovernmental
Charges for services
Judgments, fines and forfeits
Interest
Miscellaneous
Total Revenues
Expenditures
Current:
General government
Public safety
Physical environment
Transportation
Economic environment
Human service
Culture/recreation
Court related
Debt service:
Principal
Interest and fiscal charges
Capital projects
Total Expenditures
Excess of revenues over
(under) expenditures
Other Financing Sources (Uses)
Issuance of refunding notes
Lease purchase proceeds
Insurance recoveries
Transfers out
Payments to refunded bond escrow agent
Transfers in
2011 2012 2013
94,718,550
11,189,393
37,687,574
15,030,329
936,995
1,173,103
2,383,493
163,119,437
19,271,196
70,432,615
1,371,734
28,432,207
2,099,698
7,625,369
14,706,194
5,983,085
4,270,000
2,562,374
5,825,287
162,579,759
$ 90,472,569
11,486,235
29,759,832
14,760,125
739,275
613,023
5,237,426
153,068,485
20,477, 898
67,761,985
1,751,623
29,058,310
2,021,184
6,888,883
13,808,303
5,860,925
8,060,000 (A)
2,426,083
8,108, 370
166,223,564
539,678 (13,155,079)
(8,918,267)
8,862,969
(11,622,984)
11,595,078
Total other financing sources (uses) (55,298) (27,906)
Net change in fund balances $ 484,380 $ (13,182,985)
Debt service as a percentage of
noncapital expenditures 5.0% 7.6%
$ 88,005,422
12,769,844
30,086,479
15,887,241
778,575
570,559
3,841,294
151,939,414
19,056,322
66,908,328
771,942
28,223,229
2,581,401
6,952,460
11,538,809
6,054,822
6,050,000 (B)
2,118,704
13,037,552
163,293,569
(11,354,155)
(12, 540,187)
12,504,699
2014
$ 94,585,345
14,321,389
30,563,650
18,076,888
1,004,374
463,274
3,221,548
162,236,468
20,681,570
67,799,667
781,306
23,321,248
1,106,886
7,178,542
11,627,286
6,487,906
3,700,000
1,984,616
16,560,991
161,230,018
1,006,450
(10,244,980)
10,092,644
(35,488) (152,336)
$ (11,389,643) $ 854,114
(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.
184
6.0%
4.3%
Schedule 4
2015 2016
$ 100,170,078 $ 109,082,531
15,567,731 16,530,179
32,065,821 33,535,027
18,558,182 15,532,928
897,860 1,672,773
894,705 1,133,215
2,470,553 8,158,393
170,624,930
22,957,111
71,703,248
1,055,021
27,945,569
436,320
7,519,756
15,719,709
6,677,909
4,180,000
1,266,070
5,309,597 (D)
164,770,310
5,854,620
20,369,000 (C)
185,645,046
22,693,234
77, 316, 218
788,803
27,505,659
424,593
7,868,392
13,562,765
6,605,682
4,383,000
832,007
13,329,391
175,309,744
10,335,302
(11,354,519) (17,375,606)
(20,340,959) (C) -
11,141,023 12,331,173
(185,455)
$ 5,669,165
2017 2018 2019 2020
$
115,757,400
15,900,775
30,031,350
16,006,929
1,620,964
1,287,415
6,392,927
186,997,760
24,681,861
83,397,539
1,300,862
26,562,596
437,031
8,116,910
12,013,338
6,755,050
4,573,000
657,520
12,777,795
181,273,502
5,724,258
(14,453,902)
14,331,739
(5,044,433) (122,163)
$
125,723,036
17,825,047
36,535,393
17,133,195
1,697,085
2,273,375
5,891,296
207,078,427
25,016,607
85,158,140
1,131,396
26,900,384
426,085
9,302,125
12,089,937
6,540,045
4,708,000
562,153
17, 978, 862
189,813,734
17,264,693
7,014,087
(13,274,738)
13,147,755
6,887,104
$ 5,290,869 $ 5,602,095 $
3.8% 3.6%
$
132,686,763
18,092,708
31,956,921
17,919,081
2,148,209
7,575,639
5,986,962
216,366,283
$
140,993,468
17,959,288
33,738,425
17,375,509
1,398,028
4,718,014
8,436,416
224,619,148
24,925,629 27,589,352
89,020,678 95,448,236
1,353,623 1,719,293
30,379,114 26,635,184
469,565 720,010
9,484,542 11,452,394
15,583,672 21,671,840
7,241,534 6,536,101
5,738,632 7,561,314
442,999 326,053
13, 393,105 17, 302, 374
198,033,093 216,962,151
18,333,190 7,656,997
20,855
109,671
(16,552,188)
16, 318, 696
398,872
(18,779,742)
17,770,231
(102,966) (610,639)
24,151,797 $
18,230,224 $ 7,046,358
3.4% 3.2% 3.7% 4.4%
185
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 Et Use Tourist Gasoline Other Total
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
2020 114,440,512 18,984,618 2,714,264 3,598,127 1,255,947 140,993,468
(A) The County 's primary source of revenue is property taxes, amounting to 81 percent of Governmental Funds
tax revenues in 2020. Consequently, supplemental required schedules are provided only for property tax
revenues.
186
Indian River County, Florida
Assessed Value and Actual Value of Taxable Property (Unaudited)
Last Ten Fiscal Years
Schedule 6
Fiscal
Year
Real
Property
Actual Value
Personal
Property
Actual Value
2011 $ 18,741,543,869 $
2012
2013
2014
2015
2016
2017
2018
2019
2020
17,291,910,945
16,563,604,291
16,832,196,339
17,855,660,837
19,941,465,452
23,725,954,463
25,295,251,822
26,921,744,684
27,867,246,400
Total
Actual Value
711,180,228 $
644,205,795
635,119,066
697,294,522
696,658,855
698,630,083
675,815,085
634,654,180
737,895,129
802,782,805
19,452,724,097
17,936,116,740
17,198,723,357
17,529,490,861
18,552,319,692
20,640,095,535
24,401,769,548
25,929,906,002
27,659,639,813
28,670,029,205
Less:
Tax -Exempt
Property
Total Taxable
Assessed
Value
Total
Direct
Tax Rate
$ 5,313,689,267 $ 14,139,034,830 4.1625
4,731,112,173 13,205,004,567 4.1625
4,497,471,382 12,701,251,975 4.1625
4,670,052,667 12,859,438,194 4.3353
5,150,260,231 13,402,059,461 4.4108
6,338,690,254 14,301,405,281 4.4335
8,125,447,769 16,276,321,779 4.4335
8,547,972,646 17,381,933,356 4.5337
9,079,222,273 18,580,417,540 4.5337
9,092,020,308 19,578,008,897 4.6981
Source: Indian River County Property Appraiser; values are established as of January 1 of the previous
calendar year, i.e., January 1, 2019 taxable values apply to the fiscal year ending September 30, 2020.
The actual value is based upon market values in the area. Property is assessed at the actual values less
various exemptions for homestead, age, disability, widows, religious, charitable, educational and
governmental situations.
Total taxable values are also presented on Schedules 8 and 11.
187
Indian River County, Florida
Property Tax Rates
Direct and Overlapping Tax Rates (Unaudited)
Last Ten Fiscal Years
County direct rate
General fund
Municipal service
Total direct rate (A)
County -wide district school board rate
Other County -wide rates
Emergency Management Services District
Land acquisition bond
Total other County -wide rates
Total County -wide rate (B)
2011 2012 2013 2014
3.0892 3.0892 3.0892 3.2620
1.0733 1.0733 1.0733 1.0733
4.1625 4.1625 4.1625 4.3353
8.2500 8.2440 8.3130 8.1160
1.7148 1.7148 1.7148 1.9799
0.4087 0.4364 0.3799 0.3788
2.1235 2.1512 2.0947 2.3587
14.5360 14.5577 14.5702 14.8100
City rates
Fellsmere 4.4300 5.2455 5.4999 5.6190
Indian River Shores 1.4105 1.4731 1.4731 1.4731
Sebastian 3.3041 3.3041 3.7166 3.7166
Orchid 0.4550 0.4550 0.5000 0.4864
Vero Beach 1.9367 2.0336 2.0336 2.0336
Average of cities rates 2.3073 2.5023 2.6446 2.6657
Other special district rates
1.7663 1.6856 1.6859 1.7128
(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
188
Schedule 7
2015 2016 2017 2018 2019 2020
3.3375 3.3602 3.3602 3.4604 3.4604 3.5475
1.0733 1.0733 1.0733 1.0733 1.0733 1.1506
4.4108 4.4335 4.4335 4.5337 4.5337 4.6981
7.9950 7.9550 7.4100 7.0530 6.7930 6.5690
1.9799 2.2551 2.3010 2.3655 2.3655 2.3655
0.3694 0.3315 0.3143 0.2955 0.2827 0.2568
2.3493 2.5866 2.6153 2.6610 2.6482 2.6223
14.7551 14.9751 14.4588 14.2477 13.9749 13.8894
5.5309 5.2756 4.9599 4.9599 5.3662 5.2210
1.6786 1.6786 1.7186 1.3774 1.2890 1.3349
3.8556 3.8556 3.8556 3.4000 3.1514 2.9399
0.5500 0.7000 1.2500 2.3000 1.4000 1.6000
2.0336 2.3800 2.3800 2.5194 2.5194 2.5000
2.7297 2.7780 2.8328 2.9113 2.7452 2.7192
1.7124 1.6993 1.5170 1.5390 1.5396 1.4091
189
Indian River County, Florida
Principal Property Taxpayers (Unaudited)
Year 2020 and Year 2011
Schedule 8
Taxpayer
Florida Power 8 Light
Disney Vacation Dev. Inc.
Johns Island Club, Inc.
Windsor Properties
Adult Community Total Services, Inc.
Wel[tower TCG Ridea Landlord, LLC
Betlsouth Telecommunications
MPT of Sebastian -Steward, LLC
TSO Vero Beach, LP
DSTS, LLC
Indian River Mall Association
Fellsmere Joint Venture
CVS Vero FL Distribution, LLC
Total Principal Property Taxpayers
Real Property Assessed Valuation
Total County Taxable Valuation
(from schedule 6)
2020
Real
Property
Assessed
Valuation
$ 322,689,816
76,331,184
43,816,262
42,402,417
30,521,361
28,766,676
24,475,001
22,969,142
22,871,107
21,739,106
$ 636,582,072
$ 19,578,008,897
Percentages
of Total
Assessed
Rank Valuation
1 1.65%
2 0.39
3 0.22
4 0.22
5 0.16
6 0.15
7 0.13
8 0.12
9 0.12
10 0.11
2011
Real
Property
Assessed
Valuation
$ 91,400,547
72,961,084
40,527,089
31,266,657
36,637,750
42,197,328
30,009,649
38,298,008
25,909,620
21,769,006
3.27% $ 430,976,738
Source: Indian River County Property Appraiser
Indian River County, Florida annual budgets
190
$ 14,139,034,830
Percentages
of Total
Assessed
Rank Valuation
1
2
4
7
6
3
8
5
9
10
0.65%
0.52
0.29
0.22
0.26
0.30
0.21
0.27
0.18
0.15
3.05%
Indian River County, Florida
Property Tax Levies And Collections (Unaudited)
Last Ten Fiscal Years
Schedule 9
Year
Total
Tax
Levy
Current
Tax
Collections
2011 $ 77,790,733 $ 75,215,452
2012 72,668,518 70,200,922
2013 69,251,173 66,838,348
2014 75,101,883 72,572,593
2015 79, 309,078 76, 537,192
2016 87,611,062 84,648,230
2017 93,167,061 90,100,287
2018 102,322,230 98,568,670
2019 108,994,936 105,148,685
2020 118,478,616 114,292,023
Percent of
Current Tax
Collections
To Tax Levy
96.69%
96.60
96.52
96.63
96.50
96.62
96.71
96.33
96.47
96.47
Delinquent
Tax
Collections (1)
$ 290,472
133,385
111,341
149,546
91,754
60,147
78,624
40,811
26,255
108,270
Total
Tax
Collections
$ 75,505,924
70,334,307
66,949,689
72,722,139
76,628,946
84,708,377
90,178,911
98,609,481
105,174,940
114,400,293
Percent of
Total Tax
Collections
To Tax Levy
97.06%
96.79
96.68
96.83
96.62
96.69
96.79
96.37
96.50
96.56
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 alt 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 $40,219.
191
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 Water &t Sewer
Year Bonds (A) Leases 2001 Series Bonds (B) Bonds (C)
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)
2020 12,572 3,865,000 2,132,000
(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 and subsequently paid off in 2020. 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 &t 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 &t 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.
192
Schedule 10
Percentage
Total of Total Debt Debt
Primary to Personal Per
Government Income (E) Capita (E)
$ 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 0.30 237
14, 612, 447 0.11 94
6,009,134 (D) 38
193
Indian River County, Florida
Ratio of Net General Bonded Debt Outstanding to Taxable Value and Net Bonded Debt per Capita (Unaudited)
Last Ten Fiscal Years Schedule 11
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
2011 138,694 $ 14,139,034,830 $ 40,723,939 $ 1,743,781 $ 38,980,158 0.0028 $ 281
2012 139,446 13,205,004,567 33,200,714 1,002,540 32,198,174 0.0024 231
2013 139,586 12,701,251,975 29,987,489 828,029 29,159,460 0.0023 209
2014 140,955 12,859,438,194 26,639,265 832,464 25,806,801 0.0020 183
2015 143,326 13,402,059,461 23,594,000 967,599 22,626,401 0.0017 158
2016 146,410 14,301,405,281 19,706,000 1,114,234 18,591,766 0.0013 127
2017 148,962 16,276,321,779 15,653,000 1,269,367 14,383,633 0.0009 97
2018 151,825 17,381,933,356 11,495,000 1,406,600 10,088,400 0.0006 66
2019 154,939 18,580,417,540 7,268,000 1,734,275 5,533,725 0.0003 36
2020 158,834 19,578,008,897 - - - - -
(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 and subsequently paid off in 2020.
Gross G.O.B. debt is also presented on Schedules 10 and 13.
Total taxable assessed values also appear on Schedules 6 and 8.
Source of population data is obtained from the University of Florida, Bureau of Economic and Business
Research.
194
Indian River County, Florida
Computation of Legal Debt Margin (Unaudited)
September 30, 2020
Schedule 12
Computation of the Legal Debt Margin is omitted because the Constitution of the State of
Florida (F.S. 200.181) and Indian River County set no legal debt limit.
195
Indian River County, Florida
Direct and Overlapping Governmental Activities Debt (Unaudited)
September 30, 2020
Schedule 13
Governmental Unit
Revenue Bonds - Spring Training Facility - Series 2001
Share of
Debt Percentage Overlapping
Outstanding Applicable Debt
$ 3,865,000 100% $ 3,865,000
Total direct debt of County 3,865,000
Other debt:
Indian River County School District Certificates of Participation
Total overlapping debt
Total direct and overlapping debt
(A) Indian River County School District, as of June 30, 2020
$
90,389,593 (A) 100%
90,389,593
90,389,593
$ 94,254,593
Source: Information on outstanding debt provided by the Indian River County School District Finance
Department.
Note: Overlapping debt is borne by all property owners within the County boundaries.
196
197
Indian River County, Florida
Pledged Revenue Coverage (Unaudited)
Water and Sewer Revenue Bonds
(Series 1993A, 1996, 2005, 2009)
Last Ten Fiscal Years
2011 2012 2013 2014
Uniform Charges
Water sales $ 13,565,766 $ 13,621,878 $ 13,667,115 $ 14,059,231
Wastewater sales 12,203,750 12,515,394 12,546,429 12,879,006
Other 1,639,985 1,727,411 1,763,426 2,025,378
Total uniform charges 27,409,501 27,864,683 27,976,970 28,963,615
Septage/Sludge 314,969 373,616 426,634 478,555
Surcharges 245,245 246,298 246,363 242,073
Interest earnings 491,260 315,377 239,270 258,741
1989/1990 Special assessments 8,718 - -
1996 Special assessments 93,513 75,037 69,757 22,091
Gross revenues 28,563,206 28,875,011 28,958,994 29,965,075
Less: Direct expenses 15,404,503 15,657,085 15,217,294 16,040,433
Net revenues available
for debt service $ 13,158,703 $ 13,217,926 $ 13,741,700 $ 13,924,642
Annual debt service
Principal
Interest
Total debt service payment
Debt service coverage
$
2,990,000 $ 3,090,000 $ 3,205,000 $ 3,350,000
2,324,525 2,193,450 2,080,951 1,937,450
$
5,314,525 $ 5,283,450 $ 5,285,951 $ 5,287,450
2.48x 2.50x
2.60x 2.63x
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.
198
Schedule 14
2015 2016 2017 2018 2019 2020
$ 14,345,074 $ 14,829,381 $ 15,325,231 $ 15,350,614 $ 16,554,964 $ 17,039,639
13,116,393 13,498,090 13,777,255 13,980,424 14,234,084 14,587,722
2,005,106 2,068,865 2,262,801 2,793,060 2,591,943 2,142,353
29,466,573
483,828
98,163
294,303
30,396,336
531,432
363,597
30,872 31,915
30,373,739 31,323,280
16,129, 860 18, 064, 619
31,365,287 32,124,098
521,882 507,233
375,208 624,790
22,440 9,008
32,284,817 33,265,129
18,590,922 18,754,402
33,380,991 33,769,714
503,408 554,939
1,903,024 1,005,978
6,917 13,876
35,794,340 35,344,507
26,072,580 22,237,955
$ 14,243,879 $ 13,258,661 $ 13,693,895 $ 14,510,727 $ 9,721,760 $ 13,106,552
$ 3,485,000 $ 2,878,000 $ 2,992,000 $ 3,107,000 $ 3,230,000 $ 1,042,000
1,827,867 1,095,886 983,267 866,899 745,284 52,371
$ 5,312,867 $ 3,973,886 $ 3,975,267 $ 3,973,899 $ 3,975,284 $ 1,094,371
2.68x 3.34x
3.44x 3.65x
199
2.45x 11.98x
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)
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 12,924,659,000 80,818 3.7
2020 158,834 (D) (D) 5.9
Sources:
(A) University of Florida, Bureau of Economic and Business Research
(B) US Department of Commerce, Bureau of Economic Analysis
(C) Florida Agency for Workforce Innovation
(D) Information not available
The population and personal income information is used in Schedule 10 for calculation of
Debt Per Capita and Percentage of Debt to Personal Income.
200
Indian River County, Florida
Principal Employers (Unaudited)
Year 2020 and Year 2011
Schedule 16
Employer
2020
Percentage
Number of of Total County
Employees Employment
Cleveland Clinic Indian River Hospital ** 2,112 3.53%
School District of Indian River County 2,039 3.41
Indian River County* 1,654 2.77
Publix Supermarkets 1,380 2.31
Piper Aircraft Inc. 980 1.64
Wal-Mart 806 1.35
Sebastian River Medical Center 750 1.26
Visiting Nurse Association 500 0.84
John's Island 495 0.83
Indian River Estates 486 0.81
Total 11,202 18.75%
Total County Employees 59,759
Employer
2011
Percentage
Number of of Total County
Employees Employment
School District of Indian River County 2,013 3.85%
Indian River Medical Center ** 1,608 3.07
Indian River County * 1,354 2.59
Publix Supermarkets 1,006 1.92
Piper Aircraft Inc. 700 1.34
Sebastian River Medical Center 569 1.09
John's Island 550 1.05
City of Vero Beach 492 0.94
Visiting Nurse Association 399 0.76
Indian River Estates 350 0.67
Total 9,041 17.28%
Total County Employees 52,318
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
201
Indian River County, Florida
Building Permits (Unaudited)
Last Ten Fiscal Years
Indian River County Municipalities
Fiscal # of New # of Additions Et # of New
Year Permits Construction Permits Alterations Permits Construction
2011 416 $ 96,301,948 2,288 $ 26,368,020 112 $ 27,812,429
2012 421 95,703,031 2,591 25,060,272 150 37,380,374
2013 562 159,419,936 3,165 32,572,696 278 63,277,504
2014 611 190,750,218 4,290 41,977,079 262 81,288,256
2015 666 241,065,285 5,528 53,561,372 239 95,276,289
2016 827 308,972,417 6,206 62,277,764 303 108,368,025
2017 1,071 348,481,070 7,342 73,002,815 227 (A) 69,562,947
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
2020 1,387 411,363,869 11,163 129,503,949 327 99,578,458
Source: Building Departments - Indian River County, City of Vero Beach, Town of Orchid
Town of Indian River Shores, City of Sebastian, and City of Fellsmere.
(A) Data for the Town of Indian River Shores was only available through April 30, 2017 due to
conversion to new software.
