HomeMy WebLinkAbout2008-085A3115
INDIAN RIVER COUNTY, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR
OCTOBER 1, 2006
THROUGH
SEPTEMBER 30, 2007
Jeffrey K. Barton
Clerk of the Circuit Court
Prepared By:
Clerk of the Circuit Court Finance Department
Diane Bernardo
Finance Director
Indian River County, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Fiscal Year Ended September 30, 2007
Board of County Commissioners as of September 30, 2007
Gary C. Wheeler Joseph E. Flescher
Chairman Wesley S. Davis
Sandra L. Bowden Peter D. O'Bryan
Vice -Chairman
Current Board of County Commissioners (after November 20, 2007)
Sandra L. Bowden Joseph E. Flescher
Chairman
Wesley S. Davis
Vice -Chairman
Elected Constitutional Officers
Jeffrey K. Barton
Clerk of the Circuit Court
Kay Clem
Charles W. Sembler
Supervisor of Elections
Joseph Baird
County Administrator
Jason Brown
Budget Director
John W. King
Director of Emergency Services
Robert M. Keating
Tax Collector
County Management
Director of Community Development
Thomas W. Frame
Director of General Services
Peter D. O' Bryan
Gary C. Wheeler
David C. Nolte
Property Appraiser
Roy Raymond
Sheriff
Robert J. Komarinetz
Director of Golf Course
William G. Collins II
County Attorney
James W. Davis
Director of Public Works
Erik Olson
Director of Utilities
Cliff Crawford
Director of Recreation
James Sexton
Director of Human Resources
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Indian River County, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS
Fiscal Year Ended September 30, 2007
INTRODUCTORY SECTION
Page
Number
LETTEROF TRANSMITTAL........................................................................................................1
ORGANIZATIONCHART..... ....... ...... ........ ....... 00, ...... "I .......................... 00.0.0 ..... vi
CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE
INFINANCIAL REPORTING................................................................................................ vii
FINANCIAL SECTION
INDEPENDENTAUDITORS' REPORT..........................................................................................1
MANAGEMENT'S DISCUSSION AND ANALYSIS.....................................................................3
BASIC FINANCIAL STATEMENTS:
Government -wide Financial Statements:
Statementof Net Assets.... ..... I., ....... * . * 6 . . . . . . . . . . . . . ......................................... 6 .................... 17
Statementof Activities. I I . I . . . . . . I . . . . . . . . . & 0 * . . . . . . . I I . . . . . . . . . . I . I . . . . . . 6 . . . . . . . . . . . . . . . . . . 4 0 . 0 . . . . . . . . . . . . . . . . . . . . . . . 18
Fund Financial Statements:
Balance Sheet - Governmental Funds...................................................................................20
Statement of Revenues, Expenditures, and Changes in
Fund Balances - Governmental Funds............................................................................22
Reconciliation of the Statement of Revenues, Expenditures, and Changes
in Fund Balances of Governmental Funds to the Statement of Activities ......................24
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual - General Fund.., ............. 0 ....... 1..0 .......... 0.., ............... 00 ....... 0 .......... 0.0.25
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual - Impact Fees Fund...........................................................................26
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual - Secondary Roads Construction Fund............................................27
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual -Transportation Fund.......................................................................28
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual - Emergency Services District Fund................................................29
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual — Land Acquisition Fund.................................................................30
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual — SHIP Hurricane Housing Recovery Grant Fund ........................... 31
Indian River County, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS - CONTINUED
Fiscal Year Ended September 30, 2007
Page
Number
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Statement of Net Assets - Proprietary Funds........................................................................33 ,
Statement of Revenues, Expenses, and Changes in
Fund Net Assets - Proprietary Funds..............................................................................34
Statement of Cash Flows - Proprietary Funds......................................................................36
Statement of Fiduciary Assets and Liabilities - Agency Fund.............................................40
Notes to the Financial Statements...............................................................................................41
Combining and Individual Fund Statements and Schedules:
Combining Balance Sheet - Nonmajor Governmental Funds ............................................102
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances - Nonmajor Governmental Funds....." ................... .... 1110
Budgetary Comparison Schedules.......................................................I..............................118
Combining Statement of Net Assets - Nonmajor Enterprise Funds ...................................152
Combining Statement of Revenues, Expenses, and
Changes in Fund Net Assets - Nonmajor Enterprise Funds ............I ............................153
Combining Statement of Cash Flows - Nonmajor Enterprise Funds..................................154
Combining Statement of Net Assets - Internal Service Funds ...........................................158
Combining Statement of Revenues, Expenses, and
Changes in Fund Net Assets - Internal Service Funds..................................................159
Combining Statement of Cash Flows - Internal Service Funds ..........................................160
Combining Statement of Changes in Assets and Liabilities - Agency Fund......................164
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Indian River County, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS- CONTINUED
Fiscal Year Ended September 30, 2007
STATISTICAL SECTION
Page
Number
SCHEDULE 1 Net Assets by Component - Last Seven Fiscal Years.......................................166
SCHEDULE 2 Changes in Net Assets - Last Seven Fiscal Years.............................................168
SCHEDULE 3 Fund Balances, Governmental Funds - Last Ten Fiscal Years .........................172
SCHEDULE 4 Changes in Fund Balances, Governmental Funds —
LastTen Fiscal Years ....................... 0..........................................................174
SCHEDULE 5 Tax Revenues by Source, Governmental Funds —
LastTen Fiscal Years...............................0.............00....0..............................176
SCHEDULE 6 Assessed Value and Actual Values of Taxable Property -
Last Ten Fiscal Years,, ....... I..", ......... 0000, ... 0 ...... I ... 0 ....... *6 ... ................... 177
SCHEDULE 7 Property Tax Rates - Direct and Overlapping Tax Rates -
LastTen Fiscal Years..................................................................................178
SCHEDULE 8 Principal Property Taxpayers - Year 2007 and Year 1998 ...............................180
SCHEDULE 9 Property Tax Levies and Collections - Last Ten Fiscal Years ..........................181
SCHEDULE 10 Ratios of Outstanding Debt by Type -Last Ten Fiscal Years ..........................182
SCHEDULE 11 Ratio of Net General Bonded Debt Outstanding to Taxable Value
and Net Bonded Debt Per Capita - Last Ten Fiscal Years ..........................184
SCHEDULE 12 Computation of Legal Debt Margin ............................. ..................................... 185
SCHEDULE 13 Direct and Overlapping Governmental Activities Debt....................................186
SCHEDULE 14 Pledged Revenue Coverage - Water and Sewer Revenue Bonds -
LastTen Fiscal Years.......................11.......0............0....................................188
Indian River County, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS- CONTINUED
Fiscal Year Ended September 30, 2007
Page
Number
SCHEDULE 15 Pledged Revenue Coverage - Recreational Revenue Refunding Bonds -
Series 2003 - Last Ten Fiscal Years ...........................................................190
SCHEDULE 16 Pledged Revenue Coverage - Housing Authority Component Unit
LastTen Fiscal Years...........................66...00................................................191
SCHEDULE 17 Demographic and Economic Statistics - Last Ten Years..................................192
SCHEDULE 18 Principal Employers - Year 2007 and Nine Years Ago ....................................193
SCHEDULE 19 Building Permits — Last Ten Fiscal Years .......................................................194
SCHEDULE 20 Operating Indicators by Function/Program — Last Ten Fiscal Years ...............196
SCHEDULE 21 Full Time Equivalent County Government Employees
by Function/Program - Last Seven Fiscal Years........................................200
SCHEDULE 22 Capital Asset Statistics by Function/Program - Last Ten Fiscal Years ............202
SCHEDULE 23 Department of Utility Services - Historical Rate Structure —
LastTen Fiscal Years.. .....................................1.0.1...0..................................206
SCHEDULE 24 Water and Wastewater Customers - Last Ten Fiscal Years..............................208
SCHEDULE 25 Top 10 High Volume Customers of Utility Service .........................................209
SCHEDULE 26 Capacity Charges - Utilities Department - Last Nine Fiscal Years ..................210
SCHEDULE 27 Pledged Revenues for Recreational Revenue Refunding Bonds, Series 2003 —
LastTen Fiscal Years. . I.. I I I .......................... ".." .... 0 ..................................... 211
SCHEDULE 28 Pledged Revenues for Spring Training Facility Revenue Bonds, Series 2001 —
LastTen Fiscal Years...........................1..0...0.1.............................................212
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Indian River County, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS- CONTINUED
Fiscal Year Ended September 30, 2007
COMPLIANCE SECTION
Page
Number
CountyManagement Comments.. I., ........ "I......................11...........60..........................................213
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 .......................................................215
Federal and State Grants:
Independent Auditors' Report on Compliance with Requirements Applicable to Each
Major Federal Program and Major State Project and on Internal Control over
Compliance in Accordance with OMB Circular A-133 and the Department of
Financial Services' State Projects Compliance Supplement ....................................217
Schedule of Expenditures of Federal Awards and State Projects.............................................220
Notes to Schedule of Expenditures of Federal Awards and State Projects...............................224
Schedule of Findings and Questioned Costs - Federal Awards and State Projects ..................225
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Indian River County, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS- CONTINUED
Fiscal Year Ended September 30, 2007
AUDITOR GENERAL REPORTS SECTION
Page
Number
BOARD OF COUNTY COMMISSIONERS
IndependentAuditor's Report .....................................................................0.............................229
Special Purpose Financial Statements ..............................00..0...........4.......................................230
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 .....................0.................................287
ManagementComments................................................ ....................0......................................289
CLERK OF THE CIRCUIT COURT
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IndependentAuditor's Report ...........................................I.............6.........................................292
Special Purpose Financial Statements..............................................0.....0.................................293
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 .................0.....................................302
ManagementLetter................................................................................0..................................304
PROPERTY APPRAISER
IndependentAuditor's Report.. ......... 110..0........................0....00....................0..............................308
Special Purpose Financial Statements .........I............0.....0.0.0....0.1..00...0..........0................0......0...309
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 ....... 0.0 .... 0 ... 0 ...........0....0............0.....0316
Management Letter...............................318
....................................................................................
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Indian River County, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS -CONTINUED
Fiscal Year Ended September 30, 2007
SHERIFF
Page
Number
Independent Auditor's Report ........................ I...............0000.......................................................322
Special Purpose Financial Statements......................................................................................323
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 .......................................................332
ManagementLetter..................................................................................0.0..............................334
SUPERVISOR OF ELECTIONS
Independent Auditor's Report... I .... .................. I.." ..................... *0 0.0 0.............................. 338
Special Purpose Financial Statements......................................................................................339
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 .......................................................347
ManagementLetter...........................0......................0.....0.........00.....0.........................................349
TAX COLLECTOR
IndependentAuditor's Report ...................................................................................................352
Special Purpose Financial Statements......................................................................................353
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 ...I ...................................................364
ManagementLetter...................................................................................................................366
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JEFFREY K. BARTON
Clerk of Circuit Court and Comptroller
1 801 27, h Street
Vero Beach, Florida 32960-3388
Telephone (772) 226-1945
March 6, 2008
To the Citizens of Indian River County:
The Comprehensive Annual Financial Report of Indian River County, Florida for the fiscal year ended
September 30, 2007, is respectfully submitted. State law requires that every general-purpose
government publish a complete set of audited financial statements within six months of the close of each
�. fiscal year. This report was prepared by the Finance Department under the supervision of the Clerk of
the Circuit Court. Responsibility for both the accuracy of the presented data and the completeness and
fairness of the presentation, including all disclosures, rests with the Finance Department and is
contingent upon the internal control established for this purpose. Since the cost of internal control
should not exceed anticipated benefits, the objective of the financial statements is to provide reasonable,
rather than absolute, assurance that they are free of any material misstatements.
Section 11.45, Florida Statutes, requires an annual audit of all County agencies. The County has
directed that the annual audit be more extensive than that required by Florida Statutes by requiring that
the annual audit be a single audit covering all the funds and account groups of the County. The
unqualified opinion of the auditors, Harris, Cotherman, Jones, Price and Associates, Certified Public
Accountants — Chartered, of the County's financial statements for the year ended September 30, 2007
has been included in this report. The independent auditors' report is located at the front of the financial
section of this report. The audit was also designed to meet the requirements of Government Auditing
Standards, the Florida Single Audit Act, the Federal Single Audit Act of 1984, the Single Audit Act
Amendments of 1996, and revised OMB Circular A-133.
Readers of this report are encouraged to read Management's Discussion and Analysis (MD&A), which
provides basic financial information about the County and an overview of the County's activities. The
MD&A immediately follows the independent auditors' report.
Profile of the Government
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Indian River County, established on June 29, 1925 by an act of the Florida Legislature, is 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
w 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. The functional (seasonal plus resident)
population reaches approximately 160,000. Like the rest of the state of Florida, the County has
experienced significant population growth. Government and the service industry remain the largest
sectors of employment in the County with other major sources of jobs found in retail trade and
agriculture. Indian River citrus is a well-recognized name and product throughout the United States and
internationally.
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Indian River County is a Non -Charter County established under the Constitution and the Laws of the
State of Florida. This Comprehensive Annual Financial Report (CAFR) includes the funds of the
primary government (the Board of County Commissioners, the Clerk of the Circuit Court, the Property
Appraiser, the Sheriff, the Supervisor of Elections and the Tax Collector), the blended component units
consisting of the Emergency Services District and the Solid Waste Disposal District and one discretely
presented component unit, the Indian River County Housing Authority.
These component units were included because generally accepted accounting principles require that
organizations for which the County is financially accountable be reported with the primary government
(the County) as the reporting entity. This CAFR does not include the Indian River County School
District, the Indian River County Mosquito Control District or the Indian River County Memorial
Hospital,
Local Economy
Strong growth in the County continued and has provided the County the opportunity to lower tax rates
while still providing a high level of services to County residents and visitors. Property tax values
increased 25% from $14.2 billion in 2006 to $17.8 billion in 2007 due to the building boom in 2005 and
2006. Construction activity has subsequently decreased in 2007 due to the fall of the economy,
decreasing interest rates, increasing fuel prices, and the downsizing of the northern manufacturing
plants. All of these factors contributed to a decrease in new construction with 1,673 permits issued in
2007 for a value of $387.2 million. Our Statistical Schedule 19, on page 194, reflects our peak activity
of growth in 2005 and 2006. Even though our construction has slowed, our County population
continued to grow. Population growth, which was averaging about 2.15% per year in the 1990s, had
increased over 2006 by 3.3%. Indian River County's estimated population can be found on Statistical
Schedule 17 on page 192.
Total employment for FY 2007 was 57,292 with jobs in government, medical services, financial
services, manufacturing, retail, construction and citrus. The unemployment rate increased from 4.7% in
2006 to 7.0% in 2007 due to the decrease in residential and commercial construction and remodeling.
Just slightly less than 10% of the total County acreage is dedicated to citrus production. The County is a
major producer of citrus in the state with citrus production increasing from 7.5 million boxes in 2006 to
12.3 million boxes in 2007.
Long Term Financial Planning
The Utilities Department has planned on the addition of several new water distribution and wastewater
collection lines to serve new customers. Expansion of the West Regional Wastewater Plant began
during fiscal year 2006-2007 at an estimated cost of $21.1 million. Additionally, the North R/O Water
Plant expansion is also underway at an estimated cost of $14 million. All of these improvements will be
funded by current Utility capacity charges and from the additional customer base they will serve.
The widening of a northern artery, County Road 510 has begun. This will increase capacity from two to
four lanes from U.S. Highway 1 to County Road 512 at a cost of approximately $80 million. Funding
will be provided by traffic impact fees and gas taxes and is estimated to be completed during fiscal year
2011-2012.
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On January 15, 2008, the County entered into a locally funded agreement with the Florida Department
of Transportation (FDOT) to advance the 6-laning of State Road 60 from 82nd Avenue to 66th Avenue
(Segment One). The agreement obligates the County to pay $34,669,601 to the FDOT in three
installments: $3,466,960 in February 2008, $13,867,840 in March 2008, and $17,334,801 in May 2008
with funding coming from gas taxes. The FDOT will reimburse the County in eight quarterly
installments over a two-year period beginning no sooner than July 2009. Repayments to the County will
include principal and any accumulated interest earnings that have not been used for supplemental costs
of the project.
In March 1989, Indian River County voters passed the optional one -cent sales tax which is effective for
a fifteen year period. In November 2002, a voter referendum approved extending the optional one -cent
sales tax another 15 years until December 31, 2019. Many capital projects have been completed with
this funding that otherwise would have been funded by ad valorem dollars. In 2007, $14.5 million was
received and will be used towards funding numerous capital projects including the following
construction projects:
6e Avenue — One of the main arterials of the County that connects the north and south areas is
increasing from two to four lanes from State Road 60 to County Road 510 with construction
costs estimated at over $80 million. Construction of a portion of this roadway is scheduled in the
five-year plan for $38 million with funding also from traffic impact fees and gas taxes.
South County Park - The expansion of this park is necessary to provide recreation facilities and
programs to the growing population in the County. A multi-purpose facility will be constructed
at a cost of $2.3 million. Ad valorem tax proceeds and user fees will fund increased operating
costs. The impact to ad valorem taxpayers could be reduced through the use of possible public-
private partnerships to operate this facility.
Indian River County Jail - The Indian River County jail has reached capacity. The existing
453 -bed jail is being expanded to accommodate an additional 256 beds and infirmary space. To
date, $23.8 million has been spent. Operating costs associated with the expansion are estimated
at $4 million per year and will be funded by ad valorem tax dollars.
Fire/EMS Stations - Fire/EMS Station 12 (located in the south, central area) construction began
during fiscal year 2006-2007 at a cost of $2.2 million including land acquisition, with a $750,000
CDBG grant providing additional funding. Construction of Fire/EMS Station 13 is scheduled for
fiscal year 2008-2009 at a cost of $2.6 million.
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. During FY 2007, County investments
had yields ranging from 1.88% to 5.75%. The average yield of the portfolio as of September 30, 2007
was 5.17%.
Major Initiatives
Construction was completed on the new County Administration Complex during fiscal year 2006-2007.
Optional one -cent sales tax funded this project at over $43 million. Operating costs will increase slightly
due to the larger size of the new facility and will be funded by ad valorem taxes.
The Board of County Commissioners approved the Comprehensive Beach Preservation Plan (BPP) in
1999. Several areas of County beaches have been listed as critically eroded. The Beach Preservation
Plan provides for renourishment of these portions. State grants, local option sales tax, and tourist tax
make up the necessary funding for these projects. The County will complete restoration efforts of the
South County Beach (Sector 7) and the Ambersand Beach (Sectors 1 & 2) in fiscal year 2007-2008.
These areas experienced drastic erosion after the 2004 and 2005 hurricanes. FEMA grants totaling
approximately $10.0 million will assist in providing emergency renourishment for storm protection from
future hurricanes. Grant applications will also be submitted for construction of additional offshore
artificial reefs.
Indian River County has entered into an agreement with Indian River Community College to construct a
joint -use library for both Indian River County and the college. This additional facility will provide a
resource to serve the County's growing population and students of the college. Funding for the project
is from one -cent sales tax, library impact fees, gas tax and a Challenge Grant secured by the college. Ad
valorem taxes will provide most of the funding for operating costs. The college will contribute a portion
of the operating costs in this joint venture, which will reduce the impact on ad valorem dollars.
Public Works, Utilities, and Community Development are currently proceeding with the design and
construction of storm water projects in Vero Lake Estates, East Gifford, and Roseland areas. Local
funds will be used to match several State grants awarded for these storm water projects. The East
Gifford Storm Water Watershed M.S.B.U. was created to account for local non -ad valorem assessments
collected as a local match to receive a State grant for a comprehensive storm water improvement project
for this area. Implementation of the Storm Water Master Plan as required by The National Pollutant
Discharge Elimination System Requirements (NPDES) will reduce the amount of freshwater runoff and
chemicals (fertilizers, pesticides, herbicides) entering the Indian River Lagoon.
Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to Indian River County for its
comprehensive annual financial report (CAFR) for the fiscal year ended September 30, 2006. This was
the 24th consecutive year that the County has received this prestigious award. In order to be awarded a
Certificate of Achievement, a government must publish an easily readable and efficiently organized
comprehensive annual financial report. This report must satisfy both generally accepted accounting
principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
comprehensive annual financial report continues to meet the Certificate of Achievement Program's
requirements and we are submitting it to the GFOA to determine its eligibility for another certificate.
In addition, Indian River County also received the GFOA's Distinguished Budget Presentation Award
for its annual budget document for the 2006-2007 fiscal year. This was the 16th 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.
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Summary
I would like to thank the entire staff of the Finance Department 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 unfailing support in planning and
conducting the financial operations of the County in a responsible and progressive manner.
Respectfully submitted,
Jeffrey K. Barton
Clerk of the Circuit Court and Comptroller
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Clerk of Circuit
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Finance
Department
General
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Youth
Guidance
Libraries
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Purchasing
Facilities
Management
Mailroom/
Sw tchboard
Veterans
Services
Telecommunications
Shooting
Range
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Conservation
Housing
Authority/
Rental Assist.
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Extension
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Services
Indian River County Departmental Organization
Residents of
Indian River County
SheriffI I Supervisor of
Elections
County Attorney
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Board of
County
Commissioners
County Administrator
Utility
Public Works Services L
Leisure Services Geographic Info
(Golf Course) System (GIS)
Wastewater
Engineering T t t
Roads &
Bridges
Traffic
Parks
Division
Fleet
Management
Secondary
Road
Construction
Stormwater
Beach
Restoration
Real Estate
Acquisition
rea men
Water
Production
General &
Engineering
Biosolids
Operations
Customer
Service
Wastewater
Collection
W ater
Distribution
Solid Waste
Disposal District
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Property
Appraiser
Assistant
County Administrator
Tax
Collector
EmergencyI
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Office
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Management
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Recreation
Emergency
Management
Fire / Rescue
Radiological
Emergency
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Base Grant
Animal
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911
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County Risk
Planning Management
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Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Indian River County
Florida
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 2006
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
President
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Executive Director
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Harris, Cotherman,
Jones, Price & Associates
C CCMtWd Public Account,inn - Chartered
5070 North Highway AIA, Suite 250
Vero Beach, FL 32963
Tel 772.234-8484
Fax 772-234-8488
Independent Auditors' Report
The Honorable Board of County Commissioners and Constitutional Officers
Indian River County, Florida
We have audited the accompanying financial statements of governmental activities, the business -
type activities, the aggregate discretely presented component unit, 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, 2007, which collectively comprise the County's basic financial
statements as listed in the table of contents. These financial statements are the responsibility of
the County's management. 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 includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and the significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe that
our audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, the business -type activities, the
aggregate discretely presented component unit, each major fund, and the aggregate remaining
fund information of the County as of September 30, 2007, and the respective changes in financial
position and cash flows, where applicable, thereof for the year ended in conformity with
accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued a report dated March 5,
2008 on our consideration of the County's internal control over financial reporting and on our
tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements
and other matters. The purpose of the 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 the internal control over financial reporting or on compliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards and
should be read in conjunction with this report in considering the results of our audit.
"Providing Vision and Direction to our Clients"
Member AICPA Member AICPA Division For CPA Firms Member FICPA
Private Companies Practice Section
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Harris, Cotherman,
Jones, Price & Associates
Certified Public Accountants - Chartered
The Honorable Board of County Commissioners and Constitutional Officers
Indian River County, Florida
Page two
The Management's Discussion and Analysis and required supplementary information, as listed in
the table of contents, are not a required part of the basic financial statements but are
supplementary information required by accounting principles generally accepted in the United
States of America. We have applied certain limited procedures which consisted principally of
inquiries of management regarding the methods of measurement and presentation of the required
supplementary information. However, we did not audit the information and express no opinion
on it.
Our audit was conducted for the purpose of forming opinions on the basic financial statements
that collectively comprise the County's basic financial statements. The accompanying
information identified in the table of contents as combining and individual fund statements and
schedules is presented for purposes of additional analysis and is not a required part of the basic
financial statements. Such information has been subjected to the auditing procedures applied in
the audit of the basic financial statements and, in our opinion, is fairly stated, in all material
respects, in relation to the basic financial statements taken as a whole.
The information identified in the table of contents as the Introductory and Statistical Sections is
presented for purposes of additional analysis and is not a required part of the basic financial
statements of Indian River County, Florida. Such information has not been subjected to the
auditing procedures applied in the audit of the basic financial statements, and accordingly, we
express no opinion on them.
Vero B ach, Florida
March 5, 2008
N
E3
.,
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2007
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, 2007. 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 -v of this report. All amounts, unless
otherwise indicated, are expressed in millions of dollars.
Financial Highlights
• The County's overall financial position improved over 2006.
• The assets of the County exceeded its liabilities at the close of the most recent fiscal year by
$914.2 million (net assets). Of this amount, $108.1 million (unrestricted net assets) may be used
to meet the government's ongoing obligations to citizens and creditors.
• The government's total net assets increased by $61.3 million. Governmental activities accounted
for 83% of this increase. Interest income of $16.0 million in government activities and $9.2
million in business -type activities together represented 41% of the $61.3 million increase. The
water and sewer capital contribution revenue declined substantially from $26.5 million in 2006
to $9.7 million in 2007, reflecting a considerable slowdown in the construction industry.
• As of the close of the current fiscal year, the County's governmental activities reported
combined ending net assets of $608.5 million, an increase of $50.6 million in comparison with
the prior year. Of the $608.5 ending net assets, 10% or $60.7 million, is unrestricted net assets.
• At the end of the current fiscal year, unreserved, undesignated fund balance for the general fund
alone was $50.3 million. The remaining balance of unreserved funds pertained to the insurance
internal service fund.
Overview of the 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 assets presents information on all of the County's assets and liabilities, with the
difference between the two reported as net assets. Over time, increases or decreases in net assets may
serve as a useful indicator of whether the financial position of the County is improving or deteriorating.
3
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2007
The statement of activities presents information showing how the government's net assets changed
during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event
giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and
expenses are reported in this statement for some items that will only result in cash flows in future fiscal
periods (e.g., uncollected taxes and earned, but unused, vacation leave).
Both of the government -wide financial statements distinguish functions of the County that are
principally supported by taxes and intergovernmental revenues (governmental activities) from other
functions that are intended to recover all or a significant portion of their costs through user fees and
charges (business -type activities). The governmental activities of the County include general
government, public safety, physical environment, transportation, economic environment, human
services, culture and recreation, and court related. The major business -type activities of the County
include a water and sewer utility, a solid waste disposal district and a golf course.
The government -wide financial statements include not only the Board of County Commissioners, but
also the Clerk of the Circuit Court, Tax Collector, Property Appraiser, Sheriff and Supervisor of
Elections. In addition, financial information is reported in a separate column for the Indian River County
Housing Authority (the Authority). The Authority is not part of the primary government of Indian River
County. The government -wide financial statements can be found on pages 17-19 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.
The County maintains 39 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, six special revenue funds, and the optional (one -cent)
sales tax funds. All are considered to be major funds. Data from the other 31 governmental funds are
11
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2007
combined into a single, aggregated presentation. Individual fund data for each of these non -major
governmental funds is provided in the form of combining statements located behind the notes to the
financial statements. The combining statements referred to earlier in connection with nonmaj or
governmental funds and internal service funds can be found on pages 102-161 of this report.
The County adopts an annual appropriated budget for its general fund. A budgetary comparison
statement has been provided for the general fund to demonstrate compliance with this budget.
The basic governmental fund financial statements can be found on pages 20-31 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,
shooting range, 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 its fleet management, self insurance, and geographic information
systems. 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 funds 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 and golf course, 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.
The basic proprietary fund financial statements can be found on pages 33-39 of this report.
Fiduciary funds
Fiduciary funds are used to account for resources held for the benefit of parties outside the government.
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 statement can be
found on page 40 of this report.
Notes to the financial statements
The notes provide additional information that is essential to a full understanding of the data provided in
the government -wide and fund financial statements. The notes to the financial statements can be found
on pages 41-96 of this report.
5
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2007
Government -wide Financial Analysis
As noted earlier, net assets may serve over time as a useful indicator of a government's financial
position. In the case of the County, assets exceeded liabilities by $914.2 million at the close of the fiscal
year. By far, the largest portion of the County's net assets (60 percent) reflects its investment in capital
assets (e.g., land, buildings, machinery, and equipment), less any related debt used to acquire those
assets that is still outstanding. 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.
Current and other assets $
Capital assets
Total assets
Long-term liabilities
Other liabilities
Total liabilities
Net assets:
Invested in capital
assets,
net of related debt
Restricted
Unrestricted
Indian River County Net Assets (In Millions)
Governmental Business -type
Activities Activities Total
2007 2006 2007 2006 2007 2006
275.1 $ 319.9 $ 157.5 $ 162.1 $ 432.6 $ 482.0
447.6 355.5 239.2 219.7 686.8 575.2
722.7 675.4 396.7 381.8 1119.4 1057.2
70.8 74.8 62.0 65.0 132.8 139.8
43.4 42.8 29.0 21.8 72.4 64.6
114.2 117.6 91.0 86.8 2052 204.4
374.5 278.2 174.5 152.2 549.0 430.4
173.3 158.0 83.8 89.0 257.1 247.0
60.7 121.6 47.4 53.8 108.1 175.4
Total net assets $ 608.5 $ 557.8 $ 305.7 $ 295.0 $ 914.2 $ 852.8
A portion of the County's net assets (28.0%) represents resources that are subject to external restrictions
on how they may be used. The remaining balance of the unrestricted net assets ($108.1 million) may be
used to meet the government's ongoing obligations to citizens and creditors.
At the end of the current fiscal year, the County is able to report positive balances in all three categories
of net assets, both for the government as a whole, as well as for its separate governmental and business -
type activities. The same situation held true for the prior fiscal year. The government's net assets
increased by $61.4 million during the current fiscal year. There was a $118.6 million increase in net
assets invested in capital assets, net of related debt resulting from 1) the purchase of properties for
purposes of environmental conservation, and 2), the construction of roads, the administration complex,
the 43rd Avenue complex, the Utilities Operations Center, the Emergency Operations Center and a major
jail expansion. In 2007, the County elected to reclassify certain funds previously identified as
unrestricted. Consequently, our discussion is limited to the net change of restricted plus unrestricted net
assets, which decreased by $57.2 million, largely the result of land and other capital assets outlays.
6
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Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2007
Indian River County Changes in Net Assets (In Millions)
Governmental
Activities
Business -type
Activities
Total
2007 2006 2007 2006 2007 2006
Revenues:
Program revenues:
Charges for services $ 26.5 $ 43.8 $ 46.1 $ 49.8 $ 72.6 $ 93.6
Operating grants/contributions 25.6 13.4 0.1 1.2 25.7 14.6
Capital grants/contributions 13.4 13.1 9.7 26.8 23.1 39.9
General revenues:
Property taxes 99.7 84.9 - - 99.7 84.9
Sales taxes 20.7 21.9 - - 20.7 21.9
Franchise fees 9.7 9.3 - - 9.7 9.3
State shared revenues 12.4 13.0 - - 12.4 13.0
Other 17.6 15.4 9.3 6.4 26.9 21.8
Total revenues 225.6 214.8 65.2 84.2 290.8 299.0
Expenses:
General government 15.5 14.6 - - 15.5 14.6
Public safety 42.1 58.6 - - 42.1 58.6
Physical environment 35.0 8.5 - - 35.0 8.5
Transportation 26.2 22.0 - - 26.2 22.0
Economic environment 1.0 1.1 - - 1.0 1.1
Human services 13.9 12.3 - - 13.9 12.3
Culture/Recreation 31.2 11.5 - - 31.2 11.5
Court related 6.8 6.0 - - 6.8 6.0
Interest on long-term debt 3.2 2.5 - - 3.2 2.5
Water and sewer - - 37.5 33.4 37.5 33.4
Solid waste - - 10.3 11.5 10.3 11.5
Golf course - - 3.1 3.1 3.1 3.1
w Other - - 3.7 4.1 3.7 4.1
Total expenses 174.9 137.1 54.6 52.1 229.5 189.2
Increase in net assets before transfers 50.7 77.7 10.6 32.1 61.3 109.8
Transfers (0.1) 5.1 0.1 (5.1) - -
Increase in net assets 50.6 82.8 10.7 27.0 61.3 109.8
Net assets - October 1, 2006 557.8 475.0 295.0 268.0 852.8 743.0
Net assets - September 30, 2007 $ 608.5 $ 557.8 $ 305.7 $ 295.0 $ 914.2 $ 852.8
7
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2007
Governmental Activities
Governmental activities revenues exceeded expenses by $50.6 million, accounting for 83 percent of the
total growth in the County's net assets. Key elements of this increase are as follows:
• Program revenues decreased $4.8 million. Charges for services decreased by $17.3 million or
39%. The decrease was primarily due to a large reduction in impact fee collections, an effect of
the slow down in construction activity.
• Operating grants in 2007 were $25.6 million, an increase of 90% over the 2006 operating grant
revenues. Transportation grants increased by $1.9 million, economic environment grants
increased by $5.5 million, and culture/recreation grants increased by $5.8 million. These
increases were partially offset by decreases in the public safety and human services grants.
• Capital grants and contributions were $0.3 million higher in 2007 than in 2006, an overall
increase of 3%. This was largely due to contributions by developers for increased road capacity
in the southern part of the County.
• Property taxes levied for general purposes increased by $10.1 million, or 12%, as a result of
higher property valuations. Property taxes, levied for debt service increased by $4.6 million, or
188% which is the result of additional collections earmarked for debt service on the 2006
Limited General Obligation bonds.
• Interest earnings, a major component of general revenues, increased by $3.8 million, the result of
higher interest rates in 2007.
• The governmental expenses were $37.8 million higher in 2007 than in 2006. The increase was
largely the result of environmentally sensitive land purchases and beach restoration costs.
Business -type activities
Business -type activities increased the County's net assets by $10.7 million, accounting for 17 percent of
the total growth in the government's net assets. Key elements of this increase are as follows:
• Charges for services for business -type activities decreased by $3.7 million or 7 %. Water and
sewer impact fee charges decreased $0.5 million, or 2%, due to lower meter installations. Solid
waste charges decreased $1.8 million, or 13%, due to a calm hurricane season. County building
charges decreased by $1.6 million, or 35%, due to decreased construction activity in the County.
These decreases were offset partially by revenue increases in the golf course and shooting range.
• Operating grants for business -type activities decreased by $1.1 million because 2006 included
FEMA grant revenue from the September 2004 and October 2005 hurricanes.
• Of the $17.1 million decrease in capital grants and contributions, $16.8 million is water and
sewer utility related. Due to the decrease in construction activity, the water and sewer utility
department of the County experienced a 63% decrease in developer capital contributions.
8
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2007
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
Unreserved fund balance may serve as a useful measure of the County's net resources available for
spending at the end of the fiscal year. As of the end of the current fiscal year, the County's governmental
funds reported combined ending fund balances of $222.9 million, a decrease of $43.8 million in
comparison with the prior year.
• The fund balance of the County's General Fund increased by $5.0 million. Key factors in this
growth are as follows: (1) an increase of tax revenues of $7.7 million resulting from increased
property values and increased franchise taxes, and (2) an increase in interest income of $1.7
million resulting from higher interest rates.
• In the Impact Fees Fund there was a $12.3 million decrease. The slowdown in construction
activity is reflected by a decrease in special assessments revenue of $17.6 million, or 72%. The
transportation expenditures increased by $12.5 million, or 131%. Culture/recreation reported
$1.4 million in expenditures in 2007 for contributions toward three community projects: the
joint -use library with the local community college, soccer fields lighting in the central part of the
county, and lighting improvements at a multi-purpose park.
• The Land Acquisition Fund decreased by $25.4 million in fund balance, largely the result of
$31.1 million in land purchase expenditures.
• The Optional Sales Tax Fund decreased by $12.9 million, with $39.5 million of expenditures in
capital projects including $14.1 million for the administrative complex, $4.1 million for the
emergency operations center and $14.8 million for the jail expansion project.
• Of the $222.9 million combined ending fund balances, $199.9 million, or 90%, is classified as
unreserved, undesignated fund balance.
The remainder of fund balance is reserved to indicate that it is not available for new spending. The
largest reserved amount is in the Optional Sales Tax Fund, which is reserved for capital projects in the
amount of $16.0 million and also for a $0.74 million loan to another fund. Other reservations include the
Secondary Roads Construction Fund's two reservations of $0.67 million for capital projects and $0.71
million for advances to other funds; the two debt service funds listed on pages 108-109; and one
construction reserve fund listed on page 109.
The General Fund is the chief operating fund of the County. At the end of the current fiscal year,
unreserved, undesignated fund balance of the general fund was $50.3 million. As a measure of the
general fund's liquidity, it may be useful to compare unreserved fund balance to total expenditures.
Unreserved, undesignated fund balance represents 56 percent of total general fund expenditures. The
impact fees fund had a $73.1 million unreserved, undesignated fund balance, and the total impact fee
expenditures were 32 percent of the ending fund balance indicating future road construction.
9
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2007
Proprietary funds
Unrestricted net assets in the solid waste disposal district at the end of the year amounted to $21.7
million, for the golf course ($0.6) million, and for the County utilities $21.4 million.
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 $4.7 million increase in appropriations between the original and final
amended budget. Following are the main components of the increase:
• $1,699,684 supplemental appropriation to the Community Transportation Coordinator to provide
countywide public transportation.
• $1,522,349 supplemental appropriation to various departments for damages to facilities and
equipment from the three major hurricanes that affected Indian River County in 2004 and 2005.
• $612,200 supplemental appropriation to the Tax Collector's office.
• $195,750 supplemental appropriation to purchase a new generator for the Sheriff's
Administration Building.
• $115,349 supplemental appropriation for various vehicles and equipment items that needed to be
replaced.
Actual revenues exceeded budget for the following reasons:
• Taxes and franchise fee revenues exceeded the total budget amount.
• Rising interest rates resulted in increased interest earnings.
Actual expenditures were lower than anticipated for. the following reasons:
• Various budgeted capital improvements expenditures were deferred until next fiscal year.
• Positions budgeted but not filled.
• Operating expenditures were less than budgeted.
The General Fund Statement of Revenues, Expenditures, and Changes in Fund Balances — Budget and
Actual is shown on page 25.
10
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2007
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, 2007, amounts to $686.8 million (net of accumulated depreciation). This investment in
capital assets includes land, right-of-way, buildings and improvements, equipment, infrastructure and
construction in progress. The overall increase in the County's investment in capital assets for the current
fiscal year was 19 percent (a 26 percent increase for governmental activities and a 9 percent increase for
business -type activities).
Governmental activities had the following major increases during the fiscal year:
• An increase in buildings primarily due to the capitalization of the county administration building,
the 43`d Avenue complex, the Emergency Operations Center, and the county jail expansion.
• An increase in improvements due to the capitalization of fire station, county parks, and
Dodgertown improvements.
• An increase in land primarily due to the purchase of properties for purposes of environmental
conservation including the $12.1 million Sexton ranch property and the $13.8 Sebastian Harbor
Preserve.
Business -type activities had the following major increases during the fiscal year:
• An increase in buildings due to the capitalization of the Utilities Operations Center.
• An increase in construction in progress was due to the North County R/O Plant Expansion and
West Regional Wastewater Transmission Project.
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2007
Indian River County Capital Assets (Net of Depreciation, In Millions)
Governmental
Activities
Business -type
Activities
2007 2006 2007 2006
Land $ 114.6 $ 83.5 $ 18.4 $ 18.4 $
Right-of-way 20.0 15.9 - -
Buildings and improvements 144.7 62.2 182.7 173.8
Equipment 31.8 28.8 7.3 7.4
Infrastructure 67.4 68.2 - -
Construction in progress 69.1 96.9 30.8 20.1
Total
2007 2006
133.0 $ 101.9
20.0 15.9
327.4 236.0
39.1 36.2
67.4 68.2
99.9 117.0
Total $ 447.6 $ 355.5 $ 239.2 $ 219.7 $ 686.8 $ 575.2
Additional information on the County's capital assets can be found in Note 6 on page 67 of this report.
Long-term debt
At the end of the current fiscal year, the County had total bonded debt outstanding of $137.0 million. Of
this amount, $58.5 million is debt backed by the full faith and credit of the government. The revenue
bonds represent bonds secured solely by specified revenue sources.
Indian River County's Outstanding Debt General Obligation and Revenue Bonds
(In Millions)
General Obligation Debt:
General Obligation, Series 2001 $
General Obligation Ref., Series 2003
Limited General Oblig., Series 2006
Revenue Bonds:
Spring Training Facility, Series 2001
Recreational Revenue Ref, Series 2003
Water and Sewer Ref. Rev., Series 1993A
Water and Sewer Ref. Rev., Series 2005
Total
Governmental
Activities
2007
7.4$
3.5
47.6
14.0
2006
8.0$
4.7
50.0
14.5
$ 72.5$ 77.2$
12
Business -type
Activities
2007 2006
4.6 5.1
33.0 34.2
26.9 28.2
64.5$ 67,5$
Total
2007 2006
7.4$ 8.0
3.5 4.7
47.6 50.0
14.0 14.5
4.6 5.1
33.0 34.2
26.9 28.2
137.0$ 144.7
Indian River County, Florida
Management's Discussion and Analysis
For the Year Ended September 30, 2007
The County's General Obligation and Revenue Bonds maintain a "AAA" rating from Standard &
Poor's. It is the County's policy to receive two bond ratings for each issue. Standard & Poor's rating is
required on all issues. A second rating from Fitch or Moody's is also required.
Additional information on the County's long-term debt can be found in Note 12 on pages 73-86 of this
report.
Economic Factors and Next Year's Budgets and Rates
The County's staff and elected officials considered many factors in developing the fiscal year 2007-2008
budget. One major factor was the tax reform legislation passed in June 2007 which required Indian
River County to cut tax revenues by 5% in the General Fund. A reduction of 3% was required in the Fire
District,
Indian River County's local economy consists of construction, tourism, retail, agriculture, and light
manufacturing. Construction activity has fallen sharply as a result of the downturn in real estate. The
unemployment rate increased from 4.7% in 2006 to 7.0% in 2007. The tourist tax revenue decreased
slightly while the population grew by an estimated 3.3% from 2006 to 2007.
Revenue projections for 2007-2008 are quite weak as a result of recent slowdowns in the national and
local economies. The tax roll is increasing by only 3% compared to 25.3% last year. State shared tax
revenues are projected to decrease 2.7%, while half cent sales tax revenue is projected to decrease
13.9%. Interest earnings are expected to decrease slightly as short term rates are projected to fall from
last year's rates. The total proposed budget (with capital project expenditure adjustments) is a decrease
of 2.7% from last year.
With area growth and the department's cost cutting measures, Solid Waste Disposal District (SWDD)
residential rates have decreased 5.3% and the commercial assessment rates decreased 4.9% for the fiscal
year 2007-2008.
Street lighting district assessment rates remained the same except for 5 districts that were able to see a
decrease.
All other rates and user's fees remain unchanged from fiscal year 2006-2007.
Request 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
Attention: Finance Department
180127 th Street
Vero Beach, FL 32960
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BASIC FINANCIAL STATEMENTS
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Indian River County, Florida
Statement of Net Assets
September 30, 2007
ASSETS
Current assets:
Cash and cash equivalents
Investments
Accounts receivable - net
Internal balances
Due from other governments
Interest receivable
Inventories
Prepaid expenses
Current restricted assets:
Cash and cash equivalents
Total current assets
Non-current assets:
Unamortized bond costs
Intangible assets - net
Capital assets - non -depreciable
Capital assets - depreciable
Capital assets - accumulated depreciation
Non-current restricted assets:
Special assessments receivable
Notes receivable
Impact fees receivable
Liens receivable
Deposits
Total non-current assets
Total assets
LIABILITIES AND FUND BALANCES
Current liabilities (payable from current assets):
Accounts payable
Claims payable
Due to other governments
Other deposits held in escrow
Unearned revenues
Accrued compensated absences
Capital leases
Current liabilities (payable from current restricted assets):
Accounts payable
Retainage payable
Accrued interest payable
Closure and maintenance costs payable
Customer deposits
Bonds payable
Total current liabilities
Non-current liabilities:
Accrued compensated absences
Capital leases
Bonds payable, net of premium and discount
Total long-term liabilities
Total liabilities
NET ASSETS
Invested in capital assets, net of related debt
Restricted for:
Capital projects
Debt service
Road projects
Other purposes
Unrestricted
Total net assets
Primary Government
Governmental Business -type
Activities Activities Total
$ 2495630,547 $
57,5741129
149,162
864,416
3,349,546
613,585
(613,585)
8,988,200
46,599
1,313,117
15308,682
150,992
833,768
1,737,211
60
10,833,243
274,280,473
2073301,125
3923669,292
(152,377,655)
106,430
666,667
448,365.859
7223646,332
16,393,375
6,559,000
1,036,390
515,904
5,517,026
2,555,412
8,591
5,288,622
609,621
4,935,000
43,418,941
3,255,831
67,506,835
70,762,666
114318107
37435017758
31,918,851
2,307,225
90,489,139
48,521,726
60,726,026
$ 608,464,725
87,621,284
1503120,483
3,436,549
40,282
49,240,012
330,293,790
(140,356,270)
2,192,721
333,333
1,108,443
293,705
14,000
246,596,565
396,717,048
2,880,914
43,375
2,000
51,021
454,296
74,934
6,617,202
1,801,672
256,976
10,509,598
3,136,502
3,105,000
28,933,490
606,706
35,091
61,421,825
62,063,622
90,997,112
174,54002
83,581,721
258,750
47,338,783
$ 305,719,936
$ 307,204,676
149,162
4,213,962
9,034,799
2,621,799
984,760
1,737,271
98,454,527
424,400,956
3,436,549
40,282
256,541,137
722,9635082
(292,733,925)
2,299,151
1,000,000
1,108,443
293,705
14,000
694,962,424
1,119,363,380
19,274,289
6,559,000
1,079,765
517,904
5,568,047
3,009,708
83,525
6,617,202
7,090,294
866,597
10,509,598
3,136,502
8,040,000
72,352,431
3,862,537
35,091
128,92800
132,8263288
205,178,719
549,042440
115,5001572
2,565,975
90,489,139
48,521,726
108,0641809
$ 914,184,661
The accompanying notes are an integral part of the financial statements.
17
Component
Unit
$ 131,994
498
80,901
665,876
879,269
1,750,068
9,691,788
(4,7785799)
894
6,663,951
7,543,220
22,996
2,325
36,255
191,000
252,576
2,599,400
2,599,400
2,851,976
3,872,657
18,256
611,365
188,966
$ 401,244
Indian River County, Florida
Statement of Activities
For the Year Ended September 30, 2007
Program Revenues
Operating Capital
Charges for Grants and Grants and
Expenses Services Contributions Contributions
Functions/Programs
Primary Government:
Governmental activities:
General government $ 1555065424 $ 75957,770 $ 122,702 $ -
Public safety 42,0505455 5,728,644 150039656 11818,889
Physical environment 34,998,512 1,4475553 66,006 31214,441
Transportation 26,173,989 5,6181055 5,899,280 45720,514
Economic environment 9505024 - 10,667,350 226,711
Human services 135925,599 545,305 1,262,755 -
Culture/Recreation 31,196,252 2,425,679 61539,859 3,461,360
Court related 658705466 2,800,680 -
Interest and fiscal charges 3,220,907 - - -
Total governmental activities 174,892,628 265523,686 253561,608 13,441,915
Business -type activities:
Water and sewer 375518,226 27,541,849 11,626 9,729,371
Solid waste 105331,431 1046,566 58,977 -
Golf course 350845837 31374,772 1,423
Others 3,703,658 3,250,585 802 -
Total business -type activities 54,638,152 465113,772 721828 9,7299371
Total primary government $ 229,530,780 $ 72,637,458 $ 25,6345436 $ 23,171,286
Component Unit:
Housing authority $ 909,767 $ 651,281 $ 1955479 $ 1,319,572
General Revenues:
Property taxes, levied for general purposes
Property taxes, levied for debt service
Sales and use taxes
Franchise fees, levied on gross receipts
State shared tax revenues
Interest earnings
Miscellaneous
Total general revenues
Transfers
Total general revenues and transfers
Change in net assets
Net assets - beginning
Net assets - ending
The accompanying notes are an integral part of the financial statements.
Z3
w
Net (Expense) Revenue and
Changes in Net Assets
Primary Government
Governmental Business -type Component
Activities Activities Total Unit
,y
$ (7,4255952) $ - $ (7,425,952) $ -
(33,499,266) - (33,499,266) -
(30,270,512) - (3072709512) -
(9,936,140) - (9,936,140) -
9,944,037 - 9,944,037 -
(12,117,539) - (12, I 17,539)
(18,769,354) - (18,769,354) -
(4)0695786) - (45069,786) -
(3,220,907) - (3,220,907) -
(1095365,419) - (109,365,419) -
(235,380) (2355380) -
1,674,112 1,674,112 -
291,358 291,358 -
- (4525271) (452,271) -
- 1,277,819 1,277,819 -
(1091365,419) 1,2775819 (108,087,600) -
1,256,565
92,592,309
-
92,592,309
-
7,094,485
-
7,094,485
-
203738,502
-
20,7385502
-
9,732,773
-
95732,773
-
12,3%421
-
12,3685421
-
161004,890
9,209,517
25,2141407
24,536
1,5837343
1341656
137175999
3,079
160,114,723
9,344,173
169,4585896
27,615
(106,295)
106,295
-
-
160,008,428
95450,468
1691458,896
27,615
5056435009
105728,287
619371,296
1,284,180
557,821,716
294,991,649
8529813,365
3,407,064
$ 608,464,725 $
3055719,936 $
914,184,661 $
4,691,244
_� 19
ASSETS
Cash and cash equivalents
Investments
Accounts receivable - net
Special assessments receivable
Due from other funds
Due from other governments
Inventories
Interest receivable
Note receivable
Prepaid expenses
Advance to other funds
Total assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Retainage payable
Due to other funds
Due to other governments
Deferred revenues
Other deposits held in escrow
Advance from other funds
Total liabilities
Fund balances:
Reserved for:
Debt service
Capital projects
Other purposes
Unreserved, reported in:
General fund
Special revenue funds
Total fund balances
Total liabilities and fund balances
Indian River County, Florida
Balance Sheet
Governmental Funds
September 30, 2007
Secondary
Impact Roads
General Fees Construction Transportation
$ 54,004,572 $ 77,8941926 $ 21,7513409 $ 7,677,797
1491162 - - -
645,312 3,525 874
- 106,430
723,000 - -
1,287,968 1877713 3175673 234,459
13,591
666,667 -
57,801 - 840
- 712,000 -
$ 56,881,406 $ 785082,639 $ 2374513274 $ 8,0201400
$ 31672,085 $
539,852
1,008,178
79,836
515,274
744,225
6,559,450
3,424,081 $
1,539,443
4,963,524
526,069 $
591,854
1,117,923
666,667
712,000
490,244
1,240
121,689
613.173
50,3213956 - - -
- 73,119,115 205954,684 7,407,227
50,3215956 733119,115 225333,351 754075227
$ 56,881,406 $ 78,0823639 $ 233451,274 $ 81020,400
The accompanying notes are an integral part of the financial statements.
20
J
Emergency SHIP Hurricane Optional Other Total
Services Land Housing Sales Governmental Governmental
District Acquisition Recovery Grant Tax Funds Funds
$ 121792,353 $ 18,159,841 $ 657113293 $ 19,7513178 $ 23,761,100 $ 242,504,469
- 149,162
87 27,009 51728 6825535
_ - 106,430
334,690 - 106,747 17164,437
1312897 2,7011190 23039,442 67900,342
_ - 13,591
7,781 77781
- 666,667
351 - 214 593206
_ _ - 7445225 - 1,456,225
$ 131259,378 $ 18,1595841 $ 6,7117293 $ 23122302 $ 25,9215012 $ 2531710,845
$ 15265,425 $
65,192 $ 5535906 $
4,0661103 $
1,8661727 S
15,9295832
_
- 118,004
2,3949669
6433412
512887622
_
7235000
172625852
_
_
28,212
110365390
126,589
5,3085783
31,666
329,868
57998,431
630
-
515,904
m-
-
744,225
11392,014
65,192 5,9811323
61492,438
31591,219
301776,256
- 2,9161846 219165846
151986,939 21021,031 18,674,637
744,225 - 13456,225
- 501321,956
11,8673364 1870945649 729,970 17,3915916 1495564,925
1178675364 18,0943649 7297970 1677315164 2213295793 222,934,589
$ 13,259,378 $ 18,159,841 $ 6,7111293 $ 231223,602 $ 25,9211012
Amounts reported for governmental activities in the statement of net assets
are different because:
Capital assets used in governmental activities are not financial resources,
therefore, are not reported in the fund. 4461952,184
Long-term liabilities, including bonds payable ($72,441,835) and accrued
compensated absences ($5,758,145), and lease payable ($8,591) are not due (78,208,571)
and payable in the current period and, therefore, are not reported in the funds.
Accrued general long-term debt interest expenses are not financial uses and,
therefore, are not reported in the fund. (609,621)
Special assessment receivables are not financial resources in the current
period and, therefore, are reported as unearned revenues. 10,281
Accrued interest on special assessments is not recognized in the current
period because the resources are not available, therefore, not
reported in the fund. 78,958
Internal service funds are used by management to charge the costs of certain
activities, such as insurance and fleet services, to individual funds. The
assets and liabilities of the internal service funds are included in
governmental activities in the statement of net assets. 1355397990
Grant revenues are not recognized in current period because the resources
are not available, therefore, are not reported in the fund. 2,5407537
Interest revenues are not recognized in current period because the resources
are not available, therefore, are not reported in the fund. 15226,378
Net assets of governmental activities $ 6081464,725
21
Indian River County, Florida
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended September 30, 2007
General
Impact
Fees
Secondary
Roads
Construction
Transportation
REVENUES
Taxes $ 77,004,626 $ $ 3,482,514 $
Licenses and permits 7455754 - 150,858
Intergovernmental 13,099,726 165,564 2,524,623 32973,531
Charges for services 11,655,766 1,182,713 149,446
Fines and forfeitures 2,048,910
Special assessments - 77007,204 1595683 6408
Interest 4,2853934 4,220,948 13120,403 387,471
Miscellaneous 8131297 1,416,135 683,294 454,634
Total revenues 109,654,013 1209,851 9,153,230 5,180,548
EXPENDITURES
Current:
General government
Public safety
Physical environment
Transportation
Economic environment
Human services
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)
Transfers in
Transfers out
Lease purchase proceeds
Total other financing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
22,90502
226,834
1,000,575
41,76100
-
-
509,780
288,088
2,355,845
22,061,100
10,927,104
13,8941549
660,568
-
4,598,075
-
10,552,292
1,426,341
5,836,682
255,876
11,574
23,714,275
10,927,104
15,183,212
89,448,444
20,205,569
(10,904,424)
(1,773,874)
(10,002,664)
832,908
(16,281,870) (13434,878)
264,467
(15,184,495) (1,434,878)
51021,074 (127339,302) (177735874)
11,943,548
11,943,548
1,940,884
45,300,882 85,458,417 24,107,225 5,4663343
$ 501321,956 $ 73,119,115 $ 22,3331351 $ 7,4071227
The accompanying notes are an integral part of the financial statements.
22
EM
w
Emergency SHIP Hurricane Optional Other Total
Services Land Housing Sales Governmental Governmental
District Acquisition Recovery Grant Tax Funds Funds
$ 26,099,696 $ $ $ 14,549,834 $ 93021,399 $ 1305158,069
w _ _ - 896,612
86,900 3,613,024 5,700,843 4067349 20,281,514 54,252,074
304;841 - - 2,324,763 18,9975529
10,121 344,062 2403,093
_ - 269,330 7,5003825
935,083 2085873 405,712 1,041,535 13291,359 15,777,318
2,728 - 30483 955039 3495,610
30,819,369 5,701,897 6,106,555 205428,201 33,627,466 233,481,130
681,954 24,815,255
27,814,374 3,331,588 72,907:822
31,129,189 2,397,274 34,3241331
265,082 49,50300
3075659 968,227
55700,843 3,5631545 13,8623463
- 11,772,540 23,751,173
813,042 6,649,724
0
23
4,61500
4,8701876
535
-
3,243,658
3,255,767
-
393450,871
3,039,126
42,489,997
27,814,374
31,129,724
5,700,843
391450,871
34,030,468
277,399,315
35004,995
(25,427,827)
405,712
(19,022,670)
(403,002)
(43,9183185)
-
6,1563096
697,176
19,629,728
(15647,163)
(372,112)
(19,7361023)
_
264,467
(1,6471163)
-
611565096
325,064
158,172
1,357,832
(25,4271827)
405,712
(12,8662574)
(77,938)
(43,760,013)
10,509,532
43,522,476
324,258
295597,738
22,4075731
266,69402
$ 11,867,364 $
18,094,649 $
729,970 $
16,731,164 $
22,329,793 $
2227934,589
0
23
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, 2007
Net change in fund balances - total governmental funds $ (43,760,013)
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 107,776,962
Less current year loss on assets (1,501,635)
Less current year depreciation (14,6869564) 91,588,763
Repayments of bond principal and capital lease principal are expenditures in the
governmental funds, but the repayment reduces long-term liabilities in the statement of
net assets.
Bond principal payment 4,61500
Bond premium payment 93,225
Capital lease principal payment 255,876 4,9643101
Changes in accrued compensated absences do not require the use of current financial
resources and, therefore, are not reported as expenditures in governmental funds. (396,475)
Governmental funds report interest expenditures based on when they are paid. The
statement of activities reports interest expense as it is incurred. This is the net number
of the prior year accrual and the current year accrual.
Accrued bond interest expense 34,860
Some revenues reported in the governmental funds have been recognized as revenues in
prior fiscal year in the statement of activities. (85,868)
Internal service funds are used by management to charge the costs of insurance and
fleet services to individual funds. The net costs of the internal service funds are
reported with governmental activities. 3,973,053
Governmental funds reportnon-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 prior year accrual and current year accrual. (4,7827638)
Capital lease proceeds provide current financial resources to governmental funds,
but the capital lease increases liabilities in the statement of net assets. (264,467)
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 prior year accrual and current year accrual. (628,307)
Change in net assets of governmental activities $ 50,64309
The accompanying notes are an integral part of the financial statements.
24.
Indian River County, Florida
Statement of Revenues, Expenditures, and
Changes in Fund Balances - Budget and Actual
General Fund
For the Year Ended September 30, 2007
REVENUES
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
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 fiscal charges
Total expenditures
Excess of revenues over expenditures
Budgeted Amounts
Original Final
$ 73,982,675 $
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Lease purchase proceeds
Total other financing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
831,250
12,134,414
13,357,465
1,467,287
1,405,250
154,474
103,332,815
24,079,894
43,356,777
492,443
988,410
462,415
4,883,709
10,841,334
6,186,883
91,291,865
12,040,950
157,356
(15,724,323)
(15,5665967)
(3,526,017)
73,982,675
831,250
14,050,828
M9015820
1,467,287
1,462,251
1,901,540
104,597,651
25,300,499
42,704,972
635,105
2,733,747
693,854
4,809,021
11,671,592
6,277,5 81
255,876
11,574
95,093,821
9,503,830
684,633
(17,267,140)
264,467
(165318,040)
(658145210)
335265017 65814,210
Actual
Amounts
$ 773004,626
745,754
13,099,726
11,655,766
2,048,910
4,285,934
813,297
109,654,013
22,905,892
41,761,860
509,780
2,355,845
660,568
4,598,075
10,552,292
5,836,682
255,876
11.574
89,448,444
20,205,569
832,908
(167281,870)
264,467
(15,1841495)
Variance with
Final Budget
Positive
(Negative)
$ 3,021,951
(85,496)
(951,102)
753,946
581,623
2,823,683
(15088,243)
5,056,362
2,394,607
943,112
125,325
377,902
33,286
210,946
1,119,300
440,899
5,645,377
10,701,739
148,275
985,270
1,133,545
5,021,074 $ 115835,284
45,300,882
50,321,956
The accompanying notes are an integral part of the financial statements.