202
Schedule 17
Countywide
# of Additions 8 # of New # of Additions ft
Permits Alterations Permits Construction Permits Alterations
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
7,364 109,929,744 1,714 510,942,327 18,527 239,433,693
203
Indian River County, Florida
Operating Indicators by Function/Program (Unaudited)
Last Ten Fiscal Years
Function/Program
General Government
Purchasing
Purchase orders issued
2011 2012 2013 2014
1,805 1,852
1,740 1,760
Public Safety
Fire rescue
Vehicle rescue response 37,550 39,316 39,340 41,540
Fire code inspections 2,239 1,874 1,992 1,753
Advanced life support calls 10,935 10,904 10,991 11,283
Basic life support calls (transport only) 3,077 3,406 3,544 3,851
Sheriff
Arrests 4,464 3,144 3,885 4,262
Violent crimes 394 107 439 552
Non-violent crimes 6,058 6,063 5,683 5,853
Total calls for service 162,944 176,170 199,687 216,082
Building department
Construction permits issued 416 421 562 611
Estimated value of construction (millions) $ 96.3 $ 95.7 $ 159.4 $ 190.8
Physical Environment
Solid waste
Waste stream tonnage received 180,434 205,355 211,382 265,278
Total recycled material (tons) 30,424 53,255 50,792 101,444
Utilities - water & sewer
Number of water customers 44,254 44,571 45,216 46,223
Number of wastewater customers 25,465 25,773 26,233 26,948
Water ERUs 64,391 64,820 65,477 66,261
Wastewater ERUs 45,863 46,107 46,576 47,027
Water consumption (Average Daily Demand) 8,198,000 7,798,000 7,558,000 8,620,000
Source: Internal reports prepared by the various departments of Indian River County
204
Schedule 18
2015 2016 2017 2018 2019 2020
1,826 2,033
2,312 2,418
2,617 2,896
45,485 45,874 47,357 48,615 47,362 50,550
1,993 2,200 2,500 2,162 1,869 3,260
11,571 12,428 12,947 13,711 13,746 13,825
4,180 4,524 4,798 4,969 5,004 5,523
3,832 3,660 3,922 3,699 3,602 3,611
495 548 549 606 582 534
5,804 5,682 5,501 5,376 5,722 5,328
250,814 274,464 235,540 273,760 283,732 272,382
666 827 1,071 1,133 1,561 1,387
$ 241.100 $ 309.000 $ 348.400 $ 412.200 $ 486.200 $ 411.400
265,958 279,910 310,007 295,380 290,413 333,018
86,564 98,009 119,773 94,218 82,795 126,691
46,865 48,540 49,176 50,254 51,548 52,503
27,448 28,767 29,229 30,021 30,745 31,459
66,829 72,488 68,506 69,463 69,957 70,586
47,596 53,428 48,748 49,425 49,217 49,603
9,200,000 9,200,000 9,900,000 10,162,000 10,400,000 11,100,000
Continued
205
Indian River County, Florida
Operating Indicators by Function/Program (Unaudited)
Last Ten Fiscal Years
Function/Program
2011 2012 2013 2014
Transportation
Public works
Projects under design 26 19 20 43
Projects awarded for construction 7 10 5 7
Construction projects completed 8 8 5 20
County engineering
Roads designed 4 4 6 8
Miles of roads designed 1.00 8.00 6.00 8.35
Traffic engineering
Site plans reviewed 218 290 357 387
Culture/Recreation
Library
Circulation (County -wide) 1,362,857 1,277,253 1,300,764 (A) 1,317,458
Recreation department
Total beach park attendance 449,213 420,609 404,287 434,397
Athletic and event attendance 24,112 23,979 23,841 23,900
Aquatic centers attendance 98,515 97,965 97,183 105,459
Shooting range
Safety/Registration cards issued 8,176 8,302 8,462 7,911
Golf course
Rounds played 94,713 96,723 91,770 90,306
Court Related
Law library
Circulation
9,168 9,428 N/A (A) N/A
(A) Law library circulation is now included in the County -wide library circulation.
206
Schedule 18
2015 2016 2017 2018 2019 2020
34 13 15 31 20 18
9 3 7 8 8 8
17 17 13 11 10 15
8 6 5 4 6 5
10.00 8.50 11.00 4.75 18.75 17.20
554 412 560 715 890 636
1,295,310 1,389,188 1,315,425 1,254,954 1,365,623 982,346
416,962 669,465 553,630 792,782 788,389 642,014
24,073 24,267 23,974 25,016 24,832 19,231
110,186 116,997 112,308 113,592 114,700 64,276
7,655 5,984 6,867 7,318 7,196 4,771
93,739 91,426 96,332 93,361 96,775 92,644
N/A N/A N/A N/A N/A N/A
207
Indian River County, Florida
Full -Time Equivalent County Government Employees by Function/Program (Unaudited)
Last Ten Fiscal Years
2011 2012 2013 2014
General Government
Board of County Commissioners 10 8.5 9 9
County Attorney 6 6 6 6
Administration 2.35 2.35 2.35 2.35
Financial/Administrative Service 19.85 19.85 19.35 20.85
Comprehensive Planning 14.32 15 15 14.5
Other 34 34.75 33.9 33.4
Clerk of Circuit Court 98 96 98 93
Property Appraiser 36 35 35 36
Supervisor of Elections 8 8.5 8.5 9.5
Tax Collector 38 38 44 45
Public Safety
Fire Department 244 243 243 243
Sheriff - Corrections 207 163 163 163
Sheriff - Court Service 29.5 27.5 27.5 27.5
Sheriff - Law Enforcement 301 303 303 303
Building Department 15 14 15 18.5
Other 6.68 6 4 4
Physical Environment
Solid Waste 10 9 9 9
Utilities - water and sewer 112.5 112.5 113.5 116.5
Other 8 8 7 8
Transportation
Road and Bridges 77 77.25 77.1 78.1
County Engineering 27 26 24 24
Traffic Engineering 20 20 19 19
Real Estate Acquisition 1 1 1 1
Economic Environment 2.5 2.5 2.5 2.5
Human Services 13 13 12 12
Culture/Recreation
Libraries 46.5 42 41.5 41.5
Parks 34 28 28 28
Recreation Department 33 33.3 32.3 32.8
Coastal Engineering 2 2 2 2
Shooting Range 5 5 5 5
Golf Course 15.5 15 13.5 13.5
Court Related
Law Library 1 1 1 1
Total
1,477.7 1,416.0 1,415.0 1422.5
Source: Indian River County, Florida annual budgets
Method: Using 1.0 for each full-time employee and .50 for each part-time employee.
Budgeted temps/seasonal employees are omitted. Totals include unfilled positions.
208
Schedule 19
2015 2016 2017 2018 2019 2020
9 9 9 9 9 9
6 6 6 6 6 6
2.35 2.35 2.35 2.35 3.35 3.35
21.85 22.85 21.85 22.35 24.35 28.35
14.5 14.5 15 16 16.5 16.5
33.4 33.4 35.4 36.4 37.9 39.9
93 97 90 87 85.5 81
36 39 38 39 39 39
9.5 9.5 10.5 11 9 12
47 47 49 51 59.5 61.5
244 265 276 295 295.5 309.5
163 168 171 171 174 171
27.5 34 29 29 32 29
303 278 289 305 310 317.5
21.5 25 29.5 30.5 33.5 34.5
4.5 5.5 6 6 6 6
10 10 11 11 10 11
118.5 120.5 122.5 127.5 131.5 140
8 10 9 11 13 12
78.1 79.1 79.1 79.1 82.1 82.1
26 26 28 30 32 33
20 21 22 22 22 23
1 1 1 1 1 1
2.5 2.5 2.5 2.5 2.5 2.5
12 12 12 12.5 14 23
42 42 42 42 40.5 45.5
28 28 30 30 30 32
38.3 38.3 42.3 43.3 43.3 44.3
2 2 2 3 3 3
5 5.5 9.5 9.5 9.5 10
13.5 13 13 13 13 13.5
1'442.0 1,468.0 1'504.5 1,555.0 1,589.5 1'641.0
209
Indian River County, Florida
Capital Asset Statistics by Function/Program (Unaudited)
Last Ten Fiscal Years
Function/Program
2011 2012 2013 2014
General Government
Facilities Management
Total square footage maintained (A) 715,215 720,215 720,215 720,215
Number of facilities and sites maintained (A) 47 48 48 48
Vehicles 15 15 15 16
General government
Vehicles 31 31 30 30
Planning
Vehicles 7 6 5 6
GIS
Vehicles 1 1 1 1
Public Safety
Fire department
Vehicles 51 51 46 47
Fire stations 12 12 12 12
Advanced life support
Vehicles 18 18 19 19
E911 Center
Vehicles 1 1 1 1
Sheriff
Vehicles 298 295 274 293
Building department
Vehicles 9 9 9 10
Physical Environment
Solid waste
Vehicles 1 1 1 1
Telecommunications
Vehicles 1 1 1 1
Ag Extension
Vehicles 1 1 1 1
Utilities - Water and Sewer
Vehicles 81 85 79 80
Water treatment plants 2 2 2 2
Wastewater treatment facilities 6 6 6 6
Water main - miles 839 843 847 852
Force main - mites 229 223 225 225
Gravity sewer lines - mites 271 270 273 269
Transportation
Road and bridge
Mites maintained (paved Et unpaved) 636 638 650 650
Bridges maintained 75 75 71 72
Vehicles 67 67 64 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.
210
Schedule 20
2015 2016 2017 2018 2019 2020
720,215 760,801 881,874 909,559 903,452 903,452
48 66 55 56 54 54
15 15 14 14 17 18
28 26 28 28 26 27
6 6 6 6 6 6
1 1 1 1 1 1
58 60 57 58 58 58
12 13 13 14 14 14
17 19 18 18 18 18
1 1 1 1 1 1
282 323 321 311 311 315
16 25 19 19 19 19
2 2 2 2 2 2
1 1 1 2 2 2
1 1 2 2 3 2
81 81 83 83 85 99
2 2 2 2 2 2
6 6 6 6 6 6
857 859 860 866 879 885
221 223 222 222 223 223
268 267 271 273 282 287
650 653 653 660 702 702
72 72 72 72 72 72
67 63 56 56 77 76
Continued
Indian River County, Florida
Capital Asset Statistics by Function/Program (Unaudited)
Last Ten Fiscal Years
Function/Program
2011 2012 2013 2014
Transportation - continued:
Senior Resource Association
Vehicles 34 34 38 35
Engineering
Vehicles 16 13 13 13
Traffic engineering
Traffic signals operated 137 137 150 150
Beacons operated 53 46 45 45
Vehicles 1 1 1 1
Traffic operations
Vehicles 18 18 19 21
Human Services
Health department
Vehicles 15 17 17 17
Animal Control
Vehicles 7 7 7 6
Rental Assistance
Vehicles 2 2 2 2
Culture/Recreation
Libraries
Locations 4 4 4 4
Parks
Number of neighborhood parks 12 12 10 10
Number of County parks 47 47 40 37
Acreage 4,014 4,014 4,014 3,429
Picnic shelters maintained 69 69 69 69
Boat ramps maintained 8 8 8 8
Vehicles 25 24 22 23
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
212
Schedule 20
2015 2016 2017 2018 2019 2020
35 39 36 39 31 27
14 13 15 16 18 18
150 160 155 159 160 159
43 47 56 56 55 55
1 1 1 1 1 1
20 22 18 19 19 21
17 9 10 18 18 17
6 6 6 6 7 7
2 3 3 3 3 3
4 4 4 4 5 5
11 12 12 12 12 12
37 37 36 36 36 36
3,429 3,429 5,081 5,081 5,081 5,081
69 69 69 69 54 54
8 8 8 8 8 8
20 20 18 20 25 26
7 6 5 4 5 5
1 1 1 1 1 1
29 29 29 29 29 29
35 35 35 35 35 35
- - - 3 3 3
36 36 36 36 36 36
2 1 1 1 1 1
Indian River County, Florida
Department of Utility Services
Historical Rate Structure (Unaudited)
Last Ten Fiscal Years
WATER RATES 2011 - FEBRUARY 2019
Billing charge per account $ 1.29
Service avaitabitity 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
3,001-7,000 gallons
7,001-12,999 gallons
Greater than 13,000 gallons per month (per ERU)
Service availability charge where capacity is reserved
but lines are not available (per ERU)
Single-family and commercial
Multi -family and manufactured home
2.20
2.42
3.85
7.70
3.88
3.30
WATER RATES MARCH 2019 - CURRENT **
Service avaitabitity 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
4,001-7,000 gallons
7,001-12,000 gallons
12,001 and over gallons per month (per ERU)
Service avaitabitity charge where capactity is reserved
but lines are not available (per ERU)
Single-family and commercial
Multi -family and manufactured home
*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
214
2.20
2.57
4.95
9.75
4.38
3.72
Indian River County, Florida
Department of Utility Services
Historical Rate Structure (Unaudited)
Last Ten Fiscal Years
(Continued)
Schedule 21
SEWER RATES 2011 - 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)
Multi -family and commercial (0-13,000)
Multi -family and commercial (>13,000)
Service availability charge where capacity is reserved
but lines are not available (per ERU)
Single-family and commercial
Multi -family and manufactured home
2.86
2.86
4.29
7.29
6.20
SEWER RATES MARCH 2019 - CURRENT **
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)
Multi-famity and commercial (>12,000)
Service availability charge where capacity is reserved
but lines are not available (per ERU)
Single-family and commercial
Multi -family and manufactured home
*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
215
2.86
4.29
7.80
6.63
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 2011 through 2020 as set forth below:
Fiscal Year
Water ERUs Wastewater ERUs
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
2020 70,586 49,603
Source: Indian River County Utilities Department
216
Indian River County, Florida
Top 10 High Volume Customers of Utility Services (Unaudited)
Fiscal Year 2020
Schedule 23
Below is a table depicting the ten highest volume customers of the utility system for the fiscal year ended
September 30, 2020:
Customer
Annual Water Annual Wastewater
Volume Volume
(x 1,000 gals.) (x 1,000 gals.)
Vista Royale 1 34,241 1 34,241
MHC Village Green LLC 2 28,288 2 28,288
Acts, Inc. 3 25,793 3 25,686
City of Fellsmere 4 22,986
IRC School Board 4 22,816 7 17,594
Lakewood Village MHC, LLC 5 21,367 5 21,367
IRC Facilities Management 6 19,116 6 19,116
Disney's Vero Beach Resort 7 16,105 8 16,105
NHC FL1 LP/DBA Encore RV Park 8 15,482 9 15,482
Steward Sebastian River Medical Center, Inc. 9 14,851
Orchard Grove Venture, LLC 10 14,298 10 14,298
Source: Indian River County Utilities Department
217
Indian River County, Florida
Capacity Charges - Utilities Department (Unaudited)
Last Ten Fiscal Years
Schedule 24
The County also receives capacity charges in connection with the system. Capacity charges are not
pledged as a security for the bonds. While the County may pledge the capacity charges in the future,
the County presently has no intention to pledge capacity charges as security for the bonds. Capacity
charges for the last ten fiscal years ended September 30 are as follows:
Fiscal Year
Wastewater
Water Capacity Capacity Total
Charges Charges Charges
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
2020 1,218,748 1,788,042 3,006,790
218
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)
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
2020 500,004 2,714,264 678,566 10,073,449
(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.
219
220
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EMPOWER YOUR PURPOSE
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 10, 2021
The Honorable Board of County Commissioners
and Constitutional Officers Indian River County, Florida
We have audited, in accordance with the auditing standards generaily 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 mjor fund and the aggregate remaining
fund information of Indian River County, Florida (the "County"), as of and for the year ended
September 30, 2020, which collectively comprise the County's fund financial statements and have
issued our report thereon dated March 10, 2021.
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) as a basis for designing 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
internalcontrol.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent,
or detect and correct misstatements on a timely basis. A materia! weakness is a deficiency, or a
combination of deficiencies, in internal control such that there is a reasonable possibility that a
material misstatement of the entity's financial statements will not be prevented or detected and
corrected onatimely basis. Asignificant defic/encyisadefidency.oraconnbinationofdefidendes'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
ofthis 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 beenidentified.
Rehmann is an independent member of Nexia International.
9 5070 Highway A1A Suite 250 V ra Beach FL 32963 772 234 8484
221
The Honorable Board of County Commissioners
Indian River County, Florida
March 10, 2021
Page2
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 financial statements. 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 reslts of our tests disclosed no instances of noncompliance or other matters that are required
tobareported under Government A ndurds
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 otherpurpose.
222
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MANAGEMENT LETTER
March 10, 2021
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, 2020, and have issued our report thereon
dated March 10, 2021.
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 10, 2021, 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.
Rebmann is an independent member of Nexia International.
R member of
eia
?nternatlanal
223
The Honorable Board of County Commissioners
Indian River County, Florida
March 10, 2021
Page 2
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.
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), FloridaStatutes.
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.
224
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INDEPENDENT ACCOUNTANTS' REPORT
March 10, 2021
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, 2020.
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, 2020.
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.
rational.
R member of
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225
Rehmann
EMPOWER YOUR PURPOSE
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 10, 2021
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, 2020, and the related notes to
the financial statements, which collectively comprise the County's basic financial statements. We
issued our report thereon dated March 10, 2021, 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 awhole.
Rehmann is an independent member of Nexia International.
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226
Indian River County, Florida
Schedule of Expenditures of Federal Awards and State Projects
For the Fiscal Year Ended September 30, 2020
Federal/State Agency CFDA/ Contract/
Pass-through Entity CSFA Grant Transfers to
Federal Program/State Project No. No. Expenditures Subrecipients
Department of Commerce:
Passed through Florida Dept. of
Environmental Protection:
Jones Pier Conservation Area
Wetland and Hammock Restoration
Total Department of Commerce
Department of Housing and Urban Development:
Passed through Florida
Dept. of Economic Opportunity:
Community Development Block Grant
Neighborhood Stabilization Program
Program Income Expenditures
Community Development Block Grant
11.419 CZ219 $ 50,000
50,000
14.228 10DB-4X-10-40-01-F13 60
14.228 19DB-ON-10-40-01-H03 36,534
Subtotal CFDA - 14.228 36,594
Continuum of Care:
Rental Assistance
Rental Assistance
Rental Assistance
Rental Assistance
Rental Assistance
Rental Assistance
Rental Assistance
Homeless Management Information Systems
Rental Assistance
Rental Assistance
Rental Assistance
Rental Assistance
Homeless Management Information Systems
Rental Assistance
Subtotal CFDA - 14.267
14.267 FL0114L4H091912 35,270
14.267 FL0116L4H091912 2,400 $ 2,400
14.267 FL0119L4H091912 65,440
14.267 FL0360L4H091910 42,223
14.267 FL0440L4H091908 68,145
14.267 FL0113L4H091806 94,476 5,609
14.267 FL0114L4H091811 28,541 1,474
14.267 FL0116L4H091811 30,600 30,600
14.267 FL0119L4H091811 230,442 17,608
14.267 FL0338L4H091805 73,624 3,916
14.267 FL0360L4H091809 63,110 3,508
14.267 FL0380L4H091804 93,758 5,756
14.267 FL0418L4H091806 27,840 27,840
14.267 FL0440L4H091807 60,884 7,672
916,753 106,383
Housing Voucher Cluster:
COVID-19 - Section 8 Housing Choice Vouchers Admin 14.871 N/A 42,809
Section 8 Housing Choice Vouchers 14.871
FL -132 2,522,759
Subtotal CFDA - 14.871 2,565,568
Total Department of Housing and Urban Development
227
3,518,915 106,383
Indian River County, Florida
Schedule of Expenditures of Federal Awards and State Projects
For the Fiscal Year Ended September 30, 2020
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
Passed through Florida Department of Law
Enforcement:
COVID-19 - 2019 Local Solicitation Justice Assistance Program
16.575 V-2019-IRCSO-00522 $ 40,535
16.034 2020 -VD -BX -0442 63,595
2020 Local Solicitation Justice Assistance Program 16.738 2020-JAGC-INRI-2-Y5-140 11,950
2019 Local Solicitation Justice Assistance Program 16.738 2019 -DJ -BX -0817 19,738
2017 Local Solicitation Justice Assistance Program 16.738 2017 -DJ -BX -0706 17,995
Subtotal CFDA - 16.738 49,683
Direct Program:
State Criminal Alien Assistance Program
State Criminal Alien Assistance Program
16.606
16.606
2020 -AP -BX -1125
2019 -AP -BX -1195
37,339 *
33,653 *
Subtotal CFDA - 16.606 70,992
Total Department of Justice 224,805
Department of Transportation:
Passed through Florida Department of Transportation:
LAP - 43rd Avenue Sidewalk - Airport Drive to 41st Street 20.205 G1G10 357,726
Metropolitan Planning Organization 20.205 GOY81 358,238
Metropolitan Planning Organization 20.205 G1056 82,503
Total Highway Planning and Construction Cluster 798,467
Passed through Florida Department of Transportation:
Federal Transit Metropolitan Planning Grant
Federal Transit Metropolitan Planning Grant
Subtotal CFDA - 20.505
20.505
20.505
G0359
G1480
12,006
16,095
28,101
COVID-19 - Section 5311 - Non -Urbanized Public Transit 20.509 G1L75 18,327 $ 18,327
Section 5311 Non -Urbanized Public Transit 20.509 G1462 17,700 17,700
Section 5311 Non -Urbanized Public Transit 20.509 G1F64 49,510 49,510
Subtotal CFDA - 20.509 85,537 85,537
COVID-19 - Federal Transit Formula Section 5307 Grant 20.507 FL -2020-075-00 436,196 436,196
Federal Transit Formula Section 5307 Grant 20.507 FL -2018-103-00 62,227 62,227
Federal Transit Formula Section 5307 Grant 20.507 FL -2018-003-00 3,848 3,848
Federal Transit Formula Section 5307 Grant 20.507 FL -2016-033-00 109,014 109,014
Federal Transit Formula Section 5307 Grant 20.507 FL -2019-061-00 1,089,491 1,089,491
Subtotal CFDA - 20.507 1,700,776 1,700,776
Total Federal Transit Cluster 1,700,776 1,700,776
Total Department of Transportation 2,612,881 1,786,313
* Expenditures incurred in prior fiscal years
228
Indian River County, Florida
Schedule of Expenditures of Federal Awards and State Projects
For the Fiscal Year Ended September 30, 2020
Federal/State Agency CFDA/ Contract/
Pass-through Entity CSFA Grant Transfers to
Federal Program/State Project No. No. Expenditures Subrecipients
Department of Treasury:
Passed through the Florida Department
of Emergency Management:
Coronavirus Relief Fund 21.019 Y2282 $ 18,052,288 $ 2,294,471
Passed through Florida Housing Finance Corp:
Coronavirus Relief Fund Housing Assistance 21.019 064-2020 20,468
Total Department of Treasury
Elections Assistance Commission:
Passed through the Florida Dept. of State
Divison of Elections:
Elections Security Grant
Elections Security Grant
Subtotal CFDA - 90.401
90.401
90.401
COVID-19 - Elections Security Grant 90.404
MOA#2019-2020-0001-IND
MOA#2019-2020-0001-IND
18,072,756 2,294,471
27,680
1,283
28,963
MOA#2020-001-IND 163,330
Total Elections Assistance Commission 192,293
Department of Health and Human Services,
Agency for Children and Families,
Office of Child Support Enforcement:
Passed through Florida Department of Revenue:
Sheriff Service of Notices
Child Support Enforcement -Title IV D
93.563 00331 8,861
93.563 COC31 412,101
Total Department of Health and Human Services 420,962
Department of Homeland Security:
Passed through Division of Emergency Management:
Disaster Relief Funding - Hurricane Matthew 97.036 FEMA4283 219,356 *
Disaster Relief Funding - Hurricane Irma 97.036 FEMA4337 29,496 *
Disaster Relief Funding - Hurricane Dorian 97.036 FEMA4468 3,487,560
Subtotal CFDA - 97.036 3,736,412
Emergency Management Performance Grant 97.042 G0071 30,880
Emergency Management Performance Grant 97.042 G0002 73,142
Subtotal CFDA - 97.042 104,022
Operation Stonegarden 97.067 20 -DS -R0022 52,301
Operation Stonegarden 97.067 19 -DS -06-10-40-02-196 150,000
Operation Stonegarden 97.067 18 -DS -X5-10-53-02-186 45,434
Subtotal CFDA - 97.067 247,735
Total Department of Homeland Security 4,088,169
TOTAL EXPENDITURES OF FEDERAL AWARDS:
* Expenditures incurred in prior fiscal years
$ 29,180,781 $ 4,187,167
Indian River County, Florida
Schedule of Expenditures of Federal Awards and State Projects
For the Fiscal Year Ended September 30, 2020
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:
Emergency Management Preparedness and Assistance
Emergency Management Preparedness and Assistance
Subtotal CSFA - 31.063
31.063 A0090 $ 25,364
31.063 A0004 74,701
100,065
Hazardous Materials Analysis Grant 31.067 T0033 3,051
Total Division of Emergency Management 103,116
Department of Environmental Protection:
Sector 5 Beach Restoration 37.003 191R3 1,323,235
Total Department of Environmental Protection 1,323,235
Department of Economic Opportunity:
Community Planning Technical Assistance Grant 40.024 P0359 8,140
Total Department of Economic Opportunity 8,140
Florida Housing Finance Corporation:
State Housing Initiatives Partnership 40.901 N/A 285,582
Total Florida Housing Finance Corporation 285,582
Department of State:
State Aid to Libraries 45.030
20 -ST -21 85,304
Total Department of State 85,304
Department of Transportation:
Transportation Disadvantaged Grant
Transportation Disadvantaged Grant
Subtotal CSFA - 55.009
55.002 G1857 $ 18,271
55.002 G1N52 3,383
21,654
SCOP - CR512 Resurfacing 55.009 GOU52 340,975
SCOP - Resurfacing/Reclamation of 58th Avenue 55.009 GOW37 386,813
SCOP - Resurfacing 49th Street 55.009 G1913 666,470
CIGP - State Road 60 and 43rd Avenue Intersection 55.009 GOK60 1,642,556
Subtotal CSFA - 55.009 3,036,814
Fl Public Transit Block Grant 55.010 G1476 236,700 $ 236,700
Fl Public Transit Block Grant 55.010 G1F69 287,343 287,343
Subtotal CSFA - 55.009 524,043 524,043
FDOT Service Development Grant 55.012 G1276 24,100 24,100
FDOT Service Development Grant 55.012 G1652 309,500 309,500
Subtotal CSFA - 55.012 333,600 333,600
Transit Corridor Grant 55.013 G1650 56,915 56,915
Total Department of Transportation 3,973,026 914,558
230
Indian River County, Florida
Schedule of Expenditures of Federal Awards and State Projects
For the Fiscal Year Ended September 30, 2020
Federal/State Agency CFDA/ Contract/
Pass-through Entity CSFA Grant Transfers to
Federal Program/State Project No. No. Expenditures Subrecipients
STATE OF FLORIDA - Continued
Department of Health:
County Awards Grant -Emergency Medical Svc
64.005 C8031 $ 16,456
Total Department of Health 16,456
Department of Revenue:
Facilities for Retained Spring Training Franchise 73.016 N/A 500,004
Total Department of Revenue 500,004
Florida Fish and Wildlife Conservation Commission:
Derelict Vessel Removal 77.005 19240 18,300
Total Florida Fish and Wildlife Conservation Commission: 18,300
TOTAL EXPENDITURES OF STATE FINANCIAL ASSISTANCE:
Expenditures incurred in prior fiscal years
231
$ 6,313,163 $ 914,558
Indian River County, Florida
Notes to Schedule of Expenditures of Federal Awards and State Projects
For the Fiscal Year Ended September 30, 2020
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. This includes 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) and other applicable 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, and other applicable
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.
232
����
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EMPOWER YOUR PURPOSE
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 10, 2021
The Honorable Board of County Commissioriers
and Constitutional Officers
Indian River County, Florida
Report on Compliance for Each Mjor Federal Program and Major State P'ect
We have audited the compliance of Indian River County, Florida (the "County") with the types of
compliance requirements described in the OMB Compliance Supplementand 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, 2020. 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 majorfedena|
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 thatwe plan and perform theaudit 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 mjor 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 thecircumstances.
n�m�nw�/�v���member �����
9 5070 Highway A lA Suite 250 Vera Beach FL 32963 772 234 8484/.
233
The Honorable Board of County Commissioners
Indian River County, Florida
March 10, 2021
Page 2
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.
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 30,2020.
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 overcompliance.
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.
234
The Honorable Board of County Commissioners
Indian River County, Florida
March 10, 2021
Page 2
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.
235
INDIAN RIVER COUNTY, FLORIDA
Schedule e Findings and Cues
ne
For the Year Ended September 30, 2020
T
Financial Statements
Type of auditors' report issued:
Internal control over financial reporting:
Material weakness(es) identified?
Significant deficiency(ies) identified?
Noncompliance material to financial statements
noted?
Federal Awards and State Projects
Internal control over major programs and projects:
Material weakness(es) identified?
Significant deficiency(ies) identified?
Type of auditors' report issued on compliance
for major programs:
Any audit findings disclosed that are required
to be reported in accordance with
2 CFR 200.516(a)?
Identification of major programs:
CFDA Number
21.019
97.067
CSFA Number
37.003
55.010
55.012
73.016
Dollar threshold used to distinguish
between Type A and Type B programs:
Auditee qualified as low-risk auditee?
236
Unmodified
yes
yes
yes
X no
X none reported
X no
yes X no
yes X none reported
Unmodified
yes
X no
Name of Federal Program or Cluster
Coronavirus Relief Fund
Homeland Security Grant Program (HSGP)
Name of State Project
Beach Management Funding Assistance Program
Public Transit Block Program
Public Transit Service Development Program
Facilities for New Professional Sports, Retained
Professional Sports, or Retained Spring Training
Franchise
$ 750 000 (Federal and State)
X yes no
INDIAN RIVER COUNTY, FLORIDA
Schedule o Findings and Cues
ne
For the Year Ended September 30, 2020
EI
None noted.
ERA L AWARD AND TATI PR'
None noted.
DI
0 i COS'
INDIAN RIVER COUNTY, FLORIDA
Su,
etredule a
or Auatt Frn
For the Year Ended September 30, 2020
None noted.
238
JEFFREY R. SMITH, CPA, CGFO, CGMA
Clerk of Circuit Court and Comptroller
Comptroller Division
1801 27th Street, Building A
Vero Beach, Florida 32960
Telephone (772) 226-1516
AFFIDAVIT
BEFORE ME, the undersigned authority, personally appeared Jeffrey R. Smith, who
being duly sworn, deposes and says on oath that:
1. I am the Chief Financial Officer of Indian River County, which is a local
governmental entity of the State of Florida.
2. Indian River County adopted Ordinance No. 2005-015 on May 17, 2005
implementing eight new impact fee categories, plus revised transportation impact
fees (9 total impact fee categories). The impact fees were subsequently amended on
the following dates:
• March 24, 2009 in Ordinance No. 2009-003, the temporary suspension of five
of the nine original impact fees from April 1, 2009 through September 30,
2009.
• September 22, 2009 in Ordinance No. 2009-015, the impact fee rate schedule
was updated and the temporary suspension of five of the nine original impact
fees from October 1, 2009 through March 31, 2010.
• March 16, 2010 in Ordinance No. 2010-002, the temporary suspension of five
of the nine original impact fees was extended until March 31, 2011.
• March 15, 2011 in Ordinance No. 2011-002, the impact fees were amended to
suspend three of the nine original impact fees from April 1, 2011 through
March 31, 2012.
• March 13, 2012, Ordinance No.
1, 2012 through March 31, 2014
• March 11, 2014, Ordinance No.
1, 2014 through March 31, 201
• April 22, 2014, Ordinance No.
fee schedules.
2012-003 continued this suspension from April
2014-004 continued this suspension from April
5.
2014-009 adopted new non-residential impact
• October 14, 2014, Ordinance No. 2014-016 was adopted, which contained new
impact fee schedules comprised of the non-residential impact fees adopted as
part of Ordinance 2014-009 and new impact fees for residential uses and new
impact fees for a new impact fee category for High -Cube Automated
Warehouse. Both Ordinance 2014-009 and Ordinance 2014-016 also continued
the suspensions of three impact fee categories pending further trend
evaluation during the next scheduled impact fee methodological update.
Continued
239
• On March 10, 2020, Ordinance No. 2020-005 was adopted, which amended the
impact fee schedules and included new waiver/reductions for certain Single-
Family affordable housing and continued the aforementioned three impact fee
category suspensions.
3. Indian River County has complied and, as of the date of this Affidavit, remains in
compliance with Section 163.31801, Florida Statutes.
FURTHER AFFIANT SAYETH NAUGHT.
Officer of the Entity)
STATE OF FLORIDA, COUNTY OF INDIAN RIVER ,�
SWORN TO AND SUBSCRIBED before me this + day of I v n Ic*rC. '1 , 2021.
NO RY PUBLIC
Print Name
Personally known V or produced identification
Type of identification produced:
My Commission Expires: �' 5 1r20 d 5
240
241
Rehmann
EMPOWER YOUR PURPOSE
INDEPENDENT AUDITORS' REPORT
March 10, 2021
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, 2020, and the related notes to the financial statements, which
collectively comprise the Board's basic financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Independent Auditors' Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our
audit in accordance with auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller
General of the United States. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditors' judgment, including the assessment of
the risks of material misstatement of the financial statements, whether due to fraud or error. In making those
risk assessments, the auditor considers internal control relevant to the entity's preparation and fair
presentation of the financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal
control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of significant accounting estimates made by management,
as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
Rehmann is an independent member of Nexia International.
R momber of
Nexia
°' ?n i�'rna[lanal
242
The Honorable Board of County Commissioners
Indian River County, Florida
March 10, 2021
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, 2020, 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, 2020, 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 10, 2021, 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.
243
Indian River County, Florida
Board of County Commissioners
Balance Sheet
Governmental Funds
September 30, 2020
General
Impact
Fees
Transportation
ASSETS
Cash and investments $ 56,571,107 $ 28,890,087 $ 10,013,970
Accounts receivable 916,542 2,957
Special assessments receivable - 163,190
Due from other funds 433,421 -
Due from other governments 19,955,559 169,844 588,036
Interest receivable 130,920 59,261 195,712
Inventories 38,075 -
Prepaids and other assets 71,921 13,365
Advances to other funds 183,568
Total assets $ 78,301,113 $ 29,119,192 $ 10,977,230
LIABILITIES
Accounts payable $ 2,563,991 $ 294,107 $ 951,270
Retainage payable 5,163
Due to other funds
Due to other governments 251,890 78,368 -
Unearned revenues 241,886
Other deposits 21,652
Total liabilities 3,084,582 372,475 951,270
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - special assessments 338,395
Unavailable revenue - ambulance services
Unavailable revenue - state and federal grants 16,068,984 343,403
Unavailable revenue - investment interest 38,978 17,848 6,176
Total deferred inflows of resources 16,107,962 17,848 687,974
FUND BALANCES
Nonspendable:
Inventories 38,075 -
Prepaid items 71,921 13,365
Advances to other funds 259,687
Restricted for:
Transportation/road improvements 18,477,797 -
Court -related costs and improvements -
Housing assistance -
Law enforcement/public safety 1,817,217
Fire/emergency services 1,298,911 -
Tourism -related activities
Beach renourishment - -
Boating related projects -
Library services 212,195
Land acquisition
Stormwater, street lighting, and other special assessments -
Coronavirus assistance - -
Debt service
Capital projects 1,626,893 -
Parks/recreational projects 815,990 5,295,856 -
Committed to:
Economic incentives 1,022,573 -
Environmental conservation/preservation -
Library services 33,784 -
Parks/recreational projects 158,428
Assigned to:
Transportation/road improvements 9,324,621
Unassigned (deficit) 56,708,111
Total fund balances 59,108,569 28,728,869 9,337,986
Total liabilities, deferred inflows and fund balances $ 78,301,113 $ 29,119,192 $ 10,977,230
The accompanying notes are an integral part of the financial statements.
244
Emergency Optional Other Total
Services Beach Sales Governmental Governmental
District Restoration Tax Funds Funds
$ 20,558,744 $ 11,604,294 $ 90,440,820 $ 21,612,023 $ 239,691,045
2,217,326 - 61,000 41,442 3,239,267
- 163,190
- 851,024 - 1,284,445
995,223 4,672,390 3,583,196 2,456,347 32,420,595
43,558 23,917 189,405 48,063 690,836
48,591 - 86,666
21,057 250 7,270 113,863
- - 183,568
$ 23,884,499 $ 16,300,851 $ 95,125,445 $ 24,165,145 $ 277,873,475
$ 1,703,996 $ 164,476 $ 1,979,996 $ 2,960,464 $ 10,618,300
594,216 7,257 606,636
- 932,024 932,024
- 330,258
1,811,509 2,053,395
- 21,652
1,703,996 164,476 2,574,212 5,711,254 14,562,265
338,395
2,098,725 - - - 2,098,725
617,315 4,604,811 1,703,556 1,736,057 25,074,126
13,119 7,203 57,044 14,447 154,815
2,729,159
4,612,014 1,760,600
1,750,504 27,666,061
48,591 - - 86,666
21,057 250 7,270 113,863
- 259,687
19,381,696
6,121,639 24,599,436
244,058 244,058
1,373,953 1,373,953
2,220,640 4,037,857
20,680,607
1,168,169 1,168,169
11,524,111 11,524,111
- - 1,333,844 1,333,844
- 212,195
1,083,205 1,083,205
1,771,754 1,771,754
27,133 27,133
- 627,116 627,116
90,790,633 - 92,417,526
- 6,111,846
19,451,344 11,524,361
- 1,022,573
1,042,421 1,042,421
- 33,784
158,428
9,324,621
(317,815) 56,390,296
90,790,633 16,703,387 235,645,149
$ 23,884,499 $ 16,300,851 $ 95,125,445 $ 24,165,145 $ 277,873,475
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, 2020
General
Impact
Fees
Transportation
REVENUES
Taxes $ 76,282,083 $ - $ -
Permits, fees and special assessments 9,462,719 7,500,725 490,819
Intergovernmental 17,625,898 3,081,998
Charges for services 2,238,080 - 95,538
Judgments, fines and forfeits 242,472 500
Interest 1,450,020 422,066 156,602
Miscellaneous 4,752,652 6,000 419,027
Total revenues 112,053,924 7,928,791 4,244,484
EXPENDITURES
General government 11,850,764 658,555 342,210
Public safety 4,306,283
Physical environment 325,033 1,001,821
Transportation 4,202,981 1,424,274 13,873,064
Economic environment 473,417 -
Human services 5,298,834
Culture/recreation 11,117,375 900,282 -
Court related 457,849
Debt service:
Principal - - -
Interest and other fiscal charges - - -
Capital projects
Total expenditures 38,032,536 2,983,111 15,217,095
Excess of revenues over (under) expenditures 74,021,388
4,945,680 (10,972,611)
OTHER FINANCING SOURCES (USES)
Insurance recoveries 111,746
Transfers in 90,000 - 11,724,151
Transfers out (13,287,623) (77,319)
Transfers to constitutional officers (57,409,966) - -
Total other financing sources (uses) (70,607,589) 11,758,578
Net change in fund balances 3,413,799 4,945,680 785,967
Fund balances at beginning of year 55,694,770 23,783,189 8,552,019
Fund balances at end of year $ 59,108,569 $ 28,728,869 $ 9,337,986
The accompanying notes are an integral part of the financial statements.
246
Emergency Optional Other Total
Services Beach Sales Governmental Governmental
District Restoration Tax Funds Funds
$ 34,801,213 $ 1,017,849 $ 18,984,618 $ 9,907,703 $ 140,993,466
505,021 17,959,284
355,120 76,028 5,732 11,803,969 32,948,745
7,194,148 - 953,026 10,480,792
19,000 - 265,279 527,251
506,083 230,101 1,460,299 415,881 4,641,052
517,727 - 1,593,398 343,275 7,632,079
43,393,291
1,323,978 22,044,047
24,194,154 215,182,669
- - - 1,194,217 14,045,746
37,826,281 - - 1,359,222 43,491,786
- - - 392,439 1,719,293
7,134,856 26,635,175
246,593 720,010
6,153,560 11,452,394
7,432,799 - 2,221,384 21,671,840
556,673 1,014,522
37,826,281
7,558,000 7,558,000
- 325,774 325,774
17,302,374 - 17,302,374
7,432,799 17,302,374
27,142, 718 145, 936, 914
5,567,010 (6,108,821) 4,741,673 (2,948,564) 69,245,755
287,126 398,872
- 193,933 1,473,044 13,481,128
(180,197) (945,500) (14,490,639)
(802,755) (1,311,278) (2,170,163) (61,694,162)
(515,629)
5,051,381
14,399,963
193,933 (1,491,475)
(5,914,888) 3,250,198
17,439,249 87,540,435
(1,642,619) (62,304,801)
(4,591,183) 6,940,954
21,294,570 228,704,195
$ 19,451,344 $ 11,524,361 $ 90,790,633 $ 16,703,387 $ 235,645,149
247
Indian River County, Florida
Board of County Commissioners
Statement of Revenues, Expenditures, and
Changes in Fund Balances - Budget and Actual
General Fund
For the Year Ended September 30, 2020
REVENUES
Taxes
Permits, fees and special assessments
Intergovernmental
Charges for services
Judgments, fines and forfeits
Interest
Miscellaneous
Total revenues
EXPENDITURES
General government
Public safety
Physical environment
Transportation
Economic environment
Human services
Culture/recreation
Court related
Total expenditures
Excess of revenues over (under)
expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Transfers to constitutional officers
Total other financing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Budgeted Amounts
Original Final
Actual
Amounts
Variance
with Final
Budget
Positive
(Negative)
$
75,018,191 $ 75,018,191 $ 76,282,083 $ 1,263,892
8,948,050 8,948,050 9,462,719 514,669
14, 227,196
2,907,362
287,963
280,250
4,010,681
28,406,468
2,941,252
287,963
280,250
4,210,681
17,625,898
2,238,080
242,472
1,450,020
4,752,652
(10, 780, 570 )
(703,172)
(45,491)
1,169,770
541,971
105,679,693 120,092,855 112,053,924 (8,038,931)
12, 397,138
4,353,955
510,076
1,160,000
503,942
5,829,644
11,678,894
521,012
13,801,983
4,691,479
572,724
15,034,612
509,740
6,094,785
13,558,970
524,662
11,850,764
4,306,283
325,033
4,202,981
473,417
5,298,834
11,117,375
457,849
1,951,219
385,196
247,691
10,831,631
36,323
795,951
2,441,595
66,813
36,954,661
54,788,955
38,032,536
16,756,419
68,725,032
(11,934,745)
(59,438,680)
65,303,900
90,000
(13, 287, 624)
(59,850,884)
74,021,388
90,000
(13, 287, 623 )
(57,409,966)
8,717,488
1
2,440,918
(71,373,425)
(73,048,508)
(70,607,589)
2,440,919
(2,648,393)
(7,744,608)
3,413,799 $ 11,158,407
2,648,393
7,744,608
55,694,770
$ - $
$ 59,108,569
The accompanying notes are an integral part of the financial statements.
248
Indian River County, Florida
Board of County Commissioners
Statement of Revenues, Expenditures, and
Changes in Fund Balances - Budget and Actual
Impact Fees Fund
For the Year Ended September 30, 2020
REVENUES
Permits, fees and special assessments
Interest
Miscellaneous
Total revenues
EXPENDITURES
General government
Public safety
Transportation
Culture/recreation
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year $ $
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
$ 4,179,997 $ 4,179,997 $
47,500 47,500
7,500,725 $ 3,320,728
422,066 374,566
6,000 6,000
4,227,497
4,227,497 7,928,791 3,701,294
467,670 1,049,978 658,555
175,000 175,000
5,152,000 10,593,667 1,424,274
1,041,913 2,989,961 900,282
391,423
175,000
9,169, 393
2,089,679
6,836,583 14,808,606 2,983,111 11,825,495
(2,609,086) (10,581,109) 4,945,680 $ 15,526,789
2,609,086 10,581,109 23,783,189
- $ 28,728,869
The accompanying notes are an integral part of the financial statements.
249
Indian River County, Florida
Board of County Commissioners
Statement of Revenues, Expenditures, and
Changes in Fund Balances - Budget and Actual
Transportation Fund
For the Year Ended September 30, 2020
REVENUES
Permits, fees and special assessments
Intergovernmental
Charges for services
Judgments, fines and forfeits
Interest
Miscellaneous
Total revenues
EXPENDITURES
General government
Physical environment
Transportation
Total expenditures
Excess of revenues over (under) expenditures
OTHER FINANCING SOURCES (USES)
Insurance recoveries
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
$ 451,250 $
3,042,779
92,150
42,750
373,825
451,250 $
3,042,779
92,150
42,750
373,825
490,819 $
3,081,998
95,538
500
156,602
419,027
39,569
39,219
3,388
500
113,852
45,202
4,002,754
4,002,754
4,244,484
241,730
362,756 373,867
1,078,028 1,211,622
15,003,150 15,998, 530
342,210
1,001,821
13,873,064
31,657
209,801
2,125,466
16,443,934 17,584,019
15,217,095 2,366,924
(12,441,180) (13,581,265) (10,972,611) 2,608,654
11,692,691 11,840,401
(77,319) (77,319)
111,746 111,746
11,724,151 (116,250)
(77, 319) -
11,615,372 11,763,082
11,758,578
(4,504)
(825,808) (1,818,183)
785,967 $ 2,604,150
825,808 1,818,183
8,552,019
$
$
$ 9,337,986
The accompanying notes are an integral part of the financial statements.