25
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, 2007
REVENUES
Intergovernmental
Special assessments
Interest
Miscellaneous
Total revenues
EXPENDITURES
Current:
General government
Public safety
Transportation
Culture/recreation
Total expenditures
Excess of revenues over (under)
expdenitures
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
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
$ - $ 302,250 $ 165,564 $ (136,686)
19,740,713 19,7409713 7,007,204 (12,7339509)
95000 9509000 45220,948 312709948
1485167 114165135 1,267,968
2056905713 21,1415130 12,809,851 (8,331,279)
519,798
718,591
56,808,105
1,485,000
59.5 31,494
(38,840,781)
(3,7329863)
(3,732,863)
(421573,644)
519,798
61,748,149
2,711,605
64,979,552
(43,8381422)
(498019454)
(45801,454)
(4836399876)
226,834
22,061,100
1,426,341
23.714.275
(101904,424)
(1,434,878)
(1,434,878)
292,964
39,687,049
1,285,264
41,265,277
32,933,998
3,366,576
3,366,576
(12,339,302) $ 36,3001574
42,573,644 48,639,876 85,458,417
$ - $ - $ 73,1199115
The accompanying notes are an integral part of the financial statements.
26
c9
0
Indian River County, Florida
Statement of Revenues, Expenditures, and
Changes in Fund Balances - Budget and Actual
Secondary Roads Construction Fund
For the Year Ended September 30, 2007
Budgeted Amounts
Original Final
REVENUES
Taxes $ 3,6465772 $ 3,646,772 $
Intergovernmental - 29559,060
Charges for services - 53,397
Special assessments - 13,840
Interest 451,250 626,250
Miscellaneous - 448,801
Total revenues 41098,022 7,348,120
EXPENDITURES
Current:
Transportation 251802,326 301515,778
Total expenditures 255802,326 301515,778
Excess of revenues over (under)
expdenitures (21,704,304) (23,1673658)
OTHER FINANCING USES
Transfers out - (15498,622)
Total other financing uses - (19498,622)
Net change in fund balances (21,704,304) (24,666,280)
Fund balances at beginning of year
Fund balances at end of year
Actual
Amounts
3,482,514
2,524,623
1,182,713
159,683
1,120,403
683,294
9,153,230
10,927,104
10,927,104
(1,773,874)
Variance with
Final Budget
Positive
(Negative)
$ (164,258)
(34,437)
1,129,316
145,843
494,153
234,493
1,805,110
19,588,674
19.5 8 8.674
21,393,784
1,498,622
1,498,622
(1,773,874) $ 229892,406
21,7045304 245666,280 249107,225
The accompanying notes are an integral part of the financial statements.
27
Indian River County, Florida
Statement of Revenues, Expenditures, and
Changes in Fund Balances - Budget and Actual
Transportation Fund
For the Year Ended September 30, 2007
REVENUES
Licenses and permits
Intergovernmental
Charges for services
Special assessments
Interest
Miscellaneous
Total revenues
EXPENDITURES
Current:
General government
Physical environment
Transportation
Total expenditures
Excess of revenues over (under) expenditures
OTHER FINANCING SOURCES
Transfers in
Total other financing sources
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Budgeted Amounts
Original Final
$ 190,000
2,620,727
129,675
142,500
100,700
810,103
3,993,705
1,230,954
637,402
14,973,377
16,841,733
(12,8485028)
12,943,548
12,943,548
95,520
(95,520)
$ 190,000
2,620,727
129,675
142,500
100,700
840,103
4,023,705
1,289,853
636,200
15,882,557
17,808,610
(1357845905)
12,943,548
12,943,548
(841,357)
841.357
Actual
Amounts
$ 150,858
3,973,531
149,446
64,608
387,471
454,634
5,180,548
1,000,575
288,088
13,894,549
15,183,212
(10,002,664)
11,943,548
11,943,548
Variance with
Final Budget
Positive
(Negative)
$ (39,142)
1,352,804
19,771
(77,892)
286,771
(385,469)
1,156,843
289,278
348,112
1,988,008
2,625,398
3,782,241
(15000,000)
(1,000,000)
1,940,884 $ 217829241
5,466,343
7,407,227
The accompanying notes are an integral part of the financial statements.
M
0
28 ,
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, 2007
REVENUES
Taxes
Intergovernmental
Charges for services
Fines and forfeitures
Interest
Miscellaneous
Total revenues
EXPENDITURES
Current:
Public safety
Debt service:
Principal
Interest and fiscal charges
Total expenditures
Excess of revenues over (under) expenditures
OTHER FINANCING USES
Transfers out
Total other financing uses
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
$ 2557225953 $ 255722,953 $ 26,0997696 S 376,743
195000 86,035 86,900 865
3,246,606 3,246,606 304,841 4387235
10,121 10,121
307,800 324,000 9351083 611,083
20,714 2621728 21728 (260,000)
29,3175073 29,6421322 30,8195369 1,177,047
26,836,160 331237,139 27,814,374 5,422,765
89,043 895043 - 89,043
90,210 90,210 - 90,210
27,015,413 331416,392 271814,374 516021018
25301,660 (3,774,070) 35004,995 69779,065
(1,363,260) (1,647,704) (1,647,163) 541
(1,363,260) (1,647,704) (19647,163) 541
938,400 (5,421,774) 1,357,832 $ 6,7791606
(938,400) 5,421,774 10,509,532
111867,364
The accompanying notes are an integral part of the financial statements.
29
REVENUES
Intergovernmental
Interest
Total revenues
EXPENDITURES
Current:
Physical environment
Debt service:
Interest and fiscal charges
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Indian River County, Florida
Statement of Revenues, Expenditures, and
Changes in Fund Balances - Budget and Actual
Land Acquisition Fund
For the Year Ended September 30, 2007
E
Budgeted Amounts
Original Final
Variance with
Final Budget
Actual Positive
Amounts (Negative)
200,750 $ 3,6135024 $ 3,4129274
2,088,873 2,088,873
2003750 5,701,897 595019147
251050,000 32,2003214
536
25,050,000 32,2005750
(25,0501000) (3250005000)
31,129,189
535
31,129,724
1,071,025
1
1,071,026
(25,427,827) $ 6,572,173
25,0501000 321000,000 431522,476
18,0945649
0
The accompanying notes are an integral part of the financial statements.
Indian River County, Florida
Statement of Revenues, Expenditures, and
Changes in Fund Balances - Budget and Actual
SHIP Hurricane Housing Recovery Grant Fund
For the Year Ended September 30, 2007
REVENUES
Intergovernmental
Interest
Total revenues
EXPENDITURES
Current:
Human services
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Budgeted Amounts
Original Final
$ 31550,000 $
1151185840 $
35550,000 11,118,840
31550,000 8,550,000
3,550,000 8,5501000
2,568,840
(2,5685840)
Actual
Amounts
5,700,843 $
405,712
6,106,555
5,700,843
5,700,843
Variance with
Final Budget
Positive
(Negative)
(55417,997)
405,712
(5,012,285)
2,849,157
2,849,157
405,712 $ (2,163,128)
324,258
7295970
The accompanying notes are an integral part of the financial statements.
31
Ott 7r t�
32
Indian River County, Florida
Statement of Net Assets
Proprietary Funds
September 30, 2007
Business -type Activities - Enterprise Funds Governmental
Solid Waste Other Activities
Disposal Golf County Enterprise Internal
District Course Utilities Funds Total Service Fund
ASSETS
Current assets:
Cash and cash equivalents $ 18,110,302 $ 2,854 S 34,340,820 $ 5,120,153 $ 57,574,129 S 17,959,321
Accounts receivable - net 1912239 - 3,1582307 3,349,546 1811881
Due from other funds 98,415 - - - 981415 -
Due from other governments 28,578 12,569 41650 802 46,599 18,445
Interest receivable 178,821 - 1,1291861 - 113081682 -
Inventories 491648 7431379 405741 8331768 137,401
Prepaid expenses - - - 60 60 136787005
Current restricted assets:
Cash and cash equivalents 14.780,748 53,814 72,673,728 112,994 87,621,284 -
Total current assets 33.3889103 118,885 112,050,745 51274,750 150,8321483 19,975,053
Non-current assets:
Unamortized bond costs - 3317047 3,105,502 3,436,549
Intangible assets - net 405282 - - 403282 -
Capital assets - non -depreciable 17.123,169 669,630 311447,213 - 49,2409012 3465620
Capital assets - depreciable 161937,524 81559,547 302,3697524 2,4271195 330,2937790 474,727
Capital assets - accumulated depreciation (8,806,899) (11784,944) (129,1141434) (6495993) (140,356,270) (180,769)
Non-current restricted assets:
Special assessments receivable - - 231927721 - 211923721
Notes receivable - - 3331333 - 3333333
Impact fees receivable - - 111081443 - 11108,443
Liens receivable - - 2935705 - 293,705
Deposits - 11000 13,000 - 14,000
Total non-current assets 25,2945076 71776,280 211,749,007 1,777,202 246,596,565 640,578
Total assets 58,682,179 718957165 323,799,752 7,0511952 397 429,048 20,615,631
LIABILITIES
Current liabilities (payable from current assets):
Accounts payable 8661106 141,328 15785,986 87,494 2,880,914 463,543
Claims payable 615595000
Due to other governments 95776 241284 93315 43,375 -
Other deposits 21000 - - 21000 -
Unearned revenues 61000 441255 766 51,021 -
Capital leases - 74,934 74,934 -
Accrued compensated absences 85,673 357043 258,827 74,753 454,296 341755
Total current liabilities (payable from current assets) 9577779 3071336 210697863 171,562 31506,540 71057,298
Current liabilities (payable from restricted assets)
Accounts payable - - 61617,202 - 6,6177202 -
' Retainage payable - - 11801,672 - 178017672 -
Accrued interest payable - 13,397 2431579 - 256,976 -
Bonds payable - 4851000 29620,000 - 31105,000 -
Closure and maintenance costs payable 10,5097598 - - 1015097598 -
Customer deposits 178,500 21885,431 72,571 3,136,502 -
Total current liabilities (payable from restricted assets) 101688,098 498,397 14,167,884 72,571 25,426,950
Non-current liabilities:
Accrued compensated absences 112,258 797115 299,655 1151678 6061706 183343
Advance from other funds 712,000 - 712,000 -
Capital leases 35,091 35,091
Bonds payable - net of unamortized discount/premium - 47133,728 57,2881097 61,4211825
Total non-current liabilities 112,258 41959,934 571587,752 115,678 62,7751622 18,343
Total liabilities 11,7587135 51765,667 73,8257499 3597811 91,709,112 75075,641
0
NET ASSETS
Invested in capital assets, net of related debt 25,2531794 2,7151480 144,7941206 1,7771202 174,540,682 640,578
Restricted for:
Debt service - 40,417 2187333 - 258,750 -
Capital projects - 83,5811721 - 83,581,721 -
Unrestricted 21,6701250 (626,399) 21,379,993 4,914,939 47,3385783 12,899,412
Total net assets S 46,924,044 $ 21129,498 $ 249,9745253 $ 61692.141 S 3051719,936 $ 131539,990
The accompanying notes are an integral part of the financial statements.
Indian River County, Florida
Statement of Revenues, Expenses, and Changes in Fund Net Assets
Proprietary Funds
For the Year Ended September 30, 2007
OPERATING REVENUES
Charges for services
Charges for services pledged as
security for revenue bonds
Total operating revenues
OPERATING EXPENSES
Personal services
Material, supplies, services and
other operating
Depreciation
Total operating expenses
Operating income (loss)
NONOPERATING REVENUES (EXPENSES)
Interest income
Interest income pledged as
security for revenue bonds
Operating grants
Gain on disposal of equipment
Interest expense
Bond amortization expense
Intangible amortization expense
Loss on disposal of equipment
Total nonoperating revenues (expenses)
Income before transfers and
capital contributions
Capital contributions
Capital contributions pledged as
security for revenue bonds
Transfers in
Transfers out
Change in net assets
Total net assets - beginning
Total net assets - ending
Business -type Activities - Enterprise Funds
Solid Waste
Disposal Golf County
District Course Utilities
$ 11,946,566 $ - $
3,374,772
11,946,566 3,3745772
2,822,334
6,719,521
779,709
10,321,564
1,625,002
2,357,398
58,977
102,266
(9,867)
2,508,774
4,133,776
(2,679)
4,131,097
859,918
1,810,391
196,030
2,866,339
508,433
21,867
1,423
210
(176,993)
(41,505)
(194,998)
313,435
313,435
27,541,849
27,541,849
7,895,192
13,050,038
13,257,797
34,203,027
(6,661,178)
6,576,873
11,626
25,480
(3,031,300)
(276,476)
(7,423)
3,298,780
(3,362,398)
(8,906,491)
18,635,862
(65,818)
6,301,155
42,7925947 1,816,063 243,6735098
$ 46,924,044 $ 2,129,498 $ 249,9749253
The accompanying notes are an integral part of the financial statements.
34
n
Governmental
Other Activities
Enterprise Internal
Funds Total Service Funds
$ 39250,585 $ 15,197,151 $ 245039,593
30,916,621 -
3,250,585 46,113,772 24,039,593
2,513,724
1,015,068
173,872
3,702,664
(452,079)
14,0915168 2,8491861
22,595,018 18,034,526
143407,408 38,049
51,093,594 20,922,436
(45979,822) 351171157
253,379 25610,777 8551879
- 65598,740 -
802 72,828 17
6,700 134,656 -
- (3,208,293) -
(317,981) -
(9,867) -
(994) (85417) -
259,887 5,872,443 855,896
(192,192) 892,621 399733053
- (8,906,491) -
18,6355862 -
224,730 224,730 -
(495938) (118,435) -
(17,400) 105728,287 31973,053
6,709,541 294,991,649 995669937
$ 6,692,141 $ 3051719,936 $ 137539,990
35
Indian River County, Florida
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2007
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 in
Transfers out
Operating grants
Proceeds from advance from other funds
Net cash provided by (used in) noncapital
financing activities
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Principal payments - bonds/notes
Principal payments - capital leases
Interest paid on long-term debt
Proceeds from sales of capital assets
Purchase of capital assets
Bond paying agent fees
Bond issuance costs
Capital contributed by others
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 cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
Classified as:
Current assets
Restricted assets
Totals
Business -type Activities Enterprise Funds
Solid Waste
Disposal Golf County
District Course Utilities
$ 1352409770
(6,2525403)
(2,803,752)
4,184,615
(2,679)
(2,679)
103,000
(35093,223)
(2,9903223)
2,178,577
2,178,577
3,370,290
29,520,760
$ 325891,050
$ 18,110,302
14,780,748
$ 32,8919050
$ 3,3875130
(1,880,990)
(854,543)
651,597
854
58,000
58,854
(475,000)
(83,091)
(140,957)
210
(4,056)
(36,876)
(739,770)
21,867
21,867
(7,452)
64,120
$ 56,668
$ 2,854
53,814
$ 56,668
The accompanying notes are an integral part of the financial statements.
36
$ 27,4245172
(125412,427)
(7,883,297)
7,128,448
(65,818)
6,976
(58,842)
(2,505,000)
(3,0415150)
25,480
(17,296,145)
(73,181)
2,403,890
(20,4865106)
6,012,000
6,012,000
(7,404,500)
114,4195048
$ 10750147548
$ 345340,820
72,673,728
$ 107,014,548
M
Governmental
Other Activities
Enterprise Internal
Funds Total Service Funds
$ 3,250,661 $ 47,302,733 $ 25,329,109
(1,073,945) (21,619,765) (185140,831)
,,o (2,490,291) (14,031,883) (2,852,676)
(313,575) 11165105 4,3353602
224,730 2241730 -
(49,938) (1185435)
- 7,830 10
58,000 -
174,792 172,125 10
18,042
(51,874)
(2,980,000)
(83,091)
(3,182,107)
146,732
(20,4455298)
(36, 876)
(73,181)
2,403,890
(574,364)
(33,832) (24,249,931) (574,364)
253,379 8,4651823 8555879
253,379 8,465,823 855,879
801764 (3,9607898) 4,617,127
571529383 149,1569311 13,3421194
$ 5,2339147 $ 1457195,413 $ 17,959,321
$ 55120,153 $ 571574,129 $ 171959,321
112,994 87,621,284 -
$ 5,2331147 $ 145,195,413 $ 17,959,321
Continued
37
Indian River County, Florida
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2007
Business -type Activities Enterprise Funds
Solid Waste
Disposal Golf County
District Course Utilities
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
Operating income (loss) $ 19625,002 $ 508,433 $ (6,661,178)
Adjustments to reconcile operating income to net cash
provided by (used in) operating activities:
Work in progress reclassified as expense
Depreciation
Capitalized self -incurred expenses
(Increase) Decrease in assets:
Accounts receivable
Due from other funds
Due from other governments
Inventories
Impact fees receivable
Liens receivable
Prepaid expenses
Increase (Decrease) in liabilities:
Accounts payable
Due to other governments
Other deposits held in escrow
Retainage payable
Customer deposits
Closure and maintenance costs payable
Unearned revenues
Claims payable
Accrued compensated absences
Total adjustments
Net cash provided by (used in) operating activities
NONCASH CAPITAL AND RELATED
FINANCING ACTIVITIES
- - 249,007
779,709 196,030 1352575797
(52,662)
213,842 - (225,162)
(10,556)
1,131,346 (1,500) -
1,785 100,117
328,844
- - (131,785)
200 3,261
(2945709)
(735471)
266,873
-
887
18,353
-
2,000
-
(3,173)
-
-
(46,428)
-
(87,840)
765,000
-
-
65000
119858
(1,734)
18,582
5,375
64,557
2,559,613 1439164 131789,626
$ 4,184,615 $ 651,597 $ 79128,448
Change in fair value of investments $ 460,200 $ 183 $ 1,430,696
Contributed property, plant and equipment $ - $ - $ 7,029,734
Capital assets purchased through accounts payable $ - $ - $ 69653,641
The accompanying notes are an integral part of the financial statements.
d
Other
Enterprise
Funds
Total
Governmental
Activities
Internal
Service Funds
$ (452,079) $ (459799822) $ 31117,157
249,007 -
173,872 14,407,408 38,049
(52,662) -
77 (11,243) 1,289,576
(10,556) -
- 111299846 (60)
(45786) 97,116 (25,841)
328,844 -
(131,785) -
(60) 35401 (855,855)
(51,705) (1535012) 82,391
(2,326) 16,914 -
(1) 1,999 -
(3,173)
(134,268) -
765,000 -
16,124 -
693,000
235433 111,947 (2,815)
1381504 16,63 0,907 1,218,445
$ (313,575) $ 11,651,085 $ 4,335,602
$ 433796 $ 11934,875 $ 761447
$ - $ 7,029,734 $ -
$ - $ 6,6535641 $ -
Indian River County, Florida
Statement of Fiduciary Assets and Liabilities
Agency Fund
September 30, 2007
ASSETS
Cash and cash equivalents
Total assets
LIABILITIES
Accounts payable
Due to other governments
Other deposits held in escrow
Total liabilities
$ 10,0991396
$ 10,099,396
$ 345,670
4,860,509
4,893,217
$ 10,0995396
The accompanying notes are an integral part of the financial statements.
.N
in
Note
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2007
Page Note
1. Summary of Significant Accounting 9. Interfund Balances................................70
Policies . ......... .......... ............... ............... 42-52 10. Interfund Transfers ......... ..... .................. 71
Reporting Entity ...... . ......... ................. 42-43 11. Receivable and Payable Balances,...I.... 72-73
Measurement Focus and 12. Long-term Liabilities.... .... 0.0.11,111.11 ..... 0.73-86
Basis of Accounting .................... .43-46 Business -type Activities..................... 73-77
Basis of Presentation. .... I'll ......... 1.11"..47-48 Recreational Revenue Refunding
Assets, Liabilities and Net Assets Bonds, Series 2003'.. ...... 11 ........ 0 ... 73-74
or Equity.. .. 1. 1 1 1.. 0. 0. 1 1 1 1 ................ 0 ... 48-52 Water and Sewer Revenue
Cash and Cash Equivalents.............48 Bonds, Series 1993A.. ........ .......... 74-75
Investments.....................................49 Water and Sewer Revenue Refunding
Allowance for Doubtful Accounts ..49 Bonds, Series 2005 .......................76
Receivables and Payables ...............49 Annual Debt Service Payments -
'� Inventories.......................................49 Business -type Activities... ............ 77
Prepaid Expenses ............................49 Governmental Activities..... ..... 1.11, .... 077-81
Restricted Assets .............................50 Limited General Obligation Bonds.77-78
Intangible Assets .............................50 General Obligation Bonds ...... 0 ........ 78-79
Capital Assets ................... ........... ....50-51 Spring Training Facility Revenue
Capitalization of Interest ........ 0.0 .... 4.51 Bonds .. .... ........... ......................... .79-81
Unearned Revenues ........................51 Annual Debt Service Payments -
Accrued Compensated Absences ....51 Governmental Activities ..............81
Obligation for Bond Arbitrage Housing Authority Revenue Bonds ......82-83
Rebate..........................................51 Annual Debt Service Payments -
Landfill Closure Costs ....................52 Housing Authority...... 0 .... 0 ......83
Unamortized Bond Costs ................52 Summary of Defeased Debt
Unamortized Bond Discounts Outstanding........................................83
and Premiums.. ........... o.o ............... 52 Capital Leases... ...... 0 ..... 0.. 0. 0 .... 0 ........... 0.84
Capital Contributions ......................52 Compensated Absences ........................84
2. Reconciliation of Government -wide Changes in Long-term Liabilities .........85
and Fund Financial Statements.... ...... 53-61 Conduit Debt Obligations .....................86
3. Stewardship, Compliance and 13. Provision for Closure Costs ........ ..... .... .86-87
Accountability .... .... .... ......... ...... .........62-63 14. Pension Plans ..... .............. ................. ....87-89
Budget and Budgetary Accounting .62-63 Florida Retirement System ... ............. 87-89
4. Cash and Cash Equivalents ..... ......... .....63-66 15. Operating Leases ..... ...... .......... ............ ..89-90
Deposits. ........ 0 ... 0 ...... 0 . 0 ..... 0 ..... 0 . 0 ...... 63 16. Fund Equity... ................ ............ .... ........ 90-91
Accrued Interest..............................64 17. Fund Equity Deficit ... ..... ........ ........... .... 91
Investments ...... .... .......... ........ ....... ..64-66 18. Risk Management ... ............. ........ ......... 92-93
5. Property Tax Revenues .........................66 19. Commitments and Contingencies .........93-94
6. Capital Assets. .......... o..o..111 ...... 00 ... I ...... 0.67-68 Litigation ... ...... ...................... ............. 93
7. Restricted Cash and Cash Equivalents Contracts and Other
and Investments.................................69 Commitments. ....... ...................93-94
8. Payable from Restricted Assets ............69 Grants.................................................94
20. Subsequent Events ..... ............... .....94-96
41
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2007
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 139,757. The County is governed by the Board of County
Commissioners and five elected constitutional officers (Clerk of the Circuit Court, 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 for 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. Pronouncements of the Financial Accounting Standards Board (FASB) issued after
November 30, 1989 are not applied in the preparation of the financial statements of the enterprise funds
in accordance with GASB Statement 20. The GASB periodically updates its codification of the existing
Governmental Accounting and Financial Reporting Standards which, along with subsequent GASB
pronouncements (Statements and Interpretations), constitutes GAAP for governmental units.
A. Reporting Entity
The concept underlying the definition of the reporting entity is that elected officials are accountable to
their constituents for their actions. The reporting entity's financial statements should allow users to
distinguish between the primary government (the County) and its component units. However, some
component units, because of the closeness of their relationships with the County, should be blended as
though they are part of the County. Otherwise, most component units should be discretely presented.
As required by generally accepted accounting principles, the financial reporting entity consists of (1)
the primary government (the County), (2) organizations for which the County is financially
accountable, and (3) other organizations for which the nature and significance of their relationship with
the County are such that exclusion would cause the reporting entity's financial statements to be
misleading or incomplete. The County is financially accountable if it appoints a voting majority of the
organization's governing body and (a) it is able to impose its will on that organization or (b) there is a
potential for the organization to provide specific financial benefits to, or impose specific financial
burdens on, the County.
The County may be financially accountable if an organization is fiscally dependent on the County
regardless of whether the organization has (a) a separately elected governing board, (b) a governing
board appointed by a higher level of government, or (c) a jointly appointed board. Based on these
criteria, County management examined all organizations, which are legally separate in order to
determine which organizations, if any, should be included in the County's financial statements.
Management determined that the Solid Waste Disposal District, the Emergency Services District, and
the Indian River County Housing Authority were the only organizations that should be included in the
County's financial statements as component units.
42 0.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 1— SUMMARY OF SIGNIFCANT ACCOUNTING POLICIES — Continued
A. Reporting Entity — Continued
Blended Component Units
Solid Waste Disposal District (SWDD) — Created pursuant to County Ordinance 87-67, the Board of
County Commissioners serves as the Board for the SWDD and 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 Board for the EMS and 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.
Discretely Presented Component Unit
Indian River County Housing Authority (IRCHA) — Created pursuant to Chapter 421, Florida Statutes,
the IRCHA, whose Board is appointed by the State of Florida, provides subsidized public housing in
accordance with federal legislation. The County provides the primary funding for the operations of the
IRCHA, maintains budgetary control over the operating costs of the IRCHA, and provides use of
certain furniture and equipment at no charge. Appropriations from the County totaled $222,422 and the
related actual operating costs totaled $195,479 for the fiscal year. Since the IRCHA is fiscally
a� dependent on the County, it has been reported in a separate column in the government -wide financial
statements to emphasize that it is legally separate from the government.
Ae Separate financial statements for the Indian River County Housing Authority are available in the
administrative office located at 1028 20th Place, Vero Beach, Florida 32960.
Be 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
4
43
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
Be Measurement Focus and Basis of Accounting - Continued
1. Government -wide Financial Statements
Government -wide financial statements display information about the reporting government as a whole,
except for its fiduciary activities. These statements include separate columns for the governmental and
business -type activities of the primary government (including its blended component units), as well as
its discretely presented component unit. 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. Likewise, the primary government is reported
separately from the legally separate component unit for which the primary government is financially
accountable.
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, 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 expenditure. Proceeds of long-term debt are recorded as liabilities 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 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.
44
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
B. Measurement Focus and Basis of Accounting - Continued
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, liabilities, fund
equity, revenues and expenditures or expenses, as appropriate. Governmental resources are allocated to
and accounted for in individual funds based upon the purposes for which they are to be spent and the
means by which spending activities are controlled.
Fund financial statements for the primary government's governmental, proprietary, and fiduciary funds
are presented after the government -wide financial statements. These statements display information
about major funds individually and nonmajor funds in the aggregate for governmental and enterprise
funds. The fiduciary statement includes financial information for the agency fund. The agency fund of
the County primarily represents assets held by the County in a custodial capacity for other individuals
or governments.
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, licenses, 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 and current liabilities 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 current assets.
Accordingly, they are said to present a summary of sources and uses of "available spendable resources"
during a period.
W 45
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2007
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
Be Measurement Focus And Basis Of Accounting - Continued
2. Fund Financial Statements - Continued
Governmental Funds — Continued
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 notes receivable and
advances to other funds are offset by fund balance reserve accounts.
Because of their spending measurement focus, expenditure recognition for governmental fund types
exclude amounts represented by noncurrent liabilities. Since they do not affect net current assets, such
long-term amounts are not recognized as governmental fund type expenditures or fund liabilities.
Amounts expended to acquire capital assets are recorded as expenditures in the year that resources were
expended, rather than as fund assets. The proceeds of long-term debt are recorded as an other financing
source rather than as a fund liability. 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 and all liabilities (whether current or
noncurrent) associated with their activity are included on their balance sheets. Proprietary fund type .,
operating statements present increases (revenues) and decreases (expenses) in total net assets. The
Board applies all GASB pronouncements as well as all FASB Statements and Interpretations, APB
Opinions and Accounting Research Bulletins, issued after November 30, 1989, which do not conflict
with or contradict GASB pronouncements.
Proprietary fund operating revenues 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 result from non-exchange transactions or ancillary
activities. Operating expenses are costs incurred to provide services, whereas non-operating expenses
are costs of debt financings, amortization of intangible assets and losses on the sale of assets.
Amounts paid to acquire capital assets are capitalized as assets in the fund financial statements, rather
than reported as expenditures. Proceeds of long-term debt are 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.
46 W
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
C. Basis of Presentation
GASB Statement 34 sets forth minimum criteria (percentage of the assets, liabilities, revenues or
expenditures/expenses of either fund category and the governmental and enterprise combined) for the
determination of major funds. The County has used GASB 34 minimum criteria for major fund
determination and has also electively disclosed funds that either had debt outstanding or specific
.. community focus as major funds. The nonmajor funds are combined in a column in the fund financial
statements and detailed in the combining section.
1. Governmental Major Funds:
General Fund — The General Fund is the general operating fund of the County. It is used to account for
all financial resources, except those required to be accounted for 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.
Secondary Roads Construction Fund — The Secondary Roads Construction Fund accounts for the
expenditures of road and bridge construction. Financing is provided by collections of the local option
gas tax.
Transportation Fund — The Transportation Fund accounts for expenditures incurred for the maintenance
and repair of County roads. Financing is provided by the 5th and 6th cent gas taxes, county gas tax and
transfers from the General Fund.
Emergency Services District Fund — The Emergency Services District Fund accounts for the
expenditures of providing fire protection and advanced life support to the entire County. Financing is
provided by ad valorem taxes.
Land Acquisition Fund — The Land Acquisition Fund accounts 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.
SHIP Hurricane Housing Recovery Grant Fund — The SHIP Hurricane Housing Recovery Fund
accounts for revenues and expenditures of the SHIP Hurricane Housing Recovery grant.
Optional Sales Tax Fund — The Optional Sales Tax 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. Monies are used for various capital projects.
47
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
Co Basis of Presentation - Continued
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.
3. Other Fund Types:
Internal Service Funds — Internal Service Funds account for Fleet Management, Self Insurance and GIS
services provided to other departments of the County on a cost reimbursement basis.
The Agency Fund - The County uses the Agency Fund to account for the collection and disbursement
of monies on behalf of other governments and individuals for such purposes as cash bonds, traffic fines,
child support payments and ad valorem taxes.
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 assets.
D. Assets, Liabilities, and Net Assets or Equity
1. Cash and Cash Equivalents
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 cash equivalents for financial
statement purposes. In addition, longer-term investments are held by several of the County's funds and
are reported as investments on these statements. Cash and cash equivalents of the constitutional officers
are maintained in separate accounts, but have been combined with the Board's cash and cash
equivalents for financial statement purposes.
0
48 IWO
10
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2007
NOTE I — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
D. Assets, Liabilities, and Net Assets or Equity - Continued
2. Investments
Investments consist of U.S. Treasury Securities, U.S. Government Agency Securities, a guaranteed
AN investment contract, the Local Government Surplus Funds Trust Fund Investment Pool (Pool) and the
Florida Local Government Investment Trust Fund (Trust). Except for the Pool and the Trust,
investments are reported at their fair value based on the average price obtained from three
AIN brokers/dealers. Fair value of the Pool and the Trust are based on the fair value per share of the
underlying portfolio.
3. Allowance for Doubtful Accounts
The County provides an allowance for water and sewer accounts receivables that may become
uncollectible. At September 30, 2007, this allowance was $326,832. No other allowances for doubtful
accounts are maintained since other accounts receivable are considered collectible as reported at
September 30, 2007.
4. 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. Receivables in excess of 120 days comprise the trade accounts receivable allowance for
doubtful accounts.
5. Inventories
Inventories are valued at cost, which approximates market, using the "first -in, first -out" method of
accounting. Inventories of governmental funds are recorded as expenditures when consumed rather than
when purchased.
6. Prepaid Expenses
Prepaid expenses 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.
INM
AID 49
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
D. Assets, Liabilities, and Net Assets or Equity - Continued
7. Restricted Assets
Certain net assets of the County are classified as restricted assets on the statement of net assets 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 assets, qualified expenses are considered
to be paid first from restricted net assets and then from unrestricted net assets.
8. Intangible Assets
Leachate disposal rights were purchased by the Solid Waste Disposal District Fund from the County
Utilities Fund for removal and transportation of leachate from the County landfill to the sewer system.
These assets are being amortized using the straight-line method over the estimated useful life of 20
years.
9. Capital Assets
Capital Assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges,
right-of-ways, water and sewer distribution systems, beach restoration and similar items), 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 $750 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 are recorded at estimated fair
market value at the date of donations.
The costs of normal maintenance and repairs that do not add to the value of the asset or 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, 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 assets.
50 A*
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
446 D. Assets, Liabilities, and Net Assets or Equity - Continued
9. Capital Assets - Continued
Property, plant, and equipment of the primary government, as well as the component units, are
depreciated using the straight-line method over the following estimated useful lives:
Assets
40 Building and improvements
Machinery and equipment
Utility distribution system
Road and bridge infrastructure
Fiberoptics
Beach preservation infrastructure
10. Capitalization of Interest
MT
25-50
3-10
25-50
20-50
20
7
..W 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.
11. Unearned Revenues
Unearned revenues reported in government -wide financial statements would be recognized as revenue
in the fiscal year they are earned. In accordance with the modified accrual basis of accounting, deferred
revenues reported in governmental fund financial statements represent revenues, which are measurable
10 but not available, and are reported as assets with a corresponding liability.
12. 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.
13. 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, 2007.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
D. Assets, Liabilities, and Net Assets or Equity - Continued
14. 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.
15. Unamortized Bond Costs
Bond issuance costs and legal fees associated with the issuance of Proprietary Fund revenue bonds are
amortized over the life of the bonds using the straight-line method of accounting.
16. Unamortized Bond Discounts and Premiums
1",
Ow
Bond discounts and premiums associated with the issuance of Proprietary Fund revenue bonds are
amortized according to the straight-line method. For financial reporting, unamortized bond discounts
and premiums are netted against the applicable long-term debt. so
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 assets in
accordance with GASB Statement 33.
52
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 2 - RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL
STATEMENTS
A. Explanation of Differences Between the Governmental Fund Balance Sheet and the
Government -wide Statement of Net Assets
"Total fund balances" of the County's governmental funds ($222,934,589) differs from "net assets" of
governmental activities ($608,464,725) reported in the statement of net assets. This difference primarily
results from the long-term economic focus of the statement of net assets versus the current financial
resources focus of the governmental fund balance sheet.
Capital related items
When capital assets (property, plant, equipment) that are to be used in governmental activities are
purchased or constructed, the cost of those assets are reported as expenditures in governmental funds.
However, the statement of net assets included those capital assets among the assets of the County as a
whole.
Cost of capital assets $ 599,149,070
Accumulated depreciation (1521196,886)
Net Total $ 446.952,184
Long-term debt transactions
Long-term liabilities applicable to the County's governmental activities are not due and payable in the
current period and accordingly are not reported as fund liabilities. All liabilities (both current and long-
term) are reported in the statement of net assets.
Balances at September 30, 2007 were:
Bonds Payable:
General Obligation Bonds, Series 2001 $ (7,36500)
General Obligation Refunding Bonds, Series 2003 (3,515,000)
Limited General Obligation Bonds, Series 2006 (46,2805000)
Spring Training Facility Bonds, Series 2001 (14,000,000)
Bond Premium Payable:
Limited General Obligation Bonds, Series 2006 (1,281,835)
" Compensated absences (5,758,145)
Capital leases (1591)
Total (78.208,571)
n
53
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 2 - RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL
STATEMENTS - Continued
A. Explanation of Differences Between the Governmental Fund Balance Sheet and the
Government -wide Statement of Net Assets - Continued
Accrued interest
Accrued liabilities in the statement of net assets differs from the amount reported in governmental funds
due to accrued interest on General Obligation Refunding Bonds, Series 2003, General Obligation
Bonds, Series 2001, and Limited General Obligation Bonds, Series 2006.
609 621
In
Unearned revenues
Unearned revenues in the statement of net assets differs from the amount reported in governmental
funds due to special assessment and FEMA receivables. Governmental fund financial statements report
revenues, which are measurable but not available as unearned revenues. However, unearned revenues in
governmental funds are susceptible to full accrual on government -wide financial statements.
Unearned revenues reduced 481;405
Internal service funds
Internal service funds are used by management to charge the costs of fleet management, insurance
activities, and GIS services to individual funds. The assets and liabilities of the internal service funds
are included in governmental activities in the statement of net assets because they primarily serve
governmental activities of the County.
Internal Service Funds
Accrued grant revenues
13.539,990
C3
Some grant revenues are not recognized in the current period because the resources are not available;
therefore, these revenues are not reported in the fund.
Accrued grant revenues 2,069,413
54 W
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2007
,a
NOTE 2 - RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL
STATEMENTS - Continued
A. Explanation of Differences Between the Governmental Fund Balance Sheet and the
Government -wide Statement of Net Assets - Continued
Accrued interest revenues
Some interest revenues are not recognized in the current period because the resources are not available;
therefore, these revenues are not reported in the fund.
Accrued interest revenues 1 305 336
Elimination of interfund receivables/payables
Interfund receivables and payables in the amount of $2,007,077 between governmental funds must be
eliminated for the statement of net assets.
M
0
w 55
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 2 - RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL
STATEMENTS - Continued
A. Explanation of Differences Between the Governmental Fund Balance Sheet and the
Government -wide Statement of Net Assets - Continued
ASSETS
Cash and cash equivalents
Investments
Accounts receivable - net
Due from other funds
Due from other governments
Interest receivable
Inventories
Prepaid expenses
Advance to other funds
Special assessments receivable
Note receivable
Capital assets - net
Total assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Claims payable
Retainage payable
Accrued interest payable
Due to other funds
Due to other governments
Other deposits held in escrow
Unearned revenues
Accrued compensated absences
Capital leases
Bonds payable
Advance from other funds
Total liabilities
Fund balances/net assets
Total liabilities and fund
balances/net assets
Total Capital Long-term
Governmental Related Debt Interest
Funds Items Tansactions Payable
$ 24275045469-
149,162 - -
682,535 - -
1,164,437 - -
6,900,342 - - -
73781 - -
13,591 - - -
599206 - - -
1,456,225 - - -
106,430 - -
666,667 - -
- 446,9525184 - -
$ 253,7109845 $ 4465952,184
$ 15,929,832 $
5,2885622 - - -
- 609,621
1,262,852 - -
19036,390 - - -
515,904
5,9985431 - -
55758,145 -
8,591 -
- 72,4415835 -
7445225 - -
30,776,256 - 78,208,571 6095621
222,934,589 446,9521184 (78,208,571) (609,621)
$ 2539710,845 $ 446,952,184 $ - $ -
The accompanying notes are an integral part of the financial statements.
56
M
�j
Internal Accrued Accrued Reclassifications Statement
Unearned Service Grant Interest and of
Revenue Funds Revenues Revenues Eliminations Net Assets
$ - $ 175959,321 $ - $ - $ - $ 260,4631790
149,162
18101 - - - 864.416
- (550,852) 613.585
- 185445 2095413 - - 8,988.200
- - 19305,336 - 1,313,117
1375401 - - - 150,992
- 1,678,005 - - - 1,7375211
(1,456,225) -
_ 1061430
6665667
640,578 - - - 447,592,762
$ - $ 205615,631 $ 2,069,413 $ 19305,336 $ (2,007,077) $ 722,646,332
$ - $ 4635543 $ - $ - $ - $ 1653935375
65559,000 - - - 6,559,000
5,288,622
6095621
- - - (1,262,852) -
13036,390
515,904
(4819405) - - - - 5,517,026
53,098 - - - 5,811,243
8,591
72,441,835
(744,225) -
• (481,405) 7,075,641 - - (250073077) 114,18107
481,405 13,539,990 210695413 1,305,336 - 608,4645725
$ - $ 20,6159631 $ 25069,413 $ 1,3059336 $ (2,007,077) $ 722,6469332
Y 57
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 2 - RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL
STATEMENTS - Continued
B. Explanation of Differences Between Governmental Fund Operating Statements and the
Statement of Activities
The "net change (decrease) in fund balances" for governmental funds ($43,760,013) differs from the
"change in net assets" for governmental activities ($50,643,009) reported in the statement of activities.
The differences arise primarily from the long-term economic focus of the statement of activities versus
the current financial resources focus of the governmental funds. The effect of the differences is
illustrated below.
Capital related items
When capital assets that are to be used in governmental activities are purchased or constructed, the
resources expended for those assets are reported as expenditures in governmental funds. However, in
the statement of activities, the costs of those assets is allocated over their estimated useful lives and
reported as depreciation expense. As a result, fund balances decrease by the amount of financial
resources expended, whereas net assets decrease by the amount of depreciation expense charged for the
year.
Capital outlay
Depreciation expense
Loss on assets
Difference
$ 107,776,962
(14,6861564)
X1,501,635)
$ 91,588,763
Long -Term Debt Transactions
Capital lease proceeds provide current financial resources to governmental funds, but the capital lease
increases liabilities in the statement of net assets.
Capital lease proceeds
S (264.467)
Repayments of bond principal and capital lease principal are reported as an expenditure in the
governmental funds and, thus, have the effect of reducing fund balance because current financial
resources have been used. However, the principal payments reduce the liabilities in the statement of net
assets and do not result in an expense in the statement of activities.
Bond principal payments made $ 4,6155000
Bond premium payments made 935225
Capital lease principal payments made 255,876
Total X4,964,101
Some expenses reported in the statement of activities do not require the use of current financial
resources, therefore, are not reported as expenditures in governmental funds.
Net change in compensated absences
58
x(396,475)
rn
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 2 - RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL
STATEMENTS - Continued
Be Explanation of Differences Between Governmental Fund Operating Statements and the
Statement of Activities - Continued
Long -Term Debt Transactions — Continued
Governmental funds report interest expenditures
activities reports interest expense as it is incurred.
and the current year accrual,
Interest payable:
Net accrued bond interest payable
based on when they are paid. The statement of
This is the net number of the previous year accrual
Special assessment revenues
Revenues collected on special assessments are reported in the governmental funds. However, in the
statement of activities, the assessment revenues are recognized when they are earned.
Special assessment revenues
Internal service funds operating loss
The assets and liabilities of the internal service funds are included in governmental activities in the
statement of net assets because they primarily serve governmental activities of the County. The net
costs of the internal service funds are reported with governmental activities.
ob Internal service funds operating gain 3.973,053
Accrued grant revenues
Some grant revenues are not recognized in the current period because the resources are not available;
therefore, these revenues are not reported in the fund. This number is a net number of prior year accrual
and current year accrual.
Net accrued grant revenues (4.782,638)
Accrued interest revenues
Some interest revenues are not recognized in the current period because the resources are not available;
therefore, these revenues are not reported in the fund. This number is a net number of prior year accrual
and current year accrual.
Net accrued interest revenues (628.307)
Reclassification and Eliminations
The general fund recognizes revenues in the amount of $3,198,281 for the general administrative
AN charges to the general government, public safety, and transportation functions. These revenues and
expenditures must be eliminated to avoid double counting. Transfers in and transfers out in the amount
of $19,511,293 between governmental activities should be eliminated. Capital projects costs in the
Ab amount of $42,489,997 must be distributed to the related expenditure functions.
59
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 2 - RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL
STATEMENTS — Continued
B. Explanation of Differences Between Governmental Fund Operating Statements and the
Statement of Activities - Continued
Total Capital Long-term
Governmental Related Debt Compensated
Funds Items Tansactions Absences
REVENUES
Taxes $ 1305158,069 $-
Licenses and permits 8965612 - - -
Intergovernmental 541252,074 - - -
Charges for services 183997,529 - - -
Fines and forfeitures 25403,093 - - -
Special assessments 7,5005825 - -
Interest 15,7771318 - - -
Miscellaneous 3,4955610 - - -
Total revenues 2331481,130 - - -
EXPENDITURES
Current:
General government 245815,255 (439279,881) - 207,837
Public safety 72,9075822 (285900,702) - 171,611
Physical environment 34,324,331 34,735 (93,225) 12,182
Transportation 49,503,680 (26,6175016) - (36,025)
Economic environment 968,227 2,549 - (20,752)
Human services 13,8623463 122,884 - 3,649
Culture/recreation 23,751,173 618125767 - 36,634
Court related 65649,724 235,901 - 21,339
Debt service:
Principal 4,8705876 - (45870,876) -
Interest and fiscal charges 3,2555767 - - -
Capital projects 42,489,997 - -
Total expenditures 277,399,315 (91,588,763) (459645101) 3961475
Excess of revenues over (under) expenditures (43,918,185) 91,588,763 479641101 (396,475)
OTHER FINANCING SOURCES (USES)
Transfers in 19,629,728 - - -
Transfers out (1957365023) - - -
Lease purchase proceeds 2645467 - (264,467) -
Total other financing sources (uses) 158,172 - (264,467) -
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
(43,760,013) 91,5881763 4,6995634 (396,475)
2660402 355,071,859 (80,511,722) (1,708,446)
$ 222,934,589 $ 446,660,622 $ (75,812,088) $ (25104,921)
The accompanying notes are an integral part of the financial statements.
i
MEn
Accrued
Interest Unearned
Expenses Revenue
(85,868)
(85,868)
Internal
Accrued
Accrued
Reclassifications
Statement
Service
Grant and Tax
Interest
and
of
Funds
Revenues
Revenues
Eliminations
Activities
-
$ - $
- $
- $
1305158,069
-
-
-
-
896,612
17
(4,782,638)
-
-
495469,453
-
-
-
(3,198,281)
15,7995248
-
-
-
-
254035093
-
-
-
-
75414,957
855,879
-
(628,307)
-
16,004,890
-
-
-
-
3,495,610
855,896
(4,782,638)
(628,307)
(3,198,281)
225,641,932
- (904,722) - - 343667,935 15,506,424
- - (1,2203564) - - (907,712) 42,050,455
7205489 34,998,512
(600,314) - - 35923,664 26,1735989
9503024
(635397) - - - 13,9251599
(328,160) - - 923,838 31,196,252
- - - - (365498) 658703466
(34,860) - - - - - 3,220,907
- - - - - (425489,997) -
(345860) - (3,117,157) - - (3,1985281) 1745892,628
341860 (853868) 3,973,053 (4,782,638) (628,307) - 5017491304
- - - - (19,5115293) 118,435
- - 1935115293 (2245730)
(106,295)
34,860 (85,868) 3,9733053 (41782,638) (6283307) - 50,643,009
(6449481) 96,149 9,5665937 7,3231175 1,9335643 - 5579821,716
$ (609,621) $ 10,281 $ 13,5395990 $ 2,5401537 $ 1,305,336 $ - $ 6083464,725
61
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 3 - 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 Department of Revenue, State of Florida, a proposed operating budget for the fiscal year
commencing the following October 1. The operating budget includes proposed expenditures and the
means of financing them, as set forth in Chapter 129 of the Florida Statutes.
(2) The Department of Revenue, State of Florida, has the final authority on the operating budgets for
the Tax Collector and the Property Appraiser included in the General Fund.
(3) Constitutional officers, all departments controlled by the Board, and outside state and local
agencies submit their proposed budgets to the Office of Management and Budget for assistance, review
and compilation. The County Administrator then reviews all County departments, state agencies and
nonprofit organization's budgets and makes his budget recommendation to the Board.
(4) On or before July 15 of each year, the County Administrator and the Director of the Office of
Management and Budget, as the Board's designated budget officer, submit to the Board a tentative
budget for the ensuing fiscal year. The tentative budget includes proposed expenditures and the means
of financing them. The Board then holds workshops to review the tentative budget by fund on a
departmental level.
(5) During September, public hearings are held pursuant to Section 200.065 of the Florida Statutes in
order for the Board to receive public input on the tentative budget. At the end of the last public hearing,
the Board enacts ordinances to legally adopt the budgets at the fund level for all but three 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 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.
62 W
In
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 3 - STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY - Continued
Budgets and Budgetary Accounting — Continued
(9) The following is a comparison of the total appropriations to gross expenses for the proprietary
funds for the fiscal year ended September 30, 2007:
Total Variance
Appropriations Expenses Positive
Primary Government
Enterprise Funds:
Solid Waste Disposal District $ 1212445105 $ 1053313431 $ 15912,674
Shooting Range 48800 465,181 22,899
Golf Course 3,452,692 304,837 367,855
County Building 4,725,230 35238,477 1,486,753
County Utilities 46,0345040 37,518,226 8,515,814
Internal Service Funds:
Fleet Management 4,111,485 35579,549 531,936
Self Insurance 20,932,259 17,232,626 3,699,633
GIS 15394,754 110,261 15284,493
Component Unit
Housing Authority 967,732 909,767 57,965
NOTE 4 - CASH AND CASH EQUIVALENTS
The County maintains a cash and investment pool that is available for use by all funds except those
whose cash and investments must be segregated due to bond covenants or other legal restrictions.
A. Deposits
At September 30, 2007, the carrying amount of the primary government's deposits was $35,449,076
and the bank balance was $40,143,629. 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 Section 280.01, Florida Statutes also
~' known as the Florida Security for Public Deposit 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.
The carrying amount of the component unit's deposits totaled $797,870 and the bank balance was
$800,364.
63
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 4 - CASH AND CASH EQUIVALENTS - Continued
Be Accrued Interest
Interest earnings on U.S. Treasury Notes and government agency bonds are recorded in the cash and
investment pool and then allocated to each fund based on each fund's average monthly balance. As of
September 30, accrued interest for the County totaled $3,408,546. In addition, accrued interest on
special assessments receivable totaled $78,958 and on a capital projects reserve account totaled $7,781.
C. Investments
On August 17, 2004, the County and the constitutional officers, with the exception of the Tax Collector,
formally adopted an investment policy pursuant to Section 218.415, Florida Statutes, that established
permitted investments, asset allocation limits, issuer limits, credit ratings requirements and maturity
limits to protect the County's cash and investments. The Tax Collector adopted his formal policy in
February 2005.
As of September 30, 2007, the County had the following investments:
Investment Type
Fixed Rate Debt Investments:
U.S. Treasuries
U.S. Agencies:**
Federal Farm Credit Bureau
Federal Home Loan Bank
Federal Home Loan Mortgage Corp
Federal National Mortgage Assoc.
Guaranteed Investment Contract
Other Fixed Rate Investments:
Local Governmental Surplus Funds
Trust Fund
Florida Local Government
Investment Trust Fund
Other Market Rate Investment:
U.S. Treasury Money Market
Total Fair Value
Portfolio weighted average maturity
Weighted
Average
Fair Maturity Portfolio Credit
Value In Years Percentage Risks
$ 511000,000 0.70 13.5 % None
52,947,765 1.08 14.0 AAA
60,4225080 1.42 15.9 AAA
61,996,390 1.25 16.4 AAA
491998,300 1.37 13.2 AAA
3,1391285 16.92 0.76 AA -/Al+
81,151,491 .08 21.4 Not Rated
18,189,643 .08 4.8 AAA and S-1*
149,162 .25 0.04 AAA
378,994,116 100.00%
1.02
* AAA credit quality, S-1 Market Volatility
* * The weighted calculation considers the investments are carried until full maturity
(i.e. call dates are not considered).
EM
64 Wen
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 4 - CASH AND CASH EQUIVALENTS - Continued
C. Investments - Continued
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 to ten (10) years or less and no more than 25% of the portfolio shall be invested in
instruments with stated final maturities greater than five (5) years. The portfolio shall have securities
with varying maturity and at least 10% of the portfolio shall be invested in readily available funds. All
constitutional officers with the exception of the Tax Collector follow this policy. The Tax Collector's
policy is to limit maturities to 12 months or less and maintain 95% of the portfolio in readily available
funds.
Credit Risks
State law (Section 218.415 of the Florida State Statutes) and the County's investment policy limit
investments to the following:
1. Direct obligations of the United States Treasury;
2. State of Florida Local Government Surplus Trust Fund (SBA);
�. 3. Florida Local Government Investment Trust Fund (FLGIT);
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.
Upon issuance of the Water and Sewer Bonds, Series 1993A and 1993B, the Board invested the
required sinking fund reserve monies, $3,139,285, in a guaranteed investment contract with AIG
Matched Funding Corporation. This contract is for the life of the bonds and has a rate of earnings
slightly less than the arbitrage yield of the bonds.
Please refer to subsequent event note (Note 20) for an update on the Florida Local Government Surplus
Trust Fund (SBA).
65
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 4 - CASH AND CASH EQUIVALENTS - Continued
C. Investments - Continued
Concentration Risk
The County's investment policy has established asset allocation and issuer limits to reduce
concentration of credit risk in the County's investment portfolio. All 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 $3
million of the portfolio may be placed in certificates of deposit with any one financial institution. With
the exception of state authorized pools, no more than 10% of the portfolio may be placed in any one
money market fund. The Tax Collector does allow 25% of the portfolio to be invested in CDs and/or
money market funds. See investment list and percentages on previous page.
Custodial Credit Risk
The County'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 County shall be held in the name of the County. The securities must by held
in an account separate and apart from the assets of the financial institution. As of September 30, 2007,
the County's investment portfolio in U.S. Treasuries and U.S. Agencies was held by the Bank of New
York.
NOTE 5 - 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 2006-2007 fiscal year were levied in
October 2006. All taxes are due and payable on November 1 or as soon as the assessment roll is
certified and delivered to the Tax Collector. Discounts are allowed for early payment at the rate of 4%
in November, 3% in December, 2% in January, and 1% in February. Taxes paid in March are without
discount. All unpaid taxes become delinquent as of April 1. Virtually all unpaid taxes are collected via
the sale of tax certificates on or prior to June 1; therefore, there were no material taxes receivable at
fiscal year end.
66
M
ED
0
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 6 - CAPITAL ASSETS
Primary Government
Governmental activities:
Capital assets, not being depreciated:
Land $
Construction in progress
Right-of-way
PEP Reef/Stormwater ponds
Total capital assets, not being depreciated
Capital assets, being depreciated:
Buildings and improvements
Equipment
Infrastructure
Total capital assets, being depreciated
Less accumulated depreciation for:
Buildings and improvements
Equipment
Infrastructure
Total accumulated depreciation
Total capital assets, being depreciated, net
Governmental activities capital assets, net
Business -type activities:
Capital assets, not being depreciated:
Land
Construction in progress
Total capital assets, not being depreciated
Beginning
Balance
83,451,313 $
96,848,325
15,943,627
3,575,067
199,818,332
79,383,284
52,680,501
1735123,227
30551875012
(17,188,291)
(23,886,968)
(1085462,401)
(149.537,660)
155,6495352
Additions
31,1165820 $
61,495,833
4,025,999
Deletions
(895155,859)
96,638,652 (89,155,859)
84,022,717
9,880,463
6,627,610
10055301790
(1,495,231)
(7,195,681)
(6,033,702)
(145724,614)
85,806,176
(1,9535747)
-(11 ,094,763)
(13,048,510)
2,269,158
9,615,461
11,884,619
(1.163.891)
$ 355,467,684 $ 1821444,828 $ (90,319,750)
$ 18,3685127 $
20,117,321
38,485,448
Capital assets, being depreciated:
Buildings, distribution systems, & improvements 288,383,727
Equipment 19,82609
Total capital assets, being depreciated 308,2105426
Less accumulated depreciation for:
Buildings, distribution systems, & improvements (114,633,312)
Equipment (12,3895213)
Total accumulated depreciation (1275022,525)
Total capital assets, being depreciated, net 181,187,901
Business -type activities capital assets, net
25,530,158
25,530,158
21,329,875
1,888,565
23,218,440
(125415,069)
(1,992,339)
(14,407,408)
8,811,032
(145775,594)
(145775,594)
(1,135,076)
(15135,076)
1,073,663
1.073.663
61,413
Ending
Balance
114,568,133
69,188,299
19,969,626
3,575,067
207,301,125
163,406,001
60,607,217
1683656,074
3923669,292
(18,683,522)
(281813,491)
104, 880,642)
(152,377,655)
240,291,637
$ 447,5925762
$ 18,368,127
30,871,885
49,240,012
309,713,602
20,580,188
330,293,790
(1271048,381)
(131307,889)
(1405356,270)
189,937,520
$ 219,6739349 $ 34,3415190 $ (14,8375007) $ 239,1775532
67
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 6 - CAPITAL ASSETS — Continued
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities:
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
Total depreciation expense — governmental activities
Business -type activities:
Solid Waste Disposal District
Shooting Range
Golf Course
County Building
County Utilities
Total depreciation expense — business -type activities
68
$ 2,703,446
3,051,964
12,065
6,602,096
5,058
176,289
1,780,801
354,845
38,050
14.724,614
$ 779,709
39,333
196,030
134,539
13,257,797
14,407.408
IM
" Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 7 - RESTRICTED CASH AND CASH EQUIVALENTS AND INVESTMENTS
Various bond covenants, resolutions and state regulations require that the County restrict cash and cash
equivalents and investments within the Enterprise Funds. Restricted cash and cash equivalents and
investments are as follows:
Component
Primary Government Unit
Solid Waste Other
Disposal Golf County Enterprise Housing
District Course Utilities Funds Total Authority
Sinking funds $ - $53,814 $ 4,449,637 $ - $ 41503,451 $ 18,256
Renewal and
replacement 3,347,112 - 3,485,928 - 658335040 550,457
Customer deposits 178,500 - 25885,431 72,571 3,136,502 36,255
Capital construction - - 61,852,732 40,423 61,893,155 -
Closure and maintenance
costs 11,255,136 - - - 115255,136 -
Tax escrow - - - - - 602908
Total S 14.808.74853 814 $ 72.673.728 112994 $ 870621;284 $ 665,876
Cash totaling $10,833,243 is restricted for current liabilities in various governmental activities for
retainage payable, accrued interest payable, and the current year portion of bonds payable.
NOTE 8 - PAYABLE FROM RESTRICTED ASSETS
Liabilities payable from the County's Enterprise Funds restricted assets are as follows:
.:n
Primary Government
Solid Waste Other
Disposal Golf County Enterprise
District Course Utilities Funds Total
Accounts payable $ - $ - $ 6,617,202 $ - $ 6,617,202
Retainage payable - - 1,801,672 - 101,672
Accrued interest
'* payable - 13,397 243,579 - 256,976
Bonds payable
(current portion) - 4851000 2,62000 - 3,1053000
Closure and maintenance
costs payable 10,5091598 - - - 10,509,598
Customer deposits 1785500 - 2,885,431 722571 3,136.502
Total S 10.688.098 498 397 S 25.426 950
69
Component
Unit
Housing
Authority
2,325
191,000
36,255
5229,580
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 9 - INTERFUND BALANCES
Interfund balances at September 30, 2007, consisted of the following:
Due to General Fund from:
Nonmajor governmental funds:
CDBG Disaster Recovery Initiative Grant
Metropolitan Planning Organization Fund
Federal/State Grants Fund
Total
$ 660,000
62,000
1,000
723 000
Amounts due from the above funds represent short-term cash loans that will be repaid within the next
twelve months.