250
Indian River County, Florida
Board of County Commissioners
Statement of Revenues, Expenditures, and
Changes in Fund Balances - Budget and Actual
Emergency Services District Fund
For the Year Ended September 30, 2020
REVENUES
Taxes
Intergovernmental
Charges for services
Judgments, fines and forfeits
Interest
Miscellaneous
Total revenues
EXPENDITURES
Public safety
Total expenditures
Excess of revenues over (under) expenditures
OTHER FINANCING SOURCES (USES)
Insurance recoveries
Transfers to constitutional officers
Total other financing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
$ 34,231,964
52,250
6,167,405
4,750
71,250
190
$ 34,231,964
68,706
6,399,492
4,750
71,250
190
$
34,801,213 $
355,120
7,194,148
19,000
506,083
517,727
569,249
286,414
794,656
14,250
434,833
517,537
40,527,809
40,776,352
43,393,291 2,616,939
40,014,095
43, 237,148
37,826,281 5,410,867
40,014,095
43, 237,148
37,826,281 5,410,867
513,714
(673,492)
(2,460,796)
(826,659)
5,567,010 8,027,806
287,126
(802,755)
287,126
23,904
(673,492)
(826,659)
(515,629)
311,030
(159,778)
(3,287,455)
5,051,381 $ 8,338,836
159,778
3,287,455
14,399,963
$
$
$ 19,451,344
The accompanying notes are an integral part of the financial statements.
251
Indian River County, Florida
Board of County Commissioners
Statement of Revenues, Expenditures, and
Changes in Fund Balances - Budget and Actual
Beach Restoration Fund
For the Year Ended September 30, 2020
REVENUES
Taxes
Intergovernmental
Interest
Total revenues
EXPENDITURES
Culture/recreation
Total expenditures
Excess of revenues over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Total other financing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
$ 1,050,000 $
10,000
1,050,000 $
10,000
1,017,849 $
76,028
230,101
(32,151)
76,028
220,101
1,060,000
1,060,000 1,323,978
263,978
2,112,704
2,112,704 7,432,799 (5,320,095)
2,112,704
2,112,704 7,432,799 (5,320,095)
(1,052,704)
193,933
(1,052,704) (6,108,821) (5,056,117)
193,933
193,933
193,933
193,933
193,933
(858,771)
(858,771) (5,914,888) $ (5,056,117)
858,771
858,771 17,439,249
$
$
$ 11,524,361
The accompanying notes are an integral part of the financial statements.
252
ASSETS
Current assets:
Cash and investments
Accounts receivable - net
Due from other governments
Interest receivable
Inventories
Prepaids and other assets
Current restricted assets:
Cash and investments
Total current assets
Non-current assets:
Capital assets - non -depreciable
Capital assets - depreciable
Capital assets - accumulated depreciation
Non-current restricted assets:
Special assessments receivable
Impact fees receivable
Liens receivable
Total non-current assets
Total assets
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions
Deferred outflows related to other postemployment benefits
Deferred amounts on refundings
Total deferred outflows of resources
LIABILITIES
Current liabilities (payable from current assets):
Accounts payable
Retainage payable
Due to other funds
Claims payable
Due to other governments
Other deposits
Unearned revenues
Pollution remediation costs payable
Accrued compensated absences
Total current liabilities (payable from current assets)
Current liabilities (payable from restricted assets):
Accounts payable
Accrued interest payable
Closure and maintenance costs payable
Notes payable
Customer deposits
Total current liabilities (payable from restricted assets)
Total current liabilities
Non-current liabilities:
Accrued compensated absences
Advance from other funds
Claims payable
Closure and maintenance costs payable
Net pension liability
Net other postemployment benefits liability
Notes payable
Total non-current liabilities
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions
Deferred inflows related to other postemployment benefits
Total deferred inflows of resources
NET POSITION
Net investment in capital assets
Unrestricted (deficit)
Total net position
Indian River County, Florida
Board of County Commissioners
Statement of Fund Net Position
Proprietary Funds
September 30, 2020
Enterprise Funds
Solid Waste
Disposal
District
Golf
Course
County
Utilities
County
Building
Total
Internal
Service
Funds
17,583,893 $
152,361
408,021
41,673
8,106,914
894,703 $
1,664
3,624
1,585
111,769
11,500
43,722,873 $
3,139,075
453,088
658,789
1,350,177
808
37,031,871
7,665,786 $
40,789
14,731
15,868
69,867,255 $
3,333,889
879,464
717,915
1,461,946
12,308
45,138,785
35,132,937
794,491
52,691
67,976
247,762
1,586,946
26,292,862 1,024,845 86,356,681
7,737,174
121,411,562 37,882,803
12,522,347
38,375,210
(17,056,903)
6,622,459
5,101,567
(2,243,632)
32,428,273
455,808,111
(307,444,947)
1,560,028
260,846
2,527,412
63,774
571,891
(431,442)
51,636,853
499,856,779
(327,176,924)
1,560,028
260,846
2,527,412
134,672
4,704,510
(3,247,457)
33,840,654 9,480,394 185,139,723
204,223 228,664,994 1,591,725
60,133,516 10,505,239 271,496,404
7,941,397
350,076,556 39,474,528
217,640 176,482
24,157 6,938
2,662,130
303,793
159,902
595,167 3,651,419
73,442 408,330
159,902
504,765
59,339
241,797 183,420 3,125,825
668,609 4,219,651
564,104
966,814
51,669 2,668,208
392,219
352,421 -
11,654
1,000
69,938
12,195
251,300
49,038 29,645 612,578
237,504 3,924,195 5,901,847
392,219
352,421
30,547
1,353,144
125,381
42,201
1,000
1,435,277
251,300
816,642
2,649,000
93,691
1,015,852
516,327 3,936,500
1,746,576
7,215,255 8,644,538
11,895
2,932
1,949,965
1,058,000
165,243 - 3,294,826
11,895
2,932
1,949,965
1,058,000
3,460,069
2,115,208 4,367,653
6,482,861
3,131,060 516,327 8,304,153
1,746,576
13,698,116 8,644,538
15,700 43,151 227,962
183,568 -
5,491,706 -
664,449 558,460
8,115 2,491
8,540,918
97,520
1,074,000
20,915
1,968,727
21,962
307,728
183,568
5,491,706
11,732,554
130,088
1,074,000
101,148
5,295,000
1,626,471
13,430
6,179,970 787,670 9,940,400
2,011,604
18,919,644 7,036,049
9,311,030 1,303,997 18,244,553
3,758,180 32,617,760 15,680,587
10,033 17,837 214,076
53,286 15,577 661,252
63,319 33,414 875,328
315
156,778
157,093
242,261
886,893
21,055
119,116
1,129,154
140,171
33,826,409 9,480,394 177,849,348 186,045 221,342,196 1,418,822
17,174,555 (129,146) 77,653,000 4,508,688 99,207,097 22,799,052
$ 51,000,964 $ 9,351,248 $ 255,502,348 $ 4,694,733 $ 320,549,293 $ 24,217,874
The accompanying notes are an integral part of the financial statements.
253
Indian River County, Florida
Board of County Commissioners
Statement of Revenues, Expenses, and Changes in Fund Net Position
Proprietary Funds
For the Year Ended September 30, 2020
OPERATING REVENUES
Charges for services
Total operating revenues
Enterprise Funds
Solid Waste
Disposal Golf
District Course
$ 16,638,875 $ 3,234,590
16,638,875 3,234,590
OPERATING EXPENSES
Personal services 865,765 633,933
Material, supplies, services and other operating 13,790,934 1,912,628
Depreciation 1,171, 336 252,108
Total operating expenses 15,828,035 2,798,669
Operating income (loss) 810,840 435,921
NONOPERATING REVENUES (EXPENSES)
Intergovernmental 193,378
Interest income 463,843 17,359
Gain on disposal of assets 4,220 156
Interest expense (15,496)
Loss on disposal of assets -
Total nonoperating revenues (expenses) 661,441 2,019
Income (loss) before transfers and capital
contributions 1,472,281 437,940
Capital grants and contributions 18,553
Transfers (777,875)
Change in net position 694,406 456,493
Total net position - beginning 50,306,558 8,894,755
Total net position - ending $ 51,000,964 $ 9,351,248
The accompanying notes are an integral part of the financial statements.
254
Enterprise Funds
County County
Utilities Building
$
Total
Internal
Service Funds
34,484,220 $ 3,556,867 $ 57,914,552 $ 35,437,701
34,484,220 3,556,867 57,914,552 35,437,701
11,073,448 3,054,391 15,627,537 3,708,834
17,269,676 1,894,988 34,868,226 30,332,140
14,335,660 79,957 15,839,061 397,905
42,678,784 5,029,336 66,334,824 34,438,879
(8,194,564) (1,472,469)
1,383,740
1,887
(138, 517)
(171)
126,216
1,246,939 126,216
(8,420,272) 998,822
193,378 8,813
1,991,158 523,889
6,263
(154,013)
(171) (1,254)
2,036,615 531,448
(6,947,625) (1,346,253) (6,383,657) 1,530,270
8,058,506 8,077,059 173,672
885,391 107,516 901,995
1,996,272 (1,346,253) 1,800,918 2,605,937
253,506,076 6,040,986 318,748,375 21,611,937
$
255,502,348 $ 4,694,733
$
320,549,293
$
24,217,874
Indian River County, Florida
Board of County Commissioners
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers
Cash paid to suppliers for goods and services
Cash paid to employees for services
Net cash provided by (used in) operating activities
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Transfers
Operating grants
Net cash provided by (used in) noncapitat financing activities
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Principal payments - bonds/notes
Interest paid on long-term debt
Payments on advances from other funds
Proceeds from advances from other funds
Proceeds from sales of capital assets
Purchase of capital assets
Bond paying agent and arbitrage fees
Capital grants and contributions
Net cash provided by (used in) capital and related financing activities
CASH FLOWS FROM INVESTING ACTIVITIES
Interest and dividends on investments
Net cash provided by investing activities
Net increase (decrease) in cash and investments
Cash and investments at beginning of year
Cash and investments at end of year
Classified as:
Current assets
Restricted assets
Totals
Enterprise Funds
Solid Waste
Disposal
District
$ 16,567,665
(14, 736, 397)
(795,023)
1,036,245
(777,875)
1,011,083
233,208
4,220
(1,623,052)
(1,618,832)
484,932
484,932
135,553
25,555,254
Golf
Course
$ 3,259,917
(2,019,923)
(582,772)
657,222
2,387
2,387
(15,496)
(352,942)
316,900
156
(384,905)
(436,287)
18,482
18,482
241,804
652,899
$ 25,690,807 $ 894,703
$ 17,583,893
8,106, 914
$ 25,690,807
$ 894,703
$ 894,703
The accompanying notes are an integral part of the financial statements.
256
Enterprise Funds
County
Utilities
$ 35,065,923
(16,450,403)
(10,140, 871)
8,474,649
885,391
66,522
951,913
(1,042,000)
(52,371)
1,887
(16,541,214)
(4,150)
3,577,597
County
Building
$
Total
3,967,060 $
(1,899,140)
(2,772,662)
58, 860, 565
(35,105,863)
(14,291,328)
(704,742) 9,463,374
(126,015)
(14,060,251) (126,015)
1,492,735
1,492,735
107,516
1,079,992
Internal
Service Funds
$ 36,590,368
(31,022,082)
(3,494,342)
2,073,944
901,995
1,187,508 901,995
(1,042,000)
(67,867)
(352,942)
316,900
6,263
(18,675,186)
(4,150)
3,577,597
(225,803)
(16,241,385) (225,803)
138,707 2,134,856 561,490
138,707 2,134,856 561,490
(3,140,954) (692,050)
(3,455,647) 3,311,626
83,895,698 8,357,836 118,461,687 31,821,311
$ 80,754,744
$ 43,722,873
37,031,871
$ 80,754,744
$
7,665,786 $ 115,006,040 $ 35,132,937
$ 7,665,786 $
$
69,867,255
45,138,785
$ 35,132,937
7,665,786 $ 115,006,040 $ 35,132,937
Continued
Indian River County
Board of County Commissioners
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2020
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) $ 810,840 $ 435,921
Adjustments to reconcile operating income to net cash
provided by operating activities:
Depreciation 1,171, 336 252,108
Work in progress reclassified as expense
(Increase) decrease in assets:
Accounts receivable (38,253) (273)
Due from other governments (22,943) 10,324
Inventories 5,232
Liens receivable
Impact fees receivable -
Special assessments receivable
Prepaid items - (10,262)
Decrease (increase) in liabilities:
Accounts payable (232,452) (105,359)
Due to other governments (1,514) 3,094
Retainage payable
Customer deposits (8,500)
Closure and maintenance costs payable (713,011) -
Pollution remediation costs payable
Net pension liability 126,615 95,480
Deferred inflows of resources related to the net pension liability (25,355) (19,120)
Deferred outflows of resources related to the net pension liability (24,492) (18,469)
Net OPEB liability (6,181) (1,709)
Deferred inflows of resources related to the net OPEB liability 4,971 1,375
Deferred outflows of resources related to the net OPEB liability (9,649) (2,669)
Unearned revenues 15,276
Claims payable
Accrued compensated absences 4,833 (3,727)
Total adjustments
Net cash provided by (used in) operating activities
225,405 221,301
$ 1,036,245 $ 657,222
NONCASH CAPITAL AND RELATED
FINANCING ACTIVITIES
Change in fair value of investments $ 7,320 $ 1,496
Capital grants and contributions $ - $ 18,553
Capital assets purchased through accounts payable $ 14,245 $
The accompanying notes are an integral part of the financial statements.
258
Enterprise Funds
County County
Utilities Building
Total
Internal
Service Funds
$ (8,194,564) $ (1,472,469) $ (8,420,272) $ 998,822
14,335,660 79,957 15,839,061 397,905
2,873 2,873
136,214 (40,789) 56,899 710,228
(115,188) 5,800 (122,007) 442,440
68,271 73,503 19,384
138,220 138,220
235,146 - 235,146
323,527 323,527
(808) 112 (10,958) (367,424)
166,178 (7,636) (179,269) (31,903)
(1,607) 3,372 3,345
194,846 194,846
(10,191) - (18,691)
(713,011) -
251,300 251,300
1,660,526 483,628 2,366,249 363,241
(332,527) (96,848) (473,850) (72,741)
(321,207) (93,552) (457,720) (70,265)
(78,505) (19,330) (105,725) (17,226)
63,150 15,549 85,045 13,858
(122,569) (30,181) (165,068) (26,895)
12,195 445,182 472,653 -
(310,000)
63,709 22,463 87,278 24,520
16,669,213 767,727
17,883,646 1,075,122
$ 8,474,649 $ (704,742) $ 9,463,374 $ 2,073,944
$ 10,206 $ 1,599 $ 20,621 $ 10,428
$ 5,010,563 $ - $ 5,029,116 $ 173,672
$ 927,882 $ 18,178 $ 960,305 $ 172,903
Indian River County, Florida
Board of County Commissioners
Statement of Fiduciary Net Position
Fiduciary Funds
September 30, 2020
Agency
Other
Postemployment
Benefits Trust
ASSETS
Cash $ 3,005,029 $ 76,576
Investments, at fair value:
Index funds 16,523,170
U.S. government securities funds 12,843,800
Money market fund 3,210,957
Total assets $ 3,005,029 $ 32,654,503
LIABILITIES
Due to other governments $ 739,038 $
Other deposits held in escrow 2,265,991
Total liabilities $ 3,005,029
NET POSITION
Net position restricted for OPEB 32,654,503
Total net position $ 32,654,503
The accompanying notes are an integral part of the financial statements.
260
Indian River County, Florida
Board of County Commissioners
Statement of Changes in Fiduciary Net Position
Other Postemployment Benefits Trust Fund
For the Year Ended September 30, 2020
ADDITIONS
Employer contributions $ 2,206,025
Net appreciation in fair value of investments 2,520,594
Less investment expense (2,115)
Net investment income 2,518,479
Total additions 4,724, 504
DEDUCTIONS
Benefit payments
Total deductions
2,577,846
2,577,846
Change in net position 2,146,658
Net position - beginning
Net position - ending
30,507,845
$ 32,654,503
The accompanying notes are an integral part of the financial statements.
261
262
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2020
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.
263
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
A. Reporting Entity - Continued
Blended Component Units - Continued
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. 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 16 for more information on the spending hierarchy of fund balances in the fund
financial statements.
264
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
B. Fund Financial Statements - Continued
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 16 for more information on the categories and descriptions of fund
balances in the fund financial statements.
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.
265
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
B. Fund Financial Statements - Continued
Governmental Funds - Continued
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.
266
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2020
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.
Beach Restoration Fund - The Beach Restoration Fund accounts for the expenditures of
funds to preserve and improve County beaches. Funds are provided by the levy of a local
tourist development 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.
267
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2020
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.
268
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
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 and the FL Short Term Asset Reserve (FLSTAR). Investments are
reported at market value based upon the custodian bank's valuation. The FLCLASS and
FLSTAR values are measured at the net asset value per share determined by the pool. Refer
to Note 3C, Investments, for further information on individual investments.
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, 2020, the allowance for
water and sewer was $424,493 and for ambulance services was $114,932. No other
allowances for doubtful accounts are maintained since other accounts receivable are
considered collectible as reported at September 30, 2020.
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, 2020.
269
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
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.
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.
270
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
H. Capital Assets - Continued
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
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.
. 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.
271
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
. Deferred Outflows/Inflows of Resources - Continued
The first item is unavailable revenue, which arises under a current financial resources focus
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, investment interest earnings 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 Postemptoyment Benefits Other Than Pensions. Further information
and detail on the composition of these items is discussed in Notes 13 and 14.
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.
272
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
K. Pensions/Net Pension Liability - Continued
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. 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.
N. Unearned Revenues
In governmental and proprietary fund financial statements, unearned revenues represent
revenues which are available but not earned.
273
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
0. 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.
P. 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, 2020.
NOTE 2 - STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
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.
274
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 2 - STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY - Continued
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.
NOTE 3 - 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, 2020, the carrying value of the Board's deposits was $122,660,438 and the
bank balance was $126,344,226. 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".
275
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 3 - CASH AND INVESTMENTS - Continued
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, 2020, accrued interest for the Board's portfolio
totaled $806,078 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.
C. Investments
As of September 30, 2020, the Board had the following investments:
Investment Type
Fixed Rate Debt Instruments:
Weighted
Average Investment
Maturity Portfolio Credit
Fair Value In Years Percentage*** Risks*
U.S. Treasuries $ 81,623,670 0.59 30.21 % N/A
U.S. Agencies:**
Federal Farm Credit Bureau 43,101,030 1.32 15.95 AA+
Federal Home Loan Bank 22,993,300 1.26 8.51 AA+
Federal Home Loan Mortgage 61,069,740 1.63 22.60 AA+
Federal National Mortgage Assoc. 18,170,480 0.70 6.73 AA+
Other Market Rate Investments:
FLCLASS 37,035,261 0.23 13.71 AAAm
FLSTAR 5,015,954 0.10 1.86 AAAm
was Sinking Fund Reserve:
U.S. Treasuries 1,165,178 0.17 0.43 N/A
Total Fair Value $ 270,174,613 100.00
Weighted Average Maturity of Investments 0.91
* 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).
***Percentages calculated do not include the cash and deposits portion of the total portfolio
276
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 3 - CASH AND INVESTMENTS - Continued
C. Investments - Continued
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 Levet 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.
The Board's investments in the Florida Cooperative Liquid Assets Securities Systems
(FLCLASS) and the Florida Short Term Asset Reserve (FLSTAR), 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 FLSTAR are to
generate investment income while maintaining safety and liquidity. There were no
unfunded committments as of September 30, 2020. Investments may be redeemed
weekly/daily based on similar investments of other clients.
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.
277
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 3 - CASH AND INVESTMENTS - Continued
C. Investments - Continued
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.
Concentration Risk
The Board's cash and investment policy has established asset allocation and issuer limits to
reduce concentration of credit risk in the Board's cash and investment portfolio. The
Board's cash and 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 entire cash and
investment portfolio may be placed in any one money market fund, mutual fund, or
intergovernmental investment pool.
278
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2020
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 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, 2020, 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 and
FLSTAR which was held by JP Morgan Chase 6t Co.
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, 2020 was $2,206,025. The cash balance in
the OPEB Trust at September 30, 2020 was $76,576. 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, 2020, the annual money -weighted rate of return on
investments, net of investment expense, was 7.99%. The money -weighted rate of return
expresses investment performance, net of investment expense, adjusted for the changing
amounts actually invested.
279
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 3 - CASH AND INVESTMENTS - Continued
D. OPEB Trust - Continued
As of September 30, 2020, the OPEB Trust had the following investments:
Investment Type
Vanguard 500 Index
Vanguard Alt World Ex -US
Vanguard Mid Cap Index
Vanguard Small Cap Index
Vanguard Short Term Treasury
Vanguard Intermediate Treasury
Vanguard Cash Resry Money Mkt
Total Fair Value
Weighted
Average
Maturity Portfolio
Fair Value In Years Percentage
$ 7,508,027
6,517,414
1,667,098
830,631
9,632,870
3,210,930
3,210,957
NIA
N/A
N/A
N /A
2.80
5.70
0.15
23.04
20.00
5.12
2.55
29.57
9.86
9.86
$ 32,577,927 100.00
The Board has the following recurring fair value measurements for investments in the OPEB
Trust as of September 30, 2020:
Index Funds
U.S. Government Securities Funds
Money Market Fund
Total investments
Level 1
Level 2 Level
$ 16, 523,170 $ $
12,843,800
3,210,957
$ 32,577,927 $ - $
Total
$ 16, 523,170
12,843,800
3,210,957
$ 32,577,927
Investments classified as Level 1 of the fair value hierarchy are valued using quoted prices in
active markets from the Board's custodian bank.
280
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2020
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 2019-2020 fiscal
year were levied in October 2019. 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 5 - CAPITAL ASSETS
A. Governmental Fund Type Capital Assets
A summary of changes in the Governmental fund type capital assets is as follows:
Balance 10/1/2019
Additions
Deletions
Transfers
Balance 9/30/2020
Buildings
And Construction
Land Improvements Equipment Intangibles Infrastructure In Progress
$
137,204,376 $ 254,323,541 $ 51,497,147 $ 4,384,753 $ 438,040,084 $ 31,032,003
32,066 214,180 4,208,299 65,906 2,106,775 27,538,552
(7,820) (322,384) (1,638,765) (62,578) (24,861) (117,260)
483,431 177,281 53,915 4,860,439 (5,575,066)
$
137,228,622 $ 254,698,768 $ 54,243,962 $ 4,441,996 $ 444,982,437 $ 52,878,229
Total
$
916,481,904
34,165,778
(2,173,668)
$ 948,474,014
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.
281
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 5 - CAPITAL ASSETS - Continued
B. Proprietary Fund Type Capital Assets
Enterprise Funds
A summary of changes in the Enterprise fund type capital assets is as follows:
Balance 10/1/2019
Additions
Deletions
Transfers
Less:
Accumulated Depreciation
Balance 9/30/2020
Land
$ 20,807,222
6,009,325
26,816,547
$ 26,816,547
Internal Service Funds
Buildings
And
Improvements Equipment Intangibles
$
473,434,251
3,147,989
(6,609)
6,602,249
483,177,880
(310,244,017)
$
19,409,052
2,386,560
(670,484)
179,361
$
3,326,366
145,695
(10,768)
21,304,489 3,461,293
(15,722,070) (1,210,837)
172,933,863 $
5,582,419
$
Construction
In Progress
$ 12,159,867
11,358,039
(2,873)
(6,781,610)
Total
$ 529,136,758
23,047,608
(690,734)
16,733,423 551,493,632
(327,176,924)
2,250,456 $ 16,733,423 $ 224,316,708
A summary of changes in the Internal Service fund type capital assets is as follows:
Buildings
And
Improvements
Balance 10/1/2019 $
Additions
Deletions
Transfers
Equipment
13,815 $ 1,786,571
740,371
(59,627)
22,602 7,562
Less:
Accumulated Depreciation
Balance 9/30/2020 $
36,417 2,474,877
(6,960) (1,419,066)
Intangibles
Construction
In Progress
$ 2,153,923 $
59,293
(20,000)
2,193,216
(1,821,431)
164,836
(30,164)
134,672
Total
$ 3,954,309
964,500
(79,627)
4,839,182
(3,247,457)
29,457 $ 1,055,811 $ 371,785 $ 134,672 $ 1,591,725
282
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 6 - RESTRICTED CASH AND INVESTMENTS
Sinking funds
Renewal and
replacement
Customer deposits
Capital construction
Closure and maintenance cost
Total
Solid Waste
Disposal
District
$
165,243
500,000
7,441,671
County
Utilities
Total
$ 1,256,276 $ 1,256,276
3,485,928
3,294,826
28,994,841
3,485,928
3,460,069
29,494,841
7,441,671
$ 8,106,914 $ 37,031,871 $ 45,138,785
NOTE 7 - INTERFUND BALANCES
Interfund balances at September 30, 2020, consisted of the following:
Receivable Fund
General Fund
General Fund
Optional Sales Tax Fund
Payable Fund Amount
Nonmajor Governmental Funds
Golf Course Enterprise Fund
Nonmajor Governmental Funds
$ 81,000
535,989
851,024
$ 1,468,013
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%. In January 2020, the General Fund
loaned $316,900 to the Golf Course Enterprise Fund to purchase new golf carts at an interest
rate of 3%. 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 2021. 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, 2020, consisted of the following:
Receivable Fund Payable Fund Amount
General Fund Golf Course Enterprise Fund $ 183,568
283
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 7 - INTERFUND BALANCES - Continued
This amount is considered a long-term advance between major funds expected to be paid in
fiscal years 2022 and 2023. 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, 2020, consisted of the following:
Transfers In:
Beach Nonmajor Internal
General Restoration Transportation Governmental Utilities Service
Fund Fund Fund Funds Fund Funds
Total
Transfers Out:
General Fund $ - $ 193,933 $ 11,692,691 $ 1,134,682 $ - $ 266,317 $ 13,287,623
Transportation
Fund - 77,319 77,319
Optional Sales
Tax Fund - 150,000 30,197 - 180,197
Nonmajor
Governmental Funds - - - 188,362 757,138 945,500
SWDD Fund 777,875 777,875
Internal Service Funds 90,000 31,460 121,460
Total $ 90,000 $ 193,933 $ 11,724,151 $ 1,473,044 $ 885,391 $ 1,023,455 $ 15,389,974
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 general fund revenues to early payoff a general obligation note payable, 5)
transfer a capital asset paid for by the SWDD fund to the utilities fund 6) use unrestricted
stormwater revenues to offset Osprey Marsh employee costs accounted for in the utilities
fund 7) use capital project fund revenues for improvements to the Jackie Robinson Training
Complex and subsidize the North Sebastian Septic to Sewer incentive program, and 8) move
insurance funds recieved in a prior fiscal year to the correct fund.
284
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 9 - ACCOUNTS PAYABLE
Accounts payable at September 30, 2020, were as follows:
Governmental Funds:
General
Impact Fees
Transportation
Emergency Services
Beach Restoration
Optional Sales Tax
Other Governmental
Total Governmental Funds
Proprietary Funds:
Payable from current assets:
Solid Waste
Golf Course
Utilities
Building
Other Proprietary
Payable from restricted assets:
Utilities
Total Proprietary Funds
Vendors
$ 1,902,675
290,712
551,522
315,508
157,023
1,979,996
2,909,633
$ 8,107,069
Salaries and
Benefits
$ 661,316
3,395
399,748
1,388,488
7,453
50,831
$ 2,511,231
$ 927,887 $
24,277
2,189,922
103,299
5,785,794
11,895
38,927
27,392
478,286
134,205
116,053
Total
Accounts
Payable
$ 2,563,991
294,107
951,270
1,703,996
164,476
1,979,996
2,960,464
$ 10,618,300
$ 966,814
51,669
2,668,208
237,504
5,901,847
11,895
$ 9,043,074 $ 794,863 $ 9,837,937
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, 2020 were
$351,747 for governmental funds and $69,593 for proprietary funds.
The Board has not engaged in any short-term debt activity during fiscal year 2020 other than
that listed in Note 7.
285
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 10 - LONG-TERM LIABILITIES
A. Governmental Funds Long -Term Debt
Changes in Long -Term Liabilities
Balance Balance
October 1, September 30,
2019 Additions Deletions 2020
Accrued Compensated Absences $ 4,118,555 $ 2,899,415 $ 2,331,519 $ 4,686,451
Bonds Payable:
Spring Training Facility
Revenue Bonds - 2001 Series
Notes From Direct Borrowings
And Direct Placements:
Limited General Obligation
Refunding - 2015 Series
4,155,000
290,000 3,865,000
7,268,000 - 7,268,000
Grand Total $ 15,541,555 $ 2,899,415 $ 9,889,519 $ 8,551,451
Of the $4,686,451 liability for accrued compensated absences, management estimates that
$2,824,897 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 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 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).
286
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 10 - LONG-TERM LIABILITIES - Continued
A. Governmental 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, 2020, are as follows:
Fiscal Year Spring Training Facility
Ending Revenue Bonds
September 30 Series 2001
Principal Interest
2021 $ 305,000 $ 194,013
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 3,865,000 $ 1,184,263
Less:
Current portion 305,000
Total $ 3,560,000
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
287
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 10 - LONG-TERM LIABILITIES - Continued
A. Governmental Funds Long -Term Debt - Continued
Spring Training Facility Revenue Bonds, Series 2001 - Continued
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
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, 2020 is $80,055 and is
reflected as a deferred outflow of resources on the government -wide Statement of Net
Position.
The current principal and interest payments of $491,625 represent 4.99% of total pledged
revenues. All three pledged revenue sources totaled $9,841,736 for the current fiscal year.
The Board applied 98% of the state subsidy and none of the Half -Cent Sales Tax or
Fourth -Cent Tourist Tax to the debt service payments. The total principal and interest
remaining to be paid on the bonds is $5,049,263.
Bonds Issued - At September 30, 2020, Spring Training Facility Revenue Bonds consisted of
the following:
Description
Spring Training Facility
Revenue Bonds, 2001 Series
Outstanding at
Interest Rates September 30,
and Date Maturity Issue 2020
3.30%-5.25%
4/1 and 10/1 2031 $ 16,810,000 $ 3,865,000
288
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 10 - LONG-TERM LIABILITIES - Continued
A. Governmental Funds 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 tot, at par plus accrued interest, according to the
following schedule:
Term Bonds due April 1, 2021
Date
April 1, 2021
Principal Amount
$ 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.
On May 19, 2020, the Board approved to early payoff the remaining balance of the Note in
the amount of $7,268,000 on July 1, 2020.
289
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 10 - LONG-TERM LIABILITIES - Continued
B. Proprietary Funds Long -Term Debt
Changes in Long -Term Liabilities
Balance Balance
October 1, September 30,
2019 Additions Deletions 2020
Accrued Compensated Absences: $ 1,207,411 $ 966,802 $ 855,004 $ 1,319,209
Notes From Direct Borrowings And
Direct Placements:
Water a Sewer Revenue
Refunding Note Series 2015
3,174,000
1,042,000 2,132,000
Grand Total $ 4,381,411 $ 966,802 $ 1,897,004 $ 3,451,209
Annual Debt Service Payments
The annual debt service payments for bonds and notes from direct borrowings and direct
placements outstanding at September 30, 2020 are as follows:
Fiscal Year Water and Sewer
Ending Revenue Refunding
September 30 Note Series 2015
Principal Interest
2021 $ 1,058,000 $ 35,178
2022 1,074,000 17,721
Total 2,132,000 $ 52,899
Less:
Current portion 1,058,000
Total $ 1,074,000
290
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 10 - LONG-TERM LIABILITIES - Continued
B. Proprietary Funds Long -Term Debt - Continued
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,
2020 is $159,902 and is reflected as a deferred outflow of resources on the Statement of Net
Position.
Pledge of Revenues - The note is collateralized, for the remaining term of the note, by a
pledge of all net revenues derived from the operation of the system, certain surcharges, and
special assessments. Annual principal and interest payments of $1,094,371 represent
approximately eight percent of net revenues of $13,106,552 of the utility system. The total
principal and interest remaining to be paid on the 2015 note is $2,184,899. Refer to
Schedule 14 in the statistical section for further detail.
Rate Covenant - Net revenues shalt 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.
291
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2020
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 $11.6 million.
These costs will be recognized in future periods as the remaining capacity is filled. The
Board's policy is to fund 100% of the current year's allocation (based upon the consulting
engineers' report) of both closure and post -closure care. Required closure and post -closure
sub -accounts:
Closure Costs
Class 1 - Segment 111, Cell!
Construction and Demolition
Capacity Estimated
Used Closing
Amount
90% 2022 $ 4,763,882
93% 2027 1,034,866
Post -closure Costs
Class! - Segments 1 and 11 N/A N/A 1,563,435
Construction and Demolition N/A N/A 79,488
Total account balance at 9/30/20 $ 7,441,671
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, 2020, $7,430,173 was on
deposit at the Florida Cooperative Liquid Assets Securities System (FLCLASS) and $11,498
was on deposit in the Board's operating account.
292
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 11 - PROVISION FOR CLOSURE COSTS - Continued
A summary of changes in the landfill closure liability account is as follows:
Balance Balance
10/1/2019 Deposits Withdrawals 9/30/2020
Closure and long-term care costs $ 8,154,682 $ 1,515,017 $ (2,228,028) $ 7,441,671
Of the $7,441,671 liability for closure and long-term care costs, management estimates that
$1,949,965 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 three 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 sites requiring the Board (using the consultant's services)
to attempt to accrue a liability for pollution remediation. The liability totaled $1,861,300 at
September 30, 2020 for the three sites. Of the $1,861,300 liability for pollution
remediation, management estimates that $314,833 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
. 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 $10,000
and will be paid from the General Fund.
Total governmental funds liability: $1,610,000
293
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 12 - POLLUTION REMEDIATION - Continued
Governmental Funds - Continued
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.
Proprietary Funds
3. Premier Citrus Property - The nature of the pollution remediation obligation is
aboveground storage tank petroleum and/or pesticide and herbicide contamination. The
consultant will conduct monitoring, bioremediation and reporting with the FDEP. The
amount of the estimated year end liability is $251,300 and will be paid from the Utilities
Operating Fund.
Total proprietary funds liability: 5251,300
NOTE 13 - 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.
294
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 13 - RETIREMENT PLAN - Continued
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 fife. 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.
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
295
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 13 - RETIREMENT PLAN - Continued
Pension Plan - Continued
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, 2020 were: Regular Class 10.00%, Special Risk 24.45%,
Special Risk Administrative Support 35.84%, Senior Management 27.29%, DROP 16.98%, and
Elected Official Class 49.18%. 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.
The Board's actuarial contribution to FRS under the Pension Plan for the year ended
September 30, 2020, was $6,564,681. Employee contributions for September 30, 2020 were
$1,141,827. Both employer and employee contributions were equal to 100% of the required
contribution.
296
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 13 - RETIREMENT PLAN - Continued
Pension Plan - Continued
Pension Liabilities, Pension Expense, and Deferred Outflow of Resources and Deferred
Inflow of Resources Related to Pension Plan: At September 30, 2020, the Division of
Retirement calculated the Board's liability of $83,236,505 for the FRS plan for its
proportionate share of the net pension liability. The net pension liability was measured as
of June 30, 2020, and the total pension liability used to calculate the net pension liability
was determined by an actuarial valuation as of July 1, 2020. 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, 2020, the Board's proportionate share was
0.192048% for the FRS Pension Plan. This was an increase of 0.005449% from its
proportionate share measured as of June 30, 2019.
For the year ended September 30, 2020, the Board's calculated total increase of actuarially
determined pension expense was $13,371,108. Of this amount, the Board recognized
$1,524,507 in the enterprise funds and $234,025 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 $ 3,185,630 $
Changes in assumptions 15,068,456
Net difference between projected and actual
earnings on pension plan investments 4,955,982
Changes in proportion and differences between
Board contributions and proportionate share of
contributions 3,004,702 395,135
Board contributions subsequent to the measure-
ment date 1,630,945
Total $ 27,845,715 $ 395,135
Deferred outflows related to pensions recognized by enterprise funds were $3,651,419 and
$504,765 for internal service funds. Deferred inflows related to pensions recognized by the
enterprise funds were $242,261 and $21,055 for the internal service funds.
297
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 13 - RETIREMENT PLAN - Continued
Pension Plan - Continued
The deferred outflows of resources related to pensions totaling $1,630,945 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, 2021. Other amounts reported
as deferred outflows of resources and deferred inflows of resources related to pensions will
be recognized in pension expense as follows:
Amount
Fiscal Year Ending September 30: Recognized
2021
2022
2023
2024
2025
Total
$ 5,320,802
8,286,834
7,043,776
4,210,800
957,423
$ 25,819,635
Actuarial Assumptions: The total pension liability in the July 1, 2020 actuarial valuation was
determined using the following actuarial assumption, applied to all periods included in the
measurement:
Valuation date:
Measurement date:
Discount rate:
Long-term expected rate of return:
Inflation:
Salary increase:
Mortality:
Actuarial cost method:
July 1, 2020
June 30, 2020
6.80%
6.80%, net of pension plan investment
expense, including inflation
2.40%
3.25%, including inflation
PUB -2010 base table, projected
generationally with Scale MP -2018
Individual Entry Age
The actuarial assumptions that determined the total pension liability used in the July 1,
2020 valuation were based on the results of an actuarial experience study for the period
July 1, 2013 through June 30, 2018.
298
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 13 - RETIREMENT PLAN - Continued
Pension Plan - Continued
The following changes in actuarial assumptions occurred in 2020:
• The long-term expected rate of return decreased from 6.90% to 6.80%.
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:
Compound
Annual Annual
Target Arithmetic (Geometric) Standard
Asset Class Allocation Return Return Deviation
Cash 1% 2.2% 2.2% 1.2%
Fixed Income 19% 3.0% 2.9% 3.5%
Global Equity 54.2% 8.0% 6.7% 17.1%
Real Estate (Property) 10.3% 6.4% 5.8% 11.7%
Private Equity 11.1% 10.8% 8.1% 25.7%
Strategic Investments 4.4% 5.5% 5.3% 6.9%
Total 100%
Assumed inflation -mean
2.4% 1.7%
Discount Rate for Pension Plan: The discount rate used to measure the total pension liability
was 6.80%. 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.
299
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 13 - 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 6.80%. 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
(5.80)% Rate (6.80%) (7.80)%
Board's proportionate share of NPL $ 132,914,711 $ 83,236,505 $ 41,745,052
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 (877) 377-1737 or (850) 488-5706. 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.
300
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 13 - RETIREMENT PLAN - Continued
Retiree Health Insurance Subsidy (HIS Program)
Plan Description: The HIS Program is a cost-sharing, multiple -employer, defined benefit
pension plan established to provide a monthly subsidy payment to retired members of any
state -administered retirement system. It was established under Section 112.363, Florida
Statutes. Benefits are not guaranteed and are subject to annual legislative appropriation.
In the event legislative appropriation or available funds fail to provide full subsidy benefits
to all participants, benefits may be reduced or canceled. The HIS Program is administered
by the Florida Department of Management Services, Division of Retirement.
Benefits Provided: For fiscal year ended September 30, 2020, 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,
2020, 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 $829,745 for the fiscal year ended September 30, 2020.
Pension Liabilities, Pension Expense, and Deferred Outflow of Resources and Deferred
Inflow of Resources Related to HIS Program: At September 30, 2020, the Division of
Retirement calculated the Board's liability of $17,346,039 for its proportionate share of the
HIS Program's net pension liability. The net pension liability was measured as of June 30,
2020, and the total pension liability used to calculate the net pension liability was
determined by an actuarial valuation as of July 1, 2020. At June 30, 2020, the Board's
proportional share was 0.142066% for the HIS Program. This was an increase of 0.002953%
from its proportionate share measured as of June 30, 2019.
301
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 13 - RETIREMENT PLAN - Continued
Retiree Health Insurance Subsidy (HIS Program) - Continued
For the year ended September 30, 2020, the Board's calculated total actuarially determined
pension expense was $1,039,417. Of this amount, the Board recognized $118,493 in the
enterprise funds and $18,190 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 $ 709,558 $ 13,381
experience
Changes in assumptions 1,865,193 1,008,604
Net difference between projected and actual
earnings on pension plan investments 13,849 -
Changes in proportion and differences between
Board contributions and proportionate share of
contributions 1,058,956 48,823
Board contributions subsequent to the
measurement date 196,428 -
Total
$ 3,843,984 $ 1,070,808
The deferred outflows of resources related to the HIS Program totaling $196,428 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, 2021. Other amounts
reported as deferred outflows of resources and deferred inflows of resources related to HIS
Program will be recognized in pension expense as follows:
Amount
Fiscal Year Ending September 30: Recognized
2021 $ 713,132
2022 528,986
2023 144,547
2024 335,649
2025 457,047
Thereafter 397,387
Total $ 2,576,748
302
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2020
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, 2020
actuarial valuation was determined using the following actuarial assumption, applied to all
periods included in the measurement:
Valuation date:
Measurement date:
Discount rate:
Long-term expected rate of return:
Municipal bond rate:
Inflation:
Salary increase:
Mortality:
Actuarial cost method:
July 1, 2020
June 30, 2020
2.21%
N/A
2.21%
2.40%
3.25%, average, including inflation
PUB -2010 base table, projected
generationally with Scale MP -2018
Individual Entry Age
The actuarial assumptions that determined the total HIS Program pension liability used in
the July 1, 2020 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 2020:
• The municipal rate used to determine the total pension liability decreased from 3.50% to
2.21%
• The mortality assumption was changed from Generational RP -2000 with Projection Scale
BB tables to the PUB -2010 base table, projected generationally with Scale MP -2018.
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.
303
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 13 - 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 2.21%. 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
(1.21)%
Current Discount 1% Increase
Rate (2.21%) (3.21)%
Board's proportionate share of NPL $ 20,051,247 $ 17,346,039 $ 15,131,834
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 (877) 377-1737 or (850) 488-5706.
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.
304
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 13 - RETIREMENT PLAN - Continued
FRS Investment Plan - Continued
Benefits Provided - Continued: For all membership classes, employees are immediately
vested in their own contributions and are vested after one year of service for employer
contributions and investment earnings. 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 wilt forfeit the
accumulated account balance. For fiscal year ended September 30, 2020, 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 2019-2020 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 $993,377 for fiscal
year ended September 30, 2020. Employee contributions totaled $233,124 for the same
period.
305
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2020
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 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, 2019 range from $295 for
single coverage Medicare participants to $1,167.50 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.
306
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 14 - 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.
307
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2020
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. Questions
regarding the OPEB Plan may be directed to the Finance Director.
At October 1, 2019, the date of the latest actuarial valuation, plan participation consisted
of:
Active participants 1,536
Retired participants 536
2,072
There are two classes of participants at October 1, 2019:
Regular and senior management 1,313
Special risk 759
2,072
Financial statements for the OPEB Trust are included in this report and can be found on
pages 260-261. A separate, stand-alone financial report is not issued by the Board; however,
the OPEB Trust investments can be found in Note 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 Board. For the year ended September 30, 2020, the Board
contributed $2.2 million to the qualifying OPEB Trust. The average employer's contribution
was $1,466 per employee, approximately 2.49% of current payroll. Plan members receiving
benefits contributed $2.6 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.