Due from General Fund to:
Major governmental fund:
Emergency Services District Fund $ 334,690
Total 334 690
Due from General Fund to:
Major enterprise fund:
Solid Waste Disposal District Fund $ 98,415
Total 98 415
Due from General Fund to:
Nonmajor governmental funds:
Land Acquisition Bond Fund $ 90,868
Clerk Special Revenue Fund 12,435
Street Lighting Districts 2,209
Vero Lake Estate Fund 1,217
East Gifford Stormwater 18
Total 106 747
Amounts due from the General Fund represent excess fees and payments of the constitutional officers
remitted to various funds subsequent to September 30, 2007.
Interfund advances at September 30, 2007, consisted of the following:
Due to Secondary Roads Fund from:
Golf Course Fund $ 7125000
Due to Optional Sales Tax Fund from:
General Fund 744225
Total 1,456.225
Both amounts are considered long-term advances expected to be paid over the course of several years.
Reservations of fund balance have been established for these amounts.
70
r"
Q
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 10 - INTERFUND TRANSFERS
Interfund transfers for the year ended September 30, 2007, consisted of the following:
Transfers to General Fund from:
Emergency Services District Fund $ 573,223
Nonmajor governmental funds 259,685
Subtotal 832,908
Transfers to Transportation Fund from:
General Fund 11,943,548
Transfers to Optional Sales Tax Fund from:
General Fund 3,8973189
Emergency Services District Fund 1,073,940
Impact Fees Fund 1,066,532
Solid Waste Disposal District Fund 2,679
Utilities Fund 65,818
Nonmajor enterprise funds 49,938
Subtotal 6,156,096
Transfers to Nonmajor governmental funds from:
General Fund 216,403
Impact Fees Fund 368,346
All other transfers 112,427
Subtotal 697,176
Transfers to Non -major enterprise funds from:
General Fund 224,730
Total transfers 19.854,458
Transfers are used to: 1) move revenues from the fund that state law requires to collect them to the fund
that state law requires to expend them, 2) provide matching funds for grants, 3) use unrestricted general
fund revenues to finance transportation activities which must be accounted for in another fund, 4) use
unrestricted general fund revenues for beach restoration activities which must be accounted for in
another fund, 5) use unrestricted general fund revenues to subsidize a business activity, the Shooting
Range, 6) allocate hurricane insurance proceeds to the appropriate fund, 7) use unrestricted general
fund revenue for electric payments of a street lighting district, 8) provide funding for construction of the
County Administration Complex, 9) use unrestricted general fund revenue for roadway landscape
improvements accounted for in another fund, and 10) reimburse general fund for rental assistance
related expenditures.
71
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 11 - RECEIVABLE AND PAYABLE BALANCES
Receivables
Receivables at September 30, 2007, were as follows:
Governmental Activities: _
General
Impact Fees
Secondary Roads Construction
Transportation
Emergency Services
Land Acquisition
SHIP Hurricane Housing Recovery Grant
Optional Sales Tax
Other governmental _
Due from
Accounts Other Governments
$ 645,312
3,525
874
87
27,009
187.609
Total Governmental Activities $ 864,416
Business -Type Activities:
Solid Waste $ 191,239
Golf Course -
Utilities 3,158,307
Other proprietary
Total Business -Type Activities
3.349.546
$ 25198,228
412,217
547,241
234,459
131,897
3,233,735
2,230,423
$ 8.988.200
$ 28,578
12,569
4,650
802
46.599
Total
2,843,540
412,217
550,766
235,333
131,984
3,260,744
2.418.032
$ 219,817
12,569
3,162,957
802
$ 3.396.145
On May 2, 2006, the Board approved an incentive loan agreement with Adrian Investments regarding
their development of the Indian River Park of Commerce. This agreement resulted in a $1.5 million
note receivable due to the Board and will be repaid by Adrian Investments in payments upon closing of
the conveyance of each lot in the park. The total balance will be repaid over ten years.
During fiscal year 2006, the Board loaned the initial $1.0 million on the above project. The remaining
$500,000 will be paid to Adrian Investments upon final plat approval or issuance of a certificate of
completion. Funding for the $1.0 million note receivable was from the following funds: $666,667
from the Secondary Roads Construction Fund and $333,333 from the Utilities Fund. As of September
30, 2007, the $500,000 has not been paid to Adrian Investments because they have not received final
plat approval or been issued a certificate of completion.
M
72 W
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 11 - RECEIVABLE AND PAYABLE BALANCES - Continued
Payables
Payables at September 30, 2007, were as follows:
Governmental Activities:
General
Impact Fees
Secondary Roads Construction
Transportation
Emergency Services
Land Acquisition
Federal/State Grants
Optional Sales Tax
Other governmental
Total Governmental Activities
Business -Type Activities
Payable from current assets:
Solid Waste
Golf Course
Utilities
Other proprietary
Payable from restricted assets:
Solid Waste
Utilities
Total Business -Type Activities
Vendors
$ 2,511,582
3,422,642
513,574
289,465
843,414
65,192
553,906
4,064,205
2,292,273
$ 14.5561253
Salaries and
Benefits
$ 1,160,503
1,439
12,495
200,779
422,011
1,898
37,997
$ 1.837.122
Retainase
1,539,443
591,854
1,240
118,004
2,394,669
643,412
X5,288.622
Total
Payables
$ 3,6721085
4,963,524
1,117,923
491,484
1,265,425
65,192
671,910
6,460,772
2,973,682
21.681.997
$ 808,607 $ 575499 $ - $ 866,106
116,432 243896 - 141,328
1,612,191 1735795 - 1,785,986
33,314 54,180 - 875494
6,617,202
9. 187,746
$ 310.370
1,801,672
$ L801;672
8,418,874
$ 11.299.788
The County has not engaged in any short-term debt activity during fiscal year 2007 other than that
listed in Note 9.
NOTE 12 - LONG-TERM LIABILITIES
A. Primary Government
Business -type Activities
Recreational (Golf Course) Revenue Refunding Bonds, Series 2003
Purpose - On October 15, 2003, the Series 2003 bonds were issued to legally redeem $6,735,000 of the
County's outstanding Recreational Revenue Bonds, Series 1993. The Series 2003 bonds are being
issued by the County to provide funds, together with $583,790, to retire all of the outstanding 1993
Series bonds and to pay for all bond issuance costs.
Pledge of Revenues - The revenue bonds are collateralized by a lien on the net revenues derived from
the operations of the golf course, racetrack, and Jai Alai Fronton funds, and seven percent of the half -
cent sales tax accruing annually to the County.
73
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 12 - LONG-TERM LIABILITIES - Continued
A. Primary Government - Continued
Recreational (Golf Course) Revenue Refunding Bonds, Series 2003 - Continued
The aggregate difference in debt service between the Series 1993 debt ($9,284,290) and Series 2003
debt (8,060,911) is $1,223,379. The net economic gain was $348,450.
Bonds Issued - At September 30, 2007, the revenue bonds consisted of the following:
Interest Outstanding at
Rates and September 30,
Description Date Maturity Issue 2007
2003 Recreational Revenue 2.00-4.125% 9/1/16 $ 6,455,000 $ 4,660,000
Refunding Bonds 3/1 and 9/1
Less: Current Portion 48500
Unamortized Bond Discount 41,272
Long -Term Portion 4,133,728
Optional Redemption - The revenue bonds, maturing on or after September 1, 2014, are subject to
redemption prior to maturity, at the option of the County on and after September 1, 2013, in whole or in
part, at any time thereafter at the redemption price of par, plus interest accrued to the date of
redemption.
Water and Sewer Revenue Bonds, Series 1993A
Purpose - The Series 1993 bonds were issued to legally defease all of the County's outstanding Water
and Sewer Revenue and Refunding Bonds, Series 1986 and 1986A, Series 1989, Series 1991, and
Special Assessment Revenue Bonds, Series 1989 and Series 1990, and to provide funds to make certain
capital improvements to the utility system.
Pledge of Revenues - The revenue bonds are collateralized by a pledge of all net revenues derived from
the operation of the system, and certain surcharges and special assessments.
Bonds Issued - At September 30, 2007, the revenue bonds consisted of the following:
Interest Outstanding at
Rates and September 30,
Description Date Maturity Issue 2007
Water and Sewer 2.60-6.50%
Revenue Bonds, 3/1 and 9/1 2024 $ 47,1903000 $ 34,005,000
Series 1993A
Less: Current Portion 1,31000
Unamortized Bond
Discount 9955087
Long -Term Portion $ 31,699,913
Mandatory Redemption - The Series 1993A Term Bonds are subject to mandatory redemption by lot,
prior to maturity, at par plus accrued interest to date of redemption, based on the following schedule:
74 W
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 12 - LONG-TERM LIABILITIES - Continued
A. Primary Government - Continued
Water and Sewer Revenue Bonds, Series 1993A - Continued
Term Bonds Due September 1, 2008
Date Principal Amount
" September 1, 2008 $ 1,310,000
Term Bonds due September 1, 2011
Date Principal Amount
September 1, 2009 $ 1,39500
September 1, 2010 1,475,000
September 1, 2011 1,555,000
Term Bonds due September 1, 2015
Date Principal Amount
September 1, 2012 $ 1,6401000
September 1, 2013 1573000
September 1, 2014 1,825,000
September 1, 2015 1,925,000
Term Bonds due September 1, 2018
Date Principal Amount
September 1, 2016 $ 21030,000
September 1, 2017 25135,000
September 1, 2018 2,250,000
Term Bonds due September 1, 2020
Date Principal Amount
September 1, 2019 $ 2,370,000
September 1, 2020 2,4905000
Term Bonds due September 1, 2024
Date Principal Amount
September 1, 2021 $ 2,625,000
September 1, 2022 25760,000
September 1, 2023 2,905,000
September 1, 2024 1,585,000
Optional Redemption - The revenue bonds, Series 1993A, maturing on or after September 1, 2009, are
subject to redemption prior to maturity, at the option of the County on and after September 1, 2008, in
whole or in part, at any time, on any interest payment date at par plus accrued interest and plus a
premium ranging between 0% and 2% depending on the year of redemption.
75
�
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 12 - LONG-TERM LIABILITIES - Continued
A. Primary Government - Continued
Water and Sewer Revenue Refunding Bonds, Series 2005
Purpose - The Series 2005 Bonds were issued to legally defease $31,680,000 of the County's
outstanding Water and Sewer Revenue Bonds, Series 1996. These bonds were issued by the County to
provide funds, together with $5,000,000, to retire 95 percent of the 1996 Series and to pay for all bond
issuance costs. The September 1, 2005 and 2006 principal installments were not subject to early call
and consequently paid at their respective maturity dates.
The aggregate difference in debt service between the Series 1996 ($40,585,193) and Series 2005
($39,619,193) is $966,000. The net economic gain was $2,944,661, which included shortening the term
of the bonds by four years and lowering average annual debt service by $242,000.
Pledge of Revenues - The revenue bonds are collateralized by a pledge of all net revenues derived from
the operation of the system and certain surcharges and special assessments.
Bonds Issued - At September 30, 2007, the revenue bonds consisted of the following:
Description
Water and Sewer
Revenue Bonds,
Series 2005
Less: Current Portion of Bonds
Add: Unamortized Bond Premium
Long -Term Portion
Interest
Rates and
Date
3-5%
W e4lsJ11
Outstanding at
September 30,
Maturity Issue 2007
2022 $ 27,6751000 $ 25,980,000
1,310,000
918,184
$ 25.588,184
Outstanding In -Substance Defeased Debt - The proceeds from the refunding have been invested in
Federal Securities and placed in an escrow account with J.P. Morgan. All of the defeased bonds
($31,680,000) were called on September 1, 2006 at 102% of the outstanding principal amount.
Optional Redemption - The Series 2005 Bonds maturing after September 1, 2015, are subject to
redemption by the County on or after September 1, 2015, in whole or in part, at par, plus accrued
interest to date of redemption.
76
I"
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 12 - LONG-TERM LIABILITIES - Continued
A. Primary Government - Continued
Annual Debt Service Payments — Business -type Activities
The annual debt service payments for bonds outstanding at September 30, 2007 are as follows:
FISCAL YEARS RECREATIONAL WATER AND SEWER WATER AND SEWER
ENDING REVENUE REFUNDING REVENUE BONDS REVENUE REFUNDING
SEPTEMBER 30 SERIFS 2003 SERIES 1993 BONDS SERIES 2005
Principal Interest Principal Interest Principal Interest
2008 $ 4859000 $ 160,764 $ 1,310,000 $ 1,830,500 $ 1,310,000 $ 1,092,450
2009 4905000 148,639 095,000 1,745,350 1,350,000 1,0531150
2010 5105000 135,164 1,475,000 1,6689625 19395,000 15012,650
2011 520,000 119,864 1,5551000 1,587,500 13435,000 970,800
2012 5359000 102,964 1,640,000 1,501,975 1,4803000 925,250
2013-2017 211205000 201,287 956459000 69058,825 8,3959000 39632,650
2018-2022 - - 12,495,000 35213,525 10,615,000 1,405,250
2023-2027 - - 454905000 318,938 - -
Tatal 49660,000 8689682 345005,000 173925,238 25,980,000 10,092,200
Less:
-� Current portion 485,000 - 1,310,000 - 010,000 -
Unamortized
bond discount 41,272 - 995,087 - - -
„ Add:
Unamortized
bond premium - - - - 918,184 -
Total $ 4,133,728 $ 868,682 $ 315699,913 $ 175925238 $ 25,588,184 $ 10,092,200
Governmental Activities
Limited General Obligation Bonds
Purpose — On July 6, 2006, the Board issued $48,600,000 of Limited General Obligation Bonds Series
2006. The issuance of the Series 2006 bonds was approved by a majority of votes cast in a bond
referendum held on November 2, 2004, by the qualified electors of the County. The referendum
authorized a total of $50,000,000 aggregate principal amount of limited general obligation bonds. The
proceeds of this issue will provide funds to acquire by purchase, interest in lands to protect water
resources and/or drinking water sources, environmentally sensitive lands, historic sites, and/or
agricultural lands together with the necessary restoration, remediation and reclamation activities to
preserve and enhance such property and customary and necessary costs incurred in the acquisition.
77
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 12 - LONG-TERM LIABILITIES - Continued
A. Primary Government - Continued
Limited General Obligation Bonds - Continued
Pledge of revenues — The principal and interest on the bonds are payable from ad valorem taxes not
exceeding % mil and having a maturity not exceeding fifteen years, which are levied by the County
upon the taxable real and personal property of the County.
Bonds Issued - At September 30, 2007, General Obligation bonds consisted of the following:
Interest Outstanding at
Rates and September 30,
Description Date Maturity Issue 2007
Limited General 4.00%-5.00%
Obligation 2006 Series 1/1 and 7/1 2021 48,600,000 46,280.000
Optional Redemption -- The Limited General Obligation Bonds, Series 2006, maturing on or after July
1, 2017, are subject to redemption prior to maturity, at the option of the County on and after July 1,
2016, in whole or in part, at any time, on any date at a redemption price of 100% of the principal
amount thereof, together with accrued interest thereon to the redemption date.
General Obligation Bonds
Purpose - On November 29, 2001, the Board issued the additional $11,000,000 of General Obligation
Bonds Series 2001. The issuance of the Series 1995 bonds and the Series 2001 bonds were approved by
a majority of votes cast in a bond referendum held on November 2, 1992, by the qualified electors of
the County. The referendum authorized a total of $26,000,000 aggregate principal amount of general
obligation bonds, in one or more series, of which the Series 1995 bonds are the first (in the amount of
$15,000,000) and the Series 2001 bonds are the second. The proceeds of this issue will provide funds to
acquire environmentally sensitive lands, together with the necessary restoration, remediation and
reclamation activities to preserve and enhance such property.
On July 1, 2003, the Board issued $7,800,000 of General Obligation Refunding Bonds, Series 2003.
The bonds were issued to provide funds, together with $600,000, to refund and redeem all of the
outstanding principal amount of the County's $15,000,000 General Obligation Bonds Series 1995.
Proceeds of the bonds will also be used to pay the cost of issuance of the Bonds, including the
premiums for guaranty insurance.
Pledge of Revenues - The principal and interest on the bonds are payable from ad valorem taxes levied
by the County upon the taxable real and personal property of the County.
78 U
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 12 - LONG-TERM LIABILITIES - Continued
A. Primary Government - Continued
General Obligation Bonds - Continued
Bonds Issued - At September 30, 2007, General Obligation bonds consisted of the following:
Interest Outstanding at
Rates and September 30,
Description Date Maturity Issue 2007
General Obligation 2.50%-4.30%
Series 2001 1/1 and 7/1 2016 11,000,000 7,365,000
General Obligation Refunding 1.50%-3.00%
Series 2003 1/1 and 7/1 2010 7,800,0003,515,000
Optional Redemption - The General Obligation Bonds, Series 2001, maturing on or after July 1, 2013,
are subject to redemption prior to maturity, at the option of the County on and after July 1, 2012, in
whole or in part, at any time, on any date at par plus accrued interest and plus a premium ranging
between 0% to 1% depending on the year of redemption. The General Obligation Refunding Bonds,
Series 2003, are not subject to redemption prior to their maturities.
Spring Training Facility Revenue Bonds
Purpose - On August 15, 2001, the Board issued $16,810,000 of Spring Training Facility Revenue
' Bonds, Series 2001. The Series 2001 Bonds are being issued by the 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 known as "Dodgertown"; (2) pay a premium for a municipal bond insurance policy and
a debt service reserve account surety bond, and (3) pay certain costs and expenses incurred in
connection with the issuance of the Series 2001 Bonds.
Pledge of Revenues - The principal and interest on the Series 2001 Bonds will be payable from and
secured by a first lien upon and pledge of the following, together with any investment income realized
on any funds held under the Resolution, except the Cost of Issuance Account and the Rebate Fund:
(1) Payments received by the 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"
79
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 12 - LONG-TERM LIABILITIES - Continued
A. Primary Government - Continued
Spring TrainingFacility acility Revenue Bonds - Continued
12
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.
Bonds Issued - At September 30, 2007, Spring Training Facility Revenue Bonds consisted of the
following:
Interest Outstanding at
Rates and September 30,
Description Date Maturity Issue 2007
Spring Training Facility 3.30%-5.25%
Series 2001 4/1 and 10/1 2031 $ 16,810,000 $ 14.000,000
Optional Redemption - The Series 2001 Bonds maturing on or after April 1, 2012, are subject to
redemption at the option of the County in whole or in part, on April 1, 2011, or on any date thereafter at
par plus accrued interest and plus a premium ranging between 0% to 1% depending on the year of the
redemption.
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, 2015
Date Principal Amount
April 1, 2014 $ 6855000
April 1, 2015 725,000
Term Bonds due April 1, 2017 �..
Date Principal Amount
April 1, 2016 $ 760,000
April 1, 2017 795,000
Term Bonds due April 1, 2021
Date Principal Amount
April 1, 2018 $ 8409000
April 1, 2019 89000
April 1, 2020 93000
April 1, 2021 9801000
:1
13
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 12 - LONG-TERM LIABILITIES - Continued
A. Primary Government - Continued
Spring TrainingFacility acility Revenue Bonds - Continued
Term Bonds due April 1, 2027
Date Principal Amount
April 1, 2022 $ 305,000
April 1, 2023 320,000
April 1, 2024 34000
April 1, 2025 355,000
April 1, 2026 37500
April 1, 2027 39000
Term Bonds due April 1, 2031
Date Principal Amount
April 1, 2028 $ 4101000
April 1, 2029 430,000
April 1, 2030 455,000
April 1, 2031 435,000
Annual Debt Service Payments - Governmental Activities
The annual debt service payments for bonds outstanding at September 30, 2007, are as follows:
LIMITED GENERAL GENERALOBLIGAIION GENERAL.
FISCALYEAR OBLIGATION BONDS REFUNDINGBONDS OBLIGATION BONDS
ENDING SERIES 2006 SERIFS 2003 SERIES 2001
SEPT. 30 Principal Interest Principal Interest Principal
2008 $ 2,565,000 $ 2,048,063 $ 133500 $ 99,775 $ 690,000 $
2009 2,6705000 1,945,463 1,170,000 71,400 720,000
2010 2,775,000 1,838,663 11210,000 36,300 745,000
2011 2,8857000 1,727,663 - 780,000
2012 3, 000,000 1, 612, 263 81000
2013-2017 17,0155000 5,993,063 3,620,000
2018-2022 155370,000 15774,350 -
2023-2027 -
2028-2032 '
Total
Less:
Current portion
Unamortized
bond discount
Add:
Unamortized
bond premium
Total
46,280,000 16,939,528 3,515,000 2075475 7,365,000
2565,000 - 1,1355000 - 6907000
SPRING TRAINING
FACILITY REVENUE
BONDS SERIES 2001
Merest
Principal
290,643 $
5455000 $
266,493
560,000
240,572
585,000
213,008
605,000
183,368
630,000
392,058
3,6203000
3,945,000
1,780,000
1,730,000
1, 586,142 1450005000
545.000
1,281,835
$ 44,996,835 $ 16,939,528 $ 1380,000 $ 207,475 $ 6,675,000 $ 1,586,142 $ 13,455,000 $
81
Interest
685,343
664,633
642,232
618,833
593,423
2,492,470
1,443,575
708,250
218,750
8,067,509
8,067,509
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 12 - LONG-TERM LIABILITIES - Continued
Be Discretely Presented Component Unit
Housing Authority Revenue Bonds
IM
On April 1, 1986, August 23, 1988, and July 16, 1991, the Housing Authority adopted resolutions
authorizing the issuance of revenue bonds payable to the U.S. Department of Agriculture, Farmers
Home Administration, for the purpose of financing a part of the cost of acquiring, erecting and
constructing low -rent, multi -family housing facilities (Victory Park Apartments - Phase I and Phase II
and Orangewood Park Apartments), including the repayment of certain notes payable to the State of
Florida for the acquisition of land. The bond and interest thereon are payable solely from and
collateralized by a prior lien upon and a pledge of the gross revenues to be derived from the projects.
The revenue bond resolution provides for the following:
Bonds Issued - The revenue bond obligation consists of:
Description
Indian River County
Housing Authority
Revenue Bonds:
Original
Interest
Rates and Date
I% per annum on
the unpaid balance
payable September
1 each year
Victory Park, Phase I
Victory Park, Phase II
Orangewood Park Apartments
Less: Current Portion of Bonds
Long-term Portion of Bonds
Revenue
Bond
Commitment
$ 1,908,000
1,908,000
2,006,400
5.822.400
Outstanding at
September 30,
2007
$ 808,000
871,000
1,111,400
2,790,400
191,000
2,599,400
Optional Redemption - Each revenue bond is redeemable at the option of the Housing Authority at par
plus accrued interest and plus a premium ranging between 0% and 5% depending on the year of
redemption and the holder of the bond at the time of redemption.
The Housing Authority may redeem, in whole or in part, at any time, the principal portion of each
revenue bond on any interest payment date, at the price of par plus accrued interest, without premium if
the bond is held by the U.S. Department of Agriculture, Farmers Home Administration.
82
M
146
..
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 12 - LONG-TERM LIABILITIES - Continued
Be Discretely Presented Component Unit - Continued
Annual Debt Service Payments - Housing Authority
The annual debt service payments for bonds outstanding at September 30, 2007, are as follows:
Fiscal Year Ending September 30
2008
2009
2010
2011
2012
2013-2017
2018-2022
2023
Less: Amount representing interest
Total principal
Less: Current principal
Total
C. Summary of Defeased Debt Outstanding
Payment Amount
$ 219,084
218,994
219,064
219,114
219,144
1,097,070
736,030
75,144
3,003,644
(213,244)
2,790,400
(191,000)
$ 2,599,400
The following outstanding revenue bonds are legally defeased. Since governmental obligations are held
in escrow for the payment of principal and interest, the bonds are not liabilities of the County.
Capital Improvement Revenue
Bonds: Series 1980
Outstanding
at
September 30,
2006
83
Retired
During
Fiscal Year
2007
275 000
Outstanding
at
September 30,
2007
$ 1,365,000
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 12 - LONG-TERM LIABILITIES - Continued
D. Capital Leases
Governmental Activities
0
The following is a schedule of future minimum lease payments under capital leases, together with the
present value of the net minimum lease payments, as of September 30, 2007:
Fiscal vear ending. September 30
Total minimum lease payments due 2008 $ 8,710
Less: amount representing interest (119)
Present value of net minimum
lease payments 8 591
The following is an analysis of the leased property under capital leases:
Type of Property Capitalized Cost
Computer software and equipment $ 264,467
The equipment listed above is reported in the financial statements of the County. Monthly payments for
the computer equipment lease are made by the General Fund.
Business -Type Activities
The County has entered into a lease -purchase agreement to purchase golf carts for Sandridge Golf
Course with lease terms of 48 months. Monthly payments for the lease are made by the Golf Course
Fund. The value of the golf carts at the time of the lease was $311,302. The following is a schedule of
future minimum lease payments under the capital lease, together with the present value of the net
minimum lease payments, as of September 30, 2007:
Fiscal vear ending September 30
2008 $ 78,070
2009 35,487
Total minimum lease payments 113,557
Less: amount representing interest (3,532)
Present value of net minimum lease payment 110 025
E. Compensated Absences
Governmental activities compensated absences are paid by the fund which normally pays the personnel
services costs of the employee.
84
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 12 - LONG-TERM LIABILITIES - Continued
F. Changes in Long-term Liabilities
Long-term liability activity for the year ended September 30, 2007, was as follows:
Governmental Activities:
Bonds payable:
Limited General Obligation Bonds -
Series 2006
General Obligation Bonds - 2001 Series
Spring Training Facility Revenue Bonds -
Series 2001
General Obligation Refunding Bonds -
Series 2003
Subtotal
Add: Unamortized bonds premium
Total bonds payable
Other liabilities:
Capital leases
Compensated absences
Total other liabilities
Governmental activities long-term liabilities
Business -type Activities:
Bonds payable:
Recreational Refunding Revenue Bonds -
Series 2003
Water & Sewer Refunding Revenue Bonds -
Series 1993A
Series 2005
Subtotal
Add: Unamortized bonds premium
Less: Unamortized bonds discount
Total bonds payable
Other liabilities:
Capital leases
Compensated absences
Total other liabilities
Business -type activities long-term liabilities
Beginning
Balance
$ 480000 $
8,035,000
14,520,000
4,620,000
75,775,000
1,375,060
77,150,060
5,417,583
5,417,583
Additions
264,467
5,803,461
6,067,928
Retirements
2,32000 $
670,000
520,000
1,105,000
4,615,000
93,225
4,708,225
255,876
5,409,801
5,665,677
Due
Ending Within
Balance One Year
46,280,000 $
7,365,000
14,000,000
3,515,000
71,160,000
1,281,835
72,441,835
8,591
5,811,243
5,819;834
2,565,000
690,000
545.000
1,135,000
4,935,000
4,935,000
8,591
2,555,412
2,564,003
$ 825567,643 $ 61067,928 $ 10,373,902 $ 78,2615669 $ 7,499,003
$ 5,135,000 $ $ 47500 $ 4003000 $ 485,000
35,235,000
27,255,000
67,625,000
979,739
1,099,525
67,505,214
193,786
949,055
1,142,841
552,290
552,290
1,230,000
1,275,000
2,980,000
61,555
63,166
2,978,389
83,761
440,343
524,104
34,005,000
25,980,000
64,645,000
918,184
1,036,359
64,526,825
110,025
1.061,002
1,171,027
1,310,000
1,310,000
3,105,000
3,105,000
74,934
454,296
529,230
$ 68,648,055 $ 552,290 $ 3,502,493 $ 6507,852 $ 3,634,230
85
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 12 - LONG-TERM LIABILITIES - Continued
G. Conduit Debt Obligations
From 1986 until 1999, Indian River County issued Industrial Revenue Bonds to provide financial
assistance to private -sector entities for the acquisition, construction and equipping of industrial and '
commercial facilities deemed to be in the public interest. These facilities included an expanded
processing facility and an educational facility, for a total of two series of Industrial Revenue Bonds.
The bonds are secured by the property financed and are payable solely from payments received on the
underlying mortgage loans. Upon repayment of the bonds, ownership of the acquired facilities transfers
to the private -sector entity served by the bond issuance. Neither the County, the State, nor any political
subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly, the bonds are
not reported as liabilities in the accompanying financial statements.
Original Principal
Bond Issue _Outstanding Year Bonds and Project Description
$ 18500000 $ 150000 1999 St. Edward's School, Inc. — Upper School educational
facilities
4005000 _ 254005000 1997 Ocean Spray Cranberries, Inc. — expansion of
23,000 sq. ft. processing facility
Total 18.200.000
NOTE 13 - 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 attributable to the currently active landfill areas
Segment I, Segment Il, and Construction and Demolition are approximately $720,000. 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 engineer's report) of both closure and
post -closure care.
low
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 13 — PROVISION FOR CLOSURE COSTS - Continued
Required closure and post -closure obligations per segment:
Closure and
Capacity Estimated Post -Closure Date
Used Closing Obligation Closed
Active
Segment I addition - C & D 74% 2008 $ 630,000 N/A
Segment II -B addition - household waste 76% 2008 2,280,025 N/A
Segment II -C addition - household waste 76% 2011 3,839,857 N/A
Construction & Demolition 74% 2010 976,366
Inactive
Segment I - household waste N/A N/A 508,000 1993
Segment II -A class 1 - household waste N/A N/A 2,8765400 1998
Construction & Demolition N/A N/A 144,488
Total account balance at 9/30/07:
11,255,136
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, 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 these expenditures. All funds are on deposit
at the Florida Local Government Investment Trust,
NOTE 14 - PENSION PLANS
A. Florida Retirement System
` Plan Description: The County'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. The FRS is noncontributory for all members; all contributions are made by
the employer. Employees elect participation in either the defined benefit plan (Pension Plan) or the
defined contribution plan (Investment Plan). The Pension Plan provides for vesting of benefits after six
years of credible service. Normal retirement benefits are available to employees who retire at or after
age 62 with six or more years of service. Early retirement is available after six years of service with a
five percent reduction in benefits for each year prior to the normal retirement age. Retirement benefits
are based on age, average compensation, and years -of -service credit where average compensation is
computed as the average of an individual's five highest years of earnings. For those employees who
elect participation in the Investment Plan rather than the Pension Plan, vesting occurs after one year of
service and there is no "normal retirement 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.
87
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 14 - PENSION PLANS - Continued
A. Florida Retirement System - Continued
In addition to the above benefits, the FRS administers a Deferred Retirement Option Program (DROP).
This program allows eligible employees to defer receipt of monthly retirement benefit payments while
continuing employment with a FRS employer for a period not to exceed five years after electing to
participate. Deferred monthly benefits are held in the FRS Trust Fund and accrue interest.
Florida Statutes Chapter 121, as may be amended from time to time by the state legislature, determines
contribution rates for the various membership classes of the FRS. The FRS issues a publicly available
financial report that includes financial statements, ten-year historical trend information and other
required supplementary information. That report may be obtained by writing to the Florida Department
of Management Services, Division of Retirement, Attention: Research, Education, & Policy Section,
P.O. Box 9000, Tallahassee, Florida 32315-9000.
Funding Policy: The FRS has six classes of membership with descriptions and contribution rates in
effect during the period ended September 30, 2007, as follows (contribution rates are in agreement with
the actuarially determined rates):
10/l/06
to 9/30/07
Regular Class -
Members not qualifying for other classes. 9.85%
Senior Management Service Class -
Members of senior management who do not elect the
optional annuity management program. 13.12%
Special Risk Class -
Members employed as law enforcement officers,
firefighters, or correctional officers and meet the criteria
set to qualify for this class. 20.92%
Special Risk Administrative Support Class -
Special risk members who are transferred or reassigned
to non -special risk and meet the criteria. 12.55%
Elected County Officer's Class -
Certain elected county officials. 16.53%
Deferred Retirement Option Program -
Members who are eligible for normal retirement that
have elected to participate in the deferred retirement
option program. 10.91%
R1
rn
88 0.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 14 - PENSION PLANS - Continued
A. Florida Retirement System - Continued
Contributions to the FRS for the fiscal year ended September 30, 2007, were equal to 14.23% of the
annual covered payroll. Contributions to the FRS for the fiscal years ended September 30, 2005, 2006,
and 2007 were $7,723,502, $8,783,863, and $10,677,753 respectively, which are equal to 100% of the
required contribution for each year.
NOTE 15 - OPERATING LEASES
The County has entered into noncancelable operating leases, both as lessor and lessee. Lease terms vary
from 2 to 49 years. Lease revenues totaled $436,777 and lease expenditures totaled $399,814 for the
year ended September 30, 2007. The County also leases other equipment and office facilities as both
lessor and lessee on a month-to-month basis.
A. Future Minimum Lease Receipts
Year Amount
2008 $ 438,967
2009 451,499
2010 462,495
2011 477,147
2012 408,709
2013-2017 2,002,174
2018-2022 11997,141
2023-2027 102,757
2028-2032 466,359
2033-2035 600
Total future minimum lease receipts: 7,767,848
The property being leased is included in the statement of net assets governmental activities and
business -type activities columns and has a cost of $7,890,815 and a carrying value of $2,805,419. All
depreciable property being leased has been fully depreciated.
89
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 15 - OPERATING LEASES — Continued
Be Future Minimum Lease Payments
The following is a schedule of minimum future rentals to be paid by the County for various
noncancelable operating leases of office space, park land, and office equipment as of September 30,
2007:
Year
2008
2009
2010
2011
2012
2013-2017
2018-2022
2023-2027
2028-2032
2033-2037
2038-2042
2043-2047
2048-2050
Total future minimum lease payments
NOTE 16 - FUND EQUITY
A. Restricted Net Assets
Amount
$ 355,082
220,332
183,284
43,060
32,766
109,190
109,190
109,190
12,269
1,500
1,500
1,500
900
1 179 763
The County has established certain restrictions within the net assets section of the proprietary funds.
Restricted net assets at September 30, 2007, consist of the following:
Restricted for debt service
Restricted for renewal
and replacement
Restricted for capital projects
Restricted for insurance
and property tax
Total
Primary Government
Total Primary
Golf Course County Utilities Government
$ 40,417 $ 218,333
83,581,721
$ 258,750
83,581,721
Component
Unit
Housing
Authority
$ 18,256
550,457
60,908
629;621
90 W.
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 16 - FUND EQUITY - Continued
Be Net Assets Restricted by Enabling Legislation
The government -wide statement of net assets for the primary government and component unit reports
$257,707,034 of restricted net assets, of which $54,408,930 is restricted by enabling legislation.
C. Reserved Fund Balances
The County has established certain reserves within the fund equity section of the governmental funds.
Reserved fund balances at September 30, 2007, consist of the following:
Special Revenue Funds:
Reserved for Advances to Other Funds:
Secondary Roads Construction
Reserved for Capital Projects:
Secondary Roads Construction
Total
Debt Service Funds:
Reserved for Debt Service:
Land Acquisition Bonds
Spring Training Facility Revenue Bonds
Total
Capital Projects Funds:
Reserved for Capital Projects:
Optional Sales Tax
Jew Dodgertown Capital Reserve
Subtotal
Reserved for Advances to Other Funds:
Optional Sales Tax
Total
NOTE 17 - FUND EQUITY DEFICIT
The following funds had a deficit in fund balance at September 30, 2007:
Fund
Nonmajor governmental funds:
Federal/State Grants
CDBG Disaster Recovery Grant
Total Deficit
$ 712,000
666,667
1,378.667
$ 1,956,189
960,657
2.916,846
$ 15,986,939
2,021,031
18,007,970
744,225
18.752,195
Deficit
$ 5,457
1,582,263
1.587,720
The deficits for these two funds will be eliminated by grant proceeds in the fiscal year 2008.
91
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2007
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:
Prior to 10/1/03 to 10/1/04 to
10/1/03 10/1/04 Present
Worker's Compensation $ 350,000 $ 50000 $ 600,000
General Liability 2001000 200,000 200,000
Auto Liability 2005000 20000 200,000
Property Damage 500-2500 500-25,000 500-253000
Error or Omissions 2005000 200,000 200,000
Annual Aggregate 10000 1,000,000 15000,000
The County purchases excess insurance to cover claims in excess of the amounts listed above. The
County has not incurred any settlements in excess of the insurance coverage listed above in the past
three fiscal years. 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 is also self insured for medical claims covering employees and their eligible dependents.
As required by Section 112.081, Florida Statutes, retirees and their eligible dependents are provided the
same health care coverage as is offered to active employees; however, the retirees are responsible for
payment of the premiums. Medical claims are paid from premiums contributed by employees, retirees •�
and by the County. Premiums and contributions are determined by projected claims based on historical
and actuarial experience. The self insurance plan assumes all risk for claims, other than workers
compensation, up to $100,000 per individual/$200,000 per occurrence. For workers compensation, the
plan assumes all risk for claims up to $250,000 per individual/$250,000 per occurrence. The County
has purchased a reinsurance policy to cover claims in excess of these limits. There were no claims in
excess of these limits for the 2005, 2006, and 2007 fiscal years.
The claims liability of $6,559,000 reported at September 30, 2007, 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, $1,949,500 will be liquidated over the next twelve months.
0
92
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 18 - RISK MANAGEMENT —Continued
General Liability, Property, Worker's Compensation and Medical — Continued
Changes in the fund's claim liability amount during the current and prior three fiscal years are as
ANN
follows:
Balance at Claims Balance
Fiscal Year and Changes Claim at Fiscal
Beginning in Estimates Payments Year End
2003-2004 $ 45581,000 $ 11,597,947 $ (10,847,947) $ 5533100
2004-2005 5,331,000 10,657,797 (10,658,797) 5,330,000
2005-2006 55330,000 13,026,906 (125490,906) 50600
2006-2007 5,8665000 14,282,793 (13,5895793) 6,559,000
Included in the charges to other funds is an amount to fund future catastrophic losses not actuarially
determined and at September 30, 2007, unreserved net assets of $12,340,578 have been designated for
this purpose. The County has elected to accrue the larger of the discounted liability or undiscounted
liability. At September 30, 2007, the undiscounted liability was the greater of the two amounts. The
discount rate used in the calculation was 2.5 percent.
NOTE 19 - COMMITMENTS AND CONTINGENCIES
A. Litigation
Various suits and claims are currently pending against the County. It is impossible for the County to
accurately quantify the exposure involved given the jury's latitude in assessing compensatory and
punitive damages, and the court's latitude in awarding attorney's fees. The County intends to
vigorously defend against these lawsuits and believes it has a good chance of prevailing on their merits.
The County is contingently liable with respect to lawsuits and other claims incidental to the ordinary
course of its operations. In the opinion of management and based on the advice of legal counsel, the
ultimate disposition of lawsuits will not have a material adverse effect on the financial position of the
County.
Be Contracts and Other Commitments
The County has various contracts and commitments outstanding at September 30, 2007. In the General
Fund, contracts are for the Custodial Services, the 800 Mhz Radio Maintenance, GIS Needs
Assessment, and various other general services. In the Special Revenue Funds, contracts are for Beach
Renourishment Projects, renovation and construction of Fire/EMS stations, numerous environmental
protection services and a variety of road paving and drainage projects. In the Capital Projects Funds,
' contracts are for the Main Relief Canal Pollution Control System, the New County Administration
Complex, IRC Jail Expansion and several storm water projects throughout the county. In the Enterprise
Funds, contracts are for the Rockridge Vacuum Sewer Replacement, North County R/O Plant
- Expansion, the West Wastewater Transmission System, and various other water and sewer projects.
93
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 19 - COMMITMENTS AND CONTINGENCIES - Continued
Be Contracts and Other Commitments - Continued
A summary of these projects at September 30, 2007, is as follows:
Total contact price
Total paid as of
September 30, 2007
Remaining Balance at
September 30, 2007
General
$ 15582,573
Special Capital
Revenue Proj ects
$ 93,841,320 $ 853444,103
Enterprise
$ 82,6263672
1,458,408) (57,845,753) (73,181,838) (44,156,682)
Total
$ 263,494,668
1765642,681
$ 124,165 $ 35,995,567 $ 12,262,265 $ 38,469,990 $ 86,851,987
C. Grants
Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor
agencies. If any expenditures are disallowed as a result of these audits, the claims for reimbursement to
the grantor agency would become a liability of the County. In the opinion of management, any such
adjustments would not be significant.
NOTE 20 - SUBSEQUENT EVENTS
A. State Board of Administration
As discussed in Note 4, at September 30, 2007, the County had $81,151,491 invested in the State Board
of Administration's (SBA) Local Government Surplus Funds Trust Fund Investment Pool (Pool). Of
that amount, $74,513,549 belonged to the Board of County Commissioners, $5,442,758 belonged to the
Tax Collector, and $1,195,184 belonged to the Clerk of the Circuit Court.
Prior to November 29, 2007, when the State Board of Administration implemented a temporary freeze
on the assets held in the Pool, the Board of County Commissioners withdrew all those funds from the
Pool. The freeze was implemented by the SBA due to an unprecedented amount of withdrawals from
the Pool coupled with the absence of market liquidity for certain securities within the Pool. The
significant amount of withdrawals followed reports that the Pool held asset-backed commercial
paper that was subject to sub prime mortgage risk.
On December 4, 2007, based on recommendations from an outside financial advisor, the State Board of
Administration restructured the Pool into two separate Pools. Pool A consisted of all money market
appropriate assets, which was approximately $12 billion or 86% of Pool assets. Pool B consisted of
assets that either defaulted on a payment, paid more slowly than expected, and/or had any significant
credit and liquidity risk, which was approximately $2 billion or 14% of Pool assets. At the time of the
restructuring, all current Pool participants had their existing balances proportionately allocated into
Pool A and Pool B.
M
94 Me
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 20 - SUBSEQUENT EVENTS - Continued
A. State Board of Administration - Continued
However, prior to the restructuring, the SBA directed all Tax Collectors who had tax collections
invested in the Pool, to provide the SBA with the names, account numbers and dollar amounts of these
tax collections to be distributed to those taxing authorities which had accounts set up under their name
in the Pool. The SBA would then transfer the amounts from the Tax Collector's account to the
` accounts of said taxing authorities within the SBA. Consequently, the Board of County Commissioners
received their November 2007 property tax distribution of $23,109,797 which was being held by the
Tax Collector in the Pool. This amount, $23,109,797, is currently invested in both Pool A
.� ($19,295,815) and Pool B ($3,813,982) under the Board of County Commissioners' name.
Currently, Pool A participants may withdraw 37% of their balance or $4 million, whichever is greater,
without penalty. Withdrawals from Pool A in excess of the above limit are subject to a 2% redemption
fee. New investments in Pool A are not subject to the redemption fee or withdrawal restrictions.
Future withdrawal provisions from Pool A will be subject to further evaluation based on the maturities
�. of existing investments and the liquidity requirements of the Pool. On December 21, 2007, Standard
and Poor's Ratings Services assigned its "AAAM" principal stability fund rating to Pool A.
0
M
Currently, Pool B participants are permitted to withdraw scheduled amounts from the Pool as market
valuations of the assets held in Pool B become available. In addition, full realization of the principal
value of Pool B assets is not readily determinable.
As of March 5, 2008, the Board of County Commissioners had $14,343,705 in Pool A and $2,735,906
in Pool B. The Clerk of the Circuit Court had $0 in Pool A and $110,065 in Pool B. The "on -behalf -
of' (OBF) accounts held by the Tax Collector had $0 in Pool A and $442,413 in Pool B.
Additional information regarding the Local Government Surplus Funds Trust Fund may be obtained
from the State Board of Administration.
B. Florida Department of Transportation Locally Funded Agreement
On January 15, 2008, the County entered into a locally funded agreement with the Florida Department
of Transportation (FDOT) to advance the 6-laning of State Road 60 from 82nd Avenue to 66th Avenue
(Segment One). The agreement obligates the County to pay $34,669,601 to the FDOT in three
installments: $3,466,960 in February 2008, $13,867,840 in March 2008, and $17,334,801 in May 2008.
The FDOT will then begin the 6 -lane road construction. The FDOT will reimburse the County in eight
quarterly installments over a two-year period beginning no sooner than July 2009. Repayments to the
County will include principal and any accrued interest.
95
Indian River County, Florida
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 20 — SUBSEQUENT EVENTS - Continued
C. Amendment 1
On January 29, 2008, the Florida electorate approved an amendment to the Florida Constitution relative
to property taxation. This amendment (referred to as Amendment 1) was placed on the ballot by the
Florida Legislature at a special session held in October 2007. With respect to homestead property,
Amendment 1 increases the current $25,000 homestead exemption by another $25,000 (for property
values between $50,000 - $75,000) , except for school district taxes. Since the new $25,000 homestead
exemption does not apply to school district taxes, this effectively amounts to a $15,000 increase to the
existing homestead exemption, resulting in an estimated annual savings of $240 for an average
homeowner.
Amendment 1 also allows property owners to transfer (make portable) up to $500,000 of their Save Our
Homes benefits to their next homestead when they move. Save Our Homes became effective in 1995
and limits (caps) the annual increase in assessed value for homestead property to three percent (3%) or
the percentage change in the Consumer Price Index, whichever is less.
With respect to non -homestead property, Amendment 1 limits (caps) the annual increase in assessed
value for non -homestead property (businesses, industrial property, rental property, second homes, etc.)
to ten percent (10%), except for school district taxes. The Amendment also provides a $25,000
exemption for tangible personal property.
Amendment 1 becomes effective on October 1, 2008, with the exception of the ten percent (10%)
assessment cap on non -homestead property, which becomes effective on January 1, 2009. Based on
information received from the Indian River County Property Appraiser's Office, the estimated
annual loss of property tax revenues for our county from the additional homestead exemption and the
$25,000 exemption for tangible personal property is approximately $5.7 million. At present, there is no
accurate way to determine the impact of the portability and assessment cap on non -homestead property
provisions in terms of potential loss of property tax revenues.
13
wo
0
0
a
m
m
COMBINING AND INDIVIDUAL
FUND STATEMENTS
AND
SCHEDULES
97
NONMAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
Court Facilities- To account for the court facility surcharge, additional court costs,
the additional recording fee for court technology, and
improvements made to court facilities.
Section 8 Rental Assistance- To account for the provision of rental assistance for low income
housing. Financing is provided by grants from the U.S. Department
of Housing and Urban Development.
Special Law Enforcement To account for the expenditures of providing law enforcement
equipment. Financing is provided by confiscation of monies and
property in accordance with Section 932.704 of the Florida
Statutes,
Parks Development To account for expenditures for improvements made to County
parks. Financing is provided by the sale of surplus County
property.
Tree Ordinance Fines- To account for fines assessed against individuals for illegal
removal of protected trees. Funds are used for park improvements.
Tourist Development- To account for the proceeds from the levy of a local option Tourist
Development tax. Funds are used to attract tourism trade and for
the benefit of County residents.
911 Surcharge- To account for the receipt of the 911 surcharge on all telephone
bills of the County. Monies are used to pay the operating costs of
the 911 Emergency Center.
Drug Abuse- To account for the collection of fines on criminal drug cases.
Monies are used for drug prevention and education programs.
State Housing Initiatives
Partnership- To account for State funds distributed under the State Housing
Initiatives Partnership Act. The purpose of this program is to
provide for the creation and preservation of affordable housing.
Funds are provided by the documentary stamp taxes.
98 A
Metropolitan Planning Organization- To account for expenditures incurred for planning community
transportation in the County. Financing is provided by grants.
Multi -Jurisdictional Task Force- To account for expenditures incurred in connection with the
cooperative drug enforcement task force established by the
County, the City of Vero Beach and the City of Sebastian. Funds
are provided by grants and program generated income.
Native Uplands Land Acquisition- To account for expenditures related to the acquisition of native
habitat preserve areas and for the management of such lands.
Funding is provided by developers of property who pay to mitigate
native uplands destruction where native upland plant communities
will be destroyed.
Beach Restoration- To account for the expenditure of funds to preserve and improve
County beaches. Funds are provided by the levy of a local option
tourist development tax.
Vero Lake Estates- To account for the expenditure of funds to improve roads in the
Vero Lake Estates subdivision. Funds are provided by the levying
of special assessments.
Florida Boating Improvement Program- To account for boat registration fees which may be used for
providing recreational channel marking, public launching facilities,
and other boating -related activities.
Library Bequests- To account for bequests to the Indian River County Library to be
used for improvements to the Main and North County Libraries,
Disabled Access Program- To account for fines assessed against individuals for illegal use of
handicapped parking spaces.
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.
Community Development Block Grant- To account for the rehabilitation or replacement of housing units in
the Gifford area. Funding is provided by a housing rehabilitation
Community Development Block Grant.
99
r
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.
CDBG Disaster Recovery Grant- To account for the rehabilitation of Rockridge flood/drainage and
sanitary sewer, the West Wabasso water line extension and various
fire station renovations and replacements. Funding is provided by
Federal Emergency Management Grants received for storm relief.
Clerk Special Revenue- To account for the proceeds from a special recording fee to be used
for computer linkage and modernizing the Clerk of the Circuit
Courts' public records system.
Sheriff Special Revenue- To account for the expenditure of grants, fines and restricted
revenues received by the Sheriff.
Supervisor of Elections
Special Revenue- To account for revenues and expenditures from state grants for
voter education and pollworker activities.
Street Lighting Districts- To account for the costs of providing street lights. Financing is
provided by the levying of special assessments.
DEBT SERVICE FUNDS
Spring Training Facility Bonds- To account for the accumulation of State assistance and tourist tax
monies pledged to pay the principal, interest, and fiscal charges on
the Spring Training Facility Bonds.
Land Acquisition Bonds- To account for the accumulation of ad valorem taxes to pay the
principal, interest and fiscal charges related to the Land
Acquisition Bonds.
100
CAPITAL PROJECTS FUNDS
Dodgertown Facility- To account for expenditures incurred to acquire and refurbish the
Dodgertown Spring Training Facility. Financing is provided by
proceeds from the Spring Training Facility Bond issue.
Dodgertown Capital Reserve- To provide additional improvements to the Dodgertown Spring
Training Facility. The City of Vero Beach contributed $1,400,000
and the County contributed $600,000.
Gifford Road Construction- To account for expenditures incurred to improve the Gifford area.
Financing is provided by a transfer from the Secondary Roads
Construction Special Revenue Fund.
MAJOR CAPITAL PROJECTS FUND
Optional Sales Tax- To account for revenues generated by the local option 1 cent sales
tax. Monies are used for various capital projects.
101
ASSETS
Cash and cash equivalents
Accounts receivable
Interest receivable
Due from other funds
Due from other governments
Prepaid expenses
Total Assets
LIABILITIES AND FUND EQUITY
Liabilities:
Accounts payable
Retainage payable
Due to other funds
Due to other governments
Deferred revenues
Total Liabilities
Fund Equity:
Fund balances:
Unreserved (Deficit)
Reserved for debt service
Reserved for capital projects
Total Fund Equity
Total Liabilities and Fund Equity
Indian River County, Florida
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2007
Special Revenue Ok
Section 8
Court Rental Special Law
Facilities Assistance Enforcement
$ 1,033,314 $ 311,522 $ 110,413
- 600 -
2,763 -
214 -
$ 1,0331314 $ 315,099 $ 110,413
$ 111,706 $ 8,701 $ -
111,706 81701 -
921,608
306,398
92108 3069398 110,413
$ 1,033,314 $ 315,099 $ 1103413
102
W
I��
Development
$ 80,276 $
0
Special Revenue
Tree
Ordinance Tourist 911 Drug
Fines Development Surcharge Abuse
1805003 $ 1,699,171 $ 974,540 $ 83,702
556 -
95,410 -
805276 $ 1805003 $ 1,699,171 $ 1,070,506 $ 83,702
624 $ 69,257 $
624 69,257
55,143 $
12
55,155
907
907
80,276 179,379 156299914 1,015,351 82,795
$ 805276 $ 1801003 $ 15699,171 $ 1,0701506 $ 6s,iu2
Continued
103
ASSETS
Cash and cash equivalents
Accounts receivable
Interest receivable
Due from other funds
Due from other governments
Prepaid expenses
Total Assets
LIABILITIES AND FUND EQUITY
Liabilities:
Accounts payable
Retainage payable
Due to other funds
Due to other governments
Deferred revenues
Total Liabilities
Fund Equity:
Fund balances:
Unreserved (Deficit)
Reserved for debt service
Reserved for capital projects
Total Fund Equity
Total Liabilities and Fund Equity
Indian River County, Florida
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2007
Special Revenue
SHIP Metropolitan
Low Income Planning
Housing Organization
Multi -
Jurisdictional
Law Force
$ 11904,679 $ 362 $ 775174
500 - -
109,646
$ 1,905,179 $ 1105008 $ 77,174
$ 127,386 $ 14,674 $ -
15,987 -
62,000 -
127,386 9201 -
1,777,793 17,347 77,174
11777,793 17,347 77,174
$ 1,9057179 $ 110,008 $ 77,174
104 V,
Native Uplands
Land
Acquisition
$ 814,787 $
Beach
Restoration
3,540,792 $
1,382,064
Revenue
Vero Lakes
Estates
747,168 $
1,217
Florida
Boating Improv. Library
Program Bequests
782,846 $ 1305769
$ 814,787 $ 4X2,856
$ 7,000 $ 206,415 $ 416-
1141498 - - -
- 2941177 - -
71000 6151090 416 -
8075787 4,307,766 7475969 782,846 1309769
807,787 4,3075766 747,969 782,846 130,769
$ 8145787 $ 4,922,856 $ 7481385 $ 7821846 $ 130,769
Continued
105
ASSETS
Cash and cash equivalents
Accounts receivable
Interest receivable
Due from other funds
Due from other governments
Prepaid expenses
Total Assets
LIABILITIES AND FUND EQUITY
Liabilities:
Accounts payable
Retainage payable
Due to other funds
Due to other governments
Deferred revenues
Total Liabilities
Fund Equity:
Fund balances:
Unreserved (Deficit)
Reserved for debt service
Reserved for capital projects
Total Fund Equity
Total Liabilities and Fund Equity
Indian River County, Florida
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2007
Disabled
Access
Program
Revenue
East
Gifford
Stormwater
Community
Development
Block Grant
$ 525436 $ 10,151 $ 21,231
18
$ 521436 $ 10,169 $ 211231
525436 105169 211231
52,436 105169 21,231
$ 52,436 $ 10,169 $ 21,231
106
M
f
Federal/State
Grants
Traffic
Education
Program
Revenue
CDBG
Disaster Recovery
Grant
Clerk
Special
Revenue
Sheriff
Special
Revenue
$ 303080 $ 13802 $ 1,959 $ 3,102,274 $ 21234,183
325 3,747
125435 -
2,380 - 413,051 -
$ 321460 $ 138,802 $ 415,010 $ 311155034 $ 2,2375930
$ 36,917 $ 6,611 $ 151873756 $ 11427 $ 6,034
_ - 149,517 - -
1,000 - 66000 - -
28,212
85713
37,917 65611 1,997,273 14427 42,959
(5,457) 132,191 (1,5825263) 35113,607 2,1945971
(5,457) 132,191 (1,582,263) 3,113,607 2,194,971
$ 325460 $ 13802 $ 415,010 $ 3,115,034 $ 25237,930
Continued
107
i
Indian River County, Florida
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2007
ASSETS
Cash and cash equivalents
Accounts receivable
Interest receivable
Due from other funds
Due from other governments
Prepaid expenses
Total Assets
LIABILITIES AND FUND EQUITY
Liabilities:
Accounts payable
Retainage payable
Due to other funds
Due to other governments
Deferred revenues
Total Liabilities
Fund Equity:
Fund balances:
Unreserved (Deficit)
Reserved for debt service
Reserved for capital projects
Total Fund Equity
Total Liabilities and Fund Equity
Special Revenue Debt Service
Supervisor Street Spring
of Elections Lighting Training
Special Revenue Districts Facility Bonds
$ 30,573 $ 488,815 $ 926,529
2,209 -
34,128
$ 30,573 $ 491,024 $ 9601657
$ - $ 15,185 $ -
26,966 - -
26,966 15,185 -
307 475,839 -
- - 960,657
35607 475,839 960,657
$ 30,573 $ 4915024 $ 9605657
108
t.
Debt Service Capital Projects
Land Dodgertown Gifford Total Nonmajor
Acquisition Capital Road Governmental
Bonds Reserve Construction Funds
$ 19865,321 S 250235818 $ 3639410 $ 2357615100
5,728
75781 - 7,781
9068 - - 106,747
2,0395442
_ 214
$ 1,956,189 $ 2,031,599 $ 363,410 $ 25,921,012
$ - $ 105568 $ - $ 11866,727
3635410 6431412
7231000
28,212
3291868
10,568 3635410 3,5911219
1,956,189 -
2,021,031 -
1,956,189 210215031 -
$ 1,956,189 $ 2,031,599 S 363,410
109
17,391,916
2,916,846
2,021,031
22,329,793
$ 25,921,012
Indian River County, Florida
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended September 30, 2007
REVENUES
Taxes
Intergovernmental
Charges for services
Fines and forfeitures
Special assessments
Interest
Miscellaneous
Total revenues
EXPENDITURES
Current:
General government
Public safety
Physical environment
Transportation
Economic environment
Human services
Culture/recreation
Court related
Debt service:
Principal
Interest and other fiscal charges
Capital projects
Total expenditures
Excess of revenues over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Special Revenue
Section 8
Court Rental Special Law
Facilities Assistance Enforcement
1,844,945 -
827,081 11606 -
355452
505021 9,422 7,541
1,678 -
877,102 1;857,651 42,993
967 - -
118219434 -
8139042 - -
81409 1,821,434 -
63,093
63,093
858,515
36,217
(44,484)
(44,484)
(8,267)
314,665
$ 9215608 $ 306,398 $
110
42,993
(112,427)
(112.427)
(69,434)
179,847
110,413
EM
w
Parks
Development
4,113
Revenue
Tree
Ordinance Tourist 911
Fines Development Surcharge
$ 5433406 $ 477,727 $
325,704
20,100 - -
105110 84404 56,255
113 30,210
7,400
82,650
75400 825650
(3,287) (52,440)
13,968
627,810
575,245
859,686
682,123
575,245 6829123
52,565 1779563
13,968 -
(31287) (383472) 525565
839563 2179851 11577,349
Drug
Abuse
82,898
18,406
2,269
103,573
65,827
43,732
109,559
(5,986)
27 250
112,872) -
112,872) 275250
64,691 21,264
9509660 61,531
$ 80,276 $ 179,379 $ 1,629,914 $ 1,0155351 $ 82,795
Continued
111
Indian River County, Florida
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended September 30, 2007
REVENUES
Taxes
Intergovernmental
Charges for services
Fines and forfeitures
Special assessments
Interest
Miscellaneous
Total revenues
EXPENDITURES
Current:
General government
Public safety
Physical environment
Transportation
Economic environment
Human services
Culture/recreation
Court related
Debt service:
Principal
Interest and other fiscal charges
Capital projects
Total expenditures
Excess of revenues over under expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Special Revenue
SHIP Metropolitan
Low Income Planning
Housing Organization
Multi -
Jurisdictional
Law Enforce
645,400 619,785
465,074 1,065 -
23,982
87,692 17 3,232
2,666 - -
1,200,832 6205867 279214
621,213 -
1,202,062 - -
11202,062 621,213 -
(1,230) (346) 279214
(1,230)
(346)
27,214
1,7791023 17,693 49,960
$ 137775793 $ 17,347 $ 77,174
112
W.