308
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 14 - OTHER POSTEMPLOYMENT BENEFITS PLAN (OPEB) - Continued
C. Net OPEB Liability
The County's Net OPEB liability was measured as of October 1, 2019 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, 2020,
were as follows:
Total OPEB liability $ 34,039,143
Plan fiduciary net position (32,654,503)
County's net OPEB liability $ 1,384,640
Plan fiduciary net position as a percentage of the total
OPEB liability 95.93%
D. Actuarial Methods and Assumptions
The total OPEB liability was determined by an actuarial valuation as of October 1, 2019,
using the following actuarial assumptions, applied to all periods included in the
measurement, unless otherwise specified:
Methods and Assumputions 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, 2018 actuarial valuation
of the Florida Retirement System. They are based on the results
of a statewide experience study covering the period 2008 through
2013
309
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 14 - OTHER POSTEMPLOYMENT BENEFITS PLAN (OPEB) - Continued
D.
Actuarial Methods and Assumptions - Continued
Healthcare Cost Trend Rates
Aging Factors
Expenses
Other Information:
Notes
Based on the Getzen Model, with trend starting at 6.5% and
gradually decreasing to an ultimate trend rate of 4.24%
(including the impact of the excise tax).
Based on the 2013 SOA Study "Health Care Costs -
"From Birth to Death".
Investment expenses are net of the investment returns;
Administrative expenses are included in the per capita
health costs.
There were no benefit changes during the year.
E. Changes in the Net OPEB Liability
Balances at 9/30/2019
Changes for the year:
Service cost
Interest
Contributions - employer
Net investment income
Experience
Assumptions
Benefit payments
Net changes
Balances at 9/30/2020
Increase(Decrease)
Total OPEB
Liability
(a)
$ 33,207,465
638,013
1,953,393
2,869,333
(2,051,215)
(2,577,846)
831,678
$ 34,039,143
310
Plan
Fiduciary
Net Position
(b)
$ 30,507,845
2,206,025
2,518,479
(2,577,846)
2,146, 658
$
Net OPEB
Liability
(a) -(b)
$ 2,699,620
638,013
1,953,393
(2,206,025)
(2,518,479)
2,869,333
(2,051,215)
(1,314,980)
32,654,503 $ 1,384,640
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 14 - OTHER POSTEMPLOYMENT BENEFITS PLAN (OPEB) - Continued
F. Discount Rate
Calculation of the Single Discount Rate
GASB Statement No. 74 includes a specific requirement for the discount rate that is used for
the purpose of the measurement of the Total OPEB Liability. This rate considers the ability
of the fund to meet benefit obligations in the future. To make this determination, employer
contributions, employee contributions, benefit payments, expenses and investment returns
are projected into the future. The Plan Net Position (assets) in future years can then be
determined and compared to its obligation to make benefit payments in those years. As long
as assets are projected to be on hand in a future year, the assumed valuation discount rate
is used. In years where assets are not projected to be sufficient to meet benefit 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 2.41%; 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%.
311
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 14 - OTHER POSTEMPLOYMENT BENEFITS PLAN (OPEB) - Continued
G. Sensitivity of Net OPEB Liability
Regarding the sensitivity of the net OPEB liability to changes in the SDR, the following
presents the plan's net OPEB liability, calculated using a SDR of 6.00%, as well as what the
plan's net OPEB liability would be if it were calculated using a SDR that is one percent lower
or 1% higher:
Sensitivity of Net OPEB Liability
to the Healthcare Cost Trend Rate Assumption
1% Decrease
(5.00%)
Current Single Discount
Rate Assumption
(6.00%)
1% Increase
(7.00%)
$ 3,857,389
$ 1,384,640 $(864,355)
Regarding the sensitivity of the net OPEB liability to changes in the healthcare cost trend
rates, the following presents the plan's net OPEB liability, calculated using the assumed
trend rates as well as what the plan's net OPEB liability would be if it were calculated using
a trend rate that is one percent lower or one percent higher:
Sensitivity of Net OPEB Liability
to the Healthcare Cost Trend Rate Assumption
1% Decrease
Current Healthcare
Cost
Trend Rate Assumption
1% Increase
(5.5% down to 3.24%) (6.5% down to 4.24%) (7.5% down to 5.24%)
$(1,321,106)
$ 1,384,640 $ 4,475,056
312
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 14 - OTHER POSTEMPLOYMENT BENEFITS (OPEB) - Continued
H. OPEB Expense and Deferred Outflows and Inflows of Resources Related to OPEB
For the year ended September 30, 2020, the Board recognized OPEB Expense of ($104,244).
At September 30, 2020, the Board 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 $ 4,395,837 $
Changes of assumptions
Net difference between projected and actual earnings on
OPEB plan investments
313
9,789,886
532,432 559,330
$ 4,928,269 $ 10,349,216
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 14 - 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:
Net Deferred
Year Ending Outflows
September 30 of Resources
2021 $ (876, 334)
2022 (876,334)
2023 (925,819)
2024 (1,070,305)
2025 (930,474)
Thereafter (741,681)
Total $ (5,420,947)
NOTE 15 - 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 $769,509 and lease expenditures
totaled $57,008 for the year ended September 30, 2020. 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
2021 $ 673,193
2022 593,244
2023 542,272
2024 493,475
2025 419,321
2026-2030 1,744,562
2031-2035 859,492
2036-2040 559,835
2041-2045 530,110
2046-2049 1,000
Total future minimum receipts: $ 6,416,504
314
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 15- 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 $32,314,621, and a carrying value of $20,205,277. Current year depreciation on
property being leased is $663,926.
B. Future Minimum Lease Payments
The following is a schedule, by years, of minimum future payments to be paid by the Board
for various noncancelable operating leases as of September 30, 2020:
Year Amount
2021 $ 30,168
2022 19,559
2023 19,559
2024 19,559
2025 19,559
2026-2030 7,500
2031-2035 7,500
2036-2040 5,400
2041-2045 4,500
2046-2050 3,600
2051-2055 2,400
2056-2060 1,500
2061-2065 1,500
2066-2070 1,500
2071-2075 300
Total future minimum lease payments: $ 144,104
315
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2020
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 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:
316
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 16 - FUND BALANCE - Continued
B. Fund Balance Policy - Continued
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.
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, 2020, reserve amounts for those funds were:
Budget
Disaster Relief Stabilization
Total
General Fund $ 7,650,000 $ 7,650,000 $ 15,300,000
Transportation Fund 950,000 950,000 1,900,000
Emergency Services District Fund 2,250,000 2,250,000 4,500,000
Total
$ 10,850,000 $ 10,850,000 $ 21,700,000
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.
317
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 16 - FUND BALANCE - Continued
C. Spending Hierarchy
For all governmental funds, when restricted, committed, assigned, and unassigned fund
balances are combined in a fund, qualified expenditures are paid first from restricted or
committed fund balance, as appropriate, then assigned and finally unassigned fund
balances.
D. Fund Balance Deficit
The Metropolitan Planning Organization Fund, a nonmajor Governmental Fund, had a deficit
in fund balance of $89,708 at September 30, 2020. This deficit will be eliminated by grant
proceeds in fiscal year 2021. The Jackie Robinson Training Complex Fund, a nonmajor
Governmental Fund, had a deficit in fund balance of $227,670 at September 30, 2020. This
deficit will be eliminated by tourist tax collections in future fiscal years.
NOTE 17 - 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 toss. Under this program, the Self Insurance Fund provides coverage as
follows:
Worker's Compensation
General Liability
Auto Liability
Property Damage
Error or Omissions
Annual Aggregate
10/01/15 to
9/30/2020
$ 650,000
200,000
200,000
200,000
200,000
2,000,000
318
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 17 - RISK MANAGEMENT - Continued
General Liability, Property, Worker's Compensation and Medical - Continued
All departments of the Board participate in the program. Payments are made by various
funds to the Self Insurance Fund based on past experience and actual estimates of the
amounts needed to pay current year claims. The Board has received workers compensation
reimbursements totaling $3,072 for fiscal year 2020, $41,832 for fiscal year 2019, and $1,685
for fiscal year 2018.
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.
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 medical claim reimbursements totaling
$1,022,187 for fiscal year 2020, $670,688 for fiscal year 2019, and $471,549 for fiscal year
2018.
The claims liability of $7,944,000 reported at September 30, 2020, 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, $2,649,000 will be liquidated over the next twelve months.
319
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 17 - RISK MANAGEMENT - Continued
General Liability, Property, Worker's Compensation and Medical - Continued
Changes in the fund's claims liability amount during the current and prior three fiscal years
are as follows:
Balance at Claims Balance
Fiscal Year and Changes Claims at Fiscal
Beginning in Estimates Payments Year End
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 26,495,950 (26,680,950) 8,254,000
2019-2020 8,254,000 23,627,530 (23,937,530) 7,944,000
Included in the charges to other funds is an amount to fund future catastrophic losses not
actuarially determined; and at September 30, 2020, unrestricted net position of $22,070,750
has been designated for this purpose.
320
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 18 - COMMITMENTS AND CONTINGENCIES
A. Litigation
The Board is involved in litigation regarding a zoning dispute and other matters, and may be
required to pay damages at a future date. While the ultimate amount of damages is
currently unknown, management has estimated that the amount is likely to equal or exceed
$3,917,250. 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, 2020. 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 the Courthouse renovations, Indian River Blvd. and 8th
Street signalization and intersection improvements, 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 intersection
improvements at State Road 60 and 43rd Avenue, 58th Avenue full depth reclamation
project, 43rd Avenue improvements from 18th Street to 26th Street, 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, Roseland elevated
storage tank conversion, pump station and water transmission main, and various other water
and sewer projects. In the Internal Service Funds, contracts are for benefit administration
services and GIS aerial imagery.
321
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 18 - COMMITMENTS AND CONTINGENCIES - Continued
B. Contracts and Other Commitments - Continued
A summary of these projects at September 30, 2020, is as follows:
Remaining
Total Total Paid as of Balance at
Contract Price September 30, 2020 September 30, 2020
General $ 3,338,260 $ (1,787,648) $ 1,550,612
Special Revenue 9,277,222 (6,408,159) 2,869,063
Capital Projects 35,577,950 (11,688,226) 23,889,724
Enterprise 18,858,071 (10,074,741) 8,783,330
Internal Service 583,391 (286,232) 297,159
Total $ 67,634,894 $ (30,245,006) $ 37,389,888
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.
322
Rehmann
EMPOWER YOUR PURPOSE
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 10, 2021
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, 2020, which collectively comprise the Board's fund
financial statements and have issued our report thereon dated_March 10, 2021.
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) as a basis for designing audit procedures that are appropriate in the
circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose
of expressing an opinion on the effectiveness of the Board's internal control. Accordingly, we do not express
an opinion on the effectiveness of the Board's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent, or detect and correct
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in
internal control such that there is a reasonable possibility that a material misstatement of the entity's
financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency
is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness,
yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material weaknesses
or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in
internal control that we consider to be material weaknesses. However, material weaknesses may exist that
have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Board's financial statements are free of material
misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts,
and grant agreements, noncompliance with which could have a direct and material effect on the financial
statements. 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.
H momber of
Rehmann is an independent member of Nexia International. 1exia
?n i�'rna[lanal
323
The Honorable Board of County Commissioners
Indian RiveCounty, Florida
March 10, 2021
Page 2
The results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and
the results of that testing, and not to provide an opinion on the effectiveness of the Board's internal control
or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the entity's internal control and compliance. Accordingly, this communication is not
suitable for any other purpose.
324
Zehmann
EMPOWER YOUR PURPOSE
MANAGEMENT LETTER
March 10, 2021
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, 2020, and have issued our report thereon dated March 10, 2021.
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 10, 2021,
should be considered in conjunction with this management letter.
Prior Audit Findings
Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective
actions have been taken to address findings and recommendations made in the preceding financial audit
report. There were no findings or recommendations in the preceding annual financial audit report.
Official Title and Legal Authority
Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority
for the primary government and each component unit of the reporting entity be disclosed in this management
letter, unless disclosed in the notes to the financial statements. This information is disclosed in the notes to
the financial statements.
Rehmann is an independent member of Nexia International.
R momber of
Nexia
°' ?n i�'rna[lanal
325
The Honorable Board of County Commissioners
Indian River County, Florida
March 10, 2021
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.
326
Zehmann
EMPOWER YOUR PURPOSE
INDEPENDENT ACCOUNTANTS' REPORT
March 10, 2021
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, 2020.
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, 2020.
Purpose of this Report
This report is intended solely for the information of management, the Board of County Commissioners and
the Florida Auditor General and is not intended to be and should not be used by anyone other than these
specified parties.
Rehmann is an independent member of Nexia International.
R member of
Neia
'sntnmatanal
327
328
CLERK OF THE CIRCUIT COURT AND COMPTROLLER
329
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EMPOWER YOUR PURPOSE
INDEPENDENT AUDITORS' REPORT
March 10, 2021
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 majorfund and the aggregate
remaining fund information of the Indian River County, Florida Clerk of Court (the ^Oerk").asofand
for the year ended September 30, 2020and the related notes to the financia 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, inop|ernentation, and maintenance of internal control relevant to the
preparation and fair presentation of financial statements that are free from material misstatement,
whether due to fraudor error.
Independent Auditors' Responsibility
Our responsibiiity 15 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 financiat statements
are free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disciosures in the financial statements. The procedures s&ected 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 drcunostances, 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 overail presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriatetoorovk1eabasis
for our audit opinion.
Rehmann is an independent member of Nexia International.
330
The Honorable Jeffrey R. Smith
Clerk of the Circuit Court and Comptroller
March 10, 2021
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, 2020 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, 2020, 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 10,
2021, 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.
331
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Balance Sheet
Governmental Funds
September 30, 2020
ASSETS
Cash
Accounts receivable
Prepaid items
Due from other governments
Total assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Due to other governments
Other deposits held in escrow
Unearned revenues
Total liabilities
Fund Balances:
Nonspendable:
Prepaid items
Restricted for:
Court -related costs and improvements
Unassigned
Total fund balances
General
Nonmajor Fund Total
Special Governmental
Revenue Funds
$ 681,806 $
62,933
54,885
45,158
1,064,842 $
106,508
19,637
1,746,648
62,933
161,393
64,795
$ 844,782 $
1,190, 987 $
2,035,769
$
137,485 $
304,890
185,109
217,298
34,528 $
179
14,580
172,013
305,069
199,689
217,298
844,782
49,287
894,069
54,885
(54,885)
106,508
1,035,192
161,393
1,035,192
(54,885)
1,141,700
1,141,700
Total liabilities fund balances $
844,782 $
1,190,987 $ 2,035,769
The accompanying notes are an integral part of the financial statements.
332
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, 2020
General
Nonmajor Fund Total
Special Governmental
Revenue Funds
REVENUES
Intergovernmental $ 257,261 $ - $ 257,261
Charges for services 3,155,865 516,826 3,672,691
Judgments, fines and forfeits 825,215 825,215
Interest 26,909 6,674 33,583
Miscellaneous 43,732 69,369 113,101
Total revenues 4,308,982 592,869 4,901,851
EXPENDITURES
General government 2,068,864 864,932 2,933,796
Court related 3,067,847 3,067,847
Total expenditures 5,136,711 864,932 6,001,643
Excess of revenues over
(under) expenditures (827,729) (272,063) (1,099,792)
OTHER FINANCING SOURCES (USES)
Transfers from Board of County Commissioners 1,090,651 - 1,090,651
Transfer to Board of County Commissioners (262,922) (262,922)
Total other financing sources (uses) 827,729 827,729
Net change in fund balances (272,063) (272,063)
Fund balances at beginning of year 1,413,763 1,413,763
Fund balances at end of year $ $ 1,141, 700 $ 1,141, 700
The accompanying notes are an integral part of the financial statements.
333
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, 2020
Variance with
Final Budget
Budgeted Amount Positive
Original Final Actual (Negative)
REVENUES
Intergovernmental $ 165,690 $ 165,690 $ 257,261 $ 91,571
Charges for services 3,254,048 2,970,107 3,155,865 185,758
Judgments, fines and forfeits 924,000 874,000 825,215 (48,785)
Interest 31,774 31,774 26,909 (4,865)
Miscellaneous 27,203 27,203 43,732 16,529
Total revenues 4,402,715 4,068,774 4,308,982 240,208
EXPENDITURES
General government 2,083,425 2,077,824 2,068,864 8,960
Court related 3,409,941 3,081,601 3,067,847 13,754
Total expenditures 5,493,366 5,159,425 5,136,711 22,714
Excess of revenues over
(under) expenditures (1,090,651) (1,090,651)
OTHER FINANCING SOURCES (USES)
Transfers from Board
of County Commissioners
Transfers to Board
of County Commissioners
Total other financing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
1,090,651
(827,729) 262,922
1,090,651 1,090,651
(262,922) (262,922)
1,090,651 1,090,651
827,729 (262,922)
$
$
The accompanying notes are an integral part of the financial statements.
334
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Statement of Fiduciary Net Position
Agency Fund
September 30, 2020
ASSETS
Cash
Total assets
$ 3,199, 765
$ 3,199, 765
LIABILITIES
Due to other governments $ 862,674
Escrow deposits 2,337,091
Total liabilities $ 3,199,765
The accompanying notes are an integral part of the financial statements.
335
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Notes To Financial Statements
Year Ended September 30, 2020
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.
336
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
Special Revenue Fund - The Special Revenue Fund accounts for the proceeds from recording
fees to be used for modernizing the Clerk's public records systems, subsidizing court -related
operational needs and program enhancements, and adding access to public records (by
charging a computer usage fee).
Fiduciary Fund
Agency Fund - The Agency Fund is used to account for assets held by the Clerk in a trustee
capacity or as an agent. These funds cannot be used to support the Clerk's own programs.
B. Basis of Accounting, Measurement Focus and Presentation
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. 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
May 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.
337
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
D. Cash
Cash reported on the financial statements includes bank deposits, cash on hand, certificates
of deposit, money market accounts, and all highly liquid investments with maturities of
ninety days or less when purchased.
E. Prepaid Items
This account represents prepayments for services that will be used in future periods. The
Clerk's policy is to record the expenditure for the services when they are used rather than
when the cash is disbursed.
F. Capital Assets
Acquisitions of equipment are recorded as expenditures at the time of purchase for
governmental fund financial statements. Tangible personal property used by the Clerk in
operations is reported in the financial statements of the County. Refer to the County -wide
note on capital assets for capitalization threshold, depreciation methodology and useful
lives.
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 $1,090,651.
338
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
. 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 $262,922 of excess fees was returned to the Board. This transfer is
included in the amount reported as Due to Other Governments on the balance sheet
Fund Balance
GASB Statement 54 - Fund Balance Reporting and Governmental Funds Type Definitions was
implemented as of October 1, 2009. The Statement requires the fund balance for
governmental funds to be reported in classifications that comprise a hierarchy based
primarily on the extent to which the government is bound to honor constraints on the
specific purposes for which amounts in those funds can be spent. Categories for fund
balance are as follows: nonspendable, restricted, committed, assigned, and unassigned. For
more information, see the County -wide note on fund balance.
NOTE 2 - CASH
A. Deposits
At September 30, 2020, the carrying value of the Clerk's deposits was $4,946,413 and the
bank balance was $4,930,858. 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 last updated on November 15, 2018.
339
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 2 - CASH - Continued
B. Deposit and Investment Policies - Continued
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 shalt 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.
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.
340
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Notes To Financial Statements
Year Ended September 30, 2020
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, 2020 were: regular class
10.00%, senior management class 27.29%, DROP class 16.98%, and elected official class
49.18%. 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.
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.
341
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 3 - PENSION PLAN - Continued
Florida Retirement System - Continued
For the year ended September 30, 2020, the Clerk's actuarial contribution to FRS under the
Pension Plan was $315,293 and the Health Insurance Subsidy (HIS Program) was $63,408.
Employee contributions for both plans were $89,072. Both employer and employee
contributions were equal to 100% of the required contribution for each year.
Pension Liabilities: At September 30, 2020, the Division of Retirement calculated the Clerk's
liability of $3,798,371 for the FRS plan and $1,329,164 for the HIS Program, for a total of
$5,127,535 for its proportionate share of the net pension liability. The net pension liability
was measured as of June 30, 2020, and the total pension liability used to calculate the net
pension liability was determined by an actuarial valuation as of July 1, 2020. 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, 2020, the Clerk's
proportion was .008764% for the FRS Pension Plan and .010886% for the HIS Program.
Discount Rate for Pension Plan: The discount rate used to measure the total pension
liability was 6.80%. 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.
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
6.80%. Also presented is what the Clerk's proportionate share of the FRS plan NPL would be
if it were calculated using a discount rate that is 1% lower or 1% higher than the current
rate:
1% Decrease (5.80%)
Clerk's proportionate
share of NPL $ 6,065,360
Current Discount
Rate (6.80%)
342
1% Increase (7.80%)
$ 3,798,371 $ 1,904,972
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 3 - PENSION PLAN - Continued
Florida Retirement System - Continued
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 2.21%. Also presented is
what the Clerk's proportionate share of the HIS Program NPL would be if it were calculated
using a discount rate that is 1% lower or 1% higher than the current rate:
1% Decrease (1.21%)
Clerk's proportionate
share of NPL $ 1,536,454
Current Discount
Rate (2.21%)
1% Increase (3.21%)
$ 1,329,164 $ 1,159, 498
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.
NOTE 4 - OTHER POSTEMPLOYMENT BENEFITS
The Clerk participated in the Indian River County Other Postemployment Benefits Trust
(OPEB Trust). The Clerk's 2020 annual contribution of $74,412 was funded by: the Board of
County Commissioners in the amount of $12,402; non -court operations in the amount of
$57,240; and special revenue funds in the amount of $4,770. 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.