Special Revenue
Native Uplands Florida
Land Beach Vero Lakes Boating Improv. Library
Acquisition Restoration Estates Program Bequests
$ - $ 543,406 $ - $ - $ -
11,854,887 - 77,508 -
75521 - - - -
95,303 - -
41,424 127,899 37,342 37,775 49988
1,000 - - 831332
48,945 12,527,192 1325645 1155283 88,320
25,500 - - - -
- - 19,445 - -
11,100,785 - 61460 -
_y
255500 119100,785 19,445 6,460 -
23,445 11426,407 113,200 108,823 88,320
1659118 - - -
- - (31699) - -
- 1655118 (3,699) - -
235445 155915525 109,501 108,823 881320
7845342 29716,241 638,468 6745023 425449
$ 807,787 $ 4,307,766 $ 747,969 $ 7825846 $ 1309769
Continued
113
Indian River County, Florida
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended September 30, 2007
REVENUES
Taxes
Intergovernmental
Charges for services
Fines and forfeitures
Special assessments
Interest
Miscellaneous
Total revenues
EXPENDITURES
Current:
General government
Public safety
Physical environment
Transportation
Economic environment
Human services
Culture/recreation
Court related
Debt service:
Principal
Interest and other fiscal charges
Capital projects
Total expenditures
Excess of revenues over under expenditures
Disabled
Access
Program
Special Revenue
East
Gifford
Stormwater
Community
Development
Block Grant
$ _ $ 104 $ -
_ - 367,767
2,421 -
1,341 -
2,588 707 -
_ - 3,000
5,009 2,152 370,767
16,747 -
164,052
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
5,009
5,009
47,427
16.747
(14,595)
(68)
(68)
(14,663)
164,052
206,715
206,715
24,832 (1859484)
$ 523436 $ 10,169 $ 215231
114
.6.
M
Traffic
Federal/State Education
Grants Program
488,579 -
9,537
8,426
488,579
496,317
Special Revenue
CDBG Clerk
Disaster Recovery Special
Grant Revenue
2,938,392
500
17,963 2,938,892
44,373
4969317 44,373
(7,738) (26,410)
1,223,244
2,371,774
143,607
3,738,625
(799,733)
634,273
140,238
774,511
Sheriff
Special
Revenue
125,058
388,143
234,164
143,979
891,344
58,727 -
- 1,360,394
585727 1,360,394
7151784 (469,050)
480,773
4805773
(7,738) (26,410) (799,733) 715,784 11,723
21281 1589601 (782,530) 29397,823 2,1835248
$ (51457) $ 132,191 $ (1,
582,263) $ 3,113,607 $ 2,1945971
Continued
115
Indian River County, Florida
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended September 30, 2007
REVENUES
Taxes
Intergovernmental
Charges for services
Fines and forfeitures
Special assessments
Interest
Miscellaneous
Total revenues
EXPENDITURES
Current:
General government
Public safety
Physical environment
Transportation
Economic environment
Human services
Culture/recreation
Court related
Debt service:
Principal
Interest and other fiscal charges
Capital projects
Total expenditures
Excess of revenues over under expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Special Revenue
Debt Service
Supervisor of Street
Elections Lighting Spring Training
Special Revenue Districts Facility Bonds
3623271
1,047 - 9099544
172,686 -
40 26,095 54,033
2,863 -
1,087 201,644 1,325,848
1,047 - -
184,517 -
1,047
3,567
3,567
3,607
- 520,000
694,703
184,517 15214,703
17,127 111,145
6,500 -
(6,429) -
71 -
17,198
458,641
111,145
849.512
$ 35607 $ 475,839 $ 9605657
116 .,
Debt Service Capital Projects
Total
Land Dodgertown Nonmajor
Acquisition Dodgertown Capital Gifford Road Governmental
Bonds Facility Reserve Construction Funds
$ 75094,485 $ - $ - $ - $ 9,021,399
20,281,514
- - - - 29324,763
- - - - 344,062
269,330
2215955 31978 106,740 185076 1,291,359
95,039
75316,440 3,978 1061740 18,076 33,627,466
681,954
- - - 3,331,588
- - - - 29397,274
- - - - 265,082
307,659
- - - - 3,563,545
11,772,540
813,042
430953000 - - - 4,6151000
2,548,955 - - - 3,243,658
- 263,079 2985315 25477,732 3,039,126
6,643,955 2633079 298,315 2,4773732 341030,468
672,485 (259,101) (191,575) (2,459,656) (403,002)
697,176
(929133) - - - (372,112)
(92,133) - - - 325,064
" 580,352 (259,101) (191,575) (2,459,656) (77,938)
1,375,837 259,101 2,212,606 29459,656 22,407,731
$ 1,956,189 $ - $ 25021,031 $ - $ 22,329,793
1M
117
Indian River County, Florida
Budgetary Comparison Schedule
Court Facilities
For the Year Ended September 30, 2007
REVENUES
Charges for services
Interest
Total revenues
EXPENDITURES
General government
Court related
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Final
Budget
$ 812,282 $
1,500
813,782
Actual
Amounts
827,081 $
50,021
877,102
Variance
Positive
(Negative)
14,799
48,521
63.320
40,500 967 39,533
850,497 813,042 37,455
890,997 81409 769988
(77.215) 63,093 140,308
77,215 858,515 781,300
$ - $ 92108 $ 9219608
118
13
0
13
Indian River County, Florida
Budgetary Comparison Schedule
Section 8 Rental Assistance
For the Year Ended September 30, 2007
REVENUES
Intergovernmental
Charges for services
Interest
Miscellaneous
Total revenues
EXPENDITURES
Human services
Total expenditures
Excess of revenues over expenditures
OTHER FINANCING USES
Transfers out
Total other financing uses
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
L
Final
Budget
2,250,240 $
2,250,240
2,250,240
2,250,240
(44,484)
(44,484)
(44,484)
44,484
Actual
Amounts
1,844,945 $
1,606
9,422
1,678
1,857,651
1,821,434
1,821,434
36,217
(44,484)
(44,484)
(8,267)
314,665
$ . $ 306,398 $
119
Variance
Positive
(Negative)
(405,295)
1,606
9,422
1,678
(392,589)
428,806
428,806
36,217
36,217
270,181
306,398
Indian River County, Florida
Budgetary Comparison Schedule
Special Law Enforcement
For the Year Ended September 30, 2007
REVENUES
Fines and forfeitures
Interest
Total revenues
EXPENDITURES
Public safety
Total expenditures
Excess of revenues over (under) expenditures
OTHER FINANCING USES
Transfers out
Total other financing uses
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Final
Budget
$ 112,427 $
112,427
112,427
Actual
Amounts
35,452 $
7,541
42,993
42,993
(112,427) (112,427)
(112,427) (1125427)
(69,434)
Variance
Positive
(Negative)
(76,975)
7,541
(69,434)
(69,434)
(69,434)
179,847 179,847
$ - $ 110,413 $ 1101413
71
M
M
iW
120.
m
0
,.
Indian River County, Florida
Budgetary Comparison Schedule
Parks Development
For the Year Ended September 30, 2007
Variance
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Interest $ - $ 45113 $ 4,113
Total revenues - 4,113 4,113
EXPENDITURES
Culture/recreation 2500 7,400 17,600
Total expenditures 2500 7,400 1700
Net change in fund balances (25,000) (3,287) 21,713
Fund balances at beginning of year 2500 83,563 585563
Fund balances at end of year $ - $ 80,276 $ 80,276
121
Indian River County, Florida
Budgetary Comparison Schedule
Tree Ordinance Fines
For the Year Ended September 30, 2007
REVENUES
Fines and forfeitures
Interest
Total revenues
EXPENDITURES
Culture/recreation
Total expenditures
Excess of revenues over (under) expenditures
OTHER FINANCING SOURCES
Transfers in
Total other financing sources
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Final
Budget
99,821
99,821
(9%821)
Actual
Amounts
20,100 $
10,110
30,210
82,650
82,650
(52,440)
Variance
Positive
(Negative)
20,100
10,110
30.210
17,171
17,171
47,381
13,968 131968 -
13,968 13,968 -
(85,853) (38,472) 471381
85,853 217,851 1311998
$ - $ 179,379 $ 179,379
E3
s.
.:
ft
E3
.t
n
M
122 W.
Ef
Indian River County, Florida
Budgetary Comparison Schedule
Tourist Development
For the Year Ended September 30, 2007
Variance
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Taxes $ 541,500 $ 5435406 $ 1,906
Interest 33,250 845404 515154
Total revenues 574,750 627,810 53,060
EXPENDITURES
Culture/recreation 6265550 575,245 51,305
Total expenditures 626,550 5751245 515305
Net change in fund balances (51,800) 52,565 104,365
Fund balances at beginning of year 5100 1,577,349 1,525,549
Fund balances at end of year $ - $ 1,629,914 $ 15629,914
123
Indian River County, Florida
Budgetary Comparison Schedule
911 Surcharge
For the Year Ended September 30, 2007
REVENUES
Taxes
Intergovernmental
Interest
Total revenues
EXPENDITURES
Public safety
Total expenditures
Excess of revenues over (under) expenditures
OTHER FINANCING USES
Transfers out
Total other financing uses
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Final
Budget
$ 463,125 $
187,625
650,750
952,432
952,432
(301,682)
(112,872)
(112,872)
(414,554)
414,554
Actual
Amounts
477,727
325,704
56,255
859,686
682,123
682,123
177,563
(112,872)
(112,872)
64,691
950,660
Variance
Positive
(Negative)
$ 14,602
138,079
56,255
208,936
270,309 .�
270,309
479,245 w
479,245
536,106
$ - $ 1,015,351 $ 1,015,351
124
M
M
1y
Indian River County, Florida
Budgetary Comparison Schedule
Drug Abuse
For the Year Ended September 30, 2007
Variance
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Intergovernmental $ 77,535 $ 82,898 $ 51363
Fines and forfeitures 101450 189406 7,956
Interest - 2,269 21269
Miscellaneous 41750 - (4,750)
�. Total revenues 92,735 103,573 10,838
EXPENDITURES
Public safety 65,830 65,827 3
Human services 43,732 43,732 -
Total expenditures 109,562 109,559 3
Excess of revenues over (under) expenditures (16,827) (5,986) 10,841
OTHER FINANCING SOURCES
Transfers in 1607 27,250 115163
Total other financing sources 1607 275250 11,163
Net change in fund balances (740) 21,264 221004
Fund balances at beginning of year 740 61,531 60,791
Fund balances at end of year $ - $ 82,795 $ 82,795
125
Indian River County, Florida
Budgetary Comparison Schedule
SHIP -Low Income Housing
For the Year Ended September 30, 2007
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
Final
Budget
$ 965,000
650,000
1,615,000
1,809,061
1,809,061
(194,061)
Actual
Amounts
$ 645,400 $
465,074
87,692
2,666
1,200,832
1,202,062
1,202,062
(1,230)
1,779,023
Variance
Positive
(Negative)
(319,600)
(184,926)
87,692
2,666
(414,168)
606,999
606,999
192,831
1.584.962
$ - $ 1,777,793 $ 15777,793
"I
126 U
M
Im
Indian River County, Florida
Budgetary Comparison Schedule
Metropolitan Planning Organization
For the Year Ended September 30, 2007
REVENUES
Intergovernmental
Charges for services
Interest
Total revenues
EXPENDITURES
General government
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Variance
Final Actual Positive
Budget Amounts (Negative)
$ 967,643 $ 619,785 $ (347,858)
1,065 1,065
17 17
967,643 620,867 (346,776)
967,643 621,213 346,430
967,643 621,213 346,430
(346) (346)
1703 1703
$ - $ 17,347 $ 17,347
p� 127
Indian River County, Florida
Budgetary Comparison Schedule
Multi -Jurisdictional Law Enforcement
For the Year Ended September 30, 2007
REVENUES
Fines and forfeitures
Interest
Total revenues
EXPENDITURES
Public safety
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Final
Budget
Actual
Amounts
23,982 $
3,232
27.214
Variance
Positive
(Negative)
23,982
3,232
27,214
_ 27,214 27,214
49,960 49,960
$ _ $ 77,174 $ 77,174
w
E3
a.
In
0
128 ob.
Indian River County, Florida
Budgetary Comparison Schedule
Native Uplands Land Acquisition
For the Year Ended September 30, 2007
Variance
Final Actual Positive
REVENUES Budget Amounts (Negative)
Charges for services $ - $ 7,521 $ 7,521
Interest - 41,424 411424
Total revenues - 48,945 48,945
. EXPENDITURES
Physical environment 5500 25,500 29,500
Total expenditures 559000 25,500 29,500
Net change in fund balances (55,000) 23,445 78,445
Fund balances at beginning of year 5500 784,342 729,342
Fund balances at end of year $ - $ 807,787 $ 807,787
129
Indian River County, Florida
Budgetary Comparison Schedule
Beach Restoration
For the Year Ended September 30, 2007
Variance
Final Actual Positive
Budget Amounts (Negative)
REVENUES 1,906
Taxes $ 541,500 $ 543,406 $
Intergovernmental 13,293,938 1118545887 (1,4395051)
57,000 127,899 705899
Interest _ 1,000 1,000
Miscellaneous
13,892,438 12,527,192 (1,365,246)
Total revenues
EXPENDITURES
Culture/recreation 14,9159363 11,100,785 3,8141578
14,915,363 11,100,785 3,814,578
Total expenditures
Excess of revenues over (under) expenditures (1,022,925 ) 1,426,407 25449,332
OTHER FINANCING SOURCES 165,118
Transfers in 165,118
Total other financing sources 165,118 165,118
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
(857,807)
857,807
1,591,525
2,716,241
2,449,332
1,858,434
$ _ $ 4,307,766 $ 4,307,766
r7
U3
M
130 a
Indian River County, Florida
Budgetary Comparison Schedule
Vero Lake Estates
For the Year Ended September 30, 2007
REVENUES
Special assessments
�• Interest
Total revenues
EXPENDITURES
Physical environment
Transportation
Total expenditures
Excess of revenues over (under) expenditures
OTHER FINANCING USES
Transfers out
Total other financing uses
�. Net change in fund balances
M3
Fund balances at beginning of year
Fund balances at end of year
Final
Budget
$ 88,174
4,750
92,924
131
141,037
306,072
447.109
(354,185)
(5,350)
(5,350)
(359,535)
359,535
Actual
Amounts
$ 95,303
37,342
132,645
19,445
19,445
113,200
(3,699)
(3,699)
109,501
Variance
Positive
(Negative)
$ 7,129
32,592
39,721
141,037
286,627
427,664
467,385
1,651
1,651
469,036
6381468 278,933
$ 747,969 $ 747,969
Indian River County, Florida
Budgetary Comparison Schedule
Florida Boating Improvement Program
For the Year Ended September 30, 2007
REVENUES
Intergovernmental
Interest
Total revenues
EXPENDITURES
Culture/recreation
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Variance
Final Actual Positive
Budget Amounts (Negative)
$ 60,000 $ 77,508 $ 17,508
37,775 375775
605000 115,283 55,283
465,000 6,460 458,540
465,000 6,460 4585540
(4055000) 108,823 5135823
405,000 6745023 2695023
$ _ $ 7825846 $ 782,846
173
73
w
FM
71
132 W,
M
REVENUES
Interest
Miscellaneous
Total revenues
Indian River County, Florida
Budgetary Comparison Schedule
Library Bequests
For the Year Ended September 30, 2007
Final
Budget
Variance
Actual Positive
Amounts (Negative)
4,988 $ 4,988
83,332 83,332
88,320 88,320
EXPENDITURES
Culture/recreation
Total expenditures
Net change in fund balances - 88,320 88,320
A.
Fund balances at beginning of year - 425449 42,449
Fund balances at end of year $ - $ 130,769 $ 1305769
133
0
Indian River County, Florida
Budgetary Comparison Schedule
Disabled Access Program
For the Year Ended September 30, 2007
Variance
Final Actual Positive
Budget Amounts (Negative)
REVENUES 2,421 $ 2,421
Fines and forfeitures $ - $
_ 2,588 25588
Interest 5,009
Total revenues - 5,009
EXPENDITURES 201000
Human services 20,000 -
20,000 - 20,000
Total expenditures
Net change in fund balances
(20,000) 509 25,009
Fund balances at beginning of year
20,000 47,427 27,427
Fund balances at end of year
$ _ $ 52,436 $ 52,436
134 '�'
Indian River County, Florida
Budgetary Comparison Schedule
East Gifford Stormwater
For the Year Ended September 30, 2007
Variance
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Taxes $ - $ 104 $ 104
Special assessments 1,995 1,341 (654)
Interest - 707 707
Total revenues 1,995 2,152 157
EXPENDITURES
Transportation 1,922 16,747 (14,825)
Total expenditures 1,922 16,747 (14,825)
Excess of revenues over (under) expenditures 73 (14,595) (14,668)
OTHER FINANCING USES
Transfers out (73) (68) 5
Total other financing uses (73) (68) 5
Net change in fund balances - (14,663) (14,663)
Fund balances at beginning of year - 24,832 24,832
Fund balances at end of year $ - $ 10,169 $ 105169
35
Indian River County, Florida
Budgetary Comparison Schedule
Community Development Block Grant
For the Year Ended September 30, 2007
REVENUES
Intergovernmental
Miscellaneous
Total revenues
EXPENDITURES
Economic environment
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Variance
Final Actual Positive
Budget Amounts (Negative)
$ 250,700 $ 367,767 $ 117,067
35000 300
250,700 370,767 120,067
250,700 1645052 86,648
250,700 164,052 86,648
206,715 206,715
(185,484) (185,484
$ - $ 21,231 $ 215231
136
M
i.
Indian River County, Florida
Budgetary Comparison Schedule
Federal/State Grants
For the Year Ended September 30, 2007
REVENUES
Intergovernmental
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
Final
Budget
$ 8515417 $
851,417
851,417
851,417
Actual
Amounts
488,579 $
(7,281)
481,298
488,306
488,306
(7,008)
2,281
Variance
Positive
(Negative)
(362,838)
(7,281)
(370,119)
363,111
363,111
(7,008)
2,281
$ - $ (4,727) $ (4,727)
137
Indian River County, Florida
Budgetary Comparison Schedule
Traffic Education Program
For the Year Ended September 30, 2007
REVENUES
Fines and forfeitures
Interest
Total revenues
EXPENDITURES
Transportation
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Variance
Final Actual Positive
Budget Amounts (Negative)
$ 73,900 $ 95537 $ (64,363)
- 85426 85426
735900 17,963 (555937)
735900 44,373 295527
73,900 44,373 29,527
(265410) (26,410)
1585601 15801
$ - $ 132,191 $ 132,191
138
Indian River County, Florida
Budgetary Comparison Schedule
CDBG Disaster Recovery Grant
For the Year Ended September 30, 2007
Variance
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Intergovernmental $ 35550,000 $ 2,938,392 $ (6115608)
Miscellaneous - 500 500
Total revenues 3,550,000 2,938,892 (611,108)
EXPENDITURES
Public safety 15270,293 1,223,244 47,049
Physical environment 434773773 2,3715774 2,105,999
Economic environment 370,774 143,607 227,167
Total expenditures 691185840 35738,625 2,380,215
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
(25568,840)
2,568,840
(799,733)
($782,530)
1,769,107
(3,351,370)
$ - $ (1,582,263) $ (1,582,263)
139
Indian River County, Florida
Budgetary Comparison Schedule
Clerk Special Revenue
For the Year Ended September 30, 2007
REVENUES
Charges for services $
Interest
Total revenues
EXPENDITURES
General government
Court related
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year $
Final
Budget
35029,443 $
3,029,443
1,290,412
1,829,300
3,119,712
(90,269)
Actual
Amounts
634,273
140,238
774,511
58,727
Variance
Positive
(Negative)
$ (2,395,170)
140,238
(2,2545932)
1,231,685
1,829,300
58,727 3,0605985
715,784
806,053
M
90,269 2,397,823 2,307,554
- $ 3111307 $ 3,11307
140
Indian River County, Florida
Budgetary Comparison Schedule
Sheriff Special Revenue
For the Year Ended September 30, 2007
Variance
Final Actual Positive
Budget Amounts (Negative)
w REVENUES
Intergovernmental $ 124,000 $ 125,058 $ 1,058
Charges for services 387,602 388,143 541
Fines and forfeitures 233,625 2345164 539
Interest 14300 1435979 979
Total revenues 888,227 891,344 35117
EXPENDITURES
Public safety 1,3691000 1,360,394 006
Total expenditures 1,369,000 15360,394 8,606
Excess of revenues over (under) expenditures (480,773) (469,050) 115723
OTHER FINANCING SOURCES
Transfers in 480,773 480,773 -
Total other financing sources 480,773 480,773 -
Net change in fund balances - 111723 11,723
Fund balances at beginning of year - 2,1831248 2,183,248
Fund balances at end of year $ - $ 2,194,971 $ 2,194,971
w
141
Indian River County, Florida
Budgetary Comparison Schedule
Supervisor of Elections Special Revenue
For the Year Ended September 30, 2007
Variance
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Intergovernmental $ - $ 1,047 $ 1,047
Interest - 40 40
Total revenues - 1,087 107
EXPENDITURES
General government - 1,047 (1,047)
Total expenditures - 11047 (1,047)
Excess of revenues over (under) expenditures - 40 40
OTHER FINANCING SOURCES
Transfers in - 3,567 3,567
Total other financing sources - 35567 31567
Net change in fund balances - 35607 307
Fund balances at beginning of year - - -
Fund balances at end of year
142
- $ 307 $
3,607
t"
M
w
0
0
M
m
Indian River County, Florida
Budgetary Comparison Schedule
Street Lighting Districts
For the Year Ended September 30, 2007
REVENUES
Special assessments
Interest
Miscellaneous
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
Final
Budget
$ 164,621
9,158
3,205
176,984
192,707
192,707
(15,723)
6,500
(7,924)
(1,424)
(17,147)
17,147
Actual
Amounts
$ 172,686
26,095
2,863
201,644
184,517
184,517
17,127
6,500
(6,429)
71
17,198
458.641
Variance
Positive
(Negative)
$ 8,065
16,937
(342)
24,660
8,190
8,190
32,850
1,495
1.495
34,345
441,494
$ . $ 475,839 $ 4755839
143
Indian River County, Florida
Budgetary Comparison Schedule
Spring Training Facility Bonds
For the Year Ended September 30, 2007
REVENUES
Taxes
Intergovernmental
Interest
Total revenues
EXPENDITURES
Debt service:
Principal
Interest
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Final Actual
Budget Amounts
$ 36100 $ 362,271 $
864,063 9093544
199000 54,033
1,244,063 11325,848
520,000
724,063
1,244,063
520,000
694,703
1,214,703
111,145
849.512
Variance
Positive
(Negative)
1,271
45,481
35,033
81,785
29,360
29,360
111,145
849,512
$ - $ 960,657 $ 960,657
144
M
w
M
M.
6
Indian River County, Florida
Budgetary Comparison Schedule
Land Acquisition Bonds
For the Year Ended September 30, 2007
REVENUES
Taxes
Interest
Total revenues
EXPENDITURES
Debt service:
Principal
Interest
Total expenditures
Excess of revenues over expenditures
OTHER FINANCING USES
Transfers out
Total other financing uses
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Final
Budget
$ 65982,931
38,002
7,020,933
4,095,000
2,617,917
6,712,917
308,016
(183,037)
(183,037)
124,979
(124,979)
Actual
Amounts
$ 71094,485
221,955
7,316,440
4,095,000
2,548,955
6,643,955
672,485
(92,133)
(92,133)
580,352
1,375,837
Variance
Positive
(Negative)
$ 111,554
183,953
295,507
68,962
68,962
364,469
90,904
90,904
455,373
1,500,816
$ - $ 1,956,189 $ 056,189
145
Indian River County, Florida
Budgetary Comparison Schedule
Dodgertown Facility
For the Year Ended September 30, 2007
REVENUES
Interest
Total revenues
EXPENDITURES
Capital projects
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Final
Budget
$ 10,000 $
10,000
146
269,102
269,102
(259,102)
259,102
Variance
Actual Positive
Amounts (Negative)
3,978 $ (6,022)
3,978 (65022)
263,079 6,023
263,079 6,023
(259,101) (1)
259,101 1
In
EM
73
ri
0
a
M
I
Indian River County, Florida
Budgetary Comparison Schedule
Dodgertown Capital Reserve
For the Year Ended September 30, 2007
REVENUES
Interest
Total revenues
EXPENDITURES
Capital projects
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Final
Budget
2,000,000
2,000,000
Variance
Actual Positive
Amounts (Negative)
106,740 $ 106,740
1065740 106,740
298,315 157015685
298,315 1,701,685
(25000,000) (191,575) 158085425
2,0001000 2,212,606 21206
$ - $ 2,021,031 $ 2,0211031
147
Indian River County, Florida
Budgetary Comparison Schedule
Gifford Road Construction
For the Year Ended September 30, 2007
REVENUES
Interest
Total revenues
EXPENDITURES
Capital projects
Total expenditures
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Final
Budget
2,900,000
2,900,000
(2,900,000)
2,900,000
Variance
Actual Positive
Amounts (Negative)
18,076 $ 18,076
18,076 18,076
2,477,732
2,477,732
(2,459,656)
2,459,656
148
422,268
422,268
440,344
(440,344)
M
M
V,,
13
ZI
aw
W.
Indian River County, Florida
Budgetary Comparison Schedule
Optional Sales Tax
For the Year Ended September 30, 2007
Variance
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Taxes $ 14,2029500 $ 14,549,834 $ 347,334
Intergovernmental 17,037,907 41806,349 (12,231,558)
Interest 574,750 11041,535 466,785
Miscellaneous - 305483 30483
Total revenues 31,8155157 20,428,201 (11,386,956)
EXPENDITURES
Capital projects 71,137,183 39,450,871 31,686,312
Total expenditures 71,137,183 39,450,871 31065312
Excess of revenues over (under) expenditures (39,322,026) (19,022,670) 20,299,356
OTHER FINANCING SOURCES (USES)
Transfers in 11,021,049 6,156,096 (4,864,953)
Total other financing sources (uses) 115021,049 61156,096 (4,864,953)
Net change in fund balances (28,300,977) (12,866,574) 15,434,403
Fund balances at beginning of year 28,3005977 29,597,738 1,296,761
Fund balances at end of year $ - $ 16,7311164 $ 161731,164
M
a KI
150
dw.
id
NONMAJOR ENTERPRISE FUNDS
Shooting Range -
"
County Building -
"
c
To account for the revenues, expenses, assets, and
liabilities associated with the County Shooting
Range.
To account for the revenues, expenses, assets, and
liabilities associated with the building permit and
inspection program.
151
Indian River County, Florida
Combining Statement of Net Assets
Nonmajor Enterprise Funds
September 30, 2007
ASSETS
Current assets:
Cash and cash equivalents
Due from other governments
Inventories
Prepaid expenses
Current restricted assets:
Cash and cash equivalents
Total current assets
Non-current assets:
Capital assets -depreciable
Accumulated depreciation
Total non-current assets
Total assets
LIABILITIES
Current liabilities (payable from current assets):
Accounts payable
Due to other governments
Accrued compensated absences
Current liabilities (payable from restricted assets):
Customer deposits
Total current liabilities
Non-current liabilities:
Accrued compensated absences
Total non-current liabilities
Total liabilities
NET ASSETS
Invested in capital assets, net of related debt
Unrestricted
Total net assets
Shooting
Range
$ 533,963
802
40,741
40,423
615.929
1,703,332
(205,685)
1,497,647
2,113,576
23,276
1,719
4,360
29,355
21,968
21,968
51,323
County
Building
$ 4,586,190 $
72,571
4,658,821
723,863
(444,308)
279,555
4,938,376
64,218
7,596
70,393
72,571
214,778
93,710
93,710
308,488
1,497,647 279,555
56406 4,350,333
$ 23062,253 $ 45629,888 $
152
Totals
5,120,153
802
40,741
60
112,994
5,274,750
2,427,195
(649,993)
1,777,202
7,051,952
87,494
9,315
74,753
72,571
244,133
115,678
115,678
359,811
1,777,202
4,914,939
6,692,141
ek:
M
FQ
Indian River County, Florida
Combining Statement of Revenues, Expenses,
and Changes in Fund Net Assets
Nonmajor Enterprise Funds
For the Year Ended September 30, 2007
OPERATING REVENUES
Charges for services
Total revenues
OPERATING EXPENSES
Personal services
Material, supplies, services and other operating
Depreciation
Total operating expenses
Operating income (loss)
NONOPERATING REVENUES (EXPENSES)
Interest income
Operating grants
Gain on disposal of equipment
Loss on disposal of equipment
Total nonoperating revenues (expenses)
Income before transfers
Transfers in
Transfers out
Change in net assets
Total net assets - beginning
Total net assets - ending
Shooting
Range
$ 298,219 $
298,219
153
299,422
126,426
39,333
465,181
(166,962)
26,582
802
1,300
28,684
(138,278)
224,730
86,452
1,975,801
County
Building
2,952,366
2,952,366
2,214,302
888,642
134,539
3,237,483
(285,117)
226,797
5,400
(994)
231,203
(53,914)
(49,938)
(103,852)
4,733,740
$ 2,062,253 $ 43629,888
Totals
$ 39250,585
3,250,585
2,513,724
1,015,068
173,872
3,702,664
(452,079)
253,379
802
6,700
(994)
259.887
(192,192)
224,730
(49,938)
(17,400)
6,709,541
$ 6,692,141
Indian River County, Florida
Combining Statement of Cash Flows
Nonmajor Enterprise Funds
For the Year Ended September 30, 2007
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 used in operating activities
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Transfers in
Transfers out
Net cash provided by (used in) noncapital financing activities
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Proceeds from sale of capital assets
Purchase of capital assets
Net cash 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 cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
Classified as:
Current assets
Restricted assets
Totals
154
Shooting
Range
$ 298,219 $
(120,492)
(293,555)
(115,828)
224,730
224,730
1,300
(21,972)
(20,672)
26,582
26,582
114,812
459,574
County
Building
2,952,442 $
(953,453)
(2,1965736)
(197,747)
(49,938)
(49,938)
16,742
(29,902)
Totals
3,250,661
(1,073,945)
(2,490,291)
(313,575)
224,730
(49,938)
174,792
18,042
51,874)
(13,160) (33,832)
226,797
226,797
(34,048)
253,379
253,379
80,764
4,692,809 531523383
$ 574,386 $ 45658,761 $ 5,233,147
$ 533,963
40,423
$ 574,386
$ 45586,190
72,571
$ 4,658,761
$ 55120,153
112,994
$ 5,2335147
M
iw
13
U
1�
0
0
Indian River County, Florida
Statement of Cash Flows
Nonmajor Enterprise Funds
For the Year Ended September 30, 2007
RECONCILIATION OF OPERATING LOSS
TO NET CASH USED IN OPERATING ACTIVITIES
Operating loss
Adjustments to reconcile operating income to net cash
used in operating activities:
Depreciation
(Increase) Decrease in assets:
Accounts receivable
Inventories
Prepaid expenses
Increase (Decrease) in liabilities:
Accounts payable
Due to other governments
Other deposits held in escrow
Accrued compensated absences
Total adjustments
Net cash used in operating activities
NONCASH CAPITAL AND RELATED
FINANCING ACTIVITIES
Change in fair value of investments
155
Shooting
Range
County
Building
Totals
$ (166,962) $ (285,117) $ (4525079)
39,333 1345539 173,872
77 77
(4,786) - (49786)
(60) (60)
10,439 (62,144) (51,705)
281 (25607) (21326)
5,867 17,566 23,433
51,134 87,370 1389504
$ (115,828) $ (197,747) $ (3137575)
$ 4,775 $ 39,021 $ 43,796
� ��
156
m
E3
EM
INTERNAL SERVICE FUNDS
Fleet Management -
Self Insurance -
Geographic Information System -
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 geographic information system.
157
Indian River County, Florida
Combining Statement of Net Assets
Internal Service Funds
September 30, 2007
ASSETS
Current assets:
Cash and cash equivalents
Accounts receivable - net
Due from other governments
Inventories
Prepaid expenses
Total current assets
Non-current assets:
Capital assets- non -depreciable
Accumulated depreciation
Total non-current assets
Total assets
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
Total non-current liabilities
Total liabilities
NET ASSETS
Invested in capital assets, net of related debt
Unrestricted
Total net assets
Fleet
Management
$ 3719480 $
181,881
18,440
137,401
709,202
202,281
(138,225)
64,056
773,258
163,262
22,305
185,567
8,154
8,154
193,721
Self
Insurance
17,4705957 $
5
1,678,005
19,148,967
25,740
(14,045)
11,695
19,160,662
226,750
6,559,000
12,450
6,798,200
10,189
10,189
6,808,389
Geographic
Information
Systems
116,884 $
116,884
593,326
(28,499)
564,827
681.711
73,531
73,531
73,531
Totals
17,959,321
181,881
18,445
137,401
1,678,005
19,975,053
821,347
(180,769)
640,578
20,615,631
463,543
6,559,000
34,755
7,057,298
18,343
18,343
7,075,641
64,056
115695
564,827
640,578
515,481
12,340,578
43,353
12,8995412
$ 579,537
$
12,352,273 $
608,180 $
1355395990
158 w.
M
0
Indian River County, Florida
Combining Statement of Revenues, Expenses,
and Changes in Fund Net Assets
Internal Service Funds
For the Year Ended September 30, 2007
OPERATING REVENUES
Charges for services
Vehicle maintenance
Self insurance
Geographic information systems
Total revenues
OPERATING EXPENSES
Personal services
Material, supplies, services and other operating
Depreciation
Total operating expenses
Operating income
NONOPERATING REVENUES
Interest income
Operating grants
Total nonoperating revenues
Change in net assets
Total net assets - beginning
Total net assets - ending
Fleet
Management
$ 3,593,522 $
3,593,522
553,866
3,016,378
9,305
3,579,549
13,973
15,141
4
15,145
29,118
550,419
Self
Insurance
W
19,738,824
19.738,824
2,273,147
14,956,197
3,282
17,232,626
2,506,198
839,630
13
839,643
3,345,841
9,006,432
Geographic
Information
Systems
707,247
707,247
22,848
61,951
25,462
110,261
596,986
1,108
1,108
598,094
10,086
Totals
3,593,522
19,738,824
707,247
24,039,593
2,849,861
18,034,526
389049
20,922,436
3,117,157
855,879
17
855,896
3,973,053
9,566,937
$ 579,537 $ 12,352,273 $ 608,180 $ 13,539,990
159
Indian River County, Florida
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended September 30, 2007
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 operating activities
Fleet
Management
Self
Insurance
Geographic
Information
Systems
Totals
$ 3,615,502 $
21,0065360 $
707,247 $
25,3295109
(2,987,313)
(1531185155)
(35,363)
(185140,831)
(5585574)
(2,271,254)
(22,848)
(23852,676)
695615
356165951
6495036
4,3351602
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Operating grants
Net cash provided by noncapital financing activities
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Purchase of capital assets
Net cash used in capital and related
financing activities
2 8
2 8
9
10
(39,904) (15200) (533,260) (574,364)
(395904) (1,200) (5339260) (574,364)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest and dividends on investments 15,141 839,630
Net cash provided by investing activities 15,141 8395630
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
Classified as:
Current assets
Totals
441854 41455,389
326,626 13,015,568
11108 855,879
13108 8553879
11604 4,617,127
13,342,194
$ 371480 $ 17,4705957 $ 11604 $ 179959,321
$
371,480
$
175470,957
$
1165884
$ 1799595321
$
3715480
$
175470,957
$
11604
$ 175959,321
4* -
160 ow
Indian River County, Florida
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended September 30, 2007
Geographic
Fleet Self Information
Management Insurance Systems Totals
RECONCILIATION OF OPERATING
INCOME TO NET CASH PROVIDED
BY OPERATING ACTIVITIES
Operating income $ 13,973 $ 2,5065198 $ 596,986 $ 3,117,157
Adjustments to reconcile operating income to net cash
provided by operating activities:
Depreciation 9,305 3,282 25,462 38,049
(Increase) Decrease in assets:
Accounts receivable 225040 1,267,536 - 1,289,576
Due from other governments (60) - - (60)
Inventories (25,841) - - (25,841)
Deposits - (855,855) - (8555855)
Increase (Decrease) in liabilities:
Accounts payable 54,906 897 265588 82,391
Claims payable - 693,000 - 69300
Accrued compensated absences (4,708) 103 - (2,815)
.� Total adjustments 55,642 1,1105753 52,050 1,218,445
Net cash provided by operating activities
NONCASH CAPITAL AND RELATED
FINANCING ACTIVITIES
Change in fair value of investments
$ 69,615 $ 3,6165951 $ 649,036 $ 4,335,602
$ 1,857 $
161
74,252 $ 338 $ 76,447
:lxlp D
L\Nhhsh��,
162
FIDUCIARY FUND
Agency Fund- To account for the assets held solely in a custodial
capacity by the County.
m
163
Indian River County, Florida
Combining Statement of Changes in Assets and Liabilities
Agency Fund
For the Fiscal Year Ended September 30, 2007
ASSETS
Cash and cash equivalents
Accounts receivable
Total assets
LIABILITIES
Accounts payable
Due to other governments
Other deposits held in escrow
Total liabilities
Balance
October 1,
2006
Additions
Deductions
Balance
September 30,
2007
$ 155346,612 $ 393,1655386 $ 3985412,602 $ 10,0995396
169074 685922 84,996 -
$ 15,3629686 $ 393,234,308 $ 398,497,598 $ 10,0995396
$ 2835499 $ 60,2493726 $ 605187,555 $ 345,670
45672,907 342,023,445 341,8355843 400,509
10,406,280 38,3635679 4318765742 4,893,217
$ 155362,686 $ 4401636,850 $ 445,9001140 $ 10,099,396
164
0
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 Palle(s)
Financial Trends (Schedules 1 - 5) 166-176
.. These schedules contain trend information to help the reader understand how the
County's financial performance and well-being have changed over time.
Revenue Capacity (Schedules 6 — 9) 177481
These schedules contain information to help the reader assess the County's most
significant local revenue source, the property tax.
Debt Capacity (Schedules 10 — 16) 182-191
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 17 —18) 192-193
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 19 — 22) 194-205
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 23 — 28) 206-212
These schedules provide information for required continuing disclosure for the
water and sewer, golf course and spring training bonds.
Sources:
Unless otherwise noted, the information in these schedules is derived from the
comprehensive annual financial report for the relevant year. The County
implemented GASB Statement 34 in 2001; schedules presenting government -
wide information include information beginning in that year.
165
Indian River County, Florida
Net Assets by Component
Last Seven Fiscal Years
(accrual basis of accounting)
Governmental activities
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total governmental activities net assets
Business -type activities
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total business -type activities net assets
Primary government
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total primary government net assets
2001
$ 214,622,489 $
100,7421230
17,953,280
2002
225,1791898 $
113,252,580
17,559,989
2003
227,795,289 $
1125083,712
20,389,245
2004
242,0573257
128,0245220
22,697,741
$ 333,317,999 $ 355,9921467 $ 3601268,246 $ 392,779,218
$ 97,701,866 $
106,0045641 $
113,354,198 $
122,280,348
26,7581894
31,1795151
425971,494
57,8251011
43,816,852
453137,431
47,0791296
44,084,834
$ 168,277,612 $ 182,321,223 $ 203,404,988 $ 2241190,193
$ 3121324,355
127,501,124
61,770,132
$ 331,184,539 $
144,431,731
62,697,420
341,1495487 $
155,055,206
67,468,541
364,3371605
1851849,231
66,782,575
$ 5015595,611 $ 53853135690 $ 5633673,234 $ 616,969,411
(A) Completed construction and renovations for beach renourishment, county administration buildings,
Emergency Operations Center, five fire stations, county park improvements, and the purchase of
environmentally sensitive lands.
(B) The County redefined restricted and unrestricted net assets to reflect special revenue funds from
unrestricted and restricted.
166
IM
2005
2006 2007
$ 2645193,976 $ 278,213,361 $ 3745501,758 (A)
1505019,583 15810461966 1739236,941 (B)
60,7377524 1215561,389 601726,026 (B)
$ 474,9515083 $ 557,8217716 $ 608,4647725
$ 1345402,945 $ 152,168,135 $ 1745540,682
811084,337 895071,967 83,8403471
52,553,913 53,751,547 477338,783
$ 268,041,195 $ 2945991,649 $ 30557195936
$ 3985596,921 $ 430,3815496 $ 549,042,440
231,103,920 247,118,933 257,077,412
113,291,437 175,312,936 108,0641809
$ 742,992,278 $ 852,813,365 $ 914,184,661
1�
167
Schedule 1
Expenses
Governmental activities:
General government
Public safety
Physical environment
Transportation
Economic development
Human service
Cultural/Recreation
Court related
Interest on long-term debt
Total governmental activities expenses
Business -type activities:
Water and sewer
Solid waste
Golf course
Other
Total business -type activities expenses
Total primary government expenses
Program Revenues
Governmental activities:
Charges for services:
General government
Public safety
Physical environment
Transportation
Human service
Cultural/Recreation
Court related
Operating grants and contributions
Capital grants and contributions
Total governmental activities program revenues
Business -type activities:
Charges for services:
Water and sewer
Solid waste
Golf course
Other
Operating grants and contributions
Capital grants and contribution
Total business -type activities program revenues
Total primary government program revenues
Indian River County, Florida
Changes in Net Assets
Last Seven Fiscal Years
(accrual basis of accounting)
2001
$ 13,756,310
42,896,286
2,145,214
13,525,659
1,358,025
4,612,841
10,631,008
5,151,347
587,004
94,663,694
22,459,042
8,245,056
2,894,314
1,409,610
35,008,022
$ 129,671,716
$ 6,357,015
3,626,767
97,687
3,893,294
69,594
1,094,588
901,485
5,122,151
3,756,327
24,918,908
18,917,518
9,628,155
3,033,997
1,673,916
111,252
9,973,352
43,338,190
$ 68,2573098
2002
$ 17,942,122
45,186,455
1,648,446
14,878,771
357,911
5,975,775
8,157,505
5,472,095
1,710,405
101,329,485
23,240,123
8,043,106
2,777,519
1,882,038
35,942,786
$ 137,272,271
$ 5,349,797
4,120,093
64,314
4,476,914
186,290
473,043
1,515,840
5,425,369
4,818,626
26,430,286
19,962,496
9,897,222
2,897,502
2,009,737
11,256,039
46,022,996
$ 725453,282
2003
$ 20,323,241
46,409,761
791,383
16,264,468
587,227
6,165,603
8,711,251
6,144,728
1,549,957
106,947,619
25,015,125
8,589,141
2,842,907
2,033,754
38,480,927
$ 1455428,546
2004
$ 23,287,533 (C)
54,052,726 (C)
1,039,550
21,335,262 (C)
639,826
7,664,422 (C)
9,616,323 (C)
6,221,983
1,313,340
125,170,965
26,907,959
14,103,641 (C)
2,806,115
2,532,617
46,350,332
$ 1713521,297
$ 6,513,557
4,288,357
29,260
5,584,999
302,998
776,829
1,458,688
5,175,499
19,908,254 (A)
44,038,441
21,210,935
10,187,432
3,112,087
2,432,420
271,662
19,796,906 (B)
57,011,442
$ 101,049,883
Notes:
(A) County received grants for the purchase of enviromentally sensitive lands and beach erosion; recorded as
(B) Contributions for water and sewer services by developers due to significant increast in County population.
(C) Increase in revenue and related expenses due to hurricane Frances and Jeanne in 2004; and hurricane
(D) Impact fees increased with building boom.
(E) Environmentally sensitive lands purchased with bond proceeds.
(F) Significant increase in SHIP programs due to population growth and building boom in 2005.
(G) Issued new Limited G.O.B. debt for $48,600,000.
(H) Completed sections of beach renourishment program.
(1) Grants received for beach renourishment environmental sensitive lands, and various road projects.
168
7,593,486
3,927,664
92,354
11,182,015
604,379
813,827
1,449,771
9,270,478
11,784,511 (C)
46,718,485
22,984,883
11,160,368
3,099,287
3,202,380
5,760,512
199138,278 (B)
65,345,708
$ 11204,193
a.
�
m
m
2005
$ 18,165,441 $
54,271,542
2,850,738
21,726,741
696,448
7,385,726
10,775,291
5,704,361
1,246,237
1227822,525
30,260,577
197156,896 (C)
2,939,321
3,768,301
56,125,095
$ 178,947,620
11.
14,642,124 `.
58,578,985
8,490,570 (E)
22,011,006
1,077,731
12,270,899 (F)
11,546,217
6,014,793
2,3155372 (G)
136,9473697
33,387,825
11,558,323
3,058,307
4,202,588
52,207,043
$ 189,154,740
$ 8,779,557 $
4,712,594
631,456
37,384,003 (D)
821,811
800,555
2,294,908
16,310,024 (C)
6,069,586
77,804,494
25,579,512
16,874,618
3,247,815
4;535,869
8,518,757
38,112,182 (B)
96,868,753
$ 1741673,247
10,437,774
7,151,354
854,219
16,619,853
754,916
5,480,612
2,466,882
13,420,891
13,081,116
70,267,617
2007
15,506,424
42,050,455
345998,512 (E)
26,173,989
950,024
13,925,599
315196,252 (H)
6,870,466
3,2205907 (G)
174,892,628
37,518,226
10,331,431
3,084,837
3,703,658
54,638,152
229,530,780
$ 7,9573770
5,728,644
1,447,553
5,618,055
545,305
2,425,679
2,800,680
25,561,608 (I)
13,441,915
28,029,062
13,741,864
3,306,424
4,746,668
1,235,413
26,781,118 (B)
77,840,549
$ 148,108,166
65,527,209
27,541,849
11,946,566
3,374,772
3,250,585
72,828
9,729,371
55,915,971
$ 12134435180
Continued
169
Schedule 2
Indian River County, Florida
Changes in Net Assets
Last Seven Fiscal Years
(accrual basis of accounting)
Net (Expense)/Revenue
Governmental activities
Business -type activities
Total primary government net expense
General Revenue and Other Changes in Net Assets
Governmental activities:
Property taxes, levied for general purposes
Property taxes, levied for debt service
Sales and use taxes
Franchise fees
State shared revenues
Insurance recoveries
Interest earnings
Miscellaneous
Transfers
Total governmental activities
Business -type activities:
Interest earnings
Miscellaneous
Transfers
Total business -type activities
Total primary government
Change in Net Assets
Governmental activities
Business -type activities
Total primary government change in net assets
Notes:
2001
2002 2003
$ (69,744,826) $ (74,89% 199) $ (62,90% 178)
8,330,168 10,080,210 18,530,515 (K)
2004
$ (7854523480) (J)
1859955376 (K)
$ (595457,104)
$ 50,825,605 $
55,407,180 $
60,139,514
$ 67,701,525
1,570,336
1,581,362
2,595,265
2,427,908
153620,653
16,9835678
17,162,979
1838255771
6,255,747
5,7975407
6,222,326
6,720,166
12,228,528
12,914,452
1005,656
11,608,557
101637,239 551897432
697,932 1,103,457
(24065) (1,403,301)
97,595,375 97,573,667
61293,439 3,790,253
85,496 15,100
117,130 158,048
2,787,928
1,761,754
(157,870)
101,117,552
2,332,013
63,367
157,870
6,4965065 35963,401 2,553,250
1. 1• • 1 1 1.: 1 . 1 :1
$ 27,850,549 $ 22,674,468 $ 3852085374
14,826,233 14,043,611 21,083,765
42676782 $ 3• 1
(J) Hurricanes Frances and Jeanne FEMA reimbursements had not yet been received.
(K) Growth in water and sewer services due to expansion of County population
(L) Taxable values increased by $2 billion.
(M) Transfers for proportionate share of new county administration building.
170
2,536,347
1,336,789
(193,611)
110,963,452
1,590,203
6,015
193,611
1,789,829
$ 1125753,281
$ 32,5103972
20,785,205
$ 535296,177
M
E3
0
2005
2006
2007
$ (45,018,031) $ (66,6803080) $ (109,365,419)
40,743,658 (K) 25,633,506 1,277,819
$ (4,274,373) $ (41,046,574) $ (108,087,600)
$ 71,6985850 $ 82,448,807 (L) 92,592,309
2,480,497 2,465,462 7.094485
21,892,558 21,855,885 20,738,502
75941,020 9,318,394 95732,773
1450225896 13,0435670 12,3%421
306,960 1,1045116
4,444,772 12,1633993 16,004,890
1,235,708 2,089,540 1,583,343
(193,365) 5,060,846 (M) (106,295)
1275189,896 149,550,713 160,0085428
2,8613308 6,335,240 9,209,517
52,671 423554 134,656
193,365 (530605846) (M) 106,295
35107,344 1,316,948 95450,468
$ 130,297,240 $ 1505867,661 $ 169,458,896
$ 82,171,865 $ 82,870,633 $ 50,643,009
43,851,002 263950,454 10,7281287
$ 126,022,867 $ 109,821,087 $ 61,371,296
171
Schedule 2 -Continued
General Fund
Reserved
Unreserved
Total general fund
All other governmental funds
Reserved
Unreserved, reported in:
Special revenue funds
Debt service funds
Capital projects funds
Trust funds (A) (B)
Total all other governmental funds
Total governmental funds
Indian River County, Florida
Fund Balances, Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
1998
1999 2000
2001
$ 31,154 $ 34,154 $ - $
1614655867 17,509,428 165785,009 17,481,844
$ 165500,021 $ 17,5435582S 1657855009 $ 17,4815844
$ 2101,688 $ 291515,156S
38,148,520
(7,847)
3,555,156
39,174,856
(5,404)
428,687
3270045421 $ 49,0375252
461426,470 56,582,715
(73,536) -
337,915 -
452,492 -
$ 63,3571517 $ 69,113,295$ 799147,762 $ 105,619,967
$ 791857,538 $ 861656,877$ 95,9325771 $ 1235101,811
Notes:
(A) Inmate Welfare Trust Fund became a special revenue fund in FY 2001 with the implementation of GASB 34.
(B) Deferred Compensation Trust Fund totaling $3,259,708 in FY 1998 was subsequently classified as an agency.
172
L3
63
2002
2003
2004
2005
2006
Schedule 3
2007
18,244,725 20,1045115 20,623,340 3051525425 45,300,882 509321,956
$ 181244,725 $ 20,104,115 $ 201623,340 $ 30,152,425 $ 45,300,882 $ 509321,956
$ 40,013,059 $ 405667,031 $ 47,458,489 $ 50,2575972 $ 385075,117 23,047,708
75,879,893
69,317,385
74,344,120
11558221479
183,3185603
149,564,925
$ 1155892,952 $ 109,984,416 $ 1210209 $ 1665080,451 $ 221,3935720 $ 1725612,633
$ 134,137,677 $ 1303088,531 $ 1421425,949 $ 196,2325876 $ 266,694,602 $ 2225934,589
173
Revenue
Taxes
Licenses and permits
Intergovernmental
Charges and services
Fines and forfeitures
Special assessments
Interest
Miscellaneous
Total Revenue
Expenditures
Current:
General government
Public safety
Physical environment
Transportation
Economic environment
Human service
Cultural/Recreation
Court related
Debt service:
Principal
Interest and fiscal charges
Capital outlay
Total Expenditures
Excess of revenues over
(under) expenditures
Other Financing Sources (Uses)
Debt issuance
Payments to escrow agent
Payments from capital leases
Transfers out
Transfers in
Total other financing sources (uses)
Net changes in fund balance
Debt service as a percentage of
noncapital expenditures
Indian River County, Florida
Changes in Fund Balances, Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Em
$ 615740,699 $
327,978
16,392,327
9,316,954
1,286,672
2,549,184
5,130,526
1,470,974
1999
6454705143 $
480,408
16,431,926
10,125,675
1,164,084
3,288,159
4,297,530
2,126,436
981215,314 102,384,361
13,245,171
36,758,303
3,084,834
14,229,923
281,879
3,989,075
6,137,785
3,866,441
1,632,543
956,288
4,487,412
88,669,654
9,545,660
157,626
(107,326)
13,261,058
39,399,375
1,170,707
18,067,215
278,191
5,048,135
6,578,053
4,375,340
1,913,762
906,665
2,516,200
93,514,701
2000
699537,158 $
520,813
18,908,166
9,659,007
1,332,950
3,483,557
6,562,067
1,292,825
11152967543
14,069,358
39,734,506
4,780,305
12,663,766
259,354
4,928,117
7,326,459
4,565,674
5,305,502
890,236
7,563,130
2001
73,553,625
493,585
18,764,102
11,037,594
1,251,098
3,799,994
9,333,122
1,594,863
119,8271983
14,834,937
42,872,181
1,312,972
11,801,892
1,351,831
4,317,086
8,781,914
5,323,388
1,255,352
604,358
17,075,909
1025086,407 109,5315820
85869,660 93210,136
1,310,055
(120,668)
78,516
(118,275)
10,296,163
16,952,777
160,765
(240,665)
505300 191899387 (395759) 169872,877
$ 9,595,960 $ 105059,047 $ 95170,377 $ 271169,040
* 3.1%* 3.1%* 7.2%
* Not possible to determine capital expenditures in functional expenditure categories.
174
2.2%
73
In
1�
2002
2003
$ 80,488,343 $ 86,1209084 $
5155653 567403
2058025982 35,2131140
11,368,399 133683,108
1,421,542 1,584,737
4,230,519 4,9325130
55007,150 2,999,915
2,362,780 159645177
2004 2005
959675,370 $ 1045012,925 $
1,0339394 1,3541282
261588,303 35,973,818
14,282,587 189151,546
15508,786 1,7157875
10,754,774 3608,964
1,999,574 4,083,164
1,7911613 1,398,166
Schedule 4
2006 2007
116,088,548 $ 130,158,069
1,274,638
8967612
38,2619489
545252,074
18120400
185997,529
2,0695593
2,403,093
255010,919
7,500,825
10,574,489
15,777,318
4,5971369
3,495,610
126,197,368 147,064,694 153,6341401 203,3785740 216,081,645 233,4819130
165979,694 1854463787 191996,339 20,107,020 21,831,839 24,815,255
451352,323 47,565,048 5557929130 571045,359 65,9755870 72,9075822
1,473,749 17,613,489 15751,551 2,989,117 819551262 34,324,331
16,686,374 195442,909 21,9285790 21,285,597 30,610,413 491503,680
347,096 5835850 627,914 7131019 1,0545239 968,227
53756,579 6,1787917 7,185,411 7,270,391 125470,222 135862,463
9,117,900 18,378,068 13,1795751 15,062,134 16,3801438 23,751,173
5,8021798 5,998,260 612105614 5,6305734 559155727 6,649,724
m 2,2295201 21881,492 2,3941142 2,239,663 2,6151659 4,870,876
1,621,178 1,639,145 033,392 1,255,837 1,790,431 3,255,767
2057675383 12,2285005 105994,900 15,7799577 37,8485475 42489,997
1265134,275 1503955,970 141,394,934 149,3781448 205,4481575 2775399,315
63,093 (3,891,276) 12,2397467 54005292 10,633,070 (435918,185)
11,000,000 758005000 - - 49,996,735 -
(7,8001000) - -
275,000 - 291,562 - - 2643467
(302,227) (157,870) (193,611) (193,365) (236,067) (19,736,023)
10,067,988 19,629,728
10,972,773 (157,870) 971951 (193,365) 595828,656 158,172
$ 111035,866 $ (4,049,146) $ 121337,418 $ 53,8061927 $ 70,461,726 $ (43,760,013)
4.1%
4.4%
175
3.2%
2.9%
3.3%
5.5%
Indian River County, Florida oi.
Tax Revenues by Source, Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting) Schedule 5 .w
Fiscal Year Property (A) Sales & Use Tourist Franchise Gasoline Other Total
1998 43,631,196 95061,297 1,000,084 5,3635354 21684,768 - 61,740,699
1999 45,117,451 9,849,114 1,058,843 5,544,164 21900,571 - 641470,143.
2000 493233,150 1015465759 1,114,916 5,6155427 3,0261906 - 695537,158
2001 52,3959941 11,142,006 14089046 6,2551747 2,351,885 - 73,5535625
2002 56,9885542 11,399,491 1,410,409 5,797,407 3,967,345 925,149 803488,343
2003 62,734,779 115678,272 1,2865885 61222,326 3,2225742 975,080 86,120,084
2004 70029,433 12,850,023 15443,271 6,720,166 35497,894 150345583 955675,370
2005 745179,347 155582,689 116755781 71941,020 3,573,036 110615052 1041012,925
2006 84,914,269 15,736,078 15517,360 9,318,394 3,526,774 1,075,673 116,0881548
2007 991686,794 14,5499834 11449,083 917321773 3,482,514 15257,071 1301158,069
(A) The County's primary source of revenue is property taxes, amounting to 77 percent of Governmental Funds tax
revenues in 2007. Consequently, supplemental required schedules are provided only for property tax revenues.
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176.
Indian River County, Florida
Assessed Value and Actual Value of Taxable Property
Last Ten Fiscal Years Schedule 6
Real Personal Less: Total Taxable Total
Fiscal Property Property Total Tax -Exempt Assessed Direct
Year Actual Value Actual Value Actual Value Property Value Tax Rate
1998 7,807,203,863 622,046,910 8,429,250,773 292699305,899 65159,944,874 5.8080
1999 81080,247,333 6521698,708 8,732,946,041 2,3125730,608 6542092155433 5.7369
.. 2000 8,670,864,496 764,851,686 9,435,716,182 25440,619,325 6,995,096,857 5.5487
2001 951095672,314 725,390,231 9,83530625545 29394,1653810 7,440,896,735 5.5408
2002 10,5395705,283 707,941,621 11,247,646,904 2,706,441,764 8,541,205,140 5.5234
2003 115985,1285952 694,305,280 129679,434,232 35178,5431019 935005891,213 5.4713
2004 13,547,372,018 6935374,322 14,240,7463340 3,556,7171407 1084,0285933 5.5181
2005 153716,463,269 699,716,008 1654165179,277 4,236,183,618 12,1791995,659 5.1563
2006 19,265,0339998 712,011,582 19,977,045,580 517345060,645 14,2421984,935 4.9173
2007 2554581676,130 755,187,275 26,21318639405 8,366,7013791 17,847,161,614 4.3250
Source: Indian River County Property Appraiser; values are established as of January 1 of the previous
calendar year, i.e., January 1, 2006 taxable values apply to the fiscal year ending in 2007.