343
Indian River County, Florida
Clerk of the Circuit Court and Comptroller
Notes To Financial Statements
Year Ended September 30, 2020
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 $706,834. 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, 2020:
Beginning Ending
Balance Balance
10/01 /19 Additions Deletions 9/30/20
Accrued Compensated Absences $ 271,395 $ 349,050 $ 295,561 $ 324,884
Of the $324,884 liability for accrued compensated absences, management estimates that
$40,000 will be due and payable within one year. The long-term liabilities are not reported
in the financial statements of the Clerk since they are not payable from available spendable
resources. They are reported in the financial statements of the County by the fund which
normally pays the personnel service costs of the employee.
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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 10, 2021
The Honorable Jeffrey R. Smith
Clerk of the Circuit Court and Comptroller
Indian River Clerk, Florida
We have audited, in accordance with the auditing standards generally accepted in the United States
of America and the standards applicable to financial statements contained in Government Auditing
Standards issued by the Comptroller General of the United States, the fund financial statements of
the major fund and the aggregate remaining fund information of the Indian River County, Florida
Clerk of Court (the "Clerk"), as of and for the year ended September 30, 2020, which collectively
comprise the Clerk's fund financial statements and have issued our report thereon dated March 10,
2021.
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) as a basis for designing audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the Clerk's
internal control. Accordingly, we do not express an opinion on the effectiveness of the Clerk's
internalcontrol.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent,
or detect and correct misstatements on a timely basis. A 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.
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The Honorable Jeffrey R. Smith
Clerk of the Circuit Court and Comptroller
March 10, 2021
Page 2
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 financial statements. 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 GovernmentAuditingStandards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
Clerk's internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the entity's internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
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MANAGEMENT LETTER
March 10, 2021
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, 2020, which collectively comprise the Clerk's fund financial statements and have
issued our report thereon dated March 10, 2021.
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 10, 2021, should be considered in conjunction
with this management letter.
Prior Audit Findings
Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not
corrective actions have been taken to address findings and recommendations made in the preceding
annual financial audit report. There were no findings or recommendations in the preceding annual
financial audit report.
Official Title and Legal Authority
Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal
authority for the primary government and each component unit of the reporting entity be disclosed
in this management letter, unless disclosed in the notes to the financial statements. This information
is disclosed in the notes to the financial statements.
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347
The Honorable Jeffrey R. Smith
Clerk of the Circuit Court and Comptroller
March 10, 2021
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.
348
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INDEPENDENT ACCOUNTANTS' REPORT
March 10, 2021
The Honorable Jeffrey R. Smith
Clerk of the Circuit Court and Comptrotler
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, 2020.
Management's Responsibility
Management is responsible for comptiance with those requirements.
t 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
compiiarice with specified requirements.
Opinion
In our opinion, the Clerk complied, in all material respects, with the aforementioned requirements
for the year ended September 30, 2020.
Purpose of this Report
This report 15 intended solely for the information of management, the Cterk, the Board of County
Commissioners and the Florida Auditor General and is not intended to be and should not be used
by anyone other than these specified parties.
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INDEPENDENT AUDITORS' REPORT
March 10, 2021
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, 2020, and the related notes to the financial statements, which collectively comprise
the Property Appraiser's fund financial statements as listed in the table ofcontents.
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 fraudor error.
Independent Auditors' Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free of
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the financial statements. The procedures selected depend on the auditors' judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity's
preparation and fair presentation of the financial statements in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation
of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
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352
The Honorable Wesley Davis
Property Appraiser
March 10, 2021
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, 2020, 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, 2020, 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 10,
2021, 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.
353
Indian River County, Florida
Property Appraiser
Balance Sheet
General Fund
September 30, 2020
ASSETS
Cash $ 285,309
Accounts receivable 1,553
Prepaid items 47,772
Total assets $ 334,634
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ 136,646
Due to other governments 197,988
Total liabilities 334,634
Fund Balances:
Nonspendable:
Prepaid items 47,772
Unassigned (47,772)
Total fund balances
Total liabilities and fund balances $ 334,634
The accompanying notes are an integral part of the financial statements.
354
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, 2020
Variance
with Final
Budget
Budgeted Amount Positive
Original Final Actual (Negative)
REVENUES
Charges for services $ 4,128,520 $ 4,129,692 $ 4,129,729 $ 37
Interest 5,975 5,975
Miscellaneous 7,083 7,083
Total revenues 4,128,520 4,129,692 4,142,787 13,095
EXPENDITURES
Current:
General government 4,128,520 4,129,692 3,959,471 170,221
Debt Service:
Principal 3,314 (3,314)
Interest and fiscal charges 279 (279)
Total expenditures 4,128,520 4,129,692 3,963,064 166,628
Excess of revenues over
(under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers to Board of
County Commissioners
Total other financing uses
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
179,723 179,723
(179,723) (179,723)
(179,723) (179,723)
$
$ - $
$
The accompanying notes are an integral part of the financial statements.
355
Indian River County, Florida
Property Appraiser
Notes To Financial Statements
Year Ended September 30, 2020
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
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. 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.
356
Indian River County, Florida
Property Appraiser
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
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.
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 $197,988 at September 30, 2020, and are included as due to other
governments on the balance sheet. Of this amount, $179,723 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.
357
Indian River County, Florida
Property Appraiser
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
G. Fund Balance
GASB Statement 54 - Fund Balance Reporting and Governmental Funds Type Definitions was
implemented as of October 1, 2009. This Statement requires the fund balance for
governmental funds to be reported in classifications that comprise a hierarchy based
primarily on the extent to which the government is bound to honor constraints on the
specific purposes for which amounts in those funds can be spent. Categories for fund
balance are as follows: nonspendable, restricted, committed, assigned, and unassigned. For
more information, see the County -wide note on fund balance.
NOTE 2 - CASH
Deposits
At September 30, 2020, the carrying amount of the Property Appraiser's deposits was
$285,309 and the bank balance was $340,150. 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, 2020 were: regular class
10.00%, senior management class 27.29%, DROP class 16.98%, and elected official class
49.18%. Included in these rates is a health insurance subsidy of 1.66%.
358
Indian River County, Florida
Property Appraiser
Notes To Financial Statements
Year Ended September 30, 2020
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 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, 2020, the Property Appraiser's actuarial contributions to
FRS under the Pension Plan were $261,507 and the Health Insurance Subsidy (HIS Program)
were $38,471. Employee contributions were $62,327. Both employer and employee
contributions were equal to 100% of the required contribution for each year.
359
Indian River County, Florida
Property Appraiser
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 3 - PENSION PLAN - Continued
Pension Liabilities: At September 30, 2020, the Division of Retirement calculated the
Property Appraiser's liability of $3,300,157 for the FRS plan and $808,950 for the HIS
Program, for a total of $4,109,107 for its proportionate share of the net pension liability.
The net pension liability was measured as of June 30, 2020, and the total pension liability
used to calculate the net pension liability was determined by an actuarial valuation as of
July 1, 2020. 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, 2020, the Property Appraiser's proportion was .007614% for
the FRS Pension Plan and .006625% for the HIS Program.
Discount Rate for Pension Plan: The discount rate used to measure the total pension
liability was 6.80%. The projection of cash flows used to determine the discount rate
assumed that plan member contributions will be made at the current contribution rate and
that the Property Appraiser's contributions will be made at statutorily required rates,
actuarially determined. Based on those assumptions, the pension plans' fiduciary net
position was projected to be available to make all projected future benefit payments of
current active and inactive employees. Therefore, the long-term expected rate of return on
pension plan investments was applied to all periods of projected benefit payments to
determine the total pension liability.
Sensitivity of the Property Appraiser's Proportionate Share of the Net Position Liability to
Changes in the Discount Rate for the Pension Plan: The following presents the Property
Appraiser's proportionate share of the Net Pension Liability (NPL) of the Pension Plan
calculated using the discount rate of 6.80%. 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
(5.80%)
Property Appraiser 's proportionate
share of NPL $ 5,269,796
Current Discount
Rate (6.80%)
1% Increase
(7.80%)
$ 3,300,157 $ 1,655,106
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.
360
Indian River County, Florida
Property Appraiser
Notes To Financial Statements
Year Ended September 30, 2020
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 HIS Program: The following presents the Property
Appraiser's proportionate share of the NPL of the HIS Program calculated using the discount
rate of 2.21%. Also presented is what the Property Appraiser's proportionate share of the
HIS Program NPL would be if it were calculated using a discount rate that is 1% lower or 1%
higher than the current rate:
1% Discount
(1.21%)
Property Appraiser's
proportionate share of NPL $ 935,110
Current Discount
Rate (2.21%)
1% Increase
(3.21%)
$ 808,950 $ 705,688
Refer to the County -wide note for actuarial assumptions (including the investment rate of
return), pension liability on financial statements, and an explanation of pension expense
components. The pension liability is not reported in the financial statements of the
Property Appraiser since they are not payable from available spendable resources. It is
reported in the financial statements of the County by the fund which normally pays the
personnel service costs of the employee.
NOTE 4 - OTHER POSTEMPLOYMENT BENEFITS
The Property Appraiser participated in the Indian River County Other Postemployment
Benefits Trust (OPEB Trust). The Property Appraiser's 2020 annual contribution of $37,206
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 2020 at an annual cost of approximately $370,571.
Further details on the self-insurance program are discussed in the County -wide financial
statements and County notes.
361
Indian River County, Florida
Property Appraiser
Notes To Financial Statements
Year Ended September 30, 2020
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 /19 Additions Deletions 9/30/2020
Accrued Compensated Absences $ 64,682 $ 266,279 $ 156,680 $ 174,281
Of the $174,281 liability for accrued compensated absences, management estimates that
$22,000 will be due and payable within one year. The tong -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.
NOTE 7 - OPERATING LEASES
The Property Appraiser has entered into a noncancelable operating lease as lessee for office
space. Lease expenditures totaled $12,000 for the fiscal year ended September 30, 2020.
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
2021 $ 12,120
2022 12,240
2023 6,120
Future minimum lease payments $ 30,480
362
Indian River County, Florida
Property Appraiser
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 8 - CAPITAL LEASES
The Property Appraiser has entered into a noncancelable capital lease for a backup
computer system. Assets acquired under this tease totaled $20,855 for the fiscal year ended
September 30, 2020.
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
2021 $ 3,592
2022 3,592
2023 3,592
2024 1,796
Future minimum lease payments $ 12,572
363
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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 10, 2021
The Honorable Wesley Davis
Property Appraiser
lndian 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 PropertyAppraiser (the "Property Appraiser"), as
of and for the year ended September 30, 2020. which collectively comprise the Property
Appraiser's fund financial statements and have issued our report thereon dated March 10, 2021.
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) as a basis for designing 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 controexists 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 siificant deficiency is a deficiency, or a combination of deficiencies, in
internal control that is less severe than a material vveakness, 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 beenidentified.
Rehmann is an independent member of Nexia International.
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364
The Honorable Wesley Davis
Property Appraiser
March 10, 2021
Page 2
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Property Appraiser's financial
statements are free of material misstatement, we performed tests of its compliance with certain
provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could
have a direct and material effect on the financial statements. 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.
365
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�����������w�����
EMPOWER YOUR PURPOSE
MANAGEMENT LETTER
March 10, 2021
The Honorable Wesley Davis
Property Appraiser
Indian River County, Florida
Report on the Financial Statements
We have audited the fund financial statements of the mjor fund of the Indian River County, Florida
PropertyAppraiser (the "Property Appraiser"), as of and for the year ended September 30, 2020, which
collectively comprise the Property Appraiser's fund financial statements and have issued our report
thereon dated March 1O.2O21.
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 lndependent Auditors' Report on lnternal Control over Financial Reportingand
on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in
Accordance with Government AStandards; and Independent Accountants' Report on an
examination conducted in accordance with AICPA Professional Standards, ATC Section 315, regarding
compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General.
Oisc|osuresinthosereports.vvhicharedatedK4archlO.2O21.shou|dbeconsideredinco 'unction
with this management letter.
Prior Audit Findings
Section 20.554(1)(U1` 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 20.554(1)0)4L 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 nehm°""is""independent member mwexiaInternational. Nexia
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366
The Honorable Wesley Davis
Property Appraiser
March 10, 2021
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)(1)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.
367
Rehmann
EMPOWER YOUR PURPOSE
INDEPENDENT ACCOUNTANTS' REPORT
March 10, 2021
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, 2020.
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, 2020.
Purpose of this Report
This report is intended solely for the information of management, the Property Appraiser, the Board
of County Commissioners and the Florida Auditor General and is not intended to be and should not be
used by anyone other than these specified parties.
Rehmann is an independent member of Nexia International.
R member of
Nexi
'sntnrrianarial
368
369
Rehmann
EMPOWER YOUR PURPOSE
INDEPENDENT AUDITORS' REPORT
March 10, 2021
The Honorable Eric Flowers
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, 2020, 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.
mamber of
Rehmann is an independent member of Nexia International. Jexia
?Iliernat Qfldl
370
The Honorable Eric Fiowers
Sheriff
March 10, 2021
Page2
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, 2020, and the respective changes
in finaricial 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, 2020, 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 6wGovernment Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March 10,
2021, 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
internai control over financial reporting and compiiance.
371
L LC
ASSETS
Cash
Accounts receivable
Inventories
Total assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Due to other governments
Unearned revenues
Total liabilities
Fund Balances:
Nonspendabte:
Inventories
Restricted for:
Law enforcement/public safety
Committed to:
Law enforcement/public safety
Assigned to:
Law enforcement/public safety
Unassigned
Total fund balances
Total liabilities and fund balances
Indian River County, Florida
Sheriff
Balance Sheet
Governmental Funds
September 30, 2020
General
Nonmajor
Fund
Special
Revenue
Total
Governmental
Funds
$ 2,763,866 $
121,507
166,414
$
3,051,787
$
2,402,464 $
380,692
22,251
$ 2,805,407 $
5,166, 330
502,199
188,665
2,538,220 $
509,167
4,400
3,051,787
166,414
(166,414)
$
5,857,194
164,842 $ 2,703,062
21,890 531,057
4,400
186,732 3,238,519
22,251
2,373,334
76,921
146,169
188,665
2,373,334
76,921
146,169
(166,414)
2,618,675 2,618,675
3,051,787 $ 2,805,407 $ 5,857,194
The accompanying notes are an integral part of the financial statements.
372
Indian River County, Florida
Sheriff
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended September 30, 2020
REVENUES
Intergovernmental
Charges for services
Judgments, fines and forfeits
Interest
Miscellaneous
Total revenues
General
$
Nonmajor
Fund
Special
Revenue
$ 340,126
312,874
45,562
50
96,398 538,523
Total
Governmental
Funds
$ 340,126
312,874
45,562
50
634,921
96,398 1,237,135 1,333,533
EXPENDITURES
Public safety 50,941,067
Court related 2,453,732
Totat expenditures 53,394,799
Excess of revenues over
(under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers from Board of County Commissioners
Transfers to Board of County Commissioners
Total other financing sources
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
1,015,383
1,015,383
(53,298,401)
53,807,568
(509,167)
51,956,450
2,453,732
54, 410,182
221,752 (53,076,649)
180,000 53,987,568
(21,890) (531,057)
53,298,401
158,110 53,456,511
379,862 379,862
2,238,813 2,238,813
$
$
2,618,675 $ 2,618,675
The accompanying notes are an integral part of the financial statements.
373
REVENUES
Miscellaneous
Total revenues
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, 2020
Variance
with Final
Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
$
$ 96,398 $ 96,398 $
96,398 96,398
EXPENDITURES
Public safety 51,125,799 51,318,107 50,941,067 377,040
Court related 2,576,887 2,551,969 2,453,732 98,237
Total expenditures 53,702,686 53,870,076 53,394,799 475,277
Excess of revenues over
(under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers from Board
of County Commissioners
Transfers to Board
of County Commissioners
Total other financing sources
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
(53,702,686) (53,773,678) (53,298,401) 475,277
53,702,686 53,773,678 53,807,568 33,890
(509,167) (509,167)
53,702,686 53,773,678 53,298,401 (475,277)
$
$
The accompanying notes are an integral part of the financial statements.
374
Indian River County, Florida
Sheriff
Statement of Fiduciary Net Position
Agency Fund
September 30, 2020
ASSETS
Cash $ 34,294
Total assets $ 34,294
LIABILITIES
Escrow deposits $ 34,294
Total liabilities $ 34,294
The accompanying notes are an integral part of the financial statements.
375
Indian River County, Florida
Sheriff
Notes To Financial Statements
Year Ended September 30, 2020
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. Alt 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.
376
Indian River County, Florida
Sheriff
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
B. Basis of Accounting, Measurement Focus and Presentation
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. 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. The fiduciary fund is reported on an
accrual basis.
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, alt general fund revenues in excess of expenditures as
of year-end are owed to the Board of County Commissioners. The September 30, 2020
amount totaled $531,057 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.
377
Indian River County, Florida
Sheriff
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
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.
NOTE 2 - CASH
Deposits
At September 30, 2020, the carrying amount of the Sheriff's deposits was $5,200,624 and
the bank balance was $5,965,264. Alt 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
10/01/19 Additions Deletions 09/30/20
Equipment $ 29,835,561 $ 4,441,087 $ 1,582,218 $ 32,694,430
Refer to the County -wide note on capital assets for capitalization threshold, depreciation
methodology and useful lives.
378
Indian River County, Florida
Sheriff
Notes To Financial Statements
Year Ended September 30, 2020
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 taw enforcement
gear, miscellaneous clothing and store items.
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, 2020 were: regular class
10.00%, special risk 24.45%, senior management class 27.29%, DROP class 16.98%, and
elected official class 49.18%. 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.
379
Indian River County, Florida
Sheriff
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 5 - 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, 2020, the Sheriffs actuarial contributions to FRS under
the Pension Plan were $4,761,856 and the HIS Program were $463,347. Employee
contributions were $779,971. Both employer and employee contributions were equal to 100%
of the required contribution for each year.
Pension Liabilities: At September 30, 2020, the Division of Retirement calculated the
Sheriffs liability of $62,152,636 for the FRS plan and $9,758,063 for the HIS Program, for a
total of $71,910,699 for its proportionate share of the net pension liability. The net pension
liability was measured as of June 30, 2020, and the total pension liability used to calculate
the net pension liability was determined by an actuarial valuation as of July 1, 2020. The
Sheriffs proportion of the net pension liability was based on a projection of the Sheriffs
long-term share of contributions to the Pension Plan relative to the projected contributions
of all participating employers, actuarially determined. At September 30, 2020, the Sheriffs
proportion was .143402% for the FRS Pension Plan and .079920% for the HIS Program.
Discount Rate for Pension Plan: The discount rate used to measure the total pension
liability was 6.80%. The projection of cash flows used to determine the discount rate
assumed that plan member contributions will be made at the current contribution rate and
that the Sheriffs contributions will be made at statutorily required rates, actuarially
determined. Based on those assumptions, the Pension Plans' fiduciary net position was
projected to be available to make all projected future benefit payments of current active
and inactive employees. Therefore, the long-term expected rate of return on pension plan
investments was applied to all periods of projected benefit payments to determine the total
pension liability.
380
Indian River County, Florida
Sheriff
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 5 - PENSION PLAN - Continued
Florida Retirement System - Continued
Sensitivity of the Sheriffs Proportionate Share of the Net Position Liability to Changes in
the Discount Rate for the Pension Plan: The following presents the Sheriffs proportionate
share of the net pension liability (NPL) of the Pension Plan calculated using the discount
rate of 6.80%. Also presented is what the Sheriffs proportionate share of the FRS plan NPL
would be if it were calculated using a discount rate that is 1% lower or 1% higher than the
current rate:
1% Decrease (5.80%)
Sheriffs proportionate
share of NPL $ 99,247,315
Current Discount
Rate (6.80%)
1% Increase (7.80%)
$ 62,152, 636 $ 31,170, 999
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 Sheriffs Proportionate Share of the Net Position Liability to Changes in
the Discount Rate for the HIS Program: The following presents the Sheriffs proportionate
share of the NPL of the HIS Program calculated using the discount rate of 2.21%. Also
presented is what the Sheriffs proportionate share of the HIS Program NPL would be if it
were calculated using a discount rate that is 1% lower or 1% higher than the current rate:
1% Decrease (1.21%)
Sheriffs proportionate
share of NPL $ 11,279,885
Current Discount
Rate (2.21%)
1% Increase (3.21%)
$ 9,758,063 $ 8,512,455
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.
381
Indian River County, Florida
Sheriff
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 6 - OTHER POSTEMPLOYMENT BENEFITS
The Sheriff participated in the Indian River County Other Postemployment Benefits Trust
(OPEB Trust). The Sheriff's 2020 annual contribution of $904,536 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 2020 at an annual cost of approximately $4,522,596. Further
details on this self-insurance program are disclosed in the County -wide financial statements
and County notes.
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, 2020:
Beginning Ending
Balance Balance
10/01/19 Additions Deletions 09/30/20
Accrued Compensated Absences $ 7,868,050 $ 4,491,064 $ 3,563,709 $ 8,795,405
Of the $8,795,405 liability for accrued compensated absences, management estimates that
$3,562,761 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.
382
Indian River County, Florida
Sheriff
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 9 - OPERATING LEASES
The Sheriff has entered into noncancelable operating leases as Lessee of a building, hangar,
mail machine, and copiers. Lease expenditures totaled $86,972 for the year ended
September 30, 2020.
The following is a schedule by years of minimum future lease payments to be paid by the
Sheriff for noncancelable operating leases as of September 30:
Year Amount
2021 $ 84,028
Total Future Minimum Lease Payments $ 84,028
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.
383
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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 10, 2021
The Honorable Eric Flowers
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, 2020, which
collectively comprise the Sheriff's fund financial statements and have issued our report thereon
dated March 10, 2021.
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) as a basis for designing audit procedures
that are appropriate in the circumstances for the purpose of expressing our opinions on the
financial statements, but not for the purpose of expressing an opinion on the effectiveness of the
Sheriff's internal control. Accordingly, we do not express an opinion on the effectiveness of the
Sheriff's internalcontrol.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to
prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency,
or a combination of deficiencies, in internal control such that there is a reasonable possibility that a
material misstatement of the entity's financial statements will not be prevented, or detected and
corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies,
in internal control that is less severe than a material weakness, yet important enough to merit
attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph
of this section and was not designed to identify all deficiencies in internal control that might be
material weaknesses or significant deficiencies. Given these limitations, during our audit we did
not identify any deficiencies in internal control that we consider to be material weaknesses.
However, material weaknesses may exist that have not been identified.
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384
The Honorable Eric Flowers
Sheriff
March 10, 2021
Page 2
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 financial statements. 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 GovernmentAuditingStandards.
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.
385
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MANAGEMENT LETTER
March 10, 2021
The Honorable Eric Flowers
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, 2020, which collectively comprise the Sheriff's fund financial statements and have
issued our report thereon dated March 10, 2021.
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 10, 2021, should be considered in
conjunction with this management letter.
Prior Audit Findings
Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not
corrective actions have been taken to address findings and recommendations made in the
preceding annual financial audit report. There were no findings or recommendations in the
preceding annual financial audit report.
Official Title and Legal Authority
Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and
legal authority for the primary government and each component unit of the reporting entity be
disclosed in this management letter, unless disclosed in the notes to the financial statements. This
information is disclosed in the notes to the financial statements.
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386
The Honorable Eric Fiowers
Sheriff
March 10, 2021
Page2
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 grarit agreements, or abuse, that have occurred, or are 1 ikely 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
387
388
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INDEPENDENT AUDITORS' REPORT
March 10, 2021
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, 2020, 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.
H member of
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390
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, 2020, 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, 2020, 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 10,
2021, 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.
391
Indian River County, Florida
Supervisor of Elections
Balance Sheet
Governmental Funds
September 30, 2020
General
Nonmajor
Fund
Total
Special Governmental
Revenue Funds
ASSETS
Cash $ 28,220 $ 83,988 $ 112,208
Prepaid items 103,867 103,867
Total assets $ 132,087 $ 83,988 $ 216,075
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ 85,863 $ $ 85,863
Due to other governments 46,224 46,224
Unearned revenues 83,444 83,444
Total liabilities 132,087 83,444 215,531
Fund Balances:
Nonspendable:
Prepaid items 103,867 - 103,867
Restricted for:
Voting/election activities 544 544
Unassigned (103,867) (103,867)
Total fund balances 544 544
Total liabilities and fund balances
$ 132,087 $ 83,988 $ 216,075
The accompanying notes are an integral part of the financial statements.
392
Indian River County, Florida
Supervisor of Elections
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended September 30, 2020
REVENUES
Intergovernmental
Charges for services
Interest
Miscellaneous
Total revenues
EXPENDITURES
General government
Total expenditures
General
Nonmajor
Fund Total
Special Governmental
Revenue Funds
$
10,831
105,518
192,293 $ 192,293
10,831
266 266
105,518
116,349
1,672,787
192,559 308,908
199,861 1,872,648
1,672,787
199,861 1,872,648
Excess of revenues over
(under) expenditures (1,556,438) (7,302) (1,563,740)
OTHER FINANCING SOURCES (USES)
Transfers from Board of County Commissioners 1,607,569 1,607,569
Transfers from other funds - 4,907 4,907
Transfers to Board of County Commissioners (46,224) (46,224)
Transfers to other funds (4,907) (4,907)
Total other financing sources (uses) 1,556,438 4,907 1,561,345
Net change in fund balances (2,395) (2,395)
Fund balances at beginning of year 2,939 2,939
Fund balances at end of year $ - $ 544 $ 544
The accompanying notes are an integral part of the financial statements.
393
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, 2020
Variance
with Final
Budget
Budgeted Amount Positive
Original Final Actual (Negative)
REVENUES
Charges for services $ $
Miscellaneous
Total revenues
EXPENDITURES
General government
Total expenditures
Excess of revenues over
(under) expenditures
- $ 10,831 $ 10,831
105,518 105,518
105,518 116,349 10,831
1,607,569 1,708,180 1,672,787 35,393
1,607,569 1,708,180 1,672,787 35,393
(1,607,569) (1,602,662) (1,556,438) 46,224
OTHER FINANCING SOURCES (USES)
Transfers from Board of County
Commissioners 1,607, 569 1,607, 569 1,607, 569
Transfers to Board of County
Commissioners (46,224) (46,224)
Transfers to other funds (4,907) (4,907)
Total other financing sources (uses) 1,607,569 1,602,662 1,556,438 (46,224)
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.
394
Indian River County, Florida
Supervisor of Elections
Notes To Financial Statements
Year Ended September 30, 2020
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 State and Federal grant
proceeds and matching funds from the County. These funds are legally restricted for voter
education and poll worker recruitment and training, cybersecurity, safety at polling
locations, and other election related activities.
B. Basis of Accounting, Measurement Focus and Presentation
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. 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.
395
Indian River County, Florida
Supervisor of Elections
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
C. Budgetary Requirements
State statutes require the Supervisor of Elections to submit a proposed budget to the Board
of County Commissioners by May 1 of each year. After review and approval of the budget by
the Board, the Supervisor or Elections is authorized to transfer budgeted amounts between
objects and departments as long as it does not exceed the total appropriations approved by
the Board. Increases in the total budget are subject to the review and approval of the
Board.
The budgeted revenues and expenditures in the accompanying financial statements reflect
all amendments approved by the Board of County Commissioners. The budget is prepared on
a basis consistent with generally accepted accounting principles.
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.
396
Indian River County, Florida
Supervisor of Elections
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
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 $46,224 and was reported as a transfer to the Board of County
Commissioners. These transfers are also reflected as due to other governments on the
balance sheet.
I. Fund Balance
GASB Statement 54 - Fund Balance Reporting and Governmental Funds Type Definitions was
implemented as of October 1, 2009. This Statement requires the fund balance for
governmental funds to be reported in classifications that comprise a hierarchy based
primarily on the extent to which the government is bound to honor constraints on the
specific purposes for which amounts in those funds can be spent. Categories for fund
balance are as follows: nonspendable, restricted, committed, assigned, and unassigned. For
more information, see the County -wide note on fund balance.
NOTE 2 - CASH
Deposits
At September 30, 2020, the carrying amount of the Supervisor of Elections' deposits was
$112,208, and the bank balance was $140,118. 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.
397
Indian River County, Florida
Supervisor of Elections
Notes To Financial Statements
Year Ended September 30, 2020
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, 2020 were: regular class
10.00%, senior management class 27.29%, DROP class 16.98%, and elected official class
49.18%. Included in these rates is a health insurance subsidy of 1.66%.
Employees elect participation in either the defined benefit plan (Pension Plan) or the
defined contribution plan (Investment Plan). If the employee enrolled in the FRS prior to
July 1, 2011, normal retirement is age 62 with 6 years of service or 30 years of service,
regardless of age. If the employee enrolled in the FRS on or after July 1, 2011, normal
retirement is age 65 with 8 years of service or 33 years of service, regardless of age.
Under the Pension Plan, early retirement is available before reaching normal retirement age
and will be subject to an early-retirement reduction of 5% for each year your age at
retirement is under your normal retirement age. For those employees who elect
participation in the Investment Plan rather than the Pension Plan, vesting occurs after one
year of service. Participants have access to the full value of their vested account balance
when they leave FRS employment, regardless of age. These participants receive a defined
contribution for self-direction in an investment product with a third party administrator
selected by the State Board of Administration.
Benefits Provided: Retirement benefits are determined by age, years of service, the average
of the highest 5 or 8 fiscal years of pay, membership class and the payment option selected
at retirement. For further information concerning the Florida Retirement System and
contribution rates, please read the County -wide note on pension plans.
Contributions: Employer contributions to the FRS are based on a percentage of covered
payroll that has been actuarially determined as an amount, when combined with employee
contributions, is expected to finance the cost of benefits earned by employees during the
year with an additional amount to finance any unfunded accrued liability.
398
Indian River County, Florida
Supervisor of Elections
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 3 - PENSION PLAN - Continued
Florida Retirement System - Continued
For the year ended September 30, 2020, the Supervisor of Elections' actuarial contribution
to FRS under the Pension Plan were $100,396 and the HIS Program were $10,596. Employee
contributions were $17,264. Both employer and employee contributions were equal to 100%
of the required contribution for each year.
Pension Liabilities: At September 30, 2020, the Division of Retirement calculated the
Supervisor of Elections' liability of $1,207,019 for the FRS plan and $204,981 for the HIS
Program, for a total of $1,412,000 for its proportionate share of the net pension liability.
The net pension liability was measured as of June 30, 2020, and the total pension liability
used to calculate the net pension liability was determined by an actuarial valuation as of
July 1, 2020. 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, 2020, the Supervisor of Elections' proportion was
.002785% for the FRS Pension Plan and .001679% for the HIS Program.
Discount Rate for Pension Plan: The discount rate used to measure the total pension
liability was 6.80%. 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 wilt 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 6.80%. 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
(5.80%)
Supervisor of Elections's
proportionate share of NPL $ 1,927,407
399
Current Discount
Rate (6.80%)
1% Increase
(7.80%)
$ 1,207,019 $ 605,348
Indian River County, Florida
Supervisor of Elections
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 3 - PENSION PLAN - Continued
Florida Retirement System - Continued
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 2.21%. 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
(1.21%)
Supervisor of Election's
proportionate share of NPL $ 236,949
Current Discount
Rate (2.21%)
1% Increase
(3.21%)
$ 204,981 $ 178,815
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 2020 annual contribution of $8,586
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.
400
Indian River County, Florida
Supervisor of Elections
Notes To Financial Statements
Year Ended September 30, 2020
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 2020 at an annual cost of approximately $79,974.
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, 2020:
Beginning Ending
Balance Balance
10/1/2019 Additions Deletions 9/30/2020
Accrued Compensated Absences $ 16,939 $ 33,050 $ 13,193 $ 36,796
Of the $36,796 liability for accrued compensated absences, management estimates that
$13,778 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.
NOTE 7 - OPERATING LEASES
The Supervisor of Elections has entered into noncancelable operating leases as lessee for a
mail machine and ballot equipment. Lease expenditures totaled $3,648 for the year ended
September 30, 2020. The following is a schedule by years of minimum future lease payments
to be paid by the Supervisor of Elections for the noncancelable operating leases as of
September 30:
Year Amount
2021 $ 4,068
2022 2,274
2023 480
2024 480
Total Future Minimum Lease Payments $ 7,302
401
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EMPOWER YOUR PURPOSE
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 10, 2021
The Honorable Lesile Swan
Supervisor of Electioris
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,
2020, which collectively comprise the Supervisor of Elections' fund financial statements and have
issued our report thereon dated March 10,2021.
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) as a basis for designing 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 controexists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent,
or detect and correct misstatements on a timely basis. A materia! weakness is a deficiency, or a
combination of deficiencies, in internal control such that there is a reasonable possibility that a
material misstatement of the entity's financial statements will not be prevented, or detected and
corrected on a timely basis. A siificant deficiency is a deficiency, or a combination of deficiencies, in
internal control that is less severe than a material vveakness, 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 beenidentified.
Rehmann is an independent member of Nexia International.
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402
The Honorable Leslie Swan
Supervisor of Elections
March 10, 2021
Page 2
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 material effect on the financial statements. 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 GovernmentAuditingStandards.
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.
403
Rehmann
EMPOWER YOUR PURPOSE
MANAGEMENT LETTER
March 10, 2021
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, 2020, which collectively comprise the Supervisor of
Elections' fund financial statements and have issued our report thereon dated March 10, 2021.
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 10, 2021, 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.
R nicmber of
Rehmann is an independent member of Nexia International. lexia
nicrnatlanal
404
The Honorable Leslie Swan
Supervisor of Elections
March 10, 2021
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.
405
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Rehmann
EMPOWER YOUR PURPOSE
INDEPENDENT AUDITORS' REPORT
March 10, 2021
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, 2020, 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 fraudor 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.
momber of
Rehmann is an independent member of Nexia International. alexia
?n i�'rna[lanal
408
The Honorable Carole Jean Jordan
Tax Collector
March 10, 2021
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, 2020, 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, 2020, 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 10,
2021, 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 andcompliance.
409
Indian River County, Florida
Tax Collector
Balance Sheet
General Fund
September 30, 2020
ASSETS
Cash and investments
Accounts receivable
Inventories
Prepaid items
Total assets
2,700,753
531,911
4,366
30,987
$ 3,268,017
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ 320,721
Due to other governments 2,867,653
Unearned revenues 77,865
Other deposits 1,778
Total liabilities 3,268,017
Fund Balances:
Nonspendable:
Inventories 4,366
Prepaid items 30,987
Unassigned (35,353)
Total fund balances
Total liabilities and fund balances $ 3,268,017
The accompanying notes are an integral part of the financial statements.
410
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, 2020
Variance
with Final
Budget
Budgeted Amount Positive
Original Final Actual (Negative)
REVENUES
Charges for services $ 7,101,700 $ 7,101,700 $ 7,393,656 $ 291,956
Interest 50,000 50,000 37,085 (12,915)
Total revenues 7,151,700 7,151,700 7,430,741 279,041
EXPENDITURES
General government
Total expenditures
Excess of revenues
over (under) expenditures
OTHER FINANCING USES
Transfers to Board
of County Commissioners
Total other financing uses
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
4,900,474 4,900,474 4,833,977 66,497
4,900,474 4,900,474 4,833,977 66,497
2,251,226 2,251,226 2,596,764 345,538
(2,251,226) (2,251,226) (2,596,764) (345,538)
(2,251,226) (2,251,226) (2,596,764) (345,538)
$
$
The accompanying notes are an integral part of the financial statements.
411
Indian River County, Florida
Tax Collector
Statement of Fiduciary Net Position
Agency Fund
September 30, 2020
ASSETS
Cash and investments $ 5,254,499
Total assets $ 5,254,499
LIABILITIES
Due to other governments $ 5,254,499
Total liabilities $ 5,254,499
The accompanying notes are an integral part of the financial statements.
412
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2020
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
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accural basis of accounting. 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
413
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
B. Basis of Accounting, Measurement Focus and Presentation - Continued
not considered earned and are reflected as liabilities. The fiduciary fund is reported on an
accrual basis.
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.
414
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
G. Unearned Revenues
Unearned revenues represent revenues which are available but not earned. The amount
reported on the Tax Collector's balance sheet of $77,865 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.
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 $2,867,653 at September 30, 2020, and are included as due to other
governments on the balance sheet. Of this amount, $2,596,764 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.
. 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.
415
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2020
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, 2020, the carrying amount of the
Tax Collector's deposits was $2,036,545 and the bank balance was $1,949,943.
B. Investments
At September 30, 2020, the Tax Collector had investments with a balance of $5,918,707.
The Florida Prime had a balance of $3,660,428 and weighted average maturity of 63 days.
The Florida Trust Day to Day Fund (Florida Trust) had a balance of $348,881 and weighted
average maturity of 27 days. The FLCLASS had a balance of $1,909,398 and a weighted
average maturity of 81 days.
Fair Value Measurement
The Tax Collector's investments in the Florida Cooperative Liquid Assets Securities System
(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. There were no unfunded
committments as of September 30, 2020. Investments may be redeemed weekly/daily based
on similar investments of other clients. 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.
416
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 2 - CASH AND INVESTMENTS - Continued
C. Deposit and Investment Policy - Continued
Concentration Risk
The Tax Collector's cash and investment policy limits portfolio composition to the following
maximum guidelines:
Local Government Surplus Funds Trust Fund (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 £t Exchange Commission Money Funds 25%
Bank Super NOW Accounts 95%
Bank Repo Agreements 25%
United States Government Agencies 25%
Interest Rate Risk
The Tax Collector will attempt to match investment maturities with known cash needs and
anticipated cash flow requirements. Investments of current operating funds shall have
maturities of no longer than twelve months and funds in excess of current operating needs
may have maturities of no longer than twenty-four months.
Credit Risk
Florida Statutes authorize investments in certificates of deposit, savings accounts, the Local
Government Surplus Funds Trust Fund administered by the Florida State Board of
Administration; Securities and Exchange Commission registered money market funds with
the highest credit quality rating from a nationally recognized rating agency, and direct
obligations of the U.S. Treasury. At September 30, 2020 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.
417
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2020
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.
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, 2020 were: regular class
10.00%, senior management class 27.29%, DROP class 16.98%, and elected official class
49.18%. 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.
418
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 4 - 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, 2020, the Tax Collector's actuarial contributions to FRS
under the Pension Plan were $262,106 and the Health Insurance Subsidy (HIS Program) were
$39,272. Employee contributions were $63,184. Both employer and employee contributions
were equal to 100% of the required contribution for each year.
Pension Liabilities: At September 30, 2020, the Division of Retirement calculated the Tax
Collector's liability of $3,271,643 for the FRS plan and $821,303 for the HIS Program, for a
total of $4,092,946 for its proportionate share of the net pension liability. The net pension
liability was measured as of June 30, 2020, and the total pension liability used to calculate
the net pension liability was determined by an actuarial valuation as of July 1, 2020. The
Tax Collector's proportion of the net pension liability was based on a projection of the Tax
Collector's tong -term share of contributions to the Pension Plan relative to the projected
contributions of all participating employers, actuarially determined. At September 30, 2020,
the Tax Collector's proportion was .007548% for the FRS Pension Plan and .006726% for the
HIS Program.
Discount Rate for Pension Plan: The discount rate used to measure the total pension
liability was 6.80%. 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 alt periods of projected benefit payments to determine the total
pension liability.
419
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 4 - PENSION PLAN - Continued
Florida Retirement System - Continued
Sensitivity of the Tax Collector's Proportionate Share of the Net Position Liability to
Changes in the Discount Rate for the Pension Plan: The following presents the Tax
Collector's proportionate share of the net pension liability (NPL) of the Pension Plan
calculated using the discount rate of 6.80%. Also presented is what the Tax Collector's
proportionate share of the FRS plan NPL would be if it were calculated using a discount rate
that is 1% lower or 1% higher than the current rate:
1% Decrease (5.80%)
Tax Collector's proportionate
share of NPL $ 5,224,264
Current Discount
Rate (6.80%)
1% Increase (7.80%)
$ 3,271,643 $ 1,640,806
Discount rate for the HIS Program: In general, the discount rate for calculating the pension
liability is equal to the single rate equivalent to discounting at the long-term expected rate
of return for benefit payments prior to the projected depletion date. Because the HIS
Program is essentially funded on a pay-as-you-go basis, the depletion date is considered to
be immediate. The single equivalent discount rate is equal to the municipal bond rate
selected by the plan sponsor. The Bond Buyer General Obligation 20 -Bond Municipal Bond
Index was adopted as the applicable municipal bond index.
Sensitivity of the Tax Collector's Proportionate Share of the Net Position Liability to
Changes in the Discount Rate for the HIS Program: The following presents the Tax
Collector's proportionate share of the NPL of the HIS Program calculated using the discount
rate of 2.21%. Also presented is what the Tax Collector's proportionate share of the HIS
Program NPL would be if it were calculated using a discount rate that is 1% lower or 1%
higher than the current rate:
1% Decrease (1.21%)
Tax Collector's proportionate
share of NPL $ 949,389
Current Discount
Rate (2.21%) 1% Increase (3.21%)
$ 821,303 $ 716,464
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.
420
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2020
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 2020 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 2020 at an annual cost of approximately $525,083.
Further details of this self-insurance program are discussed in the risk management note in
the County -wide financial statements.
NOTE 7 - LONG-TERM LIABILITIES
Changes in Long -Term Liabilities
The following is a schedule of changes in long-term liabilities as of September 30, 2020:
Beginning Ending
Balance Balance
10/1/2019 Additions Deletions 9/30/2020
Accrued Compensated Absences $ 120,570 $ 25,697
$ 27,840 $ 118,427
Of the $118,427 liability for accrued compensated absences, management estimates that
$14,276 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.
421
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2020
NOTE 8 - OPERATING LEASES
The Tax Collector has entered into noncancelable operating leases as lessee for office space
and office equipment. Lease expenditures totaled $97,199 for the fiscal year ended
September 30, 2020.
The following is a schedule by years of minimum future lease payments to be paid by the
Tax Collector for noncancelable operating leases as of September 30:
Year Amount
2021 $ 108,520
2022 92,840
2023 21,753
2024 848
Total future minimum lease payments $ 223,961
422
Rehmann
EMPOWER YOUR PURPOSE
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 10, 2021
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, 2020, which collectively
comprise the Tax Collector's fund financial statements and have issued our report thereon dated
March 10, 2021.
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) as a basis for designing 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.
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The Honorable Carole Jean Jordan
Tax Collector
March 10, 2021
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Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Tax Collector's financial statements
are free of material misstatement, we performed tests of its compliance with certain provisions of
laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct
and material effect on the financial statements. 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.
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MANAGEMENT LETTER
March 10, 2021
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, 2020, which collectively comprise the Tax Collector's fund financial
statements and have issued our report thereon dated March 10, 2021.
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 10, 2021, should be considered
in conjunction with this management letter.
Prior Audit Findings
Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not
corrective actions have been taken to address findings and recommendations made in the
preceding annual financial audit report. There were no findings or recommendations in the
preceding annual financial audit report.
Official Title and Legal Authority
Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal
authority for the primary government and each component unit of the reporting entity be disclosed
in this management letter, unless disclosed in the notes to the financial statements. This
information is disclosed in the notes to the financial statements.
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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)(1)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 Tess than material but which
warrants the attention of those charged with governance. In connection with our audit, we did not
note any such findings.
Purpose of this Letter
Our management letter is intended solely for the information and use of the Legislative Auditing
Committee, members of the Florida Senate and the Florida House of Representatives, the Florida
Auditor General, Federal and other granting agencies, the Tax Collector and applicable
management and is not intended to be and should not be used by anyone other than these specified
parties.
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INDEPENDENT ACCOUNTANTS' REPORT
March 10, 2021
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, 2020.
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, 2020.
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.
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