Total taxable values are also presented on schedules 8 and 11.
m
177
Indian River County, Florida
Property Tax Rates
Direct and Overlapping Tax Rates
Last Ten Fiscal Years
1998 1999 2000 2001
County direct rate
General fund 4.2783 4.2210 4.0855 4.1014
Municipal service 1.5297 1.5159 1.4632 1.4394
Total direct rate (A) 5.8080 5.7369 5.5487 5.5408
County -wide district school board rate 10.1400 10.1500 9.6140 9.5570
Other County -wide rates
Emergency Management Services District 2.2259 2.3360 2.4553 2.4913
Land acquisition bond 0.2710 0.2587 0.2396 0.2165
Total other County -wide rate 2.4969 2.5947 2.6949 2.7078
Total County -wide rate 18.4449 18.4816 17.8576 17.8056
City rates
Fellsmere 5.7507 5.7507 5.7500 5.7500
Indian River Shores 1.4760 1.4480 1.3890 1.4280
Sebastian 6.9000 6.5000 5.0000 5.0000
Orchid 2.5921 2.5635 2.1998 1.6793
Vero Beach 2.2190 2.1425 2.1425 2.1425
Average of cities rates
Other special district rates
3.7876
1.5185
3.6809
1.7364
3.2963
1.5209
(A) Per Florida State Statute 200.071, 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.
Source: Indian River County Property Appraiser
3.2000
1.6290
73
.6.
178 do
2002
2003
1.5330
4.0501
3.8729
1.4733
1.5984
5.5234
5.4713
9.0820
8.7320
0.2106
2.3660
2.2750
0.1947
0.2839
2.5607
2.5589
17.1661
16.7622
5.7500
1.4730
5.7500
5.7500
1.4284
1.4370
4.5904
4.5904
1.3430
0.9354
2.1425
2.1425
3.0509
2.9711
1.6105
1.9008
2004
3.8377
1.6804
5.5181
8.7100
2.1871
0.2344
2.4215
16.6496
5.7500
1.4730
4.5904
0.8954
2.1425
2.9703
2.1548
A 179
2005
Schedule 7
2006 2007
3.6233
3.5204
1.5330
13969
5.1563
4.9173
8.4990
8.2400
1.9836
1.9911
0.2106
0.1789
2.1942
2.1700
15.8495
15.3273
5.7500
5.7500
1.4730
1.4730
4.5904
3.9325
0.7508
0.6900
2.1425
2.2925
2.9413 2.8276
1.8923 1.6082
3.1914
1.1336
4.3250
7.4430
1.7639
0.4108
2.1747
13.9427
5.7500
1.4730
3.0519
0.4525
2.1425
2.5740
1.4795
Indian River County, Florida
Principal Property Taxpayers
Year 2007 and Year 1998
Real
Property
Assessed
Taxpayer Valuation
Florida Power & Light $ 107,980,290
Disney Vacation Dev. Inc. 8058265709
BellSouth Telecommunications 631599,672
I.R. Mall Association, Ltd. 56,688,230
ARC/DRCM Vero Beach Fl, LLC 521391,770
Windsor Properties 42,9371258
Johns Island Club Inc. 40,5635212
Adult Community Total Services 37,5345750
Wal-Mart Stores, Inc. 3456205231
Fellsmere Joint Venture 30,287,490
Horizon Outlet Center Ltd. -
Total Principal Property Taxpayers
Real Property Assessed Valuation $ 547,429,612
Total County Taxable Valuation $ 175847,161,614
(from schedule 6)
Source: Indian River County Property Appraiser
2007
Percentages
of Total
Assessed
Rank Valuation
1 0.61%
2 0.45%
3
4
R
6
7
8
X
10
0.36%
0.32%
0.29%
0.24%
0.23%
0
Schedule 8
IT&=
Real
Percentages
Property
of Total
Assessed
Assessed
Valuation
Rank Valuation
47,224,972
61,150,408
63,610,660
63,604,349
34,421,272
25,793,290
39,539,027
23,680,762
37,160,350
28,408,782
3.07% $ 4245593,872
$ 6,159,9443874
4 0.77%
3
1
2
7
9
5
10
6
8
0.99%
1.03%
1.03%
0.56%
0.42%
0.64%
no 9316NI
0.60%
0.35%
6.78%
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Indian River County, Florida
Property Tax Levies And Collections
Last Ten Fiscal Years
Schedule 9
All taxes are due and
payable on
November 1 of each year or as soon thereafter as the assessment roll is certified and delivered
Percent of
All unpaid
taxes become delinquent on
Percent of
are allowed for early
Total
Current
Current Tax
Delinquent
Total
Total Tax
in March are without discount.
Tax
Tax
Collections
Tax
Tax
Collections
Year
Levy
Collections
To Tax Levy
Collections (1)
Collections
To Tax Levy
1998 $
45,087,396 $
43,498,326
96.48%
$ 65,517 $
43,563,843
96.62%
1999
47,178,979
44,985,116
95.35%
132,335
455117,451
95.63%
2000
50,599,662
48,9361993
96.71%
1081698
495045,691
96.93%
2001
53,727,318
52,148,971
97.06%
1581661
52,307,632
97.36%
2002
595184,019
565856,770
96.07%
95,364
56,952,134
96.23%
2003
65,2893186
62,668,552
95.99%
7,797
62,676,349
96.00%
2004
72,306,331
69,906,761
96.68%
1765345
70,083,106
96.93%
2005
76,7485078
73,9911702
96.41%
111,220
745102,922
96.55%
2006
87,754,823
84,7365835
96.56%
34,344
84,771,179
96.60%
2007
102,986,045
99,404,127
96.52%
61,566
995465,693
96.58%
All taxes are due and
payable on
November 1 of each year or as soon thereafter as the assessment roll is certified and delivered
to the Tax Collector.
All unpaid
taxes become delinquent on
April 1 following the year in which they are assessed. Discounts
are allowed for early
payment at
the rate of 4% in the month
of November, 3% in the month of December, 2% in the month
of January and 1% in
the month
of February. The taxes paid
in March are without discount.
(1)On or prior to June 1 following the tax year, certificates are sold for all delinquent taxes on real property. After the sale, tax
certificates bear interest of 18% per year or at any lower rate bid by the buyer. Application for a tax deed on any unredeemed
tax certificates may be made by the certificate holder after a period of two years. Unsold certificates are held by the County.
Delinquent taxes on personal property bear interest of 18% per year until the tax is satisfied either by seizure and sale of the
property or by the five year statute of limitations. The County does not accrue its portion of the County -held certificates due to
the immaterial amount.
Source: Indian River County Property Appraiser and Tax Collector provided the above information; consequently, the
reported collections on this schedule will vary from the actual collections as reported on Schedule 5. The Tax Collector
does not report the interest earnings on the collections, however, the Board includes those interest earnings as part of the total
tax collection.
181
Indian River County, Florida
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities Business -type
General Refunding Spring Training Recreational
Obligation Revenue Facility Bonds Revenue Capital
Year Bonds (A) Capital Leases Bonds (B) 2001 Series Bonds (C) Leases
1998 $ 12,755,000 $ 648,491 $ 45680,000 $ - $ 8,455,000 $ -
1999 11,945,000 1,429,784 4,105,000 - 8,1405000 2409648
2000 11,100,000 1,3131562 - - 7,8151000 165,105
2001 10,215,000 9433210 - 16,810,000 7,470,000 84,981
2002 19,81000 754,009 - 1614505000 7,110,000 -
2003 17,725,000 417,518 - 15,9905000 61735,000 -
2004 16,08000 4345938 - 15,5155000 6,045,000 -
2005 14,385,000 3805275 - 15,025,000 51595,000 263,237
2006 61,255,000 - - 14,520,000 55135,000 193,786
2007 57,1605000 8,591 - 1450003000 4,660,000 110,025
(A) General Obligation Bonds include Series 1995, Series 2001, Refunding Series 2003, and
Limited General Obligation Bonds, Series 2006. This information is also presented on Schedule 11.
(B) Refunding Revenue Bonds include Series 1985 and Series 1992
(C) Recreational Revenue Bonds, Series 1993 and Recreational Revenue Refunding Bonds,
Series 2003.
(D) Water & Sewer bonds include Series 1993, Series 1996, and Refunding Series 2005. In year 1996,
this column also includes Solid Waste Revenue bonds, Series 1988.
(E) Information not available
Source for per capita income is University of Florida, Bureau of Economic and Business Research.
182
IM
Activities
Percentage
Total of Total Debt
Water & Sewer Primary to Personal
Bonds (D) Government Income
$ 81,690,000 $ 108,228,491 2.87
799795,000 105,655,432 2.65
77,8305000 98,22307 2.33
76,21500 111,738,191 2.45
74,5251000 118,649,009 2.54
72,76000 113,6275518 2.33
70190500 108,979,938 1.93
640000 1001528,512 1.71
62,490,000 143,593,786 (E)
59,985,000 135,9235616 (E)
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Schedule 10
Component Unit
Percentage
Per Housing of Personal Per
Capita Authority Income Capita
$ 1,015 $ 4,432,400
964
4,257,400
870
4001400
966
35901,400
104
3,720,400
938
35538,400
859
3,354,400
773
35168,400
1,062
3,168A0
973
2,790,400
183
0.12 $ 42
0.11 39
0.10 36
0.09 34
0.08 31
0.07 29
0.06 26
0.05 24
(E) 23
(E) 20
Indian River County, Florida
Ratio of Net General Bonded Debt Outstanding to Taxable Value and Net Bonded Debt per Capita
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
1998 106,675 $ 6,159,944,874 $ 121755,000 $ 885,904 $ 1198695096 0.0019 $ 111.2600
1999 109,579 63420,215,433 11,945,000 15072,959 10,8725041 0.0017 99.2200
2000 1125947 63995,9481262 11,100,000 113575461 9,7421539 0.0014 86.2600
2001 1155716 75440,8965735 105215,000 116095998 81605,002 0.0012 74.3600
2002 118,149 8,541,2053140 191810,000 1,0851999 18,724,001 0.0022 158.4800
2003 121,274 9,50098915213 1757255000 684,016 17,0401984 0.0018 140.5200
2004 126,829 10168450285933 16,080,000 867)776 15,2125224 0.0014 119.9400
2005 1301043 125179,9951659 141385,000 1,1069353 13,2785647 0.0011 102.1100
2006 135,262 14,242,984,935 61,2551000 1,3751837 59,8795163 0.0042 442.6902
2007 139,757 17,847,1611614 57,160,000 1,9565189 55,203,811 0.0031 394.9985
(A) Columns are provided as additional information for General Obligation Bonds (G.O.B.), Series 2001 and 2003 and
Limited G.O.B., Series 2006. Total taxable values are also presented in Schedule 6.
Gross G.O.B. debt is also presented on Schedule 10.
Source of population data is the University of Florida, Bureau of Economic and Business Research.
184
Indian River County, Florida
Computation of Legal Debt Margin
September 30, 2007
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.
185
Schedule 12
Indian River County, Florida
Direct and Overlapping Government Activities Debt
Sentember 30. 2007 Schedule 13
Governmental Unit Share of
Debt Percentage Overlapping
Debt repaid with property taxes: Outstanding Applicable Debt
Indian River County General Obligation Bonds, Series 2001 622333447 (A) 100% $ 61233,447
Indian River County General Obligation Bonds, Refunding Series 2003 2,975,130 (B) 100 2,9755130
Indian River County Limited General Obligation Bonds, Series 2006 451995,234 (C) 100 45,995,234
Indian River County School District General Obligation Bonds, 2002 Refundir 16,015,000 (D) 100 161015,000
Indian River County School District General Obligation Bonds, 2003 Refundir 9,295,000 (D) 100 9,295,000
Other debt:
Indian River County School District Certificates of Participation 77,1502000 (D) 100 77,150,000
Indian River County School District Capital Lease Payable 237,975 (D) 100 237,975
Indian River County School District Estimated Long -Term Claims Payable 815863 (D) 100 812863
Indian River County School District State School Bonds, Series 2005-A 6,090,000 (D) 100 65090,000
$ 16420735649
(A) Ending General Obligation, Series 2001 balance $ 7,365,000
Less: Fund balance available in debt service fund (1,1311553)
Net Debt Outstanding $ 6,2335447
(B) Ending General Obligation, Refunding Series 2003 balance $ 315155000
Less: Fund balance available in debt service fund (539,870)
Net Debt Outstanding $ 259755130
(C) Ending Limited General Obligation , Series 2006 balance $ 46,280,000
Less: Fund balance available in debt service fund (284,766)
Net debt outstanding $ 451995,234
Total direct debt of county $ 55,2035811
(D) Indian River County School District, as of June 30, 2007
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.
186 W.
03
187
Uniform Charges
Water sales
Wastewater sales
Other
Total uniform charges
Septage/Sludge
Surcharges
Interest Earnings
1989/1990 Special assessments
1996 Special assessments
Gross revenue
Direct expense
Net revenues available
for debt service
Annual debt service
Principal
Interest
Total debt service payment.
Debt service coverage
Indian River County, Florida
Pledged Revenue Coverage
Water and Sewer Revenue Bonds
(Series 1993A, 1996, 2005)
Last Ten Fiscal Years
1998
1999
2000
2001
$ 755765145 $ 8,1059703 $ 8001435 $ 9,101,553
7,4881529 7,913,884 7,9915280 8,1549933
1,462,839 11162,098 19443,978 15367,291
16,527,513 1751815685 18,1153693 18,6235777
127,544
345,390
1,964,251
496,944
1,458,337
20,919,979
118,633
234,729
1,845,469
53,386
223,384
231,478
2,938,338
166,239
741,707 115425906
201175,609 235218,038
8,565,905 7085098 81361,845
293,741
238,079
4,577,350
37,235
870,629
24,640,811
9,388,472
$ 12,3541074 $ 12,307,511 $ 14,8569193 $ 15,252,339
$ 1,835,000 $ 19895,000 $ 1,965,000 $ 1,615,000
4,4119549 4,3525069 4,267,654 49177,559
$ 6,246,549 $ 6,247,069 $ 6,232,654 $ 51792,559
1.97x 1.97x 2.38x 2.63x
Note: In accordance with Water and Sewer Revenue Refunding Bonds, Series 2005 bond covenants,
there are items included in the debt service coverage calculation other than normal operating
revenues. These items include surcharges and collections on special assessments, which
are considered contributions of capital.
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188 i&
Schedule 14
2002 2003 2004 2005 2006 2007
$ 9,373,866 $ 10,1089045 $ 111037,623 $ 12,1463416 $ 13,336,623 $ 13,529,341
8,5341228 8,940,200 9,4391597 105437,091 11,634,181 12,003,677
1,684,506 1,3145453 154269112 105,502 15744,486 1,386,198
19,592,600 20,3629698 215903,332 241269,009 26,715,290 26,9195216
3819741 348,320 278,897 2693575 3321329 290,955
2479137 243,342 234,746 242,451 244,166 243,919
23983,032 1,797,260 15269,838 252645132 4,5545419 6,576,873
9,409 115650 1,564 - 60,229 21,138
2,619,805 2,75201 15539,600 722,922 350,712 2681883
255833,724 25,515,931 25,227,977 27,7685089 321257,145 345320,984
m 9,6621508 1057239548 1215071398 12,8535872 143270,414 16,226,651
W
$ 16,171,216 $ 14,7921383 $ 129720,579 $ 14,914,217 $ 175986,731.$ 18,094,333
$ 13690,000 $ 1,765,000 $ 15855,000 $ 21020,000 $ 2,3903000 $ 21505,000
4,1029839 45021,989 39936,019 35525,573 3,157,260 3,0419150
$ 5,792,839 $ 5,786,989 $ 5,791,019 $ 555455573 $ 5,5475260 $ 5,546,150
2.79x 2.56x 2.20x 2.69x 3.24x 3.26x
189
Indian River County, Florida
Pledged Revenue Coverage
Recreational Revenue Refunding Bonds, Series 2003
Last Ten Fiscal Years Schedule 15
Golf Course Operations
Less: Net
Fiscal Revenues Expenses Available Debt Service Operations
Year Gross (A) Operating (B) Revenues Principal Interest Total Coverage
1998 $ 2,842,342 $ 21068,075 $ 774,267 $ 3009000 $ 4303818 $ 7309818 1.06
1999 21928,530 2,0635359 865,171 315,000 4185518 733,518 1.18
2000 299989955 2,110,920 888,035 325,000 4049973 7299973 1.22
2001 3,095,768 251905943 904,825 345,000 3909673 735,673 1.23
2002 25928,157 25188,791 739,366 3609000 375,148 735,148 1.01
2003 3,135,478 233265179 8095299 375,000 3579103 732,103 1.11
2004 3,105,806 2,474,969 630,837 410,000 2021155 6125155 1.03
2005 39252,414 2,5909759 661,655 4505000 188,307 6381307 1.04
2006 313245127 2,554,640 769,487 460,000 179,291 639,291 1.20
2007 35396,639 21670,309 726,330 475,000 1705016 6459016 1.13
(A) Gross revenues include charges for services of the golf course as well as interest income.
Grant revenues and gain on disposal of equipment are excluded.
(B) Operating expenses include all expenses except depreciation, amortization, and interest expense.
Loss on disposal of equipment is excluded.
Note: Details regarding the County's outstanding debt can be found in the Notes to the Financial Statements.
190
Indian River County, Florida
Pledged Revenue Coverage
Housing Authority - Component Unit
Last Ten Fiscal Years
Schedule 16
Housing Authority Activity
Less: Net Revenue
Direct Available
Fiscal Revenues Expenses For Debt Debt Service Requirements
Year Gross (A) Operating (B) Service Principal Interest Total Coverage
1998 $ 6379191 $ 4165078 $ 2215113 $ 17300 $ 46,054 $ 2195054 1.01
1999 630,100 409,647 220,453 17500 441293 2195293 1.01
2000 6665946 4021612 264,334 177,000 425705 219,705 1.20
2001 716,796 449,220 2673576 179,000 40,655 2199655 1.22
2002 712,236 4651551 246,685 1815000 39,014 2205014 1.12
2003 690,645 494,031 196,614 1821000 37,052 2193052 0.90
' 2004 615,450 538,808 76,642 184,000 325903 216,903 0.35
2005 5995074 6641806 (655732) 18600 33,388 2199388 (0.30)
2006 671,949 50405 167,064 188,000 36,965 2245965 0.74
2007 651,281 588,978 62,303 190,000 9,431 199,431 0.31
(A) Gross revenue includes rental assistance subsidy, tenant rental income, and other income. Interest income
is excluded.
(B) Operating expenses include all expenses except depreciation and interest expense.
Note: Details regarding the outstanding debt can be found in the Notes to the Financial Statements.
Even through the Housing Authority is not a part of the primary government, this schedule is required for
continuing disclosure.
191
Year Population (A)
1998 106,675
1999 109,579
2000 1121947
2001 115,716
2002 118,149
2003 121,274
2004 1261829
2005 130,043
2006 135,262
2007 1391757
Indian River County, Florida
Demographic and Economic Statistics
Last Ten Years
Total
Personal
Income (B)
$ 31770589600
3,983,0195000
4120796835000
4,55252389000
41680,414,000
406108600
51643,4081000
55886,3195000
(D)
(D)
Per Capita
Personal
Income (B)
$ 34,608
35,788
373106
39,466
39,682
40,648
45,336
46,219
(D)
(D)
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
Schedule 17
Unemployment
Rate (C)
8.1
7.6
7.0
6.5
7.7
8.2
6.9
4.7
4.7
7.0
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N
Indian River County, Florida
Principal Employers
Year 2007 and Nine Years Agc
Number of
Employer Employees
School District of Indian River County
Indian River County *
Indian River Memorial Hospital
The New Piper Aircraft
Publix Supermarkets
City of Vero Beach
Sebastian River Med.
Hale Groves
Wal-Mart
John's Island
Total
Total County Employees
1998
2,125
1,706
1,300
1,029
950
600
530
500
449
446
9,635
57,292
Number of
Employer Employees
School District of Indian River County 1,631
Indian River Memorial Hospital 1,412
Indian River County* 1,341
The New Piper Aircraft 933
Publix Supermarkets 715
Wal-Mart 672
City of Vero Beach 633
Hale Indian River Groves 500
John's Island 475
Gracewood Fruit Company 465
Total 8,777
Total County Employees
36.613
2007
Schedule 18
Percentage
of Total County
Employment
3.71%
2.98%
2.27%
1.80%
1.66%
1.05%
0.93%
0.87%
0.78%
0.00%
16.04%
Percentage
of Total County
Employment
4.45%
3.86%
3.66%
2.55%
1.95%
1.84%
1.73%
1.37%
1.30%
1.27%
23.97%
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 Court, Supervisor of Elections,
Property Appraiser, Sheriff, and the Tax Collector.
193
Indian River County, Florida
Building Permits
Last Ten Fiscal Years
0
Indian River County
Fiscal # of New # of Additions & # of New
Year Permits Construction Permits Alterations Permits Construction
1998 1,039 $ 180,3365969 1,699 $ 17,333,346 452 $ 90,073,878
1999 15236 191,181,886 1,778 23,376,870 498 110,112,805
2000 1,336 248,523,923 1,710 2053459326 482 1515128,071
2001 1,518 259,705,809 104 241332,468 503 112,404,111
2002 15658 291,543,816 11334 32,118,404 599 142,231,044
2003 2,084 386,495,461 1,382 28,817,520 770 128,376,076
2004 3,889 642,032,168 1,935 461173,846 773
2005 4,770 703,9721409 45409 57,549,895 15147
2006 3,760 754,817,641 5,630 43,898,675 826
2007 1,404 280,0561839 3,899 385290,132 269
Source: Building Departments - Indian River County (including the City of Vero Beach),
Town of Orchid, Town of Indian River Shores, City of Sebastian, and City of Fellsmere.
Munici-
182,843,901
262,135,977
185,5569022
107,099,115
M
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0
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W*
Ak
71
194
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Schedule 19
palities Countywide
# of Additions & # of New # of Additions &
Permits Alterations Permits Construction Permits Alterations
35024 $ 28,195,353
35023 211622,464
3,213 23,510,426
3,364 30,274,210
3,588 27,3335128
4,141 37,578,377
4,395 47,075,876
13,062 119,403,505
73072 65,822,951
31712 53,4829334
1,491 $ 2705410,847
1,734 301,294,691
15818 399,6515994
2,021 372,109,920
2,257 433,774,860
21854 514,8715537
45662 824,8769069
5,917 9661108,386
4,586 940,373,663
1,673 387,155,954
195
4,723 $ 45,528,699
401 4419999334
4,923 43,8555752
51028 545606,378
4,922 59,451,532
55523 66,3951897
69330 93,249,722
17,471 176,9535400
12,702 109,7211626
7,611 91,772,466
Indian River County, Florida
Operating Indicators by Function/Program
Last Ten Fiscal Years
Function/Program
General Government
Purchasing
Purchase orders issued
Probation
New cases received
Public Safety
Fire rescue
Vehicle rescue response
Fire code inspections
Advanced life support calls
Basic life support calls (transport only)
Sheriff
Arrests
Violent crimes
Non-violent crimes
Total calls for service
Building department
Construction permits issued
Estimated value of construction (millions)
Physical Environment
Solid waste
Waste stream tonnage received
Total recycled material (tons)
Utilities - water & sewer
Number of water customer
Number of wastewater customers
Water ERUs
Wastewater ERUs
Water consumption (Average Daily Demand)
1998 1999 2000 2001
3,277 2,839 23850 2,990
1,296 1,114 932 11097
7,775 8,569 10,897 10,270
1,545 19932 25219 2,431
5,308 5,640 6,400 6,569
3,929 3,745 4,054 33611
4,448 3,369 1,837 39817
318 368 180 301
3,101 3,251 15450 3,482
639111 749471 67,701 N/A
11039 1,236 1,336 1,518
$ 180.3 $ 191.2 $ 248.5 $ 259.7
2199243 2205849 2441419 24500
709238 75,932 104,384 111,075
20,670 22,642 24,058 26,218
141000 147603 159173 169169
33,747 35,418 36,999 39,404
28,406 28,065 28,544 29,644
N/A 5,378,000 55778,000 63528,000
(A) Effective September 18, 2006, fire and advanced life support combined into fire rescue.
ik
W
196 1b
Schedule 20
2002 2003 2004 2005 2006 2007
w
29742 21563 2,800 2,554 23734 2,753
11156 731 N/A N/A N/A N/A
10,671 10,700 113467 10,602 65880 325488 (A)
19886 2,497 2,514 2,215 25420 2,593
61681 69697 7,222 51623 10,728 79537
39788 45090 4,340 406 115105 3,643
21648 41181 45979 5,172 5,211 5,012
305 290 359 300 652 338
25870 2,979 205 33930 3,462 6,192
w 156,179 149,202 1305847 1221893 131,489 1269490
11658 2,084 3,889 45770 39760 1,404
291.5 $ 386.5 $ 642.0 $ 704.0 $ 754.8 $ 280.1
2741604 2775622 349,538 529,238 380,109 313,220
79,362 81,006 721568 1295869 915676 70,292
27,632 27,849 33,793 3407 435477 415101
16,737 17,293 195786 201237 25,943 2406
419242 44,420 461254 539032 545070 615494
30,297 32,432 33,250 38,387 41,351 45,396
6,897,000 725869000 7,6605000 71780,000 8,3705000 8,790,000
p.
Continued
197
Function/Program
Transportation
Public works
Projects under design
Projects awarded for construction
Construction projects completed
County engineer
Roads designed
Miles of roads designed
Traffic engineer
Site plans reviewed
Culture/Recreation
Library
Circulation (County -wide)
Recreation department
Participants in adult programs
Participants in youth programs
Aquatic centers attendance
Shooting range
Safety/Registration cards issued
Golf course
Rounds played
Court Related
Law library
Circulation
Indian River County, Florida
Operating Indicators by Function/Program
Last Ten Fiscal Years
1998 1999 2000 2001
15 11 11 8
8 5 5 5
10 6 6 6
10 9 17 11
6.00 3.00 4.00 4.00
675 608 771 659
846,773 8525511 853,637 8525567
2,350 300 3,500 45000
3,500 4,500 5,000 5,500
N/A N/A N/A 1,500
N/A N/A N/A 2,969
1151531 115,526 116,940 115,927
17,147 16,937 22,071 21,491
.k,
13
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0
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198 .:
2002
2003
8
8
5
2
3
3
it
12
4.00
6.40
916
1,053
8625783
1,0121852
4,300
53000
5,700
6,500
211369
101,182
5,961
41929
110,514
1083684
21,529 21,172
Schedule 20
2004 2005 2006 2007
3 4 5 5
3 0 4 4
5 0 4 4
12 6 11 7
6.50 1.71 6.50 3.50
1,103 1,274 1,135 520
15012,241 15079,206 11140,904 1,188,3 66
51500 5,400 83000 71400
700 700 7,000 6,900
95,711 89,000 104,000 93,767
4,616 3,718 6,036 61784
106,871 97,465 107,048 1071272
25,627 26,481 265255 241759
199
Indian River County, Florida `
Full -Time Equivalent County Government Employees by Function/Program
Last Seven Fiscal Years
2001 2002 2003 2004 2005
General Government
Board of County Commissioners 10 10 10 10 10 „.
County Attorney 6 6 6 6 6
Administration 3 3 3 3 3
Financial/Administrative Service 21.5 22.5 23.5 23.5 23.5
Comprehensive Planning 19 19 19 20 23
Other 50 51 50 46 42
Clerk of Circuit Court 98 99.5 104.5 106 108
Property Appraiser 45 47 47 47 47 �.
Supervisor of Elections 9.5 10 10 11.5 11.5
Tax Collector 35 35 35 40 40
Public Safety
Fire Department 141.5 141.5 142.5 142.5 144.5
Advanced Life Support 75 82 82 82 82
Sheriff - Corrections 121 128 121 128 130
Sheriff - Court Service 26 26.5 37.5 25.5 25.5
Sheriff - Law Enforcement 262 265 261 273 276
Building Department 19 21.5 23 29 45
Other 22 22 22 19.5 17.5
Physical Environment
Solid Waste 51 53 54 54 53
Utilities - water and sewer 115 120 122 125 126
Other 8 8 8 8 11
Transportation
Road and Bridges 98 98 98 99 100
County Engineer 26 27 28 29 33
Traffic Engineer 19 19 20 20 22
Economic Environment 6 6 6 6 6
Human Services 14 14 14 15 15
Culture/Recreation
Libraries 46.5 50.5 51 51 51
Parks 35 35 37 37 39
Recreation Department 27.5 28.5 54 55 56.5
Coastal Engineering 0 0 0 0 3
Shooting Range 6 6 6 6 6,
Golf Course 26.5 26.5 26.5 22.5 22
Court Related
Law Library 1 1 1 1 1„
Total 1,443 11482 1,523 11541 1,579
sk,
Source: Indian River County, Florida Annual Budgets
Method: Using 1.0 for each full-time employee, and 0.50 for each part-time/seasonal employee. Information
(A) The fire department and advanced life support unions were consolidated on September 18, 2006.
200 W
0
2006 2007
10 10
6 7
3 3
24.5 25.5
23 23
50 62
113 118
49 50
11.5 12
40 40
233 232
(A) - (A)
200 197
26 29.5
276 301
49 50
11 12
53 53
131 139
13 14
103 106
39 42
24 26
6 6
17 15
51 52.5
43 42
56 58.5
3 3
6 6
21.5 21.5
1 1
1,693 1,757.5
201
Schedule 21
Indian River County, Florida
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
Functinn/Prapram 1998
General Government
Buildings and grounds
Total square footage maintained
Number of facilities and sites maintained
Vehicles
General government
Vehicles
Planning
Vehicles
Public Safety
Fire department
Vehicles
Fire stations
Advanced life support
Vehicles
Sheriff
Vehicles
Building department
Vehicles
Physical Environment
Solid waste
Vehicles
Utilities - water and sewer
Vehicles
Water treatment plants
Wastewater treatment facilities
Water main - miles
Force main - miles
Transportation
Road and bridges
Miles maintained (paved & unpaved)
Bridges maintained
Vehicles
437,700
32
7
11
1999
452,270
42
7
12
2
2000
468,470
42
10
15
2
2001
468,470
42
11
20
3
20
26
27
28
5
8
8
11
1
8
9
10
197
204
209
212
5
6
7
8
12
14
21
23
14
14
24
39
2
2
2
2
6
6
6
7
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
654
656
656
656
78
78
78
78
28
31
40
44
r9
0
0
W.
202
O
Schedule 22
2002 2003 2004 2005 2006 2007
483,470 493,270 493,270 4935270 7153215 496,270
42 42 43 43 47 44
12 13 17 18 18 17
23 26 34 39 44 46
�. 3 3 3 6 6 7
30 35 41 43 49 54
11 11 11 11 11 11
16 19 21 25 24 21
214 227 241 252 274 276
8 13 16 27 29 22
26 28 32 32 33 34
w 54 62 74 84 90 86
2 2 2 2 2 2
7 7 7 7 7 6
�. N/A N/A N/A N/A 737 769
N/A N/A N/A N/A 188 217
.a.
658 601 609 614 617 614
78 78 78 78 78 78
48 51 59 61 66 68
W.
Continued
203
Function/Program
Transportation - continued:
Council on Aging
Vehicles
Engineering
Vehicles
Traffic engineering
Traffic signals operated
Beacons operated
Vehicles
Traffic operations
Vehicles
Economic Environment
Rental
Vehicles
Human Services
Health department
Vehicles
Housing
Vehicles
Culture/Recreation
Libraries
Locations
Parks
Number of neighborhood parks
Number of County parks
Acreage
Picnic shelters maintained
Boats ramps maintained
Vehicles
Recreation
Vehicles
Shooting range
Vehicles
Rifle range stations
Pistol range stations
Golf Course
Holes maintained
Vehicles
Indian River County, Florida
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
1998
1999
2000
2001
1
2
4
4
4
4
5
5
98
99
101
104
36
35
36
39
3
3
4
5
5
6
6
6
1
1
1
1
8
11
11
13
2
2
2
2
10
10
12
12
24
27
31
31
1,528
15645
2,681
201
48
49
51
51
8
8
8
8
°Y
5
6
11
13
-
-
I
,
N/A
N/A
N/A
N/A
N/A
N/A
N/A
29
N/A
N/A
N/A
35
36
36
36
36
1
1
1
1
jw
W,
0
L3
204
j
Schedule 22 - Continued
2002 2003 2004 2005 2006 2007
7 9 10 20 22 25
6 8 9 9 11 12
110 114 119 122 125 132
36 41 42 37 42 42
5 5 6 6 6 3
9 10 10 10 10 16
1 1 1 1 1 1
13 14 14 17 16 16
1 1 1 2 2 1
2 2 2 2 2 2
12 12 12 12 12 12
35 37 35 47 47 47
3,857 3,869 3,857 3,994 4,004 45014
59 62 59 64 66 69
8 8 8 8 8 8
15 16 20 22 23 25
2 4 4 4 5 5
1 1 1 1 0 1
29 29 29 29 29 29
35 35 35 35 35 35
36 36 36 36 36 36
1 1 2 2 2 2
205
Indian River County, Florida
Department of Utility Services
Historical Rate Structure
Last Ten Fiscal Years
WATER RATES
Billing charges
Base facilities charges (per ERU)
Single-family or commercial
Multi -family or manufactured home
Volume charge -per 1,000 gallons (per ERU)
0-3,000 gallons
3,000-7,000 gallons
7,001 gallons and over
Excess volume surcharge - greater than
13,000 gallons per month (per ERU)
Base facilities charge where capacity is
Reserved but lines are not yet available (per ERU)
Single-family or commercial
Multi -family or manufactured home
SEWER RATES
Billing charges
Base facility charge (per ERU)
Single-family or commercial
Multi -family or manufactured home
Volume charge -per 1,000 gallons
Single-family & manufactured home (1,000-12,000)
Multi -family & commercial (0-13,000)
Multi -family & commercial (>13,000)
Base facility charge where capacity is
Reserved but lines are not yet available (per ERU)
Single-family or commercial
Multi -family or manufactured home
1998 1999 2000 200
$ 2.00 $
2.00
$
1.29
$
1.29
9.20
9.20
4.60
7.76
4.60
7.76
9.20
9.20
3.30
6.60
4.45
6.60
1.75
1.75
4.29
2.20
4.29
2.20
2.15
2.15
2.42
2.42
2.55
2.55
3.85
3.85
2.30 2.30 7.70 7.70
4.60
4.60
13.50
3.88
14.48
3.88
4.60
13.50
4.60
3.30
3.30
12.40
2.00 2.00 1.29 1.29
13.50
3.35
13.50
2.86
14.48
14.58
3.35
13.50
3.35
13.50
12.40
12.40
4.45
3.35
3.35
2.86
2.86
3.35
3.35
2.86
2.86
4.45
4.45
4.29
4.29
6.75
6.75
7.29
7.29
6.75
6.75
6.20
6.20
In addition to the charges shown above, users of the North Beach Water System are subject to a $13 per ERU per month surcharge.
206
LM
f
Schedule 23
2002 2003 2004 2005 2006 2007
$ 1.29 $ 1.29 $ 1.29 $ 1.29 $ 1.29 $ 1.29
7.76 7.76 7.76 7.76 7.76 7.76
6.60 6.60 6.60 6.60 6.60 6.60
2.20 2.20 2.20 2.20 2.20 2.20
2.42 2.42 2.42 2.42 2.42 2.42
3.85 3.85 3.85 3.85 3.85 3.85
7.70 7.70 7.70 7.70 7.70 7.70
3.88 3.88 3.88 3.88 3.88 3.88
3.30 3.30 3.30 3.30 3.30 3.30
1.29 1.29 1.29 1.29 1.29 1.29
14.58 14.58 14.58 14.58 14.58 14.58
12.40 12.40 12.40 12.40 12.40 12.40
2.86 2.86 2.86 2.86 2.86 2.86
2.86 2.86 2.86 2.86 2.86 2.86
4.29 4.29 4.29 4.29 4.29 4.29
7.29 7.29 7.29 7.29 7.29 7.29
6.20 6.20 6.20 6.20 6.20 6.20
207
Indian River County, Florida
Water and Wastewater Customers
Last Ten Fiscal Years
Schedule 24
The number of County water and wastewater customers, expressed as the number of equivalent residential
units ("ERUs"), for the years 1998 through 2007 as set forth below:
Fiscal Year
Water ERUs
Wastewater ERUs
1998 335747 281406
1999 35,418 28,065
2000 365999 28,544
2001 39,404 29,644
2002 41,242 305297
2003 449420 32,432
2004 465254 33,250
2005 53,032 38,387
2006 54,070 411351
2007 61,494 45,396
Source: Indian River County Utilities Department
M
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0
0
208
�o
Indian River County, Florida
Top 10 High Volume Customers of Utility Service
Fiscal Year 2007 Schedule 25
Below is a table depicting the ten highest volume customers of the utility system for the fiscal year end
September 30, 2007:
Annual Water Annual Wastewater
Volume Volume
Customer (x 1,000 gals.) (x 1,000 gals.)
1. Village Green Manufactured Housing Park 29,378 29,378
2. ACTS Inc 29,216 29,216
3. Vista Royale 26,257 26,257
4. Florida Department of Corrections 19,905 19,905
5. City of Fellsmere (Wastewater Only) - 19,397
6. Disney's Vero Beach Resort 18,363 18,363
7. Vista Plantation 13,165 13,165
8. Vista Gardens 12,611 12,611
9. Vero Beach Resort 10,365 10,365
10. Palms of Vero Beach 10,171 10,171
Source: Indian River County Utilities Department
209
Indian River County, Florida
Capacity Charges - Utilities Department
Last Nine Fiscal Years
Schedule 26
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 nine fiscal years ended September 30 are as follows:
Wastewater
Water Capacity Capacity Total
Fiscal Year Charges Charges Charges
1999 $ 2,3085711 $ 1,5475731 $ 3,8565442
2000 21668,482 259165529 5,585,011
2001 25780,120 25392,169 5,172,289
2002 256879997 2,423,583 5,111,580
2003 4,182,272 5,448,827 9,631,099
2004 55464,809 7,559,916 133024,725
2005 111036,369 199109,246 30,145,615 (A)
2006 4,758,320 85287,244 13,0455564
2007 15159,803 741,143 1,900,946
(A) Large increase in capacity charges due to construction boom.
210
L3
.,
sk.
4
0
Indian River County, Florida
Pledged Revenues for Recreational Revenue Refunding Bonds, Series 2003
Last Ten Fiscal Years
Racetrack 7% of
Fiscal and Jai Alai Half -Cent
Year Fronton Funds Sales Tax
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
L
446,500
446,500
446,500
446,500
446,500
446,500
446,500
446,500
446,500
446,500
379,806
411,014
434,410
456,472
483,509
490,138
529,488
612,279
614,368
568,608
Schedule 27
Racetrack and Jai Alai fronton funds and 7% of the Half -Cent Sales Tax are pledged as security for
payment on these bonds. This is in addition to the net revenues of the golf course. Refer to pledged
revenue coverage ratio on Schedule 15.
211
Indian River County, Florida
Pledged Revenues for Spring Training Facility Revenue Bonds, Series 2001
Last Ten Fiscal Years
Year Professional
Ended Sports State
September 30 Subsidy
1998 $ - $
1999
2000
2001
2002
2003
291,649
500,004
500,004
Total
Tourist
Tax Collected
1,000,084
1,058,842
1,114,916
1,408,046
1,410,409
1,286,885
Schedule 28
One Cent Half Cent
Tourist Tax (A) Sales Tax (B)
$ - $ 5,425,803
5,871,632
6,205,862
(A) 244,623 6,521,024
3475710 65917,278
321,721 7,001,976
2004 50004 1,443,272 360,818 71564,109
2005 50004 15675,781 4183945 8,746,849
2006 50004 1,517,360 379,340 817765684
2007 50004 154495083 362,271 85122,976
(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.
212
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Harris, Cotherman,
Jones, Price & Associates
Ccrtifiai Puhlic Accmintants - Chartered
5070 North Highway AIA, Suite 250
Vero Beach, FL 32963
Tel 772-234-8484
Fax 772-234-8488
Management Comments
The Honorable Board of County Commissioners
Indian River County, Florida
We have audited the basic financial statements of Indian River County, Florida as of and for the year
ended September 30, 2007, and have issued our report thereon dated March 5, 2008. We conducted our
audit in accordance with United States generally accepted auditing standards; the standards applicable to
financial audits contained in Government Auditing Standards issued by the Comptroller General of the
United States; and OMB Circular A-133, Audits of States, Local Governments, and Non -Profit
Organizations. We have issued our Independent Auditors' Report on Compliance and Internal Control
over Financial Reporting, Independent Auditors' Report on Compliance and Internal Control over
Compliance Applicable to each Major Federal Program and State Project, and Schedule of Findings and
Questioned Costs. Disclosures in those reports and schedule, which are dated March 5, 2008, should be
considered in conjunction with this management letter.
We have also issued separate management letters dated March 5, 2008 for each county agency not
included in this letter, which should also be considered in conjunction with this management letter.
Additionally, our audit was conducted in accordance with Chapter 10.550, Rules of the Auditor General,
which govern the conduct of local government entity audits performed in the State of Florida and require
that certain items be addressed in this letter.
In accordance with the Rules of the Auditor General (Section 10.554(1)(1)1.), it is noted that there were no
recommendations made in the preceding audit report.
As required by the Rules of the Auditor General (Section 10.554(1)(1)2.), the scope of our audit included a
review of the provisions of Section 218.415, Florida Statutes, regarding the investment of public funds.
In connection with our audit, we determined that the Board of County Commissioners complied with
Section 218.415, Florida Statutes.
�. The Rules of the Auditor General (Section 10.554(1)(1)3.) require that we address in the management
letter any findings and recommendations to improve financial management, accounting procedures, and
internal control. In connection with our audit, we did not have any such findings.
The Rules of the Auditor General (Section 10.554(1)(1)4.) require that we address violations of provisions
of contracts and grant agreements or abuse that have an effect on the financial statements that is less than
material but more than inconsequential. In connection with our audit, we did not have any such findings.
"Providing Vision and Direction to our Clients"
Member AICPA Member AICPA Division For CPA Firms Member FICPA
Private Companies Practice Section
213
ii
Harris, Cotherman,
Jones, Price & Associates
Certified Public Accountants - Chartered
The Honorable Board of County Commissioners
Indian River County, Florida
Page two
The Rules of the Auditor General (Section 10.554(1)(i)5.) require disclosure in the management letter of
the following matters if not already addressed in the auditor's reports on compliance and internal controls
or schedule of findings and questioned costs: (1) violations of laws, rules, regulations, and contractual
provisions that have occurred, or are likely to have occurred; (2) improper or illegal expenditures; (3)
control deficiencies that were not significant deficiencies including but not limited to a) improper or
inadequate accounting procedures; b) failures to properly record financial transactions; and c) other
inaccuracies, shortages, defalcations, and instances of fraud discovered by, or that come to the attention
of, the auditor. There were no such matters noted during the current year.
The Rules of the Auditor General (Section 10.554(1)(1)6.) require 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 disclosure has been
included in the notes to the financial statements.
As required by the Rules of the Auditor General (Section 10.554(1)(07.a), none of the conditions
described in Section 218.503(1), Florida Statutes, were met during the fiscal year ended September 30,
2007.
As required by the Rules of the Auditor General (Section 10.554(1)(i)7.b.), the annual financial report
required to be filed with the Florida Department of Financial Services pursuant to Section 218.32(1)(a) of
the Florida Statutes has been completed. We agreed this report with the annual financial audit report and
noted no exceptions for the fiscal year ended September 30, 2007.
As required by the Rules of the Auditor General (Sections 10.554(1)(1)7.c. and 10.556(7)), we applied
financial condition assessment procedures relating to Indian River County. It is management's
responsibility to monitor the entity's financial condition, and our financial condition assessment was done
as of the fiscal year end and was based in part on representations made by management and the review of
financial information provided by same.
This report is intended for the information of management, the Board of County Commissioners, and the
Auditor General of the State of Florida, and is not intended to be and should not be used by anyone other
than these specified parties.
41Vero Be h, Florida
March 5, 2008
214
i,.
ii
Harris, Cotherman,
Jones, Price & Associates
Certified Public Accountants • Chartered
5070 North Highway AIA, Suite 250
Vero Beach, FL 32963
Tel 772.234-8484
Fax 772.234-8488
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
The Honorable Board of County Commissioners
Indian River County, Florida
We have audited the financial statements of governmental activities, the business -type activities, the aggregate
discretely presented component unit, 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, 2007, which collectively comprise the
County's basic financial statements and have issued our report thereon dated March 5, 2008. 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.
Internal Control over Financial Reporting
In planning and performing our audit, we considered the County's internal control over financial reporting as a basis
for designing our auditing procedures 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 over financial
reporting. Accordingly, we do not express an opinion on the effectiveness of the County's internal control over
financial reporting.
A control deficiency 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 misstatements on a timely basis. A
significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the
County's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally
accepted accounting principles such that there is more than a remote likelihood that a misstatement of the County's
financial statements that is more than inconsequential will not be prevented or detected by the County's internal
control.
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than
a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the
County's internal control.
Our consideration of the internal control over financial reporting was for the limited purpose described in the first
paragraph of this section and would not necessarily identify all deficiencies in internal control that might be
significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over
financial reporting that we consider to be material weaknesses, as defined above.
"Providing Vision and Direction to our Clients"
Member AICPA Member AICPA Division For CPA Firms Member FICPA
Private Companies Practice Section
215
Harris, Cotherman,
Jones, Price & Associates
Certified Public Accountants -Chattered
The Honorable Board of County Commissioners
Indian River County, Florida
Page two
0
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, grant agreements
and contracts, noncompliance with which could have a direct and material effect on the determination of financial
statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our
audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of
noncompliance or other matters that are required to be reported under Government Auditing Standards.
This report is intended solely for the information of the Board of County Commissioners, management, the Auditor
General of the State of Florida, and federal and state awarding agencies and is not intended to be and should not be
used by anyone othhe%r, than these specified parties.
Vero, Florida
March 5, 2008
F
ry
Harris, Cotherman,
Jones, Price & Associates
Certified Public Accountants - Chartered
5070 North Highway AIA, Suite 250
Vero Beach, FL 32963
Tel 772-234-8484
Fax 772-234-8488
Independent Auditors' Report on Compliance with Requirements
Applicable to Each Major Federal Program and Major State Project and on
Internal Control over Compliance in Accordance with OMB Circular A-133 and the
Department of Financial Services' State Projects Compliance Supplement
The Honorable Board of County Commissioners
Indian River County, Florida
Compliance
,. We have audited the compliance of Indian River County, Florida (the "County") with the types of compliance
requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance
Supplement and the requirements described in the Department of Financial Services' State Projects Compliance
Supplement that are applicable to each of its major federal programs and major state projects for the year ended
September 30, 2007. Indian River County, Florida's major federal programs and major state projects are identified
in the summary of auditors' results section of the accompanying Schedule of Findings and Questioned Costs,
Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major federal
programs and major state projects is the responsibility of the County's management. Our responsibility is to express
an opinion on Indian River County, Florida's compliance based on our audit.
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; OMB Circular A-133, Audits of States, Local Governments, and Non -
Profit Organizations; Chapter 691-5, Rules of the Department of Financial Services, and Chapter 10.550, Rules of
the Auditor General. Those standards, OMB Circular A-133, Chapter 691-5 and Chapter 10.550, Rules of the
Auditor General, require that we plan and perform the audit to obtain reasonable assurance about whether
noncompliance with the types of compliance requirements referred to above that could have a direct and material
effect on a major federal program or major state project occurred. An audit includes examining, on a test basis,
evidence about the County's compliance with those requirements and performing such other procedures as we
considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
Our audit does not provide a legal determination on the County's compliance with those requirements.
In our opinion, Indian River County, Florida complied, in all material respects, with the requirements referred to
above that are applicable to each of its major federal programs and major state projects for the year ended September
30, 2007.
Internal Control over Compliance
The management of Indian River County, Florida is responsible for establishing and maintaining effective internal
control over compliance with requirements of laws, regulations, contracts and grants applicable to federal programs
and state projects. In planning and performing our audit, we considered the County's internal control over
compliance with requirements that could have a direct and material effect on a major federal program or state
project in order to determine our auditing procedures for the purpose of expressing our opinion on compliance but
not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly,
we do not express an opinion on the effectiveness of the County's internal control over compliance.
`Providing Vision and Direction to our Clients"
Member AICPA Member AICPA Division For CPA Firms Member FICPA
Private Companies Practice Section
217
Harris, Cotherman,
Jones, Price & Associates
Certified Public Accountants • Chartered
The Honorable Board of County Commissioners
Indian River County, Florida
Page two
A control deficiency in an entity's internal control over compliance 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 noncompliance with a type of compliance requirement of a federal program on a timely basis. A significant
deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity's ability to
administer a federal program such that there is more than a remote likelihood that noncompliance with a type of
compliance requirement of a federal program that is more than inconsequential will not be prevented or detected by
the entity's internal control.
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than
a remote likelihood that material noncompliance with a type of compliance requirement of a federal program will
not be prevented or detected by the entity's internal control.
Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of
this section and would not necessarily identify all deficiencies in internal control that might be significant
deficiencies or material weaknesses. We did not identify any deficiencies in internal control over compliance that
we consider to be material weaknesses, as defined above.
This report is intended solely for the information and use of the Board of County Commissioners, management, the
Auditor General of the State of Florida, and specific legislative or regulatory bodies and is not intended to be and
should
not be used by anyone other than these specified parties.
���,cclJ�f.�;c�,c� 7LUY� ' �' at7�rtec�i
Vero Be h, Florida
March 5, 2008
218
L3
4r
;tXTr n
219
Indian River County, Florida
Schedule of Expenditures of Federal Awards and State Projects
For the Fiscal Year Ended September 30, 2007
Federal/State Agency
Pass-through Entity
Federal Program/State Project
Department of Housing and Urban Development:
Direct Programs:
Section 8 Housing Choice Vouchers
Shelter Plus Care
Shelter Plus Care
Shelter Plus Care
Shelter Plus Care
Shelter Plus Care
Supportive Housing Program -
Homeless Management Information Systems
Homeless Management Information Systems
Homeless Management Information Systems
Indirect Programs:
Passed through Florida Dept. of Community Affairs:
Community Dev. Block Grant/State's Program
Disaster Recovery Initiative Grant
Passed through Florida Housing Finance Corp.:
Tenant Based Rental Assistance
Total Department of Housing and Urban Development:
Federal Transit Administration:
Direct Programs:
Federal Transit Formula Section 5307 Grant
Federal Transit Formula Section 5307 Grant
Federal Transit Formula Section 5307 Grant
Total Federal Transit Administration:
Federal Highway Administration:
Indirect Programs:
Passed through Florida Department of Transportation:
Joint Participation Agreement with FDOT-
Hurricane Jeanne
Hurricane Frances
Indian River Drive Bikepath
Fellsmere Bikepath, Phase II
Metropolitan Planning Organization
Metropolitan Planning Organization
Total Federal Highway Administration:
CFDA Contract/
CSFA Grant
No. No.
Transfers to
Expenditures Subrecipients
14.871
285404
FL -132 -VO -014 to 017 $
1,659,498
14.238
2065500
FL29CIO9001
116,798
14.238
06DB-3C-10-40-01-W-14
FL29C209002
44,560
14.238
235795248
FL29009002
83,724
14.238
FL29C509001
801197
14.238
FL29C609005
23,982
14.235 F1,2913509002 615765
14.235 F1,2913309003 42,077
14.235 FL2913509003 35,935
14.228
285404
03DB-1A-10-40-01-H-12
709,795
20.205
2065500
226,711
14.228
20.205
06DB-3C-10-40-01-W-14
20.205
46,021
235795248
14.239 2005-102TBRA 206,420
5,160,915
20.507
20.507
20.507
20.205
285404
20.205
709,795
20.205
2065500
20.205
2481114
20.205
4035271
20.205
46,021
Environmental Protection Agency:
Indirect Programs:
Passed through Florida Department of Environmental Protection:
Nonpoint Source Implementation Grants -
East Gifford Stormwater 66.460
Total Environmental Protection Agency:
220
FL -90-X611
FL -90-X500
FL -90-X472
ANX78
285404
ANX75
709,795
AN844
2065500
AOD 11
2481114
AA080
4035271
ANR93
46,021
1,642,105
WM836 1,300
1,300
$ 654,972
11,259
209,101
875,332
E3
F^
m
Federal/State Agency
Pass-through Entity
Federal Program/State Project
Department of Justice:
Direct Programs:
State Criminal Alien Assistance Program
Indian River County, Florida
Schedule of Expenditures of Federal Awards and State Projects
For the Fiscal Year Ended September 30, 2007
CFDA
CSFA
No.
16.606
Contract/
Grant
N o.
Transfers to
Expenditures Subrecipients
106,354
Indirect Programs:
Passed through Florida Department of Law Enforcement:
Bryne Formula Grant Program
Multi -Agency Drug Enforcement Unit 16.579 2007-JAGC-INRI-2-P3-077 49,371
Substance Abuse Advisory Council 16.579 2007-JAGC-INRI-I-P3-078 81161
Drug Testing I 16.579 2007-JAGC-INRI-3-P3-076 24,084
Passed through Office of the Attorney General:
Crime Victim Assistance Program 16.575 V6107 33,282
Total Department of Justice: 221,252
Fish and Wildlife Service:
Indirect Programs:
Passed through Florida Fish and Wildlife
Conservation Commission:
Artificial Reef Construction Grant 15.605 FWC-06111 40,000
Fish and Wildlife Service: 4000
Forest Service, Dept of Agriculture:
Indirect Programs:
Passed through Florida Dept of Agriculture
and Consumer Services:
Wabasso Causeway Tree Replacement 10.664 010339 28,256
Forest Service, Dept of Agriculture: 28,256
W
Institute of Museum and Library Services:
Indirect Programs:
Passed through Florida Dept of State
Division of Library and Information Systems:
Literacy/ Computer Literacy Lab Program 45.310 06-1,STA-E-03 57,152
Institute of Museum and Library Services: 57,152
Office of Child Support Enforcement:
Indirect Programs:
Passed through Florida Department of Revenue:
Child Support Enforcement -Title IV D-
" Sheriff Service of Notices 93.563 00331 21660
Child Support Enforcement -Title IV D -
Sheriff Service of Notices 93.563 CC331 446,254
Total Office of Child Support Enforcement: 448,914
Federal Emergency Management Agency:
Indirect Programs:
Passed through Florida Dept. of Community Affairs:
Disaster Relief Funding -Hurricane Frances 97.036 05 -PA -G%-10-41-01-800 3,535,657
Disaster Relief Funding -Hurricane Jeanne 97.036 05 -PA -E=-10-41-01-864 238,091
Emergency Management Performance Grant 97.042 06-136-04-10-40-01-031 33,735
Wind Retrofit Station No. 11 97.039 07HM-04a-10-04-01-003 5,389
Emergency Mgmt. Homeland Security 97.067 06FS-3W-10-40-01 24,500
Total Federal Emergency Management Agency: 3,837,372
TOTAL EXPENDITURES OF FEDERAL AWARDS:
Continued
221
$ 11,437,266 $ 875,332
Indian River County, Florida
Schedule of Expenditures of Federal Awards and State Projects
For the Fiscal Year Ended September 30, 2007
Federal/State Agency
Pass-through Entity
Federal Program/State Project
STATE OF FLORIDA
Department of Community Affairs:
Direct Projects:
Hazardous Materials Emergency Planning
Emergency Operations Center Grant
Emergency Management Programs- Emergency
Management Base Grant
Indirect Projects:
Passed through Florida Communities Trust:
Florida Forever Act -
Orca Diamond Tract
Total Department of Community Affairs:
Florida Housing Finance Agency:
Direct Project:
Local Hurricane Housing Recovery Plan
State Housing Initiatives Partnership
Total Florida Housing Finance Agency:
Department of Environmental Protection:
Direct Projects:
Beach Restoration Emergency Response
Wabasso Beach Monitoring
Gifford Park, Project # 0624
Oslo Boat Ramp, Project # 0381
Total Department of Environmental Protection:
Department of State:
Division of Library Services:
Direct Project:
State Aid to Libraries
Total Department of State:
Department of Transportation:
Direct Projects:
Access Improvements to Aviation Boulevard
Oslo Road Phase I Roadway Widening (TRIP)
Roseland Road Resurfacing
Transportation Disadvantaged Planning Grant
Transportation Disadvantaged Planning Grant
Public Transit Block Grant
County Incentive - CR 512 Widening
Transit Corridor Grant
Downtown Vero & Gifford Transit Centers
FDOT Intermodal Grant (Cty Adm Bldg)
Total Department of Transportation:
CFDA
CSFA
No,
52.023
52.037
52.008
52.002
52.902
52.901
37.065
37.065
37.017
37.017
45.030
4=1EI
55.026
211,049
55.009
25048,498
55.002
797,753
55.002
7,634
55.010
5,328
55.008
268,904
55.013
1,794,858
55.014
150,975
55.014
176,851
Contract/
Grant
No,
07 -CP -11-10-40-01-026 S
06CP-4Z-10-40-01
07 -BG -04-10-40-01-234
222
06-037-FF6
Transfers to
Expenditures Subrecipients
2,990
2,178,033
102,387
1,419,475
3,702,885
N/A 5,700,842
N/A 1,202,063
6,902,905
H5IR1 6,0021624
071R1 242,421
F7167 102,122
F7064 3,230
6,350,397
07 -ST -24 178,370
178,370
ANP77
211,049
A0055
25048,498
AOC44
797,753
AOH07
7,634
AOR83
5,328
ANT 19
268,904
AL879
1,794,858
AN 83
150,975
AM917
176,851
A0418
107,250
5,569,100
M
M
W,
W
Indian River County, Florida
Schedule of Expenditures of Federal Awards and State Projects
For the Fiscal Year Ended September 30, 2007
Federal/State Agency CFDA Contract/
Pass-through Entity CSFA Grant
Federal Program/State Project No. No. Expenditures
STATE OF FLORIDA - Continued
Department of Agriculture and Consumer Services:
�. Direct Project:
Citrus BMP - Water Quality Cost Share 42.017 012089 4,288
Citrus BMP - Water Quality Cost Share 42.017 0105027 661006
Total Department of Agriculture and Consumer Services: 701294
Department of Health:
Direct Project:
County Awards Grant -Emergency Medical Svc 64.005 C6031 51,859
Total Department of Health and Rehabilitative Services: 51,859
Florida Department of Law Enforcement:
Direct Project:
Operation Wabasso Lock Down 71.005 N/A 91,776
Total Department of Health and Rehabilitative Services: 91,776
Department of Revenue:
Direct Project:
Facilities for Retained Spring Training Franchise-
�. Dodgertown 73.016 N/A 500,004
Total Department of Revenue: 500,004
TOTAL EXPENDITURES OF STATE FINANCIAL ASSISTANCE:
United States Department of Agriculture:
FHA Acquisition and Construction Revenue Bonds
Victory Park Phase I 10.405
Victory Park Phase lI 10.405
Orangewood Park Apartments 10.405
,. TOTAL BONDS PAYABLE (FEDERALLY GUARANTEED):
n
h
Transfers to
Subrecipients
$ 231417,590 $ -
09-031-59600674-01-5 $ 808,000
09-031-59600674-01-5 871,000
09-031-59600674-01-2 151113400
223
$ 2,790,400
Indian River County, Florida
Notes to Schedule of Expenditures of Federal Awards
and State Projects
For the Fiscal Year Ended September 30, 2007
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES lit
The accounting policies and presentation of the Single Audit Report of Indian River County, Florida,
(the "County") have been designed to conform to generally accepted accounting principles as applicable
to governmental units, including the reporting and compliance requirements of the Audits of States, Local
Governments, and Non -Profit Organizations and Office of Management and Budget Circular A-133.
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 Compli-
ance 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 modified accrual basis of accounting is followed in the Schedule of Expenditures of Federal Awards and
State Projects. Under the modified accrual basis, revenues are recognized when they become 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 County considers rev-
enues to be available if they are collected within 45 days after the end of the current fiscal period. Expendi-
tures generally are recorded when a liability is incurred, as under accrual accounting.
Actual disaster relief expenditures exceed the amount allowed by the Federal Emergency Management
Agency for many projects. Future Schedules of Expenditures of Federal Awards and State Projects may be
adjusted to reflect additional expenditures from current and prior fiscal years.
224
0
66.
In
0
Indian River County, Florida
Schedule of Findings and Questioned Costs - Federal Awards and State Projects
Year Ended September 30, 2007
Section I — Summary of Auditors' Results
Financial Statements
Type of auditor's report issued Unqualified
Internal control over financial reporting:
Material weakness(es) identified? Yes X No
Reportable condition(s) identified not
considered to be material weaknesses? Yes X None reported
Noncompliance material to financial statements
noted? Yes X No
Federal Awards and State Projects
Internal control over major programs:
Material weakness(es) identified? Yes X No
Reportable condition(s) identified not
considered to be material weaknesses? Yes X None reported
Type of auditor's report issued on compliance for
major federal programs and state projects Unqualified
Any audit findings disclosed that are required to
be reported in regards to the major federal
programs or state projects? Yes X No
Identification of major programs:
CFDANumber
14.871
16.606
` 97.036
10.405
Name of Federal Program or Cluster
HUD Section 8 Rental Assistance
DOJ State Criminal Alien Assistance Program
FEMA Disaster Relief Funding
FHA Acquisition & Construction Revenue Bonds:
Victory Park Phase I
Victory Park Phase II
Orangewood Park Apartments
CSFA Number Name of State Project
37.065 FDEP Beach Restoration Emergency Response
55.008 FDOT — County Incentive — CR512
55.009 FDOT — Roseland Road Resurfacing
55.010 FDOT — Florida Public Transit Block Grant
52.902 FHFA Hurricane Housing Recovery
55.026 FDOT — Oslo Road Phase I
Dollar threshold used to distinguish between
Type A and Type B programs
Auditee qualified as low-risk auditee?
$365,556
$702,528
Yes
(Federal)
(State)
No
Section II — Financial Statement Findings
There were no reportable conditions, material weaknesses, or instances of noncompliance related to the financial statements.
Section III — Federal Award Findings and Questioned Costs
There were no audit findings related to federal awards required to be reported by Circular A-133, Section 510(A).
Section IV — Prior Year Findings and Questioned Costs
No matters were reported.
225
t�TFb
M9
226
BOARD OF COUNTY COMMISSIONERS
POW
1�
;t�Tfi D
228
m
a,
i
Harris, Cotherman,
Jones, Price & Associates
Certified Public Accewntants- Chartered
5070 North Highway AIA, Suite 250
Vero Bcach, FL 32963
Tel 772.234-8484
Fax 772.234-8488
Report on Special Purpose Financial Statements Prepared in Compliance with a
Regulatory Provision That Results in an Incomplete Presentation But One That is
Otherwise in Conformity with Generally Accepted Accounting Principles
' The Honorable Board of County Commissioners
Indian River County, Florida
We have audited the accompanying fund financial statements of Indian River County, Florida Board of
County Commissioners as of and for the fiscal year ended September 30, 2007, as listed in the table of
contents. These financial statements are the responsibility of the Board of County Commissioners'
management. Our responsibility is to express an opinion on the financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards 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 fund financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the fund
financial statements. An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial statement presentation. We
believe that our audit provides a reasonable basis for our opinion.
As described in Note 1, the accompanying fund financial statements referred to above present fairly only
the financial position of the Board of County Commissioners at September 30, 2007, and the results of
operations for the year then ended in conformity with generally accepted accounting principles.
In our opinion, the fund financial statements referred to above present fairly, in all material respects, the
financial position of the Board of County Commissioners as of September 30, 2007, and the results of
operations for the year then ended in conformity with generally accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued a report dated March 5, 2008 on
our consideration of the Board of County Commissioners' internal control over financial reporting and on
our tests of compliance with certain provisions of laws, regulations, contracts, and grants.
This report is intended solely for the information and use of management, the Board of County
Commissioners, the Auditor General of the State of Florida, and applicable federal and state agencies, and
is not intended to be and should not be used by anyone other than these specified parties.
Vero B ach, Florida
March 5, 2008
`Providing Vision and Direction to our Clients"
Member AICPA Member A1CPA Division For CPA Firms Member FICPA
Private Companies Practice Section
229
ASSETS
Cash and cash equivalents
Accounts receivable
Special assessments receivable
Due from other funds
Due from other governments
Interest receivable
Inventories
Prepaid expenses
Advances to other funds
Notes receivable
Total assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Retainage payable
Due to other funds
Due to other governments
Deferred revenues
Other deposits
Advances from other funds
Total liabilities
Fund balances:
Reserved for:
Debt service
Capital projects
Advances to other funds
Unreserved, reported in:
General fund
Special revenue funds
Total fund balances
Total liabilities and fund balances
Indian River County, Florida
Board of County Commissioners
Balance Sheet
Governmental Funds
September 30, 2007
666,667 -
- - 712,000 -
507321,956 - - -
73,119,115 201954,684 75407,227
505321,956 739119,115 221333,351 7,407,227
$ 52,933,932 $ 78,082,639 $ 23,451,274 $ 8,020,400
The accompanying notes are an integral part of the financial statements.
230
M
0
M
Secondary
Impact
Roads
General
Fees
Construction
Transportation
$ 469645,235 $
77,894,926
$ 21,751,409
$ 7,6773797
516,186
-
3,525
874
-
-
-
1065430
7231000
-
-
-
5,0311602
187,713
317,673
2345459
12,355
-
-
5,554
-
-
840
-
-
7125000
-
-
-
666,667
-
$ 5279331932 $
7850825639
$ 237451,274
$ 8,0205400
$ 1,6575902 $
354243081
$ 5263069
$ 490,244
-
195393443
5915854
11240
13,789
-
-
-
69,871
-
-
1215689
126,189
-
-
-
7441225
-
-
-
256115976
4,963,524
131175923
613,173
666,667 -
- - 712,000 -
507321,956 - - -
73,119,115 201954,684 75407,227
505321,956 739119,115 221333,351 7,407,227
$ 52,933,932 $ 78,082,639 $ 23,451,274 $ 8,020,400
The accompanying notes are an integral part of the financial statements.
230
M
0
M
Emergency SHIP Hurricane Optional Other Total
Services Land Housing Sales Governmental Governmental
District Acquisition Recovery Grant Tax Funds Funds
$ 1277885382 $ 183159,841 $ 6,711,293 $ 19,751,178 $ 18,251,605 $ 2295631,666
S7 _ - 27,009 11656 549,337
106,430
7233000
470,558 - - 2,701,190 2,276,219 11,219,414
7,781 7,781
12,355
351 - - - 214 6,959
744,225 - 1,456,225
66607
$ 13,2595378 $ 1811595841 $ 6,711,293 $ 23,223,602 $ 20,537,475 $ 2449379,834
$ 1,2655425 $ 653192 $ 5535906 $ 4,0665103 $ 1,859,266 $ 131908,188
118,004 213949669 643,412 5,288,622
7235000 7235000
13,789
126,589 - 5,3081783 31,666 294,189 5,952,787
630 - - 1269819
744,225
153925014 65,192 5,981,323 6,492,438 3,519,867 261757,430
2,916,846 25916,846
15,986,939 2,0215031 18,674,637
744,225 - 1,456,225
50,321,956
11,867,364 18,094,649 729,970 - 125079,731 1441252,740
11,867,364 18,09049 7295970 16,7315164 17,017,608 2171622,404
$ 13,259,378 $ 181159,841 $ 6,711,293 $ 23,2233602 $ 20,5371475 $ 2441379,834
231
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, 2007
REVENUES
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Special assessments
Interest
Miscellaneous
Total revenues
EXPENDITURES
Current:
General government
Public safety
Physical environment
Transportation
Economic environment
Human services
Culture/recreation
Court related
Debt service:
Principal
Interest and other fiscal charges
Capital projects
Total expenditures
Excess of revenues over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
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
General
$ 7704,626 $
745,754
13,095,989
6,167,900
379,492
3,566,048
767,658
10157275467
11,530,336
2,857,950
509,780
2,355,845
660,568
4,598,075
10,552,292
289,956
Secondary
Impact Roads
Fees Construction
165,564
7,007,204
4,220,948
1,416,135
12,809,851
226,834
22, 061,100
1,426,341
3,482,514
2,524,623
1,182,713
159,683
1,120,403
683,294
9,153,230
10,927,104
Transportation
150,858
3,973,531
149,446
64,608
387,471
454,634
5,180,548
1,000,575
288,088
13,894,549
33,354,802 235714,275 10,927,104 159183,212
68,372,665
44,484
(16,2781303)
(47, 1 17,772)
(63,351,591)
5,021,074
(103904,424)
(I ,066, 532)
(368,346)
(1,434,878)
(12,339,302)
(1,773,874)
(1,773,874)
(10,0025664)
11,943,548
11,943,548
1,940,884
45,3005882 853458,417 24,107,225 5,466,343
$ 50,321,956 $ 7351193115 $ 221333,351 $ 75407,227
The accompanying notes are an integral part of the financial statements.
232
W,
a,
Emergency SHIP Hurricane Optional Other Total
Services Land Housing Sales Governmental Governmental
District Acquisition Recovery Grant Tax Funds Funds
$ 26,099,696 $ - $ - $ 14,549,834 $ 9,021,399 $ 130,158,069
896,612
86,900 3,613,024 55700,843 406,349 2051555409 54,1225232
3,684,841 - - 1,302,347 125487,247
10,121 - - - 109,898 499,511
_ - 269,330 7,500,825
9353083 208,873 405,712 1,041,535 1,007,102 14,773,175
2 728 - 30483 955039 3,4495971
30,819,369 537015897 6,106,555 20,428,201 31,960,524 223,887,642
6225180 13,379,925
27,8141374 1,971,194 32,643,518
- 31,129,189 - - 2,397,274 34,3243331
265,082 49,503,680
3073659 968,227
5,700,843 - 3,563,545 13,862,463
1137725540 23,7517173
_ - 813,042 11102,998
4,615,000 4,615,000
535 _ 3,2435658 3,244,193
39,450,871 3,0395126 42,489,997
27,814,374 31,1295724 5,7003843 39,450,871 32,6103300 2191885,505
3,004,995 (25,427,827) 405,712 (19,022,670) (6493776) 4,002,137
6,156,096 212,836 1833565964
(1,073,940) - - - (44,484) (18,463,259)
�. (5737223) - - - (327,628) (48,386,969)
(15647,163) - - 63156,096 (159,276) (48,493,264)
_ 11357,832 (25,427,827) 405,712 (12,8667574) (809,052) (44,491,127)
10,509,532 43,522,476 324,258 29,597,738 17,8261660 2621113,531
$ 11,867,364 $ 18,094,649 $ 7295970 $ 16,731,164 $ 17,017,608 $ 217,622,404
0
233
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, 2007
REVENUES
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Interest
Miscellaneous
Total revenues
EXPENDITURES
Current:
General government
Public safety
Physical environment
Transportation
Economic environment
Human services
Culture/recreation
Court related
Total expenditures
Excess of revenues over 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
$ 73,982,675
831,250
12,134,414
5,665,466
196,887
1,002,250
154,474
93,967,416
12,370,559
2,883,087
492,443
988,410
462,415
4,883,709
10,841,334
529,732
33,451,689
60,515,727
44,484
(155724,323)
(481361,905)
(64,041,744)
(35526,017)
3,526,017
$ 73,9825675
831,250
14,047,091
5,672,192
196,887
1,059,250
1,855,901
97,645,246
13,761,158
3,070,078
635,105
2,733,747
693,854
4,809,021
11,671,592
519,145
37.893.700
59,751,546
44,484
(17,267,140)
(49,013,986)
(66,236,642)
(6,4855096)
6,485,096
Actual
Amounts
$ 77,004,626 $
745,754
13,095,989
6,167,900
379,492
3,566,048
767,658
101,727,467
11,530,336
2,857,950
509,780
2,355,845
660,568
4,598,075
10,552,292
289,956
33,354,802
68,372,665
44,484
(16,278,303)
(479117,772)
(639351,591)
Variance with
Final Budget
Positive
(Negative)
3,021,951
(85,496)
(951,102)
495,708
182,605
2,506,798
(110885243)
4,082,221
2,230,822
212,128
125,325
377,902
33,286
210,946
1,119,300
229,189
4,538,898
8,621,119
988,837
1,896,214
2,885,051
55021,074 $ 11,506,170
45,300,882
$ 50,3219956
The accompanying notes are an integral part of the financial statements.
234
W
f
a,
ii
in
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, 2007
REVENUES
Intergovernmental
Special assessments
Interest
Miscellaneous
Total revenues
EXPENDITURES
Current:
General government
Public safety
Transportation
Culture/recreation
Total expenditures
Excess of revenues over (under) expenditures
OTHER FINANCING USES
Transfers out
Transfers to constitutional officers
Total other financing uses
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Budgeted Amounts
Original Final
19,740,713
950,000
20,690,713
519,798
718,591
56,808,105
1,485,000
59,531,494
(38,840,781)
(35732,863)
(3,732,863)
(421573,644)
302,250
19,740,713
950,000
148,167
21,141,130
519,798
61,748,149
2,711,605
64,979,552
(43,8381422)
(4,432,863)
(368,591)
(498015454)
(48,6395876)
Actual
Amounts
$ 165,564
7,007,204
4,220,948
1,416,135
12,809,851
226,834
22,061,100
1,426,341
23,714,275
(10,904,424)
(1,066,532)
(368,346)
(154345878)
Variance with
Final Budget
Positive
(Negative)
$ (136,686)
(12,7335509)
3,270,948
1,267,968
(8,331,279)
292,964
39,687,049
1,285,264
41,265,277
32,933,998
3,366,331
245
3,366,576
(12,3399302) $ 361300,574
421573,644 481639,876 8514581417
$ - $ - $ 731119,115
The accompanying notes are an integral part of the financial statements.
235
Indian River County, Florida
Board of County Commissioners
Statement of Revenues, Expenditures, and
Changes in Fund Balances - Budget and Actual
Secondary Roads Construction Fund
For the Year Ended September 30, 2007
REVENUES
Taxes
Intergovernmental
Charges for services
Special Assessments
Interest
Miscellaneous
Total revenues
EXPENDITURES
Current:
Transportation
Total expenditures
Excess of revenues over (under) expenditures
OTHER FINANCING USES
Transfers out
Total other financing uses
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Budgeted Amounts
Original Final
Actual
Amounts
$ 3,646,772 $ 35646,772 $ 3,482,514
2,559,060 2,524,623
53,397 1,1823713
13,840 159,683
451,250 6265250 1,120,403
44801 683,294
450985022 7,348,120 9,1535230
2518025326
301515,778
10,927,104
2502,326
30,515,778
10,927,104
(2157049304) (23,167,658) (157735874)
- (I 1498,622) -
(19498,622) -
Variance with
Final Budget
Positive
(Negative)
$ (164,258)
(34)437)
1,129,316
145,843
494,153
234,493
1,805,110
19,588,674
19,588,674
21,393,784
1,498,622
1,498,622
(21,704,304) (24,6665280) (1,773,874) $ 22,892,406
215704,304 241666,280 24,1071225
$ 223333,351
The accompanying notes are an integral part of the financial statements.
NAM
Wn
ft.
0
7q
c
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, 2007
REVENUES
Licenses and permits
Intergovernmental
Charges for services
Special assessments
Interest
Miscellaneous
Total revenues
EXPENDITURES
Current:
General government
Physical environment
Transportation
Total expenditures
Excess of revenues over (under) expenditures
OTHER FINANCING SOURCES
Transfers in
Total other financing sources
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Budgeted Amounts
Original Final
$ 19000 $
2,620,727
129,675
142,500
100,700
810,103
3,993,705
1,230,954
637,402
14,973,377
16,841,733
(12,848,028)
12,943,548
12,943,548
95,520
(95,520)
190,000 $
2,620,727
129,675
142,500
100,700
840,103
4,023,705
1,289,853
636,200
15,882,557
17,808,610
(135784,905)
12,943,548
12,943,548
(841,357)
841,357
Actual
Amounts
150,858 $
3,973,531
149,446
64,608
387,471
454,634
5,180,548
1,000,575
288,088
13,894,549
15,183,212
(105002,664)
11,943,548
11,943,548
Variance with
Final Budget
Positive
(Negative)
(39,142)
1,352,804
19,771
(77,892)
286,771
(385,469)
1,156, 843
289,278
348,112
1,988,008
2,625,398
3,782,241
(11000,000)
(1,000,000)
1,940,884 $ 2,782,241
5,466,343
$ - $ - $ 7,4075227
The accompanying notes are an integral part of the financial statements.
237
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, 2007
REVENUES
Taxes
Intergovernmental
Charges for services
Fines and forfeitures
Interest
Miscellaneous
Total revenues
EXPENDITURES
Current:
Public safety
Debt service:
Principal
Interest and other fiscal charges
Total expenditures
Excess of revenues over (under) expenditures
OTHER FINANCING SOURCES (USES)
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
$ 253722,953 $ 2517223953 $
191000 863035
372469606 3,2461606
307,800
20,714
29,317,073
26,836,160
89,043
90,210
27,015,413
2,301,660
(802,225)
(561,035)
(1,363,260)
938,400
(938,400)
324,000
262,728
29,642,322
33,237,139
89,043
90,210
33,416,392
(3,774,070)
(1,073,940)
(573,764)
(1,6475704)
(5,421,774)
Actual
Amounts
26,099,696
86,900
3,684,841
10,121
935,083
2,728
30,819,369
27,814,374
27,814,374
3,004,995
(15073,940)
(573,223)
(1,647,163)
1,357,832
5,421,774 1055095532
$ - $ 11,867,364
The accompanying notes are an integral part of the financial statements.
238
Variance with
Final Budget
Positive
(Negative)
$ 376,743
865
438,235
10,121
611,083
(260,000)
1,177,047
5,422,765
89,043
90,210
5,602,018
6,779,065
541
541
$ 6,7797606
M"
0
0
0
0
Indian River County, Florida
Board of County Commissioners
Statement of Revenues, Expenditures, and
Changes in Fund Balances - Budget and Actual
Land Acquisition Fund
For the Year Ended September 30, 2007
Budgeted Amounts
Original Final
REVENUES
Intergovernmental
Interest -
Total revenues -
EXPENDITURES
Current:
Physical environment
Debt service:
Interest and other fiscal charges
Total expenditures
Excess of revenues over (under) expenditures
Fund balances at beginning of year
Fund balances at end of year
25,050,000
25,050,000
(255050,000)
200,750 $
200.750
32,200,214
536
32,200,750
(321000,000)
Actual
Amounts
3,613,024
2,088,873
5.701.897
31,129,189
535
Variance with
Final Budget
Positive
(Negative)
$ 3,412,274
2,088,873
5,501,147
1,071,025
1
31,1295724 1,071,026
(251427,827) $ 6,5721173
25105000 32,0009000 43,522,476
$ 18,094,649
The accompanying notes are an integral part of the financial statements.
239
Indian River County, Florida
Board of County Commissioners
Statement of Revenues, Expenditures, and
Changes in Fund Balances - Budget and Actual
SHIP Hurricane Housing Recovery Grant
For the Year Ended September 30, 2007
REVENUES
Intergovernmental
Interest
Total revenues
EXPENDITURES
Current:
Human services
Total expenditures
Excess of revenues over (under) expenditures
Fund balances at beginning of year
Fund balances at end of year
Budgeted Amounts
Original Final
$ 3,550,000 $ 11,1185840
M
375505000 1151185840
375505000 85550,000
3,550,000 8,550,000
Actual
Amounts
$ 5,700,843
405,712
6,106,555
5,700,843
5,700,843
Variance with
Final Budget
Positive
(Negative)
$ (51417,997)
405,712
(5,012,285)
2,849,157
2.849.157
2,5689840 405,712 $ (25163,128)
(2,568,840) 324,258
$ 729,970
The accompanying notes are an integral part of the financial statements.
240
r"
4*.
06
fx
Indian River County, Florida
Board of County Commissioners
Statement of Net Assets
Proprietary Funds
September 30, 2007
Enterprise Funds
Solid Waste Other
Disposal Golf County Enterprise Internal
District Course Utilities Funds Total Service Funds
ASSETS
.. Current assets:
Cash and cash equivalents $ 185109,481 $ 2,854 $ 347340,820 $ 511203153 $ 57,5731308 $ 17,959,321
Accounts receivable- net 191,239 - 3,1585307 - 3,349,546 1817881
Due from other governments 127,814 12,569 4,650 802 145,835 187445
Interest receivable 1785821 - 17129,861 - 1130802 -
�. Inventories - 49,648 743,379 407741 8333768 1373401
Prepaid expenses - - 60 60 1,6787005
Current restricted assets:
Cash and cash equivalents 14,780,748 53,814 72,673,728 112,994 87,6217284 -
Total current assets 337388,103 1187885 112,050,745 5,2741750 150,8321483 19,975,053
Non-current assets:
Unamortized bond costs - 331,047 3,105,502 3,436,549 -
Intangible assets - net 40,282 - - 407282
Capitalassets- non -depreciable 17,123,169 669,630 315447,213 - 49,2403012 346,620
Capital assets -depreciable 163937,524 81559,547 30233693524 2,4273195 330,2935790 474,727
Accumulated depreciation (8,8067899) (1,784,944) (129,114,434) (649,993) (140,3567270) (180,769)
Non-current restricted assets:
Special assessments receivable - - 211925721 2,192,721
Note receivable - - 333,333 - 333,333 -
Impact fees receivable - - 13108,443 - 1,108,443 -
Liens receivable - - 293,705 - 2931705 -
Deposits - 11000 137000 - 1400 -
Total non-current assets 2552945076 7,776,280 211,749,007 11777,202 246,5961565 640,578
Total assets 581682,179 75895,165 323,7991752 75051,952 3971429,048 207615,631
LIABILITIES
Current liabilities (payable from current assets):
Accounts payable 866,106 1413328 117853986 873494 21880,914 463,543
Claims payable - - - - - 6,559,000
Due to other governments - 91776 24,284 91315 43,375 -
Unearned revenues 6,000 44,255 766 - 51,021 -
Other deposits 21000 - - 2,000 -
Capitalleases 747934 - 14,934 -
Accrued compensated absences 85,673 35,043 258,827 745753 454,296 34,755
Total current liabilities (payable from current assets) 9575779 307,336 230695863 1717562 3,5061540 7,0571298
Current liabilities (payable from restricted assets)
Accounts payable - - 67617,202 - 65617,202 -
Retainage payable - - 11801,672 - 11801,672 -
"` Accrued interest payable - 133397 243,579 - 256,976 -
Bonds payable - 4851000 216205000 - 311055000 -
Closure and maintenance costs payable 10,5097598 - - - 10,509,598 -
Customer deposits 178,500 - 278859431 72,571 3,136,502 -
Total current liabilities (payable from restricted assets) 10,6885098 498,397 14,1671884 721571 25,4261950 -
Non-current liabilities:
Accrued compensated absences 1127258 79,115 299,655 115,678 606,706 18,343
Advance from other funds - 712,000 - - 7121000 -
Capitalleases 353091 - 35,091
Bonds payable - net of discount and premium 4,133,728 57,288,097 6194217825 -
Total non-current liabilities 1125258 41959,934 5755877752 115,678 62,7753622 181343
Total liabilities 11,758,135 5,7651667 731825,499 3595811 91,709,112 71075,641
NET ASSETS
Invested in capital assets, net of related debt 25,253,794 2,715,480 144,794,206 17777,202 1747540,682 640,578
Restricted for:
Debt service 40,417 218,333 - 258,750 -
Capital projects - 83,581,721 - 8335817721 -
Unrestricted 21,670,250 (626,399) 2153797993 4,914,939 4713383783 12,8995412
Total net assets $ 46,924,044 $ 2,129,498 $ 2492974,253 $ 6,692,141 $ 305,7191936 $ 13,539,990
The accompanying notes are an integral part of the financial statements.
241
h
Indian River County, Florida
Board of County Commissioners
Statement of Revenues, Expenses, and Changes in Fund Net Assets
Proprietary Funds
For the Year Ended September 30, 2007
OPERATING REVENUES
Charges for services
Charges for services pledged as
security for revenue bonds
Total operating revenues
OPERATING EXPENSES
Personal services
Material, supplies, services and
other operating
Depreciation
Total operating expenses
Operating income (loss)
NONOPERATING REVENUES (EXPENSES)
Interest income
Interest income pledged as
security for revenue bonds
Operating grants
Gain on disposal of equipment
Interest expenses
Bond amortization expense
Intangible amortization expense
Loss on disposal of equipment
Total nonoperating revenues (expenses)
Income before transfers and
capital contributions
Capital contributions
Capital contributions pledged as
security for revenue bonds
Transfers in
Transfers out
Change in net assets
Total net assets - beginning
Total net assets - ending
Enterprise Funds
Solid Waste
Disposal Golf County
District Course Utilities
$ 11,946,566 $
wo
3,374,772 27,5415849
11,946,566 31374,772 277541,849
2,822,334
6,719,521
779,709
10,321,564
1,625,002
2,357,398
58,977
102,266
(9,867)
859,918
1,810,391
196,030
2,866,339
508,433
21,867
1,423
210
(176,993)
(41,505)
7,8955192
13,050,038
13,257,797
34,203,027
(6,661,178)
6,576,873
11,626
25,480
(3,031,300)
(276,476)
(7,423)
25508,774 (1945998) 35298,780
4,133,776 313,435 (39362,398)
- - (8,906,491)
- - 18,635,862
(2,679) - (65,818)
4,131,097 3131435 6,3015155
4257921947 1,8161063 24356731098
$ 465924,044 $ 2,1295498 $ 249,974,253
The accompanying notes are an integral part of the financial statements.
242
a;
7M
71
Q
Other
Enterprise Internal
Funds Total Service Funds
$ 3,250,585 $ 15,197,151 $ 24,0391593
305916,621 -
3,250,585 46,113,772 24,0395593
2,5131724 14,0911168 2,84901
1,015,068 22,5955018 185034,526
173,872 14,407,408 38,049
3,7025664 51,093,594 20,9221436
(4525079) (4,979,822) 31117,157
253,379 2,6105777 855,879
6,598,740 -
802 72,828 17
6,700 134,656 -
- (35208,293) -
(317,981) -
- (9,867) -
(994) (8,417) -
259,887 5,872,443 8551896
(1925192) 892,621 31973,053
(8,906,491) -
- 18,6355862 -
224,730 224,730 -
(49,938) (118,435) -
(17,400) 103728,287 31973,053
61709,541 294,991,649 95566,937
$ 6,692,141 $ 3053719,936 $ 13,5395990
243
w
Indian River County, Florida
Board of County Commissioners
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2007
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 in
Transfers out
Operating grants
Proceeds from advance from other funds
Net cash provided by (used in) noncapital
financing activities
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Principal payments - bonds/notes
Principal payments - capital leases
Interest paid on long-term debt
Proceeds from sales of capital assets
Purchase of capital assets
Bond paying agent fees
Bond issuance costs
Capital contributed by others
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 cash equivalents
Cash
and
cash
equivalents
at
beginning of year
Cash
and
cash
equivalents
at
end of year
Classified as:
Current assets
Restricted assets
Totals
Enterprise Funds
Solid Waste
Disposal Golf County
District Course Utilities
$ 131240,063 $
3,387,130 $
273424,172
(61252,403)
(1,8805990)
(12,4125427)
(21803,752)
(854,543)
(7,883,297)
4,183,908
651,597
7,128,448
(2,679)
-
(655818)
-
854
6,976
-
58,000
-
(25679)
58,854
(58,842)
-
(475,000)
(2,505,000)
-
(83,091)
-
-
(140,957)
(3,041,150)
103,000
210
251480
(3,093,223)
(4,056)
(1752965145)
-
(36,876)
-
-
-
(73,181)
-
-
23403,890
(2,9907223)
2,178,577
2,178,577
3,369,583
29,520,646
$ 32,8901229
$ 185109,481
14,780,748
$ 325890,229
(739,770)
21,867
21,867
(7,452)
64,120
$ 56,668
$ 2,854
53,814
$ 56,668
The accompanying notes are an integral part of the financial statements.
..l
(201486,106)
6,012,000
6,012,000
(7,404,500)
114,4197048
$ 1071014,548
$ 34,340,820
72,673,728
$ 107,014,548
W
awf
m
Other
Enterprise
Funds
$ 3,250,661
(1,073,945)
(2,490,291)
(313,575)
224,730
(49,938)
174.792
18,042
(51,874)
Total
$ 47,302,026
(21,6193765)
(14,031,883)
11,650,378
224,730
(118,435)
7,830
58,000
172,125
(2,980,000)
(83,091)
(3,182,107)
146,732
(205445,298)
(36,876)
(73,181)
2,403,890
Internal
Service Funds
25,329,109
(18,140,831)
(2,8523676)
4,335,602
10
10
(574,364)
(33,832) (24,249,931) (5745364)
253,379
253,379
80,764
8,465,823
8,465,823
(3,961,605)
855,879
855.879
4,617,127
551529383 1499156,197 135342,194
$ 55233,147 $ 145,194,592 $ 17,959,321
$ 55120,153 $ 5755731308 $ 17,9595321
112,994 87,621,284
$ 5,233,147 $ 145,1945592 $ 17,9593321
Continued
245
Indian River County, Florida
Board of County Commissioners
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2007
Enterprise Funds
Solid Waste
Disposal Golf County
District Course Utilities
RECONCILIATION OF NET OPERATING INCOME(LOSS) TO NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
Operating income (loss) $ 156251002 $ 5085433 $ (6,661,178)
Adjustments
to
reconcile
operating income to net cash
provided
by
operating
activities:
Work in progress reclassified as expense
-
-
2495007
Depreciation
7795709
196,030
13,2571797
Capitalized self -incurred expenses
-
-
(52,662)
(Increase) Decrease in assets:
Accounts receivable
2135842
-
(225,162)
Due from other governments
11120,083
(1,500)
-
Inventories
-
1,785
1009117
Impact fees receivable
-
-
3285844
Liens receivable
-
-
(131,785)
Deposits
-
200
39261
Increase (Decrease) in liabilities:
Accounts payable
(294,709)
(73,471)
2669873
Due to other governments
-
887
18,353
Other deposits held in escrow
-
21000
-
Retainage payable
(3,173)
-
-
Customer deposits
(465428)
-
(87,840)
Closure and maintenance costs payable
765,000
-
-
Unearned revenues
600
11,858
(13734)
Claims payable
-
-
-
Accrued compensated absences
18,582
5,375
64,557
Total adjustments 295585906 1435164 13,789,626
In
Net cash provided by (used in) operating activities $ 491833908 $ 651,597 $ 71128,448
NONCASH CAPITAL AND RELATED
FINANCING ACTIVITIES
Change in fair value of investments $ 460,200 $ 183 $ 1,430,696 .�
Contributed property, plant and equipment $ - $ - $ 7,029,734
Capital assets purchased through accounts payable $ - $ - $ 6,653,641
The accompanying notes are an integral part of the financial statements.
i
Other
Enterprise
Funds
Internal
Total Service Funds
$ (452,079) $ (459799822) $ 3,117,157
249,007 -
173,872 14,407,408 38,049
(52,662) -
77 (11,243) 1,289,576
1,118,583 (60)
(41786) 975116 (25,841)
328,844 -
(131,785) -
(60) 3,401 (8555855)
(519705) (153,012) 823391
(23326) 16,914 -
(1) 1,999 -
(3,173) -
- (134,268) -
7659000 -
16,124 -
693,000
23,433 111,947 (2,815)
138,504 165630,200 192183445
$ (313,575) $ 11,650,378 $ 4,335,602
$
439796 $
19934,875
$ 769447
$
- $
71029,734
$ -
$
- $
61653,641
$ -
247
Indian River County, Florida
Board of County Commissioners
Statement of Fiduciary Assets and Liabilities
September 30, 2007
ASSETS
Cash and cash equivalents $ 39804,384
Total assets $ 35804,384
LIABILITIES
Accounts payable $ 345,670
Other deposits held in escrow 3,4585714
Total liabilities $ 3,804,384
The accompanying notes are an integral part of the financial statements.
248
M
M.
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Board of County Commissioners (the "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
M
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 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 Board. The Board is financially
accountable if an organization is fiscally dependent on the Board 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, Board management examined all
organizations, which are legally separate in order to determine which organizations, if any should be
included in the Board's financial statements. 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 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 Board for the SWDD and 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.
249
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
A. Reporting Entity — Continued
Emergency Services District (EMS) — Created pursuant to County Ordinance 90-25, the Board of County
Commissioners serves as the Board for the EMS and sets the millage rate for 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 equity, 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, liabilities,
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 Assets presents assets held by the Board in a custodial capacity for other individuals or organizations.
When both restricted and unrestricted resources are combined in a fund, expenses are considered to be
paid first from restricted resources, and then from unrestricted resources.
Governmental Funds
at
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered to be available when they are collectable within the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the
Board considers revenues to be available if they are collected within 45 days after the end of the current
fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual
accounting. Franchise fees, licenses, 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.
250
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
Be Fund Financial Statements — Continued
Under the current financial resources measurement focus, only current assets and current liabilities 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 current assets.
Accordingly, they are said to present a summary of sources and uses of "available spendable resources"
during a period.
Non-current portions of long-term receivables due to governmental funds are reported on their balance
sheets in spite of their spending measurement focus. Non-current portions of long-term advances and
notes to other funds are offset by fund balance reserve accounts.
Because of their spending measurement focus, expenditure recognition for governmental fund types
,00 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.
4W. 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 County'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 and all liabilities (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 assets. The Board applies all GASB Pronouncements as
well as all FASB Statements and Interpretations, APB Opinions and Accounting Research Bulletins,
issued after November 30, 1989, which do not conflict with or contradict GASB Pronouncements.
Proprietary fund operating revenues, such as charges for services, 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.
Amounts paid to acquire capital assets are capitalized as assets in the fund financial statements, rather than
ede reported as an expenditure. Proceeds of long-term debt are 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.
251
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
Be Fund Financial Statements - Continued
Fiduciary Fund
Agency Fund — The Agency Fund is custodial in nature and does not involve measurement of the results
of operations. It is accounted for on the accrual basis.
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 required to be accounted for 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.
Secondary Roads Construction Fund — The Secondary Roads Constructions Fund accounts for the
expenditures of road and bridge construction. Financing is provided by collections of the local option gas
tax.
Transportation Fund — The Transportation Fund accounts for expenditures incurred for the maintenance
and repair of County roads. Financing is provided by the 5th and 6th cent gas tax, County gas tax and
transfers from the General Fund.
Emergency Services District Fund — The Emergency Services District Fund accounts for the expenditures
of providing fire protection and advanced life support to the County. Ad valorem taxes are the primary
source of revenue.
Land Acquisition Fund — The Land Acquisition Fund accounts 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.
SHIP Hurricane Housing Recovery Grant Fund — The SHIP Hurricane Housing Recovery Grant Fund
accounts for revenues and expenditures of the SHIP Hurricane Housing Recovery grant.
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.
Proprietary ajor Funds
Solid Waste Disposal District — The Solid Waste Disposal District Fund accounts for the revenue,
expenses, assets and liabilities associated with the County landfill.
252
U3
W:
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2007
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
B. Fund Financial Statements - Continued
�. 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.
Other Fund Types
Internal Service Funds — Internal Service Funds account for Fleet Management, Self Insurance and GIS
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 on behalf of
VA other governments and individuals.
Co Cash and Cash Equivalents
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 cash equivalents 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 cash equivalents on these statements.
D. Investments
Investments consist of U.S. Treasury Securities, U.S. Government Agency Securities, a guaranteed
AIM investment contract, the Local Government Surplus Funds Trust Fund Investment Pool and the Florida
Local Government Investment Trust Fund. Investments are reported at fair value in the balance sheet.
1146 E. Allowance for Doubtful Accounts
The Board provides an allowance for water and sewer accounts receivables that may become
�. uncollectable. At September 30, 2007, this allowance was $326,832. No other allowances for doubtful
accounts are maintained since other accounts receivable are considered collectable as reported at
September 30, 2007,
F. Inventories
Inventories are valued at cost, which approximates market, using the "first -in, first -out" method of
accounting. Inventories of governmental funds are recorded as expenditures when consumed rather than
when purchased.
253
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
G. Prepaid Expenses
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. Intangible Assets
Leachate disposal rights were purchased by the Solid Waste Disposal District Fund from the County
Utilities Fund for removal and transportation of leachate from the County landfill to the sewer system.
These assets are being amortized using the straight-line method over the estimated useful life of 20 years.
I. Capital Assets
Capital Assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges,
right-of-ways, water and sewer distribution systems, beach restoration and similar items), 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 $750 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 are recorded at estimated fair market value at
the date of donations.
The costs of normal maintenance and repairs that do not add to the value of the asset or 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, Property Appraiser, Supervisor of Elections and Tax Collector, and is accountable for them under
Florida Law.
Capital assets used by the Board's governmental funds are reported in the financial statements of the
County. Capital assets of the Board's enterprise and internal service funds are reported in the Proprietary
Funds financial statements.
254
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
I. Capital Assets — Continued
Property, plant, and equipment of the primary government, as well as the component units, are depreciated
using the straight-line method over the following estimated useful lives:
Assets Year
Building and improvements 25-50
Machinery and equipment 3-10
Utility distribution systems 25-50
Road and bridge infrastructure 20-50
Fiberoptics 20
Beach preservation infrastructure 7
J. 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.
K. Unamortized Bond Costs
Bond issuance costs and legal fees associated with the issuance of Proprietary Fund revenue bonds are
AN amortized over the life of the bonds using the straight-line method of accounting.
L. 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. For financial reporting, unamortized bond discounts and
premiums are netted against the applicable long-term debt.
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. Deferred Revenues
In accordance with the modified accrual basis of accounting for governmental fund types, revenues which
are measurable but not available, are reported as deferred revenues.
255
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2007
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
O. 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 financial
statements of the County. Proprietary fund types accrue compensated absences in the period they are
earned. .w
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, 2007,
Q. Budgets and Budgetary Accounting
The Board uses the following procedures in establishing the budgetary data reflected in the financial
statements:
1. The constitutional officers submit, at various times, to the Board and to certain divisions within the
Department of Revenue, State of Florida, a proposed operating budget for the fiscal year commencing
the following October 1. The operating budget includes proposed expenditures and the means of
financing them, as set forth in Chapter 129 of the Florida Statutes,
2. The Department of Revenue, State of Florida, has the final authority on the operating budgets for the
Tax Collector and the Property Appraiser included in the General Fund.
3. Constitutional officers, all departments controlled by the Board, and outside state and local agencies
submit their proposed budgets to the Office of Management and Budget for assistance, review, and
compilation. The County Administrator then reviews all County departments, state agencies, and
nonprofit organization's budgets and makes his budget recommendation to the Board.
4. On or before July 15 of each year, the County Administrator and the Director of the Office of
Management and Budget, as the Board's designated budget officer, submit to the Board a tentative
budget for the ensuing fiscal year. The tentative budget includes proposed expenditures and the means
of financing them. The Board then holds workshops to review the tentative budget by fund on a
departmental level.
5. During September, public hearings are held pursuant to Section 200.065 of the Florida Statutes in
order for the Board to receive public input on the tentative budget. At the end of the last public
hearing, the Board enacts 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.
256
i
En
M
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
Q. Budgets and Budgetary Accounting - Continued
6. Formal budgetary integration on an object level is used as a management control device for the
governmental and proprietary funds of the County. Management is authorized to transfer budgeted
amounts between objects and departments in any fund as long as management does not exceed the
total appropriations of a fund. Board approval to amend the budget is only required when
unanticipated revenues are received that management wishes to have appropriated, thereby increasing
the total appropriations of a fund.
7. Budgets for the governmental and proprietary fund types are adopted on a basis consistent with
generally accepted accounting principles.
8. Appropriations for the Board lapse at the close of the fiscal year.
9. The following is a comparison of the appropriations to total expenses for the proprietary funds for the
fiscal year ended September 30, 2007:
Primary Government
Enterprise Funds:
Solid Waste Disposal District
Shooting Range
Golf Course
County Building
County Utilities
Internal Service Funds:
Fleet Management
Self Insurance
GIS
Total Variance
Appropriations Expenses Positive
$ 12,244,105 $ 1013311431 $ 1,912,674
4885080 4651181 225899
3,452,692 3,084,837 367,855
4,7255230 3,2385477 1,486,753
46,0345040 375518,226 85515,814
451115485 355795549 531,936
20,932,259 17,2325626 31699,633
1,394,754 110,261 1,284,493
NOTE 2 - CASH AND CASH EQUIVALENTS
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, 20075 the carrying value of the Board's deposits with banks was $24,031,350 and the
bank balance was $27,174,246. All the deposits were covered by the FDIC or collateralized in accordance
with Section 280.01, Florida Statutes, also known as the "Florida Security for Public Deposits Act".
257
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 2 - CASH AND CASH EQUIVALENTS - Continued
Be Accrued Interest
Interest earnings on U.S. Treasury Notes and government agency bonds are recorded in the cash and
investment pool and then allocated to each fund based on each fund's average monthly balance. As of
September 30, 2007, accrued interest in the amount of $2,182,168 was allocated to the funds based on
their average monthly balance for September.
C. Investments
On August 17, 2004, the Indian River County Board of County Commissioners formally adopted an
investment policy pursuant to Section 218.415, Florida Statutes, that established permitted investments,
asset allocation limits, issuer limits, credit ratings requirements and maturity limits to protect the Board's
cash and investments.
As of September 30, 2007, the Board had the following investments:
Weighted
Average
Maturity Portfolio Credit
Investment Type Fair Value In Years Percentage Risks
Fixed Rate Debt Investments:
U.S. Treasuries $ 515000,000 0.70 13,7% None
U.S. Agencies:**
Federal Farm Credit Bureau 52,9473765 1.08 14.3 AAA
Federal Home Loan Bank 60,4221080 1.42 16.3 AAA
Federal Home Loan Mortgage 61,996,390 1.25 16.7 AAA
Federal National Mortgage Assoc. 49,998,300 1.37 13.5 AAA
Guaranteed Investment Contract 3,139,285 16.92 0.8 AA -/Al+
Other Fixed Rate Investments:
Local Governmental Surplus Funds
Trust Funds 74,513,549 .08 20.1 Not Rated
Florida Local Government
Investment Trust Fund 171085,245 .08 4.6 AAA and S- I*
Total Fair Value 371.102.614 100.0%
Portfolio weighted average maturity 1.04
* AAA credit quality, S-1 Market Volatility
* * The weighted calculation considers the investments are carried until full maturity
(i.e. call dates are not considered).
258
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 2 - CASH AND CASH EQUIVALENTS - Continued
C. Investments — Continued
The Local Government Surplus Funds Trust Fund is a money market fund classified as a "2a7 like fund"
using the SEC investment requirements for 2a7 funds. The fund was established by Florida Statute
218.405 and is administered by the Florida State Board of Administration.
The Florida Local Government Investment Trust Fund is a pool of various securities with maturities of
less than five years. The fund was established by Florida Statute 163.01, is administered by the Florida
Association of Court Clerks, and is marked to market daily.
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 to
ten (10) years or less and no more than 25% of the portfolio shall be invested in instruments with stated
final maturities greater than five (5) years. The portfolio shall have securities with varying maturity and at
least 10% of the portfolio shall be invested in readily available funds.
Credit Risks
State law (Section 218.415 of the Florida State Statutes) and the Board's investment policy limit
investments to the following:
1. Direct obligations of the United States Treasury;
2. State of Florida Local Government Surplus Trust Fund (SBA);
Florida Local Government Investment Trust Fund (FLGIT);
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.
259
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 2 - CASH AND CASH EQUIVALENTS - Continued
C. Investments - Continued
Upon issuance of the Water and Sewer Bonds, Series 1993A and 1993B, the Board invested the required
sinking fund reserve monies, $3,139,285, in a guaranteed investment contract with AIG Matched Funding
Corporation. This contract is for the life of the bonds and has a rate of earnings slightly less than the
arbitrage yield of the bonds.
Please refer to subsequent event note (Note 19) for an update on the Florida Local Government Surplus
Trust Fund (SBA).
Concentration Risk
The Board's investment policy has established asset allocation and issuer limits to reduce concentration of
credit risk in the Board's investment portfolio.
The Board's investment policy does not allow for more than 20% of the entire portfolio to be invested in
any one issuer, with the exception of United States Treasury Obligations and state authorized pools. No
more than 10% of the portfolio may be placed in certificates of deposit and no more than $3 million of the
portfolio may be placed in certificates of deposit with any one financial institution. With the exception of
state authorized pools, no more than 10% of the portfolio may be placed in any one money market fund.
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, 2007, the Board's investment
portfolio in U.S. Treasuries and U.S. Agencies was held by the Bank of New York.
NOTE 3 - PROPERTY TAX REVENUES
Em
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 2006-2007 fiscal year were levied in October,
2006. All taxes are due and payable on November 1 or as soon as the assessment roll is certified and
delivered to the Tax Collector. Discounts are allowed for early payment at the rate of 4% in November,
3% in December, 2% in January, and 1% in February. Taxes paid in March are without discount. All
unpaid taxes become delinquent as of April 1. Virtually all unpaid taxes are collected via the sale of tax
certificates on or prior to June 1; therefore, there were no material taxes receivable at fiscal year end.
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 4 — CAPITAL ASSETS
A. Governmental Fund Type Capital Assets
A summary of changes in the governmental fund type capital assets is as follows:
Total
Buildings and Construction Capital
Land Improvements Equipment In Progress Infrastructure Assets
Balance at
10/1/2006 $ 835451,313 $ 799383,284 $ 391057,839 $ 801935,618 $ 3,575,067 $ 2865403,121
Additions 315116,820 84,022,719 75500,556 21,5367940 - 144,1771035
Deletions - - (996,362) (865803,930) - (875800,292)
Balance at
9/30/2007 $114,568,133 $ 163,406,003 $ 45,562,033 $ 15,668,628 $ 3,5755067 $342,779,864
Depreciation expense 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.
B. Proprietary Fund Type Capital Assets
A summary of changes in the proprietary fund type capital assets is as follows:
Balance at
October 1, 2006
Additions
Deletions
Less:
Accumulated
depreciation
Balance at
September 30, 2007
Buildings
and Construction
Land Improvements Equipment In Progress
$ 18,368,128 $ 288,383,727 $ 20,0785428 $ 20,117,320
21,434,100 1,971,297 25,876,778
(1,099,035) (145775,594)
18,3681128 3095817,827 20,950,690 31,218,504
(127,054,253) (13,482,786) -
$ 18,3685128 $ 182,763,574
261
$ 7,467,904 $ 31,218,504
Total
Capital
Assets
$ 346,947,603
49,282,175
(155874,629)
380,355,149
(1401537,039)
$ 239,818,110
Indian River County, Florida_
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 5 — RESTRICTED CASH AND CASH EQUIVALENTS AND INVESTMENTS
Various bond covenants, resolutions, and state regulations require that the Board restrict cash and cash
equivalents and investments within the Enterprise Funds. Restricted cash and cash equivalents and invest-
ments are as follows:
Sinking funds
Renewal and
replacement
Customer deposits
Capital construction
Closure and maintenance cost
Total
Solid Waste
Disposal
District
Golf
Course
County
Utilities
Other
Enterprise
Funds
Total
$ - $ 53,814 $ 4,449,637 $ - $ 45503,451
3,347,112 - 3,485,928 - 6,833,040
178,500 - 25885,431 72,571 351365502
61,852,732 40,423 61,8931155
11,255,136 - - - 11,255,136
$ 145780,748 $ 53,814 $ 723673,728 $ 112,994 $ 87,621,284
NOTE 6 — PAYABLE FROM RESTRICTED ASSETS
Liabilities payable from the Board's Enterprise Funds restricted assets above are as follows:
Solid Waste Other
Disposal Golf County Enterprise
District Course Utilities Funds
Accounts payable $ - $ - $ 6,617,202 $ -
Retainage payable - - 15801,672 -
Accrued interest payable - 13,397 243,579 -
Bonds payable (current portion) - 4851000 2,6205000 -
Closure/maint. costs payable 10,509,598 - - -
Customer deposits 178,500 - 205,431 72,571
Total $ 10885098 $ 498,397 $ 14,1671884 $ 72,571
262
Total
$ 65617,202
1,801,672
256,976
3,105,000
10,509,598
3,136,502
$ 25,426,950
In
M
M
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 7 - INTERFUND BALANCES
Interfund balances at September 30, 2007, consisted of the following:
Due to General Fund from:
Nonmajor governmental funds:
Federal/State Grants Fund
CDBG Disaster Recovery Initiative Grant Fund
Metro Planning Organization Fund
Total
$ 1,000
660,000
62,000
$ 723,000
Amounts due from the above funds represent short-term cash loans that will be repaid within the next
twelve months.
Interfund advances at September 30, 2007, consisted of the following:
Due to Secondary Roads Fund from:
Golf Course Fund $ 712,000
Due to Optional Sales Tax Fund from:
General Fund 744,225
Total $ 1,456.225
Both amounts are considered long-term advances expected to be paid over the course of several years.
Reservations of fund balance have been established for these amounts.
263
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 8 - INTERFUND TRANSFERS
Interfund transfers for the year ended September 30, 2007, consisted of the following:
Transfers to General Fund from:
Rental Assistance Fund $ 44,484
Transfers to Transportation Fund from:
General Fund 11,943,548
Transfers to Optional Sales Tax Fund from:
General Fund 3,8975189
Impact Fees Fund 130665532
Emergency Services District Fund 19073,940
Solid Waste Disposal District Fund 25679
Building Department Fund 49,938
Utilities Fund 65,818
Subtotal 6,156,096
Transfers to Nonmajor governmental funds from:
General Fund 212,836
Transfers to Nonmajor enterprise funds from:
General Fund 224,730
Total transfers $ 18,581,694
Transfers are used for the following purposes: 1) provide matching funds for grants, 2) use unrestricted
general fund revenues to finance transportation activities which must be accounted for in another fund, 3)
use unrestricted general fund revenues for beach restoration activities which must be accounted for in
another fund, 4) use unrestricted general fund revenues to subsidize a business activity, the Shooting
Range, 5) allocate hurricane insurance proceeds to the appropriate fund, 6) use unrestricted general fund
revenue for electric payments of a street lighting district, 7) provide funding for construction of the
County Administration Complex, 8) use unrestricted general fund revenues for roadway landscape
improvements accounted for in another fund, and 9) reimburse general fund for rental assistance related
expenditures.
►.IA
e
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 9 — RECEIVABLE AND PAYABLE BALANCES
Receivables
Receivables at September 30, 2007 were as follows:
Various Due from other
Governmental Funds: Accounts Governments Total
General $ 516,186 $ 55031,602 $ 53547,788
Impact Fees - 187,713 1879713
Secondary Roads Construction 3,525 317,673 3215198
Transportation 874 2341459 235,333
Emergency Services 87 470,558 470,645
Optional Sales Tax 275009 21701,190 25728,199
Other Governmental 11656 21276,219 2,277,875
Total Governmental Funds $ 549,337 $11,219,414 $ 11,768,751
Proprietary Funds:
Solid Waste $ 191,239 $ 127,814 $ 319,053
. Golf Course - 12,569 12,569
Utilities 3,158,307 4,650 3,162,957
Other Proprietary 18101 802 1822683
Total Proprietary Funds 3 531 427 $ 145,835 $ 3 677,262
ti On May 2, 2006, the Board approved an incentive loan agreement with Adrian Investments regarding their
development of the Indian River Park of Commerce. This agreement resulted in a total $1.5 million note
receivable due to the Board and will be repaid by Adrian Investments in payments upon closing of the
conveyance of each lot in the park. The total balance will be repaid over ten years.
During FY 2006, the Board loaned the initial $1.0 million on the above project. The remaining $500,000
will be paid to Adrian Investments upon final plat approval or issuance of a certificate of completion.
Funding for the $1.0 million note receivable was from the following funds: $666,667 from the Secondary
Roads Construction Fund and $333,333 from the Utilities Fund. As of September 30, 2007, the $500,000
has not been paid to Adrian Investments because they have not received final plat approval or been issued
a certificate of completion.
265
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 9 — RECEIVABLE AND PAYABLE BALANCES — Continued
Payables
Payables at September 30, 2007, were as follows:
Governmental Funds:
General
Impact Fees
Secondary Roads Construction
Transportation
Emergency Services
Land Acquisition
SHIP Hurricane Housing
Optional Sales Tax
Other Governmental
Total Governmental Funds
Proprietary Funds:
Payable from current assets:
Solid Waste
Golf Course
Utilities
Other Proprietary
Payable from restricted assets:
Solid Waste
Utilities
Total Proprietary Funds
Accounts Payable
Salaries and
Vendors
$ 1,317,563
3,422,642
513,574
289,465
843,414
65,192
553,906
4,064,205
1,840,952
12.910.913
Benefits
$ 340,339
1,439
12,495
200,779
422,011
1,898
18,314
$ 997,275
Retainage
Payable
1,539,443
591,854
1,240
118,004
2,394,669
643,412
5.288,622
Total
Pavables
$ 1,657,902
4,963,524
1,117,923
491,484
1,265,425
65,192
671,910
6,460,772
2,502,678
19.196.810
$ 808,607 $ 575499 $ - $ 866,106
1165432 24,896 - 141,328
1,612,191 173,795 - 1,7855986
477,174 735863 - 5519037
6,617,202
9;63 1;606
$ $ 330 053
1,801,672
1.801,672
8,418,874
11,763,331
The Board has not engaged in any short-term debt activity during fiscal year 2007 other than that listed in
Note 7.
266
.� Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 10 — LONG-TERM LIABILITIES
A. Enterprise Fund Bonds Payable
Golf
Purpose - On October 15, 2003, the Series 2003 bonds were issued to legally redeem $6,735,000 of the
County's outstanding Recreational Revenue Bonds, Series 1993. The Series 2003 bonds are being issued
by the County to provide funds, together with $583,790, to retire all of the outstanding 1993 Series bonds
and to pay for all bond issuance costs.
Pledge of Revenue - The revenue bonds are collateralized by a lien on the net revenues derived from the
operations of the golf course, racetrack and Jai Alai Fronton funds, and seven percent of the half -cent sales
tax accruing annually to the County.
The aggregate difference in debt service between the Series 1993 debt ($9,284,290) and Series 2003 debt
(8,060,911) is $1,223,379. The net economic gain was $348,450.
Bonds Issued - At September 30, 2007, the revenue bonds consisted of the following:
Outstanding at
Interest Rates September 30,
Description and Date Maturity Issue 2007
2003 Recreational Revenue 2.00 — 4.125% 9/1/16 $ 6,4551000 $ 456605000
Refunding Bonds 3/1 and 9/1
Less: Current Portion of bonds 485,000
Unamortized Bond Discount 41,272
Long -Term Portion of bonds $ 4.133,728
Optional Redemption - The revenue bonds, maturing on or after September 1, 2014, are subject to
redemption prior to maturity, at the option of the County on and after September 1, 2013, in whole or in
part, at any time thereafter at the redemption price of par, plus interest accrued to the date of redemption.
Water and Sewer Revenue Bonds Series 1993A
Purpose - The Series 1993 bonds were issued to legally defease all of the County's outstanding Water and
Sewer Revenue and Refunding Bonds, Series 1986 and 1986A, Series 1989, Series 1991, and Special
Assessment Revenue Bonds, Series 1989 and Series 1990, and to provide funds to make certain capital
improvements to the utility system.
Pledge of Revenues - The revenue bonds are collateralized by a pledge of all net revenues derived from
the operation of the system, and certain surcharges and special assessments.
267
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 10 - LONG-TERM LIABILITIES - Continued
A. Enterprise Fund Bonds Payable — Continued
Water and Sewer Revenue Bonds, Series 1993A - Continued
Bonds Issued — At September 30, 2007 the revenue bonds consisted of the following:
Interest Rates
Description and Date Maturity Issue
Water and Sewer 2.60-6.50%
Revenue Bonds, 3/1 and 9/1 2024 $ 4751905000
Series 1993A
Less: Current Portion of bonds
Unamortized Bond Discount
Long -Term Portion of bonds
Outstanding at
September 30,
2007
$ 349005,000
1,310,000
995,087
31.699,913
Mandatory Redemption - The Series 1993A term bonds are subject to mandatory redemption by lot, prior
to maturity, at par plus accrued interest to date of redemption, based on the following schedule:
Term Bonds Due September 1, 2008
Date Principal Amount
September 1, 2008 $ 1,3109000
Term Bonds due September 1, 2011
Date Principal Amount
September 1, 2009 $ 13395,000
September 1, 2010 114755000
September 1, 2011 1555500
Term Bonds due September 1, 2015
Date Principal Amount
September 1, 2012 $ 1,640,000
September 1, 2013 1,73000
September 1, 2014 1,825,000
September 1, 2015 1,925,000
Term Bonds due September 1, 2018
Date Principal Amount
September 1, 2016 $ 2,0305000
September 1, 2017 2,135,000
September 1, 2018 252505000
268
M
71
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
w Year Ended September 30, 2007
NOTE 10 - LONG-TERM LIABILITIES - Continued
A. Enterprise Fund Bonds Payable — Continued
Water and Sewer Revenue Bonds Series 1993A - Continued
Term Bonds due September 1, 2020
Principal Amount
Date
September 1, 2019 $ 2,370,000
September 1, 2020 2,49000
Term Bonds due September 1, 2024
Date Principal Amount
September 1, 2021 $ 2,625,000
September 1, 2022 25760,000
September 1, 2023 2,9051000
September 1, 2024 1,5851000
Optional Redemption - The revenue bonds, Series 1993A, maturing on or after September 1, 2009, are
subject to redemption prior to maturity, at the option of the County on and after September 1, 2008, in
whole or in part, at any time, on any interest payment date at par plus accrued interest and plus a premium
ranging between 0% and 2% depending on the year of redemption.
ater and Sewer Revenue Refunding Bonds Series 2005
�. Purpose - The Series 2005 bonds were issued to legally defease $31,680,000 of the County's outstanding
Water and Sewer Revenue Bonds, Series 1996. These bonds were issued by the County to provide funds,
.. together with $5,000,000, to retire 95 percent of the 1996 Series and to pay for all bond issuance costs.
The September 1, 2005 and 2006 principal installments were not subject to early call and consequently
paid at their respective maturity dates.
The aggregate difference in debt service between the Series 1996 ($40,585,193) and Series 2005
($39,619,193) is $966,000. The net economic gain was $2,944,661, which included shortening the term of
�. the bonds by four years and lowering average annual debt service by $242,000.
Pledge of Revenues — The revenue bonds are collateralized by a pledge of all net revenues derived from
the operation of the system, certain surcharges, and special assessments.
269
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 10 - LONG-TERM LIABILITIES - Continued
A. Enterprise Fund Bonds Payable — Continued
Water and Sewer Revenue Refunding Bonds Series 2005 - Continued
Bonds Issued - At September 30, 2007, the revenue bonds consisted of the following:
Outstanding at
Interest Rates September 30, `
Description and Date Maturity Issue 2007
Water and Sewer 3-5%
Revenue Bonds, 3/1 and 9/1 2022 $27,6755000 $ 255980,000
Series 2005
Less: Current Portion of bonds 1,310,000
Add: Unamortized Bond Premium 918,184
Long -Term Portion of bonds 25,588.184
Outstanding In -Substance Defeased Debt - The proceeds from the refunding were invested in Federal
Securities and placed in an escrow account with J.P. Morgan. All of the defeased bonds ($31,680,000)
were called on September 1, 2006 at 102% of the outstanding principal amount.
Optional Redemption - The Series 2005 bonds maturing after September 1, 2015, are subject to
redemption by the County on or after September 1, 2015, in whole or in part, at par, plus accrued interest
to date of redemption.
270
0
a
As
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 10 - LONG-TERM LIABILITIES - Continued
A. Enterprise Fund Bonds Payable — Continued
Annual Debt Service Payments
The annual debt service payments for bonds outstanding at September 30, 2007 are as follows:
Ending Revenue Bonds Refunding Bonds Refimding Bonds
September 30 Series 2003 Series 1993 Series 2005
Principal Interest Principal Interest Principal Interest
2008 $4855000 $1605764 $1,3105000 $1,830,500 $1,310,000 $110929450
2009 490,000 1489639 095,000 15745,350 1,35000 19053,150
2010 5105000 1355164 19475,000 1,6685625 11395,000 11012,650
2011 5205000 1199864 19555,000 1,5875500 11435,000 970,800
2012 5355000 102,964 1,6409000 1,5015975 1,480,000 925,250
2013-2017 2,120,000 2019287 95645,000 690585825 81395,000 3,6323650
2018-2022 - - 12,495,000 3,213,525 101615,000 1,405,250
2023-2027 - - 4,4909000 318,938 - -
Total 4966000 X82 3400 ,�00 17—,�8 25--_0_ 10�=201.
Less:
Current portion 485,000 - 1,310,000 - 1,310,000
Unamorti zed
bond discount 41,272 - 9955087 - - -
Add:
Unamorti zed
bond premium - - - - 9187184 -
Total $471335728 $868,682 $31,699,913 $17,925,238 $25,588,184 $1Q 092,200
Ass
B. Enterprise Fund Capital Leases
The Board has entered into a lease -purchase agreement to purchase golf carts for Sandridge Golf Course
with a lease term of 48 months. Monthly payments for the lease are made by the Golf Course Fund. The
value of the golf carts at the time of the lease was $311,302. The following is a schedule of future
minimum lease payments under the capital lease, together with the present value of the net minimum lease
payments, as of September 30, 2007:
Fiscal Year Ending September 30,
2008 $ 78,070
2009 35,487
Total Minimum Lease Payments $ 113,557
Less Amount Representing Interest (3,532)
Present Value of Net Minimum Lease Payments 110,025
271
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 10 - LONG-TERM LIABILITIES - Continued
Co Changes in Governmental Long -Term Liabilities
Balance Balance
October 1, September 30,
2006 Additions Deletions 2007
Accrued Compensated Absences: $ 3,8475413 $ 117723477 $ 1,3913392 $ 4,2285498
Bonds Payable:
Limited General Obligation
Bonds - 2006 Series 48,600,000 - 2,3205000 46,280,000
General Obligation
Bonds - 2001 Series 81035,000 - 6701000 7536500
General Obligation
Refunding Bonds - 2003 Series 4,620,000 - 1,1055000 3,5155000
Spring Training Facility
Revenue Bonds - 2001 Series 14,52000 - 52000 14100000
Total Bonds Payable 75,775,000 - 4561500 713160,000
Total $ 79,6225413 $ 1,7725477 $ 6,006,392 $ 7553885498
Of the $4,228,498 liability for accrued compensated absences, management estimates that $1,655,657 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 by the fund which normally pays the personnel service costs of the
employee.
D. Governmental Long -Term Debt
Limited General Obligation Bonds
Purpose — On July 6, 2006, the Board issued $48,600,000 of Limited General Obligation Bonds Series
2006. The issuance of the Series 2006 bonds was approved by a majority of votes cast in a bond
referendum held on November 2, 2004, by the qualified electors of the County. The referendum
authorized a total of $50,000,000 aggregate principal amount of limited general obligation bonds. The
proceeds of this issue will provide funds to acquire interest in lands to protect water resources and/or
drinking water sources, environmentally sensitive lands, historic sites, and/or agricultural lands together
with the necessary preservation, restoration, remediation and reclamation activities to preserve and
enhance such property.
Pledge of revenues - The principal and interest on the bonds are payable from ad valorem taxes not
exceeding 1/2 mil and having a maturity not exceeding fifteen years, which are levied by the Board upon
the taxable real and personal property of the Board.
272
M
rol
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 10 - LONG-TERM LIABILITIES - Continued
D. Governmental Long -Term Debt - Continued
At Limited General Obliyation Bonds - Continued
Bonds Issued - At September 30, 2007, General Obligation bonds consisted of the following:
At
Outstanding at
Interest Rates September 30,
Description and Date Maturily Issue 2007
Limited General Obligation 4.00%-5.00%
Bonds, 2006 Series 1/1 and 7/1 2021 48,600.000 $ 46.280,000
IM
Optional Redemption - The Limited General Obligation Bonds, Series 2006, maturing on or after July 1,
2017, are subject to redemption prior to maturity, at the option of the County on and after July 1, 2016, in
whole or in part, at any time, on any date at a redemption price of par, together with accrued interest to the
redemption date.
General Obligation Bonds
Purpose — On November 29, 2001, the Board issued the additional $11,00000 of General Obligation
Bonds Series 2001. The issuance of the Series 1995 bonds and the Series 2001 bonds were approved by a
majority of votes cast in a bond referendum held on November 2, 1992, by the qualified electors of the
County. The referendum authorized a total of $26,000,000 aggregate principal amount of general
obligation bonds, in one or more series, for which the Series 1995 bonds are the first (in the amount of
$15,000,000) and the Series 2001 bonds are the second. The proceeds of this issue will provide funds to
acquire environmentally sensitive lands, together with the necessary restoration, remediation, and
reclamation activities to preserve and enhance such property.
On July 1, 2003, the Board issued $7,800,000 of General Obligation Refunding Bonds, Series 2003. The
bonds were issued to provide funds, together with $600,000, to refund and redeem all of the outstanding
principal amount of the County's $15,000,000 General Obligation Bonds, Series 1995: Proceeds of the
bonds will also be used to pay the cost of issuance of the bonds, including the premiums for guaranty
insurance.
Pledge of Revenues - The principal and interest on the bonds are payable from ad valorem taxes levied by
the Board upon the taxable real and personal property of the Board.
273
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 10 - LONG-TERM LIABILITIES - Continued
D. Governmental Long -Term Debt - Continued
General Obligation Bonds - Continued
Bonds Issued - At September 30, 2007, General Obligation bonds consisted of the following:
Outstanding at
Interest Rates September 30,
Description and Date Maturity Issue 2007
General Obligation Bonds, 2.50%-4.30%
2001 Series 1/1 and 7/1 2016 11,000,000 7P365 000
General Obligation Refunding 1.50%-3.00%
Bonds, 2003 Series 1/1 and 7/1 2010 7 800 000 3 515 000
Optional Redemption - The General Obligation Bonds, Series 2001, maturing on or after July 1, 2013, are
subject to redemption prior to maturity, at the option of the County on and after July 1, 2012, in whole or
in part, at any time, on any date at par plus accrued interest and plus a premium ranging between 0% to
1% depending on the year of redemption. The General Obligation Refunding Bonds, Series 2003, are not
subject to redemption prior to their maturities.
Spring Training Facility Revenue Bonds
Purpose - On August 15, 2001, the Board issued $16,810,000 of Spring Training Facility Revenue Bonds,
Series 2001. The Series 2001 bonds are being issued by the 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 known as "Dodgertown"; (2) pay a premium for a municipal bond insurance policy and a debt
service reserve account surety bond, and (3) pay certain costs and expenses incurred in connection with
the issuance of the Series 2001 bonds.
Pledge of Revenues - The principal and interest on the Series 2001 bonds will be payable from and
secured by a first lien upon and pledge of the following, together with any investment income realized on
any funds held under the Resolution, except the Cost of Issuance Account and the Rebate Fund:
1. Payments received by the 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"
274
rM
-� Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2007
IM
NOTE 10 - LONG-TERM LIABILITIES - Continued
D. Governmental Long -Term Debt - Continued
104 Spring TrainingFacility acility Revenue Bonds - Continued
The Fourth Cent Tourist Development Tax and the Local Government Half -Cent Sales Tax pledged to the
Adol 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.
Bonds Issued - At September 30, 2007, Spring Training Facility Revenue Bonds consisted of the
following:
Outstanding at
Interest Rates September 30,
Description and Date Maturity Issue 2007
Spring Training Facility 3.30%-5.25%
Revenue Bonds -Series 2001 4/1 and 10/1 2031 $ 16,810,000 $ 14,000,000
Optional Redemption - The Series 2001 bonds maturing on or after April 1, 2012, are subject to
redemption at the option of the County in whole or in part, on April 1, 2011, or on any date thereafter at
par plus accrued interest and plus a premium ranging between 0% to 1% depending on the year of the
redemption.
,,I 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:
0
Term Bonds due April 1, 2015
Date
April 1, 2014
April 1, 2015
Term Bonds due April 1, 2017
Date
April 1, 2016
April 1, 2017
Term Bonds due April 1, 2021
Date
April 1, 2018
April 1, 2019
April 1, 2020
April 1, 2021
275
Principal Amount
$ 685,000
725,000
Principal Amount
$ 760,000
795,000
Principal Amount
$ 840,000
890,000
930,000
980,000
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 10 - LONG-TERM LIABILITIES - Continued
D. Governmental Long -Term Debt - Continued
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
Annual Debt Service Payments
Principal Amount
$ 305,000
320,000
340,000
355,000
375,000
390,000
Principal Amount
$ 410,000
430,000
455,000
435,000
The annual debt service payments for bonds outstanding at September 30, 2007, are as follows:
Fiscal Year
Limited
General
Ending
Obligation Bonds
September 30
Series
2006
6055000
Principal
Interest
2008
$ 2,565,000
$ 2,048,063
2009
2,6701000
15945,463
2010
2577500
11838,663
2011
258853000
15727,663
2012
3,000,000
13612,263
2013-2017
171015,000
5,993,063
2018-2022
l 5,3 70, 000
1,774,3 50
2023-2027
-
-
2028-2032
Total
46,28000
16,939,528
Less:
Current portion
Unamortized
bond discount
Add:
Unamortized
bond premium
Total
General Obligation
Refunding Bonds
Series 2003
General Obligation
Bonds
Series 2001
Principal Interest Principal Interest
$ 1,1353000 $ 99,775 $ 690,000 $ 290,643
1,170,000 71,400 720,000 266,493
1,210,000 36,300 745,000 240,572
- 7803000 2131008
8101000 183,368
35620,000 3921058
35515,000 207,475 71365,000 1,5861142
Spring Training Facility
Revenue Bonds
Series 2001
Principal
Interest
$ 545,000
$ 685,343
56000
664,633
585,000
6421232
6055000
618,833
6305000
593,423
3,6201000
2,492,470
3,94500
114435575
157805000
708,250
1,7301000
218,750
14,00000
8,067,509
215655000 - 1,135,000 - 6905000 - 5451000 -
1,2811835 -
$ 44,996,835 $ 16,939,528 $ 2,3803000 $ 207,475 $ 6,675,000 $ 1,586,142 $ 130551000 $ 85067,509
AM
Ej
W,
.4
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 10 - LONG-TERM LIABILITIES - Continued
D. Governmental Long -Term Debt - Continued
The General Obligation Bonds and Spring Training Facility Revenue Bonds are not reported in the
governmental fund statements since they are not current liabilities payable from available spendable
resources. They are reported in the financial statements of the County.
E. Summary of Defeased Debt Outstanding
The following outstanding revenue bonds are legally defeased. Since governmental obligations are held in
escrow for the payment of principal and interest, the bonds are not liabilities of the Board.
Retired
Outstanding at During Outstanding at
September 30, Fiscal Year September 30,
` Description 2006 2007 2007
Capital Improvement Revenue 275 000 $ 1,365,000
Bonds: Series 1980 1,640,000 $
A*
F. Conduit Debt Obligations
From 1997 until 1999, Indian River County issued Industrial Revenue Bonds to provide financial
assistance to private -sector entities for the acquisition, construction, and equipping of industrial and
commercial facilities deemed to be in the public interest. These facilities included an expanded processing
facility and an educational facility, for a total of two series of Industrial Revenue Bonds. The bonds are
secured by the property financed and are payable solely from payments received on the underlying
mortgage loans. Upon repayment of the bonds, ownership of the acquired facilities transfers to the private -
sector entity served by the bond issuance. Neither the County, the State, nor any political subdivision
thereof is obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as
liabilities in the accompanying financial statements.
Original Principal
Bond Issue Outstanding Year Bonds and Prosect Description
$ 18,000,000 $ 15,800,000 1999 St. Edward's School, Inc. — Upper School
educational facilities
4108000 2 400,000 1997 Ocean Spray Cranberries, Inc. — expansion of
23,000 sq. ft. processing facility
Total $ 18 200.000
277
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2007
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.
Required closure and post -closure obligations per segment:
Active
Segment I addition - C & D
Segment II B addition — household waste
Segment II C addition — household waste
Construction and Demolition
Inactive
Segment I - household waste
Segment II -A class 1 - household waste
Construction and Demolition
Total account balance at 9/30/07:
Capacity
Used
74%
76%
76%
74%
N/A
N/A
N/A
Estimated
Closing
2008
2008
2011
2010
Closure and
Post -Closure
Obligation
2,280,025
3,839,857
976,366
N/A 5083000
N/A 2,876,400
N/A 144,488
11.255.136
Date
Closed
N/A
N/A
N/A
1993
1998
The total unrecognized closure and post -closure costs attributable to the currently active landfill areas
Segment I, Segment II, and Construction and Demolition are approximately $720,000. 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.
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 expenditures.
278
rM
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 12 — PENSION PLANS
Florida Retirement System
Plan Description: The Board'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. The FRS is noncontributory for all members; all contributions are made by the
employer. Employees elect participation in either the defined benefit plan (Pension Plan) or the defined
contribution plan (Investment Plan). The Pension Plan provides for vesting of benefits after six years of
creditable service. Normal retirement benefits are available to employees who retire at or after age 62
with six or more years of service or thirty years of service regardless of age. Early retirement is available
after six years of service with a five percent reduction in benefits for each year prior to the normal
retirement age. Retirement benefits are based on age, average compensation, and years -of -service credit
where average compensation is computed as the average of an individual's five highest years of earnings.
For those employees who elect participation in the Investment Plan rather than the Pension Plan, vesting
occurs after one year of service and there is no "normal retirement age". These participants receive a
defined contribution for self-direction in an investment product with a third parry administrator selected
by the State Board of Administration.
In addition to the above benefits, the FRS administers a Deferred Retirement Option Program (DROP).
This program allows eligible employees to defer receipt of monthly retirement benefit payments while
continuing employment with a FRS employer for a period not to exceed five years after electing to
participate. Deferred monthly benefits are held in the FRS Trust Fund and accrue interest.
Contributions to the FRS for the fiscal year ended September 30, 2007, were equal to 13.2% of the annual
covered payroll. Contributions to the FRS for the fiscal years ended September 30, 2005, 2006, and 2007,
were $4,215,935, $4,741,594, and $5,648,875 respectively, which are equal to 100% of the required
contribution for each year.
Florida Statutes Chapter 121, as may be amended from time to time by the state legislature, determines
contribution rates for the various membership classes of the FRS. The FRS issues a publicly available
financial report that includes financial statements, ten-year historical trend information and other required
supplementary information. That report may be obtained by writing to the Florida Department of
Management Services, Division of Retirement, Attention: Research, Education, & Policy Section, P.O.
Box 9000, Tallahassee, Florida 32315-9000. The funding policy is described in detail in the Florida
Retirement System note in the County -wide financial statements.
NOTE 13 - OPERATING LEASES
The Board has entered into noncancelable operating leases, both as lessor and lessee. Lease terms vary
from 2 to 49 years. Lease revenues totaled $436,777 and lease expenditures totaled $63,168 for the year
ended September 30, 2007. The Board also leases other equipment and office facilities as both lessor and
lessee on a month-to-month basis.
279
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 13 - OPERATING LEASES - Continued
A. Future Minimum Lease Receipts
Year Amount
2008 $ 438,967
2009 451,499
2010 462,495
2011 477,147
2012 408,709
2013-2017 2,0025174
2018-2022 1,997,141
2023-2027 1,0625757
2028-2032 466,359
2033-2035 600
Total future minimum lease receipts: 7,767,848
The property being leased is reported in the financial statements of County and has a cost of $7,890,815,
and a carrying value of $2,805,419. All depreciable property being leased has been fully depreciated.
Be Future Minimum Lease Payments
The following is a schedule, by years, of minimum future rentals to be paid by the Board for various
noncancelable operating leases as of September 30, 2007:
Year Amount
2008 $ 59,213
2009 605651
2010 625088
2011 21,838
2012 21,838
2013-2017 109,190
2018-2022 109,190
2023-2027 1095190
2028-2032 12,269
2033-2037 1,500
2038-2042 1,500
2043-2047 1,500
2048-2050 900
Total future minimum lease payments: 570 867
60
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 14 - FUND EQUITY
Reserved Fund Balances
` The Board has established certain reserves within the fund equity section of the governmental funds.
Reserved fund balances at September 30, 2007, consist of the following:
0
Special Revenue Funds:
Reserved for Capital Projects:
Secondary Roads Construction Fund
Reserved for Advances to Other Funds:
Secondary Roads Construction Fund
Total
Debt Service Funds:
Reserved for Debt Service:
Land Acquisition Bonds Fund
Spring Training Facility Revenue Bonds Fund
Total
Capital Projects Funds:
Reserved for Capital Projects:
Optional Sales Tax Fund
Dodgertown Capital Reserve Fund
Subtotal
Reserved for Advances to Other Funds:
Optional Sales Tax Fund
Total
NOTE 15 - FUND EQUITY DEFICIT
$ 666,667
712,000
$ 1,378,667
$ 1,956,189
960,657
$ 2,916.846
$15,986,939
2,021,031
18,007,970
744,225
$18,752,195
The following funds had a deficit in fund balance at September 30, 2007:
Fund Deficit
Nonmajor Governmental Funds:
Federal/State Grants Fund $ 51457
CDBG Disaster Recovery Grant Fund 11582,263
�. Total Deficit $1,587,720
The deficits for these two funds will be eliminated by grant proceeds in the fiscal year 2008.
281
0
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 16 — RESTRICTED NET ASSETS
The Board has established certain restrictions within the net assets section of the proprietary funds.
Restricted net assets at September 30, 2007, consist of the following:
Restricted for Debt Service:
Golf Course Fund $ 40,417
County Utilities Fund 218,333
Total $ 258,750
Restricted for Capital Projects:
County Utilities Fund 83,581,721
NOTE 17- RISK MANAGEMENT
A. General Liability, Property, Worker's Compensation and Medical
The Board is exposed to various risks of loss related to torts, theft of, damage to and destruction of assets,
errors or omissions, injuries to employees, and natural disasters. The Board established a Self Insurance
Fund (an internal service fund) to account for and finance its uninsured risk of loss. Under this program,
the Self Insurance Fund provides coverage as follows:
Worker's Compensation
General Liability
Auto Liability
Property Damage
Error or Omissions
Annual Aggregate
Liquor Liability
Prior to 10/1/03 to
10/1/03 10/1/04
$ 350,000 $500,000
2005000 200,000
200,000 20000
500 - 2500 500-251000
200,000 20000
150005000 1001000
10000 1,000,000
10/1/04 to
Present
$ 600,000
200,000
200,000
500 - 25,000
200,000
1,000,000
1,000,000
The Board purchases excess insurance to cover claims in excess of the coverage listed above. The Board
has not incurred any settlements in excess of the insurance coverage listed above in the past three fiscal
years. 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 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 plan assumes all risk for claims, other than workers compensation, up to •
$100,000 per individual/$200,000 per occurrence. For workers compensation, the plan assumes all risk for
claims up to $250,000 per individual/$250,000 per occurrence. The County has purchased a reinsurance
policy to cover claims in excess of these limits. There were no claims in excess of these limits for the
2005, 2006, and 2007 fiscal years.
282
Im
.w
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 17- RISK MANAGEMENT - Continued
A. General Liability, Property, Worker's Compensation and Medical — Continued
The claims liability of $6,559,000 reported at September 30, 2007, 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, 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, $1,949,500 will be liquidated over the next twelve months.
Changes in the fund's claims liability amount during the current and prior three fiscal years are as follows:
2003-2004
2004-2005
2005-2006
2006-2007
Balance at
Fiscal Year
Beginning
$ 455815000
5,331,000
5,330,000
5,866,000
Claims
and Changes
in Estimates
$ 11,597,947
10,657,797
13,026,906
14,282,793
Claims
Payments
$ (10,847,947)
(10,6585797)
(12,490,906)
(1315 89 ,793)
Balance
at Fiscal
Year End
$ 5,3311000
5,330,000
5,866,000
6,559,000
Included in the charges to other funds is an amount to fund future catastrophic losses not actuarially
determined; and at September 30, 2007, unreserved net assets of $12,340,578 have been designated for
this purpose. The Board has elected to accrue the larger of the discounted liability or undiscounted
liability. At September 30, 2007, the undiscounted liability was the greater of the two amounts. The
discount rate used in the calculation was 2.5 percent.
NOTE 18 - COMMITMENTS AND CONTINGENCIES
A. Litigation
Various suits and claims are currently pending against the Board. It is impossible for the Board to
accurately quantify the exposure involved given the jury's latitude in assessing compensatory and punitive
damages, and the court's latitude in awarding attorney's fees. The Board intends to vigorously defend
against these lawsuits and believes it has a good chance of prevailing on their merits.
The Board is contingently liable with respect to lawsuits and other claims incidental to the ordinary course
of its operations. In the opinion of management and based on the advice of legal counsel, the ultimate
disposition of lawsuits will not have a material adverse effect on the financial position of the Board.
283
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 18 - COMMITMENTS AND CONTINGENCIES - Continued
Be Contracts and Other Commitments
The County has various contracts and commitments outstanding at September 30, 2007. In the General
Fund, contracts are for Custodial Services, the 800 Mhz Radio Maintenance, GIS Needs Assessment, and
various other general services. In the Special Revenue Funds, contracts are for Beach Renourishment
Projects, renovation and construction of Fire/EMS stations, numerous environmental protection services
and a variety of road paving and drainage projects. In the Capital Projects Funds, contracts are for the
Main Relief Canal Pollution Control System, the New County Administration Complex, IRC Jail
Expansion and several storm water projects throughout the County. In the Enterprise Funds, contracts are
for the Rockridge Vacuum Sewer Replacement, North County R/O Plant Expansion, the West Wastewater
Transmission System, and various other water and sewer projects.
A summary of these projects at September 30, 2007, is as follows:
Total contact price
Total paid as of
September 30, 2007
Remaining balance at
September 30, 2007
C. Grants
General
$ 1,582,573
(1,458,408)
Special Capital
Revenue Projects Enterprise
$ 93,841,320 $ 85,444,103 $ 82,626,672
57,845,753) (73,1815838) (44,1565682
Total
$ 2635494,668
(176,642,681)
$ 124,165 $ 355995,567 $ 12,262,265 $ 38,469,990 $ 86,851,987
Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor
agencies. If any expenditures are disallowed as a result of these audits, the claims for reimbursement to the
grantor agency would become a liability of the Board. In the opinion of management, any such
adjustments would not be significant.
NOTE 19 — SUBSEQUENT EVENTS
A. State Board of Administration
As discussed in Note 2, at September 30, 2007, the Board of County Commissioners had $74,513,549
invested in the State Board of Administration's (SBA) Local Government Surplus Funds Trust Fund
Investment Pool (Pool). However, prior to November 29, 2007, when the State Board of Administration
implemented a temporary freeze on the assets held in the Pool, the Board of County Commissioners
withdrew all those funds from the Pool. The freeze was implemented by the SBA due to an
unprecedented amount of withdrawals from the Pool coupled with the absence of market liquidity for
certain securities within the Pool. The significant amount of withdrawals followed reports that the Pool
held asset-backed commercial paper that was subject to sub prime mortgage risk.
.. Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
M Year Ended September 30, 2007
NOTE 19 - SUBSEQUENT EVENTS - Continued
A. State Board of Administration - Continued
On December 4, 2007, based on recommendations from an outside financial advisor, the State Board of
Administration restructured the Pool into two separate Pools. Pool A consisted of all money market
appropriate assets, which was approximately $12 billion or 86% of Pool assets. Pool B consisted of assets
that either defaulted on a payment, paid more slowly than expected, and/or had any significant credit and
liquidity risk, which was approximately $2 billion or 14% of Pool assets. At the time of the restructuring,
all current Pool participants had their existing balances proportionately allocated into Pool A and Pool B.
However, prior to the restructuring, the SBA directed all Tax Collectors who had tax collections invested
in the Pool, to provide the SBA with the names, account numbers and dollar amounts of these tax
collections to be distributed to those taxing authorities which had accounts set up under their name in the
Pool. The SBA would then transfer the amounts from the Tax Collector's account to the accounts of said
taxing authorities within the SBA. Consequently, the Board of County Commissioners received their
November 2007 property tax distribution of $23,109,797 which was being held by the Tax Collector in the
Pool. This amount, $23,109,797, is currently invested in both Pool A ($19,295,814) and Pool B
($3,813,982) under the Board of County Commissioners' name.
Currently, Pool A participants may withdraw 37% of their balance or $4 million, whichever is greater,
without penalty. Withdrawals from Pool A in excess of the above limit are subject to a 2% redemption
fee. New investments in Pool A are not subject to the redemption fee or withdrawal restrictions. Future
withdrawal provisions from Pool A will be subject to further evaluation based on the maturities of existing
investments and the liquidity requirements of the Pool. On December 21, 2007, Standard and Poor's
Ratings Services assigned its "AAAM" principal stability fund rating to Pool A.
a. Currently, Pool B participants are permitted to withdraw scheduled amounts from the Pool as market
valuations of the assets held in Pool B become available. In addition, full realization of the principal value
of Pool B assets is not readily determinable.
�. As of March 5, 2008, the Board of County Commissioners had $14,343,705 in Pool A and $2,735,906 in
Pool B.
Additional information regarding the Local Government Surplus Funds Trust Fund may be obtained from
the State Board of Administration.
B. Florida Department of Transportation Locally Funded Agreement
On January 15, 2008, the County entered into a locally funded agreement with the Florida Department of
Transportation (FDOT) to advance the 6-laning of State Road 60 from 82nd Avenue to 66th Avenue
(Segment One). The agreement obligates the County to pay $34,669,601 to the FDOT in three
installments: $3,466,960 in February 2008, $13,867,840 in March 2008, and $17,334,801 in May 2008.
The FDOT will then begin the 6 -lane road construction. The FDOT will reimburse the County in eight
quarterly installments over a two-year period beginning no sooner than July 2009. Repayments to the
County will include principal and any accrued interest.
0
Indian River County, Florida
Board of County Commissioners
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 19 — SUBSEQUENT EVENTS - Continued
C. Amendment 1
On January 29, 2008, the Florida electorate approved an amendment to the Florida Constitution relative to
property taxation. This amendment (referred to as Amendment 1) was placed on the ballot by the Florida
Legislature at a special session held in October 2007. With respect to homestead property, Amendment 1
increases the current $25,000 homestead exemption by another $25,000 (for property values between
$50,000 - $75,000), except for school district taxes. Since the new $25,000 homestead exemption does
not apply to school district taxes, this effectively amounts to a $15,000 increase to the existing homestead
exemption, resulting in an estimated annual savings of $240 for an average homeowner.
Amendment 1 also allows property owners to transfer (make portable) up to $500,000 of their Save Our
Homes benefits to their next homestead when they move. Save Our Homes became effective in 1995
and limits (caps) the annual increase in assessed value for homestead property to three percent (3%) or the
percentage change in the Consumer Price Index, whichever is less.
With respect to non -homestead property, Amendment 1 limits (caps) the annual increase in assessed value
for non -homestead property (businesses, industrial property, rental property, second homes, etc.) to ten
percent (10%), except for school district taxes. The Amendment also provides a $25,000 exemption for
tangible personal property.
Amendment 1 becomes effective on October 1, 2008, with the exception of the ten percent (10%)
assessment cap on non -homestead property, which becomes effective on January 1, 2009.
Based on information received from the Indian River County Property Appraiser's Office, the estimated
annual loss of property tax revenues for our County from the additional homestead exemption and the
$25,000 exemption for tangible personal property is approximately $5.7 million. At present, there is no
accurate way to determine the impact of the portability and assessment cap on non -homestead property
provisions in terms of potential loss of property tax revenues.
.,
..
id
Harris, Cotherman,
' Jones, Price & Associates
u Certificd Public Accountant. - Chartered
5070 North Highway AIA, Suite 250
Vero Beach, FL 32963
Tel 772-234-8484
Fax 772-234-8488
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
The Honorable Board of County Commissioners
Indian River County, Florida
�. We have audited the basic financial statements of Indian River County, Florida including the fund financial
statements of the Board of County Commissioners (the "Board"), as of and for the year ended September 30, 2007,
and issued our report thereon dated March 5, 2008. 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.
Internal Control over Financial Reporting
In planning and performing our audit, we considered the Board's internal control over financial reporting as a basis
for designing our auditing procedures 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 over financial reporting.
Accordingly, we do not express an opinion on the effectiveness of the Board's internal control over financial
reporting.
A control deficiency 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 misstatements on a timely basis. A
significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the
Board's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally
accepted accounting principles such that there is more than a remote likelihood that a misstatement of the financial
statements will not be prevented or detected by the Board's internal control.
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than
a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the
Board's internal control.
Our consideration of the internal control over financial reporting was for the limited purpose described in the first
paragraph of this section and would not necessarily identify all deficiencies in internal control that might be
significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over
financial reporting that we consider to be material weaknesses, as defined above.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Board's fund financial statements are free of material
misstatement, we performed tests of its compliance with certain provisions of laws, regulations, grant agreements
W and contracts, noncompliance with which could have a direct and material effect on the determination of financial
statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our
audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of
noncompliance or other matters that are required to be reported under Government Auditing Standards.
"Providing Vision and Direction to our Clients"
Member AICPA Member AICPA Division For CPA Firms Member F1CPA
Private Companies Practice Section
0*0il
Harris, Cotherman,
Jones, Price & Associates
Certified Public Accountants - Chartered
The Honorable Board of County Commissioners
Indian River County, Florida
Page two
This report is intended solely for the information and use of the Board of County Commissioners, management, and
the Auditor General of the State of Florida and is not intended to be and should not be used by anyone other than
these specified parties..
C&
Vero B�lorida
March 5, 2008
288
Harris, Cotherman,
Jones, Price & Associates
Certified Public Accnunrmts - Chartered
5070 North Highway AIA, Suite 250
Vero Beach, FL 32963
Tel 772-234-8484
Fax 772-234-8488
Management Comments
The Honorable Board of County Commissioners
Indian River County, Florida
We have audited the basic financial statements of Indian River County, Florida, including the individual
fund financial statements of the Board of County Commissioners, as of and for the year ended September
30, 2007, and have issued our report thereon dated March 5, 2008. We conducted our audit in accordance
with United States generally accepted auditing standards; the standards applicable to financial audits
contained in Government Auditing Standards issued by the Comptroller General of the United States; and
OMB Circular A-133, Audits of States, Local Governments, and Non -Profit Organizations. We have
issued our Independent Auditors' Report on Compliance and Internal Control over Financial Reporting,
Independent Auditors' Report on Compliance and Internal Control over Compliance Applicable to each
Major Federal Program and State Project, and Schedule of Findings and Questioned Costs, Disclosures In
those reports and schedule, which are dated March 5, 2008, should be considered in conjunction with this
AW management letter.
Additionally, our audit was conducted in accordance with Chapter 10.550, Rules of the Auditor General,
which govern the conduct of local government entity audits performed in the State of Florida and require
that certain items be addressed in this letter.
In accordance with the Rules of the Auditor General (Section 10.554(1)(01.), we have noted that all
findings and recommendations made in the preceding annual financial audit have been resolved to our
satisfaction.
As required by the Rules of the Auditor General (Section 10.554(1)(i)2.), the scope of our audit included a
review of the provisions of Section 218.415, Florida Statutes, regarding the investment of public funds.
In connection with our audit, we determined that the Board of County Commissioners complied with
Section 218.415, Florida Statutes.
The Rules of the Auditor General (Section 10.554(1)(i)3.), require that we submit recommendations
designed to help the Board of County Commissioners improve the internal control structure and achieve
operational efficiencies. In connection with our audit, we did not have any such recommendations.
The Rules of the Auditor General (Section 10.554(1)(1)4.) require that we address violations of provisions
of contracts and grant agreements or abuse that have an effect on the financial statements that is less than
material but more than inconsequential. In connection with our audit, we did not have any such findings.
"Providing Vision and Direction to our Clients"
Member AICPA Member AICPA Division For CPA Firms Member FICPA
Private Companies Practice Section
O
Harris, Cotherman,
Jones, Price & Associates
Certified Public Accountants • Chartered
The Honorable Board of County Commissioners
Indian River County, Florida
Page two
The Rules of the Auditor General (Section 10.554(1)(i)5.) require disclosure in the management letter of
the following matters if not already addressed in the auditor's reports on compliance and internal controls
or schedule of findings and questioned costs: (1) violations of laws, rules, regulations, and contractual
provisions that have occurred, or are likely to have occurred; (2) improper or illegal expenditures; (3)
control deficiencies that are not significant deficiencies including but not limited to (a) improper or
inadequate accounting procedures; (b) failures to properly record financial transactions; and (c) other
P
naccuracies, shortages, defalcations, and instances of fraud discovered by, or that come to the attention
of, the auditor. There were no such matters noted during the current year.
The Rules of the Auditor General (Section 10.554(1)(i)6.) require 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 disclosure has been
included in the notes to the financial statements.
This report is intended for the information of management, the Board of County Commissioners, and the
Auditor General of the State of Florida, and is not intended to be and should not be used by anyone other
than these specified parties.
��G:.t1uv aii7,v - �iat�eer.�-
Vero B ch, Florida
March 5, 2008
290
cm
m
291
Harris, Cotherman,
Jones, Price & Associates
Certified Public Accountants - Chartered
5070 North Highway AIA, Suite 250
Vero Beach, FL 32963
Tel 772.234-8484
Fax 772-234-8488
Report on Special Purpose Financial Statements Prepared in Compliance with a
Regulatory Provision That Results in an Incomplete Presentation But One That is
Otherwise in Conformity with Generally Accepted Accounting Principles
The Honorable Jeffrey K. Barton
Clerk of the Circuit Court
Indian River County, Florida
We have audited the accompanying fund financial statements of Indian River County, Florida Clerk of the
Circuit Court as of and for the fiscal year ended September 30, 2007, as listed in the table of contents.
These financial statements are the responsibility of the Clerk of the Circuit Court's management. Our
responsibility is to express an opinion on the financial statements based on our audit.
E3
We conducted our audit in accordance with U.S. generally accepted auditing standards 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 fund financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the fund
financial statements. An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial statement presentation. We
believe that our audit provides a reasonable basis for our opinion.
As described in Note 1, the accompanying fund financial statements referred to above present the
financial position of only the Clerk of the Circuit Court at September 30, 2007, and the results of its
operations for the year then ended. These statements are not intended to be a complete presentation of the
financial position of Indian River County.
In our opinion, the fund financial statements referred to above present fairly, in all material respects, the
financial position of the Clerk of the Circuit Court as of September 30, 2007, and the results of its
operations for the year then ended in conformity with U.S. generally accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued a report dated March 5, 2008 on
our consideration of the Clerk of the Circuit Court's internal control over financial reporting and on our
tests of compliance with certain provisions of laws, regulations, contracts, and grant agreements.
This report is intended solely for the information and use of management, the Clerk of the Circuit Court,
Indian River County, the Auditor General of the State of Florida, and applicable federal and state
agencies, and is not intended to be and should not be used by anyone other than these specified parties.
W.
� I awn I�n�.c , "• `"C`�`�^�- �
Vero Beach, Florida
March 5, 2008
"Providing Vision and Direction to our Clients"
Member AICPA Member AICPA Division For CPA Firms Member FICPA
Private Companies Practice Section
292
di�.
Indian River County, Florida
Clerk of the Circuit Court
ASSETS
Cash and cash equivalents
Accounts receivable
Prepaid expenses
Due from other funds
Due from other governments
Total assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Due to other funds
Due to other governments
Other deposits held in escrow
Total liabilities
Fund Balances:
Unreserved
Total fund balances
Total liabilities and fund balances
0
Balance Sheet
Governmental Funds
September 30, 2007
Total
Special Revenue Governmental
General Fund Funds
$ 1,503,064 $ 3,102,274 $ 45605,338
63,758 325 645083
21,616 - 21,616
125435 12,435
20,807 - 205807
$ 1,6091245 $ 3,115,034 $ 45724,279
$ 189,494 $ 15427 $ 190,921
125435 - 121435
11036,723 - 15036,723
370,593 - 370,593
13609,245 11427 1,610,672
3,113,607 3,113,607
351139607 3,113,607
$ 15609,245 $ 3,115,034 $ 41724,279
The accompanying notes are an integral part of the financial statements.
293
Indian River County, Florida
Clerk of the Circuit Court
Statement of Revenues, Expenditures, and Changes in Fund Balance
Governmental Funds
For the Year Ended September 30, 2007
Total
Special Revenue Governmental
General Fund Funds
REVENUES
Charges for services $ 4,2975997 $ 634,273 $ 459325270
Fines and forfeitures 1,669,418 - 11669,418
Interest 364,039 140,238 504,277
Miscellaneous 329,112 - 3297112
Total revenues 61660,566 774,511 7,435,077
EXPENDITURES
General government 29713,932 58,727 2,772,659
Court related 3,8425729 - 3,842,729
Total expenditures 6,556,661 58,727 65615,388
Excess of revenues over
(under) expenditures 103,905 715,784 819,689
OTHER FINANCING SOURCES (USES)
Transfers from Board of County Commissioners 1,195,812 - 15195,812
Transfers to Board of County Commissioners (3985757) (398,757)
Transfer to other governments (900,960) - (900,960)
Total other financing sources (uses) (1033905) - (103,905)
Net change in fund balances - 715,784 715,784
Fund balances at beginning of year - 25397,823 2,3975823
Fund balances at end of year
$ - $ 351135607 $ 3,113,607
M
13
The accompanying notes are an integral part of the financial statements. N
294
i
M
n
Indian River County, Florida
Clerk of the Circuit Court
Statement of Revenues, Expenditures, and
Changes in Fund Balances - Budget and Actual
General Fund
For the Year Ended September 30, 2007
REVENUES
Charges for services
Fines and forfeitures
• Interest
Miscellaneous
Total revenues
EXPENDITURES
General government
Court related
Total expenditures
Excess of revenues over
(under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers from Board
of County Commissioners
Transfers to Board
of County Commissioners
Transfers to other governments
Total other financing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
Budgeted Amount
Original Final
$ 43037,500 $
1,270,400
215,000
329,114
5,852,014
3,007,656
3,890,170
6,897,826
(15045,812)
1,195,812
(150,000)
1,045,812
4,037,499
1,270,400
215,001
329,114
5,852,014
2,849,662
4,048,164
6,897,826
(11045,812)
1,195,812
(150,000)
1,045,812
Actual
$ 4,2975997
1,669,418
364,039
329,112
6,660,566
2,713,932
3,842,729
6,556,661
103.905
1,195,812
(398,757)
(900,960)
(103,905)
The accompanying notes are an integral part of the financial statements.
295
Variance with
Final Budget -
Positive
(Negative)
$ 260,498
399,018
149,038
(2)
808,552
135,730
205,435
341,165
1.149.717
(248,757)
(900,960)
(11149,717)
Indian River County, Florida
Clerk of the Circuit Court
Statement of Fiduciary Net Assets
Agency Fund
September 30, 2007
ASSETS
Cash and cash equivalents
Total assets
LIABILITIES
Due to other governments
Escrow deposits
Total liabilities
$ 25153,198
$ 2,153,198
$ 830,270
1,322,928
$ 2,153,198
The accompanying notes are an integral part of the financial statements.
M
Indian River County, Florida
Clerk of the Circuit Court
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
we
The Clerk of the Circuit Court is a County agency and a local governmental entity pursuant to Article
VIII, Section I (d) of the Constitution of the State of Florida. For financial statement and reporting
"g purposes, the Clerk of the Circuit Court does not meet the definition of a legally separate organization
and is not considered to be a component unit. The Clerk of the Circuit Court 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 Clerk of the Circuit Court only. The format of the Clerk of the Circuit
Court'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 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 Clerk of the Circuit Court which is not
accounted for in another fund. All general operating revenues, which are not restricted or designated as
to use by outside sources, are recorded in the General Fund. The governmental fund measurement focus
is based upon determination of financial position and changes in financial position (sources, uses and
balances of financial resources) rather than upon net income determination.
Special Revenue Fund — The Special Revenue Fund accounts for the proceeds from recording fees to be
used for modernizing the Clerk of the Circuit Court's public records systems and the computer usage fee
for access to public records.
Fiduciary Fund
A. Agency Fund — The Agency Fund is used to account for assets held by the Clerk of the Circuit Court in
a trustee capacity or as an agent. These funds cannot be used to support the Clerk's own program.
Be Basis of Accounting, Measurement Focus and Presentation
The accounts of the governmental funds are maintained on the modified accrual basis. Under the
modified accrual basis, expenditures are recorded at the time liabilities are incurred. Revenues are
recorded when received in cash or when they are considered both measurable and available. 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.
297
Indian River County, Florida
Clerk of the Circuit Court
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
C. Budgetary Requirements
State statutes require the Clerk of the Circuit Court to prepare his budget in two parts: the budget
relating to the state court system, including recording; 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, including recording
is prepared and adopted by the Clerk prior to September 1. The budget relating to the requirements of
the Clerk as Clerk to the Board of County Commissioners is prepared prior to June 1 and is reviewed,
modified if required, and approved by the Board. 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. Clerk approval is only required when
unanticipated revenues are received that management wishes to have appropriated, thereby increasing
the total appropriations of a fund.
D. Cash and Cash Equivalents
Cash and cash equivalents include deposits and all highly liquid investments with maturities of ninety
days or less when purchased.
E. Prepaid Expenses
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 of the Circuit Court 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 of the Circuit Court accrues a liability for employees' rights to receive compensation for
future absences when certain conditions are met. The Clerk of the Circuit Court does not, nor is he
legally required to, accumulate expendable available financial resources to liquidate this obligation.
Accordingly, the liability for compensated absences is not reported on the Clerk of the Circuit Court
financial statements. Additional information on the liability is reflected in subsequent Note 5.
298
0
Indian River County, Florida
Clerk of the Circuit Court
Notes To Financial Statements
Year Ended September 30, 2007
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
H. 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. These "excess fees" totaled
$398,757 and are reported as a transfer to the Board of County Commissioners at year-end. Court -
related revenues in excess of expenditures at year-end were $900,960 and are reported as a transfer to
other governments. This amount is due to the Florida Department of Revenue before January 1. The
difference between the total transfer -to amount of $1,299,717 reported on the Statement of Revenues,
Expenditures and Changes in Fund Balance and the amount reported as Due to other governments on the
Balance Sheet $1,036,723, is the advance payment of $275,429 to the Florida Clerk of Court Operations
Corporation reduced by $12,435, which is due from the Board of County Commissioners and included
in the total Due from other governments reported on the Balance Sheet.
NOTE 2 - CASH AND INVESTMENTS
A. Deposits
At September 30, 2007, the carrying value of the Clerk's deposit was $4,457,154, and the bank balance
was $4,620,497. 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 adopted the Board of County Commissioners' investment policy. This policy requires
the Clerk's office to follow the above state law (governing custodial credit risk) for cash deposits. Refer
to the County -wide Note 4, Cash and Cash Equivalents, for definition of custodial credit risk.
B. Investments
At September 30, 2007, the Clerk had $1,195,184 in investments with the Local Government Surplus
Funds Trust Fund and $1,104,398 in investments with the Florida Local Government Investment Trust
Fund. These State authorized pools are specifically permitted in the Clerk's investment policy and in
Section 218.415 (18), Florida Statutes. This statute, the County -wide investment policy, and credit risks
are explained in Note 4 of the County -wide financial statements. The Local Government Surplus Trust
Fund Investment Pool was unrated as of September 30, 2007. Refer to Note 6 — Subsequent Events for
an update on the State Board of Administration's Local Government Surplus Trust Fund. The Florida
Local Government Investment Trust Fund had a AAA credit rating at September 30, 2007.
. 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 Administration. The FRS is noncontributory for all members; the employer makes all contributions.
299
0
Indian River County, Florida
Clerk of the Circuit Court
Notes To Financial Statements
Year Ended September 30, 2007
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). The Pension Plan provides for vesting of benefits after six years of
creditable service. Normal retirement benefits are available to employees who retire at or after age 62
with six or more years of service. Early retirement is available after six years of service with a five
percent reduction in benefits for each year prior to the 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 and there is no "normal retirement 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.
Retirement benefits are based on age, average compensation, and years -of -service credit where average
compensation is computed as the average of an individual's five highest years of earnings. For further
information concerning the Florida Retirement System and contribution rates, please read the County-
wide note on the Florida Retirement System.
Contributions to the FRS for the fiscal year ended September 30, 2007, were equal to 9.44% of the
annual covered payroll. Contributions to the FRS for the fiscal years ended September 30, 2005, 2006,
2007 were $256,965, $316,964, and $396,856 respectively. These amounts are equal to 100% of the
required contribution for each year.
NOTE 4 — 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 of the Circuit Court
participated in the County's self-insurance program during fiscal year 2007 at an annual cost of
approximately $784,145. Further details of this self-insurance program are discussed in the risk
management note in the County wide financial statements.
NOTE 5 — LONG-TERM LIABILITIES
Changes in Long -Term Liabilities
The following is a schedule of changes in long-term liabilities as of September 30, 2007:
Beginning
Balance
10/01/06
Additions
Accrued Compensated Absences 193 719 304 620
300
Deletions
Ending
Balance
9/30/07
$212-2;-6 8 1
En
ri
Im
Indian River County, Florida
Clerk of the Circuit Court
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 5 — LONG-TERM LIABILITIES - Continued
Changes in Long -Term Liabilities - Continued
Of the $212,681 liability for accrued compensated absences, management estimates that $30,000 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.
NOTE 6 —SUBSEQUENT EVENTS
As discussed in Note 2, at September 30, 2007, the Clerk of the Circuit Court had $1,195,184 invested
in the State Board of Administration's Local Government Surplus Funds Trust Fund Investment Pool
(Pool).
On November 29, 2007, the State Board of Administration implemented a temporary freeze on the
assets held in the Pool due to an unprecedented amount of withdrawals from the Fund coupled with the
absence of market liquidity for certain securities within the Pool. The significant amount of withdrawals
followed reports that the Pool held asset-backed commercial paper that was subject to sub prime
mortgage risk. On December 4, 2007, based on recommendations from an outside financial advisor, the
State Board of Administration restructured the Pool into two separate pools. Pool A consisted of all
money market appropriate assets, which was approximately $12 billion or 86% of Pool assets. Pool B
consisted of assets that defaulted on a payment, paid more slowly than expected, and/or had any
significant credit and liquidity risk, which was approximately $2 billion or 14% of Pool assets. At the
time of the restructuring, all current pool participants had their existing balances proportionately
allocated into Pool A and Pool B. For the Clerk of the Circuit Court, the existing balance on November
29, 2007 of $1,066,690 was allocated as follows: $913,254 into Pool A and $153,436 into Pool B.
Currently, Pool A participants may withdraw 37% of their balance or $4 million, whichever is greater,
without penalty. Withdrawals from Pool A in excess of the above limit are subject to a 2% redemption
fee. As permitted, the Clerk of the Circuit withdrew the entire $913,254 from Pool A on December 7,
2007. New investments in Pool A are not subject to the redemption fee or withdrawal restrictions.
Future withdrawal provisions from Pool A will be subject to further evaluation based on the maturities
of existing investments and the liquidity requirements of the Pool. On December 21, 2007, Standard
and Poor's Ratings Services assigned its "ARAM" principal stability fund rating to Pool A.
Currently, Pool B participants are permitted to withdraw scheduled amounts from the Pool as market
valuations of the assets held in Pool B become available. In addition, full realization of the principal
value of Pool B assets is not readily determinable.
As of March 5, 2008, the Clerk of the Circuit Court had $0 in Pool A and $110,065 in Pool B.
Additional information regarding the Local Government Surplus Funds Trust Fund may be obtained
from the State Board of Administration.
301
Harris, Cotherman,
Jones, Price & Associates
Certified Public Accountants - Chartered
5070 North Highway AIA, Suite 250
Vero Beach, FL 32963
Tel 772-234-8484
Fax 772-234-8488
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
The Honorable Jeffery K. Barton
Clerk of the Circuit Court
Indian River County, Florida
We have audited the financial statements of Indian River County, Florida including the fund financial statements of
the Clerk of the Circuit Court, as of and for the year ended September 30, 2007, and issued our report thereon dated
March 5, 2008. 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.
Internal Control over Financial Reporting
In planning and performing our audit, we considered the Clerk of the Circuit Court's internal control over financial
reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the Clerk of the Circuit Court's
internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the
Clerk of the Circuit Court's internal control over financial reporting.
A control deficiency exists when the design or operation of a control does not allow management or employees, in
the normal course of performing the assigned function, to prevent or detect misstatements on a timely basis. A
significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the
entity's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally
accepted accounting principles such that there is more than a remote likelihood that a misstatement of the entity's
financial statements that is more than inconsequential will not be prevented or detected by the entity's internal
control.
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in a more
than remote likelihood that a material misstatement of the financial statements will not be prevented or detected by
the entity's internal control.
Our consideration of internal control over financial reporting was for the limited purpose described in the first
paragraph of this section and would not necessarily identify all deficiencies in internal control that might be
significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over
financial reporting that we consider to be material weaknesses, as defined above.
"Provodmg Vision and Direction to our Clients"
Member AICPA Member AICPA Division For CPA Firms Member FICPA
Private Companies Practice Section
302
o Harris, Cotherman,
Jones, Price & Associates
Certified Public Accountants - Chartered
The Honorable Jeffery K. Barton
Clerk of the Circuit Court
Page two
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Clerk of the Circuit Court's financial statements are
free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on the
determination of financial statement amounts. However, providing an opinion on compliance with those provisions
was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests
disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards.
This report is intended solely for the information and use of management, the Clerk of the Circuit Court, Indian
River County, the Auditor General of the State of Florida, and applicable federal and state agencies, and is not
intended to be and should not be used by anyone other than these specified parties.
Vero Beach, Florida
March 5, 2008
0
303
Harris, Cotherman,
Jones, Price & Associates
Ccrtificd Public Aecuuntant� - 0iiirtcred
5070 North Highway AIA, Suite 250
Vero Beach, FL 32963
Tel 772-234-8484
Fax 772-234-8488
Management Letter
The Honorable Jeffrey K. Barton
Clerk of the Circuit Court
Indian River County, Florida
We have audited the financial statements of Indian River County, Florida, including the fund financial
statements of the Clerk of the Circuit Court, as of and for the year ended September 30, 2007, and have
I
ssued our report thereon dated March 5, 2008.
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. We have issued our 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 dated March 5, 2008, which
should be considered in conjunction with this management letter.
Additionally, our audit was conducted in accordance with the provisions of Chapter 10.550, Rules of the
Auditor General, which govern the conduct of local governmental entity audits performed in the State of
Florida and, unless otherwise required to be reported in the report on compliance and internal controls or
schedule of findings and questioned costs, this letter is required to include the following information.
Section 10.554(1)(i)l., Rules of the Auditor General, requires that we determine whether or not corrective
actions have been taken to address significant findings and recommendations made in the preceding
annual financial audit report. There were no recommendations made in the preceding audit report.
Section 10.554(1)(i)2., Rules of the Auditor General, requires our audit to include a review of the
provisions of Section 218.415, Florida Statutes, regarding the investment of public funds. In connection
with our audit, we determined that the Clerk of the Circuit Court, Indian River County, Florida, complied
with Section 218.415, Florida Statutes.
Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address in the management letter
any recommendations to improve financial management, accounting procedures, and internal controls. In
connection with our audit, we did not have any such recommendations.
Section 10.554(1)(1)4., Rules of the Auditor General, requires that we address violations of provisions of
contracts and grant agreements or abuse that have an effect on the financial statements that is less than
material but more than inconsequential. In connection with our audit, we did not have any such findings.
"Providing Vision and Direction to our Clients"
Member AICPA Member AICPA Division For CPA Firms Member FICPA
Private Companies Practice Section
ki[old I
,W
W
0
Harris, Cotherman,
Jones, Price & Associates
Certified Public Accountants - Chartered
The Honorable Jeffrey K. Barton
Clerk of the Circuit Court
Page two
Section 10.554(1)(i)5., Rules of the Auditor General, requires, based on professional judgment, the
reporting of the following matters that are inconsequential to the financial statements, considering both
quantitative and qualitative factors: (1) violations of laws, rules, regulations, and contractual provisions
or abuse that have occurred, or were likely to have occurred and would have an immaterial effect on the
financial statements; (2) improper expenditures or illegal acts that would have an immaterial effect on the
financial statements; (3) control deficiencies that are not significant deficiencies, including but not limited
to: (a) improper or inadequate accounting procedures (e.g., the omission of required disclosures from the
financial statements); (b) failures to properly record financial transactions; and (c) other inaccuracies,
shortages, defalcations, and instances of fraud discovered by, or that come to the attention of, the auditors.
In connection with our audit, we did not have any such findings.
Section 10.554(l)(1)6., 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.
Section 10.554(1)(i)8., Rules of the Auditor General, requires a statement as to whether or not the Clerk
of the Circuit Court complied with Section 28.35, Florida Statutes, regarding the budget and performance
standards certified by the Florida Clerk of Courts Operations Corporation. In connection with our audit,
we determined that the Clerk of the Circuit Court complied with the budget and performance standards
pursuant to Section 28.35, Florida Statutes.
This management letter is intended solely for the information of Indian River County and management,
the Clerk of the Circuit Court, Indian River County, the Auditor General of the State of Florida, and
applicable federal and state agencies, and is not intended to be and should not be used by anyone other
than these specified parties.
Vero Beach, Florida
March 5, 2008
305
,"
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mk
lit
306
Yz
,A
PROPERTY APPRAISER
30'/
Harris, Cotherman,
Jones, Price & Associates
Cerrificil Public Accountants - Ch,irtered
5070 North Highway AlA, Suite 250
Vero Beach, FL 32963
Tel 772.234-8484
Fax 772-234-8488
Report on Special Purpose Financial Statements Prepared in Compliance with a
Regulatory Provision That Results in an Incomplete Presentation But One That is
Otherwise in Conformity with Generally Accepted Accounting Principles
The Honorable David C. Nolte
Property Appraiser
Indian River County, Florida
We have audited the accompanying fund financial statements of Indian River County, Florida Property
Appraiser as of and for the fiscal year ended September 30, 2007, as listed in the table of contents. These
financial statements are the responsibility of the Property Appraiser's management. Our responsibility is
to express an opinion on the financial statements based on our audit.
We conducted our audit in accordance with U.S. generally accepted auditing standards 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 fund financial statements are free of material misstatement. An `"k
audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the fund
financial statements. An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial statement presentation. We oM0,
believe that our audit provides a reasonable basis for our opinion.
As described in Note 1, the accompanying fund financial statements referred to above present the
financial position of only the Property Appraiser at September 30, 2007, and the results of its operations
for the year then ended. These statements are not intended to be a complete presentation of the financial
position of Indian River County.
Aft
In our opinion, the fund financial statements referred to above present fairly, in all material respects, the
financial position of the Property Appraiser as of September 30, 2007, and the results of its operations for
the year then ended in conformity with U.S. generally accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued a report dated March 5, 2008 on
our consideration of the Property Appraiser's internal control over financial reporting and on our tests of
��
compliance with certain provisions of laws, regulations, contracts, and grant agreements.
This report is intended solely for the information and use of management, the Property Appraiser, Indian
River County, the Auditor General of the State of Florida, and applicable federal and state agencies, and .k
is not intended to be and should not be used by anyone other than these specified parties.
Vero Beach, Florida
March 5, 2008
`Providing Vision and Direction to our Clients"
Member AICPA Member AICPA Division For CPA Firms Member FICPA
Private Companies Practice Section
WHO
0
0
a
Indian River County, Florida
Property Appraiser
Balance Sheet
General Fund
September 30, 2007
ASSETS
Cash and cash equivalents
Accounts receivable
Total assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Due to other governments
Deposits
Total liabilities
Fund Balances:
Fund balance
Total fund balances
Total liabilities and fund balances
$ 56,319
10,153
$ 66,472
$ 42,927
5,438
18,107
66,472
$ 66,472
The accompanying notes are an integral part of the financial statements.
309
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, 2007
REVENUES
Charges for services
Interest
Total revenues
EXPENDITURES
General government
Debt service:
Principal
Interest
Total expenditures
Excess of revenues over
(under) expenditures
OTHER FINANCING USES
Excess fees to Board of
County Commissioners
Excess fees to other governments
Lease purchase proceeds
Total other financing uses
Budgeted Amount
Original Final
$ 410173659
4,017,659
4,017,659
4,017,659
$ 3,770,544 $
3,770,544
3,767,561
255,876
11,574
4,035,011
Actual
3,770,627
1,472
3,772,099
3,763,678
255,876
11,574
4,031,128
(264,467) (259,029)
264,467
264,467
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
(4,968)
(470)
264,467
259,029
The accompanying notes are an integral part of the financial statements.
310
Variance with
Final Budget -
Positive
(Negative)
$ 83
1,472
1,555
3,883
3,883
5,438
(4,968)
(470)
(5,438)
13
4}l
M
13
Indian River County, Florida
Property Appraiser
Notes To Financial Statements
' Year Ended September 30, 2007
NOTE I - 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
The accounting records are organized for reporting purposes on the basis of governmental 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 Property Appraiser. All general operating
revenues, which are not restricted or designated as to use by outside sources, are recorded in the General
Fund. The governmental fund measurement focus is based upon determination of financial position and
changes in financial position (sources, uses and balances of financial resources) rather than upon net
income determination.
B. Basis of Accounting, Measurement Focus and Presentation
The accounts of the governmental funds are maintained on the modified accrual basis. Under the
modified accrual basis, expenditures are recorded at the time liabilities are incurred. Revenues are
recorded when received in cash or when they are considered both measurable and available. Revenues
collected in excess of expenditures are not considered earned and are reflected as liabilities.
C. Budgetary Requirements
State statutes require the 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.
311
Indian River County, Florida �
Property Appraiser
Notes To Financial Statements
Year Ended September 30, 2007
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
D. Capital Assets
Acquisitions of equipment are recorded as expenditures at the time of purchase for governmental fund
financial statements. Tangible personal property used by the Property Appraiser in operations is reported
in the financial statements of the County. Refer to the County -wide note on capital assets for
capitalization threshold, depreciation methodology and useful lives.
E. Compensated Absences
The Property Appraiser accrues a liability for employees' rights to receive compensation for future
absences when certain conditions are met. The Property Appraiser does not, nor is he 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 5.
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 $5,438 and are
reported as transfers out. These transfers are also reflected as Due to other governments on the balance
sheet.
NOTE 2 - CASH
Deposits
At September 30, 2007, the carrying amount of the. Property Appraiser's deposits was $56,249 and the
bank balance was $378,907. 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 2, Cash and Investments, for definition of
custodial credit risk.
312,
Indian River County, Florida
Property Appraiser
Notes To Financial Statements
Year Ended September 30, 2007
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 Administration. The FRS is noncontributory for all members; all contributions
are made by the employer. Employees elect participation in either the defined benefit plan (Pension
Plan) or the defined contribution plan (Investment Plan). The Pension Plan provides for vesting of
benefits after six years of creditable service. Normal retirement benefits are available to employees who
" retire at or after age 62 with six or more years of service. Early retirement is available after six years of
service with a five percent reduction in benefits for each year prior to the 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 and there is no "normal retirement 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.
0
Retirement benefits are based on age, average compensation, and years -of -service credit where average
compensation is computed as the average of an individual's five highest years of earnings. For further
information concerning the Florida Retirement System and contribution rates, please read the County-
wide note on the Florida Retirement System.
Contributions to the FRS for the fiscal year ended September 30, 2007, were equal to 10.45% of the
annual covered payroll. Contributions to the FRS for the fiscal years ended September 30, 2005, 2006,
2007 were $177,128, $206,358, and $249,037 respectively. These amounts are equal to 100% of the
required contribution for each year.
NOTE 4 — 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 2007 at an annual cost of approximately
$382,098.
313
r
Indian River County, Florida
Property Appraiser
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 5 — LONG-TERM LIABILITIES
A. Capital Leases
The following is a schedule of future minimum lease payments under capital leases, together with the
present value of the net minimum lease payments, as of September 30, 2007:
Fiscal year ending_ Amount
Total minimum lease payments due 2008 $ 8,710
Less: Amount representing interest 119
Present value of net minimum
lease payments 8 591
The following is an analysis of the leased property under capital leases:
Type of Property Capitalized Cost
Computer software and equipment $ 264,467
The equipment listed above is reported in the financial statements of the County. Monthly payments for ta
the computer equipment lease are made by the General Fund.
B. Changes in Long -Term Liabilities
A summary of changes in long-term liabilities is as follows:
Beginning Ending
Balance Balance
10/01/06 Additions Deletions 09/30/07
Accrued Compensated Absences $ 91,497 $ 119,874 $ 105,620 $ 1055751
Capital Leases - 264,467 255,876 8,591
91;497 384 341 $ 361 496 114;342
Of the $105,751 liability for accrued compensated absences, management estimates that $15,000 will be
due and payable within one year. The long-term liabilities are not reported in the financial statements of
the Property Appraiser since they are not payable from available spendable resources. They are reported
in the financial statements of the County.
314 &
Indian River County, Florida
Property Appraiser
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 6 — COMMITMENTS AND CONTINGENCIES
Litigation
Various suits and claims are currently pending against the Property Appraiser. It is impossible for the
Property Appraiser 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 Property
Appraiser 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 Property Appraiser.
315
v
Harris, Cotherman,
Jones, Price & Associates
Certified Public ACaOuntants - Chatmed
5070 North Highway AIA, Suite 250
Vero Beach, FL 32963
Tel 772-234-8484
Fax 772-234-8488
M
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
The Honorable David C. Nolte
Property Appraiser
Indian River County, Florida
We have audited the financial statements of Indian River County, Florida including the fund financial statements of
the Property Appraiser, as of and for the year ended September 30, 2007, and issued our report thereon dated March
55 2008. 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.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the Property Appraiser's internal control over financial
reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the Property Appraiser's internal
control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Property
Appraiser's internal control over financial reporting.
A control deficiency exists when the design or operation of a control does not allow management or employees, in
the normal course of performing the assigned function, to prevent or detect misstatements on a timely basis. A .�
significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the
entity's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally
accepted accounting principles such that there is more than a remote likelihood that a misstatement of the entity's
financial statements that is more than inconsequential will not be prevented or detected by the entity's internal
control.
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in a more
than remote likelihood that a material misstatement of the financial statements will not be prevented or detected by
the entity's internal control.
our consideration of internal control over financial reporting was for the limited purpose described in the first
paragraph of this section and would not necessarily identify all deficiencies in internal control that might be
significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over
financial reporting that we consider to be material weaknesses, as defined above.
`Providing Vision and Direction to our Clients"
Member AICPA Member AICPA Division For CPA Firms Member FICPA
Private Companies Practice Section
316 ,
m
o Harris, Cotherman,
Jones, Price & Associates
Certified Public Accountants - Chartered
The Honorable David C. Nolte
Property Appraiser
Page two
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Property Appraiser's financial statements are free of
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts,
and grant agreements, noncompliance with which could have a direct and material effect on the determination of
financial statement amounts. However, providing an opinion on 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 that are required to be reported under Government Auditing Standards.
This report is intended solely for the information and use of management, the Property Appraiser, Indian River
County, the Auditor General of the State of Florida, and applicable federal and state agencies, and is not intended to
be and should not be used by anyone other than these specified parties.
Vero Beach, Florida
March 5, 2008
317
n
Harris, Cotherman,
Jones, Price & Associates
Certified Public Accounranrs - Chartered
7070 North Highway AIA, Suite 250
Vero Beach, FL 32963
Tel 772.234-8484
Fax 772.234-8488
Management Letter
The Honorable David C. Nolte
Property Appraiser
Indian River County, Florida
We have audited the financial statements of Indian River County, Florida, including the fund financial
statements of the Property Appraiser, as of and for the year ended September 30, 2007, and have issued
our report thereon dated March 5, 2008.
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. We have issued our Report on Internal Control
Over Financial Reporting and on Compliance with Other Matters Based on an Audit of Financial
Statements Performed in Accordance with Government Auditing Standards dated March 5, 2008, which
should be considered in conjunction with this management letter.
Additionally, our audit was conducted in accordance with the provisions of Chapter 10.550, Rules of the
Auditor General, which govern the conduct of local governmental entity audits performed in the State of
Florida and, unless otherwise required to be reported in the report on compliance and internal controls or
schedules of findings and questioned costs, this letter is required to include the following information.
Section 10.554(1)(1)1.7 Rules of the Auditor General, requires that we determine whether or not corrective
actions have been taken to address significant findings and recommendations made in the preceding
annual financial audit report. There were no recommendations made in the preceding audit report.
Section 10.554(1)(i)2., Rules of the Auditor General, requires our audit to include a review of the
provisions of Section 218.415, Florida Statutes, regarding the investment of public funds. In connection
with our audit, we determined that the Property Appraiser, Indian River County, Florida, complied with
Section 218.415, Florida Statutes.
Section 10.554(1)(1)3., Rules of the Auditor General, requires that we address in the management letter
any recommendations to improve financial management, accounting procedures, and internal controls. In
connection with our audit, we did not have any such recommendations.
Section 10.554(1)(1)4., Rules of the Auditor General, requires that we address violations of provisions of
contracts and grant agreements or abuse that have an effect on the financial statements that is less than
material but more than inconsequential. In connection with our audit, we did not have any such findings.
"Providing Vision and Direction to our Clients"
Member AICPA Member AICPA Division For CPA Finns Member FICPA
Private Companies Practice Section
318 iw
Harris, Cotherman,
Jones, Price & Associates
Certified Public Accountants -Chartered
The Honorable David C. Nolte
Property Appraiser
Page two
Section 10.554(1)(i)5., Rules of the Auditor General, requires, based on professional judgment, the
reporting of the following matters that are inconsequential to the financial statements, considering both
quantitative and qualitative factors: (1) violations of laws, rules, regulations, and contractual provisions
that have occurred, or were likely to have occurred and would have an immaterial effect on the financial
statements; (2) improper expenditures or illegal acts that would have an immaterial effect on the financial
statements; (3) control deficiencies that are not significant deficiencies, including but not limited to: (a)
improper or inadequate accounting procedures (e.g., the omission of required disclosures from the
financial statements); (b) failures to properly record financial transactions; and (c) other inaccuracies,
shortages, defalcations, and instances of fraud discovered by, or that come to the attention of, the auditors.
In connection with our audit, we did not have any such findings.
Section 10.554(1)(i)6., 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.
This management letter is intended solely for the information of Indian River County and management,
the Property Appraiser, Indian River County, the Auditor General of the State of Florida, and applicable
federal and state agencies, and is not intended to be and should not be used by anyone other than these
specified parties.
,co- 1�
Vero Beach, Florida
March 5, 2008
319
320
m
SHERIFF
321
Harris, Cotherman,
Jones, Price & Associates
Certified Nbhc Accountants - Chartered
5070 North Highway AIA, Suite 250
Vero Beach, FL 32963
Tel 772.234-8484
Fax 772.234-8488
7M
Report on Special Purpose Financial Statements Prepared in Compliance with a
Regulatory Provision That Results in an Incomplete Presentation But One That is
Otherwise in Conformity with Generally Accepted Accounting Principles
The Honorable Roy Raymond
Sheriff
Indian River County, Florida
We have audited the accompanying fund financial statements of Indian River County, Florida Sheriff as
of and for the fiscal year ended September 30, 2007, as listed in the table of contents. These financial
statements are the responsibility of the Sheriffs management. Our responsibility is to express an opinion
on the financial statements based on our audit.
We conducted our audit in accordance with U.S. generally accepted auditing standards 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 fund financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the fund
financial statements. An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial statement presentation. We
believe that our audit provides a reasonable basis for our opinion.
As described in Note 1, the accompanying fund financial statements referred to above present the
financial position of only the Sheriff at September 30, 2007, and the results of its operations for the year
then ended. These statements are not intended to be a complete presentation of the financial position of
Indian River County.
In our opinion, the fund financial statements referred to above present fairly, in all material respects, the
financial position of the Sheriff as of September 30, 2007, and the results of its operations for the year
then ended in conformity with U.S. generally accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued a report dated March 5, 2008 on
our consideration of the Sheriff's internal control over financial reporting and on our tests of compliance
with certain provisions of laws, regulations, contracts, and grant agreements.
This report is intended solely for the information and use of management, the Sheriff, Indian River
County, the Auditor General of the State of Florida, and applicable federal and state agencies, and is not
intended to be and should not be used by anyone other than these specified parties.
Vero Beach, Florida
March 5, 2008
"Providing Vision and Direction to our Clients"
Member AICPA Member AICPA Division For CPA Firms Member FICPA
Private Companies Practice Section
322
Indian River County, Florida
Sheriff
Balance Sheet
Governmental Funds
September 30, 2007
ASSETS
Cash and cash equivalents
Accounts receivable - net
Total assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Due to other governments
Unearned revenue
Total liabilities
Fund Balances:
�. Unreserved
Total fund balances
El
Total liabilities and fund balances
Total
Special Governmental
General Revenue Funds
$ 21007,522
29,602
$ 21037,124
$ 11289,900
737,259
9,965
2,037,124
$ 2,037,124
$ 2,2345183
3,747
$ 212375930
$ 6,034
28,212
8,713
42,959
2,194, 971
2,194,971
$ 2,237,930
The accompanying notes are an integral part of the financial statements.
323
$ 4,241,705
33,349
$ 4,2751054
$ 1,2951934
765,471
18,678
2,080,083
2,194, 971
2,194,971
$ 41275,054
r
Indian River County, Florida
Sheriff
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended September 30, 2007
REVENUES
Intergovernmental
Charges for services
Fines and forfeitures
Miscellaneous
Total revenues
EXPENDITURES
Public safety
Court related
Total expenditures
Excess of revenues over
(under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers from Board of County Commissioners
Transfers to Board of County Commissioners
Total other financing sources
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
119
(40,562,268)
41,299,527
(737,259)
40,562,268
(469,050)
480,773
480,773
11,723
2,183,248
(41,0315318)
41,780,300
(737,259)
41,043,041
11,723
2,183,248
$ - $ 2,194,971 $ 2,194,971
The accompanying notes are an integral part of the financial statements.
324
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Total
Special
Governmental
General
Revenue
Funds
$ - $
1251058
$ 1255058 r
-
388,143
388,143
-
234,164
2345164
45,639
143,979
1891618
455639
891,344
9365983
38,903,910
15360,394
40,264,304
1,703,997
-
1,703,997
4007,907
113603394
413968,301
(40,562,268)
41,299,527
(737,259)
40,562,268
(469,050)
480,773
480,773
11,723
2,183,248
(41,0315318)
41,780,300
(737,259)
41,043,041
11,723
2,183,248
$ - $ 2,194,971 $ 2,194,971
The accompanying notes are an integral part of the financial statements.
324
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- 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, 2007
Variance with
Final Budget -
Budgeted Amount Positive
Original Final Actual (Negative)
REVENUES
Miscellaneous $ - $ 455639 $ 45,639 $ -
Total revenues - 455639 455639 -
EXPENDITURES
Public safety 40,473,690 391634,894 38,9037910 730,984
Court related 1,7661981 15710,272 11703,997 6,275
Total expenditures 42,240,671 41,345,166 4007,907 7373259
Excess of revenues over
(under) expenditures (42,2405671) (41,299,527) (401562,268) 737,259
OTHER FINANCING SOURCES (USES)
Transfers from Board
of County Commissioners 4252405671 415299,527 411299,527 -
Transfers to Board
of County Commissioners - - (737,259) (7375259)
Total other financing sources 42,240,671 415299,527 40,5625268 (737,259)
Net change in fund balances $ - $
Fund balances at beginning of year -
Fund balances at end of year
0
The accompanying notes are an integral part of the financial statements.
325
Indian River County, Florida
Sheriff
Statement of Fiduciary Net Assets
Agency Fund
September 30, 2007
ASSETS
Cash and cash equivalents
Total assets
LIABILITIES
Escrow deposits
Total liabilities
$ 132,105
$ 132,105
$ 132,105
$ 132,105
The accompanying notes are an integral part of the financial statements.
326
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Indian River County, Florida
Sheriff
Notes To Financial Statements
Year Ended September 30, 2007
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 and Account Groups
The accounting records are organized for reporting purposes on the basis of governmental funds and a
fiduciary fund.
Governmental Funds
General Fund — The General Fund, which is a governmental fund, is used to account for all revenues and
, expenditures applicable to the general operations of the Sheriff, which are not accounted for in another
fund. All general operating revenues, which are not restricted or designated as to use by outside sources,
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 or committed 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 as an agent. The
Agency Fund is custodial in nature and does not involve measurement of results of operations.
Beimb Basis of Accounting, Measurement Focus and Presentation
The accounts of the governmental funds are maintained on the modified accrual basis. The fiduciary
fund is reported on an accrual basis. Under the modified accrual basis, expenditures are recorded at the
time liabilities are incurred. Revenues are recorded when received in cash or when they are considered
both measurable and available. Revenues collected in excess of expenditures are not considered earned
eA, and are reflected as liabilities.
327
,0.
Indian River County, Florida
Sheriff
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
C. Budgetary Requirements
State statutes require the Sheriff to submit a proposed budget to the Board of County Commissioners by
May 1 of each year. The budget reflects the estimated amounts of all proposed expenditures for
operating and equipping the Sheriff's office and jail. Capital improvements for these buildings are
funded by the Board. The budget is prepared on a basis consistent with generally accepted accounting
principles. After review and approval of the budget by the Board, the Sheriff is authorized to transfer
budgeted amounts between objects and departments as long as he 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 he legally required to, accumulate expendable
available financial resources to liquidate this obligation. Accordingly, the liability for compensated
absences is not reported on the Sheriffs financial statements. Additional information on the liability is
reflected in subsequent Note 6.
E. 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. These "excess fees" totaled $737,259 and are reported as a transfer
to the Board of County Commissioners at year end.
NOTE 2 - CASH
Deposits
At September 30, 2007, the carrying amount of the Sheriffs deposits was $4,373,810, and the bank
balance was $5,333,174. 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 Sheriffs office elected not to adopt a formal investment policy and selects the alternative
investment guidelines as provided by Florida Statutes subsection 17, 218.415. Refer to the County -wide
Note 2, Cash and Investments, for the definition of custodial credit risk.
328
Indian River County, Florida
Sheriff
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 3 — CAPITAL ASSETS
Tangible personal property used by the Sheriff in operations is reported in the financial statements of the
County. State law requires the Sheriff to account for all tangible property used by the Sheriff. A
summary of changes in Capital Assets is as follows:
Beginning Ending
Balance Balance
10/01/06 Additions Deletions 09/30/07
Tangible Personal Property $ 135362,669 2,152,161 952;639 14,562,191
NOTE 4 — PENSION PLAN
Florida Retirement System
Plan Description: The Sheriffs employees participate in the Florida Retirement System (FRS), a cost-
sharing multiple -employer public employee retirement system, administered by the Florida Department
of Administration. The FRS is noncontributory for all members; all contributions are made by the
employer. Employees elect participation in either the defined benefit plan (Pension Plan) or the defined
contribution plan (Investment Plan). The Pension Plan provides for vesting of benefits after six years of
credible service. Normal retirement benefits are available to employees who retire at or after age 62 with
six or more years of service. For law enforcement and corrections officers, benefits are available at or
after age 55 with six or more years of service. Early retirement is available after six years of service with
a five percent reduction in benefits for each year prior to the 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 and there is no "normal retirement 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.
Retirement benefits are based on age, average compensation, and years -of -service credit where average
compensation is computed as the average of an individual's five highest years of earnings. For further
information concerning the Florida Retirement System and contribution rates, please read the County-
wide note on the Florida Retirement System.
Contributions to the FRS for the fiscal year ended September 30, 2007, were equal to 17.65% of the
annual covered payroll. Contributions to the FRS for the fiscal years ended September 30, 2005, 2006,
2007 were $2,924,205, $3,334,040, and $4,156,848 respectively. These amounts are equal to 100% of
the required contribution for each year.
329
Indian River County, Florida
Sheriff
Notes To Financial Statements
Year Ended September 30, 2007
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 Sheriff participated in the
County's self-insurance program during fiscal year 2007 at an annual cost of approximately $3,582,816.
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, 2007:
Beginning
Balance
10/01/06
Additions Deletions
Ending
Balance
09/30/07
Accrued Compensated Absences 1,644,906 $ 3,535,302 3.584.166 1,596,042
Of the $1,596,042 liability for accrued compensated absences, management estimates that $800,000 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
financial statements of the County.
NOTE 7 — OPERATING LEASES
The Sheriff has entered into noncancelable operating leases as lessee. Lease expenditures totaled
$116,773 for the year ended September 30, 2007.
The following is a schedule by years of minimum future rentals to be paid by the Sheriff for
noncancelable operating leases as of September 30:
Year Amount
2008 $ 100,219
2009 535798
2010 45,883
2011 213222
2012 10,928
Total Future Minimum Lease Payments 232;050
330
Indian River County, Florida
Sheriff
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 8 — 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.
331
E3
Harris, Cotherman,
Jones, Price & Associates
Certified Public Accountants - Chartered
5070 North Highway AlA, Suite 250
Vero Beach, FL 32963
Tel 772.234-8484
Fax 772.234.8488
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
The Honorable Roy Raymond
Sheriff
Indian River County, Florida
We have audited the financial statements of Indian River County, Florida including the fund financial statements of
the Sheriff, as of and for the year ended September 30, 2007, and issued our report thereon dated March 5, 2008.
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.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the Sheriff s internal control over financial reporting as a basis
for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not
for the purpose of expressing an opinion on the effectiveness of the Sheriff's internal control over financial
reporting. Accordingly, we do not express an opinion on the effectiveness of the Sheriffs internal control over
financial reporting.
A control deficiency exists when the design or operation of a control does not allow management or employees, in
the normal course of performing the assigned function, to prevent or detect misstatements on a timely basis. A
significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the
entity's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally
accepted accounting principles such that there is more than a remote likelihood that a misstatement of the entity's
financial statements that is more than inconsequential will not be prevented or detected by the entity's internal
control.
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in a more
than remote likelihood that a material misstatement of the financial statements will not be prevented or detected by
the entity's internal control.
Our consideration of internal control over financial reporting was for the limited purpose described in the first
paragraph of this section and would not necessarily identify all deficiencies in internal control that might be
significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over
financial reporting that we consider to be material weaknesses, as defined above.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Sheriffs financial statements are free of material
misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements, noncompliance with which could have a direct and material effect on the determination of financial
statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our
audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of
noncompliance that are required to be reported under Government Auditing Standards.
"Providing Vision and Direction to our Clients"
Member AICPA Member AICPA Division For CPA Firms Member FICPA
Private Companies Practice Section
332 o
0 Harris, Cotherman,
Jones, Price & Associates
Certified Public Accountants - Chartered
The Honorable Roy Raymond
Sheriff
Page two
This report is intended solely for the information and use of management, the Sheriff, Indian River County, the
Auditor General of the State of Florida, and applicable federal and state agencies, and is not intended to be and
should not be used by anyone other than these specified parties.
Vero Beach, Florida
March 5, 2008
a�
333
e
Harris, Cotherman,
Jones, Price & Associates
Certified Public Accountants - Chartered
5070 North Highway AIA, Suite 250
Vero Beach, FL 32963
Tel 772-234-8484
Fax 772-234.8488
a-
Management Letter
The Honorable Roy Raymond
Sheriff
Indian River County, Florida
We have audited the financial statements of Indian River County, Florida, including the fund financial
statements of the Sheriff, as of and for the year ended September 30, 2007, and have issued our report
thereon dated March 5, 2008.
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. We have issued our 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 dated March 5, 2008, which
should be considered in conjunction with this management letter.
Additionally, our audit was conducted in accordance with the provisions of Chapter 10.550, Rules of the
Auditor General, which govern the conduct of local governmental entity audits performed in the State of
Florida and, unless otherwise required to be reported in the report on compliance and internal controls or
schedule of findings and questioned costs, this letter is required to include the following information.
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 significant findings and recommendations made in the preceding
annual financial audit report. There were no recommendations made in the preceding audit report.
Section 10.554(1)(i)2., Rules of the Auditor General, requires our audit to include a review of the
provisions of Section 218.415, Florida Statutes, regarding the investment of public funds. In connection
with our audit, we determined that the Sheriff, Indian River County, Florida, complied with Section
218.415, Florida Statutes.
Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address in the management letter
any recommendations to improve financial management, accounting procedures, and internal controls. In
connection with our audit, we did not have any such recommendations.
Section 10.554(1)(1)4., Rules of the Auditor General, requires that we address violations of provisions of
contracts and grant agreements or abuse that have an effect on the financial statements that is less than
material but more than inconsequential. In connection with our audit, we did not have any such findings.
"Providing Vision and Direction to our Clients"
Member AICPA Member AICPA Division For CPA Firms Member FICPA
Private Companies Practice Section
334
�» o Harris, Cotherman,
Jones, Price & Associates
Certified Public Accountants - Chartered
0
The Honorable Roy Raymond
Sheriff
Page two
Section 10.554(1)(1)5., Rules of the Auditor General, requires, based on professional judgment, the
reporting of the following matters that are inconsequential to the financial statements, considering both
quantitative and qualitative factors: (1) violations of laws, rules, regulations, and contractual provisions
or abuse that have occurred, or were likely to have occurred and would have an immaterial effect on the
financial statements; (2) improper expenditures or illegal acts that would have an immaterial effect on the
financial statements; (3) control deficiencies that are not significant deficiencies, including but not limited
to: (a) improper or inadequate accounting procedures (e.g., the omission of required disclosures from the
financial statements); (b) failures to properly record financial transactions; and (c) other inaccuracies,
shortages, defalcations, and instances of fraud discovered by, or that come to the attention of, the auditors.
In connection with our audit, we did not have any such findings.
Section 10.554(1)(i)6., 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.
This management letter is intended solely for the information of Indian River County and management,
the Sheriff, Indian River County, the Auditor General of the State of Florida, and applicable federal and
state agencies, and is not intended to be and should not be used by anyone other than these specified
parties.
Vero Beach, Florida
March 5, 2008
M
335
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SUPERVISOR OF ELECTIONS
337
Harris, Cotherman,
Jones, Price & Associates
Certified Public Accountants - Chartered
5070 North Highway AIA, Suite 250
Vero Beach, FL 32963
Tel 772-234-8484
Fax 772.234-8488
Report on Special Purpose Financial Statements Prepared in Compliance with a
Regulatory Provision That Results in an Incomplete Presentation But One That is
Otherwise in Conformity with Generally Accepted Accounting Principles
The Honorable Kay Clem
Supervisor of Elections
Indian River County, Florida
We have audited the accompanying fund financial statements of Indian River County, Florida Supervisor
of Elections as of and for the fiscal year ended September 30, 2007, as listed in the table of contents.
These financial statements are the responsibility of the Supervisor of Elections' management. Our
responsibility is to express an opinion on the financial statements based on our audit.
We conducted our audit in accordance with U.S. generally accepted auditing standards 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 fund financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the fund
financial statements. An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial statement presentation. We
believe that our audit provides a reasonable basis for our opinion.
As described in Note 1, the accompanying fund financial statements referred to above present the
financial position of only the Supervisor of Elections at September 30, 2007, and the results of its
operations for the year then ended. These statements are not intended to be a complete presentation of the
financial position of Indian River County.
In our opinion, the fund financial statements referred to above present fairly, in all material respects, the
financial position of the Supervisor of Elections as of September 30, 2007, and the results of its
operations for the year then ended in conformity with U.S. generally accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued a report dated March 5, 2008 on
our consideration of the Supervisor of Elections' internal control over financial reporting and on our tests
of compliance with certain provisions of laws, regulations, contracts, and grant agreements.
This report is intended solely for the information and use of management, the Supervisor of Elections,
Indian River County, the Auditor General of the State of Florida, and applicable federal and state
agencies, and is not intended to be and should not be used by anyone other than these specified parties.
Ck
Vero Beach, Florida
March 5, 2008
In
In
'Providing Vision and Direction to our Clients"
Member AICPA Member AICPA Division For CPA Firms Member FICPA
Private Companies Practice Sectio"
338
Indian River County, Florida
Supervisor of Elections
Balance Sheet
Governmental Funds
September 30, 2007
Total
Special Governmental
General Revenue Funds
ASSETS
Cash and cash equivalents $ 12,708 $ 30,573 $ 43,281
Accounts receivable 21 - 21
Prepaid expenses 30,631 - 30,631
Total assets $ 43,360 $ 30,573 $ 735933
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ 29,744 $ - $ 29,744
Due to other governments 13,616 - 13,616
Unearned revenue - 261966 26,966
Total liabilities 435360 26,966 70,326
Fund Balances:
Fund balance - 35607 307
Total fund balances - 307 31607
�. Total liabilities and fund balances $ 43,360 $ 303573 $ 735933
The accompanying notes are an integral part of the financial statements.
339
Indian River County, Florida
Supervisor of Elections
Statement of Revenues, Expenditures, and Changes in Fund Balance
Governmental Funds
For the Year Ended September 30, 2007
Total
Special Governmental
General Revenue Funds
REVENUES
Intergovernmental $ 3,737 $ 19047 $ 45784
Charges for services 649800 - 64,800
Interest 11752 40 1,792
Total revenues 70,289 15087 719376
EXPENDITURES
General government 1,4365061 1,047 1,437,108
Total expenditures 15436,061 15047 11437,108
Excess of revenues over
(under) expenditures (1,365,772) 40 (1,3655732)
OTHER FINANCING SOURCES (USES)
Transfers from Board of County Commissioners 15382,955 - 1,382,955
Transfer from other funds - 3,567 3,567
Transfers to Board of County Commissioners (13,616) - (13,616)
Transfer to other funds (3,567) - (3,567)
Total other financing sources (uses) 1,365,772 3,567 1,369,339
Net change in fund balances - 307 3,607
Fund balances at beginning of year - - -"
Fund balances at end of year $ - $ 31607 $ 3,607
The accompanying notes are an integral part of the financial statements.
340
i
» 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, 2007
Variance with
Final Budget -
�' Budgeted Amount Positive
Original Final Actual (Negative)
REVENUES
Intergovernmental $ - $ 31737 $ 31737 $ -
Charges for services - 57,725 645800 7,075
Interest - - 1,752 1,752
Total revenues - 61,462 701289 81827
EXPENDITURES
General government - 11444,417 1,436,061 8,356
Total expenditures - 19444,417 114365061 81356
Excess of revenues over
(under) expenditures - (1,382,955) (1,365,772) 17,183
OTHER FINANCING SOURCES (USES)
Transfers from Board
of County Commissioners 17382,955 15382,955 1,382,955 -
Transfers to Board
of County Commissioners - - (13,616) (135616)
Transfers to other funds - - (37567) (31567)
Total other financing sources (uses) 1,382,955 1,3825955 1,365,772 (17,183)
Net change in fund balances $ 1,382,955
Fund balances at beginning of year -
Fund balances at end of year
e
The accompanying notes are an integral part of the financial statements.
341
110
342
Indian River County, Florida
Supervisor of Elections
Notes To Financial Statements
Year Ended September 30, 2007
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. In addition, the Supervisor of Elections early implemented GASB Statement 40, Deposit and
Investment Risk Disclosures.
The following is a summary of the significant accounting principles and policies used in the preparation
of the accompanying financial statements.
A. Description of Fund
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 general operating
revenues, which are not restricted or designated as to use by outside sources, are recorded in the General
Fund. The governmental fund measurement focus is based upon determination of financial position and
changes in financial position (sources, uses and balances of financial resources) rather than upon net
income determination.
Special Revenue Fund — The Special Revenue Fund accounts for the grant proceeds from the State and
matching funds from the County. These funds are legally restricted for voter education and poll worker
recruitment and training.
B. Basis of Accounting, Measurement Focus and Presentation
The accounts of the governmental funds are maintained on the modified accrual basis. Under the
modified accrual basis, expenditures are recorded at the time liabilities are incurred. Revenues are
recorded when received in cash or when they are considered both measurable and available. Revenues
collected in excess of expenditures are not considered earned and are reflected as liabilities.
343
Indian River County, Florida
Supervisor of Elections
Notes To Financial Statements
Year Ended September 30, 2007
NOTE I - 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 she 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 Expenses
Deposits in the governmental funds represent prepayments for services that will be used in future
periods. The Supervisor of Election's 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. 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 she 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 5.
G. 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 before November 1. These "excess fees" totaled $13,616 and are
reported as a transfer to the Board of County Commissioners and a liability at year end.
344 i„
Indian River County, Florida
Supervisor of Elections
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 2 - CASH
Deposits
At September 30, 2007, the carrying amount of the Supervisor of Elections' deposits was $43,281, and
the bank balance was $78,028. 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 2, Cash and Investments, for definition of
custodial credit risk.
NOTE 3 — PENSION PLAN
Florida Retirement System
Plan Description: The Supervisor of Elections' employees participate in the Florida Retirement System
(FRS), a cost-sharing multiple -employer public employee retirement system, administered by the
Florida Department of Administration. The FRS is noncontributory for all members; the employer
makes all contributions. Employees elect participation in either the defined benefit plan (Pension Plan)
or the defined contribution plan (Investment Plan). The FRS provides for vesting of benefits after six
years of creditable service. Normal retirement benefits are available to employees who retire at or after
age 62 with six or more years of service. Early retirement is available after six years of service with a
five percent reduction in benefits for each year prior to the 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 and there is no "normal retirement 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.
Retirement benefits are based on age, average compensation, and years -of -service credit where average
compensation is computed as the average of an individual's five highest years of earnings. For further
information concerning the Florida Retirement System and contribution rates, please read the County-
wide note on the Florida Retirement System.
Contributions to the FRS for the fiscal year ended September 30, 2007, were equal to 11.5% of the
annual covered payroll. Contributions to the FRS for the fiscal years ended September 30, 2005, 2006,
2007 were $38,851, $46,318, and $53,969 respectively. These amounts are equal to 100% of the
required contribution for each year.
345
0
r
Indian River County, Florida
Supervisor of Elections
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 4 — 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 2007 at an annual cost of
approximately $86,598.
NOTE 5 — LONG-TERM LIABILITIES
Changes in Long -Term Liabilities
The following is a schedule of changes in long-term liabilities as of September 30, 2007:
Beginning
Balance
10/01/06
Accrued Compensated Absences $19-2m
Additions
Deletions
Ending
Balance
09/30/07
40 423
Of the $40,423 liability for accrued compensated absences, management estimates that $15,000 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 6 — OPERATING LEASES
The Supervisor of Elections has entered into a noncancelable operating lease as lessee for a mail
machine. Lease expenditures totaled $6,080 for the year ended September 30, 2007.
The following is a schedule by years of minimum future rentals to be paid by the Supervisor of Elections
for the noncancelable operating lease as of September 30:
Year
2008
2009
2010
Total Future Minimum Lease Payments
Amount
7,076
7,076
1,769
$ 15,921
346
C3
L,
ra.
0
Harris, Cotherman,
Jones, Price & Associates
Certified Public Accountants - Chartered
5070 North Highway AlA, Suite 250
Vero Beach, FL 32963
Tel 772.234-8484
Fax 772-234-8488
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
The Honorable Kay Clem
Supervisor of Elections
Indian River County, Florida
We have audited the financial statements of Indian River County, Florida including the fund financial statements of
the Supervisor of Elections, as of and for the year ended September 30, 2007, and issued our report thereon dated
March 5, 2008. 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.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the Supervisor of Elections' internal control over financial
reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the Supervisor of Elections'
internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the
Supervisor of Elections' internal control over financial reporting.
A control deficiency exists when the design or operation of a control does not allow management or employees, in
the normal course of performing the assigned function, to prevent or detect misstatements on a timely basis. A
significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the
entity's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally
accepted accounting principles such that there is more than a remote likelihood that a misstatement of the entity's
financial statements that is more than inconsequential will not be prevented or detected by the entity's internal
control.
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in a more
than remote likelihood that a material misstatement of the financial statements will not be prevented or detected by
the entity's internal control.
our consideration of internal control over financial reporting was for the limited purpose described in the first
�» paragraph of this section and would not necessarily identify all deficiencies in internal control that might be
significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over
financial reporting that we consider to be material weaknesses, as defined above.
"Providing Vision and Direction to our Clients"
Member AICPA Member AICPA Division For CPA Firms Member FICPA
Private Companies Practice Section
347
Harris, Cotherman,
Jones, Price & Associates
Certified Public Accountants - Chartered
The Honorable Kay Clem
Supervisor of Elections
Page two
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 determination of
financial statement amounts. However, providing an opinion on compliance with those provisions was not an
objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no
instances of noncompliance that are required to be reported under Government Auditing Standards.
This report is intended solely for the information and use of management, the Supervisor of Elections, Indian River
County, the Auditor General of the State of Florida, and applicable federal and state agencies, and is not intended to
be and should not be used by anyone other than these specified parties.
Vero Beach, Florida
March 5. 11:
348
E3
A
Harris, Cotherman,
Jones, Price & Associates
Certified Public Accountant; - Chartered
5070 North Highway AIA, Suite 250
Vero Beach, FL 32963
Tel 772-234-8484
Fax 772-234-8488
Management Letter
The Honorable Kay Clem
Supervisor of Elections
Indian River County, Florida
We have audited the financial statements of Indian River County, Florida, including the fund financial
statements of the Supervisor of Elections, as of and for the year ended September 30, 2007, and have
issued our report thereon dated March 5, 2008.
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. We have issued our 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 dated March 5, 2008, which
" should be considered in conjunction with this management letter.
Additionally, our audit was conducted in accordance with the provisions of Chapter 10.550, Rules of the
Auditor General, which govern the conduct of local governmental entity audits performed in the State of
Florida and, unless otherwise required to be reported in the report on compliance and internal controls or
schedule of findings and questioned costs, this letter is required to include the following information.
Section 10.554(1)(1)1., Rules of the Auditor General, requires that we determine whether or not corrective
actions have been taken to address significant findings and recommendations made in the preceding
annual financial audit report. There were no recommendations made in the preceding audit report.
Section 10.554(1)(i)2., Rules of the Auditor General, requires our audit to include a review of the
provisions of Section 218.415, Florida Statutes, regarding the investment of public funds. In connection
with our audit, we determined that the Supervisor of Elections, Indian River County, Florida, complied
with Section 218.415, Florida Statutes.
Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address in the management letter
any recommendations to improve financial management, accounting procedures, and internal controls. In
connection with our audit, we did not have any such recommendations.
Section 10.554(1)(1)4., Rules of the Auditor General, requires that we address violations of provisions of
contracts and grant agreements or abuse that have an effect on the financial statements that is less than
material but more than inconsequential. In connection with our audit, we did not have any such findings.
"Providing Vision and Direction to our Clients"
Member AICPA Member AICPA Division For CPA Firms Member FICPA
Private Companies Practice Section
349
Harris, Cotherman,
Jones, Price & Associates
Certified Public Accountants - Chartered
The Honorable Kay Clem
Supervisor of Elections
Page two
Section 10.554(1)(1)5., Rules of the Auditor General, requires, based on professional judgment, the
reporting of the following matters that are inconsequential to the fmancial statements, considering both
quantitative and qualitative factors: (1) violations of laws, rules, regulations, and contractual provisions
or abuse that have occurred, or were likely to have occurred and would have an immaterial effect on the
financial statements; (2) improper expenditures or illegal acts that would have an immaterial effect on the
financial statements; (3) control deficiencies that are not significant deficiencies, including but not limited
to: (a) improper or inadequate accounting procedures (e.g., the omission of required disclosures from the
financial statements); (b) failures to properly record financial transactions; and (c) other inaccuracies,
shortages, defalcations, and instances of fraud discovered by, or that come to the attention of, the auditors.
In connection with our audit, we did not have any such findings.
Section 10.554(1)(1)6., 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.
This management letter is intended solely for the information of Indian River County and management,
the Supervisor of Elections, Indian River County, the Auditor General of the State of Florida, and
applicable federal and state agencies, and is not intended to be and should not be used by anyone other
than these specified parties.
Vero Beach, Florida
March 5, 2008
71
350 at
0
M
M
TAX COLLECTOR
351
Harris, Cotherman,
Jones, Price & Associates
Certifiers Public Accountants - Ch,irtered
5070 North Highway AIA, Suite 250
Vero Beach, FL 32963
Tel 772-234-8484
Fax 772-234.8488
Z3
Report on Special Purpose Financial Statements Prepared in Compliance with a
Regulatory Provision That Results in an Incomplete Presentation But One That is
Otherwise in Conformity with Generally Accepted Accounting Principles
The Honorable Charles W. Sembler
Tax Collector
Indian River County, Florida
We have audited the accompanying fund financial statements of Indian River County, Florida Tax
Collector as of and for the fiscal year ended September 30, 2007, as listed in the table of contents. These
financial statements are the responsibility of the Tax Collector's management. Our responsibility is to
express an opinion on the financial statements based on our audit.
We conducted our audit in accordance with U.S. generally accepted auditing standards 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 fund financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the fund
financial statements. An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial statement presentation. We
believe that our audit provides a reasonable basis for our opinion.
As described in Note 1, the accompanying fund financial statements referred to above present the
financial position of only the Tax Collector at September 30, 2007, and the results of its operations for the
year then ended. These statements are not intended to be a complete presentation of the financial position
of Indian River County.
In our opinion, the fund financial statements referred to above present fairly, in all material respects, the
financial position of the Tax Collector as of September 30, 2007, and the results of its operations for the
year then ended in conformity with U.S. generally accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued a report dated March 5, 2008 on
our consideration of the Tax Collector's internal control over financial reporting and on our tests of
compliance with certain provisions of laws, regulations, contracts, and grant agreements.
This report is intended solely for the information and use of management, the Tax Collector, Indian River
County, the Auditor General of the State of Florida, and applicable federal and state agencies, and is not
intended to be and should not be used by anyone other than these specified parties.
Vero Beach, Florida
March 5, 2008
"Providing Vision and Direction to our Clients"
Member AICPA Member AICPA Division For CPA Firms Member F1CPA
Private Companies Practice Section
352
Indian River County, Florida
Tax Collector
Balance Sheet
General Fund
September 30, 2007
ASSETS
Cash and cash equivalents $ 3,638,268
Investments 149,162
Accounts receivable 25,592
Inventories L236
Total assets $ 3,814,258
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ 4625118
Due to other governments 3,3515755
Other deposits held in escrow 385
Total liabilities 3,8141258
Fund Balances:
Fund balance -
Total fund balances -
Total liabilities and fund balances
$ 3,814,258
The accompanying notes are an integral part of the financial statements.
353
0
REVENUES
Charges for services
Interest
Total revenues
EXPENDITURES
General government
Debt service:
Principal
Interest
Total expenditures
Excess of revenues over
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, 2007
Budgeted Amount
Original Final
$ 6,2325264 $
188,000
6,420,264
3,301,065
3,301,065
(under) expenditures 3,1191199
OTHER FINANCING SOURCES (USES)
Excess fees to Board
of County Commissioners (2,763,610)
Excess fees to Other
Governments (355,589)
Total other financing sources (uses) (35119,199)
Net change in fund balances
Fund
balances
at
beginning of year
Fund
balances
at
end of year
6,232,264
188,000
6,420,264
3,477,701
3,477,701
2,942,563
(2,607,111)
(335,452)
(2,9423563)
Actual
$ 6,4591265 $
354,375
6,813,640
3,461,885
Variance with
Final Budget -
Positive
(Negative)
227,001
166,375
393,376
15,816
3,461,885 15,816
3,351,755
(21970,932)
(380,823)
(3,3515755)
The accompanying notes are an integral part of the financial statements.
354
409.192
(363,821)
(45,371)
(409,192)
771
M
i
0
,M
0
Indian River County, Florida
Tax Collector
Statement of Fiduciary Net Assets
Agency Fund
September 30, 2007
ASSETS
Cash and cash equivalents
Total assets
LIABILITIES
Due to other goverrunents
Total liabilities
$ 4,2983422
$ 4,2985422
$ 4,298,422
$ 4,298,422
The accompanying notes are an integral part of the financial statements.
355
M
356 W
440 Indian River County, Florida
Tax Collector
Notes To Financial Statements
A6 Year Ended September 30, 2007
NOTE I - 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 accountin460 g 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 general operating revenues,
which are not restricted or designated as to use by outside sources, 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
QW 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.
Be Basis of Accounting, Measurement Focus and Presentation
The accounts of the governmental funds are maintained on the modified accrual basis. The fiduciary
A0 fund is reported on an accrual basis. Under the modified accrual basis, expenditures are recorded at the
time liabilities are incurred. Revenues are recorded when received 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.
357
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
Co Budgetary Requirements
State statutes require the Tax Collector to prepare an annual budget that 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 of a fund. The budget is prepared on a basis consistent with generally accepted
accounting principles.
D. Cash and Cash Equivalents
Cash and cash equivalents include deposits and all highly liquid investments with maturities of ninety
days or less when purchased.
E. Prepaid Expenses
This account represents prepayments for services that will be used in future periods. The Tax Collector's
policy is to record the expenditure for the services when they are used rather than when the cash is
disbursed.
F. Capital Assets
Acquisitions of equipment are recorded as expenditures at the time of purchase for governmental fund
financial statements. Tangible personal property used by the Tax Collector in operations is reported in
the financial statements of the County. Refer to the County -wide note on capital assets for capitalization
threshold, depreciation methodology and useful lives.
G. 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 he 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 6.
H. Transfer Out
0
EM
0
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" are reported as
transfers out and a liability and were $3,351,755 at year-end.
358 .o
41b Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2007
0
NOTE 2 - CASH AND INVESTMENTS
A. Deposits
At September 30, 2007, the carrying amount of the Tax Collector's deposits was $2,487,232 and the
bank balance was $2,558,777. 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.
ANN The Tax Collector modified their investment and deposit policy in February of 2005. This policy
requires the Tax Collector's office to follow the above state law (governing custodial credit risk) for
eno deposits. Refer to the County -wide Note 4, Cash and Investments, for definition of custodial credit risk.
Be Investments
AND 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.
The Tax Collector's investment policy limits portfolio composition to no more than 25% in direct
obligations of the U.S. government, money market and certificates of deposit, and money market funds.
No more than 95% shall remain in the Local Government Surplus Funds Trust Fund or Bank NOW
,� accounts. No more than 50% is allowable in bank repo agreements.
The Tax Collector's September 30, 2007 balance with the Local Government Surplus Funds Trust Fund
.. was $5,442,758. This investment is not categorized for custodial risk since it is not evidenced by
securities that exist in physical or book entry form. Refer to Note 8 — Subsequent Events for an update
on the State Board of Administration's Local Government Surplus Trust Fund. Additional information
concerning the Local Government Surplus Funds Trust Fund can also be found in the County -wide note.
The Tax Collector participated in a capital lease program in which funds are deposited into an escrow
IM- account and drawn upon as equipment is purchased. At September 30, 2007, $149,162 of unspent capital
lease proceeds remained in the escrow account.
.. NOTE 3 - INVENTORIES
Inventories are valued at cost, which approximates market, using the "first -in, first -out" method of
Awl 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.
359
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2007
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 Administration. The FRS is noncontributory for all members; all contributions are made
by the employer. Employees elect participation in either the defined benefit plan (Pension Plan) or the
defined contribution plan (Investment Plan). The Pension Plan provides for vesting of benefits after six
years of creditable service. Normal retirement benefits are available to employees who retire at or after
age 62 with six or more years of service. Early retirement is available after six years of service with a
five percent reduction in benefits for each year prior to the 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 and there is no "normal retirement 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.
.W
Retirement benefits are based on age, average compensation, and years -of -service credit where average
compensation is computed as the average of an individual's five highest years of earnings. For further
information concerning the Florida Retirement System and contribution rates, please read the County-
wide note on the Florida Retirement System.
Contributions to the FRS for the fiscal year ended September 30, 2007, were equal to 10.53% of the
annual covered payroll. Contributions to the FRS for the fiscal years ended September 30, 2005, 2006,
2007 were $110,418, $138,589, and $172,168 respectively. These amounts are equal to 100% of the
required contribution for each year.
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 Tax Collector participated in the
County's self-insurance program during fiscal year 2007 at an annual cost of approximately $283,129.
Further details of this self-insurance program are discussed in the risk management note in the County-
wide financial statements.
360
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2007
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, 2007:
Beginning Ending
Balance Balance
10/01/06 Additions Deletions 09/30/07
Accrued Compensated Absences 110 213 41 808 21;294 130J27
Of the $130,727 liability for accrued compensated absences, management estimates that $5,000 will be
due and payable within one year. The long-term liabilities are not reported in the financial statements of
the Tax Collector since they are not payable from available spendable resources. They are reported in
the financial statements of the County.
NOTE 7 — OPERATING LEASES
The Tax Collector has entered into noncancelable operating leases as lessee for office space and office
equipment. Lease expenditures totaled $213,793 for the fiscal year ended September 30, 2007.
The following is a schedule by years of minimum future rentals to be paid by the Tax Collector for
noncancelable operating leases as of September 30:
Year Amount
2008 $ 1883574
2009 981807
2010 73,544
Total future minimum lease payments 360 925
NOTE 8 —SUBSEQUENT EVENTS
As discussed in Note 2, at September 30, 2007, the Tax Collector had $5,442,758 invested in the State
Board of Administration's Local Government Surplus Trust Fund Investment Pool (Pool). On
November 29, 2007, the State Board of Administration (SBA) implemented a temporary freeze on the
assets held in the Pool due to an unprecedented amount of withdrawals from the Fund coupled with the
absence of market liquidity for certain securities with the Pool. The significant amount of withdrawals
followed reports that the Pool held asset-backed commercial paper that was subject to sub -prime
mortgage risk. At November 29, 2007, the Tax Collector had $67,367,018 invested in the Pool
consisting 100% of property tax collections. On December 4, 2007, based on recommendations from an
outside financial advisor, the SBA restructured the Pool into two separate pools. Pool A consisted of all
money market appropriate assets, which was approximately $12 billion or 86% of Pool assets.
361
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 8 —SUBSEQUENT EVENTS - Continued
Pool B consisted of assets that defaulted on a payment, paid more slowly than expected, and/or had any
significant credit and liquidity risk, which was approximately $2 billion or 14% of Pool assets.
Immediately prior to the restructuring on December 4, 2007, the SBA directed all Tax Collectors who
had tax collections invested in the Pool, to provide the SBA with the names, account numbers and dollar
amounts of these tax collections to be distributed to those taxing authorities which had accounts set up
under their name in the Pool. The SBA would then transfer the amounts from the Tax Collector's
account to the accounts of said districts within the SBA. The Tax Collector had seven (7) of their
eighteen (18) taxing authorities with such accounts. One of these authorities refused to allow a transfer
to their account. The total amount transferred to the remaining six accounts was $62,883,610.
On December 4, 2007, the SBA then allowed Pool A participants to withdraw 15% of their balance or
$2 million, whichever was greater, without penalty. Withdrawals in excess of the above limits were
subject to a 2% redemption fee. The Tax Collector withdrew the maximum $2 million and distributed it
to all districts via wire transfers to their bank accounts on a collection percentage basis on December 7,
2007.
On December 24, 2007, the SBA, in recognition of the Tax Collectors' statutory duty to distribute "in -
transit" tax collections and other revenues held by them in the Pool, made a special allowance within the
Pool operating procedures approved by the SBA Trustees on November 29, 2007. The SBA provided a
method for the Tax Collectors to distribute taxes collected to those taxing authorities without an existing
account in the Pool. This procedure involved submitting a formal request to the SBA by the close of
business Thursday December 27, 2007 to establish an account to hold assets on behalf of the taxing
authority. These new "on -behalf of (OBF) accounts are subject to existing Pool procedures and
controls for withdrawals and related matters. As assets in the OBF accounts become available for
withdrawal under existing liquidity provisions, the Tax Collector shall notify the SBA if and when a
withdrawal is to be made. The SBA shall wire the monies to the Tax Collector's bank account for
redistribution to the taxing authority. An alternative procedure can be established for an OBF account if
the taxing authority, on whose behalf the funds are being held, wishes to directly access those funds
through the SBA.
On December 26, 2007, the Tax Collector sent the formal request to the SBA to set up the OBF
accounts for those taxing authorities that did not have SBA accounts and the one authority that refused
to allow a transfer to their existing SBA account. The total of these transfers were $2,483,407. After
these transfers were made, the Tax Collector had $0 invested in the SBA. On December 31, 2007, the
SBA credited the Tax Collector's account with interest in the amount of $41,345.
On January 17, 2008, the SBA transferred into Pool A, collections on Pool B assets for each OBF
account held by the Tax Collector, amounting to $22,118, which equated to approximately 2.49% of
Pool B holdings. Subsequently, on January 18, 2008, the SBA increased the available liquidity rules for
Pool investors from the greater of 15% of Pool A holdings or $2 million to the greater of 37% of Pool A
holdings or $4 million.
362
W.
rn
Indian River County, Florida
Tax Collector
Notes To Financial Statements
Year Ended September 30, 2007
NOTE 8 —SUBSEQUENT EVENTS - Continued
On January 24, 2008, the Tax Collector requested the SBA wire to the Tax Collector's bank account the
available liquidity for all OBF accounts. This withdrawal allowed the Tax Collector to withdraw all of
" Pool A holdings for each OBF account. This left the OBF accounts with only a balance in their Pool B
accounts.
On February 5, 2008, the Tax Collector requested the SBA wire to the Tax Collector's bank account
$5,599, which represented the interest posted to the OBF accounts for January 2008. The Tax Collector
immediately distributed this interest to the specific taxing authorities on whose behalf the OBF accounts
relate. Subsequently, on February 8, 2008, the SBA made available, $166,246 of Fund B holdings for
distribution to the OBF account holders. The Tax Collector again immediately requested the SBA wire
to the Collector's bank account this amount and in turn distributed said amount to those taxing
authorities to which the OBF accounts relate.
In light of the above series of events involving the SBA, the Tax Collector had, effective December
. 2007, accelerated the distribution of property taxes collected to a weekly distribution. Effective March
2008, the distributions went to bi-weekly. This is significantly more than required by Florida Statutes,
but enables the taxing authorities to better manage their financial needs with available cash as a result of
the SBA's actions.
As of March 5, 2008, the OBF accounts held by the Tax Collector had $0 in Pool A and $442,413 in
Pool B.
363
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Harris, Cotherman,
Jones, Price & Associates
Certitinl Public Accountants -Chartered
5070 North Highway AIA, Suite 250
Vero Beach, FL 32963
Tel 772-234.8484
Fax 772-234-8488
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
The Honorable Charles W. Sembler
Tax Collector
Indian River County, Florida
We have audited the financial statements of Indian River County, Florida, including the fund financial statements of
the Tax Collector, as of and for the year ended September 30, 2007, and issued our report thereon dated March 8,
2008. 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.
iw
Internal Control over Financial Reporting
In planning and performing our audit, we considered the Tax Collector's internal control over financial reporting as
a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements,
but not for the purpose of expressing an opinion on the effectiveness of the Tax Collector's internal control over
financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Tax Collector's internal
control over financial reporting.
A control deficiency exists when the design or operation of a control does not allow management or employees, in
the normal course of performing the assigned function, to prevent or detect misstatements on a timely basis. A
significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the
entity's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally
accepted accounting principles such that there is more than a remote likelihood that a misstatement of the entity's
financial statements that is more than inconsequential will not be prevented or detected by the entity's internal
control.
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in a more
than remote likelihood that a material misstatement of the financial statements will not be prevented or detected by
the entity's internal control.
Our consideration of internal control over financial reporting was for the limited purpose described in the first
paragraph of this section and would not necessarily identify all deficiencies in internal control that might be
significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over fi�,
financial reporting that we consider to be material weaknesses, as defined above.
"Providing Vision and Direction to our Clients"
Member AICPA Member AICPA Division For CPA Firms Member FICPA
re.
Private Companies Practice Section
364
-M
En
® Harris, Cotherman,
Jones, Price & Associates
Certified Public Accountants - Chartered
The Honorable Charles W. Sembler
Tax Collector
Page two
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 determination of financial
statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our
audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of
noncompliance that are required to be reported under Government Auditing Standards.
This report is intended solely for the information and use of management, the Tax Collector, Indian River County,
the Auditor General of the State of Florida, and applicable federal and state agencies, and is not intended to be and
should not be used by anyone other than these specified parties.
v./.� � � 0.iv1 � 1•JUL!_ f ��f�,n nom, °�- �
Vero Beach, Florida
March 5, 2008
365
Harris, Cotherman,
Jones, Price & Associates
CcrtifieLl Public AccuunTant� - Cl"TtereJ
5070 North Highway AIA, Suite 250
Vero Beach, FL 32963
Tel 772-234-8484
Fax 772-234-8488
Management Letter
The Honorable Charles W. Sembler
Tax Collector
Indian River County, Florida
financial
We have audited the financial state f d for thnts of e avended Septemer County5 b
er 30, 2007, and hincluding the ave ass ed our
statements of the Tax Collector, as o
report thereon dated March 5, 2008.
ted States of
We conducted our audit in accordance h auditing Stan
financial and sdcontained rds an Government accepted
tment Audlitinig Standards,
America and the standards applicable tontrolort on
issued by the Comptroller General of the United ce ands. We have issued Other Matters Based onepan AuditrtIntern
ofaF nancial
Over Financial Reporting and on C p
Statements Performed in Accordance with Government Auditing Standards dated March 5, 2008, which
should be considered in conjunction with this management letter.
ules of
Additionally, our audit was conductedin nduct of localewith the provisions of Chapter 10.550, governmental entity audits performed InRthe Stat the
Auditor General, which govern the co
Florida and, unless otherwise requireded costs bereported
ettera s equin the i ed to report include the following informatioon compliance and internal n.
schedule
or
schedule of findings and question
not corrective
Section 10.554(1)(i)l., Rules of the Auditor ficant fGenerandingsirand recommendations madees that we determine r inthe preceding
actions have been taken to address g
annual financial audit report. There were no recommendations made in the preceding audit report.
Section 10.5540)(i)2., Rules of the Auditor General, requires our audit to include a review of the
Floriprovisions of Section 218.415n that the TaxsCollectorgIndianthe vRi ernCout of public
blFlorida, complied eCwith
with our audit, we determined
Section 218.415, Florid Statutes.
Section 10.554(I)(i)3., Rules of the Auditor General, requires that we address in the management letter
any recommendations to improve financial management, accounting procedures, and internal controls. In
connection with our audit, we did not have any such recommendations.
Section 10.554(1)(i)4., Rules of the Auditor General, requires that we address violations of provisions of
contracts and grant agreements or abuse that have an effect on the financial statements that is less than
material but more than inconsequential. In connection with our audit, we did not have any such findings.
"Providing Vision and Direction to our Clients"
Member AICPA Member AICPA Division For CPA Firms
Private Companies Practice Section
366
Member FICPA
0
Harris, Cotherman,
Jones, Price & Associates
Certified Public Accountants - Chartered
The Honorable Charles W. Sembler
Tax Collector
Page two
Section 10.554(1)(1)5., Rules of the Auditor General, requires, based on our professional judgment, the
reporting of the following matters that are inconsequential to the financial statements, considering both
quantitative and qualitative factors: (1) violations of laws, rules, regulations, and contractual provisions
that have occurred, or were likely to have occurred and would have an immaterial effect on the financial
statements; (2) improper expenditures or illegal acts that would have an immaterial effect on the financial
statements; (3) control deficiencies that are not significant deficiencies, including but not limited to (a)
improper or inadequate accounting procedures (e.g., the omission of required disclosures from the
financial statements); (b) failures to properly record financial transactions; and (c) other inaccuracies,
shortages, defalcations, and instances of fraud discovered by, or that come to the attention of, the auditors.
In connection with our audit, we did not have any such findings.
Section 10.554(1)(1)6., 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.
This management letter is intended solely for the information of Indian River County and management,
the Tax Collector, Indian River County, the Auditor General of the State of Florida, and applicable
federal and state agencies, and is not intended to be and should not be used by anyone other than these
specified parties.
•
Vero Beach, Florida
March 5, 2008
367
